[00:01 – 05:48] Opening Segment

• Thank you for listening to our 100th episode!
  • More to come on our second season
• Let’s get to know Grant Cardone

[05:49 – 15:49] Go Big On Your First Deal

• What’s Grant doing right now? 
• The most important number in real estate for Grant
  • Not the cap rate, ROI, IRR, or interest rate 
• Don’t miss Grant’s advice for passive and active investors!
  • Why your first deal should be big

[15:50 – 22:59] From Zero to Million Dollars in 90 Days

• Grant wants you to ask this question ‘
  • “What is the deal?”
• The partners you should look for in a deal
• How Grant brought impact to an entire industry 
• Building a million-dollar business from scratch

[23:00 – 24:48] Closing Segment

• Connect with Grant! Links below
• Final words from me

Grant Cardone 0:01
invest in multifamily invest in it this year. Literally find somebody you trust, find somebody who’s got money in a deal and say hey here and let that be your first deal, put it in a deal, and then you’re an investor. And then the second deal if you want to go buy your second deal, I don’t know why you would do that. It’s a lot of work. Then start your career by investing first.

Abel Pacheco 0:27
Hello, hello. Welcome to the five talents podcast. I’m your host Abel Pacheco, I interview the top commercial real estate investors and industry experts so you can learn from their experiences. So if you’re an investor, a high W-2 earner or real estate or tech sales professional that wants to invest in real estate without having to manage properties or leave your day job, then this podcast is for you. Or if you’re already investing in real estate, but you’re doing it part time and you want to become a full time, multifamily or full time commercial real estate investor. This podcast is for you too. You’re gonna learn a ton. You will learn from real life multifamily investors and other professionals in the industry. They’re going to share their blueprints for success. And I’m super excited that you’re here. So I hope you enjoy the show.

Hello, hello, this is Abel Pacheco, your host for the five talents podcast. We are super excited today for many reasons. One of them we are celebrating today. Our 100th Episode is our season finale. And we’re just we’re really humbled and appreciative that you would take the time to join us for 100 episodes and counting. So thank you very much to our audience, all of our guests, everyone on our podcast team in 5TCRE our company and externally as well, we just really sincerely appreciate it. We’re even more excited to have some really great shows lined up for season two, already. We’ve got some amazing guests, we’ve got a number of shows in the hopper that we’ve already recorded with a diverse group of commercial real estate investors and others that we can really listen and learn from. So we’re excited for that. And additionally, we are very excited that you could join today we have an amazing guest, Mr. Grant Cardone. So we’ll hear from him just in a minute and wanted to tell you, thank you again for 100 episodes for the five talents podcast. So before we jump into our season 100 episode finale, we want to describe a little bit what’s going to happen in season two. So we have a diverse group of folks are really great investors that we’re all obviously going to be able to learn and listen to and educate ourselves from. But I’m also launching a series of solo episodes, I’ve had a number of passive investors just asked me a lot more about multifamily syndication, passive investing, just really the basics on how to get started. So we’re going to be coming out with a few series for passive investing in multifamily syndication one on one, and we believe it’s gonna provide as much knowledge as possible for passive investors that are seeking to learn more about passive investing. So if you’re interested in syndication, investing as a passive investor in 2021, please go to our website, 5TCRE.com/invest, and we’re going to be able to just sit down and discuss your 2021 goals now. So we already have an ideal understanding of what you want to accomplish. And as we’re making offers on properties, we’ll make sure to reach out to you and there’s the right investment opportunity. So we’re excited to do that. Please register. Now let’s get to what you all came for, which is our season 100 episode, we have the absolute pleasure of hosting Mr. Grant Cardone, Grant Cardone is a real estate investor. He’s a proven sales trainer, a professional entrepreneur. He’s the best selling author of a few books, and speaker of selling out in entire arenas. So we’re excited to have the creator of the 10x movement. He’s based out of Florida. He’s got a real estate portfolio in multifamily, and more than $2 billion at just over 60 years young. Mr. Grant is the man and he’s just an amazing guest. So on this episode, he’s gonna discuss passive investing the power of multifamily syndications, he talks a little bit about his experience as the star of Discovery Channel’s the undercover billionaire, where he had a 90 day timeframe to create a million dollar business, and he had a million dollar bet that he would be able to do it. So if he didn’t create the million dollar business in 90 days, he would have to pay a million bucks and he came out like a champion. So, if you’re not watching that you need to, we are super excited to have Mr. Grant Cardone, Grant. Welcome to the show my friend.

Grant Cardone 5:08
It’s a cool day to do this because today we just broke a half a billion dollars in raised funds from Instagram and Facebook direct to the retail investor. No family offices. We haven’t used any brokers, like direct to the consumer direct to the retail investor. If you send in $400 grand $400,000 goes to work immediately.

Abel Pacheco 5:31
Yeah, yeah.

Grant Cardone 5:31
500 million. That’s a big number.

Abel Pacheco 5:33
I’ve heard the way you operate and the way you talk about the little guy. And that little guy is different than a Family Fund. It’s different than an institutional investor. It’s different than somebody who can stroke a $20 million check and do five of them that year. So you’re seeing half a billion dollars raised from Instagram and Facebook.

Grant Cardone 5:53
Yeah, typically, as you know, 2% of that would be paid out in fees, which is $10 million. That’s $10 million more money that goes to work to buy real estate, which will buy about $40 million worth of real estate with leverage.

Abel Pacheco 6:06
Yep.

Grant Cardone 6:07
So that’s just a huge victory for the retail investor that would never get access to the kinds of deals that we’re doing. I mean, we’re doing $160 million real estate deals. We’re closing a deal right now. It’s 100 million. It was 108 million before COVID. Is that right? Yep. 108,500,00 We have it under contract for 978,000,000 So we think we’re 11 million in the green. When we buy it. It’s Fort Lauderdale, a location. It’s 65 feet from a Publix, one of the biggest Publix in Fort Lauderdale. 300 yards from a Whole Foods location is just stellar right across the street from an LA Fitness. And we’re buying it below replacement costs the builder set it up to sell COVID Hit. The buyer that was buying it for 108 or 109, bailed because of COVID. And we dropped in the slot. So we’ll raise about $35 million, for that deal, I’ll put $60 million for the debt on it seven years at 299 or lower, and for seven years interest only loan. So you know, we’ll probably earn five or 6%. Now in year one in a plus location, a product and the rents are just going to grow over the next three years, five years, seven years and 10 years. You know, the game.

Abel Pacheco 7:31
I talked to Andres your capital guy about the deal. And you know, he showed me kind of the the investment summary. I was excited for you and I go man, this is the different way to buy things. We syndicate deals, and we raise capital, but that’s our equity downpayment. Were some of the little guys. But the way you approach it by buying the deals with your own capital first and then offering them out is an amazing position of being my friend. You’ve been in the game for quite a number of years. Like when was your first multifamily deal? How many years ago?

Grant Cardone 8:02
My first multifamily deal was 31? Maybe. Okay, my first real estate deal was 28. I bought a single family home. I sold that house immediately knew that what I’d done wrong was one door. And then three years later, I would buy 48 units. 30 days later, I bought 38 units 30 days at about 92 Did I was off to the races like I always say this the most important number in real estate is not the cap rate. It’s not the ROI. It’s not the IRR is not the interest rate is the number of doors you can purchase.

Abel Pacheco 8:34
Yeah, yeah. And leverage does an amazing thing when you’re forcing rents up or reducing your expenses just by a little bit is a big difference between 100 and 500. And it’s an amazing thing that net operating income the way it operates, brother.

Grant Cardone 8:49
It’s crazy. It’s awesome. It’s a beautiful way to create wealth. Yeah,

Abel Pacheco 8:52
Well Grant, I’m super privileged, I’m actually going to use our show. So this conversation that we’re talking about right now is our season finale for our first full season we’ve done 100 shows, then a little bit more than 100. But we’re going to use this as our official 100 released show. And so we just wanted to say thank you, is there any advice you can give to both passive investors and also active investors because I think we’ve we’ve got a good network of both people that are trying to educate themselves on you know syndications, how to invest how to create wealth and financial freedom for themselves, their families, and then we have people like me, you know, we’ve done two or three deals four or five months number seven now but they’re trying to learn more trying to get it. So what advice can you give those two seven?

Grant Cardone 9:39
My advice? My advice would be the first day if I were you, if I was talking to somebody that hadn’t done a deal yet. I would tell you the first deal you should do, you should invest with somebody who’s done deals. If I were you, I would take 200 grand or 400 grand or 500 grand or a million find the right person and push a slug in with those people. So, you know, and I’m just speaking from personal experience, okay, like my first deal. I didn’t manage my first deal, I funded my first deal. And I brought a guy on to manage it and gave him 25% of the upside. So I had two businesses. I love real estate, I understand it is simple. For me, it’s like, to me, it’s a no brainer. Like if I pick the right location, the right size property at the right price point, and I have the right time horizon. And I don’t over leverage, which those things are pretty easy to do. Okay, like, that’s not a complicated thing to do. It’s not like I’m scaling up coming up with some new business idea. This is an existing business that produce income, okay, so because I had the money, I had the credit, and I knew what a good piece of property look like, those were my plus points. But I didn’t have the management side. So I brought a guy named Dale in and I said, Dale, you manage it, you manage the people, the tenants, and you manage the manager? Yeah, and I’m gonna give you 25% of the upside in the deal. I just kind of flipped the model. He didn’t have equity. And I didn’t have time to manage. So what I’m telling to an investor out there, look, if you have money, but you don’t have what I have to know how you should invest your money. Your first deal should be a big deal. Not a little deal. Okay, the reason people do little deals is because they only have so much money. You don’t have to do that. Okay, like what you could do? You could put like this deal that I’m buying right now bass that Andre showed you? Yes. 97.8 million, I think is the number. I’m negotiating with the bank today, guys, I need you to breach 3% to do the loan. So they get to 299. And I’m like, I think I’m gonna wait. And they’re like, you’re under contract. I said, Yeah, my write a check for the whole thing. I’m in a position to tell the bank, I think they were 333 yesterday. Okay, and I’m like, Guys, I’m just gonna stroke a check for it. And I’ll wait three months in finance. And in three months, when the 10 year Treasury drops, and then you’ll give me the rate I want. Or I’ll go to Fannie Mae and get it into the bank called me this morning and said, Look, we’ll breach 3%, we’ll do 299 If you do it right now. And because they knew I had the ability to write a check. Now what does that do for the investor, right? It gets him in a deal. But it also saves the investor a quarter of a point on $68 million. It’s a huge number of cash flow, like it gets really big at those big deals, and a first time investor would never get the asset, they would never get the debt. And so I would tell the first advice is invest in multifamily invest in it this year, literally find somebody you trust, find somebody who’s got money in a deal, and say, hey here, and let that be your first deal. Put it in a deal. And then you’re an investor. And then the second deal if you want to go buy your second deal, I don’t know why you would do that. It’s a lot of work. Then start your career by investing first.

Abel Pacheco 13:03
Yeah. When we were talking and this plug for clubhouse when we were talking there, that’s how I met Grant for those that weren’t aware. So I had laid out this plan. And I told you, you know, I went from eight to 800 doors, it took me 10 years to buy eight single families. And then under two years, we went to 800 doors. Wow, invested passively. First, we did three deals passive. And then I started my run as an active partner, we did, you know, six deals and what I did or what I had mentioned, even on my active deals, I leveraged experienced people that have done the deal many multiple times the best people in my network, and that’s where I, you know, learned on the ropes and so, you know, just kind of learn to, you know, all the way through and now I’m dealing number seven or like okay, things are getting, they’re starting to click after this many runs, but it was the passive investing that led everything off my ability to raise capital, I can now talk about it I’ve you know, had that little bit experience and I 100% agree with you. I still tell everyone the exact same thing. Start passive invest with somebody else who cares what percentage you’re making, in my opinion on your first or second let’s just you know, just get in the game. And then if you really want to get after you’ll get after it.

Hello, hello. You’re listening to the five talents podcast. I’m your host, Abel Pacheco if you’re enjoying this podcast, then I know you’re serious about achieving financial freedom. Are you ready to create your own path through multifamily investing for yourself and your family? Then I know you’re gonna appreciate on Investors Guide to Multifamily Investing. It’s titled Tackling Commercial Real Estate the Easy Way we use this guide to invest ourselves and $93 million worth of real estate so we’re going to show you the basic mechanics of multifamily syndications and how to evaluate your next passive investment opportunity. So the best part if you subscribe to our podcast now leave us a review and Ready, I’m going to give you a free copy of our ebook. So please take a moment to do that now. Once you’ve done that, go to 5tcre.com/ebook f, make sure to let us know you left a review and we’re going to send you a free copy. So thank you so much for subscribing to the five talents podcast. We really appreciate it.

Grant Cardone 15:27
Too many people make too much of the percentages, the waterfalls, what’s my share? What do I get? What’s my preferred? And they forget to ask what is the deal? The deal is not the terms the deal is the piece of real estate. Like if you get 100% of a shitty deal, you’re not gonna want any? Give me this much of a great deal. And that’s why I’ve always been willing to share guys got to remember like when I do a $98 million deal and I’m talking to your viewer right now. The first partner I have is the bank. The second partner I have is the seller. If the seller doesn’t sell to me, I don’t have a deal. Like they don’t like me, they don’t want to sell to me. There’s plenty of people, every deal that I buy JPMorgan, Blackstone, I mean, you know, all the big groups Equity Residential, these are freaking 100 billion dollar companies. I have to go where they won’t play. Yeah, you know, COVID created a moment of opportunity for a guy like me to get assets that I could never get before. People are like, Why are you buying so many A assets because the COVID son cuz I can I mean, I’m getting A plus deals for almost the same cap rate people are paying for B’s and C’s. So and I’m getting deals where I know JP Morgan, by the way, this is the one thing a lot of real estate investors miss who’s your exit? Who’s your buyer seven years from now, I know who my buyer is JP, Blackstone, Equity Residential, Alliance. All the groups I just said Greystar. Greystone. The big names these are these are multi 100 billion dollar companies that buy in every cycle, they always have money. Real estate is their game. Many of these big REITs have to buy products, those are going to be the people I’m just playing a little different game than some people on selling the whales. And I’m just krill I’m willing to be the krill. So the humpbacks can have their breakfast. Yeah, yeah,

Abel Pacheco 17:29
I love it. That’s a good mindset, we decided to get into our seventh deal and raise fund but we’re a fund of funds into an opportunity led and run by Real Page, Real Manage, Greystar, Pinnacle some of the guys you’re talking about. But it’s a faith based fund. So we’re putting in a nonprofit, and it’s really just a mindset of what’s what you said the exit strategy, because they’re set, they’re gonna sell it to a REIT. And it’s a different game normally, then we’re playing one asset at a time, but you know, it’s amazing, man, you’ve done some amazing things, and amazing, you know, superstar marketing power. And, man, I have to give a shout out to one of my guys, because I’ve been in tech for a long time tech sales years. And one of my guys, Mike, he would always show your videos, the car sales training videos, I forget what year this is, you know, 2009 10 but we grew up watching those videos, because you were that sales guy and to see you now evolve, you know, into the, you know, pretty sophisticated multifamily wealth creation machine where your partnership instead of, you know, competing is amazing, man, I’m super excited for you. And you know, wish you a lot of success.

Grant Cardone 18:40
Yeah, thank you, my friend. And it just goes to show you you know, I was in a vertical an automotive industry and I was highly successful in that industry. I always say your assets always become liabilities. And I become a superstar in the automotive industry really, really take a lot of credit for for helping change, mature that industry to like, Hey, give people information, be transparent, be authentic, don’t quit playing hide the weenie with the customer. And I’m really I’m really the guy that changed that entire industry to say, Hey, quit these four and five hour deals. And that’s what I got known for and started working with some of the largest manufacturer automotive manufacturers in the world. Probably why Tesla does their model today. Just buy it online and go. And the Carvana many of the things you see happening right now a True Car, Carvana these big companies that really started changing the way people can access information and buy a car was started by me. But the point of that is when you get stuck in a vertical and you become the Tarzan of the jungle. That’s good, but you know, everybody wants to knock you down too. So the only way to keep growing is to start moving into other verticals. And I have been fortunate enough and The word is I’m grateful of my ability and willingness to learn new things like we do the largest conferences in the world now called 10x growth conference. 1% of the room are auto dealers, 99% are entrepreneurs, business owners, CEOs, doctors, lawyers, chiropractors, engineers, startups, I mean, some super smart people. We had 51 countries in our last 10x growth conference 51 different countries. Just that’s been a huge mark. I’ve written eight books that have nothing to do with automotive. We have a university called CARDONE University over 50 million users. Again, nothing to do with automotive. And then the real estate division, which has 9000 units $2.3 billion with assets. And my big play, my big exit will be to either turn, either I’m going to go with a spec, or I’m going to become a REIT. Or I’m going to sell to a REIT or im gonna go public on Wall Street. So yeah, yeah, keep growing, folks. keep growing, keep dreaming. Keep thinking big 10x. Man,

Abel Pacheco 21:04
We’re rooting for you, brother. A lot. A lot of us are and well, before you go undercover billionaire season two. I know we have a hard stop here in a few minutes. So just just tell us about this. What an amazing experience. You literally dropped off, give you 100 bucks and then go you’re trying to create a million dollar business within I think 90 days. And the bad is if you can’t do it, you got to pay a million bucks. Man, just give us a nugget. Tell us about you know some of those things that you did.

Grant Cardone 21:32
Craziest, hardest thing I’ve ever done in my life, you get to follow me on Discovery. Plus on the app, they have an app where the entire show is exclusive on the app now. They discovery has a big initiative to push from TV to a mobile streaming app like so many companies do today. This show has been such a hit for them. They’re using it literally to push their entire audience over. The viewership on the show has been ridiculous, just like out the roof. And people want to follow an entrepreneur. I really truly believe that people don’t, as much as they say they want advice and lectures and opinions. What they really want to do is watch someone else do it. Like, like, like if I could be a basketball player, dude, I don’t want to I don’t want LeBron to tell me what to do show me. And in this show, I basically show you what to do no money, no contacts, can’t use my name, can use my credit facilities. And I know no one. And I have 90 days to build a million dollar business. By the way, I’m trying to build a $10 million business, not a million. When you watch a show, you’ll see me mix it up. And I have a real estate deal. I’ll give you a behind the scenes a real estate deal. I found a real estate deal for $10 million in Pueblo, Colorado. And I lost it there was $3 million to be made on that deal. I had an under contract for $8,750,000. I think it’s truly worth 12 million right now today. And I lost the deal because of the camera crew told the seller the wrong thing. So I go 90 days you get to follow me it’s during COVID 40 million people are laid off and I got a million dollar bet that I could build a million dollar business in 90 days or less during COVID It’s an insane show. You got to watch it.

Abel Pacheco 23:23
We will man we will and appreciate everything that you’ve done and thank you for joining us. I you know plug it go check it out. Watch it you know grant follow, get his 10x book, get you know go to the go to the university do all the things. super appreciate your time grant. Thank you very much. Our season finale brother, our season finale. Thank you.

Grant Cardone 23:45
Hey, man, 100 baby 100 Now 10x That 1000? Yes, sir.

Abel Pacheco 23:48
We’ll do. Thank you. Thank you for listening to this episode of the five talents podcast with your host myself, Abel Pacheco. Each week we’re gonna bring you interviews from industry experts and commercial real estate investors who follow their dreams and achieve massive success. Before you leave. Let me ask you a few questions. Did you enjoy this episode? Did you learn something valuable? Was your mind stretched to what’s possible and what you can achieve? Do you want other experts just like the one you heard today? If you answered yes to any or all of those questions, then please take a moment of subscribe to the five talents podcast give us a five star rating. And most importantly, leave us a written review. Tell us what you liked. Tell us your favorite guests. Give us any feedback. I’m excited to learn and improve so you can get a more valuable show. So thank you again for subscribing to the five talents, podcasts.