Grant Cardone - How To Create Wealth Investing In Real Estate: How to Build Wealth with Multi-Family Real Estate

How To Create Wealth Investing In Real Estate
By Grant Cardone

How To Create Wealth Investing In Real Estate

Copyright 2018 Grant Cardone - Cardone Training Technologies, Inc.

All Rights Reserved.

ISBN 978-1-945661-52-5

All rights reserved. No part of this book may be reproduced or transmitted in any form or by any means, electronic, or mechanical, including photocopying or recording, or by any information storage and retrieval system, without permission in writing by the author.

All translations of this work must be approved in writing by the author. Please contact Cardone Training Technologies, Inc. for permission to translate and distributions agreements.

Printed in the United States of America

To order more copies for you or your team, go to GrantCardone.com or contact Cardone Training Technologies, Inc. at 310-777-0255.

Second Edition - August 2018

Contents

Preface

Introduction

Why I Wrote This Book

Chapter 1 How I Got Started - My First Mistake

Chapter 2 The Different Kinds of Real Estate

Chapter 3 Why Apartments Are My

Favorite Investment Vehicle

Chapter 4 The Three Ways to Invest
in Apartments

Chapter 5 Mistakes to Avoid When

Investing in Apartments

Chapter 6 Your First Deal

Chapter 7 Cash On Cash (COC)

Chapter 8 Where to Find Deals

Chapter 9 Why I Created Cardone Capital

In Closing

Real Estate Calculator Terms & Definitions

About Grant Cardone

Preface

Grant Cardone has been investing in real estate for over thirty years across the United States. As this book goes to press, his company, Cardone Capital, currently has 5,000 units under ownership and over one billion dollars in real estate holdings.

After earning his accounting degree from McNeese State College, Mr. Cardone found himself in a career that he did not see leading him to true legacy-building wealth. What would later become one of his signature responses to adverse situations, Cardone doubled-down and not only mastered sales but created an entirely new sales approach, strategy, and technique.

At thirty-one years old, Grant Cardone was credited with transforming the sales process of an entire industry. Since then, he has worked with some of the largest Fortune 500 companies in the world on how to increase revenue and improve their customer experience.

He currently operates seven privately-held companies with affiliates and offices around the globe. His business interests range from real estate, sales and marketing training, coaching and consulting, to social media. His companies have earned numerous business awards and accolades. And, Forbes Magazine named him as The Number-One Business Influencer to Watch.

Cardones career in real estate had a less than auspicious start with an investment in a single-family home. Quickly learning that this approach to real estate wouldnt work, he transitioned to multifamily units. As he progressed in real estate investing, his deals became larger and larger. Today, Mr. Cardone has become well-known in the real estate world.

To allow friends and family to invest alongside him, he founded Cardone Capital and recently opened three successful fund offerings, all of which were over-subscribed in record time. He currently has several more funds being offered or in development.

In addition to being a hands-on CEO, Cardone is also a New York Times bestselling author of seven books and his sales training courses have educated over fifty million students. He is a contributing writer to CNBC, Entrepreneur.com, Forbes and Business Insider, as well as a regular guest on Fox News, Fox Business, CNBC, and MSNBC.

With all his success, Mr. Cardone says his proudest accomplishments are his marriage of fifteen years to Elena Cardone, their two children, Sabrina and Scarlett, and the time he invests in giving back to the community through his philanthropic endeavors, which have raised over two hundred million dollars for charities.

Introduction

As long as I can remember, I have been fascinated with real estate. I have been drawn to it for my entire life; and for the last 30 years I have been buying apartments. It didnt matter whether it was a piece of land, a house, or a store front, I have always had an affinity for real estate and I also had some basic understanding that real estate was valuable.

I remember my Dad would drive my Mom and us five kids around on the weekends looking at real estate. My Dad owned three homes during his lifetime, and each one represented the fact that he was going somewhere, succeeding with each move. Just a few years before my Dad died he bought his dream house and he told Mom, Weve made it. It was almost two acres, on the waterfront, had lots of big trees, and was in a neighborhood filled with doctors and lawyers and people who belonged to the local Country Club.

When he died, my Mom had to immediately sell the dream house because it was too much for her to manage. That was a huge lesson that I would not fully understand until I started investing in real estate myself, many years later, and one you must understand if you are going to create financial freedom using real estate. But, more on that later.

As an aspiring young teenage boy, when I started reading books about wealthy people, I noticed how many of them owned real estate. I remember running across a study done about the real estate holdings amongst the super-rich in America. It suggested households who owned large amounts of real estate had lower educational levels, were not significantly associated with inheritance, were not socially connected, and did not have some special occupational status. That describes me perfectly.

I didnt have a fancy education, my Dad didnt give me a million to start, like The Donald , I definitely wasnt connected, and I had never held a high-level corporate job title or had some great tech idea I could bring to Silicon Valley.

Throughout history, real estate has proven a viable investment vehicle and has been validated by some of the wealthiest families, even institutions, on the planet. Those that control the real estate end up with wealth. And by the way this is not a new thing. The great civilizations of the Romans, Egyptians, Greek, Chinese, Persians, and Mayans, all had massive real estate holdings as part of their power structure. In the 1920s, the British were reported to own 25% of the worlds land mass.

Here is a little hidden fact for you, known only once you get big in the game of real estate investing: The largest insurance companies in the world love commercial real estate and use income producing real estate to ensure they are able to pay off the death and retirement benefits of its premium holders. At Cardone Capital, we will access insurance companies to partner with us in transactions, reducing the cost of debt and improving our returns. The insurance companies use the dependability of the income from the real estate to improve their returns and pay off beneficiaries when necessary.