Ep #183 – Grant Cardone Controls Over 4,000 Apartments
Worth Over a Half a Billion Dollars.

 

Here’s some of what you will learn

  • The importance of the sales aspect to success in the business.
  • The importance of perspective and seeing problems as opportunities.
  • The benefit of power in numbers and accumulation in order to maximize profits.
  • The importance of investing in assets to produce income over time instead of saving.
  • The importance of multiplication of money through smart investing.
  • The disadvantages of conservation and contraction of funds.
  • Some of the key people to solicit advice from and who not to.
  • The benefits of having multiple deals in the pipeline to be able to deal with downturns.
  • What to look out when picking partners and picking deals.
  • The importance of having the right mindset.
  • The importance of actually deciding to become a millionaire.
  • Some of the benefits and disadvantages of VA loans.
  • The benefits of buying larger properties for maximum lifetime cashflow.
  • What to look for when searching for a mentor, including negative mentors.
  • Tips to avoid wasting time and maximizing profitability through larger deals.
  • How to get over fear of getting into the business and into bigger deals.
  • The importance of commitment to the business to remain successful.
  • The importance of being a real estate buyer instead of a seller.
  • The benefits of life insurance company loans.
  • Key states to purchase units in and why.
  • The importance of writing down your goals continuously to remain focused.
  • The importance of being yourself in the business.
  • The importance of loving what you do and taking massive action.

Our Guest

You can learn more about Grant Cardone at:

https://grantcardone.com/

Watch on Facebook!

Full Transcript Below:

Ep #183 – Grant Cardone Controls over 4,000 Apartments Worth over Half a Billion Dollars 

Rod Khleif: Welcome to the Lifetime CashFlow Through Real Estate Investing Podcast. I’m Rod Khleif, and I am thrilled you’re here. Guys, you are gonna love who we have back on the show today. It’s Grant Cardone, the mega sales trainer, multi-family mogul. If you don’t know who Grant is, then I don’t know what rock you’re hiding under.

 

The guy’s a force of nature; hugely successful multi-family real estate investor, marketing genius. In fact, Forbes named him number one marketing influencer. Controls over 4,000 apartments, worth over a half a billion dollars with a B. He’s got 2,000 more units under an LOI or underwriting.

 

He’s got the best sales training program in the world, frankly, in the world. Those of you listening, who wanna get into the multi-family real estate, that don’t think you need sales, you’re sadly mistaken. You’re selling yourself to sellers, brokers, lenders, potential partners, investors.

 

Sales is influenced. You’re influencing people everyday. Including your family, your spouse, your children. Selling is part of this business and is part of life.

 

Now, the thing I love about Grant Cardone is he’s authentic. What you see is what you get, no BS, no sugar coating. But the thing I love the most is, that’s dear to my heart, because giving back is dear to my heart is he’s raised over a $100 million for charity.

 

He gave food to 7,000 people without electricity in one of the hurricanes. He’s used his jet to bring supplies to the victims of Hurricane Harvey. Which I like that for two reasons, one, he’s a tough guy but he’s got a huge heart, and he’s got a freaking jet!

 

Welcome to the show, brother.

 

Grant Cardone: Thank you so much, great to be here. I enjoyed the first time that we were together.

 

Rod Khleif: Yeah. Thank you. Now, I don’t wanna cover old ground here guys. So if you’re listening, and you love this episode, I know you will, and you didn’t hear the last one, go check it out. It’s episode 38. He gets into why he started in real estate and some of his methodologies, and how to develop intuition, and how to do a worst-case scenario, and some conversation about due diligence.

 

I’m gonna ask Grant different questions today. The first question I got, did I hear, you’re giving away a million dollars on social media?

 

Grant Cardone: Yes, we are. We’ve already given almost 200 grand away.

 

Rod Khleif: Holy cow! Tell us about that. What’s that all about?

 

Grant Cardone: Well, what happened was, every time I get a problem… I look at problems as opportunities. I saw that quote years ago. It’s not my quote, but I’m like, “Hey, how do you do that.” And really, I’ve spent a lifetime figuring it out. Every time a problem hits me today, I find myself crumble, “Oh, my gosh.” I get resentful. I get angry about it.

 

I got a big bill, my accountant came down and he like, “Look, you owe $X to the IRS this year.” And I’m like, “Dude, there got to be something we can do.” And the accountant that he is, like most accountants, “No there’s nothing we can do. I’ve looked at everything. There’s nothing.”

 

So he left the office and I’m sitting in my office, stewing about it; angry at the IRS. And I remember this thing. “Hey, all problems are opportunities.”

 

Rod Khleif: Right.

 

Grant Cardone: I’m like, “Okay.” The same time, I was doing this campaign with Facebook and YouTube that was ridiculous. It was costing me a lot of money to generate leads.

 

I’m like, “What if I gave this money to people that love me? That love my products, my customers and my followers. What if I gave that money to them?” That’s who needs it anyway. Facebook doesn’t need more money. YouTube, Google doesn’t need more money… And the IRS, we all know…

 

Rod Khleif: [chuckles]

 

Grant Cardone: We all know. They just thieves. So what I said was, “Hey, I’m gonna give a million dollars. Let me see how this goes. We’re gonna give a million dollars away before the end of the year.” And it has been a blast. I’ve had so much fun doing it. We give people little contests on Instagram, YouTube and Facebook.

 

Rod Khleif: Love it.

 

Grant Cardone: This Friday I’m gonna give 100 grand away for people doing videos, “Who is Grant Cardone?”

 

Rod Khleif: Oh, I love it. What a great idea man… You’re gonna get, first of all, that’s a total win-win, ‘cause you’re giving the money away and you’re gonna get an incredible reach, so awesome.

 

Grant Cardone: Yeah, and people are learning how little they understand about social media, and marketing, and branding, and storytelling.

 

Rod Khleif: Love it.

 

Grant Cardone: Like it has really been a very interesting practical for a lot of people. Forget the money. It’s gonna be a great practical.

 

Rod Khleif: Right.

 

Grant Cardone: They’re like, “I didn’t know how to put a video up.” “Oh, I did the video and I talked about myself the whole time.” Or “I did the video and I only talked about you and I never plug myself.” People are learning a tremendous amount about elementary marketing, branding for a business.

 

Rod Khleif: Love it. I love it. What a killer idea. So I know that you’ve got a great book ‘cause I have it. It’s a little booklet really. It’s called The Millionaire Booklet. For those of you who don’t have it, highly recommend you get it.

 

I wanna ask you some questions out of this ‘cause I just love this thing. I blew through it real fast, but it’s got sage wisdom in it fundamental wisdom about accumulating wealth. He’s got a quote in here from Mark Cuban. “The most important thing you must learn about any business is sales.” We just talked about that. “Sales is simple, who’s got my money?”

 

Grant Cardone: Yes.

 

Rod Khleif: I wanna ask you, to hear it in your words, some of the pieces in here because they really resonated with me. I wanna start with Chapter 7, which is, Stay Broke. Can you talk about that for a minute?

 

Grant Cardone: Yeah. Let me just back up for one second because The Millionaire Booklet is really not about a million dollars. For those of you out there that don’t want the money, it’s about how to collect a million of anything, or 10 million, or 100 million. By the way, you need big numbers. Anything you do in life, you need big numbers.

 

If you’re a farmer you need a lot of crops. Right? Because there could be a winner, so if you’re raising money for charity, you need lots of people to give you money. Not just one or two big benefactors.

 

If you’re looking for real estate deals, you need a lot of deals in the pipeline… So this is really how do you get a million of anything going. And the concept about staying broke… By the way, that book’s free online.

 

Rod Khleif: Right.

 

Grant Cardone: The concept of going broke is not to save money to save but when you stockpile dough, money, customers, deals… What you wanna do is you wanna either exhaust that, throw them away, or you wanna use them.

 

What I mean is, let’s say it’s a million dollars for example. If I save a million dollars or $100,000, what I wanna do is I wanna accumulate enough money, save it like mommy and daddy told me, and then what I wanna do is I wanna take that money and I want to push it into an asset. I want to actually be Wall Street says not be. I wanna be a illiquid. I do not want liquidity. I don’t trust myself.

 

Rod Khleif: You don’t make any money with the money in the bank, without question.

 

Grant Cardone: Well, what happens is, not only that money typically gets destroyed. I mean, that money is going down in value. Forget the one or 2%… I think I read last night there’s $35 trillion sitting in treasury bills right now. I’ll look up the number here in a second, but it’s massive. Earning one to 2%.

 

But the worse thing about that money is that money is going down in value everyday. It’s getting depreciated, not like a hard asset that produces income.

 

Rod Khleif: Right.

 

Grant Cardone: What I wanted to do is I wanted to take this depreciating asset, cash, and I wanna dump it into an asset, not my primary business by the way.

 

Rod Khleif: Right.

 

Grant Cardone: Or even my second business, my partnership. I wanna dump it into a third asset that will appreciate with time because the income from that property, or asset, or machinery, or business, should produce more of this depreciating asset, so I wanna grow broke. I don’t want money in my pocket.

 

Rod Khleif: Okay. Okay. Now, I totally relate to that. My definition of… My connection with that comment, Stay Broke, was I remember, when I had hundreds of units and I lived in a one-bedroom apartment because I was saving money to do exactly what you were describing.

 

Grant Cardone: Yeah. And that’s why… Because your lifestyle… I mean look, until you can go do something big, your lifestyle really shouldn’t change.

 

I see people doing this; they make a little bit of money… I have people everyday calling me, “I got 20 grand, I got 40 grand, I got 80 grand…” I’m like, “Keep saving money, man. Don’t change anything right now.”

 

Rod Khleif: Right. Right. Right. Right.

 

Grant Cardone: Don’t get a new car.  This concept of being broke, it’s not about being poor.

 

Rod Khleif: Right.

 

Grant Cardone: Right. It doesn’t mean I need to be like a miser but get rid of the money and operate because is you don’t have money, it’s gonna keep you hustling.

 

Rod Khleif: That’s right.

 

Grant Cardone: It’s not having an F-150 like The Millionaire Next Door book.

 

Rod Khleif: Right.

 

Grant Cardone: It suggested, don’t drink coffee, buy a used truck, and save your money, and one day you’re gonna be rich. One day you’re gonna be old, and you’re not gonna be able to enjoy the money. So you need to get the money to multiply.

 

The Millionaire Booklet is really a book about the importance of multiplication, not increment and adding.

 

Rod Khleif: Oh, I love it. I love it. Well, her sweetheart, come here and say hi real quick. Just come say hi real quick. Just one second, my wife just walked in. Say hi to Grant.

 

Tiffany Khleif: Hey, Grant.

 

Grant Cardone: Hey there. How you doing?

 

Tiffany Khleif: How are you?

 

[chuckles]

 

Grant Cardone: Great to see you.

 

Rod Khleif: Hi, baby. Love you.

Tiffany Khleif: Love you.

 

Rod Khleif: Okay. In another chapter you’ve got is, Where You Get Your Advice. Talk about that for a minute.

 

Grant Cardone: Yeah. Well, I used to get my advice from millionaires, and the problem with the millionaire… And this is no offense. I don’t mean to be arrogant or like to come off too harsh but the problem with the millionaire is the millionaire, if I give you a million dollars today and you suddenly become a millionaire what happens to the individual, 99% of the people that would get a million dollars today would go in to massive conservation. You would go in to now, protecting your money.

 

Rod Khleif: Protect. Yeah.

 

Grant Cardone: You would go in to conserve, protect, defend, contract. You’re actually contracting, I talk about this in a book I wrote called The 10X Rule.

 

Rod Khleif: Yeah. I love that book. Love it.

 

Grant Cardone: There’s four actions: no action, retreat, average, or massive action. If I give you a million dollars right now, what happens typically to most people is they…

 

[00:10:01]

 

Grant Cardone: ‘Cause this happened to me, I went in to massive contraction and production.

 

Rod Khleif: Right.

 

Grant Cardone: ‘Cause I didn’t wanna lose that money. I thought I had something.

 

Rod Khleif: Right.

 

Grant Cardone: I actually discovered that when I made a million dollars, the only thing I had was fear. I have more fear now about the money.

 

Rod Khleif: Can totally relate. Yeah.

 

Grant Cardone: And even felt more broke, I was like, “Oh, my god, I don’t really have anything here.”

 

Rod Khleif: Right.

 

Grant Cardone: My point in the book is never get your advice from a millionaire. I used to get it for my uncle all the time. And he was a millionaire and he was the big shot in our family. Everybody thought he was this sage guru that knew everything. He was buying Section 8 homes and renting them out and making 100, 200 bucks.

 

Rod Khleif: Sure.

 

Grant Cardone: Carrying a stub-nosed with him everywhere he went. Evicted people constantly… I’m like, “Dude, I don’t wanna do this.” I have no…

 

Rod Khleif: Who do you get advice from? Who do you get advice from, Grant?

 

Grant Cardone: Well, you could get your advice from people that are super rich.

 

Rod Khleif: Right.

 

Grant Cardone: Because a billionaire, I spent some time with a billionaire one summer. About three or four months, I got to spend with this guy. They think different. They’re like, “Put the money at risk. Use the money. Use the money.” Like they don’t think about money the same way. They think about it like oxygen or gym equipment, or fuel in a car.

 

Rod Khleif: It’s a tool.

 

Grant Cardone: It’s a tool.

 

Rod Khleif: Yeah.

 

Grant Cardone: And he asked me one day, at the end of our trip, he’s like, “What’d you learn hanging out with me?” I’m like, “Well I learned a lot. I learned, number one, I don’t measure how much I spend on my fuel on my plane. I’m one of the most frugal people you’ll ever meet. I never ask how much the fuel in my plane cost.” And he said, “Why is that?” I said, “Because the plane is not good without the fuel.”

 

Rod Khleif: [chuckles]

 

Grant Cardone: You have to have the fuel. Some things you don’t need to measure. You just need to do them.

 

Rod Khleif: Right. What do you tell people that have this mindset issue around being rich being taboo? I know you speak to that in your book as well.

 

Grant Cardone: Well, they’re all not rich.

 

Rod Khleif: Right. Alright.

 

Grant Cardone: Rich people don’t talk about it being taboo.

 

Rod Khleif: Enough said. [chuckles]

 

Grant Cardone: Anybody who tells you money won’t make you or you don’t need all that or… They don’t have any money. They’re giving you advice on something they’ve given up on. And I say this, all the time, “Do not get advice from a quitter.” The millionaire quit on his finances.

 

And by the way, see, that right there, that right there, what just happened, this is the things that people don’t… Nobody plans on this.

 

Rod Khleif: Right.

 

Grant Cardone: That’s why you have to have a lot of stuff going on, because bad stuff’s gonna happen. That’s why, I mean…

 

Rod Khleif: Fantastic metaphor. Fantastic metaphor.

 

Grant Cardone: So that’s why you need a lot of deals in the pipeline. That’s why most people should not be trying to buy real estate on their own.

 

Rod Khleif: Right.

 

Grant Cardone: They don’t have the time, or the energy, or the resources to look in enough deals to actually get the good ones.

 

Rod Khleif: The dabblers get crushed. You guys have heard me say that a million times. If you’re gonna do this, you need to immerse yourself. You need to study it.

 

Definitely listen to my last interview with Grant. Studied it for five years before you took action. You could walk on a property and literally know if…  Even without walking on it now, you could Google and know if it’s a deal. You’ve looked at so many…

 

Grant Cardone: Yeah.

 

Rod Khleif: And that’s what you have to do guys. And that’s for any business, real estate or otherwise. If you’re gonna master it, master it. Otherwise just don’t do it.

 

Grant Cardone: Or find somebody that you can roll with.

 

Rod Khleif: Well, yeah. Exactly. Exactly.

 

Grant Cardone: Someone that has the mastery part done. Be willing to give them something to do the work. The first thing, if you’re looking for somebody to play with, look for somebody that’s got a picker. Do not look at the pay out. The pay out is not the deal. Don’t look at the fees first. Look at their picker. The how do they pick deals. The money is in the deal.

 

Rod Khleif: Right.

 

Grant Cardone: It is not in the revenues. It is not in the management agreement or the sharing. It is, does the guy have a picker?

 

Rod Khleif: Love it. Love it. Now, on my podcast, I talk about the psychology of success and you also. You’ve got a quote in your booklet that, “Financial freedom is two parts mental and one part mechanical.” I like to say 80% of your success in anything is mindset and your psychology, and 20%’s the mechanical. You’re basically saying the same thing.

 

Grant Cardone: Yeah.

 

Rod Khleif: If you don’t have the mindset…

 

Grant Cardone: Yeah. Yeah. And the financial mindset is it so difficult because we’re surrounded by so many people that have given up on money. I’m not talking about people in poverty.

 

Rod Khleif: Right.

 

Grant Cardone: Inner city Baltimore, Chicago where kids don’t have anything. I’m not talking about Ethiopia where you can see a kid’s ribs ‘cause the kid doesn’t have food for three days.

 

I’m talking about the overlooked middle class America; the life insurance agent that works at Northwestern Mutual, making three or 400 grand a year, the doctor, the chiropractor, the plumber, the roofer. I’m talking about people that actually make money that never have anything.

 

Rod Khleif: Yeah.

 

Grant Cardone: And they’re settling. They’re settling, right? They have the country club, the two kids going to school. A guy thinks a million dollars is a lot of money and he has a kid. It takes a million too to get a kid from birth to college.

 

Rod Khleif: Right.

 

Grant Cardone: People are under estimating, and nobody teaches us this. There’s no classes in school or a college that says, “How much money, is enough money so that you don’t have to worry.” There’s no course on that.

 

Rod Khleif: Now, don’t get me started on that. They don’t teach three fourths of the things people need to learn about financial education, emotional education, psychological education… Talk about; your first chapter is about the decision. Then we’ll move on to something else.

 

By the way guys, definitely get his booklet. It’s free for god sakes, like my book is free. Get his booklet for sure. You’d be crazy not to… What’s the millionaire decision?

 

Grant Cardone: The decision is you need to make a decision to become a millionaire. First of all, you’re gonna do it anyway, so everybody’s gonna do it. In America, everyone becomes a millionaire in their lifetime, as long as they live long enough.

 

Rod Khleif: Right.

 

Grant Cardone: Now, if you died at 25, you’d probably not going to make it but if you live and work in America for 30 or 40 years. Let’s say 30 years, and you earn $30,000 year you almost made it to a million dollars.

 

Rod Khleif: No kidding.

 

Grant Cardone: Now, it’s not a question of whether or not you’re gonna earn the million or not, you’re gonna earn a million dollars. The question is, can you take time out of the equation and become a millionaire sooner rather than later.

 

Rod Khleif: And that requires a decision. And the decision is when the… The root of the word means to cut off. If you’re gonna attack the island, you burn the ships.

 

Grant Cardone: Yeah. Yeah. Yeah.

 

Rod Khleif: That’s a decision.

 

Grant Cardone: Yeah.

 

Rod Khleif: Okay.

 

Grant Cardone: Just make a decision and don’t just let this happen you. Right?

 

Rod Khleif: Right.

 

Grant Cardone: Make a decision, “Hey, I’m gonna become a millionaire, and I’m gonna take time out of the equation.” This is when you’re gonna… And by the way, make a statement to the people around you. You’re gonna hit that thing we just talked about, about the environment around you, saying, “Why do you need a million dollars?”  The only person saying that is a person that has not made a decision and that has given up, and quit on money.

 

Rod Khleif: Love it. Love it. Love it. Alright, well thank you. Again, love that booklet and you guys must get it.

 

I’ve got some questions; I put it out to my list… If they had some questions to ask you, and I got a ton of them, and I pulled out some really good ones. If you don’t mind, I’d like to ask a few of those.

 

This first one’s from Mike Hansel. He says, “What suggestion…” and I know Mike works with vets, ‘cause he’s a friend of a friend. “What suggestions do you have for vets getting out of the service and using VA loans to buy multi-family instead of single-family?

 

Grant Cardone: Well, number one, Mike, if you’re a vet you can get my Cardone University Program for free. It’s free to vets.

 

Rod Khleif: Wow. Wow.

 

Grant Cardone: CardoneUniversity.com/vets.

 

Rod Khleif: Love it.

 

Grant Cardone: So that’s number one. Number two I would not do it.

 

Rod Khleif: Really.

 

Grant Cardone: I wouldn’t do it because it’s limited to two few units. The problem with the VA loans and the home loans is… I know this might be contrary to some of the guests you have on.

 

Rod Khleif: No, actually, it’s contrary to my belief as well. I wanna hear it and then I’m gonna give you my position.

 

Grant Cardone: Yeah. The problem is, look, two units times 800 a month, is $1600 a month. Times 12 is 18,000 buck a year, which means you cannot pay for a manager. 

 

Rod Khleif: Okay.

 

Grant Cardone: If somebody agrees to live in one of the units or…

 

Rod Khleif: Well, let me interject.

 

Grant Cardone: Yeah.

 

Rod Khleif: What I think with VA debt, and this is not your wheelhouse, I’ve owned 2,000 houses so it’s a little bit of my wheelhouse. With VA loans, I’m pretty sure they can use that debt and get into it like a fourplex, nothing down.

 

Grant Cardone: Okay.

 

Rod Khleif: And in my opinion, that gets them over the hurdle of taking action and then they could… If it’s nothing down … It’s they have to live in one. That’s the only way it works. If you’re gonna go buy a house…

 

Grant Cardone: Yeah. Yeah. Or they’re gonna say they’re gonna live in one.

 

Rod Khleif: Yeah. Well say… I don’t wanna play with that but they have to intend to live there but if they’re gonna buy house anyway why not get a fourplex that can cash flow and start that career. Tell me your position, if you disagree.

 

Grant Cardone: My position is you shouldn’t buy a house.

 

Rod Khleif: Right.

 

Grant Cardone: Nobody should buy a house. That is a liability that you’re hanging around your neck. The last thing a vet needs to do is come back to America and anchor down in a home.

 

Rod Khleif: I agree.

 

Grant Cardone: You wouldn’t do that in a military operation.

 

Rod Khleif: Completely agree.

 

Grant Cardone: You’d have a camp, and you’d be willing to freaking take that camp and move it if you had to. Like finances is a military operation. You go where the money is, man.

 

Rod Khleif: Okay.

 

Grant Cardone: You go where the enemy is. Who’s got my money? Who’s got my target? Who’s got my mission? So the problem with two units, and four units… Everybody hates it when I talk about this…

 

[00:20:00]

 

Rod Khleif: [chuckles] Actually, I’ve got several questions about it. I’m really glad were already into it.

 

Grant Cardone: Because people are buying on a budget. This isn’t Target. This is a financial investment. This isn’t a toy for your kids, man. The only reason that people are looking at two, four, sixes, eights and 12s is because they don’t have the money for the down payment to buy a 26.

 

Rod Khleif: Right.

 

Grant Cardone: Again, back to the deal. There are no good deals in twos and fours. I’ll prove it to you right now.

 

 

Rod Khleif: Well not today…

 

Grant Cardone: Is anybody in your town building them?

 

Rod Khleif: Right.

 

Grant Cardone: No. They’re gonna build 240 units. They’re not gonna build two units. In two units and four units, there’s no swimming pool, there is no fitness, there’s no exit. These are only gonna be worth so much money. Can he get a load drip? Can he live in one place for free? Yeah, but that’s not the goal.

 

The goal is not to live. When you’re buying apartments, the goal is financial freedom. I think you said it in your opening, “lifetime cash flow”. Not a place to live.

 

You see, the mission changed. I was on a lifetime cash flow mission and the next thing you know, I’m trying to live someplace for free. You wouldn’t buy a restaurant so you could eat there for free.

 

Rod Khleif: Fair enough. Fair enough. Fair enough.

 

Grant Cardone: My belief is this. You need to look at a minimum of 16 units. Screw the debt. Don’t worry about the debt. The debt is so good right now it’s unbelievable.

 

Rod Khleif: It’s crazy.

 

Grant Cardone: What you need to do is figure out how to get a down payment for four units. That’s all you got to do to figure out, mothers, brothers, sisters. Find me. Hell, I might invest with you.

 

Rod Khleif: [chuckles] You’re gonna open up a floodgate by putting that out there.

 

[chuckles]

 

Rod Khleif: Oh, that’s funny. Alright. Listen, and I knew you had that position and went right to the controversy. I tell people, if you can put a stake in the ground and get something going, just because that’s where I started. But I absolutely agree with your position as well.

 

Grant Cardone: Look, it’d be like, okay, you’re gonna pick a girl. Look at your wife, how beautiful she is.

 

Rod Khleif: Thank you. I’ll tell her you said so.

 

Grant Cardone: Yeah. I mean, everybody knows it, right? You know it. Since you’re just getting started, should you settle for something less or go for the Holy Grail?

 

Rod Khleif: [laughter]

 

Grant Cardone: Maybe [bad audio] little boys.

 

Rod Khleif: That’s awesome. That’s awesome… Alright, the next question’s on the same topic, I won’t do that. Here’s one, how do you choose a mentor for someone that’s got little or no experience? This is from Phillip. How do you choose a mentor for someone who’s got little or no experience but wants to start a multi-family with a 10X mindset? Obviously, he has your book.

 

Grant Cardone: Yeah. Mentoring would not… He could just watch my show every Monday. That would be enough mentoring to overload him.

 

Rod Khleif: Okay. Love it.

 

Grant Cardone: The mentors I’ve had in my life, I’ve never met them personally.

 

Rod Khleif: No kidding.

 

Grant Cardone: Personally, except for the time I spent with this billionaire.

 

Rod Khleif: Books, videos, podcasts, whatever.

 

Grant Cardone: Yeah, some of them weren’t even alive. I study them. Also on mentoring, when you’re mentoring, you should look for negative mentors too. What to avoid mentors?

 

Rod Khleif: [chuckles]

 

Grant Cardone: Right?

 

Rod Khleif: That’s why I started my podcast, brother. I mean, I got crashed and burned in 08, ‘cause I was in single-family. I’m a negative mentor in that regard. And I’m not ashamed to admit it. Love it. Love it.

 

Grant Cardone: Let me ask you this question, if you would have done 100 units and above…

 

Rod Khleif: If I had just done that, I’d be on the back of my yatch right now. I’d be parked outside your condominium complex in Miami right now, brother. [chuckles]

 

Grant Cardone: What was the problem in 2008? It was the single-family home.

 

Rod Khleif: Oh, no question. No question. I talk about all the time. It was just lazy. I was comfortable. And I’ve got your sign on my wall, brother. It says, “Comfort kills.” It’s right there in my exercise room.

 

Grant Cardone: Yeah. The highest foreclosure rate was on two, fours, and eights.

 

Rod Khleif: No kidding. Now, that, I didn’t know.

 

Grant Cardone: Yeah.

 

Rod Khleif: That I didn’t know. Okay. That I didn’t know. Alright. Well there…

 

Grant Cardone: It wasn’t on the big 203 [bad audio]…

 

Rod Khleif: No. No. No. No. It was single-family, don’t get… It was houses… But you’re absolutely right, and I love the negative mentorship.

 

There you go guys, I’m your negative mentor [chuckles] not you positive mentor. Alright, here’s another one…

 

Grant Cardone: That’s why I say, “Look, study somebody that has packed away… Like I study more of Cuban, right?

 

Rod Khleif: Oh, yeah. No question.

 

Grant Cardone: He’s studying artificial intelligence, I’m gonna study it. I look at a guy like Elon Musk, to think, on this dude. He’s unbelievable.

 

Rod Khleif: Oh, my god. Three billion dollar companies that he started from scratch; he’s my freaking hero.

 

Grant Cardone: All of which don’t make any money.

 

Rod Khleif: Well, yeah, but… they will.

 

[chuckles]

 

Rod Khleif: But they will… Yeah. Alright. I’ve got so many questions around 16 units. Jeff Hamlin has one, I’m not gonna ask that, but Jeff, thank you for submitting it. Ryan Dvorak is kinda similar question.

 

Grant Cardone: Now, you got to ask it. I’m curious, what is it?

 

Rod Khleif: Alright. Mr Cardone is always telling his listeners it’s a waste of time to invest in anything less than 16 units. I would argue that by purchasing smaller units, I’m gaining valuable experience that I will ultimately leverage when I position to take down larger units with other people’s money. [chuckles]

 

Grant Cardone: Okay, Jeff, I’ll just tell you this. I totally understand where you’re coming from. This is a plane I bought. I’m gonna give you an example.

 

Rod Khleif: [chuckles]

 

Grant Cardone: I could have started… Now, I’m not saying that to say that I’m right. I’m saying that most people do not start with the midsize jet.

 

Rod Khleif: No, Cessna. [chuckles]

 

Grant Cardone: Most of them start with a little Lear, maybe a Phenom then a Lear, and then they go… And then they buy three jets to get to this one. What did I do? I’m like, “I don’t wanna make that mistake. I talked to a lot other guys that own jets. I noticed that they all did this thing.

 

Same thing with the real estate business, a guy wholesales, then he buys duplexes, then he buys eights. Then the next thing you know he’s buying hundreds. Just skip.

 

Rod Khleif: Right… Skip.

 

Grant Cardone: I talked about this in The Millionaire Booklet, man. Quit… You don’t need… you don’t have to walk through hell, folks.

 

Rod Khleif: [chuckles] I love it.

 

Grant Cardone: You go straight to heaven, man. You do not have to stop in purgatory.

 

Rod Khleif: [chuckles] I love it.

 

Grant Cardone: If you got a good sales game, you just could skip. And so don’t spend money, time, and energy buying stuff that’s no good for you. You could research it. You could study. I did that for three years.

 

For three years, I walked properties. That’s how I figured it out. “Oh man, the eight units is not gonna work. It’s just gonna freaking… It’s gonna be like a damn albatross around my neck. It’s gonna take away from my main job, that’s giving me the down payment to buy, to do the real estate. So how do I do it?

 

That’s when I realized, “Oh, the management, the management of that property. First the pick, then the management.”

 

Rod Khleif: Let me say this. Let me say this, okay, because you have a frigging billion-plus mindset. A lot of my listeners, and this is that whole mindset thing. A lot of my listeners, they make what they must make. People make what they must make. And it’s a must…

 

I know where these questions are coming from and they’re fear based. I have them myself. I’m like, “Oh my god!” When we’re looking at hundreds of units.

 

Like you tighten up and so it’s common. It’s human nature. Do you have any advice for getting past that, for my listeners?

 

Grant Cardone: Again, go back. Make a decision.

 

Rod Khleif: Make a decision.

 

Grant Cardone: I’m a hundred-unit buyer.

 

Rod Khleif: Okay.

 

Grant Cardone: I’m an 80-unit buyer. Don’t look at this other stuff.

 

Rod Khleif: Okay.

 

Grant Cardone: What investment do I have than telling somebody, “Don’t waste your time on this. There’s no money.” I can do the math for you. Multiply eight units times 600 bucks. It’s 4,800 bucks a month if you’re full. It’s 54,000 dollars a year.

 

Look, if you wanna make 54 grand a year don’t buy real estate, go back, go work harder at your damn job.

 

Rod Khleif: [chuckles]

 

Grant Cardone: I can go so on the streak. I know people that panhandle in Miami that make 70 grand a year. You don’t need a loan. If you wanna make another 50 grand a year, by the way, that’s 50,000 if you’re full, if you have no taxes…

 

Rod Khleif: Right, and with no debt.

 

Grant Cardone: No insurance. No debt. Nothing.

 

Rod Khleif: Right.

 

Grant Cardone: So the math doesn’t work, right? It’s like, why would you… 54 grand a year. If it does 54 grand a year, if you net 30% of that, which you won’t, what are you doing dude… You’re chasing $1200 a month.

 

And then Jeff is gonna say, “But $1200 month changes my life, Grant. It doesn’t mean anything to you, ‘cause you’re the big shot. That’s 1200 bucks”. Look I value 1200 more than anybody I know. Including Jeffy.

 

Rod Khleif: [chuckles]

 

Grant Cardone: Okay, $1200 hits that floor, I guarantee you Jeff, I will have the money in my pocket before you can bend over. I’ll be reciting the serial numbers to you Jeff, before you bend over to get it.

 

I’m just saying, man, if you guys wanna lifetime cash flow…

 

Rod Khleif: Go larger. Alright. Got it. Got it. Okay. You guys heard it. Alright, here’s a great question. I got to ask this one. If you woke up tomorrow with nothing but the knowledge you have now, what would you do to gain your wealth back as fast as possible?

 

Grant Cardone: Nobody would know I was broke.

 

Rod Khleif: Okay.

 

Grant Cardone: ‘Cause I wouldn’t be.

 

Rod Khleif: Love it.

 

Grant Cardone: Because I have my commitment. I have my creativity. I have… You could take everything away from me. You can take away my name, my verification on Instagram, on Twitter, and YouTube. Take away all my followers. I’ll get it all back. Not even a question. You kill me, and I’ll come back.

 

Rod Khleif: It’s mindset guys. I hope you’re hearing it. It’s total mindset. Now, everybody thinks that this road to success is an easy road, Grant. They see you. They see bigger than life, the jet, the beautiful wife, the beautiful family, the condo in Miami, the Bentley… on and on. The Rolls…

 

Grant Cardone: Not a Bentley, dude, not a Bentley. That’s not a…

 

Rod Khleif: Oops, that’s fighting words there… Okay, Rolls.

 

[chuckles]

 

Rod Khleif: Anyway, they see that and they think it’s an easy road. Talk about some of the bumps in the road, the setbacks. Give us an example of…

 

[00:30:05]

 

Grant Cardone: First, let me just say this. First of all, it is easy.

 

Rod Khleif: It is easy. Okay. [chuckles]

 

Grant Cardone: It is easier than the alternative.

 

Rod Khleif: Ah. Okay. Alright. I’ll go with that.

 

Grant Cardone: Okay, ‘cause I’ve done them both.

 

Rod Khleif: Okay.

 

Grant Cardone: I got to tell you that. It is easier to fly on my jet than it is on United Airlines.

 

Rod Khleif: Yes, it is.

 

Grant Cardone: It is easier to roll up in my Rolls than it is in a Camry. I owned a Camry till I was 45 years old.

 

Rod Khleif: And I have a Ford F-150 that I just bought, by the way. So you’re killing me here. You’re killing me.

 

Grant Cardone: Those trucks that they’re making today though, are so freaking sexy.

 

Rod Khleif: Oh, I love mine. I went out, I was gonna buy an Escalade. I had it ordered. I brought it in from another dealership, and I drove it, and the thing drove like crap. Sorry Cadillac owners. And I drove a Ford F-150 and it was smooth. And I’m like, “I’m getting this. Screw it.”

 

Grant Cardone: Those trucks that they’re making today, man. They make you look like god.

 

Rod Khleif: Anyway. I digress… What are some early failures that you had that contributed to your success? Some seminars. I know you talked on the previous… You don’t have to talk about the single-family because you talked about that on the previous episode, but anything else though, anything in the multi-family space, any seminars there?

 

Grant Cardone: I bought a deal in Tucson. I bought 2200 units in Tucson in three days.

 

Rod Khleif: Wow.

 

Grant Cardone: Okay. And one of them was a pig. But here’s the deal. I knew, because back to Jeff’s question, I had shopped so much property, then I walked into a town, I had never been in. more than once or twice maybe. Stopping on Southwest Airlines going through LA or something.

 

I bought 2200 units. It was my intuition, “Hey, you need to go to Tucson.” It wasn’t on anybody’s radar. This was years ago. I went in and collected 2200 units. They were cheap, 40,000 bucks a unit or something.

 

One of them, I knew when I looked at it, I said, “This thing I got to buy it with the rest of the stuff. It’s not gonna cashflow, but I’m gonna make $2 million when I sell it.” I made $2.1 million when I sold it. It never cash flowed, it hurt.

 

I made another mistake on a portfolio in Nashville, Tennessee. About 800 units, I assumed the debt. The debt was terrible, it still is. I still own the 800 units.

 

Rod Khleif: Wow.

 

Grant Cardone: Terrible debt, like almost 6%.

 

Rod Khleif: Wow.

 

Grant Cardone: Only put $5 million down to buy 800 units though.

 

Rod Khleif: So you can’t re-fi it yet.

 

Grant Cardone: And one of them is a pig. One of them was like buying the United Nations. Like they’re so…

 

Rod Khleif: Careful, careful, careful. What do you mean by that? [chuckles]

 

Grant Cardone: I mean, everybody in there hates everybody because of where they came from.

 

Rod Khleif: Okay. Fair enough. [chuckles]

 

Grant Cardone: I love everybody.

 

Rod Khleif: Alright. Me too.

 

Grant Cardone: Until they don’t take care of my stuff.

 

Rod Khleif: Right.

 

Grant Cardone: Here’s another big mistake I made. Two big master massive mistakes. Number one, I should have never sold anything.

 

Rod Khleif: Oh, guys, guys, I wanna exclamation mark that one. Be a real estate buyer not a seller. I love it. Okay. Thank you.

 

Grant Cardone: But I had to, to get where I wanted to go.

 

Rod Khleif: Fair enough.

 

Grant Cardone: Okay. Number one. Number two I should have bought more. I should have bought everything.

 

Rod Khleif: Love it.

 

Grant Cardone: If you buy it the way I buy it, okay. First is the pick, then it’s the cashflow. And you can wait, if as long as you have time, like in Florida apartments… A guy told me this the other day, apartments in Florida double every 10 years. It’s been doing this for 30 years now.

 

Rod Khleif: No kidding. Didn’t know that. Wow.

 

Grant Cardone: Not those little duplexes. Duplexes [bad audio]

 

Rod Khleif: Alright. Alright. Alright. Alright, let me ask you this. It’s a good question actually, ‘cause it’s something I’d love to hear your answer too. This is from Adam Ulery in Clearwater. Right up the road from me. What advice do you have from someone who’s beginning to build his investment property portfolio about how to prepare to capitalize on the inevitable market correction?

 

Grant Cardone: Now, he’s been… He need to quit reading Harry Dent, dude.

 

Rod Khleif: [chuckles] Harry’s right up there in his backyard too actually. That’s funny.

 

Grant Cardone: Look, yeah, Harry’s been predicting this…

 

Rod Khleif: The Sale Of A Lifetime, I think, is his recent book. Everything is gonna go on sale.

 

Grant Cardone: Yeah, and he’s been saying it for 30 years. I mean, sooner or later Harry, you will be right. I just don’t know if you’ll be around.

 

So first of all, I’d be very careful in a town like Clearwater, buying small units, ‘cause there’s a lot of single-family there that competes with price. Okay. Like there’s a lot of just dilapidated product there…

 

Rod Khleif: Let’s talk about larger properties. I know maybe we do need to hear your worse case scenario analysis that you do. That you talked about the previous episode.

 

Grant Cardone: I mean, I would love for it to come.

 

Rod Khleif: Okay.

 

Grant Cardone: I would love to see the pullback.

 

Rod Khleif: It’s an opportunity, right? With crisis comes opportunity.

 

Grant Cardone: Yeah. Well because I think… Look, we’re already seeing.  I’ve been saying this; I’ve been an outlier on it for a long time. People talk about the Millennials being renters. I’m like, “The Millennial is not the renter. It’s the Baby Boomer that’s coming. The wave of baby boomers that will be renters is gonna be massive.”

 

It hit CNBC yesterday. It came out on article that even Baby Boomers are starting to choose renting over buying. I’ll tell you, I’m buying a deal in Orlando, Florida right now, 50 million bucks, 240 units, about $200,000 a door…

 

Rod Khleif: Wow. Holy crap. 200 grand a door, wow!

 

Grant Cardone: 200 grand a door. I have 68,000 pieces of traffic by lunch every in front of this joint… Okay, watch this, I have a swimming pool that costs a million and a half to build. I have a gym the costs about 600 grand to build. 1200 square feet of gym. This is the nicest 24-hour fitness.

 

Rod Khleif: Wow.

 

Grant Cardone: I got somebody picking up after the people. I have the best technology in the place you can put in a home. And the person can rent there for 1200 bucks a month.

 

Rod Khleif: How can you make money on a $200,000 unit price on $1200 a month?

 

Grant Cardone: Well I think the rent’s probably 1500 bucks a month.

 

Rod Khleif: Okay. Okay.

 

Grant Cardone: I misquoted that. So it’s 1580. How do I do it? I’m gonna get a loan from a life insurance company.

 

Rod Khleif: Oh, nice. Those are the best interest rates you can get.

 

Grant Cardone: It’s [bad audio] seven, seven.

 

Rod Khleif: Wow.

 

Grant Cardone: Okay. 99% of population on Earth cannot get that loan.

 

Rod Khleif: Right.

 

Grant Cardone: It’s gonna be interest only for three to five years.

 

Rod Khleif: Wow.

 

Grant Cardone: And I’m just gonna sit there and wait, man. I’m gonna clip my little coupon at six to 8%, and I guarantee, I’m gonna get rent roll there.

 

Rod Khleif: For sure. Okay.

 

Grant Cardone: So I might…

 

Rod Khleif: Wow. Now, guys, that’s what’s called cajones, 200,000 a door. Holy Toledo. Good Lord. [chuckles]

 

Grant Cardone: Look, they’re gonna be… You know what they are in Miami right now?

 

Rod Khleif: No.

 

Grant Cardone: Like you all need to… What city do live in?

 

Rod Khleif: I’m in Sarasota.

 

Grant Cardone: Yeah. Okay. But you got to get out, man.

 

Rod Khleif: [chuckles]

 

Grant Cardone: You got to get out, bro. Look, in Silicon Valley, a 1967-built one-bedroom, one-bath, 6800 bucks a month.

 

Rod Khleif: Jesus.

 

Grant Cardone: New York City.

 

Rod Khleif: Yeah. New York.

 

Grant Cardone: What I rent for 1500 bucks in Orlando, will cost a guy in New York 6,000 bucks a month.

 

Rod Khleif: It’s coming.

 

Grant Cardone: He won’t have a swimming pool.

 

Rod Khleif: Right.

 

Grant Cardone: Okay. He will not have a gym. You go buy a house in Sarasota. What’s the average price of a house in Sarasota?

 

Rod Khleif: Yeah. I don’t even follow it anymore. I’m totally multi-…

 

Grant Cardone: 200? Maybe 300 grand? 280?

 

Rod Khleif: Yeah. Probably. Probably.

 

Grant Cardone: You’re not getting a swimming pool, you’re not getting a gym and nobody’s picking up after you.

 

Rod Khleif: Guys, this is total forward thinking because there’s 80 million Baby Boomers getting old and getting cold. You’re buying in Orlando, which is a Mecca for baby Boomers. Myself included. I love your mindset, man. You’re absolutely right, comparing it to…

 

Grant Cardone: Notice where I’m collecting properties; Tennessee, Texas, Florida.

 

Rod Khleif: Love it.

 

Grant Cardone: Tax-free states. What’s gonna happen in New Jersey? New Jersey’s broke. Illinois broke. New York broke. California’s broke. People are moving out of those states to none income tax states. Not just for the no income tax but they’re also moving there because it’s warm.

 

Rod Khleif: Quality of life, yeah, and the lifestyle.

 

Grant Cardone: Right. People are moving where it’s less expensive to live, where they can enjoy life more. It’s 80 million Baby Boomers, 75 million Millennials. That is one half of the entire population of America.

 

Rod Khleif: Wow. Okay. I didn’t even know that statistic. That’s fan-…

 

Grant Cardone: We’re becoming a renter nation. We will become Europe. Okay. It’s gonna happen. You will not own a home here. You’re going to see homes empty across America. I promise you, this is gonna happen in our lifetime.

 

Rod Khleif: No kidding.

 

Grant Cardone: People wanna use things, they don’t wanna own things. If you look at the leasing rates in the automotive industry, it’s the highest. When you and I were growing up, you had to own your own home…

 

Rod Khleif: Oh, yeah. Own home; own your own car and all of that.

 

Grant Cardone: The leasing rates on the automobiles today is the highest they’ve ever been since Henry Ford started building cars. Because people don’t need to own anything anymore, people are fine with using stuff.

 

Rod Khleif: Let me ask you a question, ‘cause this kinda ties in. I got two questions left that I’d like to ask you from listeners. One is from Scott Hollister. In the next ten years, are we gonna see a lot of competition for affordable housing compared to A and B class?

 

Grant Cardone: Yes. Absolutely. There’s no affordable.

 

Rod Khleif: Right.

 

Grant Cardone: So like that thing I’m buying at 200 grand a door.

 

Rod Khleif: Right.

 

Grant Cardone: I think that’s affordable living.

 

Rod Khleif: [laughter] I’m gonna quote you on that one. I love that.

 

Grant Cardone: You show me where you can buy a house for 200 grand and get a swimming pool; an infinity walk in swimming pool with the sand beach.

 

Rod Khleif: Oh, that’s awesome. Yeah. That’s awesome.

 

Grant Cardone: You can’t. And a security gate. Right?

 

Rod Khleif: Was this a failed condo conversion?

 

Grant Cardone: No. Uh-ah. No.

 

Rod Khleif: Wow. They built it like that.

 

[00:40:00]

 

Grant Cardone: A man just said, “Hey, you want this deal?” I said, “Yeah, I’ll be over there tomorrow and look at it.”

 

Rod Khleif: Wow.

 

Grant Cardone: I’m buying 507 units in Houston, Texas. Less than a mile from the Galleria, Starbuck in my backyard, Whole Foods 60 yards from me.

 

Rod Khleif: Wow. That’s lifestyle.

 

Grant Cardone: Across from the biggest Baptist church in Texas…

 

Rod Khleif: That’s lifestyle.

 

Grant Cardone: And I’m paying 100 and… I can’t say exactly what I’m paying on that deal but I’m assuming $63 million in debt on that deal; 500 units.

 

Rod Khleif: What is…

 

Grant Cardone: I’ll make $60 million in that deal.

 

Rod Khleif: Love it. Love it.

 

Grant Cardone: It’s gonna take 10 years.

 

Rod Khleif: Love it. Well, actually, on that note, I’m not gonna ask you this last question ‘cause it really doesn’t…

 

Grant Cardone: Oh, you got to dude, you opened the door, any time you open the door you got to walk through it.

 

Rod Khleif: Yeah. [chuckles] You know what, I lost the name on this, I… Forgive me, whoever asked this question.

 

Grant Cardone: It Rupert… It’s Rupert.

 

Grant Cardone: Please ask Grant if he’s changing markets from tertiary to primary, since he’s taking outside investment money? Does it make sense to go larger so you’ll have access to more capital?

 

Grant Cardone: Well I think it doesn’t… To me, I go to markets that other people don’t wanna play in. So like right now, why am I going to Houston, Texas?

 

Rod Khleif: That’s one of the hottest markets in the country. Right?

 

Grant Cardone: Again?

 

Rod Khleif: Isn’t that a hot market or I am thinking Dallas. Never mind.

 

Grant Cardone: No. No, Houston was overbuilt.

 

Rod Khleif: Okay.

 

Grant Cardone: They built, I don’t know, 28,000 units here in the last couple of years. What happened was all the big institutions pulled out of Houston.

 

So what I do is I go to places where the institutions pull out because when institutions pull out, what do we know? They’re coming back. So soon as oil pops again… First of all, Houston is not just an oil town anymore. It’s the biggest medical centre in the world. More medical jobs, there than oil jobs, so it’s just a matter of time before the institutions come back in and look for product.

 

Rod Khleif: When you say institutions, are you speaking about the giant billion dollar corporations or what?

 

Grant Cardone: Yeah, I’m talking about them.

 

Rod Khleif: Okay.

 

Grant Cardone: Yeah, I’m talking about the billion dollar REITs. I’m talking about the black stones and the guys that have so much money they have to buy massive deals. They’ll look to operators like me with 10, or 12, or 15,000 and 20,000 units, and say, “Hey, we’d like to buy the whole portfolio.”

 

Rod Khleif: Oh, got it.

 

Grant Cardone: Ring-a-ding. Ring-a-ding.

 

Rod Khleif: [chuckles] Ka-ching… I wanna move on to a couple of other questions. I think I read somewhere, correct me if I’m wrong, that you’ve got a pretty consistent morning ritual. Can you speak to that for a second? I mean what you do? I know my listeners wanna know what Grant Cardone does in the morning that contributes to his success.

 

Grant Cardone: First thing I do is I wake up. I go piss. I go take a piss.

 

Rod Khleif: [chuckles]

 

Grant Cardone: First thing I do. And then I have this book that’s called the 10X Planner. If I don’t have this book with me, then I’m gonna have a little legal pad with me and I’m gonna start to write my goals down.

 

My goals have been changing my whole life. So like what I wanted when I was 10 years old is not what I want today.

 

Rod Khleif: That’s how it works.

 

Grant Cardone: I’m constantly like writing down where I’m going. This is not a battle plan. This is not a to do list. This is not what I’m gonna do today. It’s not my appointments… The meeting with you today wasn’t on here. This is my big goals. Unachievable. Out of reach.

 

And I’m gonna write that down in the morning. I’m gonna write a quote of the day that I’m gonna live by that day. Today, my quote of the day is, “I’m not a post. I’m not a telephone pole. I’m not a tree. I control my destiny.”

 

Rod Khleif: Love it.

 

Grant Cardone: “I can change the outcome on my life.” So that’s my quote that I live by, and then my targets for the day. And then at the end of the day, I’m gonna write my goals down again. That’s kinda my personal ritual.

 

I get to the office about 9 o’clock. We have a meeting. I didn’t make the meeting today ‘cause I got a workout in. And then Katie is gonna give me a list of stuff I have to do today. I’m gonna do whatever Katie tells me to do. Then I’m gonna jam in as much as I can to create as much freaking craziness as I possibly can.

 

Rod Khleif: Love it. Love it. Love it. No, I think I read that you work out everyday. You exercise in the morning…

 

Grant Cardone: I try to get two workout in a day if possible, but…

 

Rod Khleif: Two. Wow.

 

Grant Cardone: I know.

 

Rod Khleif: I don’t always…

 

Grant Cardone: They’re short 30 minutes; I’m not a body builder. I’m not spending an hour and a half in a gym. I see guys doing this. I’m like, “Dude, you got too much biceps there, bro. Okay. You’re working those biceps, I’m working at the bank.”

 

Rod Khleif: Love it… What are you not very good at?

 

Grant Cardone: Well, I’m terrible at management.

 

Rod Khleif: Okay. How do you handle that? Use third party managers?

 

Grant Cardone: Well we, I mean, overall managers. Not just apartment managers.

 

Rod Khleif: So in your businesses and your real estate. Okay.

 

Grant Cardone: Look, I’m a terrible organizer. I’m a terrible manager. I create lots of havoc around me. There’s a tremendous amounts of destruction taking place in my aftermath.

 

Rod Khleif: So you have a whole cadre of people cleaning up behind you, that is what you’re saying.

 

Grant Cardone: Yeah. There’s a lot of clean up going on.

 

Rod Khleif: [chuckles] Okay.

 

Grant Cardone: I don’t know. I don’t think about what I’m bad at much.

 

Rod Khleif: Alright. Fair enough. Fair enough.

 

Grant Cardone: I’m not a great communicator. I’ll tell you something else, I’m not a great communicator even though I think people would say I’m a great communicator. I think I’m probably an awful communicator ‘cause I know I come across as arrogant and too harsh. I don’t pull the heartstrings and make people feel all fufu and woowoo.

 

I try to do it. But it’s not who I am. Like if you [overlap talk]

 

Rod Khleif: And that’s why I love you brother. Seriously. I mean, there’s no BS, I said it in your intro and that’s why you’re a huge success.

 

You absolutely rub some people the wrong way, and that’s okay.

 

Grant Cardone: See, like I told Jeff about the two, and the four, and the six, and the eight. Because he doesn’t want to swallow the pill, what he does is he’s like, “Oh, Grant’s an arrogant guy, that’s lost touch with reality.” Look, I see your comments. I know what you say about me.

 

First of all, whatever you say about me, I’ve already said it about myself. Have I lost touch with reality? Yes, I have. I will never buy a single-family home that produces $100 a month cash flow ever again for the rest of my life. I do not…

 

Rod Khleif: Hallelujah, man. I bought 2,000 of them. [chuckles]

 

Grant Cardone: What do you do with them, dude?

 

Rod Khleif: Yeah… yep.

 

Grant Cardone: You got 2,000 closings.

 

Rod Khleif: 2,000 owners, 2,000 renovations. Yeah. Let’s not go there. It’s painful. That’s as painful as you thinking about what you’re not good at.

 

Yeah. Alright. Fair enough… I had one great question I wanted to ask you. Hang tight. What are you proud of stuff?

 

Grant Cardone: Well, I’m really proud of my kids, man. My kids are awesome. Like I’ve done a great job with my kids. I had them reading out of my books the other day and…

 

Rod Khleif: Nice.

 

Grant Cardone: I think I’ve been a decent role model for my kids. My marriage, I love my wife and I liked that I got her. I like how much money I’ve given to charity. I’ve given about $20 million of my own money to charities.

 

Rod Khleif: Wow, brother. Yeah. I fed 55,000 families over the last 17 years; greatest joy in my life.

 

Grant Cardone: Yeah.

 

Rod Khleif: That’s magnificent, brother.

 

Grant Cardone: Look, I never dreamed I’d actually be a millionaire. In the fact, that I’m gonna give a million dollars away this month.

 

Rod Khleif: Love it, man.

 

Grant Cardone: I’m really proud of my energy. I have tremendous amount of energy. Like I’ve somehow figured out how to create the energy without any kind of gimmicks. I don’t use drugs. I don’t use cold plunges, I heard a guy say the other day; he does a cold plunge so he can go from zero to 90. I’m like, “Dude, why the cold plunge?”

 

Rod Khleif: Cryotherapy is now the big thing, I know. Tony Robbins is big into that. Cold plunge. He does cold plunges as well.

 

Grant Cardone: Yeah. I can go from zero to 90 in freaking… Just thinking about it.

 

Rod Khleif: So where does the energy come from? Where does that passion come from?

 

Grant Cardone: Well, I create it. I know that I am the creator of the energy. I’m not looking for the energy from some external force.

 

Rod Khleif: What do you say to yourself? I mean are there things that you say to yourself; any internal dialogue that might help my listener?

 

Grant Cardone: “You need to go, bro. You need to go. You’re running our of time, son.”

 

Rod Khleif: Oh, wow. Okay.

 

Grant Cardone: “You need to roll.”

 

Rod Khleif: It’s urgency.

 

Grant Cardone: Look, I feel better when I’m working. People say work’s not everything. I say, “No. Work is everything if you wanna be happy.”

 

Rod Khleif: But you got to love what you do. Got to love what you do.

 

Grant Cardone: You can’t… If you’re not good at it you’re not gonna love it.

 

Rod Khleif: Right. And the alternative, if you don’t love it you’re not gonna be good at it.

 

Grant Cardone: This whole thing about… The guy you just mentioned, talked about… He says, “Love what you do and the money will follow.” I’m like, “Dude, that ain’t true.” I know a lot of people that love what they do and there ain’t no money following. You got to follow the money. Get you some money and I guarantee you’re gonna fall in love with what you’re doing.

 

Rod Khleif: Fair enough. Fair enough. Yeah. You can’t just love it. You actually have to take action.

 

Grant Cardone: Yeah. Yeah, because if you’re not being paid for it, like you’re not gonna love it after a while. You’re gonna hate everybody around you.

 

If you’re working 14, 15 hours a day and you’re going home and just barely making it, at some point, you’re gonna be like, “This is no fun.” It’d be like running a race in never getting a ribbon.

 

Rod Khleif: Right. Right… Alright. I got a thousands questions I could ask you…

 

Grant Cardone: We’ll so this again.

 

Rod Khleif: But I got to respect your time. I am so grateful to have you on the show, brother.

 

Tell us about Growth Con. You got this kick-ass event coming in Vegas. I’ve got to make it. I’ve got to get it on my calendar. It just looks killer. Tell my listeners about it, please.

 

Grant Cardone: Every year, I do a big conference. This conference, it’s turned into a really big thing now. It’s really for me to get around and collaborate with other great people. This goes back to the thing I said earlier about, I’m not a post. I can change the outcome of my life but I can’t do it by myself. I got to get around great people.

 

[00:50:01]

 

Rod Khleif: Team.

 

Grant Cardone: I have, by doing this conference I’m able to get billionaires to show up to this thing; people that have produced billions and billions from all types of industries.

 

Rod Khleif: Right.

 

Grant Cardone: Speaker list of 20 people coming in, men and women that we’re gonna spend three days with, talking about business expansion. This is not a motivational event. This is how do you scale your business out, whatever that business is; anybody that’s an entrepreneur.

 

It’s in Vegas, February 22nd to the 25th. You can get tickets for under a thousand bucks. It’s three days with me. I’m there all day everyday. I speak twice a today, and I interview every speaker.

 

Rod Khleif: Love it. Love it. I highly recommended it. I don’t endorse very many things on the show. Highly recommend it. Thanks for being on the show my friend. You’ve added tremendous value today.

 

Grant Cardone: Okay. Thanks a lot.

 

Rod Khleif: Absolutely. Take care.

 

Grant Cardone: Thanks, Rod.

 

 

 

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Thank you for listening to the Lifetime CashFlow Through Real Estate Investing Podcast. If you’ve enjoyed the show, please subscribe, and then take a moment to visit iTunes and leave a five star rating and review. For more resources to connect with us further, please visit our website at lifetimecashflowpodcast.com. Tune in next week for our next show.

 

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