Grant Cardone, successful entrepreneur, best selling author and real estate investor shares the secrets to multifamily investing. For over 25 years Grant Cardone has been investing in multifamily real estate. He believes the America is becoming a renter’s nation offering a great opportunity to create additional income. Grant offers so many helpful details and announces a new show where he will take an even deeper dive into the many things associated with multifamily properties. In this episode Grant discusses the reason one should invest in apartments:

Why to invest in multifamily real estate:
1. Preserve capital.
2. Protect yourself long-term.
3. Multiple flows of income.
4. Leverage (debt vs. money down)
5. Expenses paid by others.

He also offers concise definitions of terminology associated with multifamily investing such as Cap Rate, Price Per Unit, Pro Forma, Trailing 12 and Debt Coverage Ratio (DCR). Grant underscores that it is incredibly important one understands all that is involved so they can have the certainty and courage to pull the trigger. He suggests starting where you live, where you can go see units and understand the area. This episode of Cardone Zone sets up a new show that Grant will do on Whatever It Takes Network focusing on creating wealth through multifamily investing. If you’re wondering how you can get started tune in.

46 comments
kuroe702
kuroe702

Mr Cardone, I was so inspired by you recently, I sold my big house in Redmond, WA for 960k I have a steady income that pays the bill. So I'm going to get all that cash for investment while I rent where I live with my family! 
The areas I know that's good and hot right now are really expensive and very few for sell. I saw one that's in Seattle
http://www.loopnet.com/Listing/19907499/9050-15th-Ave-NW-Seattle-WA/

I don't have enough cash to buy it out but you said it's not a good idea anyways, in your opinion is it a good investment?
Thank you so much for your time!

Max Charron
Max Charron

Love that one Grant. I live in Vancouver, BC and the market has been totally insane in the past 6 months. The video is from 2014 and is bang on on 80% foreign investors right now in Canada hottest markets (Vancouver and Toronto). The money in mainly from mainland China and it is getting very hard to compete when the average single family is at the $2M mark and $650k for a condo. 

Moses Maximov
Moses Maximov

Love it Love it Love it. Thank you so much Mr. Grant Cardone for this knowledge.
I appreciate that you share your life experience. I took a lot of notes, i'm all inspired, and know doing my homework for my future Real Estate Deals. Thanks a lot. 
@moses_maximov - Twitter, Instagram, and YouTube. 

GC jr
GC jr

Grant what are you referring to when you say factor rate of .06?

ChristianRamirez3
ChristianRamirez3

Grant! My man you are on fire with these shows! You are an inspiration for those after the American Dream and a better life. Thank you sir you are truly unique. I'll be sending my video soon and working with you. 


Takeaways: Preserve capital, Leverage, Multiple Flows, Passive Income 

The Shepherd
The Shepherd

If any one is interested in buying, building or investing in multifamily units and would like to tap into the riches of the Fargo, North Dakota market let me know.


Nic

218-766-4449

3hourhomebuyers@gmail.com

Chris M Cordova
Chris M Cordova

Hey Grant,


I know your not a CPA and you will advise to consult with our tax professional, and yes I will invest at my own risk but I was just curious.. What state did you build your entity in to invest in buy/hold real estate ( nevada- new mexico- wyoming), what type (LLC, S-Sorp)  and why?

jmoffet
jmoffet

When is the next apartment show coming? "Once per month"? This was in November. This stuff is GOLD!!!

JesseShelby
JesseShelby

Excellent!  When's the next apartment episode?  Looking to get my first deal under contract and want that 'complete understanding of multifamily'!!!  Thanks @GrantCardone 

Jeff Beal
Jeff Beal

When will be the next show on Buying Real Estate? 


Delia De Jesus
Delia De Jesus

What is meant by Reserve Met on an apartment complex?

Delia De Jesus
Delia De Jesus

I started learning about apartment buying back in 2001. I began by reading books on how to buy apartment buildings. I also went to a seminar on Real Estate investments. There was too much I did not understand nor did I have anyone to teach me to do it right. Now I feel like the time is right and I can learn with someone who has already done it .... I'm looking forward to learning how to do it right. I took lots of notes....

GS
GS

Grant,


If you were going to buy your first property ever and would like to buy multi-family real estate, but also live in it for the first year, how would you use the FHA loan to your advantage? For example if I put $30K down and bought a property for $120K and the deal made sense, would it be smarter to put that same $30K down as 3.5% for an FHA loan on a $900,000K property with more units if that deal makes sense too?


Thanks!!


Geoff

FJR
FJR

@GS  With FHA you would be buying a 1-4 unit property.  I'm not sure where you live but you probably wouldn't be buying a 900K property.  If you only have 30K to play with do not get in over your head.  Sh*t happens owning properties and you will drown without cash.  


If you plan on living in a unit, because your are financing with FHA, then I would find a clean 2-4 unit property.  I invest in central california.


Frank

FJR
FJR

I haven't jumped to the large apartment.  I bought enough single family homes and condos to get out of the rat race.  If you are buying property make sure you listen to someone that owns real estate.  Most agents don't even own a primary residence.  Trust someone to watch your kids that has grown well behaved adults.

carlaval
carlaval

Hi,

Love your show!!!

I live in paris and the real estate is so high impossible for me to buy multi family even in the suburb.

Do you think i should look for an investment in canada or US?

RichUrban
RichUrban

If you decide to buy something in the US, feel free to contact me. We always have great deals on multifamily property in Florida.

Rich Urban

[email protected]

andyrodie
andyrodie

@RichUrban Hi Rich, will reach out to you, I am interested in the Florida market. 

drtimoconnor
drtimoconnor

1. preserve capital

2. protect yourself & your business

3. create multiple flows of income

4. leverage

5. debt paid by others

6. expenses paid by others

7. income

Clint Bex
Clint Bex

What are your thoughts on buying in more rural areas where the prices are cheaper and less competition from a rental market standpoint?

GrantCardone
GrantCardone

@Clint Bex the more population the more you are protected long term....don't go so rural that home buying is cheaper


Beachfeet
Beachfeet

If the money is not the issue, what is the best wat to find these Apt. Deals?

StanSK
StanSK

wou!!! best show you have done Grant :) 

thank you

Jeff Beal
Jeff Beal

Grant - Great show! Thank you for adding real estate segments to the CZ. Can't wait until the next one. BTW - Loved Sell or Be Sold and 10X Rule. I re-listen to them both weekly. #10XLevel

iamjeffthornton
iamjeffthornton

Fantastic episode @GrantCardone !! I've been looking into the Southwest markets Arizona, New Mexico, Utah, Nevada since we spoke in Mexico. Still new to this, but I want to say THANK YOU for all the valuable content and knowledge! 


@iamjeffthornton

brettjcoffey
brettjcoffey

Question you said buy in your own back yard - real estate in Vancouver is over the top single family average 700k so anything multi-family would be nuts.  How would you or where would you go if you wanted to buy in the USA - 238k for a 8plex what a joke you can't get anything in BC for that. Thanks for this - looking forward to hearing more.


Brett

brettjcoffey
brettjcoffey

Loving this show - Interesting being from Vancouver Canada to hear we are the number one real estate investors outside of the USA. My 12 year old son just signed up to be on WIT nation - his goal is to be making 5000 passive income by the time he is 24 through real estate. Love it!!!

peterbolandcorp
peterbolandcorp

hey Grant, thanks for all the info. Im looking at buying my first one now. I know your writing a book, but in the meantime can you suggest one that goes over all the terms you covered in the video, and has amazing advice.




Stu Eazy
Stu Eazy

Thank you for doing this show and thank you for allowing me to post a question. I understand using CAP rate at time of purchase but isn't it a somewhat artificial number in that if the value goes up the CAP rate goes down? Would it not make sense to use NOI ÷ down payment to have a more accurate ROI ? Just wondering, thank you again, Stu Eazy

RichUrban
RichUrban

Stu..The cap rate would only change if the rental rates in the area changed or if your management costs changed.

Rich Urban

www.southfloridainvestors.com

Stu Eazy
Stu Eazy

Rich...thank you for your comment, it's much appreciated.

AlanCiechalski
AlanCiechalski

Hey @GrantCardone did you have any doubts in your ability to manage such huge property when you were buying your first units? 1.9M investment must feel quite scary if you do it for the first time. You really have to have guts :)

SheriSuccess
SheriSuccess moderator

Finally someone explaining how to buy apartments! @GrantCardone #whateverittakesnetwork 305 865 8668

DavidRealtorCT
DavidRealtorCT

OK, Once my client decide the numbers match and he is getting investment a month, then i attack the price so he can get this property for less which will translate to more money a month.sorry for getting cut short.

75% of my clients buy properties cash. i advice everyone its a mistake taking a home with 0 down.

Dave

Bonieky
Bonieky

How much is necessary to begin investing in apartments? I have one apartment that worth 100k that i live in... I'm trying to move from another city but i'll have to rent the place in the new city... what do i do? Is it worth it?

MrIsaacTrevino
MrIsaacTrevino

I have been waiting for this show! I'm so happy you're going to do a real estate show every month! @GrantCardone 

michelle10xlife
michelle10xlife

How do you invest if you have bitch money? What does an outside person do with 100k?