Grant Cardone offers insights and advice to help the middle class break out and achieve true freedom in business, career and finance. Each week NY Times best selling author, self made multimillionaire entrepreneur and international sales expert Grant Cardone focuses on matters affecting the middle class. Whether it’s jobs and careers, finance, entrepreneurship, Grant’s real, raw in-your-face delivery serves as a wake up call for anyone ok with just being comfortable. The Cardone Zone is like no other business show presently on air. After one viewing you’ll be inspired to make success your duty, responsibility and obligation as you break free of the middle class and break into true freedom.
My proceeds from the PayPal acquisition were $180 million. I put $100 million in SpaceX, $70m in Tesla, and $10m in Solar City. I had to borrow money for rent. - Elon Musk
I think Grant gives good advice most of the time, but his advice about never buying a house is dead wrong.
There are certain times when it makes sense to rent, particularly if you are going to be moving again within 3-5 years or if you live in an area with a declining housing market. However, for people that are planning on living in the house (or condo, townhouse, etc) for at least the next 5 years, it is a complete waste of money to rent instead of buy. You will still have the same (or possibly higher) cost of housing if you rent. If that is the case, then why not own? If there is appreciation in the price, you benefit. Even if there is no appreciation in price, as long as you have anything other than an interest-only mortgage, you are building equity.
Your housing costs are your housing costs...do you want to throw away money?
@Grantcardone is on it with great info again!! This is why I want to buy more properties for investments.
And I'll buy your house!!
@grantcardone At what point can you "upgrade" your lifestyle when renting? I am currently renting a place for $1500/month, but would like to upgrade to something nicer. When can you justify the move up? Some of the nicer houses we are looking at are in the $2500/month range. Is that justifiable, or should you always try to keep your expenses low?
I also own 2 rentals right now that are cashflowing about $1,000/month and at some point I would like to put the money from those into a bigger apartment building. Would that be a better time to "upgrade" the house we are in? Once we have enough cashflow from an asset to pay for the nicer house?
I don't mind renting, I am trying to figure out at what point can you upgrade the house? And not be stupid about it.
I think the conversation is simple. In terms of finances, simply look at genuinely wealthy people and Im sure if you ask them how they became so wealthy, none will say "I went out and bought a house to live in". That is never a key step in working towards and achieving financial freedom.
From what I see, buying a home is really just an ego thing and it looks like people look for reasons and scenarios to justify doing it (e.g. its for my kids, my family, what if the house appreciates, what if I buy for lower than i can rent, what if i have low expenses, what if I can flip it for more money, etc, etc.) I had I guy say to me once, "Your not a man until you own land" Lol! now thats some ego for ya.
Buy house, just understand your chopping your legs off on your run towards wealth.
GRANT Cardone -ZONE: Love all you do... giving 120% 365 !
I agree 99% about NOT owning a house, but there are those that will never move and that is fine for them.
COOL... = Next.
So with that said, what's you take on buying a NEW car then, would that not be the same???
Why not buy a 2-3 year old car that still has factory warranty (when you need it)
for 20-30-40% less than MSRPrice and SAVE $20-$30,000 ???
Doug "F-en- Rich" FenRich
Invest in phase 2 (i do the work). 150 to 250k to start. What monthly (cash payment) return to make it worth an investors while? golden egg.
You can use 200k for an example, email me.
Probably I will be a guest someday to tell the amazing story. earlpattATgmail
I see in my case it is better to rent, as I can make money simple, thanks Grant!
I pay $3,000 a month for a place that is worth 400K. I make my landlord about 1K a month. South Florida rental market is crazy and interest rates are as low as they are gonna get. The question is will the housing market collapse along with the stock market. If you find a deal jump on it.
Eliminate your debt
You always forget to compare rising rents to fixed mortgages. I bought my house 4 years ago, I pay $1600 monthly. The house across the street from me just rented for $2800 month.
How do you account for that $1200 every month? Are you suggesting that I should increase my monthly housing cost? This seems fairly ridiculous to me.
Rents are rising faster than housing prices. A home is NOT and investment, but neither is living in a rental. We are merely talking about monthly housing costs.
@StrongHustle I agree this is something Grant always forgets to mention. If I live in an area where rents are steadily increasing, buying a house allows your to fix your monthly housing costs plus tap into some appreciation on the house over a 10 year period.
I would have to spend an extra 1-2k per month to rent my house for what my mortgage is. Not to mention over the next 10 years those rents will only increase. Also my house has increase 25% over the last 2-3 years.
Grant I would appreciate if you address this argument. You haven't addressed it yet and it's key exception to your reason why everyone should be a renter unless you have 20 million dollars in the bank.
Sooo true. Felt this way for a number of years. I find it tougher & tougher for me as Residential Mortgage Originator almost 10yrs. I don't even know what my pitch is anymore, it is tough to be in alignment. And I am a renter. Rethinking my positioning - gain greater expertise in 1031 exchanges, entity structures, hard money,.. I know residential lending/conventional inside out. Any insights expertise would be very welcome. @GrantCardone
awwww scraaaap! @GrantCardone put suze on notice!....dip!
"You should rent where you live and own what you can rent to others" by @GrantCardone excellent advice, I rent now and have been for the last 24 months, got out of my trap (house) and felt so good, now I'm nimble and go where opportunity calls... Awesome show G!
Thanks Grant Great Advice!
Live in Saskatchewan, Canada?
Settle Your Debt!
My wife hates to move around so renting is a nightmare. I own my house and don't have a mortgage and im only 30. Selling would only be good to make a profit off my house
Amen to the info you shared in this show! Listened to others and we bought. We are now selling. We since moved into a Dream Home - annual lease / rental. We're living in our dream location on the beach in FL and I don't have headaches and it's actually a good investment of my money - because I'm saving in the longterm and I don't have to spend $1M+ to live on the beach!
-Aaron DeWinter sparkisfreedom.com/opportunity
We are proof of what you are saying Bro GC! 2 and a half years ago we were living in TX, loving it! We had our house in SC rented but had to move back to take care of it!
My wife and I have a home and I run my guitar teaching business out of the studio in the basement. It's allowed me to pass 6 figures in my business, is this an acceptable situation to hang onto the home until I can get out and start renting commercial property to grow the business even more?
I like your ways, however, following your thinking one can say:
"why should I have a car, suitcase, computer, phone, clothes or anything at all... WHEN I CAN RENT IT AND CONSTANTLY PAY FOR IT?"
@SuperSci Plus a CPU is a different asset that works differently. A CPU can be depreciated as a business expense, costs no-where near as much, and once fully depreciated can be given to a family member to lease it back to you again as a business expense once again. As @GrantCardone, increase your skills till they are sick so you understand different assets. He's right on with houses though...dont sign up for 15 years of pain that leaves you un-mobile!
So you're saying...I should save $3,000/mo for 50 years, buy a complex, and bring in income from that? C'mon son...
@Natasha85 i don't think i said that....so can't imagine you heard that - except that you already had fixed ideas
Grant, you Rock brotha. Love what your doing for entrepreneurs.. Do you drink Coffee?? (I know you do everyday.. starbucks crap) What If I could provide you with the healthiest cup of coffee in the WORLD..Good for your health and all those you know.. Contact me and I'll send you out some for Free.. Taste test it.. look me up on fb or www.connect2ray.com Make it a great day all...
@RayRodriguez1 send me some...
Grant, are you HIGH? LMAO I need some of that....nothing wrong with cleaning your house yourself! LOL
@Natasha85 if you want to ....nothing wrong with having someone else clean it for you either..
@GrantCardone THANK YOU for answering our questions.. BLESSINGS to you and all the real 10X Family!! Stay Hustling everyday.
@AlSpencer i negotiated with them for three years and then paid them off...
Thanks for sharing. I just got out of the red from 2008. I lost two businesses, a rental property and acquired alot of business debt. Im looking forward to getting into your university but I can't get a response back from one of your guys. We discussed the monthly payment but never was sent the link. Hope the offer isn't over.
Anyway, thanks for all you do uncle G!
My income goal has been 10x for 2016.
GC - I own a condo in Chicago that Im renting making about $700/month (about 60k in equity) and now living in Wesley Chapel FL. Should I sell the condo? Do what with the $$? pay off debt? invest in what?
Grant - What should someone look for in a monthly positive cash flow in any deal - break even - 100's 1000's ?
If everybody waited to pay cash for a house, hardly anyone would have a house! Lol Now you're bringing up buying a business instead of a house....what happens if the business fails? I would not put all my eggs into buying a business! I, myself, have started a business (www.LocalFashionFind.com) and have big plans for this bringing in PLENTY of income. I am using my tech skills for this business, not $1 have I put into this business. All IT skills and free software. I have another business as well (www.29thAndCouture.com) Anybody need SHOES? :-D Again, DO NOT SPEND a crap load of money on starting a business.