Accumulating Massive Wealth in Real Estate
Multi-family real estate is an extremely lucrative space. You may have heard people talking about real estate, but those in multi-family are seeing more success than any other sector. Have you thought about the idea of getting involved, but feel unsure about what to do, how to do it, and where to look for a deal? You’re not alone. A lack of knowledge prevents many people from ever taking action on the best way to accumulate massive wealth.
Each Monday at 12 noon EST on GrantCardoneTV I do a real estate show to answer your questions and detail all of my deals so you can learn directly from the actions I take. Today, I want to give you some tips extra tips from my Real Estate Show.
1. Don’t Use Just One Criteria
I know many people have certain criteria when they search for real estate deals, such as the deal must have 8% cap rate, or that each unit has to be under $150,000 or they won’t consider the deal. I don’t use any specific thing to tell me whether to go into a deal or not, and neither should you, because there are many factors that go into choosing a deal.
2. Never Trust Pro Formas
A broker might tell you the pro forma assumes 3% rent increases a year. Pro forma is about the future, but he doesn’t have a crystal ball! If you think it, then you don’t know it. If you are into astrology, don’t do real estate. You’ll need every zodiac sign for it to work for you. My advice to you is to not even look at the pro forma because it’s deception. Never assume rent increases when you do your numbers.
3. Use This Location Hack
I can tell you right now that buying in the hood is going to give you headaches. It’s very important to consider the location for renting properties because you have to manage and maintain the place. The location of your property is a big part of being able to exit. Neighborhoods come and go, but you want to be in an up and coming location. My hack is to look for an area with a Whole Foods nearby.
4. The Phone is Your Friend
There is not one single “No-Money-Down” course that will teach you to make cold calls all day to people who own properties. Let’s say you call on someone who has owned 12 or 18 units for a long time. Your job is to knock on their door and tell them you want to buy their property. You will have to offer them a premium. Maybe the property is worth $500K. You offer $600K but give him that premium in the future. If they are putting up the credit and the money they will want 50% of the deal, but 50% of $500,000 is better than 100 percent of nothing.
You need to look at 100 deals to find two that you love and are willing to buy.
Multi-family real estate is a better deal than the stock market. Guessing the right stocks and flipping houses is like a casino. You can pick a winner but can you duplicate it over and over again?
The bottom line is that you can’t create a dream life without passive flows of income. Visit Cardone Capital to find out how you can invest with me in my next deal.
P.S. If you don’t have enough capital to get started in real estate, get my Millionaire Booklet for FREE.
Grant Cardone is a New York Times bestselling author, the #1 sales trainer in the world, and an internationally renowned speaker on leadership, real estate investing, entrepreneurship, social media, and finance. His 5 privately held companies have annual revenues exceeding $100 million. Forbes named Mr. Cardone #1 of the “25 Marketing Influencers to Watch in 2017”. Grant’s straight-shooting viewpoints on the economy, the middle class, and business have made him a valuable resource for media seeking commentary and insights on real topics that matter. He regularly appears on Fox News, Fox Business, CNBC, and MSNBC, and writes for Forbes, Success Magazine, Business Insider, Entrepreneur.com, and the Huffington Post. He urges his followers and clients to make success their duty, responsibility, and obligation. He currently resides in South Florida with his wife and two daughters.