Grant Cardone’s latest book How to Create Wealth Investing in Real Estate teaches you very fundamental principles of how to succeed in real estate, how to avoid the common mistakes & faulty thinking that most people have towards real estate investing, and sound strategies on how people with no degree or business background can follow what Grant has to teach and turn their life around financially.
First of all let me just say that I’ve been a big fan of Grant Cardone for years, as an entrepreneur myself, I find his on-going content on youtube & other social media platforms invaluable. My favorite tho I gotta say is his 10X Rule Audiobook.
In this review, I’ll go over what my key takeaways were from this book.
Why my online lead generation business is very similar to real estate investing except its all virtual, more on that later.
& Why I believe most people should be investing in developing their high-income skills first before they jump into real estate investing.
Remember by the time Grant did his first deal, he already developed several high-income skill as a top sales guy, closer & sales trainer for car dealerships.
High-income skill is any skill that makes $10K per month or more. If you’re not there yet, I highly recommend going through a coaching program like local lead gen that’s gonna allow you to build that financial confidence first, what’s great about lead gen biz is that it creates passive income flows just like real estate but without the super high upfront costs.
Grant’s first real estate investment was a single family home when he was 33 years old, he figured out how to get a basic house loan, told the bank he was gonna live in it even tho he knew he wasn’t.
He was impressed with it.
Got it rented right away, rent was $750 and Grant was paying around $620 so he was making $130 per month on it.
Everything was going good the first 6 months, till they moved out.
Lost all his gains in 3 months, put it up for sale, and luckily got out of that deal before it was too late.
Grant realized quickly that single family homes are disasters waiting to happen.
3 years later he bought multi-family apartment with 32 units in Houston, after many weeks of going out every weekend looking for deals.
He says he probably looked at 500 different apartment deals in those 3 years.
He put $350K down on that first deal.
That’s how he started now his real estate portfolio is very high level.
What Grant Looks for when looking to invest in Real Estate
- great location
- hard to replace
- what he has to pay for is not his concern
- he is willing to pay up to get that hard to replace location real estate
What Grant says over and over again is that most people make the mistake of having a budget when investing in real estate which completely limits you from finding a piece of property that has a lot more value / potential for you.
So in order to play this game you need to up your income producing abilities and saving money strategies.
This is why I’m a believer of investing in yourself first in developing your high-income skillsets before you began investing in real estate.
In 2020 there’s tremendous potential in developing online marketing skills for small businesses, I’m all about doing lead generation with free traffic.
Why work with small business owners?
Because they’ve got the money.
Grant’s famous quote: “Who’s got my money?”
Grant’s Saving Strategy So You Can Do The Big Deals
This is how Grant saves his money.
Every month, he’ll take the total of what he made, for sake of illustration, lets say $100K
40% goes to the IRS
40% goes into his sacred savings account (stockpiling cash to invest later into big deals)
Which leaves him 20% to live off of, in this example it would be $20k per month to live on.
When he’s got enough saved up in his sacred bank account, he’ll go big on a deal.
Repeat the process over and over again, pretty soon you’re building a huge real estate portfolio.
What’s the missing piece for most people though?
You need high-income skills.
A high income skill is any skill that allows you to make at least $10K per month.
Grant’s high-income skill?
- Public Speaking
Yes you’re still trading in time for dollars but its okay, you’re trading in time for high-dollars.
This gives you stability and ability to save up significant money over time to put into high-return investments.
What I like about Grant Cardone’s How to create Wealth Investing in Real Estate is that its filled with personal stories that teaches you valuable lessons in real estate some of which were very costly mistakes that Grant has made in his career, so you don’t have to make the same mistakes.
His biggest, most costly mistake was when he was surrounded by other people that were telling him that he was doing really good in life and not around enough people that would tell him how much more he could be doing.
He took a breather from continually investing in big deals and that little pause that he took he says was the most costly mistake in his entire career when he should’ve kept investing.
I’m currently stockpiling cash myself so I can go in on a big deal with my mentor / business partner Dan.
In 2020, he’s invested in pretty big real estate deals.
Dan was the one that actually taught me the lead generation business model, which we call virtual real estate where we build simple websites that rank at the top of the search engines and generate leads for small businesses that we choose to work with.
Because we own these virtual properties, we have full control over which business owner we work with and if they don’t pay up we can easily forward the leads to someone else just like kicking out a bad tenant.
I started this virtual real estate business in 2014, I have sites that’s been paying me $750 to $2000 per month since then and I haven’t touched these sites in years. I’m continually getting paid on auto-pilot because my clients know that if they don’t pay me every month for the leads, I can choose to begin working with someone else.
And my clients are more than happy to pay me because they’re getting more customers than they’ve ever had before, so its truly a win-win relationship.
These lead gen sites have upgraded my lifestyle in every way and it has allowed to reach a high 6 figure income level that’s allowing me to save some significant capital every month to eventually get into big multi-family real estate deals with my partner Dan.
If you’re still nowhere near being able to invest $200K or more down for a piece of property, then I recommend investing in yourself first so that you can develop & grow your income producing capabilities.
Click here for the lead gen coaching program, imo the best high-income producing skill on the internet. The ability to produce leads or customers for others using free traffic.