The Entrepreneur DNA - From Struggles to Success, Financial Wisdom, and Predictions for the Real Estate Market | Grant Cardone | EP1

Episode Date: January 3, 2024

In this engaging discussion, Grant Cardone and I share our entrepreneurial journeys, emphasizing early struggles and the importance of relentless self-improvement. Cardone attributes his success to studying influential figures like Douglas Edwards and Zig Ziglar. The conversation delves into topics such as credit card use, education choices, and overcoming financial challenges. We share insights on entrepreneurship, risk-taking, and career growth, drawing from personal experiences in car sales, real estate, and managing financial struggles. Our discussion culminates in predictions for the real estate market, including insights on debt, potential market corrections, and strategies for successful investing. The title captures the essence of their dialogue, encapsulating the evolution from adversity to triumph, coupled with valuable financial insights and foresight into the real estate landscape.

What's up guys, welcome back to the Entrepreneur DNA. As you can see, very special guest in the house today. Make sure to stay tuned for Grant Cardone. We were just talking about the first time we met, do you remember down in Arizona? Kent Clothier's Scala's Gate? Yeah, that was years ago, man. South. Six years ago.

South Phoenix, yeah, we're doing that deal. Let's talk to the entrepreneurs out there that, how many brands do you own? How many companies do you own right now? Everyone knows Grant Cardone, the real estate guy. Yeah, there's, I don't know, 20, 22 companies. Man, that's impressive. Yeah. Now it wasn't always that way, right?

No, no, man, it was, in the beginning it was, I didn't, look, I'd never heard the word entrepreneur. I didn't, I didn't, I ever want to be a boss. I never thought, oh, I got to work for myself. I was a sales guy in a sales role that I didn't want. I didn't want any of that. Yeah. So I was-

That was car sales, right? Yeah, but it could have been anything. Could have been furniture. Whatever the job I would have had at that time is what I would have done. If it was a McDonald's, I didn't have a choice. I got to the point in my life where I was at the end of the road. I didn't have any money. My credit was destroyed. My reputation was worse than my credit. And nobody in the community trusted me. I didn't trust myself. And so I was like a very broken individual. A lot of people don't know that part of that story. They just see the, they see the

life now. Right. And, um, and I, I was in a sales job, the company's elected to keep me. They said, look, we'll give you one chance, last chance. And, um, I didn't like sales, but I just put my head down, man. I said, okay, I'm gonna to learn the game. I started studying all the greats. Sure. Anything I could consume on. Who was the guy? Douglas Edwards. Edward Douglas.

Okay. Just remembered his name out of nowhere, but he's a phenomenal sales guy. Zig Ziglar was selling for Hudson door to door. Yeah. And so I became intrigued with this world of self-help and learning and education. And it lit me up, dude. It inspired me. There was a car sales guy.

I said, who's the best car salesman? And there was this guy that was basically an educator. Yeah. And he was going around doing workshops. I never attended one of his live workshops, but I got his tapes. Big set of tapes. And I paid, what did I pay for those? Three grand. I had to borrow the money from my mom.

There you go, $500. And went to my mom and said, look, I will not let you down. I know I have in the past, screwed up everything. Just lend me this money. It's going to make me a good salesman. And she's like, you went to college. You have an accounting degree. You shouldn't a good salesman. And she's like, you went to college, you have an accounting degree, you shouldn't be a salesman. I said, look, I don't wanna be an accountant, they're gonna know to tell you. So just lend me the money, I'll pay you back. I paid her back 30 days after I bought them.

Good for you. So that's when I tell people when I'm selling stuff and I tell people, I put it on my credit card and they're like, oh, he's just a hard sale. I'm just telling you what I did. Well, credit card, let's get, listen, credit cards I think are the biggest advantage we could use as entrepreneurs.

I put all my marketing, I mean, how much do you spend on credit cards every single month for marketing for your education companies? I mean, I don't know. A lot. Do I spend? A ton. Yeah, I mean, I use the credit card just as a place to store that I did the activity.

That's it. So it's accounting reasons, it's points reasons. Listen, you can buy a lot with millions of points. You can travel the world on millions of points. You can buy luxury items with millions of points. So if you're spending money anyways, credit cards should be utilized. I think a lot of people hate debt

and we can get into that a little bit. Well, I just hated being broke and poor and not feeling good about myself, 25. That's what I hated. So I couldn't get debt because I had my credit cards taken from me. I wasn't paying my rent at the time. So me getting credit was not a choice.

I had to go to my mom, which was harder, by the way, than getting a Visa card. Bro. Going to her and saying, hey, can you please lend me? I'm a grown man, 25 years old. Just lend me three grand.

Paid her back. I got on those tapes, dude. Like I'd listen to those things a thousand times. I'd wake up in the morning, watch the tapes. I'd watch them and I'd just watch this guy. I can do that. I'd repeat after him. Like if anybody really,

like I wish I would have videoed all that because here I am like eating this material. Adopting this guy's Southern accent, his like the way he draw words out, his silent pauses, like the way he tell a joke, smile. I was studying everything about this guy. Probably the way the ballplayers do, you know, I see ballplayers on the sidelines studying the tape, right?

So that's what I did. And then next thing you know, I started making sales. And then a little longer, and I kept studying. I didn't like, I see a lot of people, they learn something and then they put it away. Yeah. Like they got it. I didn't, man.

I just went hard on it. And then I started sharing it with other people. And when I shared it with other people, I got a real understanding of it. And that's probably why, you know, when I'm 25, I came out of a treatment center for drug addiction, had no clue what I was doing or where I was going.

And looking back now, the ugliest, terrible, worst part of my life was actually the door. Yeah, that was it. I was walking through the door of my future and didn't know it. But you started young. If we're being honest, man, I tricked off my 20s. I tricked off most of my 30s.

I'm 42. I didn't get married till I was 39. Yeah. Right? And so what I'm saying is you may have went through that dark period in early 20s, but even by 25, that's young in today's standards to come to the realization that you did to start the studying, to start the education, to start the believing and start going. In my opinion, you may have felt like you wasted some of your life.

No, I did, definitely. Yeah, but bro, at 25 for you to see that light, you know what I mean? 35 year olds are out there still doing the same shit you were doing when you were 22. I don't know, man. But next time I'm coming back, I'm getting this shit done at 12.

Because I could have, by the way. If I would have been in an environment like my kids are, if I wouldn't have been forced to go to school for 17 years, and if everybody wouldn't have been pushing the school agenda, you got to go to school, you got to go to school, you got to learn school, you got to get, like if somebody had said, like today,

I see a lot of kids are like, I don't need to do school, dude. I can go do this YouTube thing. I can learn AI, I can learn video, content creation. If I'd have had another place to go. Totally. And if I would have had other examples like are out there today, like I see guys doing the flipping.

If I would have seen people at 15 or 16, 17 years old, because my dad was going at 10, I was looking for mentorship. That's right. And when the drug dealer came around he says hey this is what i do i'm like okay i would have taken anything you could have been raking leaves knocking on doors anybody would offer me any opportunity at 15 16 years old i was like show me the opportunity that's what i was really looking for so i think i mean i hear

what you're saying about me starting you know getting done at 25, but- For sure. There was no reason to waste- Even that much time. 15 to 25. I could have been hustling at 15. You homeschool your kids? Today we do, yeah. So I have a three-year-old that you know. We're starting to talk about that.

We live in Miami, right? And so obviously Miami is a crazy city in general. Society is nuts. I think we can agree on that. Well, what advice do you tell your kids about education? Because you have an education platform that's massive. I have one and we have many friends that have them. Do you advise, hey, go the journey you believe in, or do you say, let's go to the school system? Well, we took them out of school.

So we could spend more time with them. And we had them in a monastery school here in Miami. Then we put them in a private school, Country Date. I try to forget the name because it was so expensive and so useless. And we took them out of that school, bro. They got better immediately. Yeah. They were starting to have problems. They were starting to show signs that we're like, where's this coming from?

It was coming from school, the other kids. And I'm not saying the other kids are bad. I'm just saying we don't know what the other kids are up to. You know, they're on Snapchat and TikTok. And my kids watch that stuff, but like they couldn't get away. We saw a change. We took them out of the school system. We were scared like anybody that's going to go to school.

We're like, oh my God, this is going to be a huge responsibility. It has not been hard to do. It has been one of the best decisions we ever made. I go home. I go home today at noon. The kids are there. I go home at four. They're there. I go, they're there. I don't have to get them, spend 45 minutes driving them off to school, get them to the garbage dump, the prison, and have them taught stuff that doesn't matter. So we homeschool. They do it on a computer, they do it on a Zoom call and both of them have A's.

They spend about maybe 15 hours to school a week. And you just champion whatever direction they want to go into. And then the rest of the time it's us, right? What do we want to teach them? Like giving them this dog this weekend. I'm going to give them a dog, but I'm going to be like, okay, you guys want- You have a response.

You want an idiot or you want a well-trained dog? You want somebody you said, first two weeks is everything to this dog. Like just practice the discipline for two weeks and you're gonna have the dog you want for many years. Amen. And everybody won't say, oh God, let's not go to their house and that idiot dog,

you know, barking at their feet. I love it. Let's go back to your point about borrowing three grand from your mom. Yeah. We have a similar story. I wasn't your age and it wasn't my mom, but I was broke, busted, and disgusted. I lost my home to foreclosure. Ripple man took my car. I was living on a couch. Wow. After being a realtor back in 2007. Wow. Making a lot of money, spending a lot of money. When it crashed, I had no skillset. I didn't have a mentor. I didn't have a coach. I didn't have any skillset to rely on. So I crashed, but I understand being resourceful. I had no money, but I borrowed $25,000 from my first coach, from a friend,

by the way. So you talk about your mom. I had to go to a buddy. Hey, baller, you got to trust me. I got this. I'm going to make it. Let's talk about being resourceful and the money it takes to get into entrepreneurship. Business, you own multiple businesses. How do you view money right now? How do you look at financing? Do you borrow money? Do you use your own capital? How do we talk about money right now in the world that we live in? Well, let me just go back to when I was a sales guy from 25 to 29, I did not want to be the owner. I was not thinking about being the manager. I wasn't thinking about being the boss. I never thought about being the entrepreneur.

I had zero interest in being the guy. Yeah. I wasn't even thinking about like, like I wasn't thinking about this version of myself. Okay. Running people and having thousand employees. You're just trying to get some money. Dude, I'm just- You wanna pay your bills.

Actually, all I was trying to do right then, I was actually happy with what I was doing because I was so damn good. I got great at it. Yeah. I wasn't good at it. I got great. I studied and I practiced. I'm like, man, I know how to make the shots.

There you go. So I wasn't thinking about owning the team. I was thinking about just being a good player. Yeah. And I got fired. So he thinks I quit and yeah and i got fired so he he thinks i quit and i think i got fired but dude it's something in between there happened sure there they went out of business to uh within uh nine months after you got fired he had two car dealerships i was so productive dude like i was i was doing what other people would do. It would take four and five people to do the kind of production I do.

And I mean, I truly understood my craft. And I was educating other people how to do it. So one day he walks in and said, I said, hey, man, this guy's stealing from you. And he said, mind your own business. And I took that to mean, you're fired. So I went over there and got my shit like any diva would and then packed up my boxes in my shit and put it in my car and drove home.

That's it. I'm like, fuck. And then I got home, I'm like, fuck, I ain't got a job. Yeah. And I'm like, I gotta get a job. So I called this guy in Chicago and I said, hey, are you hiring? He's like, I'd hire you in a second.

And he was an educator. And then this other car dealership in Baton's like, I'd hire you in a second. And he was an educator. And then this other car dealership in Baton Rouge said, we'd hire you as a manager. That's right, because you were in Louisiana, right? Yeah, yeah, in Lake Charles, Louisiana. I went to my priest, Charlie Dubois, and I said, Charlie, man, I got two choices. I go, I either go work for this guy in Chicago or I go be a manager in a car dealership.

And he's like, he put it on the board. This guy was very, like, everything was a sign of the cross. He put a big cross on the board. And then he put, okay, which one are you most scared of, right? I said, oh, dude, going to Chicago is freaking terrifying. He's like, this is the one you must do. Bless. Young man, go forth. That's it.

Okay. And so, and I did, dude. I called the guy and said i'll take the job yeah went up there negotiated the job and next thing you know i'm traveling all across the country uh teaching people but i didn't again i wasn't thinking about owning the company became the top producer in that company uh went to him and said hey bro i need something else like like nobody does what i do here like i started started growing my, my, my, my, my confidence and my resume. I was starting to repair myself as a human being. Remember just

five or six years before this dude, I thought I was a useless. I mean, I didn't think for sure. I didn't, wasn't a hundred percent convinced I was useless, but I was down there at the bottom. Yeah. And now I'm starting to be like, bro, I got some skill. Five years later. And now I'm selling car dealers. I'm selling car dealers education. Okay.

And I wasn't selling, this is not the day of selling entrepreneurs. Yeah. We're not doing masterminds and boot camps. That's right. Nobody knows me. I don't have a name. I'm cold calling people and I'm racking it.

I'm making, at that time I was probably making 150 grand a year. That's a boatload. Big money. I'm making, at that time I was probably making 150 grand a year. Which is big money. Yeah, yeah. This is big money. You're 30 at that point. Yeah, this is 35 years ago. So this is probably, you know, 400 grand a year.

I was gonna say four or 500 grand a year. Yeah, for sure. And I'm buying real estate. Like I'm coming home and boom, I buy a real estate deal and I just- You were buying it then. Cause we all know what you do now. Yeah, this is, well, this is, yeah,

I start playing the real estate game. I started studying the real estate game. So long story short, I wasn't thinking about owning the company, went to the guy and said, hey, bro, you got to pay me more money. Like, you're paying John, I think the guy's name was John or something,

the same money you're paying me and I'm 10 times more productive. Like, this is crazy. And the guy's name was John or something, the same money you're paying me, and I'm 10 times more productive. Like this is crazy. And the guy agreed to it. And I'm like, shit, how can he even pay me this much money? And he couldn't. So basically the guy promised me something he couldn't deliver on.

The deal blew up. Cause he wasn't a good businessman. He was a genius, brilliant guy. Sorry to take a long story on this, but I've never told this story. But he was a genius, brilliant guy. Sorry to take a long story on this, but I've never told this story. But he was a brilliant, brilliant speaker, but he was a terrible business man. And he had a gambling problem and alcohol problems.

Not ideal. But a super good dude and super, super talented. And so I left him, moved back to Lake Charles, Louisiana, lived with my mom. I'm 30 years old, 29, yeah, 30 years old. And I'm like, man, what am I gonna do? And started making some phone calls. I didn't call any of his clients.

None of the people that I had worked for for him would I contact because they were his clients. Yeah, that's right. And I thought that was the right thing to do, not go scarf his business. That's right. And told him, I said, I will never, and keep, and not only that, I didn't educate, I didn't use his business. That's right. And told him, I said, I will never. And not only that, I didn't educate.

I didn't use his material. You know how everybody knocks off everybody's material? Oh, for sure. I wouldn't even use his material. Crazy. And so I think that that helped me because I had to go create my own material. And then I started pitching it. And people started digging it. And it was called information-assisted selling.

And the next thing you know, I'm a boss. Like I had no, like I just want to tell all the guys and gals out there, like I wasn't thinking about I got to be the boss. I didn't want to be a boss. I wanted money. I didn't want to be an entrepreneur. I wanted money.

I wanted stable income. I didn't want to be rich. I wasn't thinking about yachts and planes and helicopters and watches. I wasn't thinking about cashflow. I wasn't thinking about yachts and planes and helicopters and watches and no, none of that. I wasn't thinking about cashflow. I wasn't doing, none of this persona thing that's been created. Sure.

Some of which by the way, we just jump on because it bothers people. Johnny's like, do this again. They like that shit. Get on the front seat of the car. Most of that shit's not even my idea. Right, right. I'm not sitting on the front of the hood of my car.

No. Like for you guys on Instagram that might not know this, okay? I don't actually sit on the top of my plane. That's right. That was for a fucking book. That's right. So, and that wasn't my idea. I did not want to use that book cover.

The book, the freaking publisher did. The investor be average. So, so anyway, a long story. Next thing you know, dude, I'm the boss.

I have no clue how to be able. Now I looked up the word entrepreneur and notch. It says, and all I was doing, I wasn't taking any risks. Yeah. Zero risk, which is not the definition of an entrepreneur.

You could be a boss and not be an entrepreneur. That's true. You could be a manager, not be a boss. You could, you could be the CEO of the company. You could be a boss and not be an entrepreneur. That's true. You could be a manager and not be a boss. You could be the CEO of the company and still not be the boss or the entrepreneur. Yeah. And maybe you could be the CEO and not be a decision maker. So I think a lot of people think, all this is wrapped up into one thing. And just because you have the idea that you're going to be the boss doesn't mean you know how to take risks. Right. Entrepreneur, by definition, is someone who takes more than normal risk in order to grow a business or businesses.

And the only risk I would take in the beginning was knocking on a door, rejection was my great- And there's time. And time. That's it. I was investing time and energy and humiliation. And willingness to do that, right? A lot of people aren't, the willingness to fail. Exactly, willingness to fail.

And it was like, everybody was like, oh my God, you're so good, you're so courageous. I'm like, bro, I ain't courageous. I'm scared all the time. I'm just doing it anyway. And I'm terrified constantly. And anytime I'd get any money, I wouldn't use it. I would just park the money

because I'm like, and so for three years, all I did was park money. I'd go get a bag, boom, park it, put it in a bank. Go get it. Like I was,

for 30, I was 30, yeah, 35 years, Brandon Dawson, my partner at cardone ventures told me this day he's like you're so negative i said kind of work for me like he's like you're all the outpanned out this for four years now you keep talking about the world coming apart bro it is coming apart and i'm i'm a paranoid, very skeptical, kind of pessimistic person. Sure. And because I'm like, I'm going to get it and I'm going to park it over here.

My buddies are buying watches and BMWs at the time and going on trips and I was like, I'm not doing any of that shit. I'm waiting for the world to come for it because I didn't know what I was doing. Sure. I didn't have, there was no masterminds at the time. No mentors, coaches.

There was no mentors or coaches, dude. Yes. Nothing, you know, like I'd be so much further ahead today if I had all that. Of course. Well, you felt the pain. And so you said, okay, well, I don't want to feel that pain anymore.

So let me make sure I always have a safe. Well, I say, but it never went away. The pain didn't go away. It's like, I got a million dollars and now I'm like, oh shit, what do I do with a million? Just different kind of pain. Now it's like, I don't know what to do with a million dollars now what if i go broke now like what if i go get a million and then lose the million yeah now i'm an idiot

yeah now i had it and now i lost it and so it didn't change anything just having money didn't change anything for me okay and it didn't like, I didn't have any employees, dude. I had two and a half employees for probably 15 years. 15 years you had two and a half? And worked out of my home. No. Yeah. And then 2008 came and crushed me. Yeah.

I had two companies and I'd bought a little bit of real estate. And then I'm watching what's happening. Like the two businesses got killed. And what were those businesses at the time? They were both automotive. They were both still attached to auto industry. It just kind of slid.

So 2008, yeah. They got killed. Half of those guys went out of business. So both of my businesses got scorched. Two thirds of that business went away. And the only money I had was invested in real estate. I had a couple hundred units at the time. So when did you start buying units?

Yeah, I was- Four doors. I mean, why didn't you start- I was thirsty. I bought one door when I was 30. I bought another door 30 days later. I bought a deal with 3,500 bucks, put a renter in. I was gonna live in it. Yeah. You know that story.

The house hacking, sure. Yeah, and then somebody said they would rent from me. I'm like, okay, better. But I told the bank I was gonna live in it. Sure. Called the bank and said, hey man, I got a renter. That's fine, don't tell me. Yeah, that's it.

They said, literally, don't tell me anymore. And then 25 days later, bought a second house with no money. Nice. So I had at that time, it was like $200,000 worth of real estate. I was like, dang, man, I just went from nothing. This was a big like, wow. Of course.

I have 200 grand. And I wasn't worried about the houses like I was the money. Sure. I was worried about my money. Yeah. And the chick moved out, Janet moved out, her and her sister moved out and it freaked me out.

You remember her name? Oh yeah. Wow, bro. Remember the me out. You remember her name? Oh yeah. Wow, bro. Remember the whole deal. I remember the closing statement. I remember the lease agreement. I remember the problem. That's impressive.

I remember the month. Yeah. I remember, oh shit, man, it's February at Houston, Texas. It's cold as fuck outside. Yeah. And I don't know how to get another renter. And I'm like, I'm over my head. And I sold the house.

Wish you didn't do it. Big mistake. Big mistake. Made three grand. I'm like, I'm over my head. And I sold the house. Wish you didn't do it. Big mistake. Big mistake. Made three grand. I'm like, I doubled my money. I think I'm a baller, man. Made $3,000. Put $3,000 in, got $3,000 out. I'm like, this is unbelievable.

Yeah. That house is worth, I don't know, $800 grand. Right. Of course. So anyway, but that was my first little like, it was a hack. It was a mistake. It was an error, right? It was a glitch.

And I was like, hey, I made three grand. I was making 200 bucks a month passive income, but I didn't know what I was doing. And so, again, there's no education at the time. So I was living in Houston, Texas. Every weekend I went out and started studying units. I started reading about these guys like Don Brand and Fred Trump. And who was the other dude? The dude, Sam Zell.

I started reading about these guys. None of them were buying single family. They weren't flipping. They weren't wholesaling. They weren't building. And Bren did some building, but he was building big complexes in Orange County. So I'm like, oh man, the mistake I made is I didn't do units.

I didn't do units. So every weekend I'd go study. I'm in Montrose, Galleria, Houston, Texas. I'd go to brokers. As long as they'd talk to me, I'd talk to them. And then they wouldn't take my calls anymore. So I'd go to brokers. As long as they talked to me, I'd talk to them. And then they wouldn't take my calls anymore. So I'd go to another broker. Yeah.

For three years, every weekend, I was either traveling or on the weekend, I was shopping real estate. And I was fascinated with this real estate. And I thought that this was a place for me to store money. Yeah. So I did not buy anything for 35 months. Left Houston and in regret all the time too. Because you're like, oh, that deal sold.

I should have bought it. Oh, that deal sold. But I didn't have the confidence. I had the money. Yeah. And I had the credit now. I just didn't have the confidence. Okay.

Moved to San Diego. Yeah. Me and my friend Dale Christensen were driving downtown San Diego. And I've always been a pretty observant person. I'm always looking for the red vehicle, right? I'm looking for the opportunity. And I'm driving through town. I'm like, oh, there's a new truck over there.

Oh, there's another new truck over there. No, another new. It was 1996. I said, man, the economy's changing here. I said, I could feel something. The same thing that was in Houston when I was looking, I could feel the same vibe. And within, I don't know, maybe three weeks,

I bought a 48 unit building. There you go. Any of your own cash in that deal? Oh yeah. I had my cash and had to borrow like $9,000 to finish the deal. So today do you use any of your own cash? How do you treat money when buying real estate today?

Oh, you- Do you borrow other people's money or do you use a lot of your own? Oh, I do, I use all my money. I use my money until I'm out of money and then I go to other people and say, "'Hey, this deal's too big for me' or, "'I bought it, do you want a piece of it?'' We basically backfill.

Like we're doing a deal right now in Chicago. It was 150 million bucks. I'm guaranteeing the purchase. That's right. And then I'll tell my audience about it and they'll come in and backfill. I love it. Yeah.

I'm a big believer. I mean, I'm a single family guy. You're obviously a commercial guy. I'm getting in your space. We've talked about that, excited about it. But- You'll never do, you'll never do what you've been doing.

Anymore, I'll tell you. That was, God damn, I should have listened to Cardone years ago. That's it. But I just told you the deals I'm already doing, I'm already more excited about these 32, 22, 12, 500 doors. I mean, that's more exciting than, I just bought another home in Pensacola, Florida

and they're gonna burn it. So I like other people's money as a principle of entrepreneurship and in our world of real estate. I like using debt, I like using bank's money, I like using credit card debt. Now I don't do it to do this, this is paid for, right? I do it because I understand the economics of it. So in a single family space,

I can do what's called a burr, right? You buy it, rehab it, rent it, refinance. Now all my money's back out. And I used other people's money to buyRR, right? You buy it, rehab it, rent it, refinance. Now all my money's back out. And I used other people's money to buy it, banks and private lenders. And every one is just main hole, all I have is the bank, right? Do you view business in a similar manner?

If you're gonna go start these companies. I've never borrowed money from my business. Okay. You sell finance. I like it. Yeah, so I've never used, I've never paid interest on a credit card in my life. No shit.

I cannot say the same. Yeah, no, I mean, I use credit cards for everything. I use credit cards for cash. So like for some things like watches and if I could pay cash, I will. So I have a little bit of cash stored away. Just a little bit. So, but like art, bang, I want to hit them with some cash.

Okay. I love art. I've been watching that. Yeah, you're a big art guy. So, but because I think it goes up in value over time, right? It's good art. But anyway, I don't know how I'm getting off on that, but I have never used credit card debt that I couldn't pay off the same 30 days.

Okay. And I never used other people's money until, other than a bank. Yeah. Until four years ago. Okay, so you would always self-finance, meaning if a bank is gonna give you 80%, you are coming in with 20 on all your deals.

Got it. Yeah, now I borrowed money from other people, hey, brother, sister, but I was like, borrowing money from other people, man, there can be a bigger responsibility. Of course. Having kids and borrowing money. Like I'm not sure even which ones are worse or bigger.

Yeah. Because if you ruin the kids, I mean, you won't know about it for like 15 years, but you don't pay people back, bro. You know, immediately. And they don't pay people back, bro. You know, immediately. And it don't feel good. Especially now. So like the biggest obligation,

the biggest concern I have today, we've raised $1.3 billion. Mm. The biggest thing I worry about is other people's money. That's it. Like, cause I know I can outwork my situation. If I did have made a mistake on a deal, I can go fix it. That's right.

But I worry about people that give me money. Like, oh, God, was there a return or not? Did I get them cash flow this month? That worries me. A hundred percent. Let's change gears a little bit into understanding the expectation results. I think everyone is very, people have to be living under a rock. If you don't know who Grant Cardone is, you've been living under a rock for a decade.

But let's just take it for what it is. If someone doesn't know Grant Cardone and they see you today, they say, oh, billionaire. Oh, four times billionaire. Oh, how many companies? 22 companies. 22 companies. How many books? I don't know, eight.

Eight books. Millions and millions of followers. They look at Grant Cardone right now and they say, holy shit. Let's talk about the expectation of the result it takes to get here. Because we just walked through, you starting at 25, and grinding, you are how old now?

If you're willing to say it, 65. You've been grinding for 40 years. Yeah, I have been. To achieve that. 100%. But another thing I caught. I've probably been grinding since I was 15 actually. But I caught this, you were working weekends.

A lot of people just blew through what you were just saying. I'm listening. You're hustling on weekends, you're going real estate, you're going agents, you're gonna still go before knocking. Yeah. I think in the entrepreneurial space right now, I think there's a lot of people that want to be Grant, want to be Justin, want to break in and not have a job

because it's sexier to call yourself the boss as you were talking about. But they don't understand the grind. They don't understand the hustle. They don't understand yesterday, literally, as my wife and three-year-old child go down to sleep, what am I doing? Laptop open, working.

They don't understand that type of grind. Call that workman. Well, respectfully, I would just say. That's easy work, bro. That is, that is. Go on. But talk to people about the expectation of the result. Like, I mean, look, you know,

if you guys can figure out how to do it, you know, different than I did it, good for you. I don't know another way, right? So I hear Elon talk about 80 hour work weeks. I completely resonate with and understand 80 and 100 hour. Shocker, two billionaires talking about 80 hour work weeks. I completely resonate with and understand 80 and 100 hour. Shocker, two billionaires talking about 80 hour work week. Yeah, well, I mean. But people, there are authors out there that do.

Different level, he's a completely different level. Because he leveraged, you know, he leveraged. He understood money much better than I did at a much younger age. Sure. He also understood technology and he understood risk better than I do. I didn't understand risk-taking. I grew up, look, you are your surroundings. Like there's no way to get around it. You're limited to the surroundings and the examples that you see.

If I grew up watching Elon Musk, I would be a completely different guy today. I didn't have access to any of this stuff or I wasn't looking for it, one of the two. But even then it took Elon. I mean, listen, he's a very extreme example, right? Yeah, but I should have been studying the Jamie diamonds. I should have been studying BlackRock. I should have assured you guys, like the one piece of advice I would give everybody on the internet, everybody,

quit watching people like me on the internet. Quit watching the Brad's and the, you know, all these names of people, bro, quit watching all these guys. They don't know anything, including me. Go all the way to the top of the food chain and watch those guys. Watch these institutions.

Watch people that have built- How about Ray Dalio, what do you suggest, Ray? Sure, watch, don't listen to Ray's bullshit. Go study how Ray built his deal. Don't worry about his personality. That's it, yeah. Okay? Read his whole story.

Like you wanna learn from a guy, learn from the top of the food chain. Do not learn from a bunch of fucking hacks like me. Listen, respectfully. I'm just telling you. I respect your saying that. Well, I'm saying that about all the other hacks. That's it.

I got YouTube and a bunch of clowns. It's a bunch of clowns. I happen to make it. I mean, I slipped through somehow. Cause you worked 80 hour weeks since you were 15. I know a lot of guys that worked 80 hour weeks, right? I know. They just didn't take the right vertical,

which goes to the real estate portion. This is why I'm in it. Why didn't you choose real estate? Why didn't you just keep in sales? You could have been making many millions of years just for sales. Because I watched Brian Hopkins, Tom Hopkins and Brian Tracy and Zig and all these guys.

And I'm like, dude, I don't want to be an educator. I don't want to be a public speaker. I don't want to be the best speaker in the world. I watched these guys traveling at 60 years old. I'm like, he's going to South Korea or something for 25 grand, I don't want to do that. speaker in the world. I watched these guys traveling at 60 years old. I'm like, he's going to South Korea or something for 25 grand. I don't want to do that. Just bang, I woke up. I'm like, I wanted to be a speaker.

I wanted to be a well-known speaker. I wanted to be a high-paid speaker, and I got that. Be careful what you wish for. And the problem is we dream. We can only dream to the examples we see. I don't know what I don't know, and I can't imagine what I can't imagine. It's the law of the lid, right? It is, dude.

And it's like, okay, I'm going to be that guy I watched in the tapes. I'm going to be that guy. Yeah. Okay. And then I see Tony fill in a room. I'm going to be that guy. And then one day I'm like,

dude, I don't want to be that guy. I actually asked for the wrong thing. I wanted to be, I was studying the wrong part of the food chain. That's it. And so, you know, if you're studying, I want to be the shark. Okay, good.

He gets eaten too. Yeah. And, and, and I'm like, shit, I want to be a whale is what I want to be. Right? I want to be a whale. I want to like live for freaking ever. And, and, and, and so anyway, all I would recommend is like, I know the podcast and everything people are learning and studying and digging stuff so anyway, all I would recommend is like, I know the podcast and everything,

people are learning and studying and digging stuff and everything, but like, be careful who you study. That's it. Because it costs me, it costs me a bunch. Now you took a vertical, let's jump into real estate. The reason in my opinion, you were an incredible educator, you built an incredible brand, let's talk about branding. I think there's a lot of people that are scared.

I didn't try to build a brand. But you did. I didn't try to. Maybe you had the right people in your corner saying, "'Hey dude, shoot this video. "'Hey dude, jump on this plane.'" But you built the brand. That's not really how it worked.

There was really no, dude, I was just. Would you tell people to be intentional about it? Would you say you have to? Because I'll tell you, I don't think Grant goes anywhere near your level of success without your brand. You don't do these Saturdays every day and year, and trust me, I'm seeing them.

You don't do these things to build the brand. You don't go raise $1.3 billion without a brand of Grant Cardone. The brand was not built because of some formula. It was built through course hustle. Yeah, through force. Back to to that every day, dude. The thing that Bill's... People that don't like me still respect me.

Of course. I had a buddy of mine. He always had this button, this sensitive thing about respect. He's like, I need people to respect me. I said, bro, respect is earned by showing up.

It's not something you can get from somebody. You can't. You got to respect me. I said, bro, respect is earned by showing up. It is not, it's not something you can get from somebody. You can't, you gotta give me respect. I'm like, people don't like that. I don't, just because somebody respects me doesn't mean they like me. So I know a lot of people that do not like me. You probably heard it. I can hate that guy.

Oh, I've heard a lot of people, Grant Cardone. But you know what? They'll never say shit, but that motherfucker works. Well, I've heard a lot of people, Grant Cardone, blah, blah, blah. But you know what? They'll never say shit, but that motherfucker works. Well, and they'll still show up to your seminars and whatnot. They respect me, but they might not like me, or they don't like the way I said it, right? Donald Trump, it's a Donald Trump phenomenon, right?

It's like, I don't like him. I know you guys that don't like him, don't respect him either, but you got to respect that he did run for president and burst down on one. And one. And my deal with him. And he overwent.

Yeah. You know, Elon, Elon puts it all in. I respect that about him. Whether you like his political views or not is another thing. But the only thing I'm saying is the brand was built because of frequency. But you have to do it these days, right? Like, would you ever say someone could go rebuild

what you've done without it? look at someone like Ray Dalio. Now he's going brand. He built his thing prior to branding because it didn't exist. I just think, and maybe you disagree, I think you will never reach a level of success in today's world without branding yourself. Agent, car door salesman, like it doesn't matter.

You need to select. I just think that people are putting the card before the horse if they're thinking about, I got to brand myself. Brand what? You're no one. How do you brand that? By consistently on live or whatever.

You're not Tide, you're not Mercedes, you're not the Superbowl. You've never done anything. The Superbowl didn't brand itself. It kept doing Super Bowl. That's right. And then somebody's like, fuck the Super Bowl, man. And then the ads, bang.

Oh, there are ads. I can't wait for the ads because people kept showing up to do the ads. So I would just tell people like, you know, there's no hack on this game. Yeah. There's no hack. If there's a hack. Do the work. Huh?

Just show up and do the work. I mean, I know it sounds- I agree with you, by the way. But there's no, if you think that there's some shortcut to this hack, to this game, there isn't. So mutual- Except maybe this,

study the top of the food chain. That's it. Okay? Like study all the way top of the food chain, not study so far outside your own and don't even study your little niche. Like, okay, I want to be the greatest artist ever. All right, good.

Okay, you want to be the greatest artist, but maybe you would benefit yourself by actually study somebody outside that space, not just inside that space. Yeah. We have a mutual friend, Ari Rastegar. Yeah. I talked to him a lot. Hit me today. Did friend, Ari Rastegar. Yeah. I talk to him a lot.

Hit me today. Did he? Yeah. Hit me today. Yeah. He knew we were gonna be together. We'll do a little selfie and say, bro. Christmas, he's doing his Christmas. We'll do a little selfie. Let's just do this right now and say, bro.

No, no, I do it. We'll do it afterwards. You and I both know where he's gotten into real estate, but let's talk about real estate because he didn't have to choose real estate, neither did you, right? And I think you- No, I did. I chose real estate, but let's talk about real estate because he didn't have to choose real estate, neither did you, right? And I think- No, I did, I chose real estate.

Totally, you didn't have to. You could have just done this salesman job that made well, two, five, $10 million a year being a salesman. I was trying to get out of the business I was in. That's right. I'm still trying to get out of it. Yeah. This thing I'm doing right now,

the podcast, the events, they will not be done in the future. You want out. No, we will dissolve all this in the future. Grant Cardone won't be doing podcasts. You guys won't have to be ragging on me. Oh my God, he's asked, click the link, click the link. I will guarantee you before I die,

I will not be known for those things on the way out the door. Here now, one of the last podcast Grant's doing. Yeah, could be. Could be. Well, I appreciate it. So, but if you study, if you go back and study all the guys, the Rothschilds and the Vanderbilts, all these guys,

I'm not comparing myself to those two, but the J.P. Margins, these guys were completely different in the beginning than in the end. Completely, like not even the same people. Bill Gates was a different guy on the grind. Like you see Bill Gates today, that's all the Bill Gates you know, or Steve Jobs. You don't even know, like study the original Steve Jobs. Yeah.

These guys are gangsters, man. Dude, the hustle, right? You see those little things. He's competitive. You see the little Jeff Bezos little things every so often. His first office, Amazon's first office. Yeah, exactly. I'm not working that hard at his age to have a vision.

No one knew what the fucking internet was, bro. Yeah, exactly. He says, I got this thing, and I was the richest motherfucker on the planet. Yeah, and why? Because he followed the money. The guy was, here's a guy in New York studying money. He's studying patterns of people. Like when I heard Jeff's story, I'm like,

oh dude, I just got it. And like, he was, I probably heard the story three or four times. He's watching these patterns. He's like, all this activity is going to the internet. What's happening here? And I'm like, it clicked. I'm like, oh, this activity is going to the internet. What's happening here? And I'm like, it clicked. I'm like, oh, money follows people.

Money is not an idea about value. Money is not an idea about exchange. Money is simply following people, right? Wherever people go, money goes. And that's the one thing I would agree with you on the branding thing, right? The more people know my name, the more it's easier. That's basically what I was saying.

Yeah. Just do selfies all the time and hey, this is what I'm doing. Yeah. People know you, it's easier to, money follows you. Yeah, yeah, yeah. It's currency, right?

It's got to flow. No, I agree with that. I agree with that. I was just saying to go out and say, I'm going to become a brand. No, no, I think I was just saying you need to constantly put in the work. I agree. The live videos on a rehab project. Hey, this is what I'm gonna become a brand. No, no, I think I was just saying you need to constantly put in the work. I agree.

The live videos on a rehab project. Hey, this is what I'm doing. Well, the money will, people are lending you money if they know what you're doing. Yeah, the problem is a lot of people are like, I don't want anybody knowing about my project. That's it. I'm like, I don't want anybody to know about my art, okay?

I don't want anybody to know about my music, all right? They're gonna rip me off if they know about it. Bro, you're gonna get ripped off. Yeah. Okay, like how do you explain any greatness? Like hopefully you will get ripped off in your lifetime. I mean, some of the names you mentioned earlier, straight up ripped me off.

Okay, so what am I gonna do, get stuck in it? No, you keep moving. That's fine, dude, just keep recreating, create again, create again, and then they'll, you know, cause the problem with a copycat is they copy something they think is good. Yeah. So if you ever have a competitor that's copying you,

just remember like they copied that. Cause it's good. And they're like, shit's good. I'm gonna copy that and I'm gonna use that. Well, guess what's gonna happen? He's looking for something else to copy. That's it. And he never creates.

You can't copy and create at the same time. You don't look for to copy. That's it. And he never creates. You can't copy and create at the same time. You don't look for the creative. That's it. So I'm just like, okay, just keep moving. Keep studying up the food chain. How much time do you got? Someone, do you have? I think I'm about, okay.

Till somebody bust in here and arrest me. That's it. Let's jump into real estate, brother. I do single family, you do commercial. Someone has a bigger net worth. We'll let the people figure that part out. Let's just talk about why have you been, and I'm doing this intentionally just so you know.

Okay. Why have you been such a hater on the single family real estate? We just talked about it. It's a terrible investment, man. Okay. You know, me and you can sit here and have the debate about it.

Like it's just math. It's just, it's not like I hate a house, right? I don't hate a house. I know that when, I mean, if you want to actually know the emotional part of it for me is when I was 10 years old, my dad died. My mom had to sell her house a week later. Yeah.

It wasn't three weeks later or three months later, it was bang. My mom taught me a big lesson. Hey, you gotta get rid of something, get rid of it quick. That's it. She didn't have any debt on that house. There was no payment due. She got rid of it because it was the right thing to do. She was down to, you know, three kids and her single mom.

She's got an acre and a half out in Lake Charles, Louisiana, where nobody else is. She's going to have to get the kids to school. It's going to be a long drive every day or on the bus. She's like, I don't need this bullshit. I just lost my husband. He provided all the income. I don't need this house. I don't need 29 pecan trees to take care of and two acres to mow. I'm done. And at that moment, 10 years old, I'm like, a house is not an investment, it's a liability. It was a liability for my mom. Sure.

Now I know all the arguments, like everybody's like, oh yeah, but what about, what about? I've heard like, you don't think I know that 30 years from now your house is gonna be paid for? I don't agree with that, by the way. I'm a single family guy. Okay. I'm with you. Only reason why I bought my home in Pinecrest

is because I have a Cuban wife that said, we own our home. Honey, that's not a fight I'm willing to fight. But I'm also an investor. I thought that they owned everything before Fidel took it probably. That's it. On the way out the door.

Just like by the way, I don't know if you've seen some of the laws that are being passed right now. Oh, I have, yeah. Today? Oh, I did not. Today, like not here, but around the country. That what?

You own a single family home, you want to evict your tenant, they're making it harder and harder to ever get rid of. I hate that. What about commercial aid? So back to the single family. Yeah. Okay. It's not a great investment.

I agree with you. Because I have to fee it. For my own home. I'm talking about as an investor buying rental. Terrible bro. Shouldn't you go 10 unit? I see a lot of your ads going, you can find a 10 to 16 unit in your market.

Yes, it's why would I want one renter? Okay. Yeah. Like you're gonna go get. Talk to me. You're gonna get 20 homes. Yeah. You gotta do 20 closings.

And it's a pain in the ass. Okay, I can do one closing and have 20 homes. How does someone go finance that deal? If you're not talking to Justin Colby and you're talking to Fred. It's easy, man. It's easier to get a loan on 20 units than it is on one unit.

But he still has to come in with what? Doesn't matter. 20% down? He's got to come up with 20% down on a single family. Okay, so where does he get the money? Actually on the 20 units, the 20 units, his loan amount, his debt is going to be approved on the 20 units, as you know. That's amount, his debt, his debt is going to be approved

on the 20 units, as you know. That's right. Not on the single family. That's right. Okay. And it's already performing. It's not on his income anymore. You go to 200 units, dude, they're not even looking at your credit score anymore. Yeah. Like nobody's looked at my credit score in 20 years. What they asked for in my case is my schedule of assets. So how many assets do you have? What are they?

How are they performing? What is the cash flow? So, you know, you buy one house, you pay 400 grand for it, the mortgage is 3,500 bucks a month. You rent it out for five grand and you think, oh my God, I'm doing great. Okay, until they move out.

I think where I'm trying to go is they need to think more like you, meaning they just don't know that there is an opportunity to buy a five, 10, 15 door in their neighborhood and or virtually. I do everything virtually, by the way. I don't do a single thing here in Miami. He does, I don't, right? And I say that because I can buy in Birmingham, Alabama.

I can buy in Oklahoma City. I can buy in Pensacola, Florida. I can buy in Jackson, Alabama. I can buy in Oklahoma City. I can buy in Pensacola, Florida. I can buy in Jacksonville, Florida. Right? I can do it all virtually. Right? What they don't know is what I want you to teach them. How do they, A, find it, but how do they finance a 15-door, 16-door for round numbers apartment in their own market?

Because I agree. If people understood one deal is one deal, the signing docs are the same signing docs, one loan is still one loan, then why would you go with 16 door? The income's different. That's right. You know, you got one house, the guy's got to pay you 3,500 or 5,000 a month.

And I have 20 units where they can each pay me $1,000. I make a 20 grand on one deal income and I'm making 5,000 on the other. Well, I mean, like this making 5,000 on the other. Well, I mean, like, this is not, this is basic math. One person moves out of the house. I'm a hundred percent vacant. One person moves out of the 20 units. I'm 95% occupied and I'm still cash flowing. Like it's so easy. It's so much easier. Do you think people just make it a bigger idea? Oh my God. Nobody can start 20 units. The first deal can't, you gotta start small. Yeah. Okay.

If you think so, like I did, and I'm telling you, I started with one unit, 30 days later bought a second unit, three years later bought 48 units. I made more than 48 units that I would have ever made on two units if I'd have done it 25 times. It's a lot of the lid. Listen, I look up to you for a lot of different reasons, brother.

But a lot of that is you continue to push me and say, Justin, think bigger, bro. What the fuck are you doing? Exactly. To the point this very year, we end the year in four days or whatever it is, I will now be a part owner of a 515 door apartment. There you go, dude.

I mean, you own 10% of that, that's 55 units. Yeah. You know, like, do you know any, this is why I'm going to go back to what I said earlier, quit studying these yahoos on the internet. Yeah. You, me and everybody else that's got their own little gig, go way up the food chain.

Do you see any institution buying a single family home? No. Well, Blackstone, I mean, they bought thousands. Okay, they didn't buy one. But didn't we- They didn't buy one. Oh, Blackstone. I mean, they went and bought thousands. Okay. They didn't buy one. But didn't we- They didn't buy one. Okay. I got one. They bought 10,000. Yeah, yeah, yeah. They bought 10,000 condos in Miami in 2010.

They're trying to outlaw this right now. They'll never outlaw. Never. Never. That's bullshit. They could outlaw it, by the way. Why would they? It's an asset class. They're investors.

100%. They show we're gonna outlaw that, outlaw their position in Apple and Netflix. Exactly. It's just an asset class that They're investors. 100%. They show up. We're gonna outlaw that, outlaw their position in Apple and Netflix. Exactly. It's just an asset class that they see a value in. So they're gonna go buy 10,000 versus one. It's like the Santa's trying to outlaw the Chinese buying real estate.

The Chinese, by the way, the Chinese and the Saudi Arabians own a massive portion of income producing real estate across the United States. That's it. And that'll never go either. And so I think it's something that people don't, the law of the lid is a big thing that when I do look up to

which is often it's just, you gotta go. When he does. When I do. When he's not looking down on me. Well, I would tell you, people need to understand it's not that big of a deal. Now, respectfully, having a property manager, turnover tenants, but management groups can handle that.

No, no, no, well, well. You gotta do it with single family home too, is your point. You know, what's his name, Kiyosaki, rich dad, poor dad guy. He's on a whole nother level, by the way. No, I mean, I mean, just like. Dude, the guy's sitting there telling meher level, by the way. Yeah, whatever. No, I mean just like. Dude, the guy's sitting there telling me,

management is the biggest problem. I'm like, well, then you don't own any real estate. You think management is the biggest problem. Yeah. I'm just telling you, you sound like your poor dad right now. Here you go. Management is not the biggest problem, real estate.

Yeah. And he's like, how can that be? I'm like, I don't manage my real estate. Yeah. I got 12,000 doors. Nobody calls me and says, hey, man, can you get rid of the rats or the termites? Or I got a leak in. Nobody calls me.

I have a management company. I manage that. We pay $6 million a year in management fees to handle problems. Yeah. Evictions, issues. You just got to scale the game, right? Wall it. Whatever it is, dude, you got to scale the game, right, like. Wallet. Whatever it is, dude, you gotta scale it.

If you're not gonna scale it, I heard a guy once say, he's like, not everybody can scale. Everybody can and should scale. Scaling is survival. Yeah. And if you can't scale something, don't do something. Like you can't. I love it. If you're gonna go buy one McDonald's, don't do it.

If you're gonna buy 20, go figure out a plan for 20. Go all in. This is the advice, the only advice probably I am, that could give someone that would benefit you is don't, like scale something before you do something. Like being a car salesman is cool, but you cannot scale it. Yeah. And at some point in your life, as you age and get older

and have more responsibilities and obligations, you want to scale it. Yeah. And at some point in your life, as you age and get older and have more responsibilities and obligations, you want to scale whatever it is. I never thought about, dude, I'll own 10 or 20 car dealerships. I could have done that by the way. That's right. But I just didn't see it. Yeah.

And nobody was talking to me about it. But it doesn't create what I'm in this game for, which is the B's, right? I want a lifestyle like yours, right? You don't own, I mean, what would it take, how many car dealerships would it take to have a B behind your knee? Boatload? The owner of a yours, right? You don't own, I mean, what would it take, how many car dealerships would it take to have a bee behind your knee? Boat load?

The owner of a Ford, right? Like just- No, I mean, you know, 20 car dealerships, you could crack a brick, but- I like the- My little educational business is like, we'll do- You said little. Huh? You said little.

I mean, well, because I- I was just with Jared. She named little. I was calling on these car dealers years ago. They wouldn't answer me. Yeah. And then one day I called one and said, hey, can I buy your plane? Right here in town.

His name's Stiluppi up in New York. I said, hey, I'd like to buy your plane. Can I see it this weekend? He told his people, don't call him back. Guy can't buy my plane. So, you know, I've had three of them. And they go, okay, all right. I mean, I thought you were a car dealer.

I thought you don't qualify people. You treat every customer the same way. That's it. Like, that's what I, you know. Anyway, so now these guys are like, how did this guy buy a plane? Well, I didn't buy it because of my educational business. I bought it because I took the money from the education business.

That's not scalable, by the way. I mean, we have actually- You've scaled it. But not really like, to me, scaling would be, we do a billion dollars a year. So I need- Perspective.

Yeah, I need another, I need to grow eight times to do a billion dollars a year in income, which I think we can do. I don't know what period of time it's going to take me, but the money from- Do you care how long it takes? Well, I kind of do right now, yeah.

But I could do that quicker if I'd have pulled off this deal I was trying to pull off last month. That's right. They kind of blew up. There'll be another one. You know that. There'll always be another deal. There'll be another one. But the real estate for anybody is scalable. You could be a single mom, two kids, flipping hamburgers or working in a bar. You could scale real estate. And the reason why I say that for those that may not realize, because you're not saying it directly, if you buy one home a year for 10 years

and then sell all 10 and go buy a 40 door apartment, you're done, if you want to be. Meaning you were able to scale to 40 doors because you understood real estate to buy one home, move up in line, get 40 doors, hold that for five years, move up in line, get 100 doors, hold that for five. And then all of a sudden you potentially have hundreds of doors because of the scalability of real estate. You didn't build what you had overnight. You could just buy 40 the first time. You could? The first year, single mom, no money. She has no money, bad credit. Where do

you find the money for the down payment? Well, the deal. The deal will support. The deal is the most important thing in real estate. Like the deal, I've never had money, raising money for a real estate deal. But you borrow it, right? No, it's- For the dental payment. For most people, they're going to have to use other people's money. That's all I'm trying to get at.

It's all other people's money. And you make them a lender, right? They don't have to own the deal with you. They can be a lender. They can get 5%, 10%, 15%. They could be a partner in the deal. They could be an equity partner. There's a lot of ways to a lender, right? They don't have to own the deal with you. They can be a lender. They can get five, 10, 15%. They could be a partner in the deal. They could be an equity partner. There's a lot of ways to do it, right?

There's, but I'm just saying, like if I was starting all over again, 30 years old, and I'm like, I wouldn't have wasted time with one unit. I'd go buy 400 units the first. Let's go. I know how to do it now. Yeah. I want you to know how to do something.

Once you know how to make the cookies, you're like, bang. But you can say that because you know, and that's what everyone needs it now. Yeah. I want you to know how to do something. Once you know how to make the cookies, you're like, bang. But you can say that because you know, and that's what everyone needs to hear. Yeah. You know it, but you know how easy it is. So they need to realize they can start there. They just don't need it yet. They just think it's bigger than it is.

You can't do that if you're trying to make, you know, you can't buy 40 or 400 if you're trying to buy one. That's right. It's all buy one. That's right. It's all one transaction. That's your point. The point that you make, it's still just one transaction. Yeah. Right? And for some people they're like,

yeah, but that's all I want. I just want to have a house. Okay, well, good. I don't know why you're listening to that. I was just gonna say, then you don't listen to me or you or anybody, right? You know, and don't study up the food chain and why you keep checking into YouTube

to improve the quality of your life if you just want one house. Millions of people have done that. 40 million people lost their homes in 2008. So you guys would think housing's a great deal. There's still people underwater from 2008. Where are we going in the real estate economy right now? You and I agree on this.

We're gonna do the biggest, this is gonna be an unprecedented correction. Okay. This going to do the biggest. This is going to be an unprecedented correction. Okay. This is going to be the biggest. You think there's going to be the same definition of the big foreclosure wave of 2008, or you think it'll look different? No, it's going to look completely different. I agree. It won't be single family homes. There will be no correction in single family homes. Okay. Slight, maybe a 7% or 8% correction in price. And then it's going to go vertical from there. There you go. The correction is going to be in institutions and office and apartments and retail

and even some industrial. Yeah. But you're buying office literally next door as I'm meeting with your boy, Jared. You just bought this office when? The whole building? We bought it three years ago. Right after COVID.

I bought it during COVID. Okay. Yeah. But you're actively my hometown in Scottsdale, Arizona. I mean, you just bought right there and here. I would buy more office right now. So why do you say what you're saying? There's a deal in Las Vegas right now.

There's a deal in Las Vegas that Blackstone owns. It's 42% vacant. And we tried to buy it. It's a billion dollar. But you think the offset stays is going to be about- Probably over $140 million and it's probably worth four or 500.

So clarify for me, why are you saying there's this big correction in the commercial space and it's going to be crushed? Because debts do. Okay, but then who's going to use those offices is my worry. I don't need anybody to use. It either works or it doesn't work. I don't need something to be 100% occupied to make it work. Okay. I just don't know many companies right now are looking for office space. By the way, I don't know the area. I'm worthy to actually

genuinely ask you. Well, I mean, yeah. No, I'm with you. Yeah, I'm with you. Look, there's going to be a correction. The remote work from home thing is a massive failure. Yeah. Everybody that promoted it has- So it'll come back. You think there'll be a back to offices? Yeah, 100%. But even so, those spaces are worth something.

Yeah. A deal just traded in downtown Los Angeles for $140 a square foot. The last time it traded was 800 bucks a square foot. Like it's overcorrected. New York City is going to be overcorrected. We're buying a deal in Chicago right now, 150 million. It should be 300 million. There's no, it's a deal.

Yeah, it's debt, debt. Debt is the problem. The real estate always does this. It goes like this. And the only interruptions in that is when the debt has a problem. So we've had late 90s, there was 600 credit loans that collapsed in this country. 2000, the internet bust. 2008, the mortgage crisis. These are all debt related. Yeah.

And now a COVID, there was a big, a very tiny, short correction. We took advantage of that, bought almost a billion dollars for the real estate during COVID. Yeah. Nobody was shopping real estate. We were buying real estate.

And now 2024 is going to be a massive correction. It'll last about 16 months, maybe 18 months. And you're going to buy as much as you can. And I'm going to buy

everything I can possibly buy. Apartments and true commercial offices. Because debt's coming due. The debt is due. It's like I reached the end of the road with my debt. I hit the- And they can't refi because the loans don't look the same.

It doesn't act like it worked for them. Exactly, there's probably a 35% correction in just the loan amount. So we just created a distress fund for debt. So people could actually be the debt or the equity. How many funds do you own now? We've just finished fund 22. Wow, 22 already.

Or 22. 23. All of them have been oversubscribed. Good for you. Every one of them, we have money. I have many friends in them. They get paid, they're on time. Amen, brother. Paid out 7 million last month,

paid out 60 million last year. My goal is to pay out 50 million a month. We're paying about 5 million average. The goals in the future, my goal is down this morning, 120,000 doors. We pay out 50 million bucks a month in distributions every month, every single month. We'll be the only company that does that. You want to be the new Blackstone? 100. I does that. You want to be the new Blackstone? 100. I love that. Yeah.

I think I can do it too. And basically, we'll redefine how banking's done where regular everyday people like my mom who had to give up the house, she wouldn't have had to give up the house if she had income coming in. If she had monthly income coming in, she'd have been like, I'm cool with my house. But she didn't have had to give out the house if she had income coming in. If she had monthly income coming in, she'd have been like, I'm cool with my house.

But she didn't have that. And so that's where I learned when I was a kid. So we created this fund so people can get distributions every month. They can depend on them. They cash flow. And I can't do that in my book business. The book's hot for a little while. Then it does selling.

That's it. Unless I go push it and pump on. But it brings in leads. It's all cyclical, right? This goes back to the kind of question about branding. This brings in leads to follow you on IG where you go live, they get familiar with Grant Cardone. Six months later, you put out, hey, if you want to be a part of my thing, here's the returns.

Yeah, but you only have to write a whole book to do that, right? I'm about to finish my book and I would be honored and I'm doing this live in front of everyone if you would write the forward to it. Yeah. Flipping to wealth. Flipping to wealth, huh? Flipping to wealth. Man, I don't know if I can do that, man.

How am I gonna do that? Because it's right in the wealth. I'm not a flipper, bro. It's accumulating wealth, that's the whole point, is I'm teaching people you need to- Why would I want to flip? You don't. Okay, don't flip.

Right, I'm saying, hey, if you are gonna be flipping, go make money, a lot of people need to make the money. I got it. And then go buy the assets, own the assets. So I'm transitioning them from flipping. Okay, well, I gotta read this book before I can actually endorse it. All right, fair enough.

I'm not like Donald Trump. You're gonna say a nice word. I'm not like Donald Trump saying, hey, shit, I'll endorse you, I don't even know you. If you didn't do that, I'm just teasing you. Yeah, I think I'd endorse you, I like the way you look. All right, well, throw me one of those lines on the back of these things and say, hey, Justin Colby is the real deal.

How's that sound? Brother, I appreciate your time, dude, as always. We gotta try to do this every, we're doing it every year so far. Yeah, so we need to get you on this multi-family train. Let's go. I mean, this is how big this opportunity is. $2.7 trillion of debt is due right now.

Okay? If I can get one quarter of 1%. 0.25 of 1%? One quarter of 1%. Okay? Of that. Okay. Or a bunch of us got together

and quit doing this dumb shit that we do. Okay. There's 2.7 trillion. Is that right? That's a big fucking number. Yeah. Is that right? Let me see. That's a hundred million. There's a bit 700 billion, 2.7 trillion. Ooh, times 0.025. Yeah. $67 billion for the real estate. Makes you the largest. If I only can get one quarter of one percent. Okay. Now let me see how many units that would be. Well, no, no, no. That was 2%. 0.02 is 2%. 0.025 would be 2.5%. Oh, okay. I thought you were saying-

Oh, you're right. You're right. You're right. Yeah, yeah, yeah, yeah. Let me do it again, let me do it again, okay? Two seven, it's fine. Times 0.0025, right? 6.7 billion. So, I don't know, that's pretty impressive. Hell yeah. I mean, it makes me- I wanna get my worst.

Makes me feel warm inside. So that's if I can only do a quarter. Of 1%. Of 1%. What would you. If I could do a whole percent. So what would you. I'm not, I don't think I can't do.

So now that I'm getting into your worlds. It's $28 billion bro. Now watch, okay. This is happening whether you and I participate in this activity or not well i want in these mortgages are due the there's already right now hit me again um these mortgages are due they're happening they don't not happen they happen the the single mom can sit around and wait watch for that but podcaster the the speaker the guy this is the public speaker, and the cheaters out there, and the copiers,

and the bullshitters, and the fucking frauds, and the click-mators. Yeah. This is why people don't like me, because I tell the fuck. Can you say how it is? Because I say it how it is, you bitches. Okay, so let me see what I'm doing here.

2.7 trillion, okay, divided by 200 units. Oh, no, no, let me see. I want to do 200,000 per unit. That's 13 million units. Doors. Doors. I was divided by, let's say, average property is 200 units. 67,000 properties. Wow. Okay? About 20,000 of these will trade every year. 20,000 properties. For the next three years. For the next three years. It has to happen. There's 500 billion this year in 24, 700 billion, 740 the next year, and 740 in 26. I'm sorry, 740, 740, and 500. And these are going to happen. These loans are maturing. They will trade hands. Real estate, Warren Buffett talks about it. He's like, the real estate's always there.

The ownership checks. And you want to get on the cycle. The way to get on the cycle is when the crisis is present. It's a banking crisis. I think we have 300 bank failures. Here's your big headline. 300 bank failures in the next 24 months. We'll have major institutions fail and we will have pension funds fail. Now, we've never had a mass pension fund failure in this country. They're already at the brink of failure. If that happens, this thing rolls over where you're buying stuff for a half to 60% of its last traded price and probably half of what it would be built for. Now, thing becomes more epic, okay? This thing becomes more epic because if you have this kind of crisis,

like I think we did, all building and construction loans stop. Which means for the next two or three years, you will produce no new product. That's right. Okay, 24, 25, 26, 26, 27, you'll look up and say, fuck, we got a shortage of everything. Office, apartments, industrial. Single family, any say, fuck, we got a shortage of everything. Office, apartments,

industrial. Single family, any country. Single family is already a shortage. People say there's 4 million short. We're probably 45 million short in this country. I agree. Because 40 million of the single family homes, nobody wants them. Yeah. Except an investor that'll rent it. That's right. Because the renter don't want it. They're like, fuck, I don't want to live here, but this is all I can afford. So this game doesn't change, you know, even a hundred year mortgage on a single family home, which could happen in your lifetime. That's crazy.

Nah, I mean, it's crazy because it doesn't really offer a solution. The interest that they're going to pay out anyways. You have to go right. It only says it's got 300 bucks, but people will go for it. Of course. Because people are so,

Of course they will. People are so, I got to own it. It's like creating your Cuban wife. Yeah, I got to own it. so, I got to own it. It's like creating your Cuban wife. Yeah, I got to own it. Yeah, I got to own it. You don't own it, babe. Sorry, you don't own the house. Now I have a million in equity I can go rip out and go buy an apartment with, and then I have an investment tool. An equity, man, you got a million dollars of equity in your home. I feel terrible.

I got to go get a good bank to give me a good rate on the refi out. That's not going to happen. I know. You're not going to get a good bank to give me a good rate on the refi out. That's not going to happen. I know. You're not going to get a good rate right now. If you didn't have the house, if you rented where you lived, how old are you? 42.

You should rent where you live right now until you got a super bank. Yeah. My advice, here's a little cut for the Grant Cardin's advice for you. You should sell everything you have, Liquidate. Get all your cash to make a move in this space. Rent where you live. Go rent someplace for 30 grand a month. Just pay them rent. Don't even care, by the way. You could go rent my building right now

for 50 grand a month and you're stealing the property. Ryan Secko rents for 12 grand a month. The place is worth like 5 million, okay? The landlord's losing money renting to him at 12 grand. Yeah, yeah. So rents about half of what ownership is today. Take all your liquidity, go build a fund and go start to buy- Commercial. 2,000 units.

You should have 2,000 units at the end of this cycle, minimum. I'll see you in 36 months. I'll see you before that. Okay. Let's see how I do. 2000 doors. I dare you, I dare you. 36 months.

You gotta dump all this flipping bullshit that you're doing, man. I didn't know I was coming to iPod. IHOP, IHOP. IHOP? You're the waffle, you're the grill master, flipping shit. Own it, bro, own it and never sell it. Now my wife doesn't believe in that.

Don't ever sell it. Don't ever sell it. In Miami, by the way, this place you're not buying in, you should be buying in. I ain't buying in. Miami, Fort Lauderdale, Tampa. You hear that? I gotta get with this boy.

He's the local Cuban boy. Houston, Panama City, Jacksonville, as long as you're between three and six o'clock. Anything in Florida. I'd probably leave Orlando right now alone. I'd go to St. Petersburg. I'd go to little parts of Miami or Tampa, which are going to be unbelievable for years to come. Clearwater would be great. You got to be careful in Clearwater because there's a lot of old homes over there. But you should not even bother with any of these single family home.

Yeah. Unless you're going to go up to Canada. Canada is going to have a massive single family home correction. Because all their debts due right now, everything over there is unadjustable. So here in America, 70% of all the loans in America are either paid for in cash. Yeah. 12 trillion. Or 4% or under.

Or under 4%. So they're on a 30-year term. Ain't nobody selling. The institution, bro. Yeah. 12 trillion. Or 4% or under. Or under 4%. So on a 30 year term. Ain't nobody selling. The institution, bro. Yeah, that's it. Like if I privately told you some of the shit I have seen in two weeks, well, you'd be like,

I'm telling you, trust me on this. Go to the apartment. I can't buy it all. I could get a quarter of a, 1%. All my dreams come true. Well, what I need you to do- There's still 99.75% to buy, and it will happen and we'll transact. I love it.

I just got to get a big- You and I can both walk away with $12 billion each. Well, goddamn, let's get on it. So I still got a lot of life to live, dog. So do you. You know, this fucking life will live, this life I'm talking about, I'll live. Generations.

People will be like, wow, what did he do? Oh, he sends $50 million a month out in distributions. He built the largest apartment fund, real estate fund in America. He did it with everyday people. And then somebody would say, he also wrote books. How much of your own dirty work do you do these days? Meaning how many calls to the banks

or how much do you get invested in the deal or buying a plane or like- We're kind of, what about the plane? Well, just like, when do you get involved? Like when is Grant got to pick up the phone? When it gets nasty, dude. Yeah, otherwise- When it gets nasty, dude, they bring me in. Otherwise, when it gets nasty.

Well, what about the plane? Or what about the thing that you, you know what I mean? A helicopter, just where do you- There's a lot of stuff that I do. Like I'm a very hands-on person. I'm a control freak. Okay. You know, I don't delegate everything.

I think delegate, you know, the idea of you're gonna delegate everything is bullshit. Sure. Like I'm not that kind of boss. I don't have a big office. I don't even kind of boss. I don't have a big office. I don't even need an office. I don't care about the office. Yeah.

You know, to me, I wouldn't, you were over there with Jared. Yep. Like to me, all that is just like weird. I just wanna flow with people, move with people, create, I want stuff to happen. You know. But you're still doing, you're still in meetings,

you're still on the phone, you're still. Oh, 100%. Yeah, I like that. Like, you know, I got a great team too. Like they'll bring me in. Sometimes they wait too long to bring me in. Yeah. You know, I'm like, bro, you know,

I hear things, I see things and hear things that they maybe don't see. Yeah. But you know, when they're big deals, dude, I'm gonna be involved. I mean. I'm buying a plane, fuck, hey, there's one guy buying a plane.

That's it, you're on the plane. There's one guy buying it, one guy negotiating it. Now who's gonna go see it? I'm not gonna go see it. Right. Lion's gonna go see it, he's gonna fly to Switzerland, call up, FaceTime me, say, boom, it's a go. That's it.

I'm like, good, sending home. Piece of art, only me. Yeah. Like, don't buy me a piece, don't talk to me. Like I have a little thing, it's my little- Well, it's your art, bro. I mean, it's very specific. Real estate, I pick it.

You pick it. Every single piece. Okay. I pick it. Team gives it to you and you say, okay, here's my 14 options, whatever. No, no, I'll see it. I'll see it.

Typically what happens is they have a sheet, right? And they're like, hey, we're looking at these deals. They underwrote those deals. I'm like, fucking kill that sheet. Yeah. That sheet's shit. I'm not buying anything on that sheet. Look at these.

So. There you go. You know, it comes to the end of the day. I'm going to be the guy that fund races, you know, basically goes on. We do a Zoom call with our investors once a month. I handle all the good news and the bad news. So you jump on the call? I'm the- This is what I'm talking about. I want everyone to realize this thing about Grant Cardone is he doesn't just delegate everything.

The law sits when the law- We get on the phone with a lawyer? Yeah. Oh yeah, it's me. Yeah, well- Something's going to come out this week. When are you going to go live with yeah, it's me. Yeah, well. Something's gonna come out this week. When are you gonna go live with this? Within 10 days. Yeah, yeah, well, before 10 days, something's gonna come out and you're gonna be like, fuck dude, folksy guy's nuclear.

No, bro. I'm going nuclear this week. Do you remember the, and you should give him the clip for this, Johnny, the reporter that I put on check? I don't. You don't know the reporter video? No. Was this recently?

Oh my God, do you know it, Lou? I called the reporter on the phone and said, "'Hey bro, why do you keep doing these interviews on me?' So 34 minutes, Jared was in my office. Jared said, Grant, he's like, what are you gonna ask the guy?" Jared said's like, what are you gonna ask the guy? Jared said, Grant, what are you gonna ask the guy? I said, I'm gonna ask him these questions.

He's like, there's no way this guy will stay on the phone with you, 34 minutes. Francisco Alvarado, he does articles for the Real Deal. Sure. Okay. Oh yeah, you didn't see this one? I did not. Oh my God. Send me that in the little.

Oh my God, dude. So I called this guy, you're asking me, who does the dirty work? Okay. Prep this for this week. What's getting ready to happen? Okay. So I take a lot of shit.

Okay, understand as I take it and for anybody out there that has a chip on your shoulder, you've been bullied or pushed around or people talking shit about you, bro, you got to learn how to store that and use that. Okay? Store it and use it. Do not resist it.

Don't fight it. Don't get resentful. I'm not a resentful person, like at all. I use it. I'm not resentful. I'm grateful as a motherfucker. I'm like, bring it on, ding dong. Just keep loading me up. Because what I'm going to do is I'm grateful as a motherfucker. I'm like, bring it on, ding dong. Just keep loading me up.

Because what I'm going to do is I'm going to take all that and I'm going to convert it. My daughter's asked me today, why do these people say this about you on the internet, Papa? I said, baby, it's all right. Okay, Papa's converting it. Okay, it's all garbage. You use the garbage, man.

It's waste. Take that waste and you use it as fuel. So this guy, Alvarado, was trashing me on the internet. And him and a whole bunch of other people, by the way, podcasters, you've seen some of the garbage. Okay. The click bait and shit. Yeah.

You haven't done any of those on me, have you? Why would I? Who knows, man? But it's clicks. Yeah, I guess. It's clicks, man. So anyway, so I call this one dude out and I get him on the phone.

I said, would you like to do an interview about this thing we're doing? The real deal guy. Yeah, the real deal. He's like, yeah, I'd love to do the interview. He thinks I'm an idiot. That I'm gonna give him another interview, right? And so we get on the interview.

Well, I flipped the interview and I started asking him, hey man, you said these things about me. Do you think that was fair? You brought up my religion. Do you think that's fair? Do you know who this person is, this person, this person, this person? No, he's like, I don't know those people.

I'm like, you quoted them. He's like, oh wow, do you think it's fair that you would quote people without even knowing who they are or doing any research? No, that's not fair. So at the end of the interview, I said, 34 minutes, the guy was on the phone, I said, if you were me and people were treating you like this

on the internet, what would you do? It's like, I would be doing exactly what you're doing right now. So you flipped. Ended the call with him. And then I looked in the camera and said, hey, this is the first. All you guys out there that have been trashing me,

you YouTubers and click baiters, you haters, you guys out there hating on people's reputation, trying to tarnish their reputation, their brand. Coming for you. I'm coming for you. Yeah. That happens this week. You'll see the first announcement this week. You can love it, bro. And it's going to be. What I'm going to do, what I'm going to do, and I'm inviting everybody out there, if you've ever been trashed on the internet, this is the first Johnny clip this out of here, okay? If you've ever been trashed on the internet, if anybody's ever defamed you, defamed your name,

intentionally gone out of their way to hurt your name, your brand, your business, your finances, your future, anything, okay? I'm going to create, we're going to create a class action lawsuit against a number of people on the internet and stop this and pass a new law that you cannot, even under the disguise of stop this and pass a new law that you cannot even under the disguise

of my opinion and my opinion allegations up you can't i want to change that law because there's too much of this going on the internet where people are using the internet to clickbait to troll and and hurt people's businesses okay and and this will happen this week you'll see it i love it before you go live, probably. The first place ever announced, you're going to be proud, Johnny. I'll hear you right when I said it. Yeah, so we're going top of the food chain,

and then we're just going to start notching down. Wow. So if you guys keep doing this, I'm telling you, you're not going to do it to me anymore because you're going to be like, okay, maybe we need to go some other place. i know you will because you're all a bunch of fucking cowards see that's not defamation by the way me calling somebody a coward does not defame you or your business when you go out to somebody's business and you say things about them

that would cause people not to not want to do business with them or second guessing that's different but you calling you a bitch you're a a bitch, you're a coward, you're a click-mater, you're lazy, okay, you're looking for a shortcut, that's not me defaming you. That is me giving you a character assessment, okay, of what I think about you. My opinion of you is you are a punk, okay, is different than you defaming someone's business. So anyway, you'll see that launch this week, and that's fuel, dude.

That's grinder fuel, and that goes back to the very first thing in this is like you guys got a big figure out some kind of they talk about the purpose and the why yeah the purpose and why and always to be the greatest writer or director right sometimes it's some dark, black, hidden, grindy, nasty bucket. I want to fucking punch back. However you find that energy to get to sit. Because I'm not hurting anybody. You don't send $60 million out or write a book that people benefit from. That's not damaging people.

So if you can convert the fuel. I'm not resentful, the way of any of these people that I just talked about. Yeah. Why would I resent a bitch? I'm not resenting you, bro. I thank you for giving me the energy to come after you and maybe pass a new law.

Last thing I'll say is this, do you know the bird strike video? No, bro, where you been, bro? This guy wants me to endorse him. I can been, bro? This guy wants me to endorse- I can't consume videos. This guy wants me to endorse his book and he doesn't know about the Bird Strike video. I mean, come on.

I gotta know about the- You don't know about the Bird Strike video? No. Do you know when you get on a plane today, you can use your mobile phone? Yes. That's because of me, bro. How so?

Because prior to me videoing a Bird Strike, okay, and then getting a letter from the FAA saying, hey, you are now on a warning list on flights. And then I confronted the FAA and said, bro, if phones are that dangerous, take them from everyone. Yeah. Like you do my eating or like you do a knife. You should take my iPad, my computer,

and my phone away from every passenger. So fuck you guys. take the phones away from everyone if they're that dangerous, I will continue to turn my phone on. Because of that, okay, and I fought them to get off that watch list, they reversed the law and said, you can use your phone on a plane today.

You can thank me. Thanks, dog, I appreciate you. Now, I don't thank myself when I get on my plane and use my own phone because we have a law on my phone, on my plane. Use your phone. That's it, that's it. Brother, I appreciate you greatly. Appreciate you.

This has been my pleasure. All right. We'll see this next year and in 36 months, we'll do this again. Let's go. Look, I'm putting you on check right here, okay? 2000. How many units you gonna collect in the next 12 months?

24, just 24. Let's go with a thousand. In the first 24, another thousand in the last 12.? 24, just 24. Let's go with 1,000. In the first 24, another 1,000 in the last 12. Okay, good, I'll help you. Let's do it, let's do it together. Okay. It's good to hear, me and GC. Appreciate you, bro.

Okay.