Grant Cardone, private equity fund manager and real estate investor, believes that everyone can — and should — be investing in real estate.
“You don’t need a lot of money to buy your first real estate deal, contrary to what people say,” he said in a recent YouTube video. “I work with people that do this stuff with no money down, a little bit of money down, traditional loans, VA loans, FHA loans, mass debt, bridge debt, crowdfunding.”
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Cardone credits real estate with creating his own financial success.
“I ultimately turned a $3,000 investment into $5 billion worth of real estate,” he said. “And I know that seems like impossible. […] Real estate is the greatest retirement asset on planet Earth, including 401(k) [plans] and IRAs. I took all my retirement money and IRA money and self-directed it into real estate deals, and it grew at three times the rate that it would have grown in the stock market.”
Of course, not every real estate investment is a winner, especially in the current environment.
“Remember, [for] real estate investors right now, this market is going to get really freakin’ wobbly,” he said. “It’s going to be crazy.”
4 Things Every Real Estate Investment Has To Have
In the YouTube video, Cardone outlines the most important factors you need to have in any real estate investment.
“Remember these four things: location, cash flow, you’ve got to have an exit and don’t overleverage,” he said.
Of the four factors, Cardone said there is one that should be the primary focus.
“What you want most importantly right now is the location,” he said.
However, cash flow is also essential.
“If it [doesn’t] cash flow, you can’t keep it,” he said. “All real estate is not created equal. It’s got to cash flow. If it doesn’t cash flow, you can’t keep it because you won’t be able to support the mortgage, expenses, the upkeep, etc.”
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