Q&A With Cardone Enterprises’ Grant Cardone
35-year veteran of the real estate investment industry shares insights ranging from his personal journey to the post COVID-19 real estate world
Grant Cardone is a 35-year veteran of the real estate game. He’s the CEO of Cardone Enterprises and has $1.7 billion under management. Cardone has always been seen as a forward-thinking business operator. He is often called on by Fortune 500 companies and real estate leaders for his practical business ideas and strategies. Cardone is a preferred borrower with Fannie Mae, Freddie Mac and life insurance companies.
An entrepreneur, private equity manager and New York Times bestselling author, Cardone is known as the #1 Sales Expert in the world today. Forbes magazine called him one of the top CEO’s to follow on social media.
Under Cardone Enterprises, Cardone currently owns and operates seven companies with $150,000,000 in annual sales. He also launched the Grant Cardone Foundation, whose mission is to impact the lives of children who grow up without fathers.
According to Cardone, “the holy grail of every entrepreneur is taking risks in order to make more time and money.”
Cardone was gracious enough to answer a few questions for REI-INK while he was on the road getting ready for a big event. His answers range from revelations about his own personal journey to his “macro” view of the real estate world post COVID-19.
Q: How did your real estate investment journey begin—and what was it like?
I’ll never forget my first real estate deal. I put down $3,500 on a $78,000 property in Bellaire, Texas, and I thought I was getting away with stealing. I knew nothing about finding tenants, listing the property, drawing up a lease—zero. All I knew was that I owned a piece of real estate and I had hit the big time. I finally got some tenants and a whole bunch of problems—roaches, plumbing, you name it.
Then they moved out, and I was stuck with the payment. I ended up selling the place and turned my original $3,500 into $7,000. I made 100% with no idea of what I was doing. After that, I started doing my homework as I looked for other apartments.
Q: Who were some of your mentors?
I can’t talk about mentors without first mentioning my dad. He was the first person in my life to set an example for me when it came to showing up, putting in the time and doing the work. I also have to give my mom a lot of credit because she showed me what strength and determination were every day after my father died.
Later in life when I was on the ropes in every way, someone looked me in the eye and asked me, “What are you doing?” That was a wake-up call for me. That guy put me on the track that led me to where I am today. Of course, I studied all the great sales trainers and professional speakers back in the day too. So, I owe my success to a lot of people.
Q: Your company currently has close to $2 billion of assets under management. Are they single family, multifamily, land, retail?
Cardone Capital is one of the largest private real estate funds in the country, and we got there through crowdfunding. In record time, I might add. We made it happen because we offer opportunities to both accredited and nonaccredited investors.
As far as our assets go, right now we’re concentrating almost exclusively on larger multifamily apartment complexes, especially in the southeast U.S. But that doesn’t mean we’ll limit ourselves to that sector. I’ve done retail, commercial, single family, you name it. I’ll invest in anything, anywhere if I think it will result in cash flow. That’s what it all comes down to, but right now multifamily is our sweet spot.
Q: Do you favor one asset type over another?
My third real estate deal was for a 48-unit property that I chose because I didn’t want to have to rely on just one renter for my income. Even if a few units are empty, I’m still collecting. Anyway, I put $350,000 on that deal and made $5 million. That was the game changer for me, where I was like, “OK, I’m investing in apartments from now on.” So right now, Cardone Capital is focused on multifamily properties across the South and Southwest because that’s where the money is.
Plus, now more than ever, America is becoming a nation of renters. COVID-19 is going to accelerate that. So right now, I’m focused on apartment complexes of 300-500 units in good locations in the South and Southwest with everything tenants want nearby—good schools, convenient shopping, Starbucks, things like that. If you can offer all that, people will pay as much as $2,000 a month or even more, depending on the location and amenities. With that kind of cash flow, even if you don’t have full occupancy, there’s no way you’re losing money.
Q: What is your “macro” view of the real estate industry post-COVID?
What everyone else is calling a crisis, I’m calling the biggest real estate opportunity of my lifetime. As soon as this COVID situation happened, I was like, get ready, people. I told everyone I knew to look at markets everywhere and not just for people with millions to invest. Every market in America has duplexes, four-plexes, 10 units, 20 units. Almost anyone can access those properties and once you do, you are set.
Right now, large multi-family generates the most cash flow for me and my investors, but I’m always looking for new opportunities.
Q: Tell us about the 10X Movement?
10X is a timeless principle for success to get what you truly want out of life. I boiled down the only difference between the times I was successful and the times I felt my ventures failed. It came down to just not thinking big enough. The 10X rule is almost like an insurance policy. You have to aim 10 times higher and work 10 times harder than you think you need to in order to hit a target. This way when you come up short—as we often do in life—you are still much further along than you would have been if you were aiming 10 times lower.
Instead of just dreaming or thinking about the obstacles and giving up, you have to take action.
My 10X rule states that massive thoughts must be followed by massive action. You need to set your goals 10X higher, and then you must take 10X more action than you think you need in order to achieve them.
I try to live my life as a 10X man, but I don’t believe I’m the first person to embrace the principles behind the 10X rule. Great men and women throughout time are 10Xers, whether they knew it or not. You can achieve anything you set your mind on. That’s the 10X mindset, which we communicate every day but especially at our annual 10X Growth Conference.
Q: Our publisher recently watched a video of your 10-year-old daughter Sabrina speaking at a 10X event and was fascinated. You looked proud and almost tearful. Describe that night and the emotions you felt listening to your daughter. I can’t remember the last time I felt that kind of pride. To see my daughter up there owning that stage, speaking in her own words, with that kind of confidence while thousands of people listened—how do you put that into words? Moments like that are unforgettable and remind me just how blessed I am. As long as I live, I’ll always remember that moment, and Sabrina will too.
