The name Grant Cardone is well-known among entrepreneurs and people who are in sales. He is a professional sales trainer who was able to develop a real estate portfolio worth $566 million from scratch. He is also a bestselling author and talks about how to create wealth.
Whether you wish to become the next Grant Cardone or you simply want to take your investment efforts to the next level, here are some important things you can learn from this self-made millionaire.
Know Your Market
Investing in San Francisco, California is very different from Los Angeles area. You have to know the location and property. Every suburb is different so be familiar with the market down to its micro-level.
Don’t Invest in a Single Door
Investing in a small property, duplex, or a house will never generate adequate flow of cash to cover the debt of the deal, your management time, or even generate a passive income. Grant Cardone’s rule of thumb is to invest in 16 units or more. This scale will provide you with sufficient cushion for covering your debt, management, and will leave you a positive flow of cash.
Know More about Your Partner in Debt
Your debt partner here is your bank and you have to know everything about it. You have to understand their offered terms, the strengths of the bank, their specific areas of specialty, and other related information. For instance, if the specialty of your chosen bank partner is in single-family houses, they would not be an ideal partner for deals concerning large multi-family units.
Calculate Your Returns Over the Years
Avoid thinking short term when it comes to your investments. Thinking in months is a big no-no. Instead, you have to think for long term and what flow of cash you will be seeing throughout the term of investment.
You will have to consider your initial investment as well as the appreciation that this will earn through the years while you are holding it. Aside from this, you will also be getting a cash flow every month.
Exit
You will also have to know how you will exit your investment. It is important to know your target audience. This will be the potential buyer of your property years from now. You have to know who your buyer is on your way out.
These are the terms that you have to think in when you are planning your property improvements as well. If you will decide to add a dog run, a gate, covered parking, or another extensions, who will be interested to rent your property and who will be interested in those renters?
Considering all of these things will help you identify and find your potential future buyer.
These are only some of the key pointers for investment that you can learn from Grant Cardone. At the end of the day, you have to be smart with your investments. Your first investment is to know more about the investment opportunity available. Always invest in something sure to avoid disappointments.