Mark letter of intent to return to work
you are now periscope welcome to real estate investing made simple I know I've been leaving you guys out you gals you peeps my friends every Monday every Monday real estate investing made simple with Ryan Seco I need my book my cap my manual okay the manual we use for underwriting I think it's right there not right there remember the one we use last week thank you very much I have in my hands ladies and gentlemen the new and supposedly improved can I get the manual where's that Malcolm X are 10 or 10x I have no clue whether it's worth it or not I will be reporting later as to the validity of this ridiculous purchase or as I'm concerned right now I do not see the value but I will let you know more as I go I heard I can take great selfies of myself with this but I digress today we're talking about real estate investing made simple we do this every Monday 12:00 p.m. Eastern Standard Time today I want to be talking about your letter of intent okay look I've been buying real estate for 30 years I do this for one reason I want you to know how to get in the real estate game I promise you you're gonna look back at me 10 years 15 years 20 years 30 years from now and say hey grant cardone got me into the real estate game this is a game changer folks it's better than banks it's better than the stock market it's better than bonds it's better than mutual funds it is certainly better than a college education okay I'm here to fill in the gaps I'm here to fill in the gaps I want to fill in the gaps between what you know the book you read the school or class you went to and how to find a deal you can call me today 305 eight six five eight six six eight I'll actually look at your deal I have real estate Ryan with me today looking good real estate Ryan okay and we're gonna come back from this opening intro real estate investing made simple [Music] [Music] [Applause] [Music] [Music] hey welcome back to real estate investing made simple last Monday I shared with you the 10 things you have to ask the broker today I'm gonna be talking about your letter of intent what has to go in this letter of intent if you don't know what that means the letter of intent is John maybe you can grab my computer letter of intent means your intent to purchase a property who's it gonna go to how are you gonna write it what should it say what won't it say what will you include what reinforcements I'm gonna share with you today the five things you must say on this letter of intent to get everybody's attention to get you the deal to make you top of the sellers list like hey I want that grant cardones offer i want to see that offer see this is the real problem with real estate once you got your head wrapped around i'm buying this for those of you calling in today 3:05 eight six five eight six six eight you're gonna ask me a whole bunch of questions and you're never gonna get to the most important question the most important question is not how much how do I make sense of it where do I get the money how do I get financing how do I get a return how do I manage it that's not the most important question the most important question in this game that most people don't understand and why most people don't get the value of this real estate thing the most important thing in buying real estate is how do I even find the deal once I find a deal second question how do I get them to sell me the deal these are the two most important things with apartment investing multifamily multiple units can I find a deal once I find that deal can I get them to sell me that deal the prop the reason this is a problem today is because there's a shortage of great product now when you drive your city you're in Columbus st. Louis Miami Los Angeles Dallas Houston Chicago you're in Honolulu you're gonna look around you're gonna be like there's no shortage of this stuff it's everywhere okay good good you say there's no shortage I say get on the phone then and see if you can get a deal cuz nobody just wants to talk to you they want what's called a letter of intent the intent to purchase okay so what I'm gonna bring bringing my whiteboard today I'm bringing my fancy whiteboard Ryan's already helped me out with some notes well the letter of intent okay you see see most of you wanna between this and a four-year deal yeah well what it could be you should all you're buying a house you should have a letter intent makes you look more professional the letter of intent is gonna include who I am how I'm gonna close what's the date it's the terms that I deal without getting to a purchase and sale agreement a purchase and sale agreement on some of the transactions we do at Cardone capital these are I mean the minimum I'm gonna pay for a purchase and sale agreement is gonna be probably twenty five thousand dollars in legal fees on a one unit for unit eight unit deal the year bond for two hundred grand you're not gonna spend twenty five thousand you're just gonna go straight to a contract but even then a lawyer probably should be involved in that is it a single entity oh my god grant you're overwhelming me with information then you're not ready for this game okay so understand this the bank is going to help you lay out the legalities of your transaction you're doing a four unit eight unit twelve unit thirty unit or 300 unit deal if there's a bank involved and the reason why loans are good is because the bank will lay out exactly how they want that agreement so my first deals I didn't know anything nothing I knew nothing I did not get a lawyer I did not go by an LLC I didn't hire somebody to walk me through it I did not go to a school nor did I read a book what did I did I got a partner the partner was the bank see my first deal was big it was 38 units it was a 1.9 million dollar deal I went to the bank and said look I want to buy you can't do this without good credit okay I'm gonna come back and put this on here in a second my first deal let me show you how I did my first deal okay this goes back to this commit first figure later you can get you in trouble okay but without this you never by the deal it will not happen you're gonna be talking thinking backing up getting information from people you got to commit to the deal first so I found the deal first how many times how many Mundy's if I come to you and said dude the most important thing is the deal it's the deal you've got to find the deal once you find the deal then you commit to it right so I found this deal it was 1.9 million fifty thousand I knew when I saw it I knew the second I saw it the minute I drove up this is a great deal you could I could feel it now I'd looked at thousands of deals prior to this I went to the bank and said look I'm gonna put $350,000 down on this deal I'm gonna find against 1.6 million dollars will you give me the loan no second place will you give me the loan no third place yes we will we love you for sure we love the property we will give you the loan okay but I'd already committed how did I commit to the to the seller I went to the seller with a letter of intent the letter of intent I knew I could get a loan from somebody it was just a matter how much money I had to put down if I had to increase this number to 500 grand 600 grand 700 I was I had the money to put down so many of you're not in that situation hear me out before you start saying yeah but I don't have any money okay good first you need a commitment because without a commitment you're not going to get the money to do this what you're gonna do is you're gonna make some money and you're gonna lose it that's why I say wait until you have a hundred grand to ask me what you should invest it in learn how to make money hold money protect money before you invest it okay once you get to a certain number I just kept growing my savings so I went to the bank and said look I could put five hundred grand down I can put six hundred grand down I've already written this guy letter of intent to purchase I'm buying it whether you help me or not the first two banks that I went to they weren't telling me no they would have told you no they would have told everybody no because they didn't lend money for apartment deals I just went to the wrong banks had nothing to do with me I took it on the chin oh my god they don't like me nobody loves GC I pay everybody my credits good and they were lend me money when I come back from break I'm going to show you how to use the banks how to use your letter of intent and how to get great deals with five simple things to put on your L o in your eye all network losses is if you want to work from home if you want to be your own boss and get the life or freedom you want this is a once-in-a-lifetime opportunity Global affiliate marketing pros is onboarding only 500 people to be a part of its pre-launch team where day one you will begin training in rank cardones number one sales training platform Cardone university you will be trained on your own crm packed with automated funnels leads your own website access to fully functional mobile app you will receive an additional 1,000 leaves the second you sign up on camp sign up now with global affiliate marketing pros at camp it up com that's camp it up calm everybody my name is grant wise the founder of modern investing mastery when the reason we run is to start a conversation you have something in the guy's attention you got a question you're posing and you got a solution you provide it to learn more about generating motivated seller leads visit www.investlocalbook.com petition create the fastest most effective marketing and web design and grow your business with leads and effective top-notch marketing strategies sign up now at pixel 506 dot-com mark in your neighborhood with a lasting impression a professional landscape can deliver that more and the man to bring it to you is Steve great awarded the National best of house and client satisfaction in 2016 but clients such as dr. oz and the Palisades Centre Mall in West Nyack this isn't landscape design this is lifestyle for more information visit Steve Briggs design.com that's Steve great hey welcome back to real estate investing made simple we're talking about letter of intent today every Monday 12 p.m. Eastern Standard Time I come to you to show you this real estate game today there's probably what 40 50 60 shows yeah at least that I've already done if you if you need to go back and watch those shows to learn how to buy deal find a deal get a deal underwrite a deal get a deal make a deal work manage a deal I have all the content for you I do this for you because I want you in the real estate game you guys need to quit sending your money to Wall Street maybe you want to send a little bit they're good you want a gamble no problem man you want to walk into a Hard Rock and blow 200 like John does then do it okay you want it you want to bet on the ponies good right you want to buy a lottery ticket great man just don't make a habit of it they're bad investments okay no I'm not here to butcher anybody I'm here to tell you where to go you want to buy real estate folks why do you want to buy real estate you want to buy real estate for a couple reasons cash flow appreciation depreciation okay tax benefits leverage okay and how about this the bank will give you a loan on an apartment deal and it won't even lend you money on its own stock how many different ways do I need to tell you dude this is how people get rich right here all the way back to all the guys JP Morgan said most millionaires will have most of their wealth created by real estate all the guys the oil barons and the railroad guys the car dealers every car dealer you know ends up getting rich with real estate cuz he owns that lot and that lot pays him for long periods of time and then one day he sells all that real estate that went with it okay he's getting income income from the real estate while he sits and waits for it to appreciate and he'd appreciates it gets tax advantages and uses leverage it's what wealthy people use now how are you gonna get started you need to know some terms letter of intent what is a letter of intent a letter of intent is a written document suggesting the intent to purchase something I could use the letter of intent to buy business I could use the letter of intent to get a job I could use the letter of intent to buy an apartment okay so first I got to find out most important thing in real estate what is it find a deal dude ideal is everything the deal is everything once you find the deal number one the deal then you commit to the deal see most of you try to find out where the money is first I don't need to figure out the money first you should have that figured out but look without a commitment you're not gonna find the money anyway what if the money what if the deal you love the deal you're like oh god or the girl oh she's the one right or this client ah but what if the girl doesn't want you the guy that has the real estate doesn't want to sell or it's a little out of your price range or the girl is a little prettier than you deserve right John you know I'm talking about or or maybe what's the other situation maybe the college you want to go to is more unaffordable or it's a little out of your price range what are you gonna do quit no huh you find a way you find a way there's a customer you want to get to but he's out of state see what most of you do is you quit before you even get started why cuz you never made a commitment this is the problem and this is a big problem I hear people teaching strategy no strategy matters without a commitment and by the way no commitment matters without a deal okay and these things kind of go back and forth because without a commitment you won't find the deal and even if you find a deal if you have no commitment you won't see it as a deal so I'm gonna give you I'm gonna give you a situation I just bought ok I'm buying a deal right now in Houston I can't tell you the name of it cuz we haven't closed yet but I'm buying this when I buy this deal I guarantee you will hit every real estate paper in the United States it is a a deal of a lifetime a truly leave this I believe this deal is is gonna make everybody invested in it a lot of money this deal was not on the market okay not on the market not for sale I found a deal it doesn't say find a deal for sale find a deal now I make a commitment to it I didn't go to the banks first but I did do some of my underwriting now your underwriting the underwriting remember if you go back to some of the future of past shows Grant Cardone tv.com for slice real estate or you call in here Mundy's will answer your questions I got six calls wrong right now will answer their questions just a second what I did was I found a deal that I wanted and I did what's called a letter of intent I wrote the letter of intent hey I had to find a who to sell it was easy we have the technology we have a piece of technology called RCA it cost us about twenty six thousand bucks a year for the nation is that right just under 30 grand southeast okay we have a piece of software that tells me who owns that address okay we went in put the address in take care yourself found out who owned the property we made contact the guy didn't return my phone call I called some brokers in the market okay brokers like yeah I know the dude I said good I want to present an off-market letter of intent he's like let me just call and see if it's for sale I said no dude go with the letter of intent now this letter of intent in this Today Show I want to show you what needs to go in there I don't want you to put in there what you read about in the book okay first thing you need to put in there is your bio okay and your wealth situation if you don't have money you do not try to buy this deal yes sir by yourself or does your attorney you have to do it for you know you can do this by yourself I'm gonna do it on a document back in the old day I never pay attorneys for anything either dude I don't have any money man right so the last thing I want to do is spend money on a lawyer did we do this this deals over 60 million dollars did we hire a lawyer for the letter intent no why would I do that why would I face some freaking goofball that's never bought state two hundred bucks to write a letter for me but what if I do something wrong then you can't do anything wrong if you got a commitment write the letter okay now you need to know what needs to be in that letter the lawyer doesn't know what's gonna be the letter how can the lawyer write my bio now if you're brand new to the game you need to figure out what your storyline is here hey I live in San Diego I live in Houston I'm right down the street I don't know you got to come up with some BIOS story here about who you are why you're the person to sell to you need to figure out what your bio is if you don't have one you need to hook up with somebody that has one okay this is why you guys will never get great real estate is because you're missing it's not the money first of all you're missing the deals you're missing the connections to the brokers you're missing the bio you're missing the story you think you're missing the cash I can't buy that deal because I don't have the money dude you can't buy the deal because you never found the deal don't have a commitment to the deal you don't know the brokers in the market and you don't know how to write a simple letter of intent because you read some out of a book that says cover these points the price the due diligence the closing and the financing no no no man it's your story on four thousand units okay I lived in Houston by the way I live in Houston for I started my career in Houston this was part of my story you need a story everybody likes the story folks okay when I come back from breaks I'm going to take these callers that have been waiting patiently I'm going to answer your questions I'm watching the feed on Facebook Twitter and Instagram hang in there 305 eight six five eight six six eight this Grant Cardone and I'm here for you if you are a contractor in any industry where you with access to our national app registry to find jobs and be found by customers all across the United States increase your job intake and grow your business Pro service Finder was built with the customer and the contractor in mind it is a simplified app to get you more business to find the best clients find the best contractors no hassle just straight business take care of your business and your home today sign up right now at Pro service finder com that's pro service finder calm it's what we live for financial freedom is created from opportunity at cemetry financial we are committed to getting hard workers talented individuals who love the spell who love to help others create a strong six-figure income if you ever want to have everything you wanted in life symmetry financial holds the key to get you there we want you the top talent the best in the business to join our team how to invest in real estate like Grant Cardone but you don't have the cash to invest yet reach out to Chris root and his team where he will show you how to invest in real estate to build cash without credit or much money by learning how to wholesale real estate we'll show you the right way to build cash so you can invest in multifamily apartments and other real estate investments like grant cardone sign up now at Chris recom that's Chris rude comm you are a business owner who needs custom software solutions to automate speed up and enhance your business let Niko's Computer Engineering get you started today with a free consultation CEO and owner Tim Clark has spent the last 10 years building custom software for companies around the United States Niko's Computer Engineering knows that you value speed to market that's why we have the fastest turnaround and software implementation on the planet go to Nicosia calm that's Nicosia calm to get started right what accredited investor with three hundred and fifty thousand dollars in the bank liquid earning less than half a percent hey my name is Grant Cardone I started with 350 years ago investing in multifamily income-producing real estate and today that real estate is worth over five hundred and fifty million dollars that's right over a half a million dollars it pays me every single month returns of 6 8 10 12 15 20 and even 25% I want you to come partner with me at Cardone capital comm if you love real estate you like passive income you like positive cash flow if you like appreciation over long periods of time if you're willing to be patient let me go to work for you to come invest with me card on capital comp for slash invest now this is only accredited investors $350,000 liquid in the bank's come invest with me now at card on capital comport slash invest now hey welcome back Grant Cardone here real estate investing made simple today I'm talking about the L o I why do people about real estate I'll ask that question in a second and I'm gonna give $500 out for whoever can write it down deliver it to me in the proper order what needs to be in this letter of intent okay obviously turns price closing date financing DD due diligence okay if you need any due diligence maybe you got some big cojones by the way you don't have to be a man to have cojones what else I need due diligence financing my deposit how much money am i given if you got big cojones maybe you give him a check right now and get their attention oh I'm not a seller I got a guy right now telling me I'm not a seller you know what I did I sent a million-dollar check to his lawyer tell your boy Dumbo he might want to listen oh cuz we got a closure over here ho you know what I say oh oh do you want to do a seance I'm just saying okay these are the five main things but before you do the five main things sell yourself the most important thing in a real estate deal is the deal if you never commit to the deal you need to sell yourself I want your deal I want this piece of property okay this sixty plus million dollar deal in Houston I love the deal I love it I love your property I understand it was on the market a while back and didn't close and I'm so grateful I'm so happy what would it take what do I need to pay you how do I need to write this up how do I get your attention I'm a bar for your deal by the way I just emailed you a letter of intent to your office I'm on the phone with the guy selling the guy I grew up in Houston started my first business there I loved Houston I want to literally finish my career in Houston Texas I'm selling my story included in the LOI you're gonna see my bio how many properties owned everything that's positive about me like everything you got to come up with a list of things that you love about yourself this is where my books come in sell or be sold be obsessed or be average the 10x rule how do I tell a story about why you should sell to me or why the girl should go out with me or why the client would buy my product it is all the same thing folks you got to be sold right that's why 30 years I've been in business and people don't you go on the internet nobody says grant cardone ripped me off I got ripped off by one of his products nobody says that about me you know why because I haven't ripped anybody off so so like literally if you if you hear anybody say anything negative about me all you got to do is ask him have you ever bought anything from me and I guarantee you they're gonna say no just don't like him I don't like the guy online because nobody's gonna say that because I'm selling myself as a legitimate person I don't need to make stuff up dude I own four thousand apartments on our way to five thousand I am a preferred borrower with Fannie Mae and Freddie Mac I'm telling my story right now I'm telling you how to tell the story okay I bought four hundred million dollars worth of money from Freddie and Fannie I've never gone bankrupt I have never beat a bank I have never gone bad on alone I have never renegotiated a loan package I have no lawsuits going on I have great credit I have a beautiful wife two kids and by the way I'm buying Houston I'm coming to Houston whether you sell me this deal or not I would just like to buy your deal okay now I heard Geno I heard that you passed at this price I'm willing to pay you a premium for your deal you'll see in the LOI I'm trying to go over the phone with the guy on Alton the LOI here's my price I don't think we're really sellers today don't even listen to anything he's telling you right now listen but don't listen you know what I mean here's my price I can close the deal in 60 days I could either assume the financing you have or I'll go get new financing but the financing is non-contingent so for those of you out there that need financing tell them I'm going to get financing or I can close with all cash you never said who it's coming from it could come from a bank but the financing is non-contingent to the deal okay meaning I can buy this deal without the financing I'll go get us some other place it's not a reason I'll buy I won't buy okay the due diligence all I need is about 21 days so you guys don't want to add time the more you add time the more you show the lack of the assurance to close commitment okay and the last thing is here's my deposit okay that deposit by the way I don't know why everybody's so scared in the deposit man dude here's the check for a million dollars nothing happens here's the check for a hundred here's the check for 25 nothing's gonna happen right now and by the way I haven't gotten a lawyer involved all I did was walk the property and I know I want to buy the deal okay let's take some callers I know I got a bunch lined up the most important thing here is your bio your bio in your story if you don't have a bio in a story do you need to bone up you want some great deals you guys want to be involved in the great deals you have to find a team it has a bio and a story to get the great deals okay the deal is not the split the deal is the deal the money's made on the deals not on the pay out you understand it's not what some company promises you oh we're gonna give you this or we're gonna give you that do what about the deal cuz without a deal the REITs invest in our real estate investment trusts where you get to tell people you're invested in real estate but you aren't dude we want you in a deal I want you in a deal why do I want you to deal let's find out from my first caller what's his name Michael can you tell me the five reasons for $500 by the way 500 cash can you tell me the five reasons in the exact order that I wrote him down people love to buy real estate I'm sorry I don't know my son's attorney and I'm trying to give you money man okay what do you'll reveal the deal what's your question brother well I'm a small-time investor I have two windows my of my own and I had two rentals as I managed for my mom my son and I came across as six Plex in the Big Bear area yeah yeah I like that the the area the power was an issue with this property it's been for sale for two hundred and sixty-five days yeah it seems like the price pencils out really well is 20% down yeah I'm wondering is it because it's up in the mountains that it's concerning for yeah you're probably well number one it's overpriced okay if it was priced right it is sold already but but number number two you're in California it's a California your bigger problems here or in the state that it's located in okay so so you guys are getting ready to pay for tap water you know that right I'm sorry the state is going to to tax you for tap order they're gonna start charging you for tap water what used to be against the law by the way the state of California is going to charge you for tap order Wow because this because the state is broken okay the state is broken it's just a matter of time before you guys have to frickin wave the white flag and say we are Puerto Rico we no money we are broke and then a disaster comes in and nobody can take care of the disaster because there is no money like what's happened in Puerto Rico right now is awful there were ninety billion dollars in debt before this before no two hundred and ten billion dollars in debt now they got a 90 billion dollar hurricane and they can't pay for that either so so so number one your problem is the state that you're located in it's just a matter of time before the wheels fall off the state of California however go ahead and give me your deal if you want to take a risk on it it's been on the market 230 days yes they went for 450 it brings in about $4,000 a month whoa okay you're gonna put 90 grand down more like 60 well that's not 20% it's 15 well actually we're trying we're thinking about offering 350 350 put to put 70 down yeah but that's not how you buy a deal bro okay that's not how you buy a deal you need it you need to make us you need to make sense of this deal at the full price if you can't make sense of the deal at the full price why are you gonna try to hammer these people if you can't make sense of the deal at 450 how do you make any money when you exit right see so if you're saying no no I only want to pay 350 for the deal dude if you're saying that what do you think the next guy's gonna say yeah same thing so what you want to do I'm not saying we can't pay 350 let's go in at 450 see if we can make sense of it you got to finance $340,000 use a factor of six this is a rate factor okay the rate factor says the the money's gonna cost me 420 thousand four hundred dollars what's the income this is the debt what's the income from the deal every month four thousand so $48,000 if it stays full big if it's under a little under market but not much okay you make $28,000 if you never have any expenses impossible impossible okay but let's just see if it works okay you make twenty twenty eight thousand dollars a year on 90 thousand bucks I'm all-in 30% return on my money I'm all-in now what I got to do is I got to figure out what my expenses are gonna be because it's impossible to buy a deal for no expenses right so now this is what I would do this is what I would do my brother my brother listen to me okay I know what I'm doing here I am a genius when it comes to buying real estate I cannot tell you whether this is a good deal or not because I don't see the deal but I can tell you once I find a great deal how I would get it I would not try to buy it for 350 that's why it's still in the market everybody keeps trying to buy it for 350 and nobody gets it the best deals I've ever gotten or the deals that I paid the most money for number one number two the best deals I ever made were deals that I went in at full price and later had to renegotiate you follow me oh so good of the gun say dude I'll do the 450 now you need your letter of intent I'll do the $450,000 I'll give you a full money number one number two I'll close how fast you want to close I'm gonna close in 60 days I need to close next year for tax purposes whatever that means number three no financing is necessary because I'm a bad bad man say what I'm saying okay I got the money dawg okay now this is what I'm gonna do also I'm gonna give you a hundred K deposit do you have a hundred thousand oh yeah good you're gonna give him a hundred thousand dollar deposit even though I'm on only use 90 thousand dollars is a down payment I'm gonna offering a bigger deposit then my down payment is necessary right what do I sound like right now I sound like Wyatt Earp meet me High Noon outside I'm a bad bad man okay fifth thing I want to do right here's what my D into my d DD Khorsandi it could stand for a lot of things you can stand for double double it could stand for did the da da okay this is where you're gonna go do your homework dude it could be the ding dong yes it could be Doug be does Dallas it could be the triple date okay okay dude you see what I'm sayin bro get the deal under contract bro and then take 30 days and do your due diligence Bobby okay thanks for calling man thanks for calling good luck on that deal by the way stay away from that deal how many units was that by the way there's six units it's a vacation deal he likes to ski see you guys are stupid no offense you guys do stupid okay let me just tell you let me just tell you a warning to everybody watching this right now if you cannot move outside your market you cannot buy real estate I knew when I bought my first deals in San Diego notice what I did by the way first deal was one unit second deal was 38 units never bought one unit again 38 48 90 okay in a period of 18 months bought had two hundred and some-odd units in a period of literally like but it took me five years to get enough courage and dough to say let's go bought it all in one market okay I knew then that I wouldn't stay there I knew over time I would be moving into different markets if you're not thinking about at some point moving into different markets this real estate thing the only people that get beaten real estate are they're really really huge guys and they don't get hurt they typically just renegotiate the debt and the little guys the really little guys and the guys that get too big too fast in the builders okay next caller letter of intent how much am I willing to pay how much am i putting down what about my financing what about my deposit what about my due diligence what's your question give me your deal give me your deal give me your deal okay it's in Michigan 16 units they're asking 1.1 okay 16 units axel Michelle how you doing today good good so what is it's 16 units what's the purchase price 1.1 1.1 okay so the dad on this deal the debt on the deal the first thing I do is the debt 48,000 you can't get away from the dead man you gotta have to pay the bank no matter what the income and the property is right and by the way you're not gonna do a deal without debt you want dad on deals oh I don't want dad I went to Dave Ramsey's school Dave said don't use that Dave ain't got seven hundred million dollars for the real estate either but he's got a TV show and the people that put it on his TV show God dead Dave and dd-don't stand for Dave with no debt they're paying Dave money to sell his time they borrowed money to build out the studio and get the programming out otherwise you wouldn't have Netflix there would be no Netflix no CNN no and CNBC no Fox no nothing right you need debt folks coca-cola caterpillar they have debt Apple Apple I got their new phone they even borrow money and they don't need two people got two hundred and eighty billion dollars in cash and they're like don't use it borrow money from the Japanese oh so smart okay so what what did i do right here jack can't do that anymore after that guy for the asteroids got all hammered right I can't do my accents anymore hard what's the income on your deal what's your name again Michelle Michelle I love you what's the income on your deal Lincoln was 123 123 okay what are the expenses on the trailing twelve that what do we say about numbers it into zero not true they're not true they lie personalized okay but let's go ahead and assume it we're gonna go back and check it out in our due diligence okay so this deal is gonna make $35,000 cash flow on 300 grand 12% return now now I need to ask you some very intimate questions do you mind Michelle sure we're in the where in Michigan is this it's Milford Michigan No Detroit area yeah do you love it I like the area I love the area and I think it's a possibility that's why I was calling just to try to get your feedback and what you thought as far as being yeah do you know do you know when the worst the worst the income has ever been what year the income yeah the information I got the 2015 that had it was only 113 as far as they're in there they're at least revenue say saito so let's go back okay when you guys are doing your due diligence what I would do is I'd write them a letter of intent I'd get them all I'd get them pregnant it's called getting pregnant it's a real estate term get the seller pregnant you understand what I mean by that have you ever been pregnant Michelle no okay well once you do it's hard to get out of it okay so what you want to do is you want to get them pregnant go to them at full price hey look I'm your buyer have you ever bought a deal before no good good so you're gonna go to them and say look I'm your bar I love your deal I love the location I love the city I love the town oh my gosh okay and make an offer I'm good at the million one okay I need 60 days go ahead sorry what would your charges be for the exit though that's one of the things I get confused by when you're talking about know what your ex is gonna be well well this is a great question that now you see my girl she's acting like a pro okay so that that's why you got to go back and find out when it last traded one of the best callers we've ever had you know what I'd like to do I'd like to put 500 dollars in your neck your first deal okay I'm gonna be one of your partners I'm gonna be one of your partners right now I'm telling you you find your first deal I'm gonna put 500 in because you sound really sound like you know what you're talking about so this thing sold for 1.2 so we know history says this thing sits in some range right do you know what it's all before then not before then that was the only record I could find of it at that rate in yeah do you have do you have the address 811 hold a hold on one second I'm logging in with a piece of proprietory what does it work very sophisticated piece of technology I need the address doors yeah Main Street I sent Ryan a an attachment that had all the information okay okay okay okay I have it so so what do you have oh I don't have I don't have the history no 811 yeah 11 North Main Street in Milford Michigan okay yeah North what Main Street Main Street and Arbor Milford Milford okay there it is Milford you are she's poppin that's it right there now what is this thing why is it calling it a single family how many units are 16 units 16 units I think it's multiple buildings they have like 8 11 through 845 nice mainstream okay this is it right here huh mm-hmm it's a nice pink yeah that's kind of that's kind of you got to do something about that right yeah yeah so you like the location better than the product yes I think there's the area is awesome I've done some single family there before so yeah yes so look your exit you know you're concerned about your exit because because of what I'm seeing here I think right so who's your tenant there well if that's the other question I had for you all these units are 1-bed 1-bath uh-huh okay why is that a problem I didn't know if it would be an issue because you're eliminating your your your clientele is far too in yeah you're you're limited one to two people that have you know a married no kids or yeah that's fine that's that that it's kind of nice knowing who your demographic is knowing who your buyer is I hate snow so look here's the deal here's the deal okay this is what I would do if you liked the deal I can't tell you whether this is a good deal for you or not no offense to everybody that lives in the Northeast but I hate the Northeast it's dying it's not it's dying you're you know you guys like you you you have to tell a story to yourself to think that it's that it's not dying and and one thing that I've done really well I'm out myself with myself in my life as I tell myself the truth I I expect the rest of the world to lie to me I'm not gonna be in the line I have to know when it's time to go right I'm in my I'm in California I lived there 25 years and they raised the taxes on me again I'm like dude I'm done I'm giving up the weather I'm giving up the beauty giving up the bogan video I'm giving up the olives okay so if you love real estate and it sounds like you do you should be able to look it's what I said earlier in the show you need to be willing to move outside of your market to find great deals because I'm concerned about your I'm concerned about you selling this deal and when you go to sell the deal even though you get cash flow for the next three four five six years this could be a property Ryan that she could sell for 800 grand not a million one how long has it been on the market okay the fifth the walk score is a 58 out of 100 yeah so yeah where's Whole Foods how far is Whole Foods away there's a Kroger just down the street yeah well big dumb between Kroger's and Whole Foods yeah but you just told me I bet you Walmart's Walmart's is within three or four miles yeah okay so so just you know I'm concerned about your exit but if you love the deal go in say look I but I'll pay you the million won I mean if you want to reach rate and what I would try to do is steal this deal if I like it I got to steal this one cuz they're the exit right now Ryan Ryan see me lay down on deals and he see me fight for $5,000 he see me walk away from a from a thirty million dollar deal over five grand like I'm done guys I'm out of here I am in control of the purchase you will sell it to me on my terms other deals I'm like okay sometimes you eat the bear and sometimes the bear eats you this is a this is a bear you could probably eat hey go in a million-one give them say I need 60 days to close the the less excited you are the longer the clothes is going to be the more excited you are the the short the shorter the closes the more the more buyers they have the more attractive these terms need to get hey I don't need any finance to telling you don't need financing okay you got enough money down to buy this deal go in with your deposit and tell them what your due diligence period is 60 days the closes your closing date right here okay these are the five things thank you for calling it these are the five things you need to know first first before the letter of intent goes out what do you need to know folks do you want the deal do I want this deal she doesn't know okay all excited and excited excited until what how do I sell this hmm I know it'll cash flow oh by the way it's still gonna be better than the banks what's she gonna make on this thirty percent it's that right 25 thousand huh is that including expenses yeah okay twenty-five thousand dollars over three hundred so she's gonna make nine percent on this deal okay I'm gonna tell you nine percent I don't like any of Michigan including inner city Detroit that's being revitalized yeah nine percent dude I want to be in Houston Texas okay nine percent I want to be in Miami Orlando Tampa like anywhere where it's a little warmer at least half the year for a nine percent return let's talk to the next caller okay Jason Lewis in Ohio you're trying to buy some real estate in Ohio actually my question is about buying out-of-state and how you manage those properties to manage those property management company yeah that's a great question I appreciate you calling in how can you watch the show I've probably seen over half of your episodes okay beautiful so the way you do it man is you do it with locals locals on the ground okay we use a third-party management company everywhere we go so when I moved from California my first deal in Florida was a thousand units so number one you want to go when you go to market you need to go with scale because I can answer your question oh you just pick up a real you just pick up a management company if you listen I don't want to do well why not I mean if you have enough scale dude nobody will rip you off see the problem is the company the management company's fine the question is how do I make sure that I have the level of customer service that that I think that you know should should occur in these buildings especially your buildings and your demographic you have a customer service game yeah huh site visits phone calls paying attention and most importantly scale yep you need to represent the mass portion of the management company's business so if if I took my business away from the guys that manage my properties they would not they would like everybody would hurt I'd be pulling out the heart of the beast so pulse would go to like half you understand what I'm saying I need them to need me dude that's why that's why I keep telling you over and over these shows like beware of the twos to force the sixes and the eights stay away from the single family who's gonna run these deals if you get sick nobody wants deal I know people that in Tucson Arizona they bought locally he got sick it was only a handful of units they didn't think it would be a problem until the wife started getting the phone calls okay she's trying to take care of his illness she's a nurse and managed the apartments tonight she's like I don't need all this trouble so what happened some guy like me walks in Rob's her steals that pays under market for it because she's frustrated and tired she sold it the wrong time because she was tired she couldn't handle the phone calls anymore it's like my mom my mom so that beats the real estate that we lived in because she couldn't handle the burden the up the just taking care of it all the time so do you need scale bro to go out of state you need scale and you need to know the market right and and and you got to you got to find good deal it's like we're gonna go into Houston I'm gonna borrow fee in Houston and I guarantee you any management company will do it will do this property for me for probably a 2/3 of the costs that they would charge anybody else just to say they're associated with that property even you associated with you yeah yeah all that right that's why that's why so many people are coming so many of my buddies are like dude I'm just gonna money with you a Cardone capital you have the management team you have access to the deals the brokers people know you clearly you're growing I'm getting bigger you handle all the problems of going out of state that maybe you can't handle what would is your main job now look two months ago it's a professional real estate buster okay good so and how much money you have to invest um let's see we just went into contract on a 12 unit 11 unit so we're probably down to about half a million okay all right so good man so you're out looking for a 1.5 million 1.8 million dollar deal right now and that's not assuming I raise any more money between now and then okay so worst case it's one point five it could be more than that what I would do right now is that focus on your market okay the problem with focusing on the market is sooner or later that market gets out priced you know in in every cycle right in every cycle the cycle just goes like this and they all go like this right and then it's gonna go and it's gonna it's going to go up a little higher than this it's gonna hit a little bit above that in the next part of the cycle and there's gonna do that again see so it's alright dude if you can sit here if you can buy here or even if you can buy here it doesn't matter as long as you can make it to the next top right when you're going between mountain tops you just need food and water and lakes as long as I got food water and lakes and nothing bad happens I'll make it to the next top the point of that in real estate is its cash flow cash flow is the genius of finance it is why all wealthy people get wealthy it is this one two words right here cash flow can I cash flow the activity until the next top so a lot of people like I want to buy down here you'll never buy you'll never buy anything okay you'll typically you'll miss this and you'll probably get in at the top but because you you need to buy all these I need to buy all these spots I want to buy every one of these and collect property si si si imagine listen to what real estate investors say I want to buy at the bottom and sell at the top okay how would you run a business like that you want to run a business on Amazon or Shopify I'm gonna wait until we're at the bottom a business is run through all cycles okay real estate is a business you run it through all cycles you want to be buyers and sellers and all cycles what you don't want to do is you don't want to have to sell here you want to buy here you want to buy a year and you want to if you're selling you want to sell here if you could or here or here typically you guys have to sell right here because you're in trouble you you you over leverage you don't have the cash flow you can't hold on because you didn't have enough units look I just want to help you with two things I want it I want to convince you that real estates a place to be better the QIOs retirement accounts 401k is better than bonds better than stocks I want to convince you to do that now you need to do the homework know your market know the product and be able to hold on long term this is not a get-rich-quick this is this is the next caller get rich for sure Derek what's up buddy yes ma'am what's up hey mr. grey are you doing great audio today good by the way guys I'm doing great brother I'm doing great hey sir I just want to tell you I'm a real estate broker I've actually called in a few times and spoke with you but whenever I bought property for somebody before with a strong letter of intent yeah on a property of wet down for sale I went to him I said hey guys looking to buy a property goes I'm not looking to sell I said you mean tell me this man offers you ten million dollar ginger take it he'll hold off saying you know ten million dollars I said well so you're a seller you just don't know how much you want to sell it for that's right and he said yeah he said I guess I am so we sat there and talked over it you know Starbucks a little bit hot cup of coffee sand and then look closing I actually called you two years ago when you did the the TV show the pitch yeah yeah yeah 30-second pitch yeah and I actually got an invite so waiting to take you up on it but anyway I'm sorry guys do you have a letter of intent and a real buyer has already been approved if you ain't a cash buyer a real estate broker or even the individuals can walk through the door yeah but any any apartment complex any business they want to show them what they got and people are gonna especially you got a well presented letter of intent yeah out there they know you're not just a guy off the street and what he's saying is what he's saying is he's using verbal to get somebody's attention you need to follow it up with something some letter of intent ok so there's not just a letter of intent that's gonna do this are you just gonna send emails out to people and say this is how I come but you you need to be able to do exactly what he's saying this communicate with people ok what I'm trying to do every Monday here on this show with you real estate investing made simple is to start simplifying the deal find their deal we got any more callers find the deal behind the deal commit to the deal no you want to buy that deal because this is what I never won question I ask you every every every time we're doing a deal is what do we want to do do I want this deal that changes everything I want to buy this deal I want to buy this deal do I want this deal do I want it or not ok but this is the problem that's a problem do I want this deal yes or no well you don't want it if there's a well dude it's either yes or no there's no gray in do you want the deal if there's great don't write a letter intend on the deal if you want the deal write a strong letter of intent include your price how long do clothes how much financing you in the be used and if you use it finally it's and just tell them you're not the lie about anything here how much your deposits gonna be my deposit could be more than my down payment I've done that many times I got money sitting around use it as leverage you guys you guys let your money sit at the bank and do nothing say dude I'm willing to pay cash for the deal you're not but I'm willing to okay that would be part of your deposit here and how long do you need for due diligence by the way the longer is not better okay we did you diligence to some of these deals at 7 days I need 7 days to do due diligence in 7 days you're gonna know whether I can buy or not how can you do due diligence that fast because I'm committed my name is grant cardone this is real estate investing made simple if you don't know as much as I know keep watching or come invest with me look there's only four waste about real estate really only three ways you buy it yourself put your money in a reap doesn't really count three you do it with a syndicator or four you do it with somebody like me a guy that's invested doing deals and you partner we literally go together on a deal I find the deal i buy the deal I get the financing on the deal I do all the negotiating with the brokers I use my network you put your money in you cross your fingers and you pray oh god take care o GC make sure his tuning fork is working cuz I think the dude has got the lucky charm this ain't lucky charm no folks is a lot of 30 years of looking to deals observing what works and what doesn't work you can go to car loan capital dot-com car loan capital calm if and only for qualified investors need to be qualified you need to be patient you need to be liquid and you need to have a good attitude okay so call me up hey grant I'm qualified man I got four hundred crack cash liquid then I'm gonna ask you this question are you patient can you go through the cycle cuz I can I don't need any baby I don't know anybody wine in here it looks pretty easy we need to sell now dude I never sell at the bottom I sell at the top if I sell at all okay I might even call you up I might call my investors up and say hey guys we had a 10 year term on this I don't want to sell this deal okay who wants to stay with me I think the payday is gonna be bigger than a candy bar yeah you understand when I'm saying it I think we're gonna get sick rich stupid rich I'm talking I'm talking like we gonna own Central Park in New York you understand that's the kind of that's the kind of investors I want I'm looking for people that don't just have cash okay you need to be qualified there's a lot of qualified there's trillions trillions of they qualified people have you sitting in your key account your SEP account your 401 account you can actually self direct these funds maybe you got a bunch equity sitting in your house and you're like I want to get rid of my equity and use it to qualify me as an investor second thing you need is what did I say I went blank oh you got to be quiet oh you got to be liquid you got to have cash okay so you either have that in your house you get it out or you have it in a 401k you get it out you got it at the bank sitting there dead like like even Escobar was worried about his cash right huh okay number three number three you need patience time is my friend in real estate remember the cycles right I don't sell down here I need you to be patient I need you the ability by the way you can be patient and not have the ability to be patient so when you call Ryan and say Ryan I'm qualified and I'm liquid I got 400 grand Ryan's gonna say dude is there any reason you would need this money he's gonna ask you is there any reason well I don't think so no no dude you sure because you're not gonna get this money grant is not going to sell at the bottom of anything nor do we try to buy at the bottom you understand and the fourth thing you need if you pass the first three is are you an ass or do you have a good attitude you got lawsuits you got problems you got issues you know your facebook page is full of freaking comments about other people and you're negative and you hate known people and I don't want anything to do with you or your money cuz I know how that turns out okay my name is Grant Cardone I want to help you I will help you if you have a question email us Ryan or yn at Cardone capital com Ryan at Cardona capital com also five thousand dollars could somebody grab my bag the five thousand dollar award reward we got some youtube videos that are sick you guys that have dropped your YouTube videos are do we have that one can we play that one is there a way to do that or they won't hear it will they damn damn damn I wasn't prepared again okay $5,000 I'm gonna get $5,000 away for the best it's not a lot one of these okay I'm gonna get five grand away for Best YouTube video okay by the way I just want y'all to know my relatives my employees my friends my church community strangers you live on another planet you're qualified to win this by the way you don't have to be liquid you don't have to be patient and you don't have to have a good attitude oh you got to do is make a video who is Grant Cardone use the hashtag real deal hashtag 10x and hashtag million dollar giveaway of the 5,000 I'm gonna give another nine hundred and ninety five thousand dollars away one hundred and thirty grand we've already given away in the last seven eight days you make a video who is Grant Cardone you could add who is Grant Cardone real deal or scam who is Grant Cardone is he the real deal who is Grant Cardone is Grant Cardone a scam I don't care what you anything like that right it'll get our attention hashtag 10x hashtag real deal and and make it as long as you want get as creative as you want get our attention get likes on it get comments on it if I like it by the way I'll go like it and I'm gonna send you a comment thanks for sending this it's awesome we've had some phenomenal video sent we're gonna give this away win November 10th we might add one or two days for some of you slowpokes but do you think so what you want to go November 20th let's go November 20th okay we're just gonna change the 1 to 2 hey it's my deal I get to do whatever I want is my money man don't complain I don't change the day that's right it's my damn money you get 5 grand away you put whatever day you want on it right here Lucey run if i can catch him both at the same time if i can't i'm gonna get myself an award okay I missed this one I missed this one man I missed this one okay can I do it can I do it can I do it Oh Ryan caught him okay yeah yeah I'm ready I'm ready let's see if I can do it yeah yeah I'm gonna give myself up yeah I'm gonna give myself 5,000 okay so look be part of the YouTube thing okay if you don't have time for it I've hit you oh man I don't have time for that man then don't do it dude I don't even know why you took the time to tell me you don't have time okay we had a bunch of people by the way that took pictures of me at the World Series game go to Grant Cardone com4 slash I won if you haven't gotten your money yet for posting a screenshot Grant Cardone calm board slash I won if I called your name on Instagram or Facebook this week in we gave away seven grand yesterday at my house call me write me grant cardone calm for slash i won fill in the information she's gonna send you back now he's gonna send you back an email show me what you did show me where he called you out and then guess what we'll send you a check I'm giving a million dollars away folks a million dollars dude if you had a million dollars would you give it away that's not question okay or would you go buy some real estate cuz I would tell you before you give you money way the smart thing to do would be to write an LOI up and go buy some real estate before you start giving your money away tell you right now one of the things I did in my life is what I did I had a job and I got good at it and then I got great at it and that job produced more income when you get great if you don't get more income then you're not good at it okay if you if you're great at a job and it doesn't produce more income you're just not close enough to the to the to the revenue share so you could be great at your job but not connected to the revenue what I did was that got close to the revenue I know some people to get great at their job but they just from the revenue there's just a they're like why don't I ever get paid more because dude you separate from the revenue get close to the pipe right to the stream go tap-in ride on the vehicle you can't get on the plane without getting on the plane get next to the revenue okay number two thing I did was I added a revenue stream to the first stream okay I had a job I still had that job by the way I added a stream the third thing I did was I invested everything from the first two streams into real estate all of it I'm talking every penny okay first 25 years I was in real estate I wouldn't give anybody a quarter much less twenty five hundred bucks we go to lunch dude you'd buy lunch me I didn't bring any money with me dude you know why cuz that was broke all the time all my money was invested in this hey man can you buy what's that thing we eat can you buy me an acai bowl today I don't have any money okay I'm telling you giving you permission right now get this right get that right invest every penny every penny you have invested into income-producing real estate as long as you can hold on for a long period of time I promise you your money will become worth more money as long as you pick the right properties in the right locations manage them correctly and can hold on thanks for watching the show today look we're giving you some money look forward to seeing you tomorrow power players Wednesday's on the G and E show Thursdays we're gonna be doing the sales machine young hustlers and Fridays you know I'm gonna be putting some cz on ya car down zone okay every night every night from my joint up on the 33rd I'll be giving some money away so post your image on Facebook or on Instagram I'll be calling out names tonight we're gonna give him another 5 to 7,000 away tonight from the haciendas you guys be awesome
