Flipping, Single-Family, or Monster Real Estate Deals?

There are three chairs in real estate, and everyone who invests in real estate is sitting in one of them. When I first started doing real estate I was sitting in chair #2. I didn’t make money on my first deal, I lost money because I didn’t know the game. I didn’t know that chair #3 is where all the money is. That's the only chair you ever want to be in.

1st chair: The Sales Flip

This is not a real estate play. This is a sales job. Buy, fix, flip! You don't need to invest money if you just want to be in a sales job. There’s nothing wrong with it, but it’s not really real estate investing. Whether you’re flipping single-family homes or bigger projects, this is about putting makeup on a pig and quickly finding a taker. You can make money this way, but there is also a lot of risk—and it's a lot of work.

Don't get caught up in the hype.

2nd chair: The Baby Deal,

This was my entry into real estate. These are the little duplex's, quads, the single-family homes, and anything under 32 units.

Most people do these because they have a budget. I had little money because I had little courage. I had $5,000 and I had to figure out what to buy so I bought a $78,000 house and tried to rent it out. It worked for about 6 months until the tenant moved out, then I couldn’t fill the place.

Small deals don’t have enough doors to ever have a good payoff, and they put you at risk because you can’t afford to lose any tenants. The smaller the deal, the bigger the risk.

3rd chair: The Monster Deal

You want to have 32+ doors. Even if you have to collaborate with others, do it. The biggest difference between the third chair and the second chair is income.

Without income, you’re not a real estate investor. If you’re going to do the big boy deals you have to collaborate with other people and this is what we are doing at Cardone Capital. I get the deal, find the deal, manage the deal and finance the deal.

I’m talking monster deals here, like $50 million +. Collaborating with someone like me on a monster deal means if there is a problem with the debt they’re not going to call you, they’re going to call me

Which chair do you want to be sitting in?

If you can’t own any real estate, be in a partnership that does. You guys aren’t sitting in the 3rd chair right now with monster deals because you don’t have the budget, you can’t get the funding, and you can’t find the deal. I even have rappers and athletes calling me to get in the game because they know it will last longer than their voices or legs.

If you’re a patient, qualified investor and you don’t want to be in the wholesale business flipping projects or doing tiny deals, come partner with me.

Do you want monster deals, baby deals, or a sales job?

There’s only one chair you want to be sitting in when the music stops. For much more on real estate, subscribe to my weekly Real Estate Podcast.

Be great,

GC

Grant Cardone is a New York Times bestselling author, the #1 sales trainer in the world, and an internationally renowned speaker on leadership, real estate investing, entrepreneurship, social media, and finance. His 5 privately held companies have annual revenues exceeding $100 million. Forbes named Mr. Cardone #1 of the "25 Marketing Influencers to Watch in 2017". Grant’s straight-shooting viewpoints on the economy, the middle class, and business have made him a valuable resource for media seeking commentary and insights on real topics that matter. He regularly appears on Fox News, Fox Business, CNBC, and MSNBC, and writes for Forbes, Success Magazine, Business Insider, Entrepreneur.com, and the Huffington Post. He urges his followers and clients to make success their duty, responsibility, and obligation. He currently resides in South Florida with his wife and two daughters.