Taking the safe, effective and reliable route is hardly Grant Cardone’s style. While the majority of Americans follow some uncomplicated method involving earning, saving and not spending, the real estate guru and motivational speaker’s instructions for attaining wealth are quick and to the point.
“That full-time job won’t bring you wealth. Saving, saving, saving won’t bring you wealth. Overspending won’t bring you wealth. Being scared won’t bring you wealth. The ONLY thing that will bring you true wealth is investing,” the CEO of Cardone Capital and creator of “The 10X Rule” franchise wrote on his Twitter feed recently.
Cardone is all about getting in the right mindset for success and going for broke to achieve your goals and dreams. So it’s not surprising that he preaches prepared investing as the key to financial and personal success.
In a video tweeted on June 5, Cardone advised people to accumulate money so that they can invest it into things that will bring solid returns for years to come — rather than sitting on it as a safeguard.
“Quit saving your money,” Cardone said. “That’s what my parents did. They saved money. They didn’t invest their money correctly. They didn’t take money [and] leverage it into real investments because they were terrified of losing their money.”
Speaking to GOBankingRates recently, Cardone shared numerous money tips for investors in this economy. Here are some of them, along with a couple of his core investment beliefs that can help you better handle your money in 2023.
Generate Cash Flow…
As Growth Hackers explained, cash flow is king for Cardone because it provides a regular stream of income in any given market. As Cardone states on his GCTV site, “Here’s a tip — never invest for appreciation in a market like this. If you’re going to invest in real estate, make it for the sole purpose of cash flow. Make sure you receive good income month after month from it.”
…Then Reinvest for the Long Haul
Once you are comfortable with the cash flow you are generating, you can start to invest in real estate for future financial strength. Building his empire from scratch and being fully committed to hard work (or “massive action,” as he puts it), Cardone doesn’t bet on get-rich-quick schemes and investment flips. Instead, Cardone thinks long term with his investments, always using positive cash flow to grow his wealth through assets.
What To Target in 2023
When it comes to specific investment opportunities to target this year, Cardone says that scouting location is critical. He recommends looking at “Multi-family [complexes] in the Southeast where there’s positive job migration and tenant-friendly politics. Also, there will be a place [to invest in older], financed sub-3% interest rate single-family homes.”
Think About Scale
“More units are easier to buy, finance and manage than a few units,” Cardone told GOBankingRates. “Scale is what makes you a real investor, not a manager.” For Cardone, one location with more units is easier to manage, easier to add value and easier to write off expenses, has only one closing sale and one financial statement and can produce enough revenue to provide more amenities and investment back into the property.
Steer Clear of Commercial Real Estate (For Now)
He also shrewdly advised, for the time being at least, against investing in commercial real estate and avoiding real estate options where a regional bank is the tenant. This is in line with many experts who are forecasting a potential commercial mortgage meltdown. However, he feels “the opportunity will present itself. It’s just too soon.”
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