Grant Cardone Didn’t Follow His Own Homebuying Advice — What You Can Learn From It
Written by
Crystal Mayer
Edited by
Chris Cluff
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When real estate investor Grant Cardone bought a $40 million home in Carbon Beach, California, he knew he would receive hate. He admits that the deal didn’t necessarily align with the advice he had been giving to his followers.
But the purchase wasn’t made in vain. In “The Truth on Why I Bought a House in Malibu,” he explained his reasons for buying the home and what people can learn from his venture.
Let’s dig a little deeper into Cardone’s logic behind this purchase.
What Advice Does Cardone Give His Followers on Buying a Home?
One of Cardone’s more controversial recommendations is that young people “never buy a home, ever, until you’re super wealthy. Then you buy a home. ‘Til then, invest in yourself, invest in your business and invest in real estate for cash flows.”
Why Did Cardone Purchase a $40 Million House?
So, if Cardone does not advocate buying a home, why did he buy a $40 million house on Carbon Beach?
“I’ll admit that the No. 1 reason I bought this house is that I fell in love with it,” he said.
But that isn’t the only reason he put down tens of millions for the beachside escape after he already had bought a $28 million Miami estate previously owned by Tommy Hilfiger.
He got the West Coast mansion because of the deal itself. Before making the purchase, he learned the owner was a Ukrainian businessman named Vadim Shulman. A little investigating told him that Shulman didn’t live in the house. While his off-market offer was initially rejected, he didn’t take no for an answer.
The home was considered “lifeless” because no one was living there. It was for that reason he was able to snag the six-bedroom, 10-bathroom house for $10 million less than asking.
What Should People Consider When Purchasing a Home?
Cardone, an internet sensation followed by many celebrities, says people should always be looking at the deal when it comes to purchasing or investing in a home. Does the deal make sense for them and their lifestyle?
He once said, “One of my first principles of real estate investing is knowing how to exit the deal before you even buy it.”
What Factors Are Important When Deciding Which Home To Buy?
Cardone is not necessarily the most traditional when it comes to advice about buying a home. Cardone focuses on real estate as an investment, although he does admit that the Malibu mansion on Billionaire’s Beach was a home he fell in love with.
If you are buying a home for your family or less driven by the investment aspect of a property, you should consider things like the location, size, age and price. The home you buy is likely going to be your largest asset. It is often something factored into retirement and helps individuals ensure financial stability.
Therefore, it’s essential to consider everything before purchasing a property.
What Can Be Learned From Cardone’s Purchase?
Several things can be learned from Cardone’s $40 million Malibu mansion purchase.
First, always do your homework, like researching who owned the home and whether it’s paid off. This home was “lifeless,” letting Cardone take advantage. Furthermore, he didn’t give up on the property even after his initial offer was rejected.
“I persisted with [Shulman] for over a year and he finally gave in,” Cardone said.
Cardone wasn’t going to let a good deal go. He knew what he wanted and used the information about the home to help secure the purchase.
Finally, he is still looking at it as an investment.
“Because of the price I paid and future improvements,” Cardone said, “I expect I will turn a profit if or when I sell the property.”
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