My advice is to study in-depth and emulate one wealthy, successful person.
Case in point, Warren Buffett’s information about investing impacted me in a huge way and it was his advice that led me to start investing in real estate.
His opinion on Investing:
1. DLM. Don’t Lose Money!
2. Cash Flow. Invest for cash flow.
3. Long Term. Be in the investment for the long term.
Since I’ve started investing in real estate I’ve learned a lot about the industry and gained a tremendous amount of knowledge. Here are five of the most important areas:
1. Know Your Market. Investing in Orlando, FL is very different than the Miami area. You need to know the property and location.
2. Never Invest in One Door. Investing in a house, duplex or a small property is not going to generate enough cash flow to cover the deal’s debt, your management time or generate passive income. Always invest in 16 units or more.
3. Know Your Debt Partner. In this case, you need to know your bank. You need to understand the terms offered, what the bank’s strengths are, their area of specialty, etc.
4. Calculate Returns Over Years. Never think short term. Don’t think in months. You need to think long-term and what cash flow you’ll see over the investment term.
5. Exit. Determine how you are going to exit the investment. You should know your audience – who the potential buyer of the property is going to be years from now. Know who your buyer is on the way out.
These points are general categories of information to be aware of. For example, “Know Your Market” has much more information and detail to know to be an effective and informed investor. For example:
-Rents. You need to know what rents are in the neighborhood.
-Jobs. What is the employment rate, industry and companies that fuel the rent situation?
-Occupancy. What is the physical occupancy of the property? What is the financial and economic occupancy?
-Tenants. Who are the tenants, their history and the type that rent there?
-Location. Where is it? What is it near? Is it a transition neighborhood? A few blocks can change things dramatically.
-Owner. Know the other owners in the market along with the current owner of the property.
-Sellers. Know who the sellers are in the market and who you are competing with.
-Market Expenses. How much are utilities? Does a one, two or three-unit work better in the market? What is the unit price? Will parking, lighting push rent up or be seen as a detriment?
These are just a few of the points to consider, and just a few of what I go through when sourcing, researching and deciding on real estate deals for Cardone Capital investments.
Remember, Cardone Capital differs from other funds in these areas:
1. Partner. We do deals as partners with ownership.
2. Assets. We closely review, tour and investigate potential deals.
3. Monthly Income. We do a monthly distribution of cash flow.
Invest. And be smart about it.
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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.