Wealth Formula Podcast Episode 124: Real Estate Millions with Grant Cardone!

Listen to the full episode: https://www.wealthformula.com/podcast/124-real-estate-millions-grant-cardone/

Buck: Welcome back to the show everyone. Today my guest on Wealth Formula podcast is Grant Cardone. He’s probably familiar to many of you. For those of you who are not familiar with him, Grant works with small companies in Fortune 500 companies to grow sales by finding overlooked opportunities and customizing the sales process to be more effective. He’s worked with the likes of Google, Sprint, Aflac, Toyota, GM, Ford and thousands more. He’s also the owner and operator of four companies that do almost a hundred million dollars in annual sales. And he’s also a prolific real estate investor who’s amassed several hundred million dollars in his portfolio over the years. But it doesn’t stop there he’s also a New York Times bestselling author and international speaker. Grant welcome to Wealth Formula podcast!

Grant: Thank you Buck, I appreciate it. Love the audience by the way. By the way, you got a great audience of knowledgeable and inspired listeners.

Buck: Yeah absolutely, we’re happy about that. Grant, you know I think you’re, you know, your social media presence is robust, right? So it’s probably hard for most people not to have heard about you. I’m really impressed by that. And obviously your career has been very successful. Can you tell us a little bit about how you got there? Because obviously you’re, you know, from reading about you, from watching your videos, you certainly were not born into it.

Grant: Yeah no doubt. I grew up in Lake Charles Louisiana. I had doctors actually that lived on both sides of us. So the fact that you come out of that space, Dr. Stevens was on the right side, he was the rich guy with a tennis court . And doctor Morin was the bone surgeon in our town and he was well-to-do guy with a nicest brick house in the neighborhood. And then there was my dad who basically had bought this house that was on an acre and a half of land. It was 18 months before my dad would pass and he’d bought this dream house. He was a stockbroker, before that he was an insurance salesman, before that he was in the automobile industry, and before that he was a grocer. They come from an Italian family that grew up in Louisiana. Their both their parents were immigrants to this country, and my dad had made it into the middle class you know he went from being in poverty to firmly into the middle class. This was literally a dream home that we had. On the lake, looked at the bridge, you could see their refineries, you know? This was a dream, like it was like this was a big deal. And I was ten years old when my dad died, eighteen months after he bought his dream home. Heart attack, you know he was under a lot of stress, he was overweight, you know April. And my mom had to sell the house the next week, the house was paid for by the way. And we had to sell the house because my dad had some life-insurance money, and it paid proceeds, she cashed it in, and then she didn’t know how to make income. Well I’m telling you all that to tell you where I came from, right? Because for the next really 15 years of my life, from ten to twenty five, I watched my mom terrified every day about how much or how little she could spend. It was everyday like I was getting, I was getting my first real education on economics. I went to college, I got an accounting degree and you know, I was always interested in money, in economics, coz my dad was. But I wasn’t putting it all together that this middle-class thing that my dad was patting himself on the back for, before he died, you know the house, the cars were paid for, the life insurance, the kids get to go to school, we had three square meals a day, we didn’t have holes in our tennis shoes, I didn’t walk to school barefooted, I don’t have, you know there was nobody beating us up at the house. But the reality is fear was beating us up, scarcity was beating us up, you know turn off the lights, eat all your food, don’t overspend, save for a rainy day. Like that was being pummeled into me every second of every day. And somewhere around 16 years old that this had a big impact on me because I remembered, 16 I was angry I couldn’t help my mom, I was shameful I couldn’t help her, because I saw her in fear. You know when you’re when you’re a mama’s boy, which I was, really close to my mom, and I couldn’t help her, it really hurt me. So I told my mom out of frustration around 16, I said one day I’m gonna be really successful, okay. And I’m not gonna have to worry about money every second of every day. Oh you should be you should be so grateful for what you have, you know. And I said well I’m not grateful. This is this is freaking, this is not good. You know that that we had to worry about the cost of gas. By the way did this problem that I had at 16, has become an even even bigger problem in America today. Because the numbers are so much bigger today. You know you and I were talking before this about how many doctors out there are making three, four, $500,000, that don’t have any money. Overextended and the joke I told you is, you know if you’re making 40 grand a year and you’re you’re in debt, you can tell your friends. If you’re making 400 grand a year and you’re a doctor you can’t tell anybody.

Buck: I know, I know.

Grant: So you know today some of them I mean, I have almost, we have, we’ll hit a billion dollars in real estate this year, assets under management own I’m probably eighty eight percent of them, of the value of that portfolio. The businesses are seven businesses, now we’ll do about 150 million bucks. Like, to know where I’m at today compared to where I grew up and how I grew up, just shows you the power not of me, but of the American, the possibilities in this country, if a person is not seduced by just enough money, you know if you’re not seduced by a title and the millionaire status, if you’re not seduced by that, you actually put game plan in place, still today a person can create tremendous legacy wealth for themselves.

Buck: Right, so you talked a little bit about this scarcity, and that kind of was in some some regards was necessary because you would you were living sort of maybe it was a middle class upper middle class life while your dad was alive, and then boom all of a sudden it was gone. And it’s funny because it’s almost like, it’s almost like a metaphor for American retirees, right? Because they’re, because everybody’s, you know trained to try to put away enough money so that they don’t outlive it. But you had that vision or you had that experience at a relatively young age. Now when you had the scarcity mentality, I can’t imagine that that didn’t initially penetrate your own belief systems and how you viewed money. Now obviously you broke out of that, now how did how did that happen?

Grant: Well I mean look my mom said to me so many times, we’re in the middle class right even when she had to sell the house. She had to sell the house because she didn’t have the income coming in to keep taking care of the house. Remember we didn’t have a debt, we didn’t have any mortgage, right? Well I’m doing that, we didn’t have a mortgage all the houses were paid for we had zero debt everything that they teach the Dave Ramsey, the Smart Money and CNN Money and all the bloggers out there, talk about, pay all your cards off. We had all that, did not get rid of fear every time I hear the word middle-class today, I know that I should be running for the hills. And nobody’s telling their story right. Now it’s like in America if you’re in the middle class, somehow you’ve somehow been like sanctioned by the Pope of Economics that you’re gonna be alright. It’s a lie. And the politicians can’t tell us the truth. So like when I hear middle-class today, all I remember every time I hear that is my mom scared. I’m worried, okay? Oh I’m planning for retirement. Okay, my dad never made it to retirement. What was he planning for? So my dad made enough money to be scared. You know I remember when I read the book The Millionaire Next Door I loved that book because when I read that book, I said I’ll never be the millionaire next door. I will never be the millionaire next door. I’m not gonna buy a Ford f150 used because that’s how you become a millionaire next door. Millionaires are scared about their money. Every millionaire I’ve ever met is a guy he might join a country club, right? He won’t burn his Nikes because you know, they’re paid for. They brag about their two kids going to the best colleges, oh by the way they’re baristas at Starbucks. It’s like the whole thing man. The whole thing, you really, everybody, your listeners know should really start challenging everything to do with the middle. And I mean just look, like the housing thing. My dad bought a house. Supposedly a house is supposed to be an asset, but if it was an asset that’s paid for, why did my mom have to sell it the next week?

Buck: Right well you know like Robert Kiyosaki says, right, you know Robert was on the show some time ago. And he had the same, by the way he had the same negative view of The Millionaire Next Door book. But you know, an asset is something it puts money in your pocket. And a paid off home isn’t really something that’s gonna help you make money, right? You know one of the things though that I think about specifically as it comes to you know whether it’s the poor whether it’s the middle class and really even the upper-middle class is, there tends to be something that I call the Wealth Thermostat. And what I mean by that is you know people sort of get into a rut, and they have a certain level of wealth they expect, whether that’s $50,000 per year or you know maybe they’re worth 50 million but they’re gonna get there one way or another once they set it, I mean you see billionaires all the time losing their money and then they make it all back. You see guys who are you know doing a hundred thousand dollars a year and all sudden they make a bunch of money and then boom all of a sudden they’re back.

Grant: Yeah, they’re back to a hundred.

Buck: Why is that?

Grant: I think I don’t know the answer to that question, why that is? You know I think you know you’re gonna tell me it’s some mental decision to attract what I don’t know. I just know this what people need to be you know, when we talk about financial illiteracy in this country, the first thing you think is some urban kid, Baltimore inner city, they doesn’t know how to balance a checkbook. Okay this has nothing to do with checkbooks. This has got something to do with the debt. The data that we have is incorrect okay? So the the the data the data has been skewed by institutions that benefit, by us moving in a certain way. Anybody thinks that we’re not being manipulated by agendas of the big boys doesn’t understand promotion and marketing. So banks were built, houses were built for banks. They weren’t built for people. The IRA and the Keogh, that whole scam was put together for Wall Street. It was not put together to retire off. Wall Street’s going out tonight drinking freakin $28 martinis because you’re waiting for your retirement money for 30 years. So anybody that is not willing to, like the nightmare, the financial nightmare will continue for people that refuse to wake up. So, here’s one okay don’t borrow money, unless you’re going to college. Harvard’s got thirty eight billion dollars worth of endowments. They own every piece of real estate within like a 12 mile radius of Harvard, and by the way on top of that real estate is not land and trees, it’s either retail, Starbucks, little retail shops they’re leasing to ownersm or it’s a house that they can provide housing or like their income driven the endowments the smartest money on this planet goes for cash flow. They don’t go for cash. So even that cash, cash is king that idea, that permeates society. I could go into a room of ten thousand people and say, “cash is…” and they would all say “king”. Now cash, cash is garbage. Cash flow, that’s where Warren Buffett knows, Bill Gates knows, Apple Computer, Amazon’s Jeff Bezos is the cash flow king of the universe. So these guys that we talk about scale and so big and there’s so much wealth, ok? The thermostat, they just broke the wealth code basically. They’re not thinking about middle class. They’re not thinking about scarcity and they’re thinking about how do I scale so that I can service the planet and provide enough income. By the way all these guys have more money than they can possibly consume themselves. They all end up giving away and doing good stuff with it. So I don’t know where the mindset comes from. I know this, it doesn’t work, that’s the thing that people need to take away. Today 500 grand in Silicon Valley means you have about 80 grand left over after taxes in spending.

Buck: So how do you determine, you know we talked about the you know the the high paid professionals that I have, who clearly don’t have enough to quote unquote retire. How do you determine how much is enough? Is that really just about, ultimately are you just measuring it in cash flow? I mean it seems the the easy way to do it, right? But then I have some people who say listen, I make you know two hundred fifty thousand dollars a year and I have you know so much to invest. It would take me forever to get back to that number. So how do you do it?

Grant: My first target was that I got good at one thing, right? I wasn’t a doctor or chiropractor or dentist. I didn’t have the opportunity because I didn’t study for it to earn four hundred grand a year right. So my first target was I want to earn as much passive income from my investment as money that I work for . So if I’m a doctor making 400 grand a year, I’ve got to figure out how to bank enough money to have enough investments then I get thirty five thirty eight thousand dollars a month in free cash flow. That would be my target. Now once you say that you’re like okay what investments do I go to they can provide me with $38,000? About how much money would I need to invest? Now I’m starting to be driven by that extra energy to work okay. This isn’t about an amount now, because everybody’s quite, everybody asks the same thing. When’s enough, enough? It’s not when’s enough enough, it’s where’s the enough coming from? And so I want my passive income based on the tax code, I want it to be passive income not earned income. I’m charged at 20% so I can make the same money and end up with with with a hundred percent more money basically and and and then it’s gonna be what investments do I want? Well I’m not buying stocks because I want cash flow. I don’t want to lose money that’s Warren Buffett’s first rule, don’t lose money. Well then I’m not buying Ford stock and I’m not buying Facebook stock and I’m not gonna buy Amazon stock because they can go down and then I’m looking at okay well I’m not gonna buy gold because gold doesn’t provide income. I need income every month so I can’t buy AT&T; stock because they only pay every quarter. This is how I ended up in the real estate space. I don’t want to lose money, good. Buy real estate. I can’t lose money don’t over leverage the real estate, I won’t lose money. I want to be paid every month that’s real estate. Real estate that has property on top of it. I can’t buy land, I don’t trust retail, so that’s how I ended up you know in the beginning I had three little businesses. I put all my money back in those businesses, until those businesses were, puking out so much money that I couldn’t spend on advertising and marketing, are servicing my customers and then I took that money and I put it in bricks.

Grant: How long ago was that, Grant? When did you start buying real estate?

Grant: Yeah I was buying real estate when I was 34 years old. I think I bought my first year when I was 33 or 34 years. I bought my first deal when I was 27. It was a single-family resident, didn’t buy another one of those because it didn’t work. I learned a big lesson it was a big mistake, I’ll never do that again. And then my second deal I think I was 31, 32 something like that and it was 48 units, 30 days later I bought 38 units, 90 days later I bought 90 units. So today I got about 5,000 units, and over time as long as you don’t over leverage, as long as you buy in good locations, as long as the properties are big enough, by the way the number of units in real estate the number of units is the most important number in real estate. It’s not the cap rate, not the ROI, it’s not the return on capital, it’s not the cash flow, it is the number of units. Is where me and me and Robert differ a little bit. I don’t buy single-family homes. I don’t want 600 single-family homes like Deane Graziosi. So you guys, I want two properties with 600 units.

Buck: Yeah, yeah and is that in it for scale, right? I mean ultimately that’s…

Grant: Well because I can weather, I can weather problems, right? I don’t what six hundred closings either. I want two closings in the 600 units. I want the best debt available on the planet which comes with apartments by the way.

Buck: Now yeah actually and that’s a lot of you know the philosophy that you know we talk a lot about on this show. Specifically you know so how do you get involved with that if you’re a busy professional and you know that has led us to create you know a group of people we call the Accredited Investor Club. And of course that’s only for people who are accredited investors. A large percentage of my listeners are and we’ve been able to figure out how to create certain you know turnkey opportunities where people might be able to you know put 50, hundred thousand or two hundred thousand dollars in, but then get exposure to 200, 250 doors instead of you know… Is that you that is that kind of the the model that that you ended up in or were you just buying properties on your own? Did you ever use investors or…

Grant: Not until a year ago. For 24 years, I didn’t use investors, other than maybe I remember I borrowed 90 grand from my mom to finish a deal once. I was 45 years old, I was 90 grand short, I’m like you gotta lend me the money. I didn’t make her a partner, I said look I’ll pay you back as soon as I can, you know, I’ll give you ten percent or something, whatever, she did. She didn’t care. By the way it’s easier just to borrow money from people than make them a partner in the deal.

Buck: Yeah well they say you know equity is the most expensive thing to give away, right?

Grant: So yeah yeah so about a year ago because of my social following and because I have so many people that want to do things with me, we expanded our offering to people outside just my family members. Like my twin brother was investing with me because he didn’t have the time he’s running a company in Europe, he makes a lot of money, he you know he’s got he’s got money sitting around. He tried to go do the real estate game that I do and after three days of shopping properties like I have no business doing this. I don’t know what I’m doing, I don’t know what I’m looking for, I can’t get people to call me back. He’s got a company that he could sell for hundreds of millions of dollars. So now he gives me the money and I invest it. And we started opening up to really close executives in the companies and customers. And what happened was people that know me, and know I’ve been doing this, the amount of people that were interested in doing this was like mind-bogglin. I do a real estate show every Monday out of my office and it’s our number one show of all our shows.

Buck: What’s interesting is — is that like and I like that you talk about multifamily. And the funny thing is you know a lot of people including myself really were inspired by Robert Kiyosaki’s books and stuff. And the and and they come out more often than not thinking that the thing to do is go buy single-family houses. Well the funny thing is, that that’s not what Robert does. And just to be clear he never really says it’s what he does, and when he says you know what is Rich Dad Poor Dad all about? He says it’s an accounting book it’s about cash flow. That’s really what it is, about cash flow, yeah right. Really so um but what I want to talk to you specifically about real estate…

Grant: Can I interrupt you, something you just said is really, really important. People should they should watch what people do not what people say. Warren Buffett, okay cuz somebody said how much money you have in the stock market? Dude I don’t have any money in the stock market. I will never put any money in the stock market. And they’re like well that’s not what Warren Buffett does. I said no, no you don’t understand. Warren Buffett says you should invest in the stock market but he doesn’t. He buys companies. And he only owns 60 companies, not very diversified for a guy that’s worked 80 billion dollars. So 60 companies over the period of his lifetime is almost nothing and only he only moved from one company to another because he couldn’t take a bigger position in the company without changing the bylaws basically of coca-cola or American Express. So people should see what people do, not just what they write or talk about.

Buck: Yeah I mean I always go back to the idea that the wealthiest families in the world whether this Romney’s or the Rothschilds they’re not buying mutual funds.

Grant: Yeah they’re not buying mutual funds. They’re not buying ETFs. And if they are, by the way that doesn’t mean you can. They’ve already created enough wealth that they’re in conservation mode right now. And if you’re creating wealth you need to be in risk mode, without losing money. By the way you got to be in risk mode if you’re a doctor. You want to be in risk mode without losing, without the chance of losing money

Buck: Yeah so let’s talk a little bit about that because right now I’m assuming you would agree that we’re pretty late in the cycle and in the markets and real estate especially multifamily and I’m not sure if that was specifically is your area but that’s you know what I look at mostly, it’s pretty frothy. You know my my focus is because of that been to be somewhat moderate on leverage and really focus on value add, what’s your you know what’s your assessment of where we are in the market and you know, how do you how do you approach it?

Grant: I think the value add’s frothy. And I think people need to shift into looking at newer product right now.

Buck: Like developments?

Grant: No I mean I’m not a developer because I hate timing and builders always go bust it if you look at for the last 80 years, builders almost always go out of business. So I don’t want to build anything. Sam Zell used to do like, Sam never they never would the first ones in. So I wait till somebody build something stabilizes it and then then I’ll buy it. So I personally today would rather a 5% return on a new deal than a 6% return on a value add.

Buck: How much leverage do you…

Grant: We need sixty to sixty-five percent. I’ll never over leverage anything I’m extremely disciplined, we look at a hundred deals to buy one in real estate it’s not just what you buy it’s what you don’t buy. Never over leverage. Cash flow for the first month, and then we sit in wait okay we just sit and wait. By the way a five percent return on a brand new deal today that is just so everybody understands puts into context that’s 20 times what the bank’s paying you in a money market.

Buck: So is it a buy and hold strategy long term?

Grant: For sure.

Buck: So buy and hold forever ?

Grant: Buy, refi, hold. It will probably be like this, buy, refi in the future maybe five years seven years down the line, refi, grab all our dough out and then sell.

Buck: Yeah one of the interesting approaches I like Ken McElroy who I invest with as a private investor as well as he calls it harvesting money from the property. So I’ll go in and the idea is we’ll do some you know we’ll do a little value add will hold it, cash flow and then we refi and then we hold it, and you know seven or eight years goes by again and guess what we refi again. And we just keep doing that so it’s harvesting money. So is that the plan for the so you have a fund now that I don’t know if it’s launched yet or if…

Grant: Yeah you know we’ve offered, this is our fifth fund, our first three funds were oversubscribed in a very short period of time…

Buck: It’s regulation crowdfunding so anyone can participate is it…

Grant: No no it’s all Reg-D

Buck: Oh so it’s Reg-D, so it’s a credit investors only.

Grant: Accredited investors only. About a hundred million dollars was raised. Our fourth funds a hundred and twenty five million, we think that that will be filled before the end of the year, that’s Reg-D. We’re also launching a Reg-A fund because ninety seven percent of the people that follow me are not qualified so we’re opening that this month. I should be approved with the SEC here in about ten days that’s fifty million. I think that’s going to go in less than five days. In five days I think fifty million will be filled. I wouldn’t be surprised if it doesn’t fill in 24 hours.

Buck: Right, right so that again that’s a regulation crowdfunding, just so people know what that is, it is a fund that’s open to pretty much anyone and you don’t see those as often and obviously it’s a big, so it’s a fund and again you’re looking at just to summarize this newer properties…

Grant: But it might not be. I’m looking at two deals in Phoenix right now I just left Scottsdale, Phoenix. Looked at 4,000 units in Phoenix just last Thursday and Friday. Flew to Houston, looked at another 1,600 units there. Like we shopped the entire southwest, from the southwest all the way to Miami. And so like I’m gonna buy 900 units in Phoenix, it’s gonna cost me about a 150,000 a door, it’ll be a hundred and thirty million dollars rental deals, all value-add.

Buck: Yep fantastic. So where can we where can we learn more Grant? Where can we well first of all we’re if we’ve if people are interested in the you know finding out more about the funds, where can they do that?

Grant: Go to CardoneCapital.com that’s the name of the fund. And you know one thing I wanted to say to you when you said yeah you don’t see many Reg-A funds, I didn’t know this right, we just again we just started raising money about fifteen months ago right and I kept asking my staff, I’m like why can’t we let other people in? Our average investor puts 400 grand a mont. These people have watched me for years. I worked with Chrysler and I’ve worked for Facebook and Google and like some big companies. Ashley Furniture, Morgan Stanley like they’ve hired they pay me millions of dollars to to go in a sit and assess their customer satisfaction, their customer experience. So these guys have watched me for years so when I offered the funds a lot of these are CEOs a lot of them are real estate investors, hey man I’ll give you a million, I’ll give you a half a million, I’ll give you 200 grand. But I’m like but what about all the other people? What about the little guy, you know what about, because my mom literally couldn’t invest in my fund, So I said what about these other people? They’re like you don’t want to do Reg-A. You don’t want to do non-accredited I said what why don’t I want to do it? They’re like because there are a lot of trouble. I said well what does that even mean, right? If I don’t want any trouble at all, then I would never raise a penny. I said but what does that mean? They’re like well they’re they don’t know what they’re doing so they’re gonna ask more questions. I said look I got yeah I got guys that have tens of millions of dollars and don’t know what they’re doing. So I said what’s the deal? And then I found out how expensive it was to quick create a Reg-A fund. It cost 15 grand, this is really important for your viewer to understand, okay? It cost $15,000 to open a Reg-D fund. It costs two hundred fifty grand to offer a Reg-A. And then I started asking why does it cost so much money to do the Reg-A? Because Wall Street does not want the everyday guy diverting money from the 401k to Grant Cardone. They don’t want any competition. And so the reason we offered the Reg-A is because look I got a lot of people that follow, 11 million people follow me online. I was a little guy, I still think of myself as a little guy. I came from nothing. And for me to not have, for me to only cater to wealthy people I just think it’s wrong. So that’s why I did the Reg-A. I just wanted to address that.

Buck: You know that makes a lot of sense. And you know hats off to you for that, because they do think that you know the cost is prohibitive in many cases and especially you know, you know it’s impossible to do an asset specific fund virtually for that. It doesn’t make any sense so…

Grant: And the goal is, I’m gonna raise a billion dollars in cash in the next three years. I’m gonna raise a billion dollars in cash, I’m gonna give it all back to the investors basically. I’m not a fee driven entity. My play is not on the fees of the property my other seven companies pay me well, okay they pay for the plane and my fun and my trips and my expansion. The real estate to play with the real estate different than other real estate companies is, if I can raise a billion dollars through crowdsourcing, social media don’t pay any fees out. Like I’m paying no one anything. That means if I raise a billion, a billion goes in. That’ll give me three billion dollars worth of assets. And if I can pull this off, Wall Street will open the vault and say can we give you another ten? And that’s really my play on the deal.

Buck: So love the love the attitude and the mindset. Where, you know you’ve got you’ve got obviously Cardone Capital, but if we want to learn more about you and your strategies mindset etc., where can we go for that?

Grant: Yeah look, you go to GrantCardone.com/freebooks I have a link there, they can grab the real estate book for free. Anybody want invest with me I’m like hey please read the book first so that you know what I’m doing, what I’m looking at, how we buy things. I’m not buying storage, I’m not buying retail, we don’t do strip centers, I don’t do land, I don’t develop, I don’t do condos, I buy one product multifamily rentals. I think that the story lasts for a long time. I think it is frothy right now, but I don’t think it’s over. I think that we’re in a, I think they’re we’re in a super cycle right now for the renter and it’s not going to change. People are not gonna become homebuyers again.

Buck: Well just your point, you know I had I had Doug Duncan, who was chief economist of Fannie Mae on a few weeks ago and he talked about one of the things that’s a driving force for for apartments and that is that even though we might be a little frothy, like we said maybe the you know the markets have been expanding for so long, we’ve also got a housing shortage, and so that demographic force is also something that hopefully is going to keep us…

Grant: And people need to start shifting what is frothy by the way, and what’s driving the froth. Okay because first of all there’s a tremendous amount equity, there’s a shortage of affordable housing in this country. Then you’ve got to redefine what affordable is. It used to be $800 okay? Affordable in Sugarland Texas outside of Houston. If I can buy a brand new deal and rent it for 1,600 bucks a month in the neighbor, the housing around me is a million eight, you gotta you start doing a different math here. The the rearview mirror will not serve you in your local market. You’ve got to look through the windshield. And when we look at deals when we buy deals today, if I find a great asset in a great location, I’m just going to overpay to get it. Because my horizon is not three or four or five years like the guy bidding against me, and my my motivation is not the fees, my motivation is I’m looking for doubles and triples. And if I got a sit on four or five percent to get a double or triple I feel great about that. And lastly is the inflation factor we still have it. Nobody’s coming to terms with what Warren Buffett said is the most misunderstood economic factor in all of economics, which is inflation. Steel, glass, concrete, labor, it looks to me like they’re going up.

Buck: And so yeah man we got 21 trillion dollars of debt, inflation is not going anywhere. It’s gonna be encouraged. You know you can either you know increase GDP or you can inflate. And so we are inflating, is a lot easier we’re gonna keep doing that.

Grant: And we have five trillion dollars sitting in bank accounts just in America, we got another five plus trillion dollars sitting in equity and homes. That’s the thing that needs to be confronted right now. When people talk about the froth. That five trillion dollars, nobody should have equity sitting dead in your house right now. That is the most expensive capital on this planet right now. That Americans are fooled into thinking I got two or three hundred grand of equity in my home and and I’m not using it. What you should, you shouldn’t even have a home. You should have that money working for you.

Buck: Your home is not an asset, is what a lot of people would disagree with that, but I agree with you a hundred percent.

Grant: Right, rent where you live and own what you can rent.

Buck: Fantastic thanks so much for being on the show today my friend appreciate it.

Grant: Thank you.