Have you tried “investing” in a single-family home to maximize your profit potential? Fixing and flipping? Wholesaling? Duplexes? Fourplexes?

It feels good in the beginning, doesn’t it?

You think you’re killing the real estate game.

You pick up 10 units… or 40 wholesaling contracts.

You make $28,000 off a contract.

But at the end of the day, you only made $28,000.

And you have to go find another deal… and reality hits you pretty soon.

Now you’re probably wondering, “How am I going to scale this?”

“How do I even find any more units?”

“How do I find a deal that actually explodes my profit potential?”

And with the recent, frequent hikes in interest rates… it’s even more difficult to scale now.

Why am I telling you this?

First, let me give you a little recap of my history in real estate.

In the beginning, I was only “studying sideways”…

Which means I studied people in my neighborhood who had bought real estate…

I learned from my uncle, who had accumulated Section 8 housing…

So I thought all I could afford were Section 8 houses or foreclosed homes…

And I thought I had to buy somebody else’s problem.

Plus… I was studying guys who were still doing real estate as a full-time job…

They were not investors… 

They were property managers picking up rents… maintaining property… and managing tenants.

So they were making earned income, not passive income.

Anyway, when I started to accumulate real estate, I was still running two other businesses…

I spent about 200 days a year traveling around the country trying to grow these businesses.

And like many real estate investors, my first deal was 1 unit…

My second deal was 2 units…

But three years later… My third deal was 48 units.

Why three years?

I was studying the game.

And I looked at thousands of apartments but didn’t buy them.

I studied people who’ve built empires out of real estate.

And while the first two deals made me slightly over $50,000…

My third deal made me a multimillionaire — and exploded my profit potential.

Why?

Scaling.

My third deal was 48 units, which means 48 sources of passive income each month… 

And it was one deal, one location, one closing… Unlike my first and second deals.

(*Results are not guaranteed, and investing involves great risks. See full disclaimer below.)

I also think contrarian wherever possible.

I watch what other people are doing, particularly big financial institutions.

And I typically shy away from whatever their groupthink is.

For example, nobody was investing in Tucson, Arizona in 2004 and 2005.

Most investors hated it… so I decided to go check it out.

My theory has always been that when people hate a location, there is likely going to be opportunity for cash flow.

And so, I flew to Tucson on a Tuesday… 

By Friday, I had 2,200 units under contract… each paying me about $800 a month.

I realized my real estate business exploded more in 1 week… than my other businesses in the 10 years I’ve had them.

(*Results are not guaranteed, and investing involves great risks. See full disclaimer below.)

I remember thinking, “I’ve finally grown up… There’s a real game to be played here.” 

My real estate business will end up being the business that saves me.

It would be the business that would work for me… when I couldn’t work anymore.

And I believe this has the potential to happen for anyone who wants to scale their business into these big numbers.

This could be a very simple game… simpler than building a business.

It doesn’t matter if you’re broke, you don’t have a credit score, or you have a terrible credit score…

It doesn’t matter what your race or gender is…

And it doesn’t matter if you’re younger or older…

Exploding your profit potential starts with finding a great 32+ unit deal in a great location, with great numbers.

(*Results are not guaranteed, and investing involves great risks. See full disclaimer below.)

Network and get the attention of someone who has the money and the credit score to do the deal with you.

You could also solve a problem for the seller-owner… 

Such as taking over the property management until their loan expires, and giving them the same monthly cash flow. 

Once the loan is due, you could refinance, and the owner could then sell their property to you.

Lenders and other investors also know a great deal when they see one.

Find that great deal, and getting your debt and equity will likely be less of an issue.

When reduced to the simplest steps, my entire process goes like this: 

Deal → Debt → Equity

Stick to this sequence, and you could go very far in multifamily.

And no matter what you do, remember to:

• Think contrarian and consider unusual markets
• Think big and skip the small deals as much as possible
• Remember to SCALE.

Be Great,

Grant Cardone

Disclaimer: This content is intended to be used for educational and informational purposes only. Before investing, you should always do your own analysis based on your own financial and personal circumstances before making any investment. Grant Cardone is an industry expert who has been investing for over 30 years and his opinion is based solely on his own personal experience and circumstances. Individual results may vary. You should perform your own due diligence and seek the advice from a professional to verify any information on our website or materials that you are relying upon if you choose to make an investment. Investment involves great risk and there is no guarantee of performance or results.

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