Easy Deals

You know the “Buy Low, Sell High” strategy that many investors adopt, especially on the stock market?

The idea is that when the stock market is crashing, you buy as many shares as possible at a discount.

And when the bull market returns, you make a hefty profit from selling the shares at their peak price points.

Well, I’m not licensed to give you financial or investing advice, so make sure to always do your research on any investing strategies you hear about. *Please read the full disclaimer below.

That said, let me tell you one thing.

This strategy does NOT apply to multifamily real estate at all.

(By multifamily, I’m talking about apartment buildings of 16 units and up.)

So instead, I want to share with you an important principle that even the most experienced real estate investors tend to overlook.

Pay close attention to this statement:

If your deal is easy to buy, it’s likely going to be hard to get out of. 

Let that sink in for a bit.

It’s tempting to buy these deals when you’re broke – but as you’ll see in a second, it’s not what I would do if I was starting out broke.

What I mean is – if your deal is easy to buy:

⇒ You’ll find it difficult to love the deal.

⇒ You’ll find it harder to exit.

⇒ You’ll find it harder to refinance. 

⇒ You’ll find it harder to get your money back.

And when I talk about deals that are easy to buy, I’m referring to:

⇒ Deals that you have ZERO competitors on.

⇒ Deals that you got from bank foreclosures.

⇒ Deals that sellers are selling at huge discounts.

Because what happens when you get stuck with an easy deal?

1) If you have zero competitors on the deal, that means you’ll probably have ZERO future buyers and you’ll find it tough to exit the deal.

2) If you buy a foreclosed property where the owner couldn’t keep up with loan payments, it’s unlikely it created enough CASH FLOW for property maintenance.

3) If the deal has already fallen into disrepair and isn’t producing monthly cash flow, you’re definitely not going to be 100% in love with it.

4) If you don’t 100% love the deal now, and you want to get out of it – it’ll be too late then.

Because you bought a deal that nobody loves.

So stop looking at easy deals: single-family homes, flipping, wholesaling, duplexes, and fourplexes, especially if they’re deals no one else is looking at.

You need to think long-term and stop trying to take shortcuts.

If I were starting over and didn’t have the money to invest in bigger deals right now, here’s what I’d do:

⇒ I’d be patient, because my finances aren’t ready yet.

⇒ I’d go out there and hustle. I would NOT underestimate the importance of my primary job.

⇒ I’d slowly increase my income streams, starting with looking for ways to earn more at my primary job.

⇒ I’d set aside my first $100K for real estate in a sacred account I can’t access. (And I’d stay broke so I’d keep hustling!) 

Why $100K? Because I know from experience that it’s just enough money for people to take me seriously in real estate.

⇒ I would keep studying deals and real estate, but I wouldn’t buy just YET.

Here are some questions I would ask myself when studying deals:

⇒ Do you love the deal now? Do you love it next month? Do you love it 10 years from now?

⇒ Do you have a buyer pool? Who will likely be the next buyer when you exit the deal?

⇒ What is your targeted return on the deal? Does it cash-flow enough?

Because if you want to succeed in the real estate game, keep this in mind ALWAYS:

If your deal is easy to buy, it’s likely going to be hard to get out of.

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.

We are not attorneys, investment advisers, accountants, tax professionals or financial advisers and any of the content presented should not be taken as professional advice. We recommend seeking the advice of a financial professional before you invest, and we accept no liability whatsoever for any loss or damage you may incur.

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Star of Discovery Channel’s “Undercover Billionaire,” Grant Cardone owns and operates seven privately held companies and a private equity real estate firm, Cardone Capital, with a multifamily portfolio of assets under management valued at over $4 billion. He is the Top Crowdfunder in the world, raising over $900 million in equity via social media. Known internationally as the leading expert on sales, marketing, and scaling businesses, Cardone is a New York Times bestselling author of 11 business books, including “The 10X Rule,” which led to Cardone establishing the 10X Global Movement and the 10X Growth Conference, now the largest business and entrepreneur conference in the world. The online business and sales educational platform he created, Cardone University, serves over 411,000 individuals and Forbes 100 corporate clients throughout the world. Voted the top Marketing Influencer to watch by Forbes, Cardone uses his massive 15 million plus following to give back via his Grant Cardone Foundation, a non-profit organization dedicated to mentoring underserved, at-risk adolescents in financial literacy, especially those without father figures.