Refinance

Allows communicate about Grant Cardone and why I really don’t acquire sixteen+ unit properties





I’m typically asked why I’m not investing in sixteen+ unit multi-family properties like Grant Cardone hugely recommends. Although I have very little but massive regard for him, and whilst really don’t disagree with him or anything he says, this is why I have not yet ventured into sixteen+ unit properties and as a substitute, why I have been investing in 1-four unit properties around Southern California. Enjoy! Add me on Snapchat / Instagram: GPStephan

Disclosure – I’m an avid subscriber of Grant Cardone and really take pleasure in what he puts out there. In real estate, there are a million approaches to commit – it’s certainly not a just one-measurement-suits-all tactic. Although you cannot argue with his accomplishment, and whilst I really don’t disagree with him at all, these are my perspectives and factors of perspective for the area and sector the place I’m investing. Every single sector is diverse and demands a much more customized approach based on your income stream ambitions, extensive phrase outlook, and spot. What Grant does is exceptionally effective, and I have very little but regard for him, whilst my choice so far – provided my rate assortment, area, and variety of offers – has led me to 1-four unit properties.

What Grant says (summed up to a few essential factors):
1. Get minimum of sixteen units. The much more units you have, the much more tenants you have paying you, which spreads out your hazard of getting rid of rent all through emptiness.
two. Economic system of scale can help the place you have just one single creating to mend and services with many tenants.
three. With sixteen+ units, you can employ a manager.

My thoughts:
1. It is certainly true that possessing much more units lessens your hazard of getting rid of a hundred% of your rent, as you would if you had a single tenant paying you a hundred% of your rent. Having said that, from what I have discovered, emptiness rates are about the exact in between sixteen+ units and significantly less than four units. It is difficult to estimate emptiness rates as it solely relies upon on the area – and can range wildly – but in between two spots in a related area, they must each have about the exact emptiness charge. So whilst I certainly agree with him that it spreads out your hazard, you must expertise about the exact sum of vanancy in between both of those two-four units and sixteen+ units.
two. Economic system of scale is another legitimate issue. Having said that, hold in head that with sixteen units, you have sixteen kitchens, sixteen toilets, sixteen issues to split. The value to resolve just one rest room for a tenant paying $450 per thirty day period is the exact as it is to resolve just one rest room for a tenant paying $4500 per thirty day period. Owning just one creating can be a Large amount less difficult to handle from the standpoint of possessing just one single area, but it does not automatically suggest that it’ll be significantly less do the job than a high paying two-four unit spot.
three. Hiring a manager is important for something with that numerous units. This must be factored in your charges and anticipated charge of return. I self handle my 1-four unit properties and it does not acquire much more than a few hrs per thirty day period, relatively manageable. This would be a lot much more if I ended up to handle a sixteen+ unit spot on my personal.

For Grant, I thoroughly fully grasp why he prefers greater offers – when your dealing with $10m+ properties, the rents you get on a few units for $10m almost never ever tends to make sense…. it does not make perception to acquire fifty properties to rent out. That would be a enormous hassle. In the greater offers of five million dollars or much more, possessing just one asset vs a dozen properties tends to make everyday living a ton a lot easier.

The detail that I have found is that it all comes down to your return. It is just funds. It is what will make you the most funds for your investment decision. And usually talking, they all are likely to average about the exact. You can enhance these returns by acquiring something that requirements do the job, renovating, and re-renting it out with higher returns – but you can also do the exact with smaller sized multi family or residences, it’s all the exact. For me, I have focused on properties and under-four unit properties for the reason that they’ve generated the best returns from the place I have seemed in my area. And for the reason that I’m not acquiring $five,000,000+ spots in LA, the under-four units make the most perception.

To sum issues up, I really don’t disagree with Grant but real estate is so area dependent that just one approach is not automatically better than another. It is hugely customized and at the end of the day, I go with what provides me the best returns for the place I want to commit. It all comes down to individual choice and the place you get the best worth.

Many thanks once more for watching!

For business enterprise inquiries, you can arrive at me at GrahamStephanBusiness@gmail.com

Recommended looking at:
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Your funds or your everyday living:
The Millionaire Authentic Estate Investor:
How to Earn Friends and Influence Persons:
Believe and increase rich:
Awaken the large within just:
The Reserve on Rental House Investing:

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30 comments

  1. You can pre-identify a 1031 exchange, tom wheelwight (robert kiyosakis CPA) talks about this. it helps you around the exact problem of selling 5 properties fast enough to buy one.

    Reply
  2. I've been watching your videos since 2017.
    Very pleased see how much the quality of your videos has improved. Really impressed and inspired. Keep doing what you do Graham

    Reply
  3. Graham — would love to hear an update of this video, especially now that you've interviewed Ben Mallah, have much for money, etc. Do you still hold the same opinion, and has your experience w the smaller units prepared you to take on a larger commercial housing complex?

    Best,

    Izzy

    Reply
  4. Chug every time he says grant cardone

    Reply
  5. so…other than capital expenses (roofs, hvac, etc) what's the difference between having 16 tenants in one building vs having 16 tenants in 16 buildings? 16 houses at $100,000 each is $1.6M…which is about the same as (maybe less) than a 16-unit building…at least around my parts.

    Reply
  6. You’re missing the main point of the gc method. It’s about 10X ing. Expanding your potential. The arguments are the same one is just stretching and more ambitious, getting you ahead faster

    Reply
  7. Shut up. Youre not on his level. We can talk about it when you get there.

    Reply
  8. hey bud, did I hear in one of your videos you refinanced your home to leverage that liquid cash and bought another property?
    IF so, I see that you now have TWO incomes however now you have a mortgage do you make just as much?
    Also, would you not want to have a paid for home, and grab that cash and put it in a mutual fund and get a bigger return than what buying another home will get you? does this make sense?

    Reply
  9. Yeah, I'm sticking with Grant on this one. Single family homes are DESIGNED for primary residence. Therefore I just flip it to someone who is gonna live in it. Apartment buildings are DESIGNED for renting. Use things for what they are DESIGNED to do. It's that simple.

    Reply
  10. Can a 4 house unit be bought for a million dollars in LA? And what would be the avg rent people charge for such houses/per house in the unit

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  11. People are retards… let me see how much of those haters that wrote this comment have acthally the money to buy 16 units…

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  12. You CANNOT compete against Uncle G. Your a clown 😂

    Reply
  13. I swear you said the same things like 8 times

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  14. I havn't ever seen a place for rent in an apartment setting that is 1/6 or 1/8th of the price of rent in a house.

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  15. My dad is a smaller fish he owns 5 rental properties plus a sixth house he he living in

    Reply
  16. Just the image of the video before I clicked to watch, shows you with a wall behind you and Grant Cardone with a 50 million dollars jet behind him.. you can have higher returns sometimes but I’m pretty sure Grant is richer than you

    Reply
  17. All real estate guys like to wear one million white shirt🤔

    Reply
  18. The name of the game is number of doors…

    Are you saying you’re stopping at one rental?

    If you’re serious about creating a real
    Estate business you want 16 units so whether 16 doors in an apartment complex or 16 single family homes. Either way you’ve got 16 toilet liabilities…

    It’s all about your level of thinking…

    Grants a BIG 10X thinker with 10X goals while, with all due respect you’ve got small, scarcity thinking. I love your content but you pride yourself on being cheap and saving every penny you’ve got rather than how can I get to that Billion Dollars!

    In this video you come off like your just justifying your small, scared strategy.

    Keep up the great content!

    Reply
  19. I'm neither of these, I'm an 11 unit.

    Reply
  20. U sir …have proved absolutely 0!!!! Lol

    Reply
  21. Bruh ..I've never heard of an 85% tenate…..if I have 1 door, and he leaves he's taking 100% of that rent pimp. Lol smh

    Reply
  22. Proportion to size. Let's say Investor A has 16 SFH and you replace all the roofs at $9000 each equates to $144,000. Investor B has (4) 4-Plexes with roofs at $25,000, equates to $100,000. Investor C has a 16 unit MFH and the roof cost $25,000. Yes you may want heavy capital expenses, but the win is in square footage to tenants because of the mortgage on the balance sheet.

    Reply
  23. Respect your opinion and your perspective and the topic, but without risk there’s no reward. Point blank bud. It’s about smart investing! Grant is a genius my guy!! If your scared to fail put your money In a 401 or Roth, and enjoy your retirement at 70. Grant is 61 and wealthy beyond our Wildest dreams! He believed in himself and did smart business! Grants quote: remember we were taught to big or go home? I say go big or go bigger!! Thank you grant! Don’t spend money, use money to make you wealthy! Grant Cardone!!!!!

    Reply
  24. Dude he made rich watch on about

    Reply
  25. Why would you be able to rent an apartment, but not a house?

    Reply
  26. I Love your Music taste dude.Not sure about what you saying.

    Reply
  27. I am in ireland on work permit i have only 20000 euro if i dont buy appartment now and wait to save 300000 to buy 16 unit.i have to live on rent its mean expense and its bad and due to inflation my money devalue..of i go for 2 bedroom appartment then i can rent one bedroom and earn money and save my own rent..bigger unit did not apply on everyone if we wait we miss today appertunity

    I need your views

    Reply
  28. Jesus man.. the first 10 minutes you pretty repeated the same 2 sentences like 20 times. Are you TRYING to make this a LONG video just for the sake of it ???
    I literally regret giving you a thumbs up on one of your videos , since now all this bullshit pops up.All you said in those 20 minutes can be condensed into 2 minutes MAX.
    I'm out.
    Get out of my feed..

    Reply
  29. I knew a doctor who had 1200 acres of ranchland, his taxes (including property tax) equated to 72% of his income. He tried rental property, the minister tenant he had subletted the house to someone who let their biker friends crash there. They had coffee can restrooms all over the place.

    Reply
  30. I feel you should start small build your skills/confidence at what your doing then grow from there

    Reply

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