He’s actually a terrible salesman and knows little to nothing about sales. He has an interview with Jordan Belford the wolf of wall street guy and shows his lack of sales knowledge. Pretty much just a bullshitter who found a way to get rich
Not to discourage you my friend but. This is not a development or bridging finance. With refinancing even if the value went up by some magical number of 200% he will be able to refinance that whilst only leaving 35% of its new value but not from the original. I’m in finance doing development and bridging finance so I have people refinancing all the time. So he is right.
Am i missing something, The lender refinanced him and "gave" him 60 million, as a loan. He didn't make anything he just now has more to pay back. Now if he can really sell the property for the 250 million hes made money. But refinancing a property isnt 3xing your money. Its 3xing your debt.
@@ZIDIIKShis deposit was 15 million listen carfully he refinance nd got 60 million tax free the 45 million is what paid off his whole loan off, if he refinance again he can get up to 250 million now with cash flow still going
@@xXxSTEELTHRIDERxXx deposit was 15 million. He got 60 million more than the loan. So he refinanced his loan from $45 million to $105 million. Yes it is tax free $60 million but it’s a loan, he owes $105 million still. And now the interest isn’t tax deductible on the building because he’s using it to fund his lifestyle.
Exactly. People don’t understand this. And those repayments are huge so you better have multiple sources of income as security or they won’t be giving you a damn thing All he essentially did was refinance the loan and get an extra 15 mil to play with
So he bought a property for 60m sold his house and put 15m down. Owed 45m they 7 years later refinanced for 105m and took 60m of equity out. Now it’s worth 250m. He expects us to believe in 10 years the property went from 60m to 250m in value and still managed to cash flow that entire time without putting any additional money into the building. His tenants must love those annual rent increases.
I live in South Florida I know people that live in buildings hes purchased. Apparently he is a very shitty property owner. First thing he does is trim down the employees and run the buildings barebones. Prices go up and its a pain in the ass to get anything fixed.
@@ACraig531 well he buys condo buildings so they aren't necessarily rentals or if they are rentals they all aren't owned by him. He might own like a third of the units to collect rent on plus the buildings fees. they increase condo fees and fire all the staff.
@@funkyjamma he buys multi-family as he preaches constantly. Multi-family are rental apartment buildings where the entire building and all of the apartments inside it is under the same ownership. Condominiums “condos” are units in a building but all under individual ownership.
@@funkyjamma buying a multi building with 200 “apartments” he owns everyone of those 200. Buying a building with 200 condos he owns the building but not any individual condo unless he buys it, the same as buying a home.
Bought an apartment complex with a loan of $45m. So you can assume he did this 15 years ago (post 08/09), which would have meant a 20% down payment was needed ($9m) which was the equity from selling his house. Ok but the big question is…where did he get the money to buy a $9m valued house?
Everything he said is true, the only part is selling a house and having 15mil in equity to put as down payment for a building seems crazy, the process is real but it takes longer if you don't have some serious money to start
Marketing and he has done it well. I used to train sales people and told them to take their sale and start at one million a sale. Of course it went up as you can always sell less but if you start at one million, you can come down. He did his 10 x strapline. He rode a marketing wave online, and thats what I think gave him money. Selling dreams.
That’s called a cash-out refinance. The reason that there is no tax implication for the additional cash is that it’s a loan that he needs to pay back eventually.
The holes in the story are so huge you could fit a semi through it. He had a lot of equity in his house and he sold it, and he bought an apartment building for $15 million. That’s what he had in it and they were willing to give him 45 million, and this is the best part he says it’s still cash flow. There’s no fucking way in hell he would’ve had to have bought 25 apartment buildings to get $45 million on top of 15 million and still cash flow. Yeah, you might get $45 million but your payment is through the fucking roof.
I bought a pizza and took 7 slices and left 1 for the rest of my friends. When they complained about the distribution of pizza I told them to increase their value in the market. This is how you assert your dominance as a capitalist.
For all you regular people out there that dream of becoming rich, all you need to do is go to the bank and withdraw the $15 million you been saving, and then use that to make $45 million and then you’ll be rich
You got it. That’s how they become rich they take loans out pocket the money then let tenants pay the loans over time. The rich basically are buried in debt and love it. That’s what sets them apart from the population how they view debt
His apartment must be making serious dough monthly for him to cover his installment. Refinancing the loan from 45mil to 105mil still doesnt exempt you in not paying the new loan which will be higher than the previous installment. The 60mil is not free money, its still a loan. I'm guessing he would've invested the 60mil and hopes his apartment still generates cash for him in rentals either long term or short term to cover his loan installments
I can’t believe I never thought of this…all I need to do is take out 15 million in equity on my house, buy an apartment building, and BAM, they just give me 45 million and let me keep the building…this getting rich thing is so easy
This dudes advice is always the same shit "Hey kid, buy a shopping centre, then use the monthly revenue to buy a 50 story apartment complex, the refinance it and pull out equity to buy an airport" Like fucking hell dude
Should say the greatest purchase I ever made was as a house because the equity I gained gave me enough capital to buy my first apartment building lol what a Harley Biker
Buying that house wasn’t a mistake if it got you the equity to buy the apartment building. It was a good decision that paid off literally!!!! Then helped you with your other work. Come on bro. Buying a house ain’t bad. It might not be the best. But it ain’t bad.
He's not trying to retire. He's trying to grow money so if you keep that mindset what he's saying makes sense. But for the average person you would get out eventually
With his math you buy a house, sell it buy an apartment building then banks call you and give you 45 mil but let you keep the apartment property then you own it then it’s worth 250 mil. Ok.
Uses depreciation to avoid paying taxes on rental income. Never sells or can do like-kind exchange to avoid paying capital gains when buying and selling properties. When he dies, his heirs get step up in basis and can sell with no tax.
i like Grant Cordone but he will NEVER convince me that owning a home is a bad idea. And he will never convince me that HE doesn't own a home. Just because your properties are in the name of your company doesn't mean you don't own it!
It's called a cash out-refi, one of the most common tools any lendor will offer. Grant has a way of making simple things sound illustrious. What he should have done is just have the property re-appraised and take a line of credit against the new value. The lendor just upgraded you from a 15M loan to a 60M loan lol.
Yes. Very simply, a cash-out refi is taking out most of the equity in your property without paying taxes on it. However, you are starting the loan over again at a higher amount. Be curios to know what the new monthly payments are?
Dude you took the equity that grew From your first home that you “ you should have never done” Then You bought an apartment building Sounds like it was a good mistake
Buddy didn’t get $45M…he took on $45M of additional debt that would ultimately need to be serviced. Real estate seems like a giant shell game to me. Eventually the chickens come home to roost.
But they pay interest on what they loaned unless it's paid back in full or the value increases more than what he has to pay back he owns shit and no parties
I followed his advice and bought myself a 36-unit apartment in Los Angeles. I increase the rent by $200 and made no improvements whatsoever. My cash flow is around $2 mil every month thank to Cardone!
