Real Estate Investing School Podcast

Episode 125: Grant Cardone Unleashed—2024 Real Estate Hot Takes

Broadcast January 22, 2024

Episode Overview

In this vibrant and candid conversation, host Brody Fawcett interviews real estate mogul, entrepreneur, and motivational author Grant Cardone. They cover Grant’s personal story—from rock bottom to self-made multimillionaire—inspiration for the famous “10X Rule,” the meaning of work-life harmony, philosophies on money, and actionable real estate investment strategies for 2024. Throughout, Cardone’s signature directness and energy shine as he dispenses advice and “hot takes” specifically with newer and seasoned investors in mind.

Key Discussion Points & Insights

1. Early Hustle and Finding Purpose through Struggle

• Personal Backstory: Grant shares his journey from drug addiction and low self-esteem to success, using relentless self-improvement and hard work in car sales as a springboard.
  • “Worse than the drugs was the loss of self-esteem. The damage to my personal sense of worth. No confidence in myself. … You don't hit bottom. You go through the bottom.” (06:41)
• He emphasizes the importance of serving others and giving back as part of recovery and ongoing fulfillment:
  • “The second thing I did with my free time when I wasn't working, I was helping somebody else get off drugs... I believe I'm still reaping rewards today from stuff I did 30 years ago.” (14:53, 16:13)

2. The Myth of Work/Life Balance—Harmony over Balance

• Grant challenges the idea that entrepreneurs should seek balance between work and life.
  • “I built a bunch of harmony in my life, not balance. ... I built a life, not a business.” (03:59)
• Life integration is his core belief: involving family and interests directly in his work.
• He notes that those early in their career “haven't earned the right to balance” and need to do the “terrible, uncomfortable stuff” to build foundations first.
  • “A lot of people balance before they’ve earned the balance.” (05:08)

3. Building Confidence from Nothing

• Confidence is a byproduct of relentless discipline, learning, and positive obsessive commitment—even (and especially) in situations that are initially hated.
  • “I threw myself into a job I hated. ... I could never sit behind a desk.... I took all that drug addiction energy... and threw it into a job I didn't like.” (07:25–08:47)

4. Self-Education, Mentors, and Inspiration

• Cardone’s mentors were often authors and trainers he never met but studied obsessively (e.g., sales training tapes, books).
  • “Most of my mentors I’ve never met...I studied from afar.” (12:38–13:06)
• Brody and Grant agree that having a ‘permission-giving’ mentor—real or virtual—can transform one’s willingness to go big.

5. Giving, Impact, and Legacy

• Only a small percent of those who benefit from Grant’s materials ever pay him (“7%, maybe less”), but he measures true success by impact, not just financial wealth.
  • “I’ve reached a lot of people. ... I’ve monetized spiritually somehow.” (17:36–17:43)

6. Never Getting Complacent—Reinvention

• Grant describes the multiple “versions” of himself over decades, emphasizing growth requires constant change, including taking risks that may mean temporary setbacks.
  • “Every move I’ve ever made upward required me to give up something... It’s always required suffering or giving up comfort.” (27:27–30:27)
• He cautions high-earning sales professionals, or anyone at a “good” level, not to get stuck:
  • “What I had was so good... it was keeping me from doing something great.” (29:41)

7. Money, Discipline, and the Art of Staying Hungry

• Grant intentionally avoids saving or accumulating personal cash for security—he keeps himself “broke” by investing surplus in assets so that he’s always motivated to create more:
  • “I don’t keep money. I don’t save money. I don’t have a retirement account.” (34:46)
• Advocates for expanding your “budget” not just for consumption, but to include forced investing in assets, so you continue to hustle for growth.

8. Authenticity Over Likeability

• Cardone addresses his polarizing public persona:
  • “None of it is intentional marketing. ... I just tell people the truth. … I back up my big mouth, and more often than not, I'm right.” (38:01, 38:19)

Real Estate "Hot Takes" & Strategies

1. Why He Doesn’t Believe In Owning a Primary Residence (as Most Do)

• Grant debates Brody on the merits of homeownership vs. investing in multifamily or income property:
  • “The house has no cash flow. It has limited tax write-offs.... The average home in America... has gone up 1% a year, adjusted for inflation.” (52:32)

Homeownership vs. Income Property—Key Arguments

• Grant insists, “Anybody can buy a four-unit deal easier than you can buy a single family home. 5% down, live in one, get cash flow.” (54:16)
• Both agree: using owner-occupant financing to acquire income-producing property is an ideal path for new investors.
  • “I love that people should buy investment properties before they buy a place to live.” (56:30)

2. Investing Scale: Cardone Capital & Syndication

• Cardone describes Cardone Capital as a means for ordinary investors to co-invest in large, institutional-grade deals that outperform most small “do-it-yourself” deals, with transparency and distributions from day one.
  • “The thing that determines how much is made in real estate...is based on the property, not who owns the majority of it.” (58:23)
• While Brody points out that active investors can achieve higher returns if they learn and execute well, Grant underscores the risk and expertise required, especially in adverse markets.
• Warning about new syndicators: “There’s hundreds of syndicators that have failed just in the last two years that had to stop redemptions and distributions. ... They maybe haven’t even managed in a negative cycle.” (63:19)

3. What to Look for in Real Estate Investment (esp. 2024)

• Location is everything: “What part of the country, what spot in your city, and is there enough cash flow to support operations?” (64:31)
• Management quality and ability to take advantage of market corrections are critical.
• Cardone is currently targeting distressed office, multifamily, and retail properties in major cities—anticipates “the biggest real estate correction in my lifetime,” likely eclipsing 2008, but not affecting single family homes. (65:55)

4. Advice for Teaching Kids About Money & Wealth

• Cardone doesn’t give his kids money; they have contracts, work for the family business, get invested profits, and must budget their own spending.
  • “They have a contract for six years... That paycheck goes into Cardone Capital.... They only have $600 a month coming in, they’re spending $800.” (47:12, 48:31)
• Schools won’t teach true financial literacy – “If they're not, I went to college ... I knew less about money at the end than when I started.” (49:04)

Notable Quotes & Memorable Moments

• On the evolution of self:
  • “The number of Grant Cardone versions... is crazy. And I'm the only one that knows all the versions, not even my family.” (24:04)
• On the necessity of discomfort for growth:
  • “Change has always required suffering. ... The best opportunities require a person to give up something.” (29:57, 30:27)
• On raising capital outside institutions:
  • “I said that I would, I would raise a billion dollars for real estate transactions without going to an institution or a Blackstone or Blackrock or JP Morgan. And we did a billion three.” (40:07)
• On authenticity and being polarizing:
  • “None of it is intentional marketing.... I tell it like it is. ... I wish more people just liked me right from the get go.” (38:01–38:15)
• On overcoming cyclical “golden handcuffs”:
  • “What I had was so good, but because it was so good it was keeping me from doing something great. And a lot of times in life, you have to give up what's good in order to go and achieve what's great.” (29:41)

Important Timestamps

• 04:00–06:30: Grant on harmony vs balance, and the price of early success
• 06:31–09:43: Drug recovery and how self-belief is rebuilt by action
• 14:53–16:13: Lifelong impact of selfless work—“reaping rewards from 30 years ago”
• 27:00–30:27: Reinventing oneself and the necessity of giving up comfort
• 34:46–35:46: Grant’s strategy of never keeping “excess” money but continually investing
• 40:07–41:04: Raising over a billion dollars in real estate without institutional capital
• 52:32–56:36: Detailed debate on whether to buy primary residence vs income property
• 65:55–66:50: 2024 market predictions—multifamily and office distress, single-family housing staying strong

Final Takeaways

• Success comes from continual reinvention, staying uncomfortable, and refusing to settle for merely “good.”
• Building wealth is not about saving but about acquiring and controlling assets, ideally at scale.
• For new and seasoned investors in 2024: look for opportunities in multifamily, office, and retail spaces, prioritize location and management, and be wary of “hot new” syndicators lacking experience.
• Work and life are best when harmonized, not compartmentalized—design a life with your business and family intertwined.
• Teach your children about money by making them earn, manage, and invest it early.

For listeners seeking practical, direct real estate and personal growth advice delivered with relentless energy, this interview is full of actionable wisdom and 2024 market perspective from one of the industry’s most visible players.