“Don’t F* With Me!” Grant Cardone Breaks Silence on Controversy, Lawsuits, & Selling Real Estate

I am not here to satisfy you. I don't care if you like me or not, man. Grant Cardone, >> the man himself. >> What do you think is a criticism about you that's fair? >> There's a lot. [music] >> Where do we start? >> This is why people hate me. I have debt on 2.2 billion of real estate. I would appear to be disconnected. >> There it is. This is cool. >> Showing the plane can appear to be arrogant to some people. Overconfident. >> What I have here is a fleet. How much of that though is just played up for the camera? >> No, I don't play up. There's not a play up. [screaming] >> The main controversy surrounding you would just be mostly around the fee [music] schedule for your Cardone Capital. People don't quite understand it. And I still like don't even understand. >> What don't you understand, bro? What's your IQ? It's not a math number. It's an idea. The real issue here around money is roles and responsibility. >> So, what do most people get wrong? >> Well, they don't ask me like you guys did. They do YouTube videos. Don't make accusations that [music] aren't true when you know they're not true. Because the moment you move into definition and own something, if you own any property, I'm going to come get it from you. [music] >> Grant Cardone, thank you so much for coming on the ice coffee hour. Really appreciate it. >> Yeah, thanks. >> What do you think is a criticism about you that's fair? >> Oh man, there's a lot lot there's a lot. >> Where do we start? >> Yeah, where do you start? Okay. I'm I'm uh you know the fair criticism is I mean there's some unfair but the fair would be that I would appear to be disconnected maybe from you know because of what what I've achieved. The plane showing the plane can appear to be arrogant to some people. Um arrogancy overconfident um what do they say about me? um Trump supporter get a lot of hate for the Trump support. Uh you know some of this stuff about the offerings on the investments that's completely unfair because what we've done for 20,000 investors is unbelievable to provide people with access to institutional quality assets the way we have at scale. Um, >> but you would say the arrogance. So So you say people claim >> when I watch my own stuff, I I'm like, "Dude, you look so arrogant when you present stuff." I just I just And and and >> and that I'm not thoughtful enough about how people receive something. >> How much of that though is just played up for the camera? >> No. No, it's not. I don't play up. There's not a play up. There's There's not There's not, okay, I'm going to do this because this is going to trigger people. So, when you said that someone making 400,000 a year is broke, >> that that that was done. It's a great that's a perfect example. Yeah. Okay. That was not contrived. I had no clue that would happen. >> You just said it. >> By the way, that was videoed in front of an insurance company. Uh there was 120 people in the room, very large insurance company, and they hired me to come uh speak to their people. I said, "Hey," I asked the CEO, "What do you want me to, you know, what would you like me to He's like, "Look, I got a couple guys making $10 million a year and everybody else here is making 400 grand." He's like, "I need you to freaking amp these guys up to make 10 million each." I said, "Okay, I got it." So, my opening line was, "Look, if you're in this room, okay, this was not this was pre- internet. The video had been that that video was probably four or five years old when it was found >> and then put on in put on one of the social platforms. I don't even think the social platforms existed when I did that event. That's how old it was. Could be seven years old. And um he said, "I need you to get the $400,000 guys off their ass to earn more money." I said, "Well, what's the most money you can earn?" He's like, "I got guys making $10 million a year in this room." So my opening line was if you're in this room and you're sitting with people making 10 million and you all have the same opportunity and you're making 400 grand, you I I don't even know how you go home and feel good about yourself. That was the line. >> Okay. >> Do you believe that though or was this just like, hey, this is the requirement of speaking. You you got to amp these people up and you're like, okay, what's >> I had one guy paying me. [laughter] They paid I think they paid me 150 grand to go in there and spend one hour jacking these guys up. That video was not made for mankind. That video was made for 125 guys that work at an insurance company that have the ability to make 10 million selling a product. Uh, and if you're in a room, if you're there's four of us in a room and there's a guy in the room and we're all doing the same thing and you're making a billion dollars and I'm not, I'm like, "What's wrong with me?" >> Okay. Well, that that there's a lot to decode from that. Yeah, let's decode it. >> I would like to. Yeah. >> Because you're you're saying, "What's wrong with me if I'm not making a billion dollars?" That's basically saying that like highest moral value, highest value of life is suggesting that that increasing your income to its maximum capacity is like the best utilization of a life. >> In this case, I was not asked to catch fish. I was asked to amp a room up about making. >> So I understand more insurance. By the way, by the way, the guy that sells if you believe in the product, okay, I was doing this company and the people have been uh a service if the insurance product is good. when they're not they're not selling drugs. They're providing people with insurance which people might not have or they're underinsured and I'm going in there saying if you have the ability to make an extra phone call it's not really about the money. I just >> I could The guy didn't ask me >> talk to them about selling more insurance. He said talk to them about making more money. >> Did you end up making them more money? >> Well, you know, if I would have mentioned the insurance company's name, I certainly would have because for the sales people 100% they made more money when they felt that 400,000 was broken. >> It woke people up even if it was just temporarily like like you know if you get if you get in a car wreck you're going to be become more conscious of how you drive and how other people drive after the car wreck. So I'm punching them in the face to say hey wake up there's an opportunity here. >> Why do you think some people were complacent with 400,000 while other people felt like they need to push to 10? >> Well because because at that time this >> like what's the difference between those two? >> This is seven or eight or nine years ago. That's when you could actually live on 400 grand. Fast forward to 2026 and I'm probably closer to right than than wrong. Okay? Because I've been talking about this inflation thing for many many years. Hey, you don't make enough money. I've been talking about a million dollars was no money. The middle class was changing. These numbers are all uh basically inherited ideas from earlier generations where oh 100 grand's a lot of money. 400 grand is a lot of money. A million dollars is a lot of money. Your generations are being told right now that you're being priced out. You're not priced out. You just don't work hard enough. Now, not in your case, but a a majority of the population is tapping out right now, believing in in that case seven or eight years ago, you could live on 400 grand when the truth is if you live in the state of California, 400 grand is really 260. And after the cost of living, electricity, taxes, insurance, etc., you're probably down to 100,000. and and a 100 grand today in this country in almost any place except maybe you know rural Midwest is not a lot of money. >> So if someone has the ability to make a lot of money but they're not doing it. What do you think is holding them back? >> Well these conversations you know like you're you're like oh the moral compass it's not about money. I'm like, "Dude, if you have a wife and two kids or three kids, two parents that are aging, you know, and any other responsibilities in the community that you consider yourself responsible for some participation in the game, uh, you need to make more money, you know." >> I agree with that. I mean, I think that there is obviously like some sort of diminishing return at some point, though. What I was saying was like the difference between making $100 million. >> Where's the diminishing return? It depends on what your like your roles and responsibilities, what you are, what your duties are. And so if you're a man trying to provide for his family, it's like, okay, well, there is obviously in California probably it's going to be a couple hundred,000 if you're the only person working. And then if it's, you know, you have many kids and your kids have like physical needs and stuff, okay, then you keep bringing it up. But I don't think that like the difference between making $2 million, granted this is coming from a person >> who doesn't make $2 million, so take it with a grain of salt. difference between $2 million and $10 million in terms of what you can provide for your family will not make them better people. >> Yeah. Oh, I didn't say I've never There's no clip of me saying people that make more money are better people. >> Well, like raise your raise your children in a more efficient way. >> Well, you can do that on $2 million. You You can probably do that on You can do that on 200 grand. you I mean you can you know the amount of money raising your kids efficiently you you can give a guy a billion dollars it doesn't mean he's going to raise his kids well you know I'm doing a great job of raising my kids I know that nobody can take that away from me but the money has nothing to do with it does it allow me to spend more time with them yeah 100% there was a >> it was cheaper for me to take my kids out of school and keep them in the schools so anybody that thinks they can't homeschool can't homeschool because you're not taking responsibility this is the real the real issue around money is roles and responsibility. >> Mhm. >> And most people think they're only responsible for themselves and not even their wife anymore. Okay. It's like I got to have two people work. No, you don't. You need to work. She should stay home and raise the kids and but you need to make more money. You you you know, so that I mean that's just my belief like work. So, if if your wife was better at making money than you, Yeah. do you think it would be most efficient or productive for you to be a stay-at-home dad and she'd be a stay uh a go out and work? >> Yeah. Never never [laughter] never even considered it. >> But if if she was more efficient at making money, so if she was better >> I can't even think, but I'm sorry. I just >> Is there is there a world in which a woman can be better at making money than a guy? And like if they're in a relationship, should she be the one going down? >> I can't I just can't have babies, you know? [clears throat] I can't have babies. So, I I I don't know how to do that. So, and maybe it's just traditional, you know, just look, I that ain't going to happen. My wife used to ask me, "What if I made more money you?" I said, "Never going to happen." [laughter] >> You say that. What was >> you're never going to make more money than >> What was her response to that? >> She's like, "But what if I did? Would it bother you?" I said, "No, it won't bother me. Make more money. If you want to make more money, go get a deal. Get somebody to give you a bunch of money. But like, you're never going to make more money than me cuz I am always going to >> So, you're flexing on your wife." >> No, I'm [laughter] always I'm always going to amp it up. I'm going to figure out another way to to earn more money because I know there's endless amounts of money since the last time I was on this show. >> Yeah. >> Okay. The US government has printed 25% maybe 30% more currency is in place today in play today than was the last time I was on this show. That means I should have gotten a pay raise. You should have a pay raise. You should have a pay raise. Everybody watching this right now should be making more money. But most people can't say they're making more money because they're not. Why? Why aren't they earning more money? Why aren't they getting more money? If more money was produced, I'm not even talking about spending right now. >> If more money was produced, >> your earnings should have automatically gone up. Period. >> What's the minimum amount that you need to make to not be broke? >> I don't know. I mean, I'm broke. I'm broke. No matter how much money I make, I'm broke anyway. So, you got to tell me what broke means. >> What would you consider to be broke? >> Well, I don't have any money with me right now, so I'm broke right now. I'm broke. to get back to if you didn't get me a ride back, >> you would have you would have a credit card or something. >> I don't have I don't have anything on me. I'm broke right now. >> You don't have like a Uber app on your phone? >> I do have an Uber. [laughter] >> Okay. So, you you could figure out a way to >> Yeah, but if I was broke and my Uber app doesn't work anymore, then I'm broke now. How do I get back? That That is the way people really should. This is the the calculation people should understand. This is what I did on Undercover Billionaire. I didn't have any money. I had $100. >> I took the $100, gave it to the bank. Uh, Discovery Channel was upset because they're like, "You you need money." I said, "No, I don't need money. I need people. I need my ability to contact people and ask somebody to give me a a lift. I'd go out there right now and I'd do this and I'd get a lift. I'd get a lift back to the hotel, right?" And then and then I got a room tonight. How did I You know, so so you that's the hustle. The hustle is other people. I need to get in front of people. That's why the roofer and the HVAC guy and the plumber and the electrician are going to kill AI. They're gonna they're gonna they're going to overperform. They're going to make the the plumber tomorrow is going to make more money than the doctor tomorrow if they know how to hustle. Now, if they don't, they're just going to get inflated on and they're going to tell, "Okay, you the wife's got to go work now and the kids have to go to schools and everything's going to get more expensive on you and and and you're just a spectator in the game." >> One thing that was really interesting that you mentioned on our last podcast though was that if you have a million dollars, you're as close to broke as possible. And so I feel like a lot of people disagree with that sentiment because I would say there are many dollars, maybe even a million different dollars that are closer to broke than a million dollars. And so what do you mean by a million dollars being as close to broke as possible? >> How old are you? >> 27. >> Okay. So if you don't have new income, >> okay, and you're going to live till you're 87 and you have no new income, you guys break up, there's no sponsors, there's no income, nothing, dude. Like what? But you're dis, you know, whatever. You cannot earn income. You have no government check. So you have 60 years and a million dollars. I don't know what the math is on that. >> Well, you let's say let's say I put it in stocks and I'm taking a 3% withdrawal rate. So I have 30k a year basically. >> Yeah. 30,000 a year. Yeah. Give or take. >> Okay. You you live on 30 grand a year. >> It would be uncomfortable. >> 2500 bucks a month. You can't, bro. Not even in this town. Your rent's 2500 bucks. Your rent's two grand. How how do you live? You got a mom and a dad. >> Mhm. >> How do you feel about yourself now? your dad, your you find out your dad has a dementia and it's going to take him 16 grand because your your mom can't take care of him. Now you got to take care of the mom and the dad. Now, how do you feel? What happened to your roles and responsibility? You were thinking about yourself. This is the problem right here. It's not a money problem. It's a roles and responsibility problem. I'm not responsible just for myself. If I'm a capable, able, intelligent, I can work. I'm healthy. That that's my abilities. And I don't extend my roles and responsibility not just my wife, my kids, my my employees, my community, my neighborhood, even to my government, then then then I have a diminishing roles and responsibilities. Okay? And if you have no roles and responsibilities, then you don't need a lot of money. But if you h if you have believe you have if God gave you a bunch of responsibilities and roles and then then you need money. Mother Teresa needed money. So she she didn't have any of her own money. So what did she do? You don't need your own money. You need to be connected to people that have money in that case. >> A lot of people >> and you need more than a million dollars. Like I don't even know where this number came from. It's not a math number. It's an idea. It's an old idea. A million dollars and you got it. >> Yeah. For me growing up, it was always a h 100red grand that I thought when I was like 12 years old like you want to make a $100,000 a year. >> Yeah. >> And then you see how quickly it goes. Like even my health insurance is close to $1,000 a month now. And and it's the worst health insurance possible. It's a catastrophic plan. Still $1,000 a month for two people, which is crazy the amount of prices you're going up. >> Yeah. I I mean, I I had a I had a coffee this morning, it was $12. >> Okay. Well, that's that is if I walked up to a coffee shop, saw a coffee was $12. I'm walking 20 feet to the next. >> Yeah. I make my coffee at home. I just brought it here. >> Well, you know, >> I saved $12. >> Okay, good. Maybe >> I did. >> Okay, good. But but >> you know the idea that I'm not interested in saving money. I'm interested in in in earning more money. So I'm like, "Oh, it's $12 for the coffee. I wanted the coffee." >> So I'm like, "Do I save $12?" If I I No, actually you don't get the coffee. So you could say you save $12, but the truth is I didn't get what I wanted. You know, in an abundance mindset, I'd be like, "Okay, yeah, dude. Give me give me give me two of them. Give me two of them, and here's a tip. Here's another $12 for just delivering me the coffee. No harm, no foul. I'm going to go earn more money. And by the way, I'm going to do that for my wife and my kids and my church and my community and all my employees. And >> yeah, >> look, it's no secret that finding a good real estate deal takes a lot more than just casually browsing a few online listings. Like, let's face it, between researching markets, running the numbers, and figuring out financing, it [snorts] could quickly become overwhelming. That's why we are so excited to partner with LAR investor marketplace. Lenar investor marketplace is an all-in-one solution for finding rental ready new homes across more than 90 desirable markets nationwide. It can help you determine which investment meets your needs using key metrics like estimated net operating income. And you can even submit offers through the marketplace. Seriously guys, buying real estate has never been this easy. The homes in LAR investor marketplace are professionally built, pre-inspected, and rent ready from day one. They also provide rental comps and local area insights to get a better sense of the neighborhood. As a marketplace investor, you'll gain access to benefits like financing, property management, insurance, and title services through LAR and their affiliates to make your life easier. So, if you're ready to find a turnkey new construction home, try out LAR investor marketplace. The link is down below in the description. Thanks again so much to Lenar for sponsoring the Ice Coffee Hour. And back to the episode. To live in abundance, you need to have a lot of money though, presumably like if you want to be the way that you just described. What would you say your predictions are for the 2026 housing market? How can people make money in real estate in 2026? >> If I was trying to make a bunch of money tomorrow, I would not go into real estate. Real estate's a very heavy I I'd more likely to go sell waters >> at a concert >> where I could get $12 for the water because people are thirsty. You know, the location changes how much I'm willing to pay for that coffee or that water, right? The real estate the real estate would not be what I would go into tomorrow if I was trying to make a bunch of money. >> What would you go into? >> Uh, well, I would definitely think about AI. >> You know, if I was 25 years old and didn't didn't, you know, hated school or 20 years old or 18, I would become an AI consultant. If you'd asked me this the last time I was here, I wouldn't I wouldn't even know about it. I would become an AI consultant. And I would have I would have 10 clients each pay me $8,000 to go in and push all their AI, all their programs. I'd probably bring three I three AI platforms into the company, figure out three or four different projects they want me to handle. I wouldn't be on their healthcare, wouldn't be on their payroll. They'd pay me an $8,000 consulting fee. I'd make a million dollars in year one. Eight $83,000 a month. 10 people 8,300 bucks each. >> Let's break this down to actionable things. So, if you were watching this right now, let's just say they're 25y old guy, >> not up to a whole lot, and they want to make the crazy amount of money you >> 8,300 83,000 bucks a month. >> So, about a million bucks a year. What is the first thing that they do? Like, >> you got to become you got to become an expert at at AI. >> Okay. So, how would you become an expert in AI? >> Well, rather than sitting in your little room and watching my Instagram and me tell you you're not making enough money, you need to become an AI expert. You need to throw yourself down into cloud, into chat, into which nobody even talks about. >> Yeah. >> Five months ago, that's all you talked about. Uh, whatever. Pick a platform >> and you need to become an expert. You need to learn how to ask questions better than anybody else can ask questions on the verticals that you're going to go on. If I was chiropractor, I'd be like, I would learn how to ask those questions, have that already set up, dentistry, etc. And then I would start calling on those companies saying I've built these AI platforms that you know I am an expert in this. The guy you're calling on will not know whether you're an expert or not. That'll be determined by how good work you do for them in month one whether you get paid in month two. But this is a brand new open space. The other the other thing you could do is the social media. So people are still terrible at social media. All these people I'm talking about all these verticals I'm talking about are horrible. At best they have a LinkedIn account or maybe an Instagram account and they misuse them. Car dealers in this town don't know how to use their social media and don't know how to use their AI. Every car dealer in this town will be a player for an AI consultant. Once you become the ma the a genius at this what whatever this AI platform is now you need to become a sales you need to become a sales god. You need to because these are knocking on doors. These aren't I'm going to send an email out and doctor the dentist is going to answer me and say please come in and pitch me. You got to go call on companies. And this this is why your viewer won't do it because they are so dis they're so disabled with making contact with a human being. >> It's hard to do, man. Even for me, I hated doornocking. >> I couldn't stand it. I would rather quit real estate than doornocking. >> It's not even the rejection. See, see, I'd say, "Why does your audience not do this?" And they're going to be like, "I hate rejection." >> No, you don't hate rejection. You hate being ignored. Because in the beginning, they're going to ignore you. There's not going to be any rejection. There'll be no response at all. That's why you send the email. You send the email so you don't have to deal with reality. If you go knock on their door, watch them turn you away and say, "I don't have time for you." You can't even get over forget whether you're an expert. You cannot even get past I don't have time for you. Like, your audience doesn't even know how to handle that one thing. >> It's dehumanizing. I did two I two videos where I went door todoor washing windows. Yeah. because this kid was making $1,000 a day cash going door to door washing windows. But the amount of rejection that I got and the way the people treated me, it was dehumanizing and it was discouraging and I felt like crap. >> But then when you finally get a yes, it's a great feeling, but you have to go through like 10 to 20 nos. >> My daughter Sabrina, she was here last time and she we put her on the phones and I said, "Here's the script. You're going to call and say, "My dad asked me to call you and he wants to know why you didn't buy the product." It's very easy script. She had a list. They were warm. They weren't expecting a call. Hey, my name's Sabrina. [snorts] She's like, "Oh my god, what am I?" I said, "Don't worry about what you're going to say. Worry about what's going to happen to you when they don't pick up." Okay. She's like, "What do you mean?" I said, "You'll know. You'll know. Just let me know when you know." Okay. So, she started making phone calls. No answer. No answer. No answer. No answer. No answer. Won't pick up. Won't pick up. Won't call back. She went through like 19 of those. She was devastated. She had never been at her age, I think she was 13 at the time, never been ignored by that many people. She was used to walking up saying hi to people and everybody gives her attention and that was removed. >> So like people don't know this is what the Mormons do. They they send their kids two years to missionary >> which I think is brilliant. And they got to go to another country with another language and knock on doors. >> And so you >> could you do it? >> Could I do it? >> Yeah, >> I could if I needed to. Yeah. I think because I mean growing up there were like different things I needed to raise money for like even track you sell these car wash things you go door knockocking like I was able to do it but now I'm not necessarily in a position so it would be more uncomfortable but if I had the hunger instilled in me because I wasn't providing in the way I wanted to then yeah I could. >> Yeah. >> So I'm I am curious though on the topic of AI implementation which is basically what you're suggesting. You would say that that is the number one thing that people should be doing right now to make a lot of money is AI implementation. Is there any other thing that you think is really lucrative? >> You could make you can make the same money doing social media. >> Okay. So, what exactly in social media? >> You would go in, you would go in your your you know your um whatever you are. You're a dentist. I'm going to handle your LinkedIn. Oh, we got that handle. I'm going to handle your Instagram. I'm going to handle your Tik Tok. I'm going to handle your YouTube. I'm going to handle your shorts. I'm going to handle your long content. I'm going to get you podcast. How much is that going to cost me? 83 83 uh 80 uh 8,000 bucks a month. I'll handle all of it. I'll handle your responses, your comments. I'll make sure everything's linked up back to your website. Well, well, $8,000. You can't hire an employee in this country for $8,000 a month. And even if you did, you'd have to train them. You don't have to train me. I start today. Your close ratio is probably going to be 40%. You're going to call in 10 clients and you're going to get four of them to sign up >> if you're good at sales. Well, if your pitch's good, >> what's the one thing people get wrong about sales? >> Everything. >> Where do they >> First of all, it's terrible. It's nasty. You know, nobody got gets training. You're not encouraged to do it. >> And what's the biggest mistake people make when they're selling someone something? >> Well, God, I mean, we could talk about this for 3 hours, but >> what's the main thing that you see people doing? Cuz I remember when I was watching the the Wolf of Wall Street, he's like, "You just got to shut up when you make the pitch and don't keep talking." Not really. Is that true? >> Not really. I mean, I don't think it's that simple, right? So, if if I shut up and he shuts up, >> then now what happens? >> Everybody shut up. I You're deep into the deal now. Like, you're not in sales now. You're in the negotiations and a close at that point. So, the first mistake would be the target. You know, this goes back to money. The problem with most sales people is the target's so low that you're not going to go through what it takes. It's what you just said, dude. You said, "Oh, I could do that if I had a need to." But most people don't actually have a need to because their understanding of money and life is so messed up. Like they think, "Oh, I'm going to make 8,000. 8,000 is a lot of money." I said, "8,000 times 10 clients." You're that and you're going to find out that's not a lot of money. You're just going to find out that life is going to throw more problems at you that cost money. So you you can go to $80,000 a client if you want to. You're going to find out it's no money. You're going to find out no matter how much money you make or don't make, you're going to end up with a problem managing money, funding things. So the sales guy comes in, he's like, "I'm going to make four grand a month." For four grand a month, you're not going to go through the amount of rejection you were talking about. For four grand a month, you're going to say, "This, I'm going to get a job that pays me four grand >> and I'll work for somebody else. I'm not going to go through all this rejection. >> So, why don't you say real estate? Because I feel like seven years ago, seven years ago, I feel like you would have said, "All right, we're going to scr up some money together, buy a multi family." >> I would have never said that. >> No. >> Never. Never in my career would I said that. I' I'd say if you want to make money, you go out there and hustle somebody right now. >> I go back to your your window washing. Who was doing the window washing? >> I did. >> Yeah, dude. Like that. That's a great business. >> Okay. Because I get money today. So that's why the HVAC and the plumber, electrician, all those guys are going to just crush. The the electrician is going to be making 350 grand a year here in the next two or three years. So just got to be good at the pitch. And he could make three and a half million if he could scale his business and tell a story and call on clients. But the money is going to come from a person. You still got to go call on people like like this is the big problem with the sales game. Okay? This is the problem with people that start a business. Most people start a business for the wrong reasons. They start a business because either they got left let let go from their last job or they hate the guy they worked for and they come up with this calculation that says like they're Einstein and says I >> rather than being abused by Grant, I'm going to go do what I learned at Grant's place and go work for myself and now I work for myself. And they're going to find out now that they still don't have the skills to make any money and now they hate the client, the the the environment, and probably even don't like themselves. The average CEO in this country, a soloreneur, makes $30,000 less working for themselves than they would in the same position working for somebody else. >> There is something mentally different though for doing something when you're doing something for yourself that is freeing. Like I'd much rather make less money and know that I have full control over my schedule than make more and work for someone else. >> Yeah. All right. >> That's you though. I think not everyone would agree with that actually. >> I I don't I don't you know I don't care who I I I'm Look, I work for somebody else every day. I'm working for you guys today. I'm working for Jared. I'm working for my partner Brandon. I do a deal with Blackstone. I'm working for them. You know, I get a loan from Wells Fargo. I'm working for them. I'm working for everybody. I can pretend to be working for myself, but >> I'm I'm always on somebody else's schedule. >> What are you seeing right now happening in the real estate market? >> Well, it's just, you know, is a lot a lot's going on and and um we got a bunch of debt. Single family single family is not going to Let's just start there. Okay. Yeah. [clears throat] >> Very difficult to sell house today. >> The only people selling homes, new homes are selling for less than existing homes are. And that reason that is because the new homes are subsidizing the rate. They're buying the rate down from 6 1/2 down to 5 1/2 or even lower. >> They're subsidizing down payments. And Bill down the street that wants to sell his house, the guy that wants to sell his house here can't do that or he doesn't think he can. >> So the sellers aren't creative enough to offer financing. So they just lower their price. And the they can't get the price low enough to actually bring the buyers in. Now mortgage rates look like they want to fall off the the ledge right here. >> Yeah. They just dropped below six. >> Yeah. So they're below six. I think they go down to four. I think they're going to just collapse here in the next 6 months. >> What do you think? >> And if that happens that that that will that then the housing market will be real estate agents will start making money again. Brokers will start making money again. Mortgage brokers. >> So does that mean then you are bullish long term for single family homes? Because if but if mortgage rates drop, don't you think that all of a sudden then affordability comes back and that the buyer could now pay what the seller wants? >> I think I think what happens in the beginning, contrary, is I think that if rates fall off the cliff, >> if they would come down really fast, which is what Trump wants. >> Yeah. >> And the first thing that would happen is prices would come down, not go up. If rates dropped, I think what happens now, and most people don't agree with this, I think the supply is going to go so high, so many people are gonna be like, "Okay, now's the time to sell our house. >> The supply is going to increase so much that everybody's going to be like, "I'll drop my price right now because I want to move into that other house." >> So to then secure another low interest loan. >> Yeah, exactly. They're trying to move to something right now. Right now, look, for a sale to take place, >> there has to be motivation on both parties. So for me to compromise my price, I got to want to go do something else. And right now there's no there's no urgency to compromise my my my price because I have no place to go. The moment I have someplace to go, then I compromise my expectation for what I want for my house because I want to go to this other place so bad. And that doesn't exist in the system right now. You got to have supply. You got to have a lot of supply. You got to have tremendous demand. And you also have to have an urgency by both parties to say, "I'm ready to roll right now because I get a low rate, not a low price." By the way, I'd rather a low rate than a low price all day long. This is what Trump wants, by the way. He doesn't want to destroy the equity in the housing. There's about $38 trillion equity sitting in homes, and he doesn't want to destroy that. He could, you know, he doesn't want to do that because that would hurt your parents. >> It would hurt anybody that owns a home. What he wants to do is drop the rate, maintain the equity, and have people be able to afford a home. >> Now, being an entrepreneur doesn't have to mean that you do everything yourself. Most successful business owners are really good at handing off tasks to other people, but the hardest part is knowing which ones to hand off first. That's exactly where our sponsor, Upwork, can help. 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Upwork just makes the entire process easier, simpler, and more affordable with industry low fees. Signing up is free and posting a job is incredibly easy. Visit upwork.com right now to post your job for free and connect with top talent ready to help your business grow. That is upw.com. upwork.com. There's also a link down below in the description. You can just click it right there. Thank you so much to Upwork for sponsoring this episode. This episode is in partnership with Airbnb. So Graham and I just wrapped up a trip. We were in Austin for a few days. We filmed episodes with Togei, Chris Camilillo, and Caleb Hammer. And honestly, every time we're on the road, we're staying at homes on Airbnb. It's just become the default. And here's the thing most people don't think about. When you're the one traveling, your place back home is just sitting there empty. And that's a real missed opportunity. Whether you're gone for a long weekend or a few weeks, you can list your space on Airbnb and let it work for you while you're away. If you've ever thought about hosting but weren't sure how to manage everything from the road, Airbnb now has the co-host network. You can connect with a vetted local co-host who has real hosting experience and can take care of the day-to-day for you. A co-host can manage reservations, handle guest communication, and even provide on-site support so you don't have to think about it while you're traveling. So, instead of your home sitting empty, you could be generating some extra cash. Whether that helps you cover the next trip, your flights, or just goes towards something that you've been putting off at home. I actually listed a spare room in my house on Airbnb and I was genuinely so surprised how easy it was to set up, how seamless the entire process was and it actually made me some pretty good money. I would actually recommend this to anyone out there that wants to make a little extra cash on the side. It's honestly phenomenal. If you're thinking about hosting but want some help getting started, find a co-host at airbnb.com/host. So, what do you think is the best way to make money in real estate in 2026, or is it just waiting? >> Well, it's not the single family home. If if if you if you if you force me though into the single family home and say, "Look, you grant how would you make money in single family homes?" >> Well, I would pick three or four cities. Miami would be one of them. And I'd say I'd go I'd probably go do as much as I hate this concept. >> But you're saying short-term, you just want to make some money. I'd go flip old 80s homes in Miami in certain locations in a five or six different pockets. You need a place where there's old inventory. There's old 80s 8 foot ceilings, old kitchens, and you'd go in, rehab them, uh, and pick up 15 or 20,000 a unit. But the problem is, you need some money to do that. You don't you're not going to need a mortgage. You need some money to flip that house. And you need guts. And now you're back in a sales game. Now you got to buy it. You got to try to steal the house. You're calling on a 100 people to get one or two deals, not 100 people to get 40 deals. So that's why the AI thing and the social media thing would be such much greater return than me trying to get you to sell me your house that you just bought. >> Those would still be active ways to make money though, like you're spending your time making money. What about passive income? Like if you're going to deploy your capital in in any asset, would real estate be the optimal asset class or what would >> I didn't know I had any money. I didn't know I had any money. I thought I was broke. >> Well, let's just say someone's out there. They're working a job that they they went to college for. They're making 75 80k a year and they don't want to change career paths and they have this disposable income that they want to invest somewhere. >> Yeah. I mean that that that's a different play. So you're describing me when I was 29 years old. I'm making I'm making 80 grand a year. I have 30,000 left over. When am I I do that two years in a row. I do it three years in a row. I got $90,000. I'm not overspending. I live like him. Very frugal. M >> he watches every $12 that he spends, every $1, every 10 >> and and so I'm I'm banking money over here. I don't know what to do with it. And then I started buying real estate. >> So I started using that real estate to leverage. I would go buy but it wouldn't be a single family home. It would be at least four units. Uh Fanny May and Freddy Mack today have a 5% program where you can buy four units. It's limited to the four units and a million I think it's a million390 [gasps] 5% down. So, on a million-doll 4unit complex, you could put 50 grand down. On 200 grand, you could put $10,000 down and you'd get four units of cash flow. But you're not getting rich, dude. You You basically took $5,000. You have four units. You're the manager. >> You got to go collect $6,000 a month. Four times,500. You're going to have to fix the place, garden the place, collect the checks, evict people, look at lease notices, qualify people, like fix the plumbing. >> So, >> that ain't passive, bro. That >> What would you recommend to someone who has maybe 30 or 40K in >> money that they can invest somewhere? They're able to save a little bit of money at the end of every month. Yeah. >> Where should they deploy that? >> Well, I'd say invest it with me, but it's it's [clears throat] it's not enough money. >> You can't say that. That's the one thing. >> It's not enough money, so I don't need to say it. Where would they be putting that money? >> I would do what I just said. I would do the four-unit deal and suffer and go do 10 of them. I'd do four units. I'd take $5,000. I'd buy four units and then I'd go do a second one and a third one. I'd do them if I could do them on the same block. I would do them on the same block. Now, what are you buying now? Four units. It was built in 1970. It's old. >> Four units. That's all they built back se in the 70s. They were building four units. in the 80s they're like, "Hey, let's build eight units." And then they built eights and then they said, "Let's build 16." So, you'll see them by age. Today, they're only building 350 units. >> So, you'll see these big complexes going vertical. But that's what I would do. Now, is it fast money? No. It's just a little bit of drip. The 30 grand is going to earn them maybe 3,000 bucks a year. So, you traded 30 grand for 3,000 bucks of income. And most people won't do that. They're like, I want my 30 grand. your 30 grand is going to be worth three grand here in the next 10 years. They're just going to keep printing money. So, you need to convert your cash, the 30K into something more valuable. In this case, it was, let's say, 150,000 of real estate, 30 grand leverage, 20% down. I bought $150,000 property. The value of that property is going to go up as they print money, but it's just a drip. You're only earning three grand a month. You're earning, >> you know, $250 a month. You're like, "This is not a deal. I traded 30 grand for 250 a month. I would do that trade. But most people watching this are going to say $250 is nothing. So they won't do it. >> But you would never say just $250 because you you're a miser. >> 250 if you save that over 30 years invested at a 7% return. That's over a million dollar. >> Yeah. So 12 bucks to us. Right. Exactly. >> So that's why he's going to Korea for the He got them perks. [laughter] So, what do you think is the biggest risk to housing prices over the next few years? >> Yeah, there I think the biggest risk is that uh you know the the baby boomer dies. >> Don't they then pass off their wealth? >> Yeah, they're going to pass it off. They're going to pass it. The three of us, we're brothers and our our parents die. The last parent dies and their home is in Shreport, Louisiana. And we get the notice. You live in LA, you live in Las Vegas, and I live in Miami. Oh my god, he died. Okay. We go in, we see the wheel. You guys get to split the house. He has no other no other assets. >> Do you want to move to Shreport and live in the house? >> I will not. >> Do you want to live in the largest flying roaches in the world? >> Live in shreport. >> How do you know that? >> Cuz I I lived in Louisiana. >> Okay. >> You know, I dated a girl there. [laughter] >> So, and she came with roaches, by the way. It was worth it. >> Oh my god. >> But oh my gosh. [clears throat] Um, >> and we're going to be like, "Dude, what's the house worth?" Okay. We haven't we haven't even buried our father yet. And we're like, "What's the house worth?" >> Somebody says, "Uh, maybe 200." >> Okay. The housing market sucks right now. So, we're going to list it and one of you guys is going to get, you know, like, "I got time. No problem, guys. Whenever it sells, I'm fine." And then you got you guys are like, [gasps] "Sell it. Drop the price." We're going to have a phone call a month later. Hey, guys, drop the price. You you and me are going to be like, "Just drop the price." Right? Because see, to you, it's found money. We have no emotional connection or attachment to the house we're not living in. It's getting degraded. Kitchen's old. The the ceilings are bad. The real estate agent that got the listing is now going to tell you, "Oh my god, you need to paint it. >> You need to take all the furniture out. We need to re reset it up. We need to refernish it." All that's going to cost money, guys. It's going to be $6,000 to do that. Every all the three of us need to each come up with two grand. And you're like, "Hey, it sell the [ __ ] house. Just sell it." That's my biggest concern is that you're going to have tens of millions of people, all dying in a period of 12 months. Okay? We got 10,000 baby boomers dropping out of the workforce every day. Then you're going to have them dropping like flies. All hitting in their 80s, their 90s, dropping, just dying. Or they don't die, they go to senior housing. Yeah. Or they go to dementia. I can't remember myself who I am. I don't remember any of the great things I've done in life. I don't remember any of the interviews we did together. Grant Cardone forgot that he's Grant Cardone, right? and in and um Bruce Willis. Oh, >> it's terrible. >> It's terrible, dude. Like, but it's gonna h it could happen to me or you, you know, or our parents. And so, nobody cares about the house anymore. That that guts single family homes. >> The other part that concerns me is the the guys that are your age don't really want this responsibility that you have, this acre here. So, you got 75 million baby boomers, they have no interest in home housing. They're dying off. They're not going to buy a new house. They have zero. They're going to spend less money here in the last 25 years of their life than they spent at any other period in their life. They're not spenders. They're not travelers. They're not going to fix the house. They're not going to Costco or Home Depot to, you know, put on a new look. They're not buying new furniture. They don't need it. They don't want any changes. So, you got that third that's dying out and you got the bottom third entering in that doesn't really want to own that home. >> What's the flip side to that? Is there a bullish case where maybe AI makes things so deflationary, interest rates go low, everyone like what's the flip side to that? >> Man, I don't see it. >> I don't see it. >> So, you think everyone at some point is probably going to live in a big multif family? >> I do. >> Cuz that's all that they could afford or is that >> I think because they're going to it's a [clears throat] more desirable you you only most of the population is in 20 top 20 cities. >> Mhm. >> You know, uh 80% of America lives east of the Mississippi River. only 20% lives on this side of the world of the United States. Top 20 cities control most of the population. So, we don't have a shortage of housing in this country. There's no shortage. It's just a lie. That's a complete lie. There's there's I think there's uh 11 or 12% of the single family housing supply is abandoned homes >> or empty. There's no there absolutely is no housing shortage. There's another 12% of multif family that is vacant right now today. Maybe maybe higher than that. We got we got multif family have with the highest occupancy we've that I've seen in probably 20 years. So you have probably somewhere between four and a half million single family homes and maybe 5 million multif family that are vacant right now somebody could move into. So like Trump sent somebody to my office three three and a half weeks ago and said what would you do? I said I would give an incentive to all the vacancy in this country to occupy that house. If you have a vacant home, nobody's living in it, give it give some kind of tax incentive. You you move somebody into that house, set them up to own that house, and you you'll pay no taxes on the income. It would help the people that own those homes, fill those homes up, and it would help the new guy that doesn't have a home that wants a home. You don't need to build homes to solve that problem. >> What's the role of government be in housing? >> Well, I think that I think, you know, they're not fulfilling that. One, one is the interest rates need to be affordable >> and they're not. We should have the lowest interest rates in the world. >> We have the dominant currency on planet Earth. We should have the lowest interest rates so that people can afford a mortgage. And they would fabricate it. It would be completely synthetic madeup money backed by the US government. Lowest mortgages in the world right here in America. I think, you know, 3% that works. And how would you justify United States being the country that offers the lowest rates? Is that just because of sheer productivity? >> We're so productive that we can afford to >> Yeah, we're productive. We you know why why not? Why why not? We're going to go spend a trillion dollars on this freaking nonsense in Iran. So why not why not have our people living in a house, you know, if if they want a house. By the way, I don't I don't even think that solves the problem, though. >> Okay. What do you think is the >> I don't I don't think that because because I think a lot of you guys are going to be like, "I don't want a house. I I don't want to own a house. I don't I I want like the complexes we're buying today. It comes with a $4 million swimming pool, a million dollars of amenities, uh $250,000 gym. It comes with a Whole Foods right across the street at Trader Joe's two blocks away. I can walk downstairs and go get uh, you know, clean eating anytime I want." Like, that's what people want. They don't want to drive 40 minutes to get to their Whole Foods. And so I think a a do some people want a home maybe. Yeah. You want to raise kids. >> More people would want a house than a than live in a condo >> maybe. But I think if you talk to some of the guys that I talked to that work for me in Miami, first of all, you can rent for 50% today of what it costs for a mortgage. That is true. >> Just the mortgage. Yeah. >> Not the PMI, not the taxes, property taxes, not the insurance on top of that. Just the mortgage itself. If the if the mortgage is four grand, you can rent something comparable, not a house, maybe even a house for two grand in Miami. In Vegas, same same thing in Vegas. Okay. So, um I got a one of my guys, Ryan, I think his rent's 8,000 bucks a month. The place is worth 4 million. Okay. The HOA fees and the property taxes are more than 8,000 a month. So, the guy's got $4 million of debt money plus the HOA fees, plus the property taxes, plus the insurance. Ryan pays no insurance, no HOA. >> He doesn't have dead money. He can leave anytime he wants. >> Why would the owner agree to rent at those terms? Why? >> Because he doesn't want to be empty. >> But why can't he just sell it? Why not to sell it? Sell it. He >> can't sell it. >> Well, then it's not worth for what do you think it's worth? You're >> right. But he's not He's like, I don't want to lose money. He's like, he's got four in it. It's just that you don't have any buyers right now. If you had lower interest rates, somebody would buy that asset. >> You know what I was really surprised about? I didn't realize this is that when you have a primary residence and you sell it for a profit, you pay capital gains. Uh you get the exemption >> 250 or 500 for couples. But what I didn't realize is that when you sell at a loss, you cannot take a capital loss, which is crazy to me that if you lose money, cuz I see sellers here that are millions of dollars in the red on a property that they paid at the top of the market in 2021, it's worth 3 million less. They can't take a ride off on. That's right. >> They just after tax money, it's gone. >> See? See? Like these rules, the rules that extend to investment purchases should be extended to single family homes. So Trump sent Bernie Marino into my office and said, "Hey Grant, I'm down in Miami. I want to know, do you have any ideas about how to really get housing going? Accelerate housing." I said, "Yeah, here's the number one thing you should do. Look, you guys, when I walked in, first question I asked, did you accelerate the depreciation on this place? [sighs and gasps] They should pass on accelerated depreciation. I get it on every property. every property I buy, if we paid a million dollars or 10 million or hundred million, I'm I'm going to probably write off under the bonus depreciation, accelerate 27 years of depreciation on a home to year one. So, I'm going to probably get like a $40 million. 40 cents of every dollar will be written off the day I buy it. That should be extended to single family homes. So, you paid a million three for this place. 40 to 50% of it would be accelerated. day one, you'd be able to write off $500,000 today. >> But how would that not just like increase the price of housing? >> Well, it would it would accelerate. People would start buy that would absolutely increase the price of housing. >> I think you want your house to go up in value. You want >> Jack what Jack is trying to say is for the average person saying, "Hey, I just want to buy a place now. These laws pass and they're like crap. Well, now it just increased. >> It's already in place for me. All it's doing is being it's already been approved by Congress. I [ __ ] I get this every year. This is why I don't pay any taxes. My tax bill last year was zero. Why? Because we buy an asset, we write it down. Blackstone buys an asset, writes it down. Starwood buys an asset, writes it down. Uh all the major insurance companies, New York Life, Metife, New York Life and Metife own $200 billion of real estate in this country. Nobody ever talks about them because they're insurance companies and they stay out in the news. You came in here and wrote bought this place and you didn't get the write off. Why don't you get the write off? Well, I can. >> Well, on this one, you can't. Well, if it's your single family home, you can't. >> I do not live here. No. >> Okay, good. [clears throat] So, because it's a investment property, you should be able to write this off. But the single family home, the guy across the street should also be able to write his off when when he buys it and accelerate it this year. You know what that would do to this country? He would pay he would get a $400,000 tax write off this year. Imagine he makes that $400,000 we talked about earlier. >> Mhm. Okay, he's that insurance agent that I rag on. Okay, he gets a $400,000 write off against his earned income this year. His tax bill is zero. He pays no federal taxes. Would that be good for Las Vegas? >> Absolutely. >> 100%. Cuz now he's got 200 grand to spend that he wouldn't have had he had that tax bill. >> See, I always felt that the mortgage interest deduction should be raised >> 100 >> to a million and a half. >> It should be raised to 5 billion. And then I also think that the capital gains capital should be raised to 5 million. It should be 10x or maybe not have one at all. >> Here's what's crazy. When when the capital gains exclusion for single family homes was passed, it was the late '90s. >> The average home back then >> $4 to $500,000 on the the the high end, by the way, and that was the exclusion. >> Now it's closer in some major cities to a million. >> Yeah, that's right. >> But the exclusion stays the exact same. It's never been adjusted for inflation. They should increase that. >> Yeah. So, so like the interest. Okay. When I when I pay I have I have debt on this is why people hate me or don't like me. This is my criticism. I have debt on $2.2 billion of real estate. So the the moment I say 2.2 billion they like oh you see he's bragging that I'm just using it as an example. My interest on $2.2 billion which I don't pay for by the way. My my tenants pay for >> I mean it's funded in the project right? >> 100% of that 2.2 two billion times let's say five 5% whatever $110 million of interest is deductible every year you can't deduct more than about 42,000 shouldn't be there should be no limitation it's an American product American house bought in America you should be able to deduct 100% of the interest to the capital gains okay you bought this place for a million3 you sell it $3 million you make a million4 you shouldn't like why why should you pay taxes on that million for when I don't. Why? Why pay capital gains? What's the government got to do with your the ownership of your own car? Okay, if you bought that shirt and sold the shirt for more money because people think you're famous, okay? You know, whatever, right? And you bought it for 80 bucks and you sell it for 300, you don't pay capital gains. Your bicycle, your motorcycle, your car, none. Nothing has capital gains except a house. And it shouldn't. And that's what Trump's open to, by the way, for all your Trump haters. they they like the idea of trying some of this stuff. He he pitched the accelerated depreciation. Two Mondays after I told them about it, he pitched it at Davos. >> Mhm. >> And I heard that he's going to be signing an executive order uh to present to Congress this year. >> So, did he literally talk to his cabinet or whoever and say, "Hey, look, we need to >> No, that's not him. like like and then so we're going to send someone over to Grant Cardone's office to get some ideas of what to >> how does it work? >> He doesn't talk to his cabinet. >> He's like, "Bernie, you going down to Miami? Get down there. Talk to some people down there. I got friends down there." >> That's it. So he'll just send someone down. He'll he'll just It's you know it's not that Trump just rolls like there's no cabinet. Trust me. It could have been done at Mara Lago. And I want to get this housing thing, guys. Bring me some ideas. It'll be like this. Bring me ideas. Anything. Anything works. I want housing to explode in this country without destroying the equity. >> Okay. I want rates down. I mean, he's been pounding the table about rates. He did the 50-year mortgage. He offered the 50 year. I think the 50-year backfired. >> Yeah. >> If it if it was you you agree with that? >> Yeah. It didn't make any mathematical sense. >> If you're going to do 50 years, do 100. >> No, but it it just beyond a certain point. There's such diminishing returns. It cost you more. >> $100 or something like just to go to 100 years, bro. It really expanded. >> 100 years ago way more backlash, though. >> Uh, not maybe. But if you you got to sell it, you still got to sell it. You're only going to keep the house eight years anyway. Look, if a 30-year mortgage doesn't make a 15 doesn't make sense, a 30 doesn't make sense, a 50 and 100 don't make sense. >> Just make it so that you could write off the full amount of house. That's it. >> Don't buy a house. It's a terrible investment. It should come with a warning like a black spot blackbox label. This is not an investment. This is a pure liability. >> When is it an investment or it can never be an investment? >> This is not a This is not a house. What we're doing right here, right now, some guy's going to be driving his car down the street saying that's a house. This is not a house. This is pretending to be a house. That is now conver commercial business producing income for the sheer sake of producing income. Single family home does not produce income. It is not an investment. And it should not be on your personal financial statement. >> What about your house in Malibu that you purchased? >> I was I was at the house yesterday. I met with the the administrator of the EPA, Lee Zeldon. >> Do they do they still want you to tear down the house? >> Mhm. Yeah. Yeah. They want me to tear it down if if I spend $1 more than 50% of the assessed value of the house, not the land. If I spend $1 more than the assessed value to clean it up, to get rid of all the smoke damage out of the floors, the walls, the Hback, [sighs and gasps] um, replace the kitchen, the rooms that were burnt, the roofing, blah blah blah. If I spend more than I think the number is like $2.5 million, five, half of five million. If I spend more $1 more, they want me to tear down the entire structure. >> Who is tracking how much money you spend on the house? >> The permit, the permit process. I anything I spend. >> Yeah, but if a contractor says, "Hey, listen. We'll do this job for half the price." I'm just saying. And hey, maybe you know, we work out a deal. You shout me out and we're good. >> Yeah. But I mean, right now, right now, they're watching everything I do. >> So, this is a FEMA rule, a FEMA rule. FEMA came in on the coastlines. By the way, the coastline of California is treated exactly as the coastline of Louisiana. So it said and these these rules these FEMA rules were put in after the storms in New York. So New York remember the big the big floods there four or five years ago. FEMA came and said emergency federal emergency we'll pay to replace your house. But if your house if you spend more than 50% of the value of the house it was a smart rule for floods. If you spend more than 50%, if it's a complete tear down because of the floods, then you need to rebuild that house so that it's above a flood plane in case of another flood because we, the federal government, doesn't want to keep fixing flood damage, but Malibu doesn't have a flood problem. Okay? The state of California has never been under the threat of a flood after the fires. Fires and floods aren't the same thing as your viewer knows, but clearly FEMA doesn't understand. If I fix more than 50% of the value of my house because of the fires, they want me to destroy 38 pillars that are 36-inch wide concrete going 30 ft deep into the granite bedrock. They want me to pull all that infrastructure out. They want me to take 26 in I have 8,000 square feet, 23 in of concrete poured underneath my house as a platform that prevented this house from being burnt to the ground. They want me to pull all that infrastructure up and rebuild a new house if I spend $1 more on a house that's never been been violated by by floods. >> Do you regret buying the house? >> Yes, of course. Like the why I I regret buying my house in Golden Beach. >> Why did you buy the house in Malibu? >> Because it just seems it goes against like buying a house for yourself and California. >> N California wasn't We bought that house six or seven years ago. They hadn't I was going to go live there, you know, four or five months of the year, not pay income taxes, but if if if I I wouldn't go there and buy today. Now, that being said, that coastline, 18 homes next to me were burnt to the ground. The next house, there's me right here. 18 homes in between me. The next house is built to concrete. Everything in between was built to timber. I don't burn. He don't burn. Okay. Then there's Larry Ellison, Larry's son. like billions of billionaire row. Okay, on this side of the house on the east side there's 80 homes burnt to the ground. All those homes are going to become 14 and 20 15$20 million homes. This side's going to become 50 and 60 70 million homes. >> Did you see that? They're turning some of those lots into low-inccome housing. >> Not not on the beach. No, it was just >> No, no, it's impossible. >> Just today. >> Impossible. [laughter] Invest. >> They're doing they're doing section 8 next year. >> Yeah. No, it's impossible. >> This now when those houses burn. When those houses burn, >> those should be vertical buildings. Those should be vertical buildings like in Miami. I should not This is for all the haters out there. My home that's 10,000 square ft. Should not I should not one family should not be allowed to live in that house. That house should be a vertical house of 50 different families. >> Traffic would be an issue there. Traffic's already an issue >> and not as bad as it would be if you had 50 residents per structure. >> You think traffic's a problem in the Gaza Strip? They're going to fix it. It's going to be unbelievable there. >> But when properties burn around you and you have the only house left, does that make your house more valuable? >> Yeah, I think it make I mean >> or less valuable because there's nothing around it. >> No, it's view's good now. View's perfect. [laughter] I mean, realistically, there's nothing >> neighbor my next door neighbor, Jay Stein and his wife. Okay. Jay Jay had $3 million worth of insurance. His home was worth 14 million. >> Mine's worth 40 or 50. >> Yeah. >> So, I'm sitting next to him. He's half the lot. He's worth 15. Let's say he's worth 20, whatever. He loses his house. There's no house there. He only had $3 million worth of insurance. >> Yeah. >> So, he's out. He's at He lost whatever he lost. He's got to rebuild now. On top of that, he's got to rebuild. So, he's got to rebuild. Let's say it cost him 10 to rebuild. Now, he's got 13 in it. No, he's got 10 seven. He's got seven less the insurance. >> Yeah. >> Now, his house is probably worth 20. It's going to go up cuz it's brand new. But he's got to sell it to somebody that can only get $3 million worth of insurance on it. So, who's that going to be? And I'm rich. Rich guy's going to walk in. I'll pay it. I'm only going to visit visit three or four times a year. All those homes, by the way, no, none of those are real property owners there, except for the lady two doors down that's been there since she's 85. She's effed cuz she can't fix it. She didn't have enough insurance. She's not going to be able to spend the money. It's going to take her seven years to rebuild. So, it was a terrible investment. My home in Golden Beach was a terrible investment. This was a terrible investment. >> But it didn't none of it. None I at some point you can do stupid. Now, as soon as you go from working solo to hiring even a small team, you realize how much more complicated running a business gets. 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So, start your business today with the industry's best business partner and start hearing. All you got to do to get started is sign up for your $1 a month trial when you go to shopify.com/ic with the link down below in the description. Again, it's shopify.comic. Shopify.com. The link is also down below in the description. Thanks so much to Shopify for sponsoring this episode. So, what is your investing strategy then for this year? >> Well, I'm in a big transition as I was telling you. So, I mean, we're still buying real estate. So, I I only bought one deal last year. It was the worst year we've had to buy real estate. It was a big deal. 330 mil $230 million real estate with $100 million of Bitcoin. >> Um but it's [clears throat] the only deal I did. We're extremely disciplined, you know, you know. So we want to add real estate. >> Yeah, >> we want to add real estate and Bitcoin. This real estate Bitcoin hybrid. We want to continue to build that out. We think it's a financial vehicle that'll disrupt the re breed industry. We're going to move into the wealth business and create a mini Blackstone or Maril Lynch for it to democratize to the mass affluent and provide insurance, banking. >> Is that like a family office style >> multif family office? >> Okay. >> So for for the masses. So we're we're basically we're already doing the consulting. We have about 15,000 customers. We're consulting in their companies. plumbing, HVAC, dentist, chiropractors, small businesses where we're going in helping them scale their businesses, taking care of their operations, looking at their 401 plan plans, their insurance plans, and starting to consolidate all that. >> That's going to be a monster business. >> Yeah. And what was the logic behind adding Bitcoin to real estate funds? >> Yeah. So, I've been tinkering with Bitcoin for about well, since uh 2011. I came to this town to do a gig for this group that was a business that they only had Bitcoin and they wanted me to come in and speak. And I said, "Yeah, I'll come speak." And they said, "We can only pay you in Bitcoin." I'm like, "I don't know what that is." Long story short, they gave me 115 Bitcoin. I still have those today. And I got introduced to Bitcoin. And I still own those Bitcoin today. They're worth 70 times 115, whatever that number is, 8 million, 8.4 million. It's been worth 126 times 115. And I started getting introduced to this this technological money and bought a little bit when it was 16. Bought some more at 30. Watched it go back to 15,000. Watched it go back to 60. Been playing with it. So last year, and this is what I said earlier, real estate's a heavy, very, very heavy. You cannot I can't take my $5 billion and say be more today. I can't take the rents and magically say raise rents. I can't magically lower expenses on a property. It's very It's a heavy >> Yeah, >> it's like a railroad, right? You can't just move it. So, I can't move the value. So, I'm always looking for ways to increase the value of the real estate. I could paint it. I could put a new roof on it. I could have a new pool. I could build a new theater. I could change the name. I could bring in new furniture. But all that stuff costs money. And now I was like, or I could add Bitcoin. Cost money to add the Bitcoin, but I'm going to fuse the two together. So, we started playing with models uh January of 25. We found a 70 $85 million property that we bought for 72. And rather than just taking the 72 and a cheaper piece of real estate, I filled up the difference with Bitcoin. Does it worry does it worry you if Bitcoin drops let's just say another like 50% and then it's already dropped 50%. >> Another 50%. >> We we we bought 2,000 Bitcoin last year and our average price is probably 92 somewhere between 88 92. So I'm underwater on the Bitcoin now and it doesn't bother me at all because we're tied it we tied it to a long-term asset. >> Now if I believed Bitcoin was going to zero I would have never done any of this. So you're just saying the difference in what you think of what you think the market price is of the property that you bought and then what you actually paid for it. You put that delta into coin >> bas delta the discount delta. >> Mhm. >> You could take discounts your whole life. Discounts don't turn into more value. >> Okay. >> You bought a car car was 90,000. You bought it for 80. You still have the same car just cheaper. >> And so on this specific >> you're not going to sell it for more money because you got a discount. It's still going to be worth whatever it's worth. It could be worth more or less. The discount's a discount. It's something you do one time. So rather than rather than me buying the real estate cheaper, I bought a exceptional piece of real estate out of bankruptcy. By the way, we stole this piece of real estate. It was 23. The last one we did, we've been elevating these. We did five of them last year. The first one was uh I think it was 88 million total, 72 of real estate, >> 15 million of Bitcoin. So about 87 to $88 million. So, we have the two, we put them together in LLC, we fuse them together. The investors are now owning both of these, not one of these. Still cash flows. And we add Bitcoin from the from the cash flow every month. Every month, we cash flow about 250 a month there. 250,000. And we add Bitcoin. We've added Bitcoin at 90. We've added Bitcoin at 82. We've added Bitcoin this month at 66 or 62. Okay. So, we keep adding Bitcoin. Now, we fuse these together to build vehicles, a bunch of these together. So, our goal last year was to do 10 of them. We did five because I couldn't find the right real estate because I have to be, let's say this real estate, the last deal we did was three, it was worth 350 and we paid 230. Stole the real estate. So, what I did was I I paid this much for the real estate and I stacked the rest with Bitcoin. $100 million purchase. The largest real estate Bitcoin deal ever done on the planet. 230 for the real estate, 100 million in Bitcoin. about,75 pieces, put them in an LLC, and the three of us invested in it. I paid for it, and then I called you guys up and said, "Hey, you want to invest in this deal?" What is it? Uh $230 million of real estate that that would take 350 to build it today. Would take 350 to build it. We could sell all these off, the units off as condos today for a million2 each times 366. That's probably uh $200 million score. and we still own our Bitcoin, but we want to fuse them together because I want to take this product. I want to take this public to the public markets and compete against the REITs. So, I I compete against REITs, real estate investment trust, >> the Starwoods, the Blackstones, the Avalons, the Camdens. They own most of these large complexes. When you're driving around town, you'll see these names. They own them. They're REITs. They were created in 1965. That that rule's 60 years old. Those rules have not changed for 60 years. And one of those rules is you must distribute 90% of your cash to your investors because it was a it was a it was a tax advantage structure that hasn't changed in 65 years. Those there's 190 REITs. They control $4.3 trillion of real estate. They control most of the commercial real estate in the country and they're underperforming. Okay? They were built for one purpose and that purpose 65 years his age. No changes. Bunch of old white guys. They push all their cash out so they have no more cash to reinvest in their businesses. Tech companies do not push all their cash out. They pay a dividend about this big, just enough to say they pay a dividend and they keep the rest of their cash to acquire companies. REITs don't work like that. They're broken. So, I am building something that competes against the REITs because the REITs can never come in and add Bitcoin. We think we think we take this real estate asset that would normally do 12% a year or 15. that's a good real estate deal to 25 and 30% a year by combining the two together. >> So, what are the some of the main reasons you're bullish on Bitcoin? >> Well, I I believe in the technology of money. I believe the technology if if I knew nothing, I'd be like, we're not going to a gold. We're not going back to gold. Gold failed. If gold didn't fail, we wouldn't be trading in paper. >> So, then do you think that the US will adopt Bitcoin as Bitcoin back dollar or what what are like the main bull cases that you have for for Bitcoin? Well, there's a there's a number of things. I think that the technology I think I underestimated that the internet would one day send video or that you the three of us would sit around and then you guys would clip a video and then other people would clip a video and then we'd end up with 30 different pieces of video that would live into the future forever without a movie production studio. I [ __ ] I never imagined that would ever happen. And I think that we're not imagining what's going to happen with the blockchain and with Bitcoin. I think mortgages in the future will be tied to bitcoins that a bitcoin on a single family home residence rather than buying PMI insurance which is garbage product worth nothing to the mortgage holder the the the the insurance insuring the mortgage against the guy that gave the mortgage to make sure it gets paid. that 200 bucks or 400 bucks a month you're paying that would be a much better investment for all parties if that was $400 a bitcoin in the future because it'll be a store value that will increase as we uh uh uh print more paper for sure and that's a possibility but I'm curious in terms of what your bull case is right now for Bitcoin like what integration do you see with Bitcoin where it makes sense that that will actually be the future because that's like that's sort of like a speculative like you know if this then that but there is no like like evidence at the current moment of Bitcoin sort of doing that. >> Yeah, a store of value is good enough for me. That's fine with me. I don't I don't need I I invest in real estate because I believe it's a store of value and it retards against inflation and the printing of money. I property values go up if you print more money, concrete cost, labor cost, everything goes up. So, I I'm trying to convert I'm trying to convert a piece of paper, fiat paper, into something more um that that is resistant and will become more valuable in the future. I wouldn't invest in Nvidia. It's not what I do. I don't buy I don't trade paper for paper. I'm not going to trade a piece of fiat for another fiat run by other companies. Okay. The third part of the bullcase for me is with Bitcoin, I don't have a chairman. I don't have any competition. I don't have employees there. I have no payroll. I have no plumbing, no roofs, no HVAC, no property taxes. I have pure technology. So, the basis of the future of it is the technology of money. I don't think we go back to gold. I'm 60 68 years old this month. I've never bought a piece of gold. Never had anybody offer me gold or silver for that fact for any of our products. I have had people offer us Bitcoin for the last 13 years for our products and services. >> Why do you think gold has gone up so much then? Well, because I think people are scared right now. I think people see the US dollars getting banked. You know, that they're worried about the US government printing money. I think that there's a bunch of geopolitical issues going on with China trying to make plays against us. >> But why isn't that money flowing into Bitcoin? Cuz I'm about 7% Bitcoin right now through the just a normal Bitcoin ETF. 7% of my portfolio. >> Uh yeah. >> And one of the narratives that I see right now is that Bitcoin is failing in the sense that gold is now the store of value. It seems as though people are putting their money elsewhere and that we're printing more money. Bitcoin's going down. Prices are rising. Bitcoin is going down. We see global turmoil. Bitcoin is going down. Store wealth. People have moved to gold. Bitcoin is going down. Part of me thinks how much of that is the narrative has changed on Bitcoin versus are people just putting their money elsewhere? >> Yeah. Just flows. Baby boomers scared. What are they going to go to? They've been they've been for 60 years they've been pounding gold gold. It's 5,000 years old, man. So, somebody said it's going to take uh 20 years for Bitcoin to be as a market cap to be worth more than gold. I'm like, if Bitcoin in 32 years has a greater market cap than gold, that's a 5,000 year old product. So, just new people coming in, how much gold do you have? >> Few ounces. >> Yeah. So, you don't have 7% of your portfolio? >> No. >> No, it's nothing. So, I have no gold. I I have more ammunition than I have gold. So, look, it's a bit it's a gamble, you know. It's a bit of a gamble. It's about bit of a lottery ticket with the real estate. If the Bitcoin goes to zero and find out the whole thing was a a big scam, I still have my real estate, still have my cash flow. >> But if Bitcoin goes to a million dollars, >> is the Bitcoin fund being is it fine right now or like how is the >> fantastic? So, how is it fantastic? >> Well, how how how would I ever be in trouble if I paid cash for everything? So, I paid cash for the real estate, closed the deal, paid cash for the Bitcoin. We paid cash for 2,000 Bitcoin last year. I paid cash for the real estate. Then we put a loan on the real estate for 140. So, I owe $90 million on the real estate and nothing on the Bitcoin. So, put the put the numbers together. I have $230 million of real estate. Today, we have $80 million worth of Bitcoin. It's not worth a hundred. >> So, then how are you making money personally on this deal? >> Well, I don't make any money until we either sell the deal. I look, I don't make money on a deal until we call a promote. So, until I sell a deal, I don't make any money. So all these guys on the internet like Grant Cardone's management fees. We're 1% fee going in. I get 1% when we buy the deal. Cardone Capital does. >> So >> when we sell the deal, we get 1%. >> Okay. Explain to me. So >> Okay. When I buy a $230 million deal, I get a 1% fee. $2.3 million. >> Okay. And that's is that paid to you directly or is >> No, it's paid to Cardone Capital. Okay. >> I don't I don't even get a salary from Cardone Capital, but whatever. It flows through to me. I get money at some point. I'm going to get money. >> Okay. We have a 1% fee when we exit the asset. So, we exit the asset for $500 million. I'm going to get another $5 million. I have 35 employees over there. Okay. Our fees are less than Blackstones. So, nobody can say my fees are too much. >> But that's it. It's just that's those are the only fees that are involved. >> No, no. I'm I'm tell you the rest. We get a on this particular deal. All all deals are different. On this particular deal, we're giving a 8% preferred to the investor >> and a 50/50 split. So, I can make a load of money on this deal. If this deal makes 500 million, I'll make I'll make after I pay 8% times six. Let's say I pay 8% a year. Let's say the deal doesn't cash flow enough. [clears throat] I didn't pay any distributions. >> I owe the investors 8%. >> Let's go 10 years so it's easy. Times 10. I owe 80% of all the first proceeds back to the investors. They get they're a preferred investor. They get the first 80% and then we chop it up 50/50. if it only does 8% a year. Okay, by the way, it it did better than treasuries. It matched the S&P 500 if you took them all, not just the top seven. >> They would get the entire eight. And I I made nothing in that deal. I bought it. I found it. I bought it. I paid for it. I managed it. I busted my ass. I'm the one responsible for distributions, etc. And I made nothing. Now, if it does 40% though a year, which I think it does, then I'm gonna make 40 uh times 10 years, 400%. Less the 80. We're going to chop up 320. I'm going to make 160%. And I had no money in the deal. I'll get rich in that deal. But that's not what I'm going to do. This is how I'm going to get rich. I'm going to put 10 or 15 or 20 of these together. I'm going to bring I'm going to put the whole bucket together and I'm g bring it to Wall Street and take it public. And that should happen this year. And that's how I get rich. And I don't really get rich in that. We're just going to raise a bunch of money from the street, become a piece of paper. Cardone Capital will become an investment vehicle. We might take our education company and add it. We might take the consulting company and add it. We might take 10x health systems and add it. Have a conglomerate of Cardone companies, bring them to the public market, turn into a piece of paper, raise billions of dollars, and then I get I I get to become another version of myself. And so and so >> and then I'll have to quit doing podcasts talking about 400 grand is not a lot of money. [laughter] >> Then it'll be $50 million, not a lot of money. >> What? Yeah. >> On on the I'm curious still on the fee side of things because I'm still not completely understanding. So from the perspective of the investor, the person that's like investing with you, those are the only fees that they're exposed to. It's like, okay, if I want to put in a million dollars in your fund, this is like the real estate and Bitcoin fund, then immediately I will lose $10,000 to do that. And then I put 900. >> Why would you lose 10,000? Well, it's the cost of it's the asset management fee. So, okay, sir. That's bad bad word. Let me just say >> you're not losing 10,000. $1 million goes into that deal. >> Sure. 990,000 does not go in that deal. 100% of the money becomes an investment in that deal. Your position is $1 million. It is not $9.90. >> Okay. So, the position >> but but when you run money through IAS, >> it's going to get your million dollars is not a million dollars. They're taking their fee off of that. Probably a point and a half to 2%. >> Sure. But whenever >> So, you put money in a Blackstone. Yeah. You put a million dollars into Blackstone, your million dollars didn't get invested. They took their fee right there. >> Okay. >> If you go into a private offering today, >> let's say you got chance to go into, I don't know, SpaceX or ABTC or >> uh that's Eric's company. >> Yeah. >> They're going to take their fee off. >> It'll be through a fund that lets you invest into the private company. >> It's going to be a million dollars. They're going to pull they're going to squeeze off 35,000 or 75,000 plus some legal >> in Cardone Capital. $1 million. If you put a million, when you put a million dollars in, in this case, we raised on that deal, we raisedundred and um what did we raise 100 plus 90? 190 million $190 million to this investor. We owe 190 back. Okay. I get a fee 1% going in. Again, the property has to be able to support the asset. This is not a makeup startup. This is not a company that doesn't have earnings. This is a real estate asset. The day one, we have cash flow. For me, I'm not building something, right? I'm not building the microphone saying, "We got a great idea for a microphone company. I need your money to build out microphones to then go sell them." Okay? This isn't a startup, dude. I'm buying a piece of an asset that is cash flow positive day one. I [clears throat] mean, on this particular deal, this was in bankruptcy with Blackstone. Blackstone was the lender. Blackstone in the state of Florida, the lender cannot take over the property without bringing it to the courts and allowing the marketplace to decide. Okay? Blackstone wanted this asset. Trust me, they wanted it bad. Okay? >> I went to the courts and said, "I knew the asset. It was in my backyard. We we've been tracking this asset for probably three years. I knew it was in trouble. The guy's been building it for 17. like these things don't you know they they probably been thinking about taking over Iran for two or three years. It wasn't over a weekend they decided okay this is our move. So I've been working on this asset for a long time. So when when I saw it finally it's going to be in problems. I went to the owner and went to Blackstone. Couldn't get any support from the lender. They don't want to help me. They want it. Okay. the the the the the debt they gave him was a setup to get it back from the seller, from the owner. [clears throat] >> I went to the owner and I went to the bankruptcy courts. I went to the bankruptcy courts. I said, "I'm putting a stalking horse in. It's my right as a Miami, Florida resident to use what's called a stalking horse negotiation tactic where I'm going to set the bid on the asset. I bid $228 million. Here's a check for 20 million. I'm risking my money. There's no investors involved at this point. I'm putting all the due diligence, all the energy, all the risk into this thing. I'm going to buy this asset for 228 million was our first offer. We ended up at 235. I'll give you $20 million check right now. Cash it. Deposit it into an escro account and I will close 10 days after you award the deal to me with all cash. No due diligence. So now they have to say public announcement. They have to accept it. >> Public announcement. Grant Cardone put a stalking horse in there. They have to tell the marketplace now. Uh you guys have until I think this case it was May 15th to to to to bid. They sent it out. 14 institutions showed up. All of them are big boys. >> It's a quarter of a billion dollars. Okay. So who's going to come? It ain't gonna be Johnny and in his, you know, >> $400,000 income. >> Yeah. So, [laughter] so, so he comes in, they come, the the institutions come in, all the big builders, the big players, the Steven Rosses, like tremendous amounts of >> super money, way bigger money than me. I'm competing with Giants. They come in and say, "Yeah, dude. We can do the 228, no problem." H that $20 million today. Yeah. We got to go to committee for that. If they're a big institution or a big REIT that you can't just swing in slinging like I do. >> Mhm. >> Yeah. I'm a little guy, dude. I The only advantage I have in the marketplace is swag. >> It's speed, you know? I I like is a is is is a little bit of overconfidence that like that's my damn This is my gear. My gear is I can do this deal. I don't know if I could do the deal. I don't even know if I could raise the money for the deal. >> So, what do most people get wrong about [snorts] the way your business works? >> They don't ask me like you guys did. They do YouTube videos without asking. >> That's that's the main thing is like like >> No, nobody that has any negative comments about Cardone Capital or what I'm doing has ever interviewed. >> Do you do you allow them to reach out to you that if they wanted to discuss and ask is there an open channel? Well, you you guys have reached out to me. I've never not responded. >> So, what we'll typically do, just so the viewer has an idea, if someone wants to come on the podcast, so for example, this was a very >> Have I ever have I ever said, "You guys can't ask me about anything." >> No. >> No. You've been fully transparent about everything, which is which is really great. Um cuz some people are not, but for you, yeah, you were just you walked in. >> Have I ever asked for, "Hey guys, let's talk about what we're going to talk about first." >> No, no, no. You didn't ask for a brief. And I will say in in from our last episode too, you didn't ask us to cut anything. >> Yeah. I would never. >> There was not a single thing where you're like, >> "People actually ask you to do that?" >> Oh, yeah. >> Yeah. I mean, I would never. >> Dude, you look I did it. Use it. The point is to the viewers like, "Dude, you're going to make mistakes." Now, now [clears throat] I should I say that? I don't know. There's nobody nobody regulates what I say online. Nobody's allowed in my office to delete anything. We used to We used to have that. People be like, "You can't say that." We were raising money. We didn't know. 12 years ago we started raising or 11 years ago we started raising money and my office was petri because the SEC is like watching everything. >> Okay. So the thing that we do here on the ice coffee is if we have someone on the podcast what we will naturally do is look up like okay what are the main controversies with this person? What are the main things? That's where you get your juice from. >> Well that's just what we should be asking questions. You don't want to tune into a nice coffee hour podcast and it just be like a lukewarm thing. Like we're going to do our best >> no matter what you may think. We truly will be doing our best for every single episode to touch on every all the topics that you want. Sometimes we can, sometimes we can't. >> We'll put like 20 hours of research in every single podcast. >> We didn't on this one because we found out yesterday we're filming it today, which we were very lucky to know that you make it happen. >> I've probably done at least 100 families. And so in doing this this research in the time that we had, like the main controversy surrounding you would just be mostly around the fee schedule for your uh Cardone Capital. People don't quite understand it and I still like don't even understand it. >> Well, god damn. What what don't you understand, bro? Like like like what what's your IQ? >> My IQ probably like 70. >> I mean, god damn. It's 1%. Let me let me go over it [laughter] again. >> It it's it's [ __ ] simple. 1% times whatever was raised. >> Mhm. >> When we buy it, what was what was the what did the mortgage broker charge me? 1% probably a half to 1%. What did the broker charge? A half 1%. What did the state charge me? All those become fees on that deal. Okay, there's a lot of fees. Not just me, other institutions, other other people involved in the transaction. Title, escro, etc. Okay, legal. Legal is, you know, probably on that deal was probably $100,000 that gets added to that deal. Now, we're all invested in that deal. I am, you are with the three of us split the deal three ways. We all have the same fees. We're sharing in that. I in addition to whatever upside, I get a 1% fee that you didn't get when I bought the deal. I found it. I funded it. I negotiated it. >> I went through all the [ __ ] >> Okay? And by the way, you're going to hold me responsible for whether it works or not. [clears throat] >> When we sell the asset, in that case, we bought that 230 million. Let's say we sell that asset >> for a hundred million more >> than we paid for it, just for simple math. I think we will. By the way, it was it's worth a hundred million more to build it today. It would cost at least 130 million more to build it. I just happen to find a great deal and get it. If it made 100, I get a 1% fee when we sell it out of the 100 profit before we do our split. And is there no [clears throat] potential for fees between the two bookends? If I refinance it, let's say 7 years goes by and I take the refinancing to it's 140 and all of a sudden the asset's worth 500 million and I can borrow another 100. I get a 1% fee when we return your equity. >> Mhm. >> It's called a refinance. That would be the only fee that's >> 1% to buy it, 1% to sell it, and a 1% refinance fee. >> But what about what about the claim of like you can >> And by the way, you want me you want Hold on. I'll do that. Okay. Let's We're not even talking about the Bitcoin yet. Okay, we're just talking about the real estate. Okay, because cuz again, you want the the guy that's your partner, you want me to make money because if I'm making money, you're making money. Okay, so when we refinance it seven years from now, that's our goal. One of our goals in this project is I would refinance the asset, we put 100 million to buy it for round numbers, just the real estate, forget the Bitcoin. We also raised 100 million for the Bitcoin. So, we'll leave that aside for now. So, uh, a year from now, I'm like, "Hey guys, I got great news." What? What? I refinanced the project. For me to refinance, that means it had to go up in value. For me to refinance it, pay off the old mortgage, get a new one bigger, and then return everybody's money. Here's your 33 million. Here's your 33 million, and I get my 33 million. Okay? By the way, I get a little one point. And I'm going to get anything above that 100 that I return to you, I get a split on, >> guys. I didn't just do a hundred. Here's your third. Here's your third. Here's my third. I got anothering hundred. And you're like, "God damn, bro. Did you sell the Bitcoin?" No, bro. We still own the Bitcoin. Okay. I get half the Bitcoin. I'm sorry. Half the upside of that 100. I'm going to get I'm going to give you guys 50 million to split and I get 50 million. You got all your money back plus 25 million. 25 million and I got 50. Okay? Because on this deal, it's an 80. It's a 8% preferred and a 5050 split. That means if it took seven years, you earned 8% a year while you waited to get back your 100 and another 25 million. And you're like, Grant, did you sell the property? No, bro. We still own it. Well, Grant, what's my membership in it? 1/3. 1/3. I didn't dilute you. I returned all your money. I made money. You made money. You got your cash flow. You got your 8%. And not like Blackstone, not like the institutions in the REITs, they would pay you your hundred back, say bye-bye, and they would own that asset. We still own the asset. We did that twice last year. Twice last year, I returned 47% on one deal. Fund one, we returned 100% of all the money invested to our investors annualized nine years at 47% a year. Fund one, fund two, it was 27%. This is after all the fees, all the splits, all the promotes. See, this is what these guys that do videos that are click baiting me, they never get actually get into the numbers. >> This is great. This is why we like to ask the questions and why a lot of people believe when they come on the podcast that it's not in their best interest to let us ask whatever questions they ask, but that's not true. >> It's always in the best interest to be transparent. Okay? Now, we're not going to change the minds of those out there that want to clickbait my name. You're not You're not I'm not trying to change your mind, dude. I love you guys, by the way. All you punks. I love you guys. You I know. I I I I understand. Keep playing the game. Clickbait my Say whatever you want. Use the thumbnail. Don't Don't Don't make accusations that aren't true when you know they're not true. Cuz I I you know, if you have anything, I will come after you. But I'm I'm telling those guys right now, do your thing, dude. Do your thing. Just don't go into defamation cuz the moment you move into defamation and own something, if you own any property, I'm going to come get it from you. And if you don't own anything, play your game cuz I'm not going to sue anybody that doesn't own anything because there's nothing to get. >> Why don't you make videos directly addressing those people? >> Too busy too busy posting fake AI. [laughter] >> I just imagine the ROI would be >> I had an investor the other day call said, "Man, I'm really concerned about this one guy that's doing videos and you should go and respond to him." I'm like, "Bro, I you know, the firemen don't stop for every barking dog on their way to a fire." >> It's rule number one of the internet, man, is you can't respond to everybody. And once you start doing that, then everyone else is like, "Oh, he's going to respond." Yeah, >> that's just not true, though. >> I would agree. >> If it's you could say it's a barking dog, but what if it's another house on fire on your way to a house? >> It's a dog. Dude, >> I'm just saying I I do think >> this is actually not a barking dog. This is fleas on a barking dog. >> That's fair. So you you got to pick what what look the last time I was here I was also involved in a $100 million defamation suit that was very public with John Leisure that was a CEO of T-Mobile. It's very big and very nasty and very noisy. So why would I do that? I initiated that and then leave this other thing alone. It's a business. It's a business strategy. This is what Trump's so good at. >> What was the outcome of the T-Mobile lawsuit? Well, I can't say what it was just, you know, we we we everybody's good now. >> Okay. >> So, and you're happy. Happy with you out. >> It was I'm very happy with it. I'm thrilled. So, um you know, >> okay. >> Very, very happy. Look, I don't start anything that I'm not going to finish and I don't start anything that I'm not going to win. Like I it's a you know it's very important that if you're going to walk into a battle you you know you can you you you need to come out of that battle like you don't want to battle forever and coming out a winner is really important. So don't start some [ __ ] you can't finish and where there's not a positive outcome and hopefully a positive outcome for everybody not just my side. Mhm. >> The perfect scenario would be I win, they win, we all win. >> And but I can't get into the exact settlement of the numbers and all that just because we're both under confidentiality. >> Yeah. So, one thing that's heavily debated online is people can't figure out your net worth, which I am sure you probably are very amused by. You see all these articles, oh, it is speculated he's worth 400 million. It's speculated he's worth 1.6 million. Like, yeah. >> Why do you think people have no idea what you're worth? And because I'm private because I'm a private I'm a private individual. So I'm not publicly held. So Forbes is never going to list my I mean unless I went public. If I went public tomorrow I'd be on a Forbes list. >> What do you have to lose by going public with that information? >> Well I mean public is a publicly traded but I'm saying by disclosing that I should say. >> Well because Forbes is not going to go do an audit at their expense of my privately held companies and their value. Like the people that are talking about my network, they they don't they'd have to know what 10X Health Systems worth. They'd have to know what my position is in 10X Health System. Then they'd have to know what Cardone Ventures is worth. Then they have to know the income, the gross revenues of my Cardone educa, the Cardone Training Technologies, the education portal, and our net profits. Then they'd have to know what Cardone Capital, the investment vehicle, is worth because it's worth more money than probably the other three because it continues to raise money, long-term sticky money for long periods of time. It's the most valuable of all the companies probably second. Yeah. F first and then 10XL system. 10XL system is going to be worth probably $4 billion. But and then the fifth company would be my holdings and all the real estate. So now, who's going to go do an audit on all those things? >> Fair enough. >> And why would why why do I need to do it? I know what the net worth is. And by the way, I know the net worth is a it is a complete vanity number. Okay? It's it's too low. The internet is lower than it is, >> but the vanity it's a vanity number. If I told you right now, do it's 1.7 bill38,000 and 929 bucks today. It's [snorts] a vanity for none of it's none of it's even spendable >> because it's all tied up in assets. >> It's all illquid assets. >> Could you answer this? Are you a billionaire? >> 100%. No, I can't I can't tell you 100% that I am because it's more than that. >> See, you're asking the wrong question. >> How much more? Is that the right question? >> Under. >> It's over. if I could liquidate the assets, but I can't. So, it's like again, we're back to vanity numbers. Like, what what's what's the purpose? It's more than I ever dreamed it would be. >> It is the lifestyle. >> And it's less than it should be. So, >> and it's less than it will be. >> So, we just heard someone say that if you have a $100 million, you could basically do 95% of the stuff that a billionaire could do. Is that true? >> That's not true. >> What do you have both of them? And you can't you can't do >> What do you get at a billion? >> There's things I can't do, dude. There's things that I cannot do. >> What can't you do? >> I can't go buy a yacht tomorrow. >> Cuz I know I know I know the boat I want. >> I can't buy what I want. >> What do you want? >> I want a 375 ft um Fed ship. >> How much will that cost? >> It cost probably $400 million. >> Why not? >> And and and another another 40 million a year. >> Why not just lease? >> Because I want it to be mine. I want it to be mine. I want it to be mine exactly the way I want. I don't I mean I could, dude. Like like I've done three summers like that, you know? That's cool. But I mean it's something I want, right? Like why do you want to go to Korea? >> It was a good deal for points. >> Yeah, I know. But but that's the only reason it was >> I haven't been. But you know >> Yeah, I know. But at some point you at some point the deal doesn't matter. It's what you There's some things I just want, right? And and it doesn't mean it makes sense. I mean, >> how much do you have to be worth to be able to buy a $400 million yacht? >> Yeah, it's a good question. You know, you need you need you need 400 million because you want to pay cash for it. >> Yeah. >> And then you need to be able to say, "Hey, is there a way to write that 400 million off it?" Because I would put it in the charter >> and I'd probably use it 10 weeks in the year and charter it the rest of the time >> because I want that big spank at the beginning >> if I can if I can get that and and I'm not sure I can. Some people believe I can. Some people think no. And then you got to figure out, okay, how do I make sense of $40 million, $3.3 million of negative cash flow a year and you didn't earn any money on the 400 million cuz this boat's going to zero. >> Yeah. >> All boats go to zero, planes go to zero, everything goes to zero. >> Now, I think there's a world that we live in right now where we're going to go from 3,000 billionaires to probably 9,000 or 10,000 billionaires. And those guys are going to walk around the planet with an economic footprint that is so massive. They're all gonna want boats. They're they don't want they don't want a charter. They're like, "Bro, I want my boat with my toys with my name on the pillows." Like, you're talking about immense amounts of money. Trillion dollars just hit Miami. Mark Ellison, Griffin, both Google boys, like the list goes on and on. A trillion dollars hit Miami in the last five or six weeks. Y trillion dollar footprint. Like that's that that that trillion dollars will be those guys will be worth $2 trillion here in the next five or 10 years or less because their money is just going to ju just explode. So I think you need I don't know dude I can't make sense of it. I just taught myself out of the boat >> myself cuz I it's it's it's because it's so impossible. >> It's like I'm never going to be worth enough money. I'm going to say that's probably 10 billion to comfortably because at that level you just have to be able to write a check and not pay attention to it and not have it bother you because you run the numbers you lost. >> The 10 billion needs to earn at least five or 600 million a year. That's how these guys are doing it. They're like, "Okay, I'm going to pay it back >> every month. I'll pay I can pay it off." Like, so you know, you need a lot of money, dude. You need a lot of liquid assets that are that are rolling or you >> Yeah. >> How badly do you want it, though? Because what I wonder, >> you talked me out of it pretty quick. You just taught me out of the whole thing. >> What I wonder is like if this requires you to grind away for five more years of your life to be able to then >> This doesn't require grind. This is this is this is when you have to get >> You're trading time and energy resources. >> This is when you have to trade the grind to for a play. I can't be Grant Cardone the grinder and get that boat. I have to be Grant Cardone smart public markets. Everybody that owns these boats is public. Every one of them, they're all public. There's no not public. They're all public. The Fertittas, all of them, dude. Facebook, Jeff, they all own these big boats, dude. Why? They leveraged paper. They turned an idea into a company. Company became a piece of paper. People paper became explosive to tens of millions or hundreds of millions of owners. That value goes up as they continue to report good news. And that's the achievement. You know, now you're hanging out with a bunch of guys that you have something in common with. >> You have the best and worst thing they've ever done. Buy a boat. >> Aside from buying a boat, is there any other thing that you want to spend a bunch of money on? For example, that watch. My god, the watch is crazy. >> No, I hate this watch. >> Why? Are you serious? Then why do you wear it? >> Uh because it went with my jacket, so I brought it on this trip. Yeah, I hate this watch, dude. >> What do you not like about it? >> Because it was a terrible investment. >> How much? bought three Richards >> and I hate all I knew when I did it. >> You know, there's some things that you spend money on, you're like, I'm never spending money on that. Like, it's just kind of a moral thing. I knew this was stupid. >> I knew the timing was wrong. That market was hot. I'm like, it's going to pull back. >> Why did you do it? >> I wanted to watch. Dude, >> how how stupid can you go? Why? >> Well, you know, there's a song written called Cash Flow, and it has my voice in the song, and the in the song it says, "How stupid can you go? >> You can go as stupid as your cash flow." This is a stupid investment, but I paid for it out of passive income. >> How much did you pay for that watch? >> I I forget. I'm best. >> You don't even want to know. >> No, not really. >> It's probably worth more. It's probably worth more than it was. But do you not like the watch because it went down in value or do you I I don't like it because it represents >> crazy watch. Could I see it? >> It represents throw it. >> Dude, >> it represents >> You're not supposed to throw. >> It represents the house, dude. >> It is. >> How much is that watch, Graham? >> It's got to be 400, 500. >> Yeah, I was going to say maybe like 300 lowend. It could be 500. They have so many models of Richards. >> But I owned another one, a black one that was a million dollar watch. It's a big watch >> and it was stolen from me. >> Do you have insurance? >> Off my arm? No, I didn't have insurance. >> But look, this a to whole total hype deal, okay? Like there's no gold, no, you know, this this is junk. >> Yeah, but it's the engineering and the precision of the watch that people look at. >> I don't think so. I think it's a terrible investment. >> It's not even moving. >> Yes, it is. >> Oh, it is moving. Sorry. >> Yeah. >> I don't know how to read it. It's too much. There's too much stuff going on on the face. >> Yeah. So anyway, but but it represents to me a a a bad choice, a poor choice. You know, it's not me. This is not what I would do. Now, there's a paddic I own, a green paddic. >> Oh, I've seen that one. That was the one you're talking about. >> That watch. I don't regret buying that watch. That's one one of 25 in the world. It'll be worth I'll give it to my kids. I'm not giving this to my kids. Like 20 years from now, nobody's going to want this. This Richard, >> the one I'm selling, >> I probably should. >> Yeah, >> it's a great idea. I have I have two boxes of watches. I wouldn't buy any of them again. What would you say is your worst investment of all time? >> The worst investment of all time would have been I bought Lehman Brothers for a dollar and it went to zero. >> So you made an you made an infinite loss. >> I lost $1 million. Not infinite. [clears throat] >> Oh, I thought you said you bought it for $1. >> I bought it for $1. I bought a million dollars. I $1 and it went to zero. >> I lost a million dollars. >> What was the best investment you've ever made? Uh, one of the best for me or for my investors >> for you. >> Uh, I bought a I bought a uh, well, the largest the best investments I've ever made were the companies that we we have >> cuz I started I bootstrapped everything. >> Excel system. We paid a million and a half for that company. It's probably worth today. It's probably worth $4 billion. We paid a million dollars out of future revenue and we own 99% of the company. So, that was a great deal, but it hadn't it hadn't it hadn't seen fruition yet. The I bought a piece of real estate in Florida. Uh I put 15 million down. I sold a house, pulled money out of a business, and crashed retirement accounts to buy this one piece of property. I paid 15 million. I paid 58 million for the property. I put a $43 million loan. Put $15 million down. That piece of property is worth with 15 in it is worth $250. And it cash flowed every month, every year for 13 years. I've refinanced it three times. I've taken 15 back plus another 55 million back. Plus, I just got 60 million back. So, I've taken out all my money plus 130 million. still own it and it still cash flows. That That's probably the best deal I ever did. This will be the kid. Do you still the thing that I give my kids? >> Yeah, you own it all personal. >> I own 91% of that asset. My My brother and my sister owned some of it, but I'll probably pass that on to my kids if my kids are listening. If they're nice to me, always. >> How much do you spend per month personally? >> Not much. I don't spend a lot of money. >> What do you think you spend per month? Like $50,000, $100,000 a month? >> Yeah, maybe. You don't know if it like you you have no idea how much money you're spending per month. >> Uh well, I mean I could figure it out pretty quick right now. I don't I don't have a mortgage on the house. >> Like what's on the MX statements? >> Oh, that's most of that's going to be run from the through the company. So, it's all business. This trip I'm on is a business trip. So, I have a secret meeting tomorrow here in town that I can't talk about. You'll know about it on the 13th of this month. But, >> it's funny. I asked about you wouldn't even tell me. >> It'll be all over the media on the 13th. I didn't know what it is. But, but it's a secret meeting that I'm sworn to bought the Hard Rock. No, no, >> that's crazy. >> Um, that that that's something I wish I could do. Like I would love to own one of these big places, but I'll leave that to >> I could see you as a casino owner like Steve Win. >> Like like you know how much you spend per month? >> Oh yeah. So what do I spend in my >> like your wife, your kids? >> Well, I mean I get I get notices $27, $42. You get notices for that still? >> Everyone my kids credit cards are tied in my >> And what do you look at? Just the dollar amount or what? >> I hit my wife yesterday. I said, "Who the hell keeps hitting this goddamn account for $12765?" >> Who was it? >> She's like, "Oh, I'm buying uh Sabrina some clothes for this event she's going to do." I said, "Okay, okay, it's approved." >> At what? >> Like like like my yesterday Elena hits me, "Hey, uh I got a bid to clean the deck up on the house. It's I got one bid at 8,000, another bid at 12,000. I want to go with the 8,000. Is it approved?" I'm like, "Yeah, it's approved." But I even said, "Hey, don't do the stain. It doesn't need to be stained." >> That's funny. Sand it. She's like, "It's more money to sand it. I've already done it." I said, "I don't think they can stain, right?" She's like, "Oh, yeah, they can." I said, "Okay, it's a brute." >> So, I don't know. I don't know. >> What dollar amount do they need to run it by you before spending the money? >> Uh, it depends on who it is and what department. Like the ad budgets that Jared, >> this is you personally. This is personal, son. >> Oh. Well, they're supposed to run everything but me, >> you know. >> So, even like parking? [laughter] >> No. No. >> Hey, listen. Valet is $10. >> No. >> And you don't give them like a certain budget per month that they can or can't spend. >> Well, who are you talking about? >> Like your family like the No, no, no. I didn't understand that. My wife has her own money. >> So, she she she has her money and my kids have their money. So my kids like, "Hey, I need some money for Dude, you got money? Dude, don't call me." They kids never call me for money. They call their mom. That's why I keep seeing these credit card things because then the mom always does. They will never call me for money because they know I'm going to say, "You got your own money." >> And how are your kids making their own money? >> Because they invest, you know, they had a salary to work for the company. I thought we talked about this last time, but the kids have a salary. >> They have a responsibility. They haven't gotten their salary this year. And if they're watching, they haven't done what they contracted to do, so they won't get their salary. >> Would you ever fire your kids if they're not sure? >> 100%. Dude, >> would you fire everybody? No. No. No. >> Yeah. >> Dude, I I I I had a text message that went out today. Hey, both of the kids are not performing their duties. Don't pay them this year. >> So, >> are you worried about violating some labor law? So now what we did, let me just go back and back. [laughter] No, look, if you can't abuse your kids, >> who can you abuse, right? So, um, >> and if you can't write your kids off, like like you, every family should be writing their kids off as a write-off, as a tax deduction, not I can't write off an allowance. So, if I give my kids 500 bucks a month, it's an allowance. It's an entitlement. It's like it's a give me You can't write that off. But if I give them $500 a month as a salary, but then they have to pay tax on it. That's right. >> So, it's a way that you can you can like in my case, what I do is I pay them I pay them one fee a year. I think I think the number's 50 grand. 50 grand a year they get. >> Now, I could give the the the 15year-old a $50,000 check, but it wouldn't be a responsible thing for me to do. So, how do I control that? I take the 50 grand. I say this is you were paid 50 grand. Better for them to pay taxes than me. >> Yeah. Yeah. >> And then I take the 50 grand and I divert it to Cardone Capital. So they become an investor in my project. >> Do they want to? >> I get a 50. I get I get one point >> one point when they buy one. By the way, at one point my kid and my wife and by the way you'd pay the same one point. You're saying this everybody preferred >> in that in the case of the last deal. They would they're all invested in that deal. By the way, every one of my family members are invested in that deal. My brother, my sister invest in those deals and my kids. And at one point on the way in and on the way out. Okay. So, watch what happens now. Um, that money then goes to Cardone Capital and it if it pays cash flow, then that's what they live off of. So, let's say they've invested 50 grand into that project and it paid 5% a year. They're only going to get 5% 2500 2500. What is that? 25 $200 a month. So, how much can they spend a month? How stupid can you go? You can go as stupid as your cash flow. So, they can spend $200 a month off that one investment. Now, Sabrina's got like $8,000 a month coming in cuz she's invested in every project. So, she could spend eight grand a month. She's 16 years old, done with co high school. She gets 8,000 every single month. Papa, I want a Cardier uh um panter. I'm like, buy it yourself. You got your own money? >> And she does. >> I know what she's got. I know what her net worth is. >> And she's like, nah, I don't want that bad. You buy a >> When do you think she's going to be a millionaire? >> Well, [snorts] >> uh, she already hit it. >> Yeah, she did. >> Well, she's getting 8,000 a month. So, $100,000 a year. >> There was another deal. There's a deal that I tal I can't talk about. There was a private deal that I can't talk about, >> but she as part of this transaction and negotiations earned a million dollars. >> Wow. Earned $1 million. $1 million deal when she was 14 years old. >> What did she do with the money? >> I can't talk about it more than that, but >> it was [clears throat] I've mentioned it already in the interview today. >> I I'll give you that hint. >> Okay. >> And but I can't go into the details of how what she did. She did. I mean, it was nothing nothing weird. I mean, but it was something brilliant. >> Did that change her mentality when it comes to >> Well, yeah. Because the next year, last year, she owed $400,000 in taxes. I said, "Beg, you understand you have a million dollars. You can only use 600." She took the 600 and immediately invested it. >> And I said, "You," she's like, "Why do I invest a whole million?" I said, "Because you you got a $400,000 tax bill next year. >> It it's actually going to be 380. She doesn't have the tax. >> Why wouldn't you have her get something where she gets bonus depreciation on that and then >> she needs in that case, she she just couldn't get enough >> to get it and she's not a professional real. She's not uh uh she doesn't she doesn't fall under 469. That the 469. >> That would be the first thing I'd do is get get her to qualify real estate. >> Yeah, you're probably right. We didn't do that. So, you know, um and >> Wow. >> What kind of car did you end up getting? >> We got her a Tesla. >> Okay. Model, which one? >> Uh why? What's the entry level? >> That's what I That's what you got picked up in. >> Yeah. Yeah. It's a great car. >> Yeah. >> Yeah. I did that really to support Elon. >> Do you talk with Elon? No, I never have. >> Do you talk with Trump? >> I have. >> Have or do? >> I have and do. >> Yeah, they did the interview together. >> So you Yeah, but like Yeah, but when I Sure, but like does that mean that you know you could shoot him a text and he'll like >> I could >> What's the last conversation you guys had? >> Christmas day. >> What did you say or what did he say? >> Just tell him he's doing a great job. My wife was like, "What? Why are you calling Trump on the president?" >> You called him? >> Yeah. On on on on Christmas Day. I said because probably nobody else will. >> That's true. If he's getting one phone call that day, you know, his phone's not going to be blown up. >> And what did you just say? Merry Christmas. Like, hope you're having a great day. >> Yeah. >> He says, "Wait till you see what I do this year." [laughter] [gasps] >> That's hilarious. >> Yeah. Yeah. >> Interesting. Who do you go to for advice? Uh, man, look, I study a lot, you know, like, um, I don't really go to anybody and say, "What would you do?" I mean, I my friend Bob Dugen that's taken a number of companies public, I've asked him for advice. I've sat down with Michael Sailor probably five or six times about our real estate Bitcoin hybrid. >> So, I've gotten a lot of input from from um from him. I've met last year, we met with eight banks. I don't think it's the kind of advice you're talking about who do I go to for like mentoring or whatever. >> But most of what I do now is I'm reaching outside of my own network to say, "Hey, I need to go find out what is the people at Bank of America know Jeffrey Horvitz created is probably responsible for every REIT that was created in this country. >> It's $4 trillion. If I if I could get 5 percent like that's what I'm like how do I get five percent of a$ four trillion dollar market that'd be 200 billion now I can buy now I can buy anything I want I could have two boats dude I could have one over there and one over here >> [ __ ] cuz now it doesn't matter >> but but so I'll go meet with Jeff I'll go I'm trying to get access to those kind of guys to say hey guys look what's broken how do I fit in here so we met with eight banks last year that gave me tremendous bunch a great feedback about what I could do to really scale up. >> What's your best piece of non-financial advice, >> you know, value your family, like play as a team, you know? There's times where I forgot that we were a team. Like, like if I could go back and fix stuff, like I mean, like the Elena's been so beneficial to me. The kids, I used to say, man, I I don't regret waiting, but some ways I wish I'd have done it earlier with the kids and the wife. I wasn't ready, though. So it was it doesn't matter cuz I wasn't ready to have a wife and I wasn't ready to have kids. >> But that team man solidifying that team and honoring that team and knowing your team and you know that is the most valuable thing. >> Yeah. And the other thing is the money really look I can I can think back of times in my life where there were happier funner times that than just the big just the life you know the the the the creep up the other the the piece of advice I would give people when you're on the grind up dude love it because one day you're not going to have that and you're going to miss it. It is so painful. It's so nasty. And but if you can live through it and get through it, you're going to look back on that time and say, "That was the richest part of my life." Was the richest part of my life was on the grind up >> when it was 18-hour days getting up at 4:00 in the morning, scared, terrified, not sure, feet hurt. you know that th those those times were so rich that you can't buy it with watches and cars and planes and but no matter how many times I say that it going to it's stilling painful. >> Yeah. >> And it's not fun. >> And most people don't get through it. But if you get through it, you're going to look back and say like somebody asked me, "Would you rather win a billion dollars or earn a billion dollars?" And I I'd be like, "Dude, I'd rather earn a billion because the first one's not You can't do the first one again. You can do the second one again." It's easier to earn a billion dollars than it is to win it. >> At what period of time in your life were you most motivated? >> Well, I would say that if you ask me that the last time I was here, I would say probably when I was 35 or 40. And then but the last time I felt that was when I did a 5-day fast >> about two months ago and I felt like I was 28 years old again on the fourth day. I was so motivated, dude. Like, I felt like I was I was all of a sudden this electrical unit that was just popping off. >> How long did it take for that to kick in? >> It was on the fourth day. >> Why do you think that happened? >> I did a three-day fast. 3 weeks later, I did a 5-day fast. I did a three-day fast. >> You look like you've lost a little weight. >> Oh, thank you. Yeah, thank you. Um I'm I'm probably just cutting up a little bit. Yeah. So, I did a three-day fast. >> My sister called me and said, "Hey, I think I have cancer. They want me to come back in. and they found a spot on my lung. I said, "Okay, good. When you going back in?" She's like, "Uh, in two weeks." I said, "No, you're too good. Okay, I I'll I'll get you to the MD Anderson in two weeks." I said, "What we're going to do?" It was on a Friday. What we're going to do right now is we're going to start a fast. And I said, "You're going to do a 72-h hour fast, and you're going to freaking just She's like, "What do you mean we're going to do it?" I said, "I'm going to do it with you. I'm I'm in Miami. You're in Houston. I'll do it with you, and we're going to do it. We're going to do a 72-h hour fast." She's like, "How do you know it's going to work?" I said, "Fuck, I don't know if it's going to work. I don't I don't know [ __ ] I just know this. If you starve your body, the cancer has nothing to live off of. You [ __ ] give a shot, man. I've seen some [ __ ] on the internet. They say, "Uh, fasting might work. That cost nothing. Let's try it." Do I need to go to doctors? I'm your doctor right now. We're going to [ __ ] do this. Let's go. Call me Dr. G. Okay. So, anyway, she agreed to the fast. I'm like, maybe I'll just lie to her, not do the fast. And I'm like, I got to do the fast now that I said I would do the fast. But I had 800 people in town Friday, Saturday, and Sunday. And I'm like, I got to fast and speak to these people and go to their lunch and VIP. Anyway, I did it. So, if you ever want to fast, just stay busy because it it's really easy if you're busy in front of a lot of people. >> But I had to produce on my feet for 20 like eight hours a day, every day while fasting. And it was easy and I felt great. Three weeks later went by, my wife, my wife, my sister, by the way, didn't have cancer. She was cleared. >> Um, three three and a half weeks later, I said, "Okay, I got to try a 5-day fast. See what happens on the fourth and fifth day." And the fourth day was like, >> it was like a,000x working out fasted. >> Yeah. Uh-huh. I did coffee and tea and water. >> No supplements. None of our supplements. >> Is that like a common response to fasting for that long? >> Like what was that? What was the hardest day? >> Probably the hardest thing. It's a bit of a mind [ __ ] right? You're like, "I'm going to stop eating." And you're like, "Oh, damn. I want a donut." Like almost instantly. >> You're like, "Ah, I want something to eat first." It's a weird It's a weird mental >> trip. The second day is a little hard. Um because the body's craving food. If you just deny it, then it's going to go consume whatever's left in the body. Uh the the third and fourth day were like piece of cake. On the fifth day though, the fifth day, I didn't actually finish 100 100 like what is it? Five times 24 is what? 120. >> On the fifth day, my body is like, "Hey, we want food now." The the my I was getting signals from my body at about 110 hours. There's no upside from here. >> No, >> there's no benefit of going another 10 hours. Just do your thing. >> What was the first meal you had? >> Uh what what did I eat? Rips. >> People are like, "Oh, don't go in heavy." What do you think people did >> 100 years ago? You go 5 days, you had to fast cuz there was no food. It's in the middle of winter. There was nothing to kill. People fast all the time. >> You finally get a kill. What do you Oh, we can't eat. >> [ __ ] do some broth. >> That's [ __ ] stupid. Eat. >> Everybody eat ate like a feast. [gasps and sighs] >> So, >> yeah. Interesting. Yeah. When it comes to family, I have to say the big takeaway from our last podcast was how good of a relationship you have with your children. [clears throat] >> Mhm. >> Yeah. >> I want that relationship. If I have a daughter, >> I want what you have with Sabrina. >> Yeah. Thank you. >> Like cuz I just saw the way she looked at you. >> Yeah. >> And the way you treated her and saw her and wanted to like push her out of her comfort zone. I really admired that. >> Yeah. Thank you. Yeah. It's a like if you took everything away from me, you know, it'd be the kids, man. like even even more than my you know I don't want my wife to hear this but cuz we I wouldn't have the kids without the wife but my wife's been a great choice for me but the kids man there's nothing richer. >> How do you do how do you raise good kids like that? >> Uh well you know it's always like okay is this going to always work? You know I'll keep waiting for the other foot to fall off you know the other shoe to fall off. Okay maybe they're going to turn on me. >> You know they're 16 and 14 now. So, you know, I invest time with them, man. I spend a lot of time with I've changed my whole schedule. I have never not taken their phone call. If they called in right now, I take the call. >> Um, I bring them to meetings with me. I create stuff with them. Um, you know, I only had 10 years with my dad and I had I'll bet you I didn't have 10 days out of 10 years. M >> and I just, you know, like I'm going to I'm going to spend time with these kids. That's why we homeschooled them. We didn't homeschool them because we thought it was good for them. We thought it was good for me >> really >> 100%. I'm like, I can see them in the morning. I'm not going to drive. We're driving them to school. I'm doing the drive to school. So that that's not quality time. You know, they're six and eight years old. You're missing the best the best moments of the life. You're driving them to school to what? To go to prison. And then I got to go pick them up on their schedule. And then we went to the school and I said, "I want to take my kids out of school for three months." You can't do that. I said, "Well, what do you mean I can't do that? How about this? How about I just take them out forever?" We took them home and started homeschooling them. And so when I leave in the morning, they're there. When I come home, they're there. Or I say, "Hey, go to work with me." So right now, they're working on two programs, but anytime they're home in Miami, they're going to be in the office with me making calls, listening to calls. What values do you try? >> They've been in they've been in they've been I had a guy named Johnny that's worked for me for years. Sabrina No, Scarlet was sitting there. Johnny came in. I said, "Johnny, I need this, this, and this." None. He's like starts giving me some [ __ ] And I'm like, "Hey, what the [ __ ] are you talking about? I forgot she was there." I said, "I'll [ __ ] smoke your ass right now. Get you the [ __ ] out of here. You've been here. I don't want any backlash." And she's watching all this. And then she watches me go back and say, "Johnny, man, I might have overreacted there." And he's like, "No, you didn't. It was right. I was acting like a dick. I said, "You [ __ ] ain't right. You were. [laughter] Never do that again." And Scarlet got to see all that. And she got to see me go back and talk to him. And she got to see him come back and say he was wrong. You know, Sabrina was in a in one of these very, very big negotiations. Big massive deal. She got to watch all the parts of it. People are getting emotional. People are accusing people. Sabrina and Scarlet were both in Bank of America, Bank of America, Wells Fargo, JP Morgan, and Goldman Sachs meetings where we were talking about taking the companies public. She they're in these meetings >> listening to all these extremely intelligent people and their job is this. Your job is to take notes. They both have to take notes and they're just sitting there. The bankers at the end are like, "What did you guys write about?" And I said, "You write down everything you don't understand, you write it. Anything you don't understand, you write it down the word. and we'll go back and look them up later. >> Wow. >> So that's, you know, I I invest a lot of time with him, man. And in some ways it it's overpowered me being a better husband because I've thrown myself so much into being a parent that you know like like there's sometimes there's not enough left over to say I I need to be spending that same time on my marriage and with my wife and honoring her and spending time with her and including her. >> So it's got a little bit of a trick, you know. >> Yeah. Do you think that your kids are happier this way or do you think that there's a part of them that like a part of a child >> he always goes there always how do I know how do I know which way they'd be happy you could ask them they enjoy and they're happy >> but they have nothing to compare to >> so look they they they lost a lot of stuff by being homeschooled they're they're not part of the soccer team >> they're not cheerleaders they're not part of the the the the uh club whatever clubs are doing today. So, they don't they don't get all that. >> Do you think it's worth it to let them explore some of those things just to have that experience? >> I mean, you know, they're 16 and 14 like they're exploring stuff. They they they you know, I know their kids their friend Thank you. I know their friends are all talking about whatever 14-year-olds talk about. You know, Sabrina's dating, so I know what I was doing when I was 15. >> Yeah. What's that like, >> dude? It's like, okay, bro, you just gota you just got to like understand she don't grow up without growing up. So, you got to wish for her to grow up, you know? Like I don't I always say I don't want to get older. Yeah. Yeah. Grant, you actually want to get older because if you don't get older, you die. So, and my kids got to grow up. They got to grow through it. >> Do you do background checks on the like if she's gone on a date? put a PI on the guy she's going out with. >> I think it's right. >> You think it's smart, right? >> Yeah. I >> If if I were you, I probably would. >> Would you have? >> Yes, >> of course. >> Sounds like something. Would you do a background check? Would you do a financial check on the on the family members? >> Probably not a financial what you would think that maybe they put the guy up to dating your daughter so that they >> Everybody wants to date my daughter. Are you kidding? like I you know >> maybe not the financial check but I I do like a criminal background. >> You're just not you're just not >> So what if they checked every box but they came back as broke. >> Yeah. Well, you can be with them. Dude, you you're not you're not that those kids aren't getting any money. [snorts] >> Like why why would I would tell my kids, look, why are you buy Why are you with a guy that can't produce? >> Well, it's a kid. [laughter] It's like it's like my kids produce. Well, >> so who's paying for [ __ ] lunch? >> Who paying for lunch? Who's paying for lunch? Let me ask you that. >> And so you'd be livid if your daughter went out with a guy and she paid for lunch >> over and over again 100%. >> If it if it becomes a >> I'm like, "Hey guys, like like >> who's paying for lunch? I ain't paying for it. I already told everybody I'm not paying for it." So you got you got 8,000 a month. Scarlet's got maybe three or $4,000 a month. Okay, you guys are going to deplete your funds here. You're with a kid that can never pay. You're you're with a kid that can't be in exchange. He's not going to even feel good about this [ __ ] He's going to feel like you're a little [ __ ] here in a little bit. He's going to resent you. Okay. You You never want to have that much power in a relationship where you're paying for everything. So when when we go to lunch, sometimes my kids pay. I'm like, "You guys pay for lunch. How much is it?" I don't know. It's your [ __ ] bill. It ain't mine. >> It sounds like having kids was a good financial decision for you. >> Well, it% [laughter] you get the money back in the fun. >> But why should my kids like every time a bill comes with when I'm with my kids, okay? I'm like, "You want to pay for it? You want me to pay for it? Okay, good. I'm going to pay for it. I'll pay for this one, but you tell me how much we should tip the tip the waiter. Well, how much should I tip? I don't know. How good was he? It wasn't very good at all. Good. Put zero. And you send you give it to to to the to the to the waiter. I wanted to tip the guy. By the way, tell him I wanted to tip him, but you didn't because you thought the service sucked. In all those exchanges, however they turn out, she's learning something. You know, Scarlet on the other hand's like me, I want to give them 20%. Said, "Do you want to give everybody 20%." Because it's my money. Let it be your money. Let's see how much you want to give. And then they're like, "Shit." See, they learn. They don't learn by me telling them. >> You know what's interesting is I asked you if you'd be okay if your wife made more money than you. And you're like, "Well, good luck." Basically, and you're raising a daughter that will likely end up making a lot of money. She's already made millions. And so >> 100% >> in the dating marketplace like >> if she will realistically be the bread winner in whatever relationship she ends up getting into. Correct or false? >> Maybe not. I mean no she could she could marry up. She will be >> she could marry up. >> Yeah. >> You know she and she should by the way if she's watching this both of them I would to re highly recommend they both marry up. >> And would she then give up on like to be a mother give up on all of her business ventures the stuff she's doing with you in order to then be a mother? Uh uh I don't that's up to her, you know. It depends on the deadbeat she's with, [laughter] you know. So So you >> How hard is it to like the guy that your daughter's going on a date with? >> Not hard. >> Okay. >> Not hard. I know. He's a like li likeable enough guy, you know. But you know, the question now is like whose name? I've always had this conversation with him. >> Oh, interesting. >> Whose name you going to keep? I really would appreciate if you guys would keep my name on the brand here and not Sabrina Cardone Jefferson. Sabrina Cardone period. Like, no, don't add an a. >> And should he take Cardone? >> Good for me. [laughter] [ __ ] why not, dude? >> More branding, dude. >> Now, now, now, and and by the way, I I don't want to put you guys in a bad situation. You got You got to have a prenup. >> Mhm. >> Okay. I didn't do one. I don't have a prenup, but >> Do you wish you did? Yeah. Uh-huh. Yeah. It it was a mistake and and I'll tell you why in a second. >> Um these guys will not be given money if they if they if they don't have prenup. So you guys can not have a prenup, but you're not going to get any of my money. You will be excluded from the wheel if you don't have a prenup. So that takes the pressure off of them to do it. >> Now, why do I regret not getting a pre prenup? First of all, I trusted Elena explicitly. She's not a gold digger. She says she is, but that she doesn't mean it like that. She means she wants the best out of everything and she wants us to do well and she knows that I'm ambitious and I want to do well, but she wasn't with me for the money. In fact, the money turned her off. She thought it it meant she was going to lose some power because I had money and I wasn't rich. I mean, I was I I was doing all right, but I wasn't, you know, I wasn't super rich. And so, I'm just like, "Yeah, we'll figure it out later." That's the problem with the prenup. Okay? You either get an agreement or you leave it where there's no agreement. You understand? So, when you don't have a prenup, the be beautiful thing about a prenup is you now agree it's not about money. And as time goes on later is people have problems and difficulties. There's this thing hanging over you. They're like, "Shit, we're going to have to figure out whether this is about money or not." And now we got to negotiate something that should have already been negotiated. [sighs and gasps] I love how like transparent you are with these things or at least like the fact that you have unique opinions outside of the Overton window that you've just came to on your own maybe with some exposure to different information and stuff, but you just have your own view. >> What is Overton? What What does that >> like Overton window? >> Yeah. What does that mean? >> It's a term for the stuff that that's within the Overton window is the stuff that's more socially acceptable opinions to hold. Think of group think that most people have these views. >> Well, it's not that. It's it's what is socially or so acceptable or not socially acceptable opinions or beliefs to have. >> So it's not even group think. It's just what is okay. >> Yeah. Yeah. >> Yeah. So like you have opinions that are outside of the Overton window is what I would say and and you just are totally >> and it's in your own unique way and they they seem to serve you pretty well. >> And I'm not saying I'm right about any of this. I'm right for me up to this point and the point where I'm like okay that wasn't right anymore. Like I used to buy value add real estate. We don't buy that anymore. You know, it's not what I want, right? It's not the asset class I want. But it doesn't it it was, you know, I bought one unit to start with. I wouldn't do that again. It was stupid. It was ridiculous. It's not necessary. I bought a single I bought a single family home, but I was like people like he doesn't take his own advice. I was already I was rich. Like it it was stupid. I'm tell the watch was stupid. You know, see this is the problem with the watch and the in the rolls, the cullinance. I don't I got rid of all those cars. I regret every $400,000 car I bought because now my wife loved the cars. She loved those. Okay. My my partner Brandon Dawson and Natalie, they love that [ __ ] I don't like it. I don't like the way I feel when I roll up. So, I don't know if it's a shame thing or lack of selfworth or I don't like the message it sends to the marketplace. Like, I forgot I had this watch on until you brought it up and now I'm like, "Oh, the audience needs the watch. Some young guy out there is going to be like, I got to get me a Richard." You know? No, you don't, dude. Don't get a Richard. No good to Rolley. You don't need either one of them. They're they're meaningless. But, you know what I'm saying? Like, sometimes I feel like it sets the wrong example. But do you feel like people need to go through that to learn that lesson and buy the things and get the houses and the cars and the watches? >> No, you don't have to. I mean, you have to if you're an idiot, but if you're a wise person, you would learn by somebody else's mistakes. Anybody can learn from their own mistakes. Like all these people say, "Oh, I learn more from my losses." No, you should learn from somebody else's losses, not from your own. You know, a wise person would learn. You went down this path. He went down that path. His path didn't work. Yours did. I should follow you, not him. But people don't do that. I got to do it my own way. And they go off on a third. >> What What things can you buy then that have the most value that you think spend money in these ways? This is worth >> on your health. I mean, >> yeah. >> Any investment in yourself is a good investment. church time, um, community time. Like the five years I got out of a treatment center for drug addiction, I spent every single day. I don't think I missed a day for 5 years helping other people get off drugs. That time will that time will always come back to me. Always, cuz I can tap into that anytime I want to. No, I can help people, real people, like people that are hurting. So, um, anything, any events, the seminars, uh, going to podcast, watching I probably do I probably watch I'll watch every All-In podcast. >> Those are great. >> They're interviewing people. >> Yeah. >> That none of us have access to, you know, that that is so deflationary that I get to listen to the giants of the planet as many times I want, by the way, because I could listen to it one time, second time, a third time, a fourth time. I'm going to pick up so much stuff. Like I'll do I'll do one of those every day while I'm working out and it starts turning [ __ ] on, >> you know? I start like I start becoming this I feel bigger after I listen to them. I'm like, "Fuck, look what these guys are doing, [clears throat] man." And they're talking about [ __ ] I don't even know. I like I have to look words up and tokenization and the blockchain and, you know, AI generation and like I don't even know what they're talking about. >> Yeah. >> Humanoids. Like I said, what is a humanoid? I don't know. >> I watch Chris Camila's podcast. >> Yeah. She was saying the same stuff as Chris Camilo, but humanoid robots. >> I think everybody has a robot for we, you know, the Tesla proves that to me. So people are worried about it replacing plumbers. I'm like, it's not replacing plumbers for 20 or 30 years, if ever. But Elon, I don't think it's three years. He's going to give me a robot. I'm going to overpay for it, but I'm going to have a security guard at my house. My wife loves having us. We We had full-time security for years when we were doing our live events >> and and we had a reason to have them. I will have a I don't know if it's humanoid, but there will be a robot providing security at my house 24/7 365 and probably going to have be able to do some other chores. >> You know, that's a no-brainer. Everybody could have them. Arm security. Yeah, I think it's going to come to that. >> That's That's a no-brainer. >> What if your daughter wanted to marry a robot? >> Dude, that's wild. >> Would you be okay with that? >> No. >> What if he was a good guy? >> I don't No. Can't do a robot, [laughter] dude. Can't do a robot. You know, >> I just think eventually the robots are going to get so good they're going to be indistinguishable from people and they will have >> whatever personality matches what you are looking for in a partner. Yeah, that's crazy. That's crazy. You got too much free time on your ass. [laughter] >> This is Gary Vee believes that people are going to have relationships with robots and AI. >> It's It's only a matter of time. They're going to be marrying robots. >> Yeah. >> So, you wouldn't approve of that? >> No. >> Okay. >> No, because you know the spiritual I mean, is the robot spiritual? I don't It doesn't seem like it. >> All I got to say is thank you so much for your openness. >> Yeah, you got your time. You got it. You got it. Tune in to the 13th. It's a local thing that's going to happen here in Las Vegas on the 13th. It'll be announced on 13th 14th. >> Deal. >> I'm looking forward to it. >> So, that's the secret thing. >> Okay. >> And it it'll it'll kind of surprise you what it what it is. It's out out of the box of anything we talked about. So, >> well, this was a blast. Thank you so much for letting us know that you're going to be in town. And 100% we'll we'll revisit this in a year or two. We'll do another episode three. Guys, let us know what you thought of the episode. Thank you so much for tuning in to the podcast. Yeah. Oh, also I just want to say big thank you to the members. We're now posting membership videos for you guys. We're taking phone calls from members. So, if you want to call in, they could call in. We're going to answer their questions. We're getting really interesting questions. One guy is dating two girls and and has to figure out which one he wants to date exclusively. >> You should add a robot. Add a robot [laughter] to figure it out. >> A third. So, uh, with that said, make sure to join. Really appreciate it. We'll link to your information down below. Thank you for your openness, transparency, everything. >> Thank you. Also guys, you can listen to us on audio only. We're on everything from Apple Podcast, Spotify. You name it, we're on it. Check it out. The link is down below in the description as well. Thank you guys so much for watching. We really hope you enjoyed the episode. And we have some phenomenal news as a cherry on top. We have a banger episode coming out this next Sunday, even better. But that episode is ready to watch right now. Early access with no ads, no cuts for channel members. So feel free to join and you'll be able to watch the episode right now. Here's a quick sneak peek. >> Turn on the lights. >> So, what was the final amount that you [music] won in Beast Games 2? >> $5,16,000. It was one of the hardest things I've ever done. >> What would you criticize about Beast Games? >> The truth is what I won won't end up in my pocket.