How to Create Wealth Investing in Real Estate is a book written by Grant Cardone, AKA Uncle G, that teaches you crucial ins and outs of the real estate world.
He aims to show how to have success, avoid faulty thoughts and other common mistakes to steer clear of. He provides great plans and strategies for people with little to no background in the business world and no degree.
Uncle G’s goal is always to show how people can turn their lives upside down and find financial success just like he did in his mid 20s.
Grant was one of the first figures I studied when I first became an entrepreneur back in 2012. He’s constantly putting out value driven content and it never gets stale.
His personality and energy are infectious. My favorite work of his is The 10X Rule along with Sell or Be Sold.
Throughout this post I will share my thoughts from his real estate book along with why I believe my local lead gen biz is closely related to physical real estate.
We will also cover the importance of high-income skill sets and the necessity to continuing growing them. I think it’s crucial that you invest in these skills before jumping into the real estate world.
Grant already possessed many skills before he made his first real estate deal.
He was at the top of his profession as a salesman and was a top notch sales coach in a very profitable industry.
A high-income skill is defined as any particular skill that can generate at least $10,000/mo for you.
If you don’t possess a skill that can do that then I believe in finding a coaching program just like I did. I found a mentor that taught me the ins and outs of the local lead generation model and it allowed me to build supreme financial confidence.
I relate the local lead biz to physical real estate because I build assets that give me passive income but in local I don’t incur the big upfront cost.
Grant Cardone’s Background
Uncle G didn’t do his first real estate deal until he was 33. By that time he had already found great success in the sales world.
The first property was a single family house which he acquired a normal loan for, telling the bank that he planned to live in the home (which he didn’t).
He was hooked.
Everything was smooth for the first six months. He was renting it out for $750/mo and making $130/mo profit. That was until the tenants picked up and moved out.
After 3 months he’d burned through all of his profits and quickly sold the house to avoid further losses.
He chose to never go into single family homes again. He acquired his first multi-family unit three years later in Houston, TX.
According to Grant, he check out over 500 apartment complexes over the course of 3 years.
He put up $350k cash on that first deal and now he has hundreds of millions in his real estate portfolio. Very impressive.
What Does Grant Look For In Real Estate Deals?
These are a few important things to know about how Grant looks at deals:
- must be in a great location
- difficult to replace
- not concerned about what he has to pay for
- will pay more for a deal where location can’t be replaced
One thing you’ll notice Grant repeating is the mistake most people make when they shop for real estate.
They have a budget.
It limits you when hunting for deals because you miss out on great deals that maybe you have to pay up for just a little bit.
You’ll need to find a way to produce more income and save more money. Period.
That’s why it’s so damn important for you to develop skill sets that increase your income level consistently.
There’s such an incredible opportunity in 2019 for you to develop digital marketing skill sets and work with small businesses.
I love using free traffic and using it to generate leads for said businesses.
Small business owners have money to spend and are willing to if they know that you can make them even more money.
Uncle G says it best, “who’s got my money?”
Grant’s Money Saving Strategy
I’ve gotta say that this strategy has changed my life. I employ it in my life today.
Let’s use an example, say you have $100k in monthly income.
He sends 40% of that to the IRS.
He puts another 40% into a savings account that NEVER gets touched unless the money is being used to purchase more real estate.
And the remaining 20% is what he lives off of. So with this example that would be $20k/mo to live on.
He stockpiles cash in the savings account and when he has enough to go in on a deal that he loves, then he strikes.
If you repeat this process over and over again, you’ll have an impressive portfolio in short order.
It sounds really nice, right?
So why don’t more people do it?
Because most people can’t afford to live on 20% of their income?
So why can’t they?
Because they don’t possess high-income skills!
Grant makes it very clear. He has no sympathy for anything but the use of this rule. He believes in it in his core and he lives by it.
If you can’t afford to live on 20% then your only option is to increase your income.
Grant has two high-income skills that allow him to make more money than most people out there.
Sales and keynote speaking.
Time for money yes, but let’s be honest… It’s time for A LOT of money.
That gives him the ability to save up a tremendous amount of money and he puts that into real estate deals that make him a lot more money.
In Conclusion
The great thing about Grant’s book, How to Create Wealth Investing in Real Estate, is that it’s filled with his personal experiences and practices he uses today.
It’s not all theory.
He aims to teach many lessons that will hopefully allow readers to avoid the same mistakes he made early in his real estate career.
He talks about how his life changed when he changed the people he surrounded himself with.
He went from being around people who told him how great he was doing to people who told him how much more he could do.
He says there was a point where he stepped back from doing real estate deals and that alone is the single largest mistake he’s made in his career.
As I said before, I’ve begun implementing Uncle G’s money saving teachings in my own life. I’m setting aside a ton of cash to be able to go in on deals with my mentor and now business partner, Dan.
He’s invested in some large real estate deals in his life already.
All of my lead generation success is due in large part to Dan. He was the first mentor that ever showed me a way to success.
We like to call it virtual real estate. We build sites and rank them high up in search engines. Use the traffic we get to create leads and send them to small business owners in the area.
Since I’m the owner of any site (or property) I create, I can do with it as I see fit. I have complete control. I choose which business I want to work with and if they don’t pay me every month then I find another one, kind of like a tenant.
I have sites that pay me hundreds or thousands a month on auto-pilot. Take this pool site below as an example. It’s been paying me $650/mo for over two years.
It consistently delivers leads to my clients, they’re happy. As long as it’s doing it’s job then I have no reason to touch it which allows me to have time to build more of these assets.
I truly enjoy what I do because I’ve had the chance to work with some great business owners and I’ve had people tell me that I’ve changed the lives of their family members.
Click here to take a closer look at the coaching program that IMO, has helped me learn the highest-income skill in internet business today.