There are many financial instruments at our disposal if we want to grow generational wealth. Here at Latino Wall Street, the main focus of more than a hundred thousand investors in this community is stock trading and cryptocurrency. Investing in real property is another way to build generational wealth.
Real estate investing is one of the best financial vehicles to grow generational wealth. Yet, mainstream real estate investment strategies are tailored to benefit big companies. Investment opportunities proposed to people in the middle to low-income categories fail to help them build lucrative generational wealth.
There are still so many uncharted waters in real estate. Companies just need to get more creative about strategies, especially if they want the middle-class market to actively participate in investment opportunities. A lot of people recognize the value of investing in real property, but few people know the best way to go about it. As such, a majority of the community is stuck in a vicious loop where the rich get richer, and the poor get poorer. For instance, Bill Gates has bought up practically all the farmland in the U.S, holding a whopping 268,984 acres.
We had the opportunity to delve deeper into real estate investing by interviewing one of the most popular Latino real estate moguls in the country, Grant Cardone. Ready to have your mind blown? Read on.
Why Invest in Real Estate?
There’s a reason why the rich keep buying real property. This investment delivers solid and real returns and is crucial for building long-term wealth. Most people in the middle to low-income class don’t know the benefits of having tangible assets in real property. What’s more, people from marginalized communities, like the Latinos, invest in real estate by buying houses. To Grant Cardone, housing is not a real asset.
Real assets appreciate over long periods of time. You get depreciation, leverage, cash flow, and appreciation. And all the pros tell us that real property investments act as great hedges against inflation.
Over the past decade, even before there were concerns of an incoming recession, there has already been an evident shrinkage in investing. The financial security of the middle-class has eroded over the years. The middle class now has a smaller share of the country’s wealth compared to the top 1%. We exist at a time when we’re witnessing the rise of the super-rich.
The conditions are alarming when you look at marginalized communities. Most Hispanics, for instance, target homeownership as the primary vehicle for wealth creation.
But, to Grant Cardone, the best recession-proof strategy Latinos should aim for is investing in real assets.
When the last recession hit, many people pulled back from real estate investing, fearing the worst. Most investors opted for cryptocurrency and the stock market in favor of real estate investing. However, the wealthy have been buying land for 1000’s of years, and up to now, people like Bill Gates and Mark Zuckerberg are still buying land.
The System is Rigged in Favor of the Rich
Most Americans have their money in banks and institutions. While these institutions advertise financial growth and security for the common people, they are often empty words.
Grant states that banks are the very institutions that marginalized communities. The Bank of America, Wells Fargo, Citibank, and City National don’t do much to help the individual. They won’t give you a loan or a good return on investment. For instance, if you have $1000 sitting in a bank, The Bank of America will pay $12 a year. When you factor in inflation, your money will be worth less each year, which means less buying power ultimately.
Banks also come with hidden fees. You’d probably be charged $5 every time you use a different ATM and $37 for the checks. You get Visa Cards, Mastercards, and a house, but that’s all a trap. The American Bank is built to make the wealthy wealthier. Therefore, when the ordinary person invests in real estate via institutions you get small returns.
Instead of leaving your money to depreciate in the bank, investing it in real estate could give you more returns on your investment. But it is not easy for the common people.
Grant says the current system works like this. Property assets are sold to the “ultra-super” wealthy institutions. There are trillion-dollar companies that sell these kinds of assets because they’re looking for cash flow or leverage. These institutions are looking at real property to protect them against inflation.
The majority of the American population falls under the low-income to middle-class tiers. Real estate is a complicated enough market as it is. What’s worse is the majority is shut out of investing opportunities by the big conglomerates and companies. The system is rigged so only the rich become wealthier at the expense of the “little guy.”
Investment Opportunities to Disrupt the Current System
Cryptos are easy to purchase, and so are EFTs and mutual funds. The “little guy” can get a fractional share in the stock market. But with real estate, the “little guy” gets to make the most out of their little investment.
Grant started from nothing. He was a non-accredited investor before finally being accredited. Before, it was hard to infiltrate the market as a non-accredited investor.
That’s why Grant decided to open new doors in real estate investing. As his business grew successful, he started purchasing properties and giving non-accredited investors the opportunity to become owners of a trophy property.
According to Grant, he wants to allow non-accredited investors to make the most complex investments in the world which is real estate.
Through Cardone Capital, Grant has created a way for the everyday person and the everyday family in America to invest in trophy real estate. He says that even buying a house is complicated in today’s market. Grant has made it easy for people with only a few thousand dollars to become his partners in over one hundred million dollar real estate transactions with cash flow and leverage for the first month.
Leverage means that Grant used the debt to buy four times the asset value. Most people don’t use debt correctly as we use it to buy goods that we consume, e.g., food and a house. But a house is a non-asset. The SEC doesn’t even report your home as an asset or as your net worth.
Net worth is only attached to property that produces cash flow. With a house, you get depreciation. But with a trophy asset, you get cash flow and the upside appreciation. Grant’s strategy is all about making complex investments available to normal people so they are no longer exclusive to accredited investors.
Fort Lauderdale Project
Grant’s newest project is the quarter-billion dollars worth building that’s been recently launched. It is a triple-A location with top-notch amenities, designed to bring cash flow, and is an institutional-quality asset.
Usually, it would take hundreds of thousands to millions of dollars for one to invest in such a premium property. Now, because of Grant’s strategy, anybody can invest in a trophy asset for at least $1,000 and up.
It is now 97% occupied, and the property has a walk score of 92%. This means, that once you step out, you can just walk a few blocks to do most of your errands.
This isn’t Grant’s first rodeo with non-accredited investors. He succeeded in raising $80 million in the past, and this project is a promising one that could even reach half a billion dollars in the future.
Grant’s Strategy Ensures Generational Wealth
Grant’s strategy gives you gains no matter what you invest. Let’s say you invest $10,000. Every quarter, you’ll get a check on that property. There are no middlemen, no brokers, and no bankers, which means no extra fees. Grant says that the goal is for clients to make 6% a year, which is likely to increase as the property appreciates.
This offer is brilliant compared to banks. When you look at the Bank of America, they’ll give you $12 or $10 for every ten grand you invest. You are also charged for setting up an account plus other services. Moreover, Grant states that the American currency is purposely being destroyed, so the cash flow alone [from the investment] is 50 times your bank account. But with real property, appreciation makes it worthwhile. Other factors also contribute to appreciation, for example, the positive migration into Fort Lauderdale. When you own the asset, your kids and your family will continue to get the quarterly distribution as long as Grant owns the property.
The Heart Behind the Project
Grant knew what it was like to come from nothing, and saw the reality of available opportunities for the marginalized. His hard work paid off and now he’s past the seven-figure mark.
But he never forgot to look back on the people who go through the same experience. He wanted to open doors for the little guy to build wealth from real assets, and now he has the power to make it happen.
“Now what I want to do is extend through others by making sure I can be a gamechanger,” Grant says. “I go back to what I said earlier: This system is rigged. It’s not enough to talk about it. You got to do something about it.”
He continues, “When you can make a difference in people’s lives, what happens is, I can extend my life and my legacy through others.”
His goal is to disrupt the financial and real estate market, and to “disrupt” means to wake up and make some changes. Disruption isn’t meant to screw other people, but to do the right thing and win so that your communities can change for the better.
Securing Your Future
Grant’s way is sure to protect common people against the hyperinflation that is on its way, and it will change the world. That means property bought now could be worth billions of dollars in the future which means you would have a 12x return on your $10,000.
Grant has created a vehicle for people who may only have $1,000 in their checking account. One grand is not enough to get you a weekend at Disney Land. But, Grant can make you an investor with that amount. No bank or institution has ever done this. Syndicates or real estate syndicates don’t offer the little guy a chance to invest in trophy property. But Grant is out to change the narrative.
Grant Cardone is also the best-selling author of The 10X Rule, and If You’re Not First, You’re Last. His books have been translated into Spanish to help Latinos build generational wealth. Grant has built over a $5 billion portfolio of multifamily properties from scratch. Moreover, he was named the #1 marketer to watch in 2017 by Forbes Magazine. With this latest strategy, Grant is literally out to change the entire financial system. He wants to warn Wall Street and say, “Hey, look out for the little guy.” Grant wants to see an inclusion of the little guy because it is clear that the system is wired to make one group wealthier.
Visit cardonecapital.com to learn more on how to invest in real estate, get some cash flow, and appreciation.