How do you become confident in the deal you are picking? How do you know a deal is a good deal? How do you decide when and how to invest and if it was a good investment? Plus, how do you find someone you trust to invest with?
When you invest with Grant Cardone and Cardone Capital we do things different than other funds and syndicators.
Think about who you are investing with. Do you know who is picking your deals for you in these funds? Do you know who is paying for it? Do you know the details?
With Cardone Capital you know that Grant Cardone is doing the following:
1. Grant picks EVERY deal
2. Grant pays for the deals
Grant has thirty-five years of real estate experience and has almost a billion in assets under management. Here’s what he says you need to know to have confidence and feel good about the deal you want to make.
FOUR THINGS YOU NEED TO KNOW TO GET CONFIDENCE TO DO THE DEAL
1. Look at lots of deals
You need to walk a lot of properties and look at not only everything that comes on the market but everything about the marketplace, meaning what types of deals are happening now, what kind of financing, what do the trends look like, what is being built, what type of industry is happening around the location. And what exactly about the location makes it a good deal? Close to industry and shops? Good access? Nice neighborhood, etc.?
2. Know the numbers
You must know all the financial figures involved in the deal. You have to know the obvious like price, but you must also know the breakdown per unit, know the current, past and projected vacancy and occupancy rates. In addition, you need to study and know the debt rate and bond rate.
3. You need a team
Don’t think you can do this alone or try to do this alone. You will need help from a team. You should have a debt team. This team is your bank or financial institution and one of your best team members. Then, you’ll need a due diligence team. These members will go over everything with you, the numbers, the marketplace, projections, etc. Many times, your debt partner is doing due diligence for you and themselves. If the property is large enough, which it should be if you are following the minimum of a 32-unit recommendation you’ll need a management team. This team will manage the property and take care of the day to day involved with it. Another team is your attorney. You’ll want one specific to commercial real estate to make sure everything is on the up and up and that you’re protected. And you should consider your title company a member of your team. They can help you immensely. And last but not least, you should consider the broker community a team that you want working with you. They’ll have insight into what deals are coming up, and other advice on the market and property.
4. Do your due diligence
The definition of due diligence means reasonable steps taken by a person in order to satisfy a legal requirement, especially in buying or selling something. A comprehensive appraisal of a business undertaken by a prospective buyer, especially to establish its assets and liabilities and evaluate its commercial potential. You need to verify what you’re being told is truthful and accurate. Do your inspections, double check the figures that are being presented, know the market and protect yourself.
Understanding these steps and utilizing them will help you gain the confidence you need to recognize and act on great deals. You have to invest to be invested.
Still unsure or have questions? You can join me in my investments at CardoneCapital.com or learn more about how to do it on your own or with your own partners by studying my material and content, attending Growth Con and signing up for one of my courses or programs.
*For non-accredited investors, this is a solicitation of an indication of interest. No solicitation or acceptance of money or other consideration, nor of any commitment, binding or otherwise, from any person is permitted until qualification of the offering statement.