Debt Is Your Best Friend

I love debt that will produce income for me.  I’m not talking about pretending to be a baller and racking up 20K on your Amex that you can’t pay off.  There is stupid debt—and then there is good debt.  One is a path to financial slavery, the other is a way to financial freedom.  I use debt to my advantage and you can too.

I’ve single-handedly built a real-estate empire without raising external capital.  I didn’t do this as a full-time career but as a side business.  I wanted to have a stable place to park my income from my other businesses that could be a wealth preservation and creation vehicle.  Cardone Acquisitions has been involved in more than $425 million in transactions and I’m looking to grow it to not just 1, not 2, not 3, but FOUR BILLION dollars.

I’m also looking for partners who would like to invest with me.

Taking on the right kind of debt lets you keep what’s yours, you don’t need to give up company equity for cash.  Debt can help you manage cash flow.  It’s not really that complicated.  Let’s say you have a company that has an opportunity to sign a contract for $100K but you need some equipment to fulfill it that will cost you $40K you don’t have.  Debt is great for you—get a loan, pay a little interest, and make your profit.  Just do the math.  If profit will outweigh the debt with interest, why not take it on?  Measure the return on investment (ROI). With debt, you need to be certain that an investment’s ROI exceeds its after-tax interest cost.

When I was 29 I bought my first property—a single family property in Houston.  After a couple of months, the tenants left.  With no cash flow coming in, I sold and broke even.  I swore I’d never buy single family again because I don’t want my occupancy rate to go from 100% to 0%.  I didn’t buy again for five years, during which time I just accumulated cash by becoming a master salesman, hustling like crazy, and saving.  I bought a $1.9 million dollar 38-unit complex in San Diego with $350K down.

More recently, in 2012 I made the largest private party acquisition of multifamily real estate in Florida, purchasing 1016 units for $59 million, much of which was financed with debt from Fannie Mae.  Recently I’ve been looking in Houston, Texas.

Debt is my friend, and it can be your friend. 

I use debt to add income producing assets which offer great upside and throw off positive cash flow.

If you have BAD debt, or if you have no money to even get a loan, get on Cardone University today.  It will be more valuable to you than an education at Harvard, Yale, or Cornell.  Go into debt if you have to—remember that any debt that has a positive ROI is good debt.  Your ROI on Cardone University will far exceed your wildest expectations.  Remember you only have a little bit of debt and a whole lot of riches to gain.

Also, my exclusive Sales Boot Camp is coming up July 21-23. Victor Antonio will be there and we’ve got some great content to help jump start your sales no matter what industry you’re in.

Be great


Showing 0 comments
  • John

    Great advice man I am currently broke with no income I am waiting for a settlement from a work related injury and would like to put it to use and multiply it

  • brian

    love what you have to offer. one day soon would love to work for you. I have 3 books so far. listen to you all day.

  • Ninsiima Derrick

    So inspirational
    am not an economist but with your words am learning business mathematics

  • Marta

    Thank you for valuable information GC as always. Would love to invest my savings in your real estate deal however I m not an accredited investor yet (I make 75K a year). Wish you could keep this gate open for more of your fans.

  • Rav Barring.

    I used the skills I learned from GCU to put 6 figures in my checking account.
    From ($136,000) to positive. In less than a year!!! GCU is a life saver.

  • Mason Hemphill

    After reading 4 of your books and investing in Cardone University how could I not come to Bootcamp in July. After sales for 26 years I feel like a youth again in a learning stage. Thanks for reinvigorating my desire to do better and achieve more. Great content and I’m looking forward to Bootcamp!

Leave a Comment

Start typing and press Enter to search

© 2001 - 2018 Grant Cardone Training Technologies.