Real Estate and the Corona Virus

I have been planning for an economic correction for some time now and been very verbal about it.

Learn more about real estate and the corona virus.

I have clearly stated on all of my social platforms the stock market was greatly due for a correction, warning friends, family, and investors at Cardone Capital to avoid investing in businesses and industries based on discretionary spending and invest only in instruments that are..

a) necessary
b) real assets
c) produce cash flow

 

The impact of the Corona Virus on the US economy will be massive and every part of society will be affected.

There will be NO protection from this epic worldwide event but there are things that you can do and industries that will come back first.

I am writing this to help you know what you can do and what I believe you should do at this time.

I hope you find it helpful and I look forward to your questions and comments below.

I have been studying money for 35 years.  The most important rules that have never failed me are the following:

1) Don’t lose money – Capital Protection. 
2) Invest for Cash Flow
3) Invest for the long term.
Let me explain each of these.

 

#1 Don’t lose money

This is Warren Buffett’s first rule and I have been adopting it in my real estate investing for years.

It is why I invest ALL my money in apartments and have avoided stocks.  By the way, Warren Buffet doesn’t invest in stocks either, he takes major positions in entire companies where he can trust the cash flow of the company and management.

Because I am not a Wall Street insider and don’t know what’s going on inside of a company, I don’t invest in stocks.  When I invest in real estate I am able to protect my capital, (don’t lose money) because the underlying asset is real property that has its value supported by rental income (cash flow).

 

Real Estate and the Corona Virus

Also I NEVER speculate or compromise when picking the location of the real estate I invest in.  This is something I never delegate to anyone else in the company to pick.

The location today is vital, but the location ten years from now is 10X more important.  We look for markets where there is positive job migration, hospitals, good schools android jobs.

 

#2 Invest for the cash flow

Years ago cash was king because you could earn 6-8% by leaving it in the banks.

Today you get paid nothing to leave your money at the banks.  I only invest in those things that can provide positive cash flow today and into the future.  When we invest in properties we look at 88% occupancy and still have a positive cash flow.

Apartments that cash flow at 6% represent a 60% return on capital in ten years assuming rents don’t go up.   (Rents have gone up since 1945, the end of WWII)

 

#3 Invest for the long term

For me the long term is ten years from now.

I want to get rich quick as much as the next guy, but I know that nobody gets WEALTHY quick. It takes time for investments to appreciate and grow.

I’m OK with not being liquid, I want to get rid of my cash as fast as possible anyways. As soon as I store up enough cash, I look to push it ALL into real estate assets that I know I will hold for the long term.

This makes me broke again and forces me to continue to hustle.

Again, these 3 things have NEVER failed me:

 

1) Don’t lose money – Capital Protection. 
2) Invest for Cash Flow
3) Invest for the long term.

 

Learn more about how you can invest with me at Cardone Capital HERE.

Now, more than ever, is the time to protect your assets. I would be losing sleep if I had money in the stock market.

If you need help with income right now, be sure to check out the 10X Rule which was made for times like these.

Be great,

Grant
Showing 3 comments
  • Yaseen
    Reply

    Hey Mr Grant.. love your energy,never loose it and thanks for sound advice with regards to real estate!!!

  • David Bouhadana
    Reply

    Hi Grant,
    I enjoy very much listening to you. I find your advice to be sound and concrete.
    I have a question. What advice can you give realtors right now? What would you be doing as a Realtor in this current situation?
    Thanks

  • Vladimir Balić
    Reply

    MR. Grant ,
    I enjoy following you work and you have been my inspiration for many of my decisions.
    As are former professional footballer i know the feeling of winning after the game played and the desire for the next one , as well as in a job that ends successfully even thought it does not seem like that some moments.
    Greeting from Croatia
    V.B.

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