Private Equity Fund vs REIT

before you invest in fun rafts or rich

uncle's I wanted to share with you five

reasons five reasons that you need to

reconsider that if you really love real

estate here are five reasons you do not

want to invest with fun lies or rich

uncle's or for that fact anything that

is about a REIT okay my name is Grant

Cardone I own almost a billion dollars

with the real estate I my first deal was

on me thirty-five years ago my first

deal with seventy eight thousand dollars

but three thousand dollars down and four

thirty five years I've been learning

everything I could about real estate is

the building that I own right behind me

but this is not typically what we buy

that's an office building that my

company's housed here in Miami with

about a hundred and fifty employees

behind me another 150 employees in our

real estate around the country I've been

buying real estate for 35 years

all multifamily all affordable real

estate in great markets like Houston

tampa orlando fort lauderdale these are

affordable

beautiful beautiful big projects that

are 50 60 100 million dollars here's the

five reasons before you invest in fun

rise or rich uncle which you want to

reconsider number one when you invest in

real property

make sure it's backed by real property

that is a building that is a real

building with a real address not a piece

of stock a certificate a piece of paper

or what fun rise and

where chuckles refers to as a reap which

is a real estate that's where they

should stop investment trust once they

said investment trust they became a

piece of paper and it's not backed by

property card on capital is backed by

real property real tenants and real cash

the second reason you'd want to invest

in car don't gamble as opposed to one of

these other companies or groups is we

provide cash flow positive properties at

time of purchase I buy the property with

my money not your money I buy the

property with my money and I only buy

properties that have positive cash flow

the first month I go into it so I closed

a deal this month I expect to have cash

flow within the first 45 days of

ownership the third reason you would

want to invest at Cardone capital and

not in a fun riser or a rich uncle sorry

guys you want the tax advantages that I

get okay I pay almost no taxes last year

and made a lot a lot of money this is

why Donald Trump and Mitt Romney do not

want to disclose their taxes to you is

because they know you will not

understand the fact that they're making

millions and millions of dollars in real

estate deals and pays zero in taxes or

very very little in taxes you're not

going to understand that because you as

a an investor in real estate or I'm

sorry as an investor in a real estate

investment trust you don't get those

benefits a card on capital you get all

the benefits all the tax advantages that

I get whereby depreciation can literally

wipe out wipe out the effective net cost

to you of taxes in the first three years

the third reason I'm sorry the fourth

reason you'd want to invest a card on

capital would have by giving them so far

oh my god I forgot the four reasons they

see the reasons Cardone capital

real property - is the tax advantages

the third reason is redistribute checks

every month every month we distribute

checks as long as we have positive cash

flow from our properties I am the number

one investor in the company and I want

cash flow so when I distribute to myself

as a number one investor you as an

investor with Cardone capital get

distributions the fourth reason the

fourth reason is you actually get to see

the assets that I'm investing in and in

addition to that you get to talk to me

the owner of the company if these other

companies I don't know who you're gonna

talk to I don't know if there's a face

for a name somebody you can pick up the

phone and talk to but you can go by and

see our company and meet the people that

are actually running the company a card

on capital you can the last thing the

last reason you'd want to invest a card

on capital as opposed to a REIT or

strictly a crowdfunding company like I

mentioned earlier is because I forgot

okay the fifth reason what if I said so

far Jarrod I said tax advantages without

for real property no the owner hey what

are the five reasons run you know the

owner real property tax advantages cash

flow what else oh yeah I forgot the last

reason okay the last reason as we cut

out the middleman

okay the assets and I'm buying today

these assets right

and the last reason I have many more and

I'd love to share them with you the last

reason another reason is because we are

cutting out the middleman okay we cut

out the middleman we cut out the big

institutions like the Goldman Sachs and

the Blackstone's these major

corporations typically hold the assets

that you purchased the assets that I'm

buying today are 60 80 million a hundred

million a hundred and twenty million

sometimes two hundred million dollars

these are the finest institutional

quality multifamily assets that produce

positive cash flow in great locations

that you can person that you can

possibly buy these products are

typically kept and purchased by the

largest not wealthiest families in the

world but the wealthiest corporations on

this planet why would they invest money

in those deals because they want to

protect their capital they want positive

cash flow and they want appreciation the

last reason is this I've been doing this

for 35 years okay my average return is

well over 25% with cash flow and

appreciation that's before noon to tax

advantages over 25% year after year

after year I've never lost money in a

deal I've never lost money in 2007 2008

2009 I've never lost a property I've

never had a bankruptcy we don't over

leverage I know what I'm doing you have

access to me you have access to the

deals you get positive cash flow it's

not a REIT so get start investing real

estate okay what do you do with me here

somebody else if you can't do it on your

own find somebody like me hope you

enjoyed this

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