Opinion on These Tips by Grant Cardone

[Ryan Dao]

So I've been watching Grant Cardone TV for a while and I know that he's a little smug and cocky and likes to talk about his money (but who wouldn't be if they were rich).

I watched a video about him talking about how to start investing in Real Estate and he gave the 3 following tips:

1) Never rely on one thing of anything

Don't buy single-family homes because if that one source of income runs out, for example, your tenant moves out, you're left with a liability; your source of income is now an upkeep where you're losing money

2) Don’t buy based on your budget 

I may be interpreting this wrong but you shouldn't buy a small house because you have a small budget. You should go big. if you have $30k, don't buy a house based on that.

3) Don’t buy less than 16 units

Don't buy any property where there are less than 16 units. You want to have a lot of sources of income.

The first one I agree with but I'm not sure if I was misinterpreting his tips or something because the second one and third one doesn't seem practical to me. If you only have $40,000, you shouldn't try to buy a $3M apartment or something. Same thing goes for the third tip. Of course its better to have multiple sources of income, but you need a lot of money to purchase a property like that. 

What are your thoughts on these?

Btw the link to the video with the tips is here

[Jordan Decuir]

Grant Cardone's point about numbers two and three may be to partner up with other investors to go bigger, 10X so to speak. I think the 16-unit idea is that 16 units can justify some form of property management so that the investor doesn't have to spend his/her time doing the property management