Grant Cardone’s 10X Rule: He’s Right And I Hate Myself For It
By Chadford Whitmore VI (Follow on Twitter @PunchableFaceVI)
Everyone’s favorite sales guy turned social media pitchman turned real estate guru gets it right with his 10X Rule
Disclaimer: I have not read his book “The 10X Rule”.
If you’ve been able to make it through more than 10 minutes of a Grant Cardone interview without wanting to shove an ice pick in your ears, congratulations. You are a better person than me.
I gave up on taking Grant Cardone seriously as a real estate person after listening to him try to explain how to underwrite an apartment building and it sounded like he didn’t even know how to balance a checkbook. The criticisms of this guy go on and on and on for many reasons, but I digress.
The 10X Rule
With all his bluster, he makes a great point with his “10X Rule”. The basic premise is: Stop setting your sights too low. Think big and execute big. Specifically, he says to set your goals 10X higher than what you think you are capable and then take actions that are 10X bigger than what you think you need to do to achieve your goals.
Why Cardone Is Right
The basic premise of what he says makes sense, especially in real estate. There really isn’t a ton of extra effort/knowledge required to buy a 5 unit building versus a 50 unit apartment complex. The process to acquire is exactly the same. Same with managing a 50 unit portfolio versus a 500 unit portfolio. It’s all basically the same, just bigger numbers. [Note: Obviously, more sophisticated systems need to be put in place as you scale.]
I’m not advocating for a newbie to go out and buy a 300 unit complex as your first property. However, once you have gotten your feet wet in real estate and you think it’s a fit for you, don’t waste your time with small stuff. There’s much greater efficiencies (i.e. profits) to be had with larger properties.