Renowned real estate mogul Grant Cardone sparked controversy with his recent comments on entrepreneurship and business investments. On Feb. 5, Cardone posted a video on Instagram where he expressed strong opinions about the pitfalls of starting a new business.
“I wouldn’t go start a business today. Dumbest, most selfish thing a person could do,” Cardone said, emphasizing the challenges and unrealistic expectations new entrepreneurs face. “You can’t work for somebody else. How are you going to work for yourself? You don’t even know what you’re doing. You can’t even pay rent.”
He also mocked the idea of aspiring to be your own boss thinking you can make all the rules and have the freedom to call the shots.
“You’re going to be the slave and the master — for nothing,” he said.
Cardone, known for his candid and often polarizing advice, elaborated on what constitutes a successful business.
“A good business is a business that cash flows. A good business is a business that scales. … A good business is a business I could walk away from, it’s not dependent upon my ability, my talent, my skill or my body or my time,” he said, highlighting the importance of scalability and independence from the owner’s direct involvement. He pointed to real estate and banking as exemplary sectors where such business models thrive.
“Real estate is a great business,” he said.
For people seeking entry into real estate investment without the complexities of direct ownership, options such as purchasing shares in publicly traded real estate investment trusts (REITs) or engaging with crowdfunding platforms present viable alternatives. These methods allow investors to own a portion of physical properties — from rental units to commercial spaces — providing a pathway to generate income with significantly reduced responsibilities related to property management.
In addition to criticizing the startup culture, Cardone advised against the common entrepreneurial aspiration of starting from scratch. He suggested an alternative route to business ownership: buying an existing business.
According to Cardone, the U.S. market is saturated with small businesses, the majority of which are struggling or not profitable.
“There are 32 million. … And these small businesses in America, with 64% of them breaking even or losing money because it’s being incorrectly run,” Cardone said, advocating for the acquisition of businesses that already have customers, cash flow and operational systems in place.
His stance on “don’t start a business — buy a business” reflects a pragmatic approach to entrepreneurship, focusing on existing opportunities rather than the creation of new ventures. Cardone’s advice resonates with investors and entrepreneurs looking for sustainable business models in a competitive and often unpredictable market.
Regardless of people’s opinions about Cardone, he has demonstrated an ability to generate wealth. He was working as a car salesman when he ventured into his first investment: a single-family home in Houston. This foray into property investment taught him a lesson about the risks of relying on one tenant after he experienced a sudden halt in cash flow when his tenant left after seven months.
Learning from this experience, Cardone decided he would not rely on a single tenant for his income. Five years later, he shifted his focus and invested in a multifamily complex in San Diego. The move marked the beginning of a new strategy for Cardone, where he used the income from his first two properties to finance a third purchase.
Continuing with this strategy, Cardone gradually expanded his real estate portfolio. By 2012, his efforts had paid off significantly, with his company being recognized for conducting some of the largest private-party real estate transactions in Florida, particularly in the multifamily property category.
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This article Grant Cardone Says The ‘Dumbest, Most Selfish Thing A Person Could Do’ Is Start A New Business — You’re Going To Be The Slave And The Master — For Nothing’ — Here’s What He Says To Do Instead originally appeared on Benzinga.com
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