Grant Cardone’s approach to real estate is anything but conventional.
With a staggering $4 billion in assets, you might expect him to own the home he lives in.
Instead, Cardone rents. For him, homeownership isn’t the financial goldmine many believe it to be; rather, it’s akin to being trapped in a financial cage.
In a 2019 interview with DJ Vlad, Cardone explained his philosophy with a blunt metaphor: “I treat houses like hospitals – you get in, you get out.”
To him, buying a house as a long-term investment is a misguided notion.
Cardone dismisses the traditional view that renting equates to paying someone else’s mortgage.
He argues, “You could live in a house for 15 years with a 30-year mortgage and still owe what the house was worth when you bought it—or worse.”
For Cardone, if an asset doesn’t generate income, it’s not worth investing in.
His skepticism extends beyond homeownership. Cardone envisions a future where owning possessions becomes obsolete.
“We’re moving into an environment where people are gonna own nothing,” he predicts, noting the growing trend of leasing everything from clothes to cars.
Cardone’s real estate strategy is focused on generating cash flow, not on acquiring personal property.
He emphasizes the importance of having passive income: “I need income. I want income every month.”
He invests in real estate that produces regular returns rather than tying up his capital in a personal home.
Cardone also hints at an intriguing financial maneuver: renting his home might provide him with a better interest rate on his loan, although he doesn’t delve into the specifics.
He often shares his unconventional strategies, including purchasing luxury items like helicopters for tax benefits, showing his creative approach to wealth management.
While many see homeownership as the ultimate sign of success, Cardone’s perspective challenges that norm.
He believes the true measure of financial success lies not in what you own, but in how your investments work for you.
For him, investing in income-generating assets is far superior to purchasing a personal residence.
Opinion: As Grant Cardone’s approach suggests, real estate investment is more about generating income than owning property.
Before committing to a home purchase, consider whether it aligns with your financial goals or if there are better ways to put your money to work.