With mortgage rates hovering around 6% and home prices that have risen roughly 50% in many markets since 2020, many would-be homebuyers feel stuck on the sidelines.
Real estate investor Grant Cardone believes that’s precisely the problem — and that the biggest obstacle isn’t the market itself, but how buyers are thinking about it.
In a recent interview with Business Insider (1), Cardone outlined three common mistakes he says are keeping buyers from making progress in today’s housing market.
While his perspective comes from a high-profile investor who has purchased billions of dollars’ worth of real estate, his advice pushes back against conventional house-hunting wisdom and suggests that rigid expectations may be more limiting than market conditions alone.
According to Realtor.com’s 2026 housing forecast, mortgage rates are expected to hover near 6.3% this year (2). Yet Cardone argues that many buyers have adopted a defeatist mindset that prevents them from actively pursuing opportunities.
“If you go and believe in that, then you’ll never find it,” he told Business Insider. “You’re going with the wrong attitude. So you haven’t been priced out” (1).
This perspective cuts against well-documented affordability concerns. According to Nadia Evangelou, senior economist at the National Association of Realtors (NAR), “For the last few years, we have been in one of the toughest affordability environments in modern housing history.”
Mortgage rates jumped from around 3% in 2021 to above 7% in 2023, pushing the typical monthly payment up by more than $1,000 a month compared to pre-pandemic levels (3).
Likewise, the Federal Reserve Bank of Atlanta’s Home Ownership Affordability Monitor (HOAM) shows that affordability nationwide remains significantly constrained relative to historical norms (4).
But Cardone’s point is primarily psychological rather than mathematical. He’s suggesting that buyers who accept the “priced out” narrative may stop searching for creative or unconventional solutions that could still exist.
Whether this mindset shift is helpful depends heavily on individual financial circumstances, a nuance that Cardone’s broad framing does not fully address.
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Cardone also believes that focusing solely on the lowest-priced home is a misguided strategy. Instead, he argues that buyers should prioritize properties where flexible or creative financing options might be available.
He specifically recommends targeting two types of homes: those with no remaining mortgage and those with low-interest, existing mortgages. In both cases, sellers may be open to non-traditional arrangements such as seller financing, assumable mortgages, or lease-to-own structures.
This approach has merit in limited but realistic situations. According to Redfin, only about 2.5% of U.S. homes changed hands over the first two-thirds of 2024, marking the lowest turnover rate in at least 30 years (5).
This was partly because many homeowners were locked into mortgage rates below 5% and were reluctant to sell. As a result, identifying motivated sellers willing to offer creative terms may give buyers additional negotiating leverage.
Separately, research from the National Association of Realtors (NAR) suggests that a 1% decline in mortgage rates could add roughly 5.5 million households to the pool of potential buyers (6), underscoring how sensitive affordability is to interest rates.
However, this strategy comes with important caveats. Creative financing arrangements can be legally and structurally complex, may require larger down payments and are not widely available in competitive markets.
For first-time buyers without significant cash reserves or experience negotiating alternative purchase structures, this advice may be difficult to implement successfully.
Cardone’s final tip echoes an enduring real estate principle: location matters more than almost anything else. He believes buying the worst house in a top-tier location beats buying the best house in a mediocre area.
“It matters 10x more,” he told Business Insider. “I bought maybe $6 billion worth of real estate in my career, and anytime I compromise the location, it will cost me later” (1).
Cardone advises buyers to prioritize areas with higher discretionary income and the presence of established national retail chains — such as Whole Foods, Starbucks and Chipotle — which he views as signals of economically strong neighborhoods.
This advice aligns with longstanding real estate research and practice. Properties in desirable locations tend to appreciate more consistently and hold value better during market downturns than properties in less sought-after areas. Location factors such as school quality, walkability and proximity to major employment centers consistently influence long-term home value appreciation.
However, prime locations come at a premium. For buyers already struggling with affordability, prioritizing top-tier neighborhoods may mean accepting a much smaller, older or more outdated property than originally planned.
This trade-off works well for investors focused on appreciation, but families prioritizing livability, space, and lifestyle needs may find the advice more difficult to apply.
Cardone’s perspective offers interesting insights, but it’s important to recognize that his advice comes from an investor who has built wealth through real estate — not necessarily someone focused on the challenges of first-time buyers stretching to afford their first home.
According to NAR, “When viewed through the lens of income and purchasing power, it becomes clear that access to affordable homes remains out of reach for many buyers” (7). For many households, the challenge isn’t mindset — it’s math.
Before adopting any house-hunting strategy, buyers should:
Get pre-approved to understand what they can actually afford
Consider total monthly costs, not just the purchase price
Factor in maintenance, property taxes, insurance and potential HOA fees
Understand that “creative financing” often carries higher risk
Evaluate whether they’re financially prepared for homeownership beyond just the down payment
Flexibility can certainly help in today’s market. But the most important factor isn’t following any single expert’s rules — it’s making sure the decision aligns with your personal finances, risk tolerance and long-term goals.
Cardone’s advice may open opportunities for some buyers, but it isn’t a “one-size-fits-all” formula.
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Business Insider (1); Realtor.com (2); National Association of Realtors (NAR) (3); Federal Reserve Bank of Atlanta’s Home Ownership Affordability Monitor (HOAM) (4); Redfin (5); National Association of Realtors (NAR) (6); (7).
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
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