Grant Cardone blasts ‘American dream’ of homeownership. Here’s what he likes instead
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A survey by LendingTree shows 94% of Americans consider homeownership part of the American dream. But real estate tycoon Grant Cardone thinks otherwise.
“No matter how much you guys complain about rent, it is still half of what it costs to live in that piece of s— house that you call the American dream,” Cardone says in a post on his YouTube channel. “A house is a terrible investment.”
The data supports his claim: Bankrate analysis reveals buying a home is 37% more expensive than renting, with renting being the cheaper option in all major U.S. metros.
Cardone’s argument? Skip homeownership, save the difference, and invest in assets with better returns.
While Cardone criticizes owning a home for personal use, he’s a staunch advocate for owning rental properties. “A rental property will always make more money than a house will,” he says. That’s because rental properties generate cash flow, offer tax advantages, and appreciate over time — making them a triple threat for investors. In the third quarter of 2024, the average gross rental yield across the U.S. is 6.1%, according to GlobalPropertyGuide.
Mogul is a real estate investment platform offering fractional ownership in blue-chip rental properties, which gives investors monthly rental income, real-time appreciation and tax benefits — without the need for a hefty down payment or 3 A.M. tenant calls.
Founded by former Goldman Sachs real estate investors, the team hand-picks the top 1% of single-family rental homes nationwide for you. Simply put, you can invest in institutional quality offerings for a fraction of the usual cost.
Each property undergoes a vetting process, requiring a minimum 12% return even in downside scenarios. Across the board, the platform features an average annual IRR of 18.8%. Their cash-on-cash yields, meanwhile, average between 10 to 12% annually. Offerings often sell out in under three hours, with investments typically ranging between $15,000 and $40,000 per property.
Every investment is secured by real assets, not dependent on the platform’s viability. Each property is held in a standalone Propco LLC, so investors own the property — not the platform. Blockchain-based fractionalization adds a layer of safety, ensuring a permanent, verifiable record of each stake.
Getting started is a quick and easy process. You can sign up for an account and then browse available properties. Once you verify your information with their team, you can invest like a mogul in just a few clicks..
Also, real estate investors are not restricted to residential properties.
Grant Cardone emphasizes the importance of investing in assets that generate consistent returns, and commercial real estate perfectly aligns with his philosophy of making smart money moves.
Commercial real estate such as data centers, malls, industrial warehouses, farmland and grocery-anchored retail centers could offer higher yields.
These properties tend to perform well, even during economic downturns, thanks to their necessity-based nature. First National Realty Partners (FNRP) deals in commercial real estate and provides accredited investors access to those assets which include buildings leased by major retailers including Walmart, Kroger, and Whole Foods.
You can engage with experts, explore available deals and easily make an allocation, all through one personalized portal.
Read more: Warren Buffett used 8 simple money rules to turn $9,800 into a stunning $150B — start using them today to get rich (and then stay rich)
Stocks have long been a reliable vehicle for building wealth. Historically, the U.S. stock market has outperformed the housing market.
From 1992 to 2024, the S&P 500 delivered annualized returns of 8.41% — a significant edge over the 6.1% annualized return for the housing market. And that’s before factoring in reinvested dividends, which can boost the S&P 500’s performance to an impressive 10.24%.
For investors looking to harness this growth, having the right tools and insights is essential. That’s where Moby comes in.
Moby is an investment research platform authored by former hedge fund analysts who distill complex market data into actionable stock picks. Over the past four years, Moby’s recommendations have outperformed the S&P 500 by an average of nearly 12%. Their easy-to-understand reports are perfect for investors who want to make informed decisions without getting lost in financial jargon.
You can become a wiser investor in just five minutes — and their expertise is supported by a 30-day money back guarantee. But knowing what to invest in is only half the battle. You also need a platform that simplifies the investment process.
Cardone isn’t shy about highlighting cryptocurrency’s potential, noting that “any cryptocurrency” would have outperformed the housing market historically.
To be fair, comparing crypto to real estate isn’t exactly straightforward. Over the past 12 years, Bitcoin has delivered a 100.68% compounded annual growth rate when measured in U.S. dollars, according to Curvo.
But crypto is notoriously volatile, and not all tokens are created equal. Failures like FTX and LUNA remind investors that risk management is crucial. If you’re considering dipping your toes into the crypto waters, Robinhood offers a straightforward way to get started on its commission-free platform.
Robinhood makes investing in cryptocurrency simple and accessible, even for beginners. With features like automatic investing, in-app guides, and the ability to buy fractional shares starting at just $1, it’s easy to diversify your portfolio without a large upfront commitment.
This article originally appeared on Moneywise.com under the title: Grant Cardone blasts ‘American dream’ of homeownership. Here’s what he likes instead
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