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A survey conducted by LendingTree shows that 94% of Americans consider homeownership to be part of the American dream. But real estate magnate Grant Cardone thinks otherwise.
“No matter how much they complain about rent, it’s still half of what it costs to live in that piece of house they call the American dream,” Cardone says in a post on his YouTube channel. “A house is a terrible investment.”
The data backs up his claim: Bank Rate analysis reveals that buying a home is 37% more expensive than renting, with renting being the cheapest option in major US metropolitan areas.
Cardone’s argument? Avoid homeownership, save the difference and invest in assets with better returns.
While Cardone is critical of owning a home for personal use, he is a strong advocate for owning rental properties. “A rental property will always make more money than a house,” he says. This is 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 in the US is 6.1%, according to GlobalPropertyGuide.
Mogul is a real estate investment platform that offers fractional ownership in prime rental properties, providing investors with monthly rental income, real-time appreciation, and tax benefits, without the need for a large down payment or 3 a.m. tenant calls.
Founded by former Goldman Sachs real estate investors, the team curates the top 1% of single-family rental homes nationwide for you. Simply put, you can invest in quality institutional offerings for a fraction of the usual cost.
Each property undergoes a vetting process, requiring a minimum 12% return even in negative scenarios. In general, the platform has an average annual IRR of 18.8%. Meanwhile, its cash-on-cash returns average between 10 and 12% annually. Offers usually sell out in less than three hours, and investments usually range between $15,000 and $40,000 per property.
Each investment is secured by real assets, regardless of the viability of the platform. Each property is held in a separate Propco LLC, so investors own the property, not the platform. Blockchain-based fractionation adds a layer of security, ensuring a permanent and verifiable record of each share.
Getting started is a quick and easy process. You can register for an account and then browse available properties. Once you verify your information with their team, you can invest like a tycoon with just a few clicks.
Furthermore, real estate investors are not limited to residential properties.
Grant Cardone emphasizes the importance of investing in assets that generate consistent returns, and commercial real estate aligns perfectly with his philosophy of making smart monetary moves.
Commercial real estate, such as data centers, shopping centers, industrial warehouses, farmland and retail centers anchored by grocery stores, could offer higher returns.
These properties tend to perform well, even during economic downturns, thanks to their need-based nature. First National Realty Partners (FNRP) deals in commercial real estate and provides accredited investors with access to those assets that include buildings leased by major retailers, including Walmart, Kroger and Whole Foods.
You can interact with experts, explore available offers, and easily place an assignment, all through a personalized portal.
Read more: Warren Buffett used 8 simple money rules to turn $9,800 into an impressive $150 billion – start using them today to get rich (and then stay rich).
Stocks have long been a reliable vehicle for building wealth. Historically, the US stock market has outperformed the housing market.
From 1992 to 2024, the S&P 500 returned annualized returns of 8.41%, a significant advantage over the real estate market’s 6.1% annualized return. And that’s without taking into account reinvested dividends, which can boost the S&P 500’s return to an impressive 10.24%.
For investors looking to take advantage of this growth, having the right tools and knowledge is essential. That’s where Moby comes in.
Moby is an investment research platform written by former hedge fund analysts who synthesize 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%. Its easy-to-understand reports are perfect for investors who want to make informed decisions without getting lost in financial jargon.
You can become a smarter investor in just five minutes and your experience is backed 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 is not shy about highlighting the potential of cryptocurrencies, noting that “any cryptocurrency” would have historically outperformed the real estate market.
To be fair, comparing cryptocurrencies to real estate isn’t exactly straightforward. Over the past 12 years, Bitcoin has generated a compound annual growth rate of 100.68% when measured in US dollars, according to Curvo.
But cryptocurrencies are 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 toe into the cryptocurrency waters, Robinhood offers an easy 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 purchase fractional shares starting at just $1, it’s easy to diversify your portfolio without a big upfront commitment.
This article originally appeared on Moneywise.com with the title: Grant Cardone Slams the ‘American Dream’ of Homeownership. This is what you like
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