Moneywise and Yahoo Finance LLC may earn commissions or income through links in the content below.
Homeownership has long been a cornerstone of the American dream. It symbolizes independence, financial security and prosperity, but is it a dream worth pursuing?
Real estate investment guru Grant Cardone appears to be conflicted. On his YouTube channel, Cardone said: “The average mortgage today is twice the rent in the United States (1).”
He went on to say that you would have to be “crazy” to buy a house.
“Buying a house is without a doubt the worst investment people can make, but also the most common,” he wrote on Instagram back in 2024 (2).
More recently, however, Cardone has spoken out in favor of President Donald Trump’s proposal to legalize 50-year mortgages.
In a post on Truth Social in November (3), Trump posted a photo of himself with the text “50-year mortgage” next to a photo of President Franklin D. Roosevelt and the text “30-year mortgage,” under the title “Great American Presidents,” equating the implementation of the 30-year mortgage in the 1930s under Roosevelt’s New Deal with the creation of a 50-year mortgage during his presidency.
Cardone apparently approved the 50-year mortgage proposal on his X account and wrote, “Great real estate opportunity UPCOMING (4).”
So, is buying a house to live in still a good financial decision?
“A $576,000 house will have to sell for $1.2 million in 10 years,” Cardone said on Instagram. “You’re not going to sell it for that, to break even.”
He described the exercise as “dead money,” a term used for an investment that has shown little increase in value or is locked in for a long time with little return.
Cardone, on the other hand, typically prefers real estate investments that are not tied to his own living situation.
If you’re interested in getting into the real estate game but agree that renting out the space you live in is the smartest financial move, crowdfunding platforms (a process championed by Cardone) allow ordinary investors to pool their money to purchase properties (or a portion of the property) as a group.
Here’s what you need to know if you’re looking for an opportunity to invest in property without owning your own home.
Read more: Warren Buffett used 8 solid, repeatable money rules to turn $9,800 into a $150 billion fortune. Start using them today to get rich (and stay rich)
Many Americans who rent their homes feel they cannot afford the down payment to purchase their own property, much less a rental investment property. In fact, a CNN survey found that 86% of American renters would like to buy a home, but can’t afford it (5).
This can make many feel like they are missing out on a vital investment diversification strategy, but the crowdfunding platforms Cardone champions offer a way around this, even for those without a massive down payment available.
If you’re not ready to take the plunge into home ownership (financially or otherwise), there are platforms like Arrived that allow you to buy shares in rental properties, earn dividends, and skip the responsibilities of property management.
Backed by world-class investors like Jeff Bezos, Arrived’s easy-to-use platform offers SEC-qualified investments like rental homes and vacation rentals for as little as $100. Its flexible investment options allow both accredited and non-accredited investors to easily benefit from this inflation hedging asset class. Start by searching for vetted properties, then simply select a property and choose the number of shares you want to purchase.
Another option to consider is Mogul, a real estate investment platform that offers fractional ownership in prime rental properties. Mogul offers high net worth investors monthly rental income, real-time appreciation and tax benefits, minus late-night calls from tenants.
Founded by former Goldman Sachs real estate investors, the team curates the top 1% of single-family rental homes nationwide for you. Simply put, Mogul allows you to 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 negative scenarios. Offers usually sell out in less than three hours, and investments usually range between $15,000 and $40,000 per property.
To get started, simply register for an account and browse available properties. Once you verify your information with their team, you’ll be ready to invest like a tycoon.
Investing in real estate based on need is another way to grow your money over time.
Commercial real estate has long been touted as a smart investment to add stability to your portfolio, outperforming the S&P 500 over a 25-year period.
First National Realty Partners (FNRP) provides accredited investors access to institutional quality commercial real estate investments. By requiring a minimum investment of $50,000, FNRP allows you to benefit from investing in commercial properties without the hassle of ownership.
As a private equity firm, FNRP acts as a transaction leader and offers a unique service to investors, providing them with expertise and doing the time-consuming legwork for you. The team has developed relationships with the nation’s largest essential brands, including Kroger, Walmart and Whole Foods, providing insight into the best properties both on and off the market.
Interact with experts, explore available offers, and easily place an assignment, all on FNRP’s secure platform.
We rely only on verified sources and credible third-party reports. For more information, see our editorial guidelines and ethics.
