With mortgage rates hovering around 6% and home prices rising roughly 50% in many markets since 2020, many potential homebuyers feel stuck on the sidelines.
Real estate investor Grant Cardone believes that is precisely the problem, and that the biggest obstacle is not the market itself, but how buyers think about it.
In a recent interview with Business Insider (1), Cardone outlined three common mistakes that he believes prevent buyers from progressing in today’s real estate market.
While his perspective comes from a high-profile investor who has purchased billions of dollars’ worth of real estate, his advice flies in the face of conventional house-hunting wisdom and suggests that rigid expectations can be more limiting than market conditions alone.
According to Realtor.com’s 2026 housing forecast, mortgage rates are expected to remain near 6.3% this year (2). However, Cardone maintains that many buyers have adopted a defeatist mentality that prevents them from actively seeking opportunities.
“If you go and believe in it, you’ll never find it,” he told Business Insider. “You’re going in with the wrong attitude. Therefore, you haven’t been ruled out” (1).
This perspective runs counter to well-documented concerns about affordability. According to Nadia Evangelou, chief economist at the National Association of Realtors (NAR), “Over the past few years, we have been in one of the most difficult affordability environments in the history of modern housing.”
Mortgage rates increased from around 3% in 2021 to more than 7% in 2023, raising the typical monthly payment by more than $1,000 a month compared to pre-pandemic levels (3).
Additionally, the Federal Reserve Bank of Atlanta’s Homeownership Affordability Monitor (HOAM) shows that national affordability remains significantly limited relative to historical norms (4).
But Cardone’s point is primarily psychological rather than mathematical. It suggests that buyers who buy into the “overpriced” narrative may stop looking for creative or unconventional solutions that might still exist.
Whether this mindset shift is helpful depends largely on individual financial circumstances, a nuance that Cardone’s broad framework does not fully address.
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Cardone also believes that focusing solely on lower-priced housing is the wrong strategy. Instead, he maintains that buyers should prioritize properties where flexible or creative financing options may be available.
It specifically recommends focusing on two types of homes: those with no remaining mortgage and those with existing low-interest mortgages. In both cases, sellers may be open to non-traditional arrangements, such as seller financing, assumable mortgages, or lease-purchase structures.
This approach has merit in limited but realistic situations. According to Redfin, only about 2.5% of American households changed hands during 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 sellers who are motivated and willing to offer creative terms can give buyers an additional negotiating advantage.
Furthermore, research from the National Association of Realtors (NAR) suggests that a 1% drop in mortgage rates could add approximately 5.5 million households to the pool of potential buyers (6), underscoring how sensitive affordability is to interest rates.
However, this strategy carries important caveats. Creative financing arrangements can be legally and structurally complex, may require larger upfront 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 can be difficult to implement successfully.
Cardone’s latest advice echoes an enduring real estate principle: Location matters more than almost anything else. He believes that buying the worst house in a prime location is better than buying the best house in a mediocre area.
“It matters ten times more,” he told Business Insider. “I bought about $6 billion worth of real estate over the course of my career, and every time I compromise on 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 sees as signs of economically strong neighborhoods.
This advice aligns with long-standing real estate research and practice. Properties in desirable locations tend to appreciate more consistently and hold their 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 with a hefty price tag. For buyers already struggling with affordability, prioritizing prime neighborhoods may mean accepting a much smaller, older or more dated property than originally planned.
This trade-off works well for appreciation-focused investors, but families who prioritize 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 created wealth through real estate, not necessarily someone focused on the challenges of first-time buyers struggling to afford their first home.
According to the NAR, “when viewed through the lens of income and purchasing power, it is clear that access to affordable housing remains out of reach for many homebuyers” (7). For many households, the challenge is not the mindset, but the math.
Before adopting any home search strategy, buyers should:
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Get pre-approved to understand what you can really afford
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Consider total monthly costs, not just the purchase price.
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Consider maintenance, property taxes, insurance, and potential HOA fees
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Understand that “creative financing” often carries greater risk.
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Assess whether they are financially prepared to own a home beyond the down payment.
Flexibility can certainly help in today’s market. But the most important factor is not to follow the rules of a single expert, but to make sure the decision aligns with your personal finances, your risk tolerance, and your long-term goals.
Cardone’s advice may open up opportunities for some buyers, but it’s not a one-size-fits-all formula.
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Business Insider Information (1); real estate agent.com (2); National Association of Realtors (NAR) (3); Federal Reserve Bank of Atlanta Homeownership 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.
