Real estate investor Grant Cardone has recently articulated his belief that his innovative Bitcoin real estate hybrid model could outshine Real Estate Investment Trusts (REITs). In a recent post on social media platform X, Cardone presented a critical analysis of REITs, suggesting that they represent an outdated approach that fails to capitalize on current market opportunities.
Highlighting the limitations of traditional REITs, Cardone shared insights into how he plans to differentiate his business, Cardone Capital. By meticulously studying his competition, he identified gaps in their services and adopted strategies that REITs typically overlook. A key component of his strategy involves leveraging strategies that REITs cannot implement, setting him apart in the market. Cardone emphasized that while differentiation is crucial, retaining customers requires a consistent focus on delivering value.
Cardone’s hybrid model involves purchasing real estate and reinvesting a portion of the cash flow into cryptocurrency, specifically Bitcoin. This approach allows Cardone Capital to amass both substantial real estate assets and significant holdings in crypto over time. Unlike some traditional investors, Cardone opts to use debt to finance his acquisitions, thereby generating more cash flow to reinvest into Bitcoin. According to information on Cardone Capital’s website, he seeks to have cryptocurrency constitute between 15% to 50% of his fund’s total assets, exclusively focusing on Bitcoin instead of diversifying into altcoins. This strategy gives him a competitive edge, as REITs are prohibited from investing in digital currencies.
Cardone further criticized REITs for their reliance on institutional investors and their hesitance to employ social media in their marketing strategies. He noted that some investors have successfully leveraged social media platforms to cultivate larger audiences and gather investment, a tactic he frequently uses to boost engagement and demand for Cardone Capital.
He remarked, “[REITs are] very slow to change,” underscoring the risk that established companies face if they do not adapt to evolving competition and customer preferences. This sentiment echoes the cautionary tale of Eastman Kodak, which failed to transition with technological advancements, losing significant market share as smartphones became mainstream.
Cardone has consistently voiced his skepticism regarding cash, labeling it as “trash.” He advocates for holding Bitcoin instead of fiat currency, citing the U.S. dollar’s persistent loss of purchasing power due to factors such as government overspending and monetary inflation. Rather than distributing cash to investors, which may diminish in value over time, Cardone prefers to reinvest funds into Bitcoin, which he believes has strong potential for long-term growth.
For real estate investors who share Cardone’s skepticism towards fiat currency, Cardone Capital presents an appealing alternative that combines the benefits of real estate and Bitcoin. This dual-focus strategy is at the forefront of Cardone’s efforts to attract investors away from traditional REITs.
