Grant Cardone’s take on real estate isn’t just unruly—it’s downright rebellious. The man has a net worth of $4 billion, but he doesn’t own the roof over his head. Instead, he rents. For him, buying a home is like buying a ticket to financial prison.
In a 2019 interview with DJ Vlad, Cardone explained why home ownership is a terrible choice for real estate investors. “I treat houses like hospitals: You get in, you get out,” he says with a shrug, dismissing the idea that a home is a stable, long-term investment.
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Cardone’s perspective turns conventional wisdom on its head. We’ve all heard the argument, “If you rent, you’re just paying someone else’s mortgage!” Cardone doesn’t buy it. He explains, “You can live in a house for 15 years with a 30-year mortgage and still owe what the house was worth when you bought it—or worse.” To him, it’s simple math: “If it’s not paying you, why are you doing it?”
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His disdain for home ownership doesn’t stop there. Cardone goes a step further, suggesting that owning anything could soon be a thing of the past. “We’re going to get to an environment where people don’t own anything. People are going to rent clothes, rent furniture, rent cars,” he says. And he’s not wrong—leasing is already more popular than owning in many areas of life.
This is where Cardone’s love of real estate as an investment comes in. But it’s not about owning a home; it’s about generating income. For him, investing is about one thing: cash flow. “I need income. I want income every month,” Cardone says firmly. That’s why he’s putting his money into income-generating real estate, not buying a home for himself.
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He explains his philosophy clearly: “You want enough passive income coming in that you can buy stupid stuff. It’s not just about wealth; it’s about wealth that works for you. Earned income? That’s for suckers. People shouldn’t buy stupid stuff. [__] “Until they have passive income,” he advises, noting that relying on earned income to fund extravagance is a one-way ticket to financial trouble.
Cardone does explain that he rents his house because he gets a better interest rate on the loan, indicating that Cardone Capital likely owns the house and he pays “rent,” though he doesn’t elaborate on how it works or what he pays. In other videos, Cardone openly talks about going broke twice a year to buy a helicopter as a tax deduction and investment.
In a world where most people see owning a home as the pinnacle of success, Grant Cardone likes to play by his own rules. For him, the key is not what you own, but what you do with your money. If it doesn’t pay you back, he’s not interested.
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This article ‘I Treat Houses Like Hospitals. You Come In, You Come Out’: Grant Cardone Says He Still Rents His Home Despite Owning $4 Billion in Real Estate Originally appeared on Benzinga.com
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