After American entrepreneur Grant Cardone listed his 10,000-square-foot beach house in Florida for $42 million, he explained that he would rather own more Bitcoin (BTC) or multi-family properties than invest in one location.
The house at 605 Ocean Blvd in Golden Beach Florida has seven bedrooms, 12 bathrooms, a pool and many other amenities. Cardone paid $24 million for the house in 2021.
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“We purchased the home believing that we had a vision for it that would enhance its value for the next owner. Elena and performed a major renovation to the exterior, taking this unique beach home to the next level by the 100+ meters of private beach to be improved,” Cardone posted on X. “There are only 65 oceanfront lots in Golden Beach and a third of them are being demolished. This is just the beginning and this will be one of the most desirable communities in all of Miami and the ONLY one with ocean and private beach access.” thought this would be the perfect time to invest the proceeds in BTC or purchase more multi-family properties.”
Cardone purchased the property in 2021 to renovate and flip it. He noted that demand for housing in the area has skyrocketed. These factors combine to create the list price of $42 million. If Cardone were to sell the property for that amount, it would mean a total gain of 75% or a compound annual growth rate (CAGR) of about 20%.
BTC is up almost 100% since June 2021, and many analysts believe the upcoming halving could send the price even higher. Bitcoin has not only outperformed Cardone’s beachfront real estate, but there’s also an argument that it could continue to outperform in the future.
Multifamily properties are generally considered safer investments than single-family homes because they generate more cash flow and increase in value as the property appreciates.
Cardone already owns a significant amount of Bitcoin. He received the token as payment when it was worth around $500, but the price has risen to the point where the investment could be worth as much as $14 million.
It’s possible that Cardone will use the proceeds from the sale of the house to buy at least some Bitcoin. The real questions are how much he would buy and how much profit he could potentially make.
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This article Grant Cardone sells beachfront mansion to own more Bitcoin: smart move or big mistake? originally appeared on Benzinga.com
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