Real estate mogul Grant Cardone is known for his investments in residential real estate, but he’s quick to point out that buying a home to live in is not a smart financial move. In a recent interview with podcaster Sean Mike Kelly, Cardone labeled buying a home as “a terrible investment.”
Cardone’s reasoning behind this statement is straightforward – a home doesn’t generate cash flow, doesn’t offer significant tax write-offs, lacks leverage, and comes with ongoing costs even after the mortgage is paid off. He emphasizes that even when the loan is fully paid, homeowners still have to contend with property taxes, insurance premiums, and maintenance expenses. These hidden costs can quickly add up, as evidenced by a 2024 Bankrate study that found the annual hidden expenses of owning a single-family home in the U.S. to total $18,118.
The emotional attachment people have to their homes often blinds them to the financial downsides, according to Cardone. He emphasizes that homeowners are essentially partners with the state, not full owners of their homes. His solution? “Never buy a house, rent where you live.”
However, Cardone isn’t against real estate investing altogether. He recommends renting a home to live in and redirecting the money that would have gone into buying a house towards investments that generate cash flow. He suggests investing in real estate assets like retail properties, storage units, apartment buildings, or even land for farming or ranching.
One option to access real estate investments without the hassle of being a landlord is through platforms like Arrived, which allow investors to purchase shares of vacation homes or rental properties. This provides a passive income stream without the responsibilities of property management.
Cardone also highlights retail real estate as a potential opportunity for investors, emphasizing the importance of selectivity in choosing properties. Essential real estate, such as grocery stores and pharmacies, tends to offer more resilience in the face of e-commerce disruption. Investors can access this space through platforms like First National Realty Partners (FNRP), which allows accredited investors to own a share of grocery-anchored commercial properties leased by national brands like Whole Foods, Kroger, and Walmart.
In conclusion, Cardone’s advice to prospective homeowners is clear – renting where you live and investing in real estate assets that generate cash flow can be a more financially sound strategy than buying a home for personal use. By focusing on income-generating properties and essential real estate, investors can build wealth without the burdens of traditional homeownership. Thanks to Triple Net (NNN) leases, accredited investors have the opportunity to invest in properties without worrying about tenant costs cutting into their potential returns. These leases allow investors to receive a steady stream of income while the tenants cover expenses such as property taxes, insurance, and maintenance.
To get started with investing in NNN properties, all you need to do is answer a few questions, including how much you would like to invest, to start browsing the full list of available properties. This seamless process makes it easy for investors to explore different opportunities and find the right fit for their investment goals.
In addition to NNN properties, there are other types of real estate investments that accredited investors can consider. Grant Cardone, a prominent real estate investor, suggests looking into apartments as they offer consistent cash flow. Unlike single-family homes, apartment buildings house multiple tenants, which helps spread out risk. Even if one unit sits vacant, the others can still generate income, providing stability in varying market conditions.
Moreover, apartments tend to be resilient during economic shifts as people always need a place to live. With rising home prices making ownership less accessible for many, the demand for rental properties continues to increase, driving occupancy rates up. Real estate investment platforms and Real Estate Investment Trusts (REITs) have made it easier than ever for everyday investors to access the apartment market and diversify their portfolios.
Another type of real estate investment that Cardone recommends is agricultural land. While not as commonly discussed as retail or apartments, farmland can be a compelling long-term investment due to the consistent demand for food. U.S. farmland values have steadily climbed over the past few decades, driven by increasing demand and limited supply of arable land. Investors can participate in the sector through publicly traded REITs like Gladstone Land and Farmland Partners or by using platforms like FarmTogether, which allow investors to buy stakes in U.S. farmland and benefit from both leasing fees and crop sales.
Overall, investing in real estate can provide a stable source of income and long-term growth potential. By diversifying your portfolio with NNN properties, apartments, and agricultural land, accredited investors can build a robust investment strategy that aligns with their financial goals. With the right tools and platforms, investing in real estate has never been more accessible for investors looking to grow their wealth. The world has witnessed a dramatic increase in the number of cyber-attacks in recent years. From data breaches to ransomware attacks, cybercriminals are becoming more sophisticated in their techniques, posing a serious threat to individuals, businesses, and governments alike.
One of the most alarming trends in cybercrime is the rise of ransomware attacks. Ransomware is a type of malware that encrypts a victim’s files and demands payment in exchange for the decryption key. These attacks can have devastating consequences, locking individuals out of their personal data or crippling businesses by encrypting critical files.
In 2020, the world saw a surge in ransomware attacks, with several high-profile incidents making headlines. The attack on Colonial Pipeline, one of the largest fuel pipelines in the United States, caused widespread panic and led to fuel shortages in several states. The company ultimately paid a ransom of $4.4 million to regain access to their systems.
Another major ransomware attack targeted JBS, one of the world’s largest meat processors. The attack forced the company to shut down its operations in North America and Australia, leading to disruptions in the global food supply chain. JBS paid a ransom of $11 million to the cybercriminals responsible for the attack.
These incidents highlight the serious impact that ransomware attacks can have on critical infrastructure and essential services. They also underscore the need for improved cybersecurity measures to protect against such threats.
In response to the growing threat of cyber-attacks, governments and businesses are ramping up their cybersecurity efforts. The U.S. government has issued advisories warning about the dangers of ransomware and urging organizations to take proactive steps to protect their systems. Companies are investing in cybersecurity training for employees, implementing multi-factor authentication, and conducting regular security audits to identify and address vulnerabilities.
However, despite these efforts, cybercriminals continue to find ways to exploit weaknesses in systems and carry out attacks. The proliferation of ransomware-as-a-service (RaaS) platforms has made it easier for even amateur hackers to launch ransomware attacks, further increasing the threat landscape.
As the world becomes increasingly interconnected and reliant on digital technologies, the risk of cyber-attacks will only continue to grow. It is crucial for individuals, businesses, and governments to prioritize cybersecurity and take proactive steps to protect against ransomware and other types of cyber threats. Only by working together and staying vigilant can we hope to mitigate the risks posed by cybercriminals and safeguard our digital infrastructure.
