Grant Cardone: Combining real estate and Bitcoin creates an unparalleled financial asset, why unit accounting is important to income, and how Bitcoin improves cash flow.

Key Takeaways

• Combining wealth with Bitcoin creates a unique financial asset that competitors are scrambling to replicate.
• Grant Cardone plans to sell his Bitcoin holdings when it reaches a million dollars.
• The number of units in real estate is important in determining the success of a business.
• Rent increases have had a significant impact on income, especially for large number of units.
• Cardone integrates Bitcoin into real estate investing by placing funds based on real estate costs.
• He sees market declines as opportunities to earn more Bitcoin.
• Combining wealth with Bitcoin can improve cash flow and asset value.
• Most of the new investors in Cardone businesses are more interested in real estate than Bitcoin.
• Bitcoin’s utility gives it an edge over treasury companies.
• Scaling up in the crypto space is more challenging than most investors expect.
• Real estate offers a stable investment alternative to the volatility of Bitcoin.
• Current US laws are unfair to unaccredited investors, limiting their access to better opportunities.
• Tracking transactions for tax purposes in decentralized markets is complex.
• Government restrictions on investment should be reduced to allow more personal financial freedom.
• Raising funds from non-accredited investors is more challenging than that from accredited ones.

Guest introduction

Grant Cardone is the CEO of Cardone Capital, a private equity firm that manages a multifamily portfolio valued at over $5 billion, and the founder of Cardone Training Technologies, which has trained more than 850,000 people and businesses worldwide. He has raised over $1.88 billion in equity through social media crowdfunding and is a New York Times bestselling author whose 10X Rule founded the 10X Global Movement. With a net worth of approximately $600 million built through real estate investing, sales training, and entrepreneurship, Cardone brings deep experience in turning real estate into alternative investments.

A unique financial vehicle for real estate and Bitcoin

• “The combination of real estate and Bitcoin creates a unique financial vehicle that competitors cannot replicate.” – Grant Cardone
• Cardone’s strategy involves using Bitcoin as a differentiator in the real estate market.
• “Real estate and bitcoin together will be the revolution in biological finance esto esto dude.” – Grant Cardone
• This approach positions Cardone’s investments as innovative and competitive.
• Real estate and Bitcoin together offer a new asset class that traditional investors cannot easily emulate.
• Cardone’s hybrid model uses the power of both real estate and Bitcoin.
• The integration of Bitcoin into real estate investments provides a hedge against market volatility.
• Cardone’s approach is designed to capture value from both the real estate stability and growth potential of Bitcoin.

Importance of unit count in real estate

• “The most important number in business is the number of real estate units.” – Grant Cardone
• The unit count is directly related to the income from the property investment.
• Increasing the rent even by a small amount can lead to a significant income gain.
• “Every time the rent goes up by $25 I make $80,000,000 for sure if it goes up by $250 I make $800,000,000.” – Grant Cardone
• This policy emphasizes the growth of real estate investment.
• Cardone emphasizes the importance of increasing unit value to increase revenue.
• The strategy focuses on finding properties that can withstand rising rents.
• Real estate investors should prioritize unit expansion to improve cash flow.

Integrating Bitcoin into real estate investing

• Cardone explains his formula for integrating Bitcoin into real estate investing.
• “My formula is whatever the cost of selling real estate is less than what I paid for my share of bitcoin.” – Grant Cardone
• This strategy allows for strategic allocation of Bitcoin based on real estate costs.
• Cardone sees market declines as opportunities to earn more Bitcoin.
• “I want more … the number doesn’t sound right but I like it.” – Grant Cardone
• His approach reflects a contrarian investment strategy, viewing dips as buying opportunities.
• This combination provides a diversified investment portfolio, balancing risk and reward.
• Cardone’s strategy is designed to take advantage of both the stability of real estate and the growth of Bitcoin.

Improving the value and flow of money with Bitcoin

• Combining real estate investments with Bitcoin can improve value and cash flow.
• “I’m trying to compound the theft… to convert the discount to bitcoin I end up with something you probably know about parabolic.” – Grant Cardone
• This strategy takes advantage of Bitcoin’s potential for exponential growth.
• Most new investors are focused on real estate, not Bitcoin enthusiasts.
• “None of them at this conference … are real estate investors who want cash flow and are willing to take a note of hope.” – Grant Cardone
• This approach appeals to traditional investors who are looking for strong returns with positive results.
• Cardone’s strategy places real estate as a stable base with Bitcoin as a catalyst for growth.
• This model offers a unique investment opportunity that combines stability and high potential returns.

Bitcoin’s competitive edge over real estate companies

• Bitcoin cannot be beaten by unhelpful treasury companies.
• “You can’t beat bitcoin with bitcoin… you need to be able to take bitcoin where you are when you have a challenge because the world is already challenging its use.” – Grant Cardone
• Cardone emphasizes the importance of help in maintaining Bitcoin’s competitive edge.
• Investors often underestimate the difficulty of scaling in the crypto space.
• “I think people just … underestimated how hard it is to scale and underestimated that you know the noise goes down.” – Grant Cardone
• This insight highlights the challenges of growth in the crypto industry.
• Real estate provides a stable investment compared to the volatility of Bitcoin.
• “You don’t have a 40% profit in real estate… a little bit over a very boring long time.” – Grant Cardone

An evolving vision of treasury companies

• The term ‘treasury company’ will be misinterpreted in the future.
• “I said no I don’t want to be called a treasury company… I know there will be a day when the word treasury company will be like a four letter word yes as you know as std.” – Grant Cardone
• Cardone predicts a change in opinion, viewing financial companies as a risk.
• The value of the property is determined by the rental income and the location.
• “The value of that property is the people who pay me the rent and the location of that property in the surrounding area.” – Grant Cardone
• This understanding emphasizes the importance of cash flow and location in real estate valuation.
• Cardone’s theory challenges traditional views on asset valuation.
• The focus is on sustainable income rather than speculative gains.

Impact of US investment laws on unaccredited investors

• Current US laws are not good for unaccredited investors who need access to better investment opportunities.
• “I can only tell you that the laws in this country are bad for the unlicensed investor… 98% of America is unlicensed who needs the best investment.” – Grant Cardone
• This insight highlights issues of accessibility and equity in the financial system.
• Tracking transactions for tax purposes in a geographically fragmented market is a major challenge.
• “You will have one token, let’s say if we can get to $1 tokens, we can sell five times in one day, how can I keep up with that.” – Grant Cardone
• The difficulty of compliance in a rapidly changing market is a major problem.
• These challenges underscore the need for regulatory clarity and innovation.
• Cardone promotes inclusive investment opportunities for all investors.

Advocating for personal financial freedom

• The government should allow people to invest their money freely without restrictions.
• “I wish they would get out of the way … let me invest if I want to invest the last thousand dollars with you I should be able to do it.” – Grant Cardone
• Cardone expresses a desire to reduce government intervention in private investment.
• The biggest problem in the country is that people do not work hard to earn money.
• “The biggest problem in this country is that people cheat themselves because they don’t work hard to get enough money to get whatever they can get.” – Grant Cardone
• This perspective emphasizes individual responsibility for systemic issues.
• Raising money from unaccredited investors is a huge challenge.
• “The fastest way to get money is from approved people with big checks … unauthorized money doesn’t come in.” – Grant Cardone

The future of real estate and Bitcoin as a financial asset

• The combination of real estate and Bitcoin will create a new financial asset over time.
• “What I’m playing with the real estate bitcoin hybrid is that I’m going to create… a new financial asset over time… real estate and bitcoin together will be a small vehicle for biological change.” – Grant Cardone
• This insight presents a vision of the future of financial assets by combining two markets.
• Large real estate investment trusts (REITs) cannot replicate this hybrid model.
• “My competing reits would never do this … this is my perfect way they would never do this.” – Grant Cardone
• Cardone identifies a strategic advantage in his approach, creating a competitive moat.
• Bitcoin’s recent decline provides a window to build a hybrid model without competition.
• “I think I’m going to have at least two or three years to build this… I was like, I’m going to go and play cardone with the integrated bitcoin real estate thing… and then they saw this thing fall apart.” – Grant Cardone

Bitcoin price trajectory predictions

• Bitcoin could reach $10,000 in two to three years.
• “I think I can do that in two or three years 10,000 bitcoins in two years in two or two or three years.” – Grant Cardone
• This forecast is based on Cardone’s analysis of market trends.
• Real estate agents usually don’t make as much money as it appears on paper.
• “Real estate agents don’t make that much money and I know it looks good on paper.” – Grant Cardone
• This statement challenges the conventional wisdom of making a profit in real estate trading.
• Selling Bitcoin at a high price allows for a large profit without starting over with real estate.
• “If that bitcoin 2,000 bitcoin reaches a million dollars tomorrow make sure I will sell that bitcoin.” – Grant Cardone