Grant Cardone, a self-made multimillionaire with a $4 billion net worth, has a radical perspective on real estate: he doesn’t own the roof over his head. Instead, he rents. He views homeownership as a financial prison, arguing that owning a house is a terrible choice for real estate investors.
Cardone’s perspective directly challenges the widely held belief that renting is a waste of money, as you’re essentially paying someone else’s mortgage. He counters this by highlighting the potential pitfalls of long-term mortgages: “You could 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.” His philosophy boils down to a simple question: “If it doesn’t pay you, why are you doing it?”
Cardone’s disdain for traditional ownership extends beyond homes. He predicts a future where owning anything becomes less common: “We’re moving into an environment where people are gonna own nothing. People are gonna rent clothes, they’re gonna rent furniture, they’re gonna rent cars.” While this might seem extreme, the growing popularity of leasing in various aspects of life lends credence to his prediction.
Cardone’s love for real estate lies in its potential for generating income, not in personal ownership. For him, investments are all about cash flow: “I need income. I want income every month.” He prioritizes pouring his money into income-generating properties over buying a house for himself.
He outlines his investment philosophy clearly: “You want enough passive income coming in that you can buy dumb 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 dumb [__] until they have passive income.” Cardone emphasizes the importance of financial freedom through passive income, rather than relying on earned income to fund lavish spending.
While Cardone’s philosophy is unconventional, it challenges the traditional mindset around real estate and financial success. He encourages individuals to focus on building passive income streams that can provide financial security and freedom, rather than being tied to traditional assets like homeownership. By investing in income-generating properties, he believes individuals can create wealth that works for them, allowing them to enjoy the fruits of their labor without being shackled to a mortgage or limited by earned income.
