Grant Cardone: Combining real estate with Bitcoin creates an unmatched financial asset, why unit count is crucial for revenue, and how Bitcoin enhances cash flow | The Wolf Of All Streets

Key Takeaways

• Combining real estate with Bitcoin creates a distinct financial asset that competitors struggle to replicate.
• Grant Cardone plans to sell his Bitcoin holdings if it reaches a million dollars.
• The number of units in real estate is crucial for determining business success.
• Rent increases significantly impact revenue, especially with a large number of units.
• Cardone integrates Bitcoin into real estate investments by allocating funds based on real estate costs.
• He views market downturns as opportunities to acquire more Bitcoin.
• Combining real estate with Bitcoin can enhance cash flow and asset value.
• Most new investors in Cardone’s ventures are more interested in real estate than Bitcoin.
• Bitcoin’s utility gives it an edge over treasury companies.
• Scaling in the crypto space is more challenging than many investors anticipate.
• Real estate offers a stable investment alternative to Bitcoin’s volatility.
• Current US laws are unfair to non-accredited investors, limiting their access to better opportunities.
• Tracking transactions for tax purposes in decentralized markets is complex.
• Government restrictions on investments should be reduced to allow more personal financial freedom.
• Raising funds from non-accredited investors is more challenging than from accredited ones.

Guest intro

Grant Cardone is CEO of Cardone Capital, a private equity real estate firm managing a multifamily portfolio worth over 5 billion dollars, and founder of Cardone Training Technologies, which has trained over 850,000 individuals and businesses globally. He has raised over 1.88 billion dollars in equity through social media crowdfunding and is a New York Times bestselling author whose 10X Rule established the 10X Global Movement. With a net worth estimated at 600 million dollars built through real estate investing, sales training, and entrepreneurship, Cardone brings deep experience in converting real estate assets into alternative investments.

The unique financial vehicle of 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.
• “The real estate and the bitcoin combined is gonna become a bit of a biological transformation financial vehicle 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 can’t easily mimic.
• Cardone’s hybrid model leverages the strengths 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 real estate stability and Bitcoin’s growth potential.

The importance of unit count in real estate

• “The most important number in business is the number of units in real estate.” – Grant Cardone
• Unit count directly correlates with potential income in real estate investments.
• Increasing rent by even a small amount can lead to significant revenue gains.
• “Every time rent goes up $25 I make $80,000,000 for sure if it goes up $250 I make 800,000,000.” – Grant Cardone
• This principle underscores the scalability of real estate investments.
• Cardone emphasizes the importance of maximizing unit count for revenue growth.
• The strategy focuses on acquiring properties that can accommodate rent increases.
• Real estate investors should prioritize unit expansion to enhance cash flow.

Integrating Bitcoin into real estate investments

• Cardone explains his formula for integrating Bitcoin into real estate investments.
• “My formula is whatever the real estate cost to bill less what I paid is my bitcoin allocation.” – Grant Cardone
• This strategy allows for strategic allocation of Bitcoin based on real estate costs.
• Cardone views market downturns as opportunities to acquire more Bitcoin.
• “I want more… the number never feels good but I love it.” – Grant Cardone
• His approach reflects a contrarian investment strategy, viewing dips as buying opportunities.
• This integration offers a diversified investment portfolio, balancing risk and reward.
• Cardone’s strategy is designed to capitalize on both real estate stability and Bitcoin’s growth.

Enhancing value and cash flow with Bitcoin

• Combining real estate investments with Bitcoin can enhance value and cash flow.
• “I’m trying to combine the thievery… converting the discount to bitcoin I end up with something that could actually go you know parabolic.” – Grant Cardone
• This strategy leverages Bitcoin’s potential for exponential growth.
• Most new investors are real estate-focused, not Bitcoin enthusiasts.
• “None of them are at this conference… they’re real estate investors that want cash flow and are willing to take a hope note.” – Grant Cardone
• The approach appeals to traditional investors seeking stable returns with potential upside.
• Cardone’s strategy positions real estate as a stable foundation with Bitcoin as a growth catalyst.
• This model offers a unique investment opportunity that combines stability and potential high returns.

Bitcoin’s competitive edge over treasury companies

• Bitcoin cannot be beaten by treasury companies that lack utility.
• “You can’t beat bitcoin with bitcoin… there needs to be you can’t take bitcoin where where you’re you have a challenge utility already the world already challenges the utility of it.” – Grant Cardone
• Cardone emphasizes the importance of utility in maintaining Bitcoin’s competitive edge.
• Investors often underestimate the difficulty of scaling in the crypto space.
• “I think people just got… underestimated how difficult it really is to scale and they underestimate you know the noise on the way down.” – Grant Cardone
• This insight highlights the challenges of growth in the crypto industry.
• Real estate provides a more stable investment compared to Bitcoin’s volatility.
• “You don’t have a 40% gain in real estate ever… very gradual over long periods of time very boring.” – Grant Cardone

The evolving perception of treasury companies

• The term ‘treasury company’ will become negatively connotated in the future.
• “I said no I do not wanna be called a treasury company… I know there will be a day when the word treasury company will be it’s like a four letter word yeah like you know like an std.” – Grant Cardone
• Cardone predicts a shift in perception, viewing treasury companies as risky.
• Real estate asset value is determined by rental income and location.
• “The value of that asset is the people that are paying me rent right and the location of that asset in the surrounding neighborhood.” – Grant Cardone
• This insight emphasizes the importance of cash flow and location in real estate valuation.
• Cardone’s perspective challenges traditional views on asset valuation.
• The focus is on sustainable income rather than speculative gains.

The impact of US investment laws on non-accredited investors

• Current US laws are unfair to non-accredited investors who need access to better investment opportunities.
• “I can just tell you that the laws in this country are terrible for the nonaccredited investor… 98% of America is not accredited which who needs the best the better investments.” – Grant Cardone
• This insight highlights issues of accessibility and equity in the financial system.
• Tracking transactions for tax purposes in a decentralized market is a major challenge.
• “You’re gonna have one token let’s say if if we got down to $1 tokens could be traded five times in one day how how can I possibly keep up with that.” – Grant Cardone
• The complexity of compliance in a rapidly changing market is a significant concern.
• These challenges underscore the need for regulatory clarity and innovation.
• Cardone advocates for more inclusive investment opportunities for all investors.

Advocating for personal financial freedom

• The government should allow individuals to invest their money freely without restrictions.
• “I just wish they would get out of the way… let me invest if I wanna invest my last thousand dollars with you I should be able to do it.” – Grant Cardone
• Cardone expresses a desire for reduced government intervention in personal investments.
• The biggest problem in the country is that people do not work hard enough to earn money.
• “The biggest problem in this country is people rip themselves off because they don’t work hard enough to earn enough money to have anything to get ripped off for.” – Grant Cardone
• This viewpoint emphasizes individual responsibility over systemic issues.
• Raising money from non-accredited investors is significantly more challenging.
• “The fastest way to raise money is from accredited for people with big checks… the nonaccredited money just 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.
• “The real play for me with the real estate bitcoin hybrid is I’m gonna create… a new financial asset over time… the real estate and the bitcoin combined is gonna become a bit of a biological kinda transformation financial vehicle.” – Grant Cardone
• This insight presents a vision for the future of financial assets by merging two markets.
• Large real estate investment trusts (REITs) cannot replicate this hybrid model.
• “The reits that I compete with can never do this… this is my perfect moat they can never do this.” – Grant Cardone
• Cardone identifies a strategic advantage in his approach, creating a competitive moat.
• The recent decline in Bitcoin offers a window to build the hybrid model without competition.
• “I think I’m gonna have at least two or three years to build this out… they were like I’m gonna go let let’s go play on the cardone the the hybrid bitcoin real estate thing… and then they saw this thing fall apart.” – Grant Cardone

Predictions for Bitcoin’s price trajectory

• Bitcoin could reach $10,000 in two to three years.
• “I think I can do that in two or three years 10,000 bitcoin two years that in two or two or three years.” – Grant Cardone
• This prediction is based on Cardone’s analysis of market trends.
• Real estate syndicators typically do not make as much money as it appears on paper.
• “Real estate syndicators really don’t make that much money and I know it looks good on paper.” – Grant Cardone
• This statement challenges common perceptions of profitability in real estate syndication.
• Selling Bitcoin at a high price allows for significant profit without starting over in real estate.
• “If that bitcoin 2,000 bitcoin goes to a million dollars tomorrow guarantee you I’m gonna sell that bitcoin.” – Grant Cardone