Generational wealth redistribution
For most people, the single-family home is still thought of as the most accessible and familiar real estate asset. Multi-unit properties, by contrast, have typically been beyond the reach of the average American.
However, Cardone believes this dynamic is set to change.
“You have major institutions that are releasing assets back to regular, ordinary, everyday people,” he said. “Institutions are having to let those properties go because their debt is due.”
According to Cardone, this presents a tremendous investment opportunity for regular Americans. He even thinks it could serve as a gateway to substantial opportunities for all age groups, particularly Gen Z.
“This is true generational wealth redistribution,” he argues.
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Learn More‘I guarantee it’
Cardone is no stranger to making bold statements. After all, the man once called buying a home “the worst investment people can make.”
Instead, Cardone favors rental properties, seeing them as a more robust investment. In fact, despite anticipating a significant market correction, he remains confident about the future of this asset class.
“I'll make a prediction right now… real estate will be the number one [investment] category by the year 2026, for all age groups. I guarantee it,” he told Payne, outlining several of its advantages.
“It’s easy to leverage, protects you against inflation, benefits from rent increases, and provides cash flow that people have to have today,” said Cardone.
He makes a compelling argument: real estate is widely recognized as an effective hedge against inflation. As the price of raw materials and labor goes up, new properties are more expensive to build. This can drive up the price of existing real estate.
Well-chosen properties offer more than just potential for price appreciation. Investors also get to earn a steady stream of rental income. Plus, rental rates typically rise with inflation, further enhancing the investment’s value over time.
The best part? You don’t need to be a real estate mogul like Cardone to own rental properties. These days, there are many real estate investment trusts (REITs) and crowdfunding platforms that enable everyday Americans to earn rental income without becoming a landlord.
So, while there may be some facts to face for single-family homeowners over the next year, there could be a new investment to seize just a few blocks away.
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