'The worst investment people can make': Real estate guru Grant Cardone says too many Americans are still chasing the dream of homeownership — here's what he says you should do instead

What Cardone advises

“A $576,000 home will have to be sold for $1.2 million in 10 years,” Cardone said in the Instagram post. “You’re not going to sell it for that, to break even.”

He described the exercise as “dead money” — a term used for an investment that has shown little increase in value or is locked up for a long time with little yield.

Cardone advocates for real estate investments that aren’t tied to your own living situation.

If you're keen on getting into the real estate game, crowdfunding platforms — a process championed by Cardone — allow everyday investors to pool their money to purchase property (or a share of property) as a group.

Invest in REITs and ETFs

You can also invest in a residential real estate investment trust (REIT), publicly traded companies that collect rent from tenants and pass that rent to shareholders in the form of dividend payments. DLP Capital gives you easy access to REITs through their crowdfunding platform.

Through a number of their tax-advantaged funds, DLP Capital puts a focus on making an impact on America’s housing crisis by investing in income-producing affordable rental housing in high-demand U.S. regions. So, you’re not only investing in a worthy asset, but also in the community it’s a part of. The platform offers a variety of funds in residential and multifamily real estate with targeted annual returns of up to 13%.

To start investing with DLP Capital, all you have to do is answer a few questions about yourself and you can start browsing REIT options, find the right fit for you, and take advantage of these vehicles known for generating steady returns.

While Cardone seems clear on his investment priorities, it helps to seek a second opinion from the experts. That’s why the team of former hedge fund analysts and experts at Moby spend hundreds of hours each week sifting through financial news and data to provide top-tier market advice, written in easy-to-understand formats.

Moby’s superior research includes insights on the REIT and ETF markets, so you can reduce the guesswork when selecting investments. In four years, across almost 400 stock picks, Moby's recommendations have beaten the S&P 500 by almost 12%, on average.

Become a wiser investor in just five minutes, backed by their 30-day money back guarantee.

Invest in rental properties

Most Americans who rent their homes feel that they can’t afford a downpayment to buy their own property — much less an investment property to rent.

So, if you aren’t ready to jump into home ownership (financially or otherwise), there are platforms like Arrived that let you buy stakes in rental properties, earn dividends, and skip the responsibilities of property management.

Backed by world class investors like Jeff Bezos, Arrived’s easy-to-use platform offers SEC-qualified investments such as rental homes and vacation rentals for as little as $100. Their flexible investment options allow both accredited and non-accredited investors to benefit from this inflation-hedging asset class with ease. You start by browsing vetted properties, then you simply select a property and choose the number of shares to buy.

For those looking to diversify even further into real estate, the Arrived Private Credit Fund offers another compelling option.

This fund offers investors access to short-term loans for real estate projects — such as property renovations and new home construction — managed by real estate professionals. Secured by residential properties, these loans range from $100k to $500k with terms of 6 to 36 months. Investors can earn monthly dividends from interest payments, with a a target annualized return of 7-9%.

With a minimum investment of $100, the fund provides quarterly liquidity and diversification across a pool of real estate-backed loans.

Necessity-based commercial real estate

Investing in necessity-based real estate is one way to grow your money over time.

Commercial real estate has long been touted as a wise investment for adding stability to your portfolio, outperforming the S&P 500 over a 25-year period.

First National Realty Partners (FNRP) provides accredited investors access to institutional-quality commercial real estate investments with the potential to passively collect distribution income.

As a private equity firm, FNRP acts as the deal leader and offers white-glove service to investors, providing expertise and doing the legwork. The team has developed relationships with the nation’s largest essential-needs brands, including Kroger, Walmart, and Whole Foods, and provides insights into the best properties both on and off-market.

You can engage with experts, explore available deals and easily make an allocation, all on FNRP’s secure platform.