Grant Cardone, CEO of Cardone Capital, through his approximately $5 billion property management firm, distributes real estate income via Bitcoin. $104,876.5It launched a new fund that invests in . Cardone stated that this model is scaled and has not been implemented before. He stated that investors responded positively to this new model.
Model Combining Real Estate and Bitcoin
As part of the pilot project, Cardone purchased an apartment complex in Melbourne, Florida, for approximately $72 million. He invested an additional $15 million in Bitcoin, making a total investment of $88 million. Real estate proceeds will be invested monthly in Bitcoin over the next four years, moving the fund’s assets from 85% real estate and 15% Bitcoin to 70% real estate and 30% Bitcoin.
Cardone predicts that if Bitcoin reaches $158,000 within a year and $251,000 within two years, the value of the fund will increase by 25% and 61% respectively. Cardone, who expects Bitcoin to reach $ 1 million per coin in five years, plans to continue this project with 10 similar projects until June.
Cardone’s Investment Strategy
Cardone Capital is known for its 30 years of real estate experience and manages 15,000 apartments with funds raised from 18,400 investors. The company distributes annual dividends of $80 million. Cardone avoids taking institutional investments.
“I’m definitely a risk taker, but I’m a real estate professional and I’m much more cautious compared to the lax behavior in the blockchain industry.” -Grant Cardone.
Cardone plans his investment to buy Bitcoin within 72 hours after monthly distributions, without focusing on price. Additionally, it aims to hold Bitcoin through an institutional custodian and will not utilize any exchange-traded funds. While Cardone expressed his concerns about the increasing excitement around Bitcoin, he stated that he is currently evaluating this chance. He emphasized that for young investors, Bitcoin does not provide constant cash flow like real estate.
This new model of Cardone Capital aims to offer new opportunities to investors by integrating real estate income into the cryptocurrency market. How investors will respond to this hybrid approach will become clear in the coming period. Cardone’s strategy aims to provide portfolio diversification by combining real estate and cryptocurrency markets. His long-term plans include implementing this model more broadly and potentially going public.
This innovative approach by Cardone Capital aims to offer investors both the stability of real estate and the potential return of cryptocurrency.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
