You Don’t Need to Choose—This Combo Builds Wealth Faster! | Grant Cardone

0:00 In the Bitcoin community, there's a raging debate. Which is better, Bitcoin or real estate? Yeah. Yeah. Yeah. Yeah. And I think that's the wrong question, dude. You know what? This is what got me into it. I was in a on a on X on a space. Yeah. A lot of spaces. And the debate, they had me in it. I was the real estate guy. And the debate was real estate, Bitcoin, or stocks. And I'm like, guys, what about all three of them? Why not have them all? Like, we have figured out how to take our real estate. We're on our fourth fund about $300 million worth of real estate and $45 million almost $50 million worth of Bitcoin. We merge the two together and the real estate continues to buy real uh uh Bitcoin every month out of the cash flow. We have best-in-class real estate

0:45 with best-in-class money Bitcoin. One's liquid, one's not. One has volatility, one has zero. Like real estate is so boring. It has a zero volatility, right? Okay. It never has any problems until the debt market has problems and you know one has tremendous liquidity, one doesn't. Not most of the people in this room cannot handle liquidity. Like ill illlquid would be better for most of the investors here than liquidity. Why is that? Because when I'm illquid, I don't get rid of my investment. I don't I'm like, bro, I'm not getting rid of it. You hold. I hold. Yeah. And time heals all problems. as long as you have enough time particularly in real estate and and it benefits uh uh Bitcoin as well because if you had 13 years nobody's lost money.

1:31 Yeah. But the same thing could be said about great real estate. The Vatican is worth more money today despite the Pope's come and go and wars and economies and dollars. The Vatican is still there and it's it's bringing in more bank today than it did a thousand years ago. Yeah. So, uh, if you can if you can merge the two together and then become a stock, which is what Cardone Capital is going to be. That's why I wore the ad right there. Um, then I have the best of the real estate, I have the best of the Bitcoin, and I have the best of being a public company traded on the stock market. Yeah. So, when people try to frame it up that way, then they're thinking too linear. Like, they're trying to pit two against each other, and they're thinking like, well, which one's going up faster? But it's not about that, right? Because well it doesn't have to be that unless you're going to have that conversation. You

2:17 know what's better? Coke or Pepsi? Neither one of them. I mean they're both terrible for you. Yeah. So so uh but with but with real estate we get the leverage because we have we have the loan. Yeah. We have tax efficiency because we can get we can depreciate the asset, right? We get equity principal payown by somebody else. You don't get that in Bitcoin. You don't get that Bitcoin. And then with the cash flow you efficiency I gain. I get more after tax dollars to buy more Bitcoin. That's right. Right. So, and both benefit from appreciation, both benefit from uh from the destruction of the US dollar. The the real estate benefits from rent growth. That doesn't happen with Bitcoin. So, that's why I'm saying that if you could figure out how to get them both. I had a guy tell me, he's like, "Grant, if you'd have taken your $5.2 billion and only own Bitcoin, you'd be

3:04 worth $20 billion." I'm like, "Yeah, what's the point, bro? like you're telling me to get rid of a business to have a different business. Like I don't need to do that. I need to figure out how to merge the two together. The other thing I like about what your angle is as well that I'm hearing from you anyway is that it's also a business that's providing value. Like you're providing homes for people. And at the end of the day, financial markets are great to make money, but there's not really a lot of value that's being provided there. And so we still need people to provide value to the world, give jobs, provide homes, things like that. I can't take a Bitcoin only fund public. So like why why would I like it doesn't make any sense but I could take a real estate and Bitcoin merge them together and become a new product. I could offer a I could see in the future I've already met with Fanny and Freddy uh and the

3:51 head of FHF FA and said, "Hey guys, they're gonna be a long-term 20-year mortgage product." Yeah. That is Bitcoin and real estate friendly, not a margin call. Could be a long-term it could be a 30-year mortgage on those two combined as long as you have cash flow with the with with the two of best two best worlds combined. So, can we talk about the deal? So, you have a deal that you've recently announced that you I believe you're then putting the cash flows into Bitcoin. Is that right? That's right. So none of the financing or debt is going into Bitcoin. Just the cash flows from the project are going into Bitcoin. We're we're paying cash for both. Okay. So you've raised money to go buy a No, we got money. So we buy it off of my my balance sheet. Okay. So I'll buy We're doing a deal right now. It's $122 million combined. Okay. It'sund and where where is this? It's Miami, Florida, Miami River. I'll send

4:38 you the pictures of it. Uh it's 346 units. It's 122 million combined. 107 plus 15 million in Bitcoin. We pay cash for both. We close and we drop it into an LLC structure. So, and I go to my audience say, "Would you like to invest in this?" They invested the same price I did. All the money comes in, part of the money comes in or no money comes in. It doesn't matter to me. I'm buying it anyway. And then what we do is we put that in a fund. Now, I've done four this year. I'm going to do another eight. I'm gonna have a total of 12. Okay? and then I'm going to take them merge them together in a public company and bring it to the market. Well, talk to me about and then we think we get a double or a triple in the valuation. So, you're buying real estate and Bitcoin together

5:23 and putting them both together in a fund that then people can invest into. And so, what do you expect for the economics of that fund? So, if I'm buying a traditional real estate fund, I'm getting a 8% preferred. Maybe I'm getting a 20% IRR, but if I put a Bitcoin kicker in, then I get a much bigger upside potential. go from what's considered a 15 to 18% internal rate of return to 35 to 45%. With zero risk, I mean, as close to zero as you can get. I'm not losing the real estate. I have no mortgage on it. I guess Bitcoin could go to zero, but somewhere down to zero, somebody's buying it. Yeah. So, I don't know how it gets to zero, but even if it did, I still have my real estate, right? So, I I have a no loss situation. The the the cool thing is we're we're onboarding people that have never considered

6:08 Bitcoin. They've heard about it, but they haven't bought any because they don't feel like they're buying the Bitcoin. They're buying the real estate that buys their Bitcoin, right?