Grant Cardone Says Real Estate ‘Is a Better Investment Today Than It Was 2 Years Ago’: Here’s Why

With interest rates on the rise and home prices remaining largely stagnant, many would-be real estate investors may be wary about buying in this market. But Grant Cardone, author of “The 10x Rule,” believes that now is actually a smart time to buy.

Cardone — who manages a real estate portfolio of multifamily properties valued at over $4 billion — shared his top reasons to buy in the current real estate market.

Also see the best states to buy in the next five years.

5 Reasons To Invest in Real Estate Now

“Not only do I believe real estate is a good investment, I think it is a better investment today than it was two years ago,” Cardone told GOBankingRates.

He outlined his top five reasons:

  1. “You are going to pay less today than two years ago.”
  2. “Construction is going to be reduced due to interest rate [hikes] and banks tightening [their lending].”
  3. “Because mortgages are more expensive, more people will become renters.” This means more opportunities for you to earn income through rentals.
  4. “There is a shortage of new properties. Most homes and apartments are very dated.” If you can invest in improving a current property, you can charge more for rent.
  5. “If you can find a property that has cash flows with a renter, you will pay your mortgage and get cash flow.”

Where To Buy Real Estate in the Current Market

The location of a property has a big impact on whether or not it’s a good investment, so you need to think critically when deciding where to buy.

Cardone said, “I would buy in markets where there are barriers to entry and positive job growth, where I could buy below replacement cost and [there are] newer properties that offer great amenities in great locations that people want to live at.”

If you find a property that meets these criteria, you can charge a good amount for rent.

“Remember,” Cardone said, “no matter how much people complain about the cost of rent, it is still less than half the cost of home ownership, and that is true in almost every major market in America.”

Why Real Estate Will Always Be a Good Investment

Cardone advises buying multifamily properties so you can maximize your income from rentals.

“America will become a renter nation like the rest of the world,” he said.

With more people renting, your earning potential as a property owner will continue to increase.

“Tremendous wealth has been created and protected for hundreds of years [through real estate investing], and this will continue into the future,” Cardone said. “What you buy today, as long it’s in a great location, it will be worth two times more 10 years from now, and you will have also earned passive income for the 10 years.”

Cardone notes that, due to inflation, it’s better to have your money in real estate than in cash.

“The dollar will continue to be worth less,” he said. “When comparing the growth of the U.S. dollar to the growth of U.S. real estate, there is only one winner.”

Gabrielle Olya contributed to the reporting for this article.

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