I believe that this is going to be a year of big changes for real estate investing in a significant way. Unfortunately, this prediction does not apply to single-family homes. And if you’ve been following me for a while, you know this is not breaking news.
Now, some of you may be saying…
“But Grant, you have that big house on Malibu Beach.”
However, there is a difference between my viewpoint on that property and other people when they purchase a home…
I DON’T SEE THAT HOME AS AN INVESTMENT.
That is for the simple fact that single-family homes don’t behave like assets do. By definition, an asset has to pay you…
More Hard Truths About Single-Family Homes
A little over a month ago, I appeared on a major news network to discuss real estate.
I was asked where people should invest their extra capital. Of course, my answer was real estate. But, I advised against house-flipping or single-family homes.
Specifically, I gave two reasons for this…
For one, single-family homes don’t appreciate the same way multifamily assets do.
Additionally, they don’t pay you anything the entire time you live in them!
Second — and most people don’t know this — is that cash-flowing assets give you more leverage with banks than credit. Therefore, owning your house is not going to help you towards financial stability as much as you think.
Look, I’m not trying to make you feel bad if you do own a single-family home. Nonetheless, I encourage you to view it from a different perspective.
Be Great,
Grant Cardone
Disclaimer: This content is intended to be used for educational and informational purposes only. Before investing, you should always do your own analysis based on your own financial and personal circumstances before making any investment. Grant Cardone is an industry expert who has been investing for over 30 years and his opinion is based solely on his own personal experience and circumstances. Individual results may vary. You should perform your own due diligence and seek the advice from a professional to verify any information on our website or materials that you are relying upon if you choose to make an investment. Investment involves great risk and there is no guarantee of performance or results.We are not attorneys, investment advisers, accountants, tax professionals or financial advisers and any of the content presented should not be taken as professional advice. We recommend seeking the advice of a financial professional before you invest, and we accept no liability whatsoever for any loss or damage you may incur.
