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Given how much home prices have soared in America, many homeowners may be feeling richer than ever. But real estate mogul Grant Cardone says your house isn’t a smart investment — far from it.
In an interview with podcaster Sean Mike Kelly, Cardone called buying a home “a terrible investment.”
That may sound ironic coming from someone known for investing in residential real estate. But Cardone was quick to explain why: “[A home] doesn’t cash flow. You don’t get big tax write-offs because of it. You have no leverage. You’re living in it. You’re paying for it. You never own it. Even when the loan is paid, you don’t own it, no, you still got to pay property taxes, still got to insure, still got to maintain it.”
When you buy a home to live in, it’s true that it doesn’t generate any cash flow. And even once the mortgage is paid off, there are still ongoing costs: property taxes, insurance premiums, repairs and maintenance. And they can add up fast.
A 2024 Bankrate study found that the “hidden expenses” of owning a single-family home in the U.S. total $18,118 per year — covering everything from property taxes and insurance to maintenance, repairs and utilities. In other words, expect to spend nearly $20,000 annually on top of your mortgage payments.
Cardone says that what keeps people from recognizing the financial downsides is emotion.
“People get emotional about their house — ‘It’s my house!’” he said. “It ain’t your house. You’re a partner in this house with the state.”
‘Never buy a house’
Cardone’s suggestion is simple: “Never buy a house, rent where you live.”
But that doesn’t mean he’s against real estate entirely.
“I’m not saying don’t own real estate,” he clarified. “I’m saying live in a house and pay rent. Take all the money that you would have spent on that house and invest in real estate that cash flows — that pays you every month.”
So, what kind of real estate is he talking about?
Cardone listed several options: “Could be retail, storage, apartment buildings like we invest in. Could be land — if you’re a farmer or rancher and you know how to get cows to cash flow, then do that.”
Let’s break down some of these opportunities.
Retail
Cardone pointed to retail real estate as one potential opportunity — but not all retail is created equal.
With the rise of e-commerce, many brick-and-mortar stores have struggled, which can directly affect the income stream for retail property owners. That’s why selectivity is key.
Ben Mallah, another fellow Florida-based real estate mogul, says he focuses on what he calls “essential real estate” — specifically, “retail that the internet can’t hurt” and “Amazon can’t hurt.”
As online shopping continues to disrupt traditional retail, properties that serve everyday, in-person needs — like grocery stores and pharmacies — tend to offer more resilience. Big-box retailers may come and go, but think about your local supermarket. How long has it been in the same spot? Likely for years, if not decades. That kind of staying power is what makes grocery-anchored real estate attractive.
And you don’t need deep pockets like Cardone or Mallah to access this space. First National Realty Partners (FNRP), for instance, allows accredited investors to diversify their portfolio through grocery-anchored commercial properties, without taking on the responsibilities of being a landlord.
With a minimum investment of $50,000, investors can own a share of properties leased by national brands like Whole Foods, Kroger and Walmart, which provide essential goods to their communities. Thanks to Triple Net (NNN) leases, accredited investors are able to invest in these properties without worrying about tenant costs cutting into their potential returns.
Simply answer a few questions — including how much you would like to invest — to start browsing their full list of available properties.
Apartments
Another type of real estate Cardone suggests? Apartments — a sector he’s heavily invested in himself.
Multifamily properties offer a key advantage: consistent cash flow. Unlike single-family homes, apartment buildings typically house multiple tenants, which helps spread out risk. If one unit sits vacant, the others can still generate income.
Apartments also tend to be resilient during economic shifts. No matter what’s happening in the broader economy, people still need a place to live. And with elevated home prices making ownership less accessible for many Americans, more people are turning to renting — which helps drive demand and keep occupancy rates high.
As with retail, real estate investment platforms and REITs have made it easier than ever for everyday investors to access the apartment market.
Take Fundrise, for example. The platform manages more than $2.87 billion in equity on behalf of over 385,000 individual investors. Its holdings span single-family rentals, multifamily properties and industrial buildings across the U.S.
Getting started is simple. After providing some basic details about your financial background and investment preferences, Fundrise will recommend a portfolio tailored to your goals. You don’t need to be an accredited investor — and you can get started with as little as $10.
Farmland
Cardone also mentioned agricultural land — though with a caveat: it’s best suited for those who understand how to make it cash flow.
While farmland isn’t as commonly discussed as retail or apartment buildings, it can be a compelling long-term investment. The logic is simple: come what may, people still need to eat.
That consistent demand makes farmland a resilient asset — often serving as a hedge during times of economic uncertainty.
According to the USDA, U.S. farmland values have steadily climbed over the past few decades, driven by increasing demand for food and limited supply of arable land.
Getting exposure to this space is easier than you might think. Publicly traded REITs like Gladstone Land (LAND) and Farmland Partners (FPI) allow investors to participate in the sector without owning or managing farmland directly.
If you are looking for options outside the stock market, FarmTogether is an all-in-one investment platform that lets qualified investors buy stakes in U.S. farmland. The platform identifies high-potential agricultural properties and then partners with experienced local operators to manage the land effectively.
Depending on the type of stake you want, you can get a cut from both the leasing fees and crop sales, providing you with a cash income. Then, years down the line after the farm rises in value, you can benefit from appreciation of the land and profits from its sale.
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
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