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Shark Tank star Robert Herjavec is doing pretty well for himself — with a net worth estimated at more than US$300 million (1). But during a live conversation, financial influencer Grant Cardone hit him with a provocative question.
“If you were down to your last million dollars, your wife is going to leave you…” Cardone began (2).
Before he could finish, Herjavec cut him off with a grin: “I can’t follow your analogy, because my wife loves me with or without money.”
The crowd erupted in laughter. Cardone shot back, “We don’t know that to be true, because you’ve had money the whole damn time.”
“Fair,” Herjavec replied.
Then Cardone got to the real question: “And you have to invest the $1 million — and you can only invest the $1 million in one thing…”
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Herjavec didn’t miss a beat: “I would invest in real estate” (3).
The audience cheered as Cardone pressed him, “Why real estate?”
“Because desperate people do stupid sh-t — and you’ve got to take desperation out of the equation,” Herjavec said. “I believe in myself. I believe if I have nothing, I’d become wealthy again. But if I’m down to my last million, you know what I’ve got to do? I’ve got to build a foundation. So I would take that money, I would invest in real estate, I would get an income stream and I would forget it existed — and then I would go out and do other crazy stuff.”
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“Best-kept secret on planet Earth”
As a real estate mogul himself, Cardone didn’t hesitate to back him up: “Story of my life right there.”
Cardone added that real estate is a “no-brainer” to him and the “best-kept secret on planet Earth.”
“I don’t know why everybody doesn’t just dump [their money] there and then go build their business again,” he elaborated.
Real estate has long been considered one of the most dependable ways to build — and preserve — wealth. Unlike paper assets that can wildly swing in value, property often delivers both income and appreciation over time.
Owning high-quality rental real estate can provide consistent monthly cash flow through rent. At the same time, real estate has historically acted as a powerful hedge against inflation. As inflation pushes up the cost of materials, labour and land, new properties become more expensive to build — which, in turn, drives up the value of existing real estate. Meanwhile, rents often rise alongside the cost of living, giving investors an income stream that adjusts for inflation.
That’s why many seasoned investors — including Herjavec and Cardone — view real estate as a foundation. In fact, investing legend Warren Buffett has often pointed to real estate as a prime example of a productive, income-generating asset. In 2022, Buffett remarked that if you offered him “1% of all the apartment houses in the country” for $25 billion, he would “write you a cheque (4)."
Why? Because no matter what’s happening in the economy, people still need a place to live and apartments can consistently produce rent money.
The best part? You don’t need billions — or even to buy a single house — to invest in real estate today.
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Tap into the multi-trillion-dollar home equity market
As home prices have risen across the country, Canadians have built substantial wealth through homeownership. In fact, housing now accounts for 47.5% of the median household assets, according to Scotiabank (5). This trend signifies a growing Canadian home equity market, with analysts estimating the market will reach US$233.09 billion by 2030 (6). So while a large slice of the real estate pie has been traditionally reserved for major institutions, Canadian homeowners are now able to tap into that equity themselves.
Invest in real estate crowdfunding platforms
Real estate crowdfunding allows investors to pool their money to invest in larger projects without the need for direct property ownership. Platforms connect investors with developers looking to fund residential and commercial properties. This passive approach lets you benefit from real estate appreciation and rental income without the responsibilities of property management.
Real Estate Investment Trusts earn passive income
A Real Estate Investment Trust (REIT) allows you to invest in real estate without buying property. REITs own and operate a range of commercial and residential properties, including office buildings, apartments, hospitals and shopping centres. Investors earn returns through dividends and potential price appreciation.
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Commercial real estate gives long-term growth
Investing in commercial properties — such as office buildings, retail spaces or industrial facilities — can generate steady rental income and long-term appreciation. While commercial real estate typically requires more capital and expertise than residential investments, it also offers higher returns. Investors can buy commercial properties outright, join a commercial real estate fund, or invest through a REIT specializing in commercial assets.
How much savings do I need in order to invest in real estate?
With passive real estate investments such as REITs, real estate ETFs and mutual funds, you could invest for as little as the share price.
However, if you want active real estate investment through property ownership and you plan to live there (as in, it’s “owner occupied”), you’ll be required to make a down payment of at least 5% on a home with a purchase price under $500,000. Note that for homes priced above $500,000 but under $1,500,000, you’ll need 5% on the first $500,000, and 10% on the portion above that figure (7). And if you’re planning to buy an investment/rental property (a non-owner occupied property) and the home price is $1.5M or more, you’ll typically be required to make a down payment of at least 20%.
Whatever route you take, the good news is that there’s a way for almost everyone to invest in real estate regardless of their income or savings level.
— with files from Sean Cooper
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Article sources
We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.
Investopedia (1); @10xstudios (2); @robert-herjavec(3); CNBC (4); Scotiabank (5); Mordor Intelligence (6); Government of Canada (7)
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.