Grant Cardone Says To Skip This Type of Real Estate Investment If You Want To Make $1 Million
Written by
Josephine Nesbit
Edited by
Amber Barkley
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.
20 Years
Helping You Live Richer
Reviewed
by Experts
Trusted by
Millions of Readers
Looking for your next real estate investment? Businessman and real estate investor Grant Cardone says to skip the single-family home and invest in a multi-family property instead.
“The real problem is that Americans are buying single-family homes rather than the assets that the big guys are buying,” Cardone said in an interview with journalist Christopher Cuomo. His recommendation? “Buy the whole building and rent it out to other people.”
Here’s why Cardone recommends buying multi-unit properties if you want to make $1 million rather than single-family homes.
Why Cardone Says Multi-Family Properties Build Wealth Faster
“I don’t consider a single-family house an investment,” Cardone said in an interview on Fox Business’ “Making Money with Charles Payne.”
While some investors appreciate the simplicity of owning single-family rentals, like lower tenant turnover and potentially lower entry costs, Cardone argued these benefits don’t stack up when your goal is to scale quickly and build serious wealth.
According to Cardone, multi-family real estate is straightforward to invest in, easy to leverage, offers protection against inflation and generates consistent cash flow.
Single-family homes lack these advantages. They typically don’t appreciate at the same pace as apartment complexes. Plus, with more units, the risk of vacancy is spread out. This gives investors more predictable cash flow.
What Cardone Recommends
What you need to look for, according to Cardone, is a building with 32 units where they’re underrated by $400 per month or a building with 64 units where they’re underrated by $200 per month.
For example, if you find a 64-unit property renting at $1,200 per month when the market supports $1,400, that’s $12,800 in potential additional monthly income once rents are adjusted. This adds up to over $150,000 in extra revenue per year.
“That’ll make you a million dollars every time you do it,” he said.
While it may take time to make a million dollars on a single deal, the key is scalability.
If you can do it once, you can do it again to build wealth over time, according to Cardone. He recommended focusing on solid deals where you can force appreciation by raising rents to market levels. When you stack enough of those wins, the path to seven figures becomes a lot clearer.
More From GOBankingRates
Sources
- TikTok, Grant Cardone, “People Need To Stop Buying Single-Family Homes.”
- YouTube, Grant Cardone, “Why A House is NOT an Investment.”
- TikTok, Grant Cardone, “You Are Not Going To Find 10’s If You Are Looking For 3’s.”
