Grant Cardone: 2024 Will Start ‘Greatest Real Estate Cycle’ — How To Take Advantage
Written by
Gabrielle Olya
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
Whether you’re an experienced real estate investor or want to get started in 2024, there will be plenty of opportunities in the coming year, predicts Grant Cardone, private equity fund manager and real estate investor.
“I think this is going to be just the start of the greatest real estate cycle in my lifetime,” Cardone told GOBankingRates.
Here’s why Cardone is feeling optimistic about real estate investing in 2024.
Multiple Factors Are Leading to a Real Estate ‘Supercycle’
Cardone, who will be hosting his Real Estate Summit in Scottsdale, Arizona, Dec. 19-20, said several factors at play will make 2024 a great time to invest in real estate, specifically in multi-family homes.
“Three things will cause it to be an unbelievable opportunity,” he said. “No. 1, there’s a correction in place. No. 2, new Fannie Mae guidelines will make it easier for homeowners to buy four units. And No. 3, interest rates will be coming down.”
Cardone believes the drop in interest rates will occur after the election. At that time, we will “see a normalization, back to an under 4% all-in rate,” he said.
How To Take Advantage of the New Real Estate Cycle as an Investor
The upcoming real estate cycle “means an opportunity for individuals like myself,” Cardone said. “It’s going to be an opportunity for individuals that are able to raise money to buy institutional assets from institutions for the first time in American history.”
If you don’t have enough capital to make these investments on your own, look for other ways to get a piece of the pie.
“Passively, they could invest with somebody like me that is out buying real estate from the institutions,” Cardone said. “Or they need to find a syndicator — somebody in the space that is putting together institutional quality assets and buying them from institutions. I’m buying two deals right now for almost 40% below replacement costs.”
If you are able to buy these properties yourself, Cardone said there are a few steps you must take.
“One, they need to locate the assets,” he said. “Two, [they need to identify] the owner. Three, [they need to know] the maturity date of the loan. [Four], they would need to raise equity to purchase. If they raise the equity, the fifth thing they would have to do is get debt.”
The best assets to buy during this cycle will be multi-family properties, Cardone said.
“The easiest route to cash flow is to buy an asset that has below market rents and raise them,” he said.
More From GOBankingRates
