How Grant Cardone Earns $5 Million a Month With This Passive Income Source
Written by
Gabrielle Olya
Edited by
Joe Evans
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Grant Cardone, private equity fund manager and real estate investor, believes everyone should have passive income streams for building wealth. “Everyone should have multiple flows of income: 1) ordinary income, 2) bonus revenue and 3) passive income,” he told GOBankingRates.
And while there are multiple ways to earn passive income, Cardone believes one method stands out above the rest.
The Asset That Brings in $5 Million a Month
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Cardone views real estate as superior to stock dividends and intellectual property for earning passive income. Though it may take more of an upfront investment, the rental income you bring in can be quite a profitable side hustle.
“Stock dividends are paid quarterly and your bills are due monthly,” he said. “Every other thing you can do to earn passive income –book royalties, music, online influencer, digital products online — all require some creation, most of which never make [money].”
On the other hand, real estate investments such as residential or commercial rental properties are often very lucrative and can diversify your investment portfolio.
“At Cardone Capital, we paid out $60 million last year, averaging $5 million monthly in passive income to our limited partners/investors.”
What To Look for in a Passive Income Real Estate Investment
Cardone said that apartment buildings are the best type of real estate to buy for passive income generation right now.
“If Americans want to tap into the real wealth in this country, they have to get away from buying single-family homes and shift into this other asset class, which is apartments,” he said. “If this was 2008, the opportunity would be single-family homes. But [now] the correction is in apartments and offices.”
He added, “Americans should be looking for loans maturing this year on complexes that are 40 units or bigger. And then they should put a group together to finance that asset and they will get rich beyond their wildest imagination.”
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