Grant Cardone insists that the home is "not an investment, it's an expense, by definition" - "I prefer to pay $ 2400 rent than $ 2400 mortgages"

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Grant Cardone built a multi -billion -dollar real estate empire, but he has no interest in owning the roof over his head. The outspoken investor, known for buying and managing thousands of units for rent, chooses to hire his main residence – and says that you should too.

“I prefer to pay $ 2400 a $ 2400 mortgage rent,” he said in an interview with YouTuber Kevin Cuney, a video that has since made Tiktok circles. “Because I can get out of this rent every 10 months. This mortgage is 30 years.”

For most Americans, owning a home is a cornerstone of the American dream. For cardone, this is simply a responsibility wrapped in granite countertops. He does not see the place in which you live as a financial asset.

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“If you live in your home and pay the expenses of your home, it’s not an investment,” he told Kouni. “This is an expense by definition. And by the way, your home should not even continue to deal with your net value.”

Cuuni agreed, pointing to the hidden expenses that the homeowners often blind. “Our refrigerator breaks, I put a little thing in our portal; the new refrigerator is igniting there,” he said. “This is a fixed price.” He added that a friend of his always destroyed the $ 4700 rental cutlets while the friend pays $ 3,500 for a mortgage – but for him, without having to deal with repairs or surprise, it’s worth the premium.

Cardone supported him, saying that this friend does not make full mathematics. “He does not count his fees for HOA, he does not count ownership taxes, he does not count insurance out of control, does not count the maintenance,” he said. “That’s 1% annually. Property taxes 2% annually. So it’s 3 points each year.” And then it’s mortgage interest. “Choose a number. They’re all sucking a dude,” he added, referring to tariffs that can range from 3 to 7 percent.

These costs are not imaginary. According to Bankrate, the hidden costs of owning a single-family home, which is now an average of over $ 21,000 a year’s mortgage payments. From property taxes to repair, this is a long list of things that drain your wallet without building equity.

Cardone’s position is not about avoiding debt – it’s who pays it. “I would rather pay 7% of the mortgage that a tenant pays than 3% in my home I pay,” he said. In other words, he is good with great interest – as long as someone else covers it.

This is a thinking that he has been repeated for years. In an interview for 2019 with DJ Vlad, Cardone delivered one of the most memorable one-linear: “I treat houses like hospitals-entering, you go out.” His reasoning was dumb. “You could live in a house for 15 years with a 30-year-old mortgage and still owe what the house costs when you buy it-or worse.”

Critics are in a hurry to point out that cardone has profitable directly from this philosophy. By encouraging the public to hire, he expands the tenants’ pool for the properties he owns. The cash flow goes to him, not the tenants. But even if his motives are self-serving, the model is difficult to argue-he has collected the asset, to hire it and to let someone else build your wealth.

This formula has been reserved for tycoon with deep pockets and rolodex by property managers. Arrived allows regular people to enter the game – fighting slices of homes for rent without lifting a wrench or hunting tenants. You can start with only $ 100 as they deal with the headache and collect passive income.

Cardone does not reject the value of home ownership – if the purchase of a house is aligned with your goals, this is great. He simply points out that hiring does not deserve the stigma he often wears. For some, this is the more intelligent financial move. For others, it’s about flexibility, avoiding a repair headache or does not want to chase performers every time something breaks. It may be that you are not tied to a mortgage when life changes. Whatever the reason, ownership is not the only way – and leasing does not make you less skilled to choose.

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This article grant Cardone insists that the home is “not an investment, it’s an expense, by definition” – “I prefer to pay $ 2400 dollars than $ 2400 mortgages”, originally appeared on benzinga.com

Grant Cardone insists that the home is “not an investment, it’s an expense, by definition” – “I prefer to pay $ 2400 rent than $ 2400 mortgages”

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