Grant Cardone buys real estate with Bitcoin – Should you?

Cryptocurrencies have become an increasingly popular form of investment thanks to the prevalence of Bitcoin.

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Since programmer Laszlo Hanyecz spent 10,000 BTC on two pizzas in 2010, marking the first real-world transaction using Bitcoin, pushing the limits of what investors can and can’t do with cryptocurrency.

Certain investor Grant Cardone recently shared in an episode of “opening bids” that he uses Bitcoin to buy real estate. Here’s how he does it and what industry experts have to say about this issue:

While some investors argue for the merits of investing in real estate, Bitcoin or stocks, Grant Cardon had another idea.

“What if real estate buys my Bitcoin? He speculated.

What he did then was to buy $88 million in property for $72 million (due to the current state of the debt market). He then added $15 million worth of Bitcoin to the transaction and put two values ​​($72 million and $15 million) in another fund.

He then gave the audience the opportunity to take part in the Bitcoin Real Estate Fund they did. Neither the real estate itself nor Bitcoin has any debt, so monthly cash flow is around $350,000. Cardone uses that money to buy more Bitcoin.

The final result?

Cardone still owns real estate for example four years. Assuming that the property remains valued at $88 million, his overall investment will increase due to the combination of today’s price and buying Bitcoin at the property.

“So, what’s better than real estate or bitcoin?” he asked. “The better thing is, we’re going to take Bitcoin out of real estate, take two things and take it to the end of this year or the first market next year, and then try to ring the bell and turn it into paper.”

Currently, Cardone aims to do this process four times, totaling 10.

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So, do you need to use Bitcoin to invest in real estate? It depends on your risk tolerance and the horizon of time.

“As a way to diversify, you might want to convert some of your Bitcoin into real estate,” said Ian Kane, CEO and founder of Firepan. “They get peace of mind and don’t risk seeing a swing in their six-figure or seven-figure portfolio. Furthermore, real estate offers passive income opportunities and could be a hedge against Crypto’s volatility. However, if Bitcoin prices pumped immediately after purchase, there may be a buyer’s rimmer.”

An alternative that will allow you to continue filling your investment portfolio is to get a Bitcoin-backed mortgage.

“The loan is protected by Real Estate + BTC and allows you to make monthly mortgage payments as a percentage of BTC derived in US dollars,” Kane said. “This is the best in both worlds!”

But know that Bitcoin has its challenges, especially when it comes to stability and regulations. Its value has skyrocketed, but it is still a volatile asset. For some, investing in encryption can make it difficult to make effective real estate transactions, but this can change over time.

“It’s an interesting concept, but I don’t think that most people using Bitcoin to buy real estate is still practical at least,” said Louis Adler, co-founder, principal and real estate broker of Real New York. “Real estate remains a fundamentally traditional asset class, and crypto volatility creates too much unknown for both buyers and sellers.”

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This article was originally published on gobankingrates.com. Grant Cardon buys real estate with Bitcoin.