“Don’t buy a house.”
This advice from Grant Cardone was polarizing to me when I first started following his content a couple of years ago.
Since then, I’ve implemented this mindset and found it to be one hundred percent accurate. Unfortunately, I confirmed the veracity of Grant’s statement the hard way – due to a bad deal that I bought around the age of 22.
It seems that from the time you’re a young child, your parents, grandparents, teachers, and every other influential person in your life hammers the idea into your head that buying a home is the wisest investment you will ever make. To hear anyone say otherwise can be shocking.
Recently, I asked Grant why he thinks it is a bad idea to buy a house. His response was very interesting.
Grant Cardone: “Houses were made for banks. Houses were not made for people. One door is not an investment. One door is a liability. I don’t need to own where I live. What I want to do is own real estate that I can rent to others.
“One door is not an investment. One door is a liability.” – Grant Cardone
I only want to own what pays me every month. I don’t buy land. Nobody should buy land. That’s speculation. I would buy land if it was producing oil and if I was getting a pump every month. I only buy things that give me checks.
Warren Buffett bought one house his whole life – his entire life. One $28,000 house. That’s not how he made his money. He didn’t build equity in that. He bought companies. By the way, he doesn’t invest in the stock market. He’s not a risk taker. He invests in sure things.
So what am I invested in? The only thing I buy is multifamily or office. They pay you. They have the cash flow from month one.
We’re location driven. Market driven. Markets like Austin, Nashville, Tampa, Orlando, the Dallas or the Houston markets where there is growth. Salt Lake City, Vegas… I love Vegas – for multi-family. I don’t like them for houses.”
What do you think of Grant’s advice? Let me know in the comments below.
Hear more from this interview, as well as interviews with Cole Hatter and Brandon Turner by clicking here.
Definitely controversial. It’s so engrained in my mind. It’s like a deep belief that a house is your “for sure” investment.
What if you already own a house? Sell it? What if you just (6 years ago) built your (at the time) dream home?
And what if your whole family loves that home and doesn’t want anything else?
And what if deep down you have all these questions, yet you do question at least the possibility of selling?
So interesting. Love it.
Thanks for sharing,