“I treat houses like hospitals. You go in and out”: Grant Cardone says that despite owning $4 billion in real estate, he still rents out his home

Grant Cardone's stance on the real estate market is not just contrarian, it's downright rebellious. The man has a net worth of $4 billion, but he doesn't own the roof he lives under – he rents instead. For him, buying a house is like buying a ticket to financial prison.

In an interview with DJ Vlad in 2019, Cardone explained why homeownership is a terrible option for real estate investors. “I treat houses like hospitals: You go in and you go out,” he says with a shrug, dismissing the idea that a home is a stable, long-term investment.

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Cardone’s perspective turns conventional wisdom on its head. We’ve all heard the argument: “When you rent, you’re just paying someone else’s mortgage!” Cardone doesn’t buy it. He explains: “You could live in a house for 15 years with a 30-year mortgage and still owe what the house was worth when you bought it, or worse.” To him, it’s simple math: “If they’re not paying you, why are you doing it?”

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His disdain for home ownership doesn't end there. Cardone goes further, suggesting that owning something could soon be a thing of the past. “We're heading into an environment where people aren't going to own anything. People are going to rent clothes, furniture, cars,” he says. And he's not wrong: renting is already more popular than owning in many areas of life.

This is where Cardone's love of real estate as an investment comes into play. But it's not about owning a home, it's about generating income. For him, investments are all about one thing: cash flow. “I need income. I want income every month,” Cardone says firmly. That's why he puts his money into income-producing real estate, not into buying a home for himself.

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He explains his philosophy clearly: “You want to have enough passive income so you can buy dumb stuff. It's not just about wealth; it's about wealth working for you. Earned income? That's for dummies. People shouldn't buy dumb stuff.” [__] until they have passive income,” he advises, noting that relying on earned income to fund extravaganzas is a one-way ticket to financial trouble.

Cardone explains that he rents out his house because he gets a better interest rate on the loan, indicating that Cardone Capital likely owns the house and he pays the “rent,” though he doesn’t elaborate on how that works or how much he pays. In other videos, Cardone openly talks about going broke twice a year to buy a helicopter as a tax deduction and investment.

In a world where most people consider owning a home to be the pinnacle of success, Grant Cardone is willing to play by his own rules. For him, the key is not what you own, but what you make your money do for you. If it doesn't make you money, he's not interested.

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