Cardone combines discounted real estate with Bitcoin

Transcript

From the transcript How I Invest publishes with the episode.

1. 41:39

   Walk me through that. I've I've been buying real estate for almost forty years now. And while real estate has been a very dependable investment over long periods of time, it's also very boring. It's very expensive. If you get a good piece of real estate, you wanna hold on to it, but it's boring. Like, it takes a long time for it to work. When it works, it works great. But every ten years, it can be very expensive because of gutters, plumbing, HVAC, roofs, property taxes, etcetera.

2. 42:10

   So last year I mean, for forty years, I've been looking for for ways to improve my property. Well, there's only so many ways to improve the property. You can paint it, fix the kitchen, fix the plumbing, lighting, change the name, branding, treat the clients better, etcetera. But there's only so many things everybody can do. At some point, you're just real estate, and your real estate's across from my real estate, and the rent's gonna be about, you know, about the same.

3. 42:33

   So last year and for forty years now, we've been looking for ways to improve that. Well, I've been studying Bitcoin for quite a while now. And last year, we combined real estate and Bitcoin. So we took a piece of real estate, paid cash for the real estate, very, very conservative, no debt. It was a $72,000,000 complex. The the product should have sold for 88,000,000. We paid 72, and we filled it up with $16,000,000 of Bitcoin.

4. 42:59

   So rather than just stealing the real estate, which I'm good at, that's what we do. We buy distressed properties below replacement cost. I've done 46 of those projects. What I tried to do was rather than just buying the distressed product, I just took the the the distressed portion, the gap, and rather than buying something invisible, a discount is a ghost. It's just cheaper. There's no real value in a discount.

5. 43:23

   We took the discount portion and filled it up with a product called Bitcoin that has the volatility. It goes up and down. Right? It can go it could go all the way to zero or it could go to 250,000 of Bitcoin or 500 or right now, it's just going sideways. So we combine the two, put the two together. We've done five of these now. We have, we accumulated almost 2,000 Bitcoin yesterday. I was with World Liberty Financial up at Mar A Lago yesterday.

6. 43:48

   There was about 300 of us. There was mostly Bitcoiners and tokenized companies coming into this space. We're we're basically creating a new company. Okay? It's gonna be a real estate Bitcoin hybrid vehicle. And the reason we did it is because there's a it's a way to improve returns to the real estate investor, to our investors. It's also a way to introduce our real estate investors, conservative investors that want cash flow to Bitcoin.

7. 44:14

   And thirdly and most importantly, it's the creation of a new financial vehicle that we believe is the first time in sixty five years that real estate has been changed. So there's a little glitch in the real estate industry that's about sixty five years old called r e I t, REITs. You'll hear to them referred as REITs, real estate investment trust. They cannot hold any currency on their financial statement.

8. 44:39

   They can never hold Bitcoin. They're trapped in a, you know, like a six to 8% return a year. When we combine the two, real estate and Bitcoin, I now have a bit of a moat built around my company that a 190 companies that control real estate in America at about $4,000,000,000,000 cannot compete with me. So we think we create a new I literally believe that I'm gonna I'm gonna we're gonna look back sixty years from now and say that 2025 was the year that the real estate Bitcoin hybrid was created, and it's gonna change the way people invest in real estate going forward.