Go Big with Gib Podcast
Go Big with Gib is a podcast for professionals, business owners and entrepreneurs to talk about their big wins.
Go Big with Gib Podcast
Ep 70. Cardone's Bold Move: Bitcoin Returns on Real Estate Investments
Grant Cardone has created an innovative real estate Bitcoin fund that pays monthly cash flow distributions in cryptocurrency instead of traditional currency. This hybrid model combines the stability of real estate investing with the potential upside of Bitcoin appreciation, offering investors a dual growth mechanism.
• Minimum investment in Cardone's fund is $250,000 with monthly distributions paid in Bitcoin
• Bitcoin has surged from $75,000 to $95,000 since early April 2023, demonstrating significant growth potential
• The fund aims to return 100% of investor capital within 2-3 years through strategic debt placement
• Traditional real estate syndications typically target 12-15% IRR, but Bitcoin distributions can potentially increase in value over time
• This model provides accredited investors crypto exposure without experiencing the full market volatility
• The approach offers tax advantages through structured Bitcoin transactions
• Similar real estate Bitcoin funds are likely to become more common in the investment landscape
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Welcome to the Go Big With Gibb podcast, where we talk to professionals, business owners and entrepreneurs about their big wins. Hey guys, and welcome to this episode of Go Big With Gibb, the podcast where we talk about bold strategies for wealth building. I'm your host, gibb Irons, and today I want to talk about a game changer in the real estate investing world, specifically, grant Cardone's innovative real estate Bitcoin fund. Grant Cardone, the real estate mogul that owns Cardone Capital, has created a real estate fund that pays cash flow distributions in Bitcoin. This is an incredibly innovative and novel approach.
Speaker 1:If you guys remember, I just released a podcast episode on April 8th where I talked about how now is a great time to get into the crypto space. Ironically, april 8th happened to be one of the very best days to buy crypto in the past year. If you look back one year at the crypto markets, when I did the broadcast on April 8th, bitcoin was down to $75,000 per coin and Ethereum was down to $1,500 per coin and eventually dropped down to $1,400 per coin. Since that time, there has been a huge pump in the crypto markets and Bitcoin is now up at $95,000 per coin and Ethereum is up to $1,800 per coin, so this has been a huge buying opportunity from April 8th all the way through the end of April. One of my investments has already done a 3x since April the 8th, so in a period of less than three weeks I've already received a 3x return. But let's talk a little bit about why I think Grant Cardone's approach to these real estate Bitcoin funds is so innovative and such an incredible opportunity that other operators will likely piggyback on.
Speaker 1:First of all, the minimum investment for Grant Cardone's Bitcoin funds is $250,000, and he's paying out monthly cash flow distributions. But again, the cash flow is coming to you in the form of Bitcoin. He's also buying large amounts of Bitcoin and getting a very good price on these purchases. So you're combining the stability of a real estate investment with the tremendous upside of Bitcoin, and everybody knows that the crypto market can be extremely volatile, but it also can pay huge returns, like the 3x return that I just received in an investment that I've only had for two weeks. This kind of gives you the best of both worlds. It gives you the long-term stability of real estate, but your cash flow distributions have that tremendous upside that you get only from the crypto market. So generally, a real estate syndication is looking to return somewhere between a 12% to 15% internal rate of return. With Grant Cardone's fund, you're able to get really good cash flow distributions, whether it's 5%, 6% or whatever the case may be but you're buying Bitcoin and as Bitcoin increases in value, your cash flow is increasing in value.
Speaker 1:So let's go over the three reasons why I think Grant Cardone's Bitcoin fund is so innovative. Number one stability meets growth. In a typical real estate syndication, you're expecting an internal rate of return of 12 to 15 percent. Typically, cash flow distributions are 5 to 6 percent. In this instance, you're getting that continual cash flow distribution, but in the form of Bitcoin, and as Bitcoin appreciates, your cash flow distributions increase in value. So you're essentially doubling your investment potential by investing in the real estate and then buying Bitcoin. Number two his fund offers tax advantages. Specifically, the fund is looking to return 100% of investor capital within two to three years, and this is going to be done through strategic debt placement and through potentially selling some of the Bitcoin, which could be a non-taxable event. Number three accessibility for high net worth individuals. This fund gives accredited investors exposure to the crypto market without having to experience all the volatility that typically goes along with it. So let's talk about replicating and expanding on this model.
Speaker 1:As you know, I'm a huge proponent of real estate investing and recently I've turned to the crypto market as an alternative investment that could have a tremendous amount of upside. I predict that real estate Bitcoin funds are going to be massive over the next few years, and I really commend Grant Cardone with his innovative approach to this fund. I'm not telling you to go invest in Grant Cardone's real estate Bitcoin fund. What I'm doing is trying to educate and share with you that this is an option today. This is something new that the world really has never seen before.
Speaker 1:I'm highly interested in this business model, but I'm not promoting this specific fund. I personally am interested in replicating this type of a model and unveiling this for my investors, because I do believe that there is a tremendous amount of potential upside in crypto. Right now, I'm getting into the game and I think you should as well. So that's it for this episode of Go Big with Gibb. I really appreciate you joining us today and I look forward to seeing you next time. Thank you for listening to this episode of Go Big with Gibb. If you haven't already, go follow us on social media at Gibb Irons, we'll see you next time.