Grant Cardone: A home is a ‘terrible investment’ since it ‘ain’t your house.’ How to tap real estate without a mortgage

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Grant Cardone speaks into a microphone on a stage drenched in red light.

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Given how much real estate prices have soared in America, many homeowners may be feeling richer than ever. But real estate mogul Grant Cardone says your house isn’t a smart investment — far from it.

In a January interview with podcaster Sean Kelly, Cardone said, “a house is not something that people should be buying. They should rent (1).”

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That may seem ironic coming from someone known for investing in residential real estate. But it’s not the first time Cardone has tackled this issue, saying in a separate video on TikTok that buying a home “is a terrible investment (2).”

He was quick to explain why: “[A home] doesn’t [give] cash flow. You don’t get big tax write-offs because of it. You have no leverage. You’re living in it. You’re paying for it. You never own it. Even when the loan is paid, you don’t own it. You still got to pay property taxes, still got to insure, still got to maintain it.”

When you buy a home to live in, it’s true that it won’t necessarily generate any cash flow. And even once the mortgage is paid off, there are still ongoing costs: property taxes, insurance premiums, repairs and maintenance. And they can add up fast.

The median monthly ownership costs for U.S. homeowners with a mortgage increased by around 4% from 2024 to 2025, based on data from the U.S. Census Bureau (3). In a related press release, census data revealed that homeowners with a mortgage are spending more than 20% of their income on additional homeownership costs.

Cardone suggests a simple reason that these costs are ignored, alongside the downsides of homeownership.

“People get emotional about their house — ‘It’s my house!’” he said. “It ain’t your house. You’re a partner in this house with the state.”

‘Never buy a house’

Cardone’s suggestion is simple: “Never buy a house, rent where you live.”

But that doesn’t mean he’s against real estate entirely.

“I’m not saying ‘don’t own real estate,’” he clarified. “I’m saying live in a house and pay rent. Take all the money that you would have spent on that house and invest in real estate that [has] cash flows — that pays you every month.”

At its core, this is common investing advice. Many advisors and gurus recommend taking any money you save, whether that’s from Dave Ramsey’s “beans and rice” approach or shopping around for insurance, then investing the difference.

So, when it comes to Cardone, what kind of real estate is he talking about?

Read More: Approaching retirement with no savings? Don’t panic, you’re not alone. Here are 6 easy ways you can catch up (and fast)

Invest in real estate — without the mortgage

Cardone listed several options: “Could be retail, storage, apartment buildings like we invest in. Could be land — if you’re a farmer or rancher and you know how to get cows to cash flow, then do that.”

One way to tap into this market is by investing in shares of vacation homes or rental properties through Arrived.

Backed by world-class investors, including Jeff Bezos, Arrived allows you to invest in shares of vacation and rental properties, potentially tapping into a passive income stream without all the extra work of being a landlord. So, no midnight maintenance calls about burst pipes, clogged extractor fans or creaky cupboards. That means you’re not only profiting off the property, but cutting down on maintenance costs, too.

To get started, all you have to do is sign up with your email to begin browsing a selection of pre-vetted properties, each hand-picked for their income-generating potential, not to mention any long-term appreciation in value. Once you choose a property, you can start investing with as little as $100, potentially earning quarterly dividends.

Leverage multifamily investment opportunities

Another way to tap into real estate? Through multifamily investment properties.

In a video posted to TikTok, Cardone says, “You should start with 32 units. That is the perfect number.” He says the beauty of this approach is that if one unit is vacant, your investment is spread enough that you won’t be as impacted (4).

“You should look for a property where the rents are $1,000 but they should be $1,200.” He added, “It’s probably 1970, 1980 built. Guy’s probably owned it for 10 or 15 years. He didn’t raise the rent because he [didn’t] need to.”

Cardone’s suggestion? “You raise them to $1,200, you’ll make $1,200,000 on that deal.”

If diversifying into multifamily rentals appeals to you, you could consider investing with Lightstone DIRECT, a new investing platform from the Lightstone Group, one of the largest private real estate companies in the country with over 25,000 multifamily units in its portfolio.

Since they eliminate intermediaries — brokers and crowdfunding middlemen — accredited investors with a minimum investment of $100,000 can gain direct access to institutional-quality multifamily opportunities. This streamlined model can help reduce fees while enhancing transparency and control.

And with Lightstone DIRECT, you invest in single-asset multifamily deals alongside Lightstone — a true partner — as Lightstone puts at least 20% of its own capital into every offering. All of Lightstone’s investment opportunities undergo a rigorous, multistage review before being approved by Lightstone’s Principals, including Founder David Lichtenstein.

How it works is simple: Just sign up with your email, and you can schedule a call with a capital formation expert to assess your investment opportunities. From here, all you have to do is verify your details to begin investing.

Founded in 1986, Lightstone has a proven track record of delivering strong risk-adjusted returns across market cycles with a 27.5% historical net IRR and 2.49x historical net equity multiple on realized investments since 2004. All told, Lightstone has $12 billion in assets under management — including in industrial and commercial real estate.

As such, even if multifamily rentals don’t appeal to you, Lightstone could still serve you well as an investment vehicle for other real estate verticals.

Get started today with Lightstone DIRECT and invest alongside experienced professionals with skin in the game.

Apartment investing

Another type of real estate Cardone suggests? Apartments — a sector he’s heavily invested in himself.

Apartments tend to be resilient during economic shifts. No matter what’s happening in the broader economy, people still need a place to live. And with elevated home prices making ownership less accessible for many Americans, more people are turning to renting — which helps drive demand and keep occupancy rates high.

Access fractional shares in real estate

As with retail, real estate investment platforms and REITs have made it easier than ever for everyday investors to access the apartment market.

Take Fundrise, for example. The platform manages more than $2.87 billion in equity on behalf of over 385,000 individual investors. Its holdings span single-family rentals, multifamily properties and industrial buildings across the U.S.

Getting started is simple. After providing some basic details about your financial background and investment preferences, Fundrise will recommend a portfolio tailored to your goals. You don’t need to be an accredited investor — and you can get started with as little as $10.

Farmland

Cardone also mentioned agricultural land as an investment opportunity — though, he has a caveat: It’s best suited for those who understand how to generate cash flow.

While farmland isn’t as commonly discussed as retail or apartment buildings, it can be a compelling long-term investment. The logic is simple: Come what may, people still need to eat.

That consistent demand makes farmland a resilient asset — often serving as a hedge during times of economic uncertainty.

According to the U.S. Department of Agriculture, U.S. farmland values have steadily climbed over the past few decades, driven by increasing demand for food and limited supply of arable land. In 2025, the value of U.S. farmland averaged $4,350 per acre, an increase of 4.3% over 2024 values, or 1.9% when adjusted for inflation (6).

While those growth figures aren’t necessarily huge, farmland has a unique investment feature that’s worth noting. The fact is, there’s only so much land to go around. And as farmland continues to become more scarce, the asset class could act as a natural inflation hedge, based on the value of the underlying asset.

Consider diversifying with agricultural land

While that might not seem like a huge growth opportunity, farmland is an investment that could prove to be more resilient over the long term.

Getting exposure to this space is easier than you might think. Publicly traded REITs like Gladstone Land (LAND) and Farmland Partners (FPI) allow investors to participate in the sector without owning or managing farmland directly.

But if you are looking for options outside the stock market, FarmTogether is an all-in-one investment platform that lets qualified investors buy stakes in U.S. farmland. The platform identifies high-potential agricultural properties and then partners with experienced local operators to manage the land effectively.

Depending on the type of stake you want, you can get a cut from both the leasing fees and crop sales, providing you with a cash income. Then, years down the line, after the farm rises in value, you can benefit from the appreciation of the land and profits from its sale.

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