Real estate investor Grant Cardone Cardone Capital is challenging the status quo real estate investment trust (REIT) Bitcoin is being integrated directly into the multi-family sector. The use of Bitcoin in multifamily transactions is growing. roughly $5 billion Cardone says that with 15,000 real estate units under his management, a hybrid strategy can provide superior returns and attract new Bitcoin investors.
Recently, a reporter spoke with a woman who said that she had recently been interviewed. at Consensus 2026Cardone outlined his plan to disrupt the Realestate Investment Trust (REIT) sector. REITs are companies who own, finance, or operate income-producing properties. In 1960 they were created under US law and are required to distribute 90% of their income in dividends. Investors can benefit from liquidity, yields, without having direct ownership. According to Cardone, publicly traded REITs and the broader industry control over $4.3–4.5 trillion in U.S. real estate assets.
Cardone discussed a major structural constraint in his Consensus Miami appearance. Traditional REITs such as Camden, AvalonBay and others. “can never ever hold Bitcoin on their balance sheet.” The limitations he refers to are based on the 1960s rules that focused on income and real estate. “glitch” A competitive market opening.
Cardone’s Bitcoin Origin & Hybrid Strategy
Cardone’s first encounter with Bitcoin was when he got paid 115 BTC in Las Vegas for a public speaking engagement. This is still the amount he holds. Cardone Capital has evolved his hybrid model from this. Rather than tokenizing real estate on the blockchain, the firm acquires institutional-quality, cash-flow-positive multifamily properties at significant discounts and pairs them with Bitcoin inside a dedicated LLC.
Cardone Capital bought a property with 366 units at 101 Via Mizner in Boca Raton Blackstone’s lender agreed to pay $235 million cash for the property. This property was described as irreplaceable, valued at $400 million, and combined with $100 million of Bitcoin to create a $335 million investment.
The cost of building an equivalent property in the present day is called replacement costs. Cardone targets assets that are trading at significant discounts from this benchmark. Rather than simply capture the real estate discounts, the company allocates Bitcoins. “stuff it into the discount gap” Increase the total cost basis. Cardone claims that this tax structure was used in the Boca transaction, which resulted in a write-off of $50 million.
This type of commercial real estate should have a stable cash flow. Cardone suggests the Boca property is expected to return 4% per year, alongside depreciation benefits, and periodic refinancing opportunities every 7–10 years. Bitcoin has upside potential as well as liquidity. He said, “We believe by combining real estate and Bitcoin and having time… I’ll end up with somewhere between a 22 and a 32% return on an asset class that has been boring, consistent, and ancient.” This type of investment is usually a multi-decade endeavor, which gives Bitcoin ample time to overcome its volatility.
This vehicle allows new investors to be exposed to Bitcoin through a novel and risk-controlled way. Cardone claims that 80% of the investors in Boca had no prior Bitcoin exposure. This aligns with Cardone’s goals. “onboarding people into Bitcoin that have had zero exposure.”
The real estate industry is a complex one, with many known risks and tradeoffs, such as the long holding periods of institutional property, or scaling up retail participation through crowdfunding. Cardone said he had completed roadshows with banks, but preferred direct-to consumer raises that leveraged his audience.
The Disruption Potential
Cardone has accumulated real estate worth around $1 billion, according to Cardone. 2,000 reported BitcoinSix contracts are under contract. He aims to disrupt the REIT sector, noting that even capturing 5–10% of the market could create significant value. His plans include the potential listing of a hybrid structure on the stock exchange, using his approximately 20 million followers online, and about 20,000 existing investors.
It builds upon the previous approach. Cardone Capital’s earlier Bitcoin activityThis includes purchases made during market declines, and cash-flow-backed accumulating.
Cardone sees the current climate as “the greatest time in the history of the world to make money,” Bitcoin is a potential beneficiary. “People gotta live someplace. You cannot live in your Bitcoin account,” He said that real assets are needed alongside digital assets.
This hybrid model could potentially increase the access to and return for investors. Future developments are dependent on the market cycle, execution and any regulatory issues.
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Source: bitcoinmagazine.com
