America Will Become a Renter Nation: Grant Cardone’s Warning and How to Invest in Real Estate Without a Mortgage

In a landscape where home prices continue to soar and interest rates remain elevated, the American dream of homeownership is increasingly slipping out of reach for many. Real estate mogul Grant Cardone recently shared his insights on this evolving market during an interview on VladTV, predicting that the combination of high mortgage rates and rising rental prices will lead to a significant shift in how Americans approach housing. Cardone’s assertion that "America will become a renter nation" raises important questions for potential investors looking to navigate this changing environment.

The Current Housing Market Landscape

As of mid-2024, mortgage rates hover just under 7%, the highest they have been since 2001. This financial strain is palpable for many prospective homebuyers, who find themselves squeezed by both high prices and the cost of borrowing. Cardone has long warned that the future of housing may not involve ownership at all. He envisions a world where renting extends beyond homes to include cars and even clothing.

In this context, investing in real estate remains a viable option for those looking to hedge against inflation, generate passive income, and diversify their portfolios. Fortunately, there are several strategies to invest in real estate without the burden of an expensive mortgage.

1. Invest Using Crowdfunding Platforms

Crowdfunding has emerged as a popular method for individuals to invest in real estate without the need for significant capital or the responsibilities of property management. These platforms allow investors to pool their resources to fund various real estate projects, from residential properties to commercial buildings.

One notable platform is Arrived, which enables users to invest in shares of rental homes and vacation properties. With a low minimum investment, you can browse a curated selection of professionally vetted homes. Once you find a property that interests you, you can purchase shares and receive quarterly deposits from the rental income generated by your investment. This approach democratizes real estate investing, making it accessible to a broader audience.

2. Invest in Real Estate Investment Trusts (REITs)

Real Estate Investment Trusts (REITs) offer another avenue for investors to profit from real estate without the need to buy physical properties. REITs are companies that own and manage income-producing real estate, such as apartment complexes, shopping centers, and office buildings. They operate like large landlords, collecting rent from tenants and distributing a portion of that income to shareholders in the form of dividends.

Platforms like Fundrise provide everyday investors with access to a diverse portfolio of private real estate investments through exclusive REITs. With investments starting as low as $10, Fundrise allows you to tap into the consistent income-generating potential of real estate while enjoying the benefits of quarterly dividends. This option is particularly appealing for those looking to invest in real estate without the complexities of direct property ownership.

3. Explore Commercial Real Estate

For accredited investors seeking more substantial opportunities, commercial real estate presents a compelling option. This sector includes properties that cater to essential consumer needs, such as grocery stores and healthcare facilities, which tend to provide stable cash flow even during economic downturns.

First National Realty Partners is one platform that specializes in grocery-anchored commercial real estate. By investing through their platform, you gain access to institutional-quality properties leased by national brands. The management team handles all aspects of the investment lifecycle, allowing you to focus on your financial goals. By filling out a simple profile, you can start earning quarterly deposits from your investments in necessity-based real estate.

Conclusion

As Grant Cardone warns of a future where renting becomes the norm, the landscape of real estate investment is evolving. While traditional homeownership may become less attainable for many, innovative investment strategies such as crowdfunding, REITs, and commercial real estate offer viable alternatives. These methods allow investors to participate in the real estate market without the burden of high mortgages or property management responsibilities.

In this shifting environment, it is essential to stay informed and explore diverse investment opportunities that align with your financial goals. Whether you are a seasoned investor or just starting, the real estate market still holds potential for those willing to adapt to its changing dynamics.

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.