Real estate investor Grant Cardone has expanded his multifamily housing fund strategy. He now offers a hybrid approach that combines commercial properties with Bitcoin (BTC) allocations. The company launched its fifth commercial multifamily investment property fund, integrating $100 million in Bitcoin into a 366-unit multifamily housing complex, acquired for $235 million.
Cardone explained to Cointelegraph that this combination offers the best of both worlds. The low volatility, tax benefits, and income generation of real estate are combined with Bitcoin’s high volatility. This strategy allows for channeling rental income into more BTC purchases. The goal is to take this vehicle public and turn it into shares, creating a publicly traded company.
Can Hybrid Real Estate and Bitcoin Funds Protect Investors?
The Boca Raton property will generate $10 million annually in net operating income, according to Cardone. This will be used to acquire more Bitcoin. This combination could revolutionize REITs (Real Estate Investment Trusts). REITs are portfolios of physical properties listed on stock exchanges that offer passive exposure to real estate.
On the other hand, Cardone criticized most crypto treasury companies. He stated that they lack an operating business that generates cash flow to finance new digital asset purchases. This makes them vulnerable to market downturns. According to Cardone, real estate is the best “treasury company” due to its essential nature.
The lack of operating businesses is one reason why Breed, a venture capital firm, predicts that only a few treasury companies will survive. In September, many of these firms experienced a sharp drop in their multiple on net asset value (mNAV). When mNAV falls, access to financing dries up, which can force the sale of cryptocurrencies. Cardone’s strategy, with its hybrid real estate and Bitcoin funds, seeks to mitigate this risk.
