G
rant Cardone, founder and CEO of Cardone Capital, is launching a new investment vehicle that combines real estate and bitcoin. The firm manages around $5 billion in real estate assets and has introduced a fund that invests property-generated cash flow into the cryptocurrency. According to Cardone, this model is unprecedented in scale and has garnered an enthusiastic response from investors.

    The pilot project involves buying an apartment complex on Florida's Space Coast for $72 million, with an additional $15 million invested in bitcoin. The cash flow generated by the property will be dollar-cost averaged into bitcoin every month for four years or until the fund's asset ratio shifts to 70% real estate and 30% bitcoin.

    Cardone projects that if bitcoin reaches $158,000 within a year, the entire fund will grow by 25% in value. If it hits $251,000 in two years, the growth rate increases to 61%. He aims to roll out 10 more such projects before June, investing a total of $1 billion.

    Cardone's ambition is to create a bitcoin reserve worth hundreds of millions of dollars through real estate cash flow. He has been buying real estate for 30 years and manages 15,000 units across 18,400 investors. The firm distributes $80 million in dividends annually and has paid all its deals in cash over the past six months.

    Cardone credits MicroStrategy co-founder Michael Saylor with suggesting the model to him. One of the advantages of this fund is that it allows Cardone Capital to raise capital faster than traditional real estate investments. He plans to issue corporate bonds and use combined mortgages against the projects, which he believes will become a standard practice in the industry.

    Cardone also plans to buy bitcoin in a price-agnostic way, without focusing on buying dips or using spot ETFs. However, he has concerns about the growing frenzy surrounding cryptocurrencies and advises younger investors to approach them with caution.