'America will become a renter nation': Grant Cardone warns the US could see 100-year mortgages. How to buy real estate without going deep into debt

Moneywise
'America will become a renter nation': Grant Cardone warns the US could see 100-year mortgages. How to buy real estate without going deep into debt
'America will become a renter nation': Grant Cardone warns the US could see 100-year mortgages. How to buy real estate without going deep into debt

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With elevated interest rates and persistently high home prices, American homebuyers have felt firsthand the squeeze on their budgets.

According to real estate mogul Grant Cardone, the necessity for substantially longer mortgage terms is on the horizon.

“The savior of America will not be lower prices, it will be longer mortgages,” he said in a TikTok video.

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Looking ahead, Cardone anticipates a significant shift in lifestyle and consumption patterns. He sees a future where renting becomes the norm across various aspects of life.

“America will become a renter nation,” he predicted. “You will rent your cars, you will rent where you live, you might even rent your clothes in the future.”

But what if you're still keen on investing in real estate, considering its reputation as a hedge against inflation, a source of passive income and a way to diversify your portfolio?

Despite the current economic challenges, there are indeed strategies to invest in real estate that don't involve taking on substantial debt. Here’s a look at three of them.

Invest in necessity-based real estate

Necessity-based real estate — which addresses basic consumer needs like grocery stores and healthcare facilities — is known to provide consistent cash flow, even during times of economic uncertainty.

With First National Realty Partners* investing platform, investors have access to institutional-quality, grocery-anchored commercial real estate properties leased by national brands.

Their team of experts manages every component of the investment life cycle. All you have to do to get started is fill in some information about yourself, your income and investment goals, and you can start earning extra cash through the real estate market without becoming a landlord or buying a home.*

Read more: This Pennsylvania trio bought a $100K abandoned school and turned it into a 31-unit apartment building — how to invest in real estate without all the heavy lifting

Invest using crowdfunding platforms

Crowdfunding has become a buzzword in recent years. It refers to the practice of funding a project by raising small amounts of money from many people.

Many crowdfunding investing platforms allow you to own a percentage of physical real estate — from rental properties and commercial buildings to parcels of land. These platforms make real estate investing more accessible to the general public by simplifying the process and lowering the barriers to entry.

For example, with Arrived,* you can invest in shares of rental homes and vacation rentals without taking on the responsibilities of property management.

You can browse their curated, professionally vetted selection of homes, and when you find a property you like, choose the number of shares you want to buy. Once you’ve signed off on it, you’ll begin receiving quarterly deposits from your property’s rental income.*

Invest in publicly traded REITs

Real estate investment trusts, or REITs, are companies that own income-producing real estate like apartment buildings, shopping centers and office towers.

You can think of a REIT as a giant landlord: It owns a large number of properties, collects rent from tenants, and passes that rent to shareholders in the form of regular dividend payments.

To qualify as a REIT, a company must pay out at least 90% of its taxable income to shareholders as dividends each year. In exchange, REITs pay little to no income tax at the corporate level.

It’s easy to invest in REITs because many are publicly traded.

Unlike buying a house — where transactions can take weeks and even months to close — you can buy or sell shares in a REIT anytime you want throughout the trading day. That makes them one of the most liquid real estate investment options available.

Both accredited and non-accredited investors can check out RealtyMogul*, which offers an Income REIT and a Growth REIT that have paid a combined $44.5 million in distributions.

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

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