Cardone Sees Opportunity in Commercial Real Estate Correction with Bitcoin

Commercial real estate is facing a historic pricing correction, forcing institutional players to sell their properties at prices lower than the cost of replacement.

Grant Cardone, founder of Cardone Capital, believes that the industry is on the brink of an 'apocalyptic' situation due to five-year fully amortized loan costs, which amount to around 6.4% and restrict buyer payments after the Fed's interest rate hike.

Cardone is working on a $600 million deal where the price needs to be recalculated.

In six months, over a trillion dollars' worth of commercial real estate loans will mature, forcing lenders to divest from their property portfolios. Cardone Capital currently owns 16,000 residential units and nearly 50,000 square meters of office space.

Cardone's strategy is to use the difference between an asset's previous value and its sale price as a way to top up with Bitcoin, which he sees as a 'complementary' asset that works differently than physical real estate.