Cardone Warns of Commercial Real Estate Crash, Sees Bitcoin as Key

Grant Cardone, founder of Cardone Capital, is sounding the alarm on commercial real estate, warning that it's headed for a 'historic crash' due to rising borrowing costs. Cardone claims that five-year all-in borrowing costs are now around 6.4%, capping what any buyer can pay and forcing existing owners to sell below replacement cost.

He notes that a trillion dollars of commercial loans matured within six months, putting institutions holding them in a difficult position as they must unwind much of their property holdings.

To mitigate this risk, Cardone has been adding Bitcoin (BTC) to the balance sheet of every building he buys, calling it a 'complementary asset' that adds liquidity and avoids operational burdens.

Cardone's firm currently holds 3,000 BTC and targets 25,000 coins alongside 25,000 apartments. He believes this strategy is safe from imitation due to structural constraints on real estate investment trusts (REITs), which must distribute 90% of income to shareholders and cannot hold currency on the balance sheet.