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Real estate investor Grant Cardone believes that his Bitcoin real estate hybrid model will crush REITs, and he laid out why in a recent X post. Cardone’s analysis depicts REITs as the old guard that hasn’t kept up with present opportunities.
The shortcomings of REITs and Cardone’s ability to push the envelope with his firm reveal several ways that you can get ahead of your competition and disrupt them entirely.
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Cardone meticulously studied REITs before squaring off against them. He started by making a list of his competitors, listing what they cannot do, and then doing those things. Doing what your competitors can’t do will automatically differentiate you from them, but retaining customers comes down to providing value.
Cardone’s hybrid system involves buying real estate and reinvesting a portion of cash flow into crypto. That way, Cardone Capital ends up with significant real estate and crypto holdings in the long run. It’s similar to the model Strategy (NASDAQ:MSTR) CEO Michael Saylor uses, but instead of issuing new shares, Cardone uses debt to buy more real estate so he has more cash flow, which he then uses to buy Bitcoin.
Cardone aims to have crypto represent 15% to 50% of the fund’s total assets, according to Cardone Capital’s website. Furthermore, he is only buying Bitcoin instead of dabbling in altcoins. REITs are not allowed to buy crypto, which helps Cardone stand out from the competition.
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Cardone also said that REITs rely on institutional money and won’t use social media. Some investors have used social media to attract much larger audiences than they could get on their own. Cardone regularly posts on various social networks, and all of that engagement translates into higher demand for Cardone Capital.
“[REITs are] very slow to change,” Cardone said in his X post.
Failing to keep up with the competition and changing consumer behaviors can result in established companies falling apart. Eastman Kodak (NYSE:KODK) may be the most famous example of this trend. The camera and film maker was around for more than 100 years before smartphones became mainstream. Rather than adapt, Kodak watched as smartphones gobbled up all of its market share.
Read More: Grant Cardone Lays Out Why His Bitcoin Real Estate Hybrid Model Will Crush


