Real estate investor Grant Cardone says he is aggressively buying Bitcoin (CRYPTO: BTC) and believes pairing the asset with income-producing real estate could disrupt the $4 trillion real estate investment trust industry.
Bitcoin-Real Estate Hybrid
In an interview with Scott Melker on June 21, Cardone said traditional real estate investment trusts are structurally flawed because they are required to distribute most of their income.
"It’s a broken model," Cardone said, referring to the REIT structure created in 1965. "They can’t keep currency on their balance sheet. They have no money for capex."
Cardone said real estate assets do not die during downturns, but ownership often changes when operators run out of liquidity.
