Investor and finance influencer Grant Cardone says buyers are focusing on the wrong part of the housing equation. Here are his 3 tips to navigate the market.
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- Real estate investor Grant Cardone thinks a lot of would-be buyers misunderstand the housing market.
- He says house hunters should rethink how they're assessing a potential purchase.
- The finance influencer shared his top tips for navigating the real estate market.
The real estate market may look daunting for buyers, but investor and finance influencer Grant Cardone says it doesn't have to be that way — and there are a few things people can do to have an easier time navigating the market.
As an investor, Cardone sees real estate as one of the best ways for people to get started building wealth, even as home prices remain high and mortgage rates are elevated.
He said the barrier to entry seems higher because of misconceptions people have about the market. Cardone shared his take on the current real estate market with Business Insider, laying out what he thinks aspiring home buyers commonly misunderstand and what he thinks they need to know about buying a house today.
His three top tips for breaking into the property market.
Don't believe you're priced out
Cardone said that a popular narrative is that many people are priced out of the real estate market, from the perspective of both home prices and mortgage rates. He thinks the mindset can be self-defeating for buyers.
"If you go and if you go and believe in that, then you'll never find it," he said. "You're going with the wrong attitude. So you haven't been priced out."
Focus on creative financing, not lower prices
It's tempting to browse the inventory of homes for sale with a focus on the lowest price tag, but Cardone thinks that's a losing strategy. As he sees it, aspiring home buyers should prioritize creative financing options over price.
In his view, there are two types of homes young people should focus on: properties with mortgages already paid off and those with low-interest mortgages. In both cases, the sellers may be open to creative financing options.
Don't buy the best house, buy the best location
Cardone's final tip evokes an age-old real estate adage that emphasizes location. Like many industry veterans, he thinks that buying the worst house in the best location is better than buying the best house in a less desirable neighborhood.
Cardone puts a numerical value on the importance of location in real estate investing.
"It matters 10x more," he told Business Insider. "I bought maybe $6 billion worth of real estate in my career, and anytime I compromise the location, it will cost me later."
He advises aspiring home buyers to prioritize purchasing a home in an area with high discretionary income, and with well-known chains and businesses like Whole Foods, Starbucks, and Chipotle.