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Is Grant Cardone Out Of Touch? $300 Real Estate Investment Advice For Teens Sparks Debate

Is Grant Cardone Out Of Touch? $300 Real Estate Investment Advice For Teens Sparks Debate

Grant Cardone — a prominent figure in real estate investment, New York Times bestselling author, and founder and CEO of Cardone Capital, a $5 billion investment firm — recently stirred up controversy with advice aimed at teens.

On his podcast, Cardone suggests that kids should start investing in real estate early.

“Every 15-year-old kid should be doing this right now,” Cardone begins. “If you’re getting an allowance of $300 bucks a month, buy a piece of real estate that pays you $30 bucks a month. Only use the $30, don’t touch the $300.”

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His interviewer poses a question many are probably thinking: How would a young, normal person (someone not born into wealth) get that kind of money?

“Allowance, side jobs, side hustles,” Cardon says. “I was 14 years old — I was working every weekend. I was mowing lawns, doing whatever I could to get some extra money.”

Many viewers on social media have balked at and ridiculed the investment mogul’s idea, making statements like “Is it even legal for a 15-year-old to buy real estate?” and “Rich people are so out of touch.”

Now, Cardone wasn’t raised wealthy. He grew up in a single-parent home with four other siblings from age 10, and he has publicly spoken about his tough upbringing ↗.

However, his experience does not represent the challenges most teens face today. And he didn’t make his self-proclaimed fortune until he was 30.

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According to a recent study from Kids’ Money, most teens only save between $548 and $720 per year. It also states that only 22% of teens understand how to invest money.

That being said, if the teens who can make and save $300 per month want to turn around and invest it into real estate, what opportunities do they realistically have to do so?

Real estate costs vary drastically across locations, but $300 isn’t typically enough to make a significant investment in most real estate markets, especially after factoring in maintenance, property taxes, and other expenses associated with property ownership.

The average monthly mortgage in the U.S. is currently $2,200, a far cry from the $300 Cardone suggests teens start investing.

While buying a property for $300 per month is unrealistic for teens, there are other ways to get started in real estate investing.

One option is to invest directly through Real Estate Investment Trusts (REITs), which allow investors to purchase shares in portfolios of real estate assets.

Another option would be investing in real estate through a crowdfunding site like Fundrise or Crowdstreet.

With these options, teens could invest smaller amounts of money — like the amount Cardone suggests in his tiktok video ↗, even if he did say to “buy a piece of real estate.”

What do you think?

Is Grant Cardone out of touch for suggesting that kids save and invest $300 into real estate every month? Or is there merit behind encouraging young people to invest early?

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This article Is Grant Cardone Out Of Touch? $300 Real Estate Investment Advice For Teens Sparks Debate ↗ originally appeared on Benzinga.com ↗

© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

James Mackreides
James Mackreides
'Mac' is a short tempered former helicopter pilot , now a writer based in Sofia, Bulgaria. Loves dogs, the outdoors and staying far away from the ocean.

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