Directing 22-32% Returns By Combining Real Estate Cash Flows With BTC Holdings

Real estate investor Grant Cardone is positioning his Cardone Capital to challenge the traditional real estate investment trust (REIT) sector by integrating Bitcoin directly into large multifamily deals. With nearly $5 billion in assets under management of nearly 15,000 units, Cardone says a combined approach can deliver higher returns while onboarding new investors to Bitcoin.

In a recent interview at Consensus 2026, Cardone laid out his strategy for disrupting the multi-billion dollar Realestate Investment Trust sector, also known as REITs, companies that own, operate, or finance income-producing real estate. Established under US law in 1960, they must distribute at least 90% of taxable income as dividends to shareholders, providing investors with capital and profits without direct property ownership. According to Cardone, publicly traded REITs and the broader sector control more than $4.3–4.5 trillion in US real estate.

Cardone highlighted an important structural limitation during the emergence of Consensus Miami 2026: traditional REITs like Camden, AvalonBay, and others “will never hold Bitcoin on their balance sheet.” This restriction, based on 1960s-era industry regulations that focus on sales and revenue, creates what he calls a “glitch” in the market, an opening to competition.

Cardone’s Bitcoin Origin and Hybrid Strategy
Cardone first encountered Bitcoin when he was paid 115 BTC for a speaking engagement in Las Vegas, which he still holds. He has since evolved this into a hybrid model at Cardone Capital. Rather than tokenizing real estate on the blockchain, the company acquires institutional-grade, cash-flow multifamily properties at huge discounts and pairs them with Bitcoin within a dedicated LLC.

In another prominent example, Cardone Capital purchased a 366-unit property at 101 Via Mizner in Boca Raton from a Blackstone-related lender for $235 million. The property, described as irreplaceable and worth approximately $400 million in replacement costs, was combined with approximately $100 million worth of Bitcoin, creating an investment vehicle of ~$335 million.

Replacement cost refers to the cost of building the same building today. Cardone directs commodities trading at large discounts to the benchmark. Instead of simply holding the real estate discount, the company allocates Bitcoin to “fill in the discount space” and move the property’s cost basis up. In the Boca deal, Cardone says the building generated a $50 million tax write-off.

Real estate of this type should provide stable cash flow. Cardone suggests that Boca’s property is expected to return 4% per year, plus depreciation benefits, and the possibility of refinancing periodically every 7-10 years. Bitcoin adds flexibility and liquidity. He said, “We believe by combining real estate and Bitcoin and having time… I’ll end up with a profit of between 22 and 32% in an asset class that was boring, static, and old.” The investment horizon for real estate of this type is often decades, a long-term mindset that gives Bitcoin plenty of time to grow past its short-term volatility.

In turn, this vehicle exposes new investors to Bitcoin in a risk-controlled and innovative way. According to Cardone, about 80% of the Boca fund’s investors have reportedly never been exposed to Bitcoin, which is consistent with Cardone’s goal of “getting people into Bitcoin who have no exposure at all.”

Real estate is, of course, a complex business with well-known trade-offs such as the long-term nature of institutional real estate and the risks involved in increasing retail participation through crowdfunding. Cardone says he’s done with street shows and banks but prefers to go directly to the consumer to increase his audience.

Potential disruption
Cardone says he has raised about $1 billion in real estate and about 2,000 reported Bitcoin, raised over the past 17 months, with six contract deals. He aims to disrupt the REIT sector, noting that even holding 5-10% of the market can create significant value. Plans include a possible public listing of the hybrid property, relying on his nearly 20 million online followers, and about 20,000 current investors.

This approach builds on Cardone Capital’s previous Bitcoin work, which includes buying during market dips and accumulation based on cash flows.

Cardone considers the current environment “the greatest time in the history of the world to make money,” with Bitcoin as a beneficiary. “People have to live somewhere. You can’t live in your Bitcoin account,” emphasizing the constant need for real assets alongside the digital.

This hybrid model represents one prominent attempt to combine traditional real estate with Bitcoin treasury strategies, potentially increasing access and returns for investors. Other improvements will depend on usage, market cycles, and regulatory considerations for those properties.