After American entrepreneur Grant Cardone listed his 10,000-square-foot Florida beach house for $42 million, he explained that he would rather own more Bitcoin (BTC) or multifamily properties than be invested in a single location.
The house at 605 Ocean Blvd in Golden Beach Florida, has seven bedrooms, 12 bathrooms, a pool and many other amenities. Cardone paid $24 million for the home in 2021.
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“We bought the house believing we had a vision for it that would improve the value for the next owner. Elena and did major rehab on the exterior, taking this one-of-a-kind beach house to another level by improving the 100+ feet of private beach,” Cardone posted on X. “There are only 65 lots on the ocean in Golden Beach and one-third of them are being torn down. This is just the beginning and this is becoming one of the most sought-out communities in ALL of Miami and the ONLY one with ocean and private beach access. “I thought this would be the perfect time to take the proceeds to invest in BTC or buy some more multifamily.”
Cardone bought the property in 2021 to make renovations and flip it. He noted that demand for properties in the neighborhood has skyrocketed. These factors combine to create the $42 million listing price. If Cardone were to sell the property for that amount, it would represent a total gain of 75% or a compound annual growth rate (CAGR) of around 20%.
BTC is up nearly 100% since June 2021, and many analysts believe that the upcoming halving could send the price even higher. Not only has Bitcoin outperformed Cardone’s beachfront property, but there is also an argument that it could continue to outperform in the future.
Multifamily properties are generally seen as safer investments than single-family homes because more cash flow is generated and the properties increase in value as real estate appreciates.
Cardone already owns a solid amount of Bitcoin. He received the token as payment when it was worth around $500, but the price has appreciated such that the investment could be worth as much as $14 million.
It’s possible Cardone will use the proceeds from the sale of the house to buy at least some Bitcoin. The real questions are how much he would buy, and how much profit he could potentially make.
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This article Grant Cardone Sells Beachfront Mansion To Own More Bitcoin: Smart Move Or Big Mistake? originally appeared on Benzinga.com
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