Real estate tycoon Grant Cardone has unveiled an innovative investment venture combining cryptocurrency and property on Florida's Space Coast. The $102.5 million fund marks what Cardone calls the "first ever" bitcoin real estate fund, aiming to blend stable property returns with cryptocurrency growth potential.
The fund's structure allocates $87.5 million toward acquiring 300 residential units along Florida's Space Coast, while dedicating $15 million to bitcoin purchases. Over 48 months, the properties' cash flow will fund an additional $14 million in bitcoin acquisitions.
"I make the purchase with my money, and I pay cash for the real estate and the bitcoin at purchase," Cardone explained. "This takes the volatility out of the bitcoin, because the real estate is cash-flowing every month."
The Space Coast location, encompassing areas like Cocoa Beach, Melbourne, and Cape Canaveral, was strategically chosen due to its growing aerospace presence. The region hosts both Elon Musk's SpaceX and Jeff Bezos' Blue Origin facilities, driving economic growth and property demand.
"In one of our apartment buildings, where the average rent is $1,859 a month, you can watch rockets from your patio," Cardone noted, highlighting the area's unique appeal.
The fund requires accredited investors to commit a minimum of $250,000. After the 48-month period, investors will retain ownership of both the real estate and original bitcoin investment while receiving their initial capital back through bitcoin liquidation.
Cardone's personal experience with cryptocurrency dates back to 2013 when he received 100 bitcoin, worth $500 at the time, for a speaking engagement. That same bitcoin is now valued at approximately $10 million.
Local real estate professionals view the fund's launch positively. "This fund could attract further investment, elevating the local market's profile and opening doors for broader financial innovation," said Martha Melendez, a real estate agent with The FIG Team at eXp Realty in Brevard County.
Industry experts suggest the fund represents a broader trend of cryptocurrency integration into traditional real estate investments. However, while traditional real estate investors may welcome the cryptocurrency exposure, dedicated crypto enthusiasts might prefer direct bitcoin property purchases or crypto mortgages.
Cardone remains optimistic about bitcoin's future, suggesting potential values of $250,000 this year. He emphasizes the fund's security, stating, "Real estate has been stable for thousands of years. No matter what the bitcoin does, we have the base of the real estate."
The fund currently limits participation to accredited investors, though Cardone advocates for broader accessibility, expressing his desire to make such investment opportunities available to non-accredited investors in the future.