Mogul Grant Cardone Is Excited About Tokenized Real Estate, But First, 'Get Me An Approval From The SEC So I Don't Go To Prison'

Real estate mogul Grant Cardone has cautiously welcomed the new trend of tokenized real estate. Cardone, also known as Uncle G, acknowledges how tokenization could broaden the real estate investment market for everyday investors, something he has been advocating for since he started his empire from scratch in the 1990s. 

But the current real estate market is vastly different from the one Cardone started in. Today, the industry still faces significant challenges such as supply issues and the housing crisis, which require innovative solutions. Despite innovations in the space, like 3D printing construction, housing supplies are still falling behind fast. For example, Apis Cor is using 3D printing technology to construct homes in a fraction of the time and cost compared to traditional methods. 

Despite being open to tokenized real estate, Cardone has reservations about the complexity of digital assets and blockchain technology, admitting that he isn't well-versed in this area.

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During a recent Twitter Spaces discussion led by social media marketing firm Wolf Financial, Cardone expressed interest in learning how to put his properties on the blockchain.

Tokenized real estate is a process that transforms the value of real estate into digital tokens stored on a blockchain. Each token represents ownership of all or part of a real property and offers a share of the profits and losses generated by that property. This method enables fractional real estate ownership, which allows a wider range of investors to invest directly in real estate of all kinds, including commercial, residential or trophy properties.

Cardone stated that blockchain technology facilitates quicker transactions at a lower cost and offers higher liquidity than traditional brick-and-mortar real estate investments. But he expressed concerns about regulatory structures, particularly the Securities and Exchange Commission (SEC). According to Cardone, real estate tokens are considered securities and are subject to disclosure and registration requirements, unlike physical real estate investments.

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Although he has concerns, Cardone believes tokenized real estate is what every private equity firm worldwide is eyeing as the future of the industry.

"Show me how to get a $100 million deal on the blockchain,” he said. “I'll buy the deal, throw it on the blockchain, and then get me an approval from the SEC so I don't go to prison.”

According to the 65-year-old real estate expert, baby boomers are more interested in spending their golden years traveling and relaxing than dealing with the responsibilities of property ownership. Younger generations are also shying away from ownership and wouldn't want the obligation even if they could buy. Tokenization is the perfect way for these groups to invest in real estate without the hassle of traditional ownership.

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