Grant Cardone wants to bash single family because he syndicates large apartment complexes (apparently cashes out most of his money post close, see other BP posts on this)
And then like this thread mentions give you probably 5-6 percent on your money, while charging management fees, closing fees, selling fees etc.
Is that better than say owning 10 single family rentals? I’m not sure it is. Everyone touts the passivity of it but you also have zero control. I spend probably 3-5 hours a month on my single family rentals (combined). And I have total control.
In a perfect world you should do both and if you want to be in a syndication, I’d recommend one where you earn more like 8-10 percent instead of 6.
End rant. P.S he’s still wildly entertaining
Why are you now focusing on larger commercial deals? Because you likely find it scales better, right? I think that's basically what GC is saying, in not so nice terms. The only difference is you think the path required that you started with small single family homes and he is saying that step is not necessary.
Grant started with houses. I started with a couple mobile homes. Then to houses. Then to apts. It's like me having a massive following and bashing mobiles, where I started.
The mobiles were great %-wise and easy to exit. Houses you control and are easy to exit. How easy is a massive apt community to exit?
How easy is it to raise capital and keep all the partners/investors happy?
How easy is it to shell out $25k+ in legal just to stay out of hot water with the SEC and other regulators so you have a proper offering and can raise money?
How comfortable would you be investing in something you have absolutely no say in? Nobody but Grant and maybe a key man or 2 can even vote on major decisions.
Those details aren't discussed of course during the rah-rah and rant show. It's salesmanship. For Grant. He couldn't care less if we buy houses or not as long as it doesn't prevent us from investing in one of his no-say syndications.
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