Cardone Capital and all the U tubes

Jay Hinrichs · 2020-04-19T09:19:02-07:00

Wow I don't know if anyone is watching all these U tubes on Cardone.. I have no dog in the HUNT I dont know him never met him Never watched any of his stuff. So when I start to see U tubes that are so negative I watched a few.Just watched a few this morning and talk about the blind leading the blind then all the haters get on who are just keyboard cowboys.so 1. As I said no dog in the hunt.2. Full disclosure I have done one PPM in the last 3 years so know a little bit about it.So what I cant understand is from my vantage point.Everyone is freaking out becasue of no distributions.. And that he fired staff etc etc.. Well I suspect there is going to be a lot of syndicators shoring up reserves right now.. there is absolutely NOTHING wrong with that in my mind.. Safety of the asset first. Next thing they are talking about is Grant is taking his fee's.. well do we all think that Grant is a sole proprietor who does all the work or do you think if U were owning funds with 8k doors you may have some staff?.. and that the management fee is going primarily to staff! these guys were making a big deal that Grant is getting paid.. Whether he is taking personal comp who knows.. but to think he is pocketing all those fee's personally or to not clarify that is wrong.Cardone like many found Paid training.. and I suspect he Makes MILLIONS in paid training.. just like those that came before him MontalongoFortune Builders Zurrix etc etc.. its a HUGE money business.. why do you think the guys who sell paid training on how to be a syndicator popped up in the last few years.. Lots of money in it. So I watched a few of Grants vids and yes he is out there.. and his language is kind of rough and crude but I can see him having a base much like Trump has his base.. And of course you have the JET LOL.. :) the guys at Zurrix have a 30 million dollar jet so its common.It appears he has bought A class trophy type props and according to Meet Kevin paid top of the market for them.. But bottom line as long as there is no funny business behind the scenes I personally would rather have someone like him running the show than some syndicator that just started out and does not have any true personal net worth or balance sheet past the few deals they did.. IE the ones that have to bring in credit partners that have NO PG becasue they cant themselves qualify etc.On one video the guy being interview said that Cardone takes 35% for himself and that included 35% of your investment. not just the upside and the dude interviewing him asked twice about it and he still said that was what he did.. I mean come on.. then he was whining becasue he is not accredited and apparently accreds get a 6% pref and non accreds 4.5% and he was shocked after the fact and felt he was duped, so he obviously did not read the offering Memo LOLInterested on anyone else's take on this.. like Grant dislike him.. But I would hope people would be more accurate in their reporting. And or know what the heck they are talking about

Jay HinrichsBusiness Member

OP

Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes

6y

Originally posted by @Matt R.:

Originally posted by @Account Closed:

Maybe its just a cultural thing and even after living the vast majority of my life in the US I just don't understand Americans attraction to brash loudmouths and their propensity to be taken in by them. Most of the time really competent people are quiet. There are also thousands of successful investors making millions and billions who you rarely hear from and they certainly don't need your money. Try approaching some successful hedge fund guy with a $10K "investment" and see what he says. Hell try to even get @Jay Hinrichs to take your money. He won't. Everything about Cardone smells of a con. If Cardone was one tenth as good as he claims to be institutional investors and family offices would line up to give him money. There is no shortage of capital that needs a home. Why target the average sucker for $10K at a time?

If this was a regular public company, Grant would have been fired 100% for releasing a fake bankruptcy video. They would have had an emergency meeting and in 24 hours he would be gone. I expect more of 10X fun coming soon. Stay tuned. If a quiet type had the same amount of marketing, I think that fund would have had 10X more in it.

Kind of like what happened to Elon at Tesla when he made some statement about his stock

Podcast Guest on Show #222

JLH Capital Partners51 Review

Website View Page

1 Reply

Matt R.

Sherman Oaks, CA · Member since 2013 · 3k+ posts · 2k+ votes

6y

Originally posted by @Jay Hinrichs:

Originally posted by @Matt R.:

Originally posted by @Account Closed:

Maybe its just a cultural thing and even after living the vast majority of my life in the US I just don't understand Americans attraction to brash loudmouths and their propensity to be taken in by them. Most of the time really competent people are quiet. There are also thousands of successful investors making millions and billions who you rarely hear from and they certainly don't need your money. Try approaching some successful hedge fund guy with a $10K "investment" and see what he says. Hell try to even get @Jay Hinrichs to take your money. He won't. Everything about Cardone smells of a con. If Cardone was one tenth as good as he claims to be institutional investors and family offices would line up to give him money. There is no shortage of capital that needs a home. Why target the average sucker for $10K at a time?

If this was a regular public company, Grant would have been fired 100% for releasing a fake bankruptcy video. They would have had an emergency meeting and in 24 hours he would be gone. I expect more of 10X fun coming soon. Stay tuned. If a quiet type had the same amount of marketing, I think that fund would have had 10X more in it.

Kind of like what happened to Elon at Tesla when he made some statement about his stock

A bit different as that was an external SEC forced 36 month suspension vs what would have had his own board removing him. Elon also had 45 days to gather his belongings vs being escorted out by security in 24 hours. Elon can also come back, where Grant would had that door closed for good.

0 Reply

Joe Cassandra

Rental Property Investor · Woodstock, GA · Member since 2017 · 517 posts · 772 votes

6y

I do a lot of marketing...some of it writing campaigns for gurus (like Grant Cardone).

The secret is simple...

You make money from being divisive. if you're lukewarm, you lose. You have to pick a side.

Straight-and-narrow guy vs. cocky, flashy guy.

Hint:

Most people would rather follow (and pay) a charismatic, great-on-video guy who is an average investor...rather than an amazing 'Warren Buffet-type' boring investor.

Why?

Because we all want to be entertained first and taught second.

***

For Grant, he attracts the (mostly) men who dream of his lifestyle...and he gets his millions from investors from those who act like him.

I've bought his books.

Would I buy a car from him? No.

**
Grant will likely pivot and make his messaging even louder to keep his flock near him and investing.

2 Reply

Joe SplitrockPro Member

Moderator

Rental Property Investor · Sioux Falls, SD · Member since 2015 · 9k+ posts · 18k+ votes

6y

@Jay Hinrichs

I listened to his podcast for a year and I have read two of his books. He has good ideas to offer around informational sales and going big on goals. Of course he has an obnoxious personality and he is poster child for excessively displaying wealth.

There is no question he is a marketing genius. His use of social media and technology has been extremely effective. He invests in multifamily in excellent locations, so I believe long term that is a good strategy.

As far as the layoffs, it is important to point out that not every business is laying off people. Many businesses are choosing to pay employees, even when they are not working. Some business owners are funding that from their own personal savings. Grant Cardone is not.

There were many stories during the great recession of businesses who survived by paying all their employees, at the peril of business profit. Those businesses rebounded faster and inspired employee loyalty.

Here is the bottom line. If Grant Cardone wasn't self absorbed and self serving, he would not have put out that bankruptcy video. INSTEAD he would have put out a video talking about how unfortunate it was he had to lay people off. He would have explained it was financially necessary and he would have stated what he is doing to help his employees. He would have reassured investors that this is short term pain. NOPE he doesn't give a crap. The video was insensitive at best. It isn't funny that he laid off employees and it isn't funny that he isn't paying investors.

I think Grant Cardone made a big mistake with that video. Anytime there is financial trouble in the economy, people are looking for villains to blame. My guess is that he is going to go into damage repair mode quickly.

1 Reply

Jay HinrichsBusiness Member

OP

Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes

6y

Originally posted by @Joe Splitrock:

@Jay Hinrichs

I listened to his podcast for a year and I have read two of his books. He has good ideas to offer around informational sales and going big on goals. Of course he has an obnoxious personality and he is poster child for excessively displaying wealth.

There is no question he is a marketing genius. His use of social media and technology has been extremely effective. He invests in multifamily in excellent locations, so I believe long term that is a good strategy.

As far as the layoffs, it is important to point out that not every business is laying off people. Many businesses are choosing to pay employees, even when they are not working. Some business owners are funding that from their own personal savings. Grant Cardone is not.

There were many stories during the great recession of businesses who survived by paying all their employees, at the peril of business profit. Those businesses rebounded faster and inspired employee loyalty.

Here is the bottom line. If Grant Cardone wasn't self absorbed and self serving, he would not have put out that bankruptcy video. INSTEAD he would have put out a video talking about how unfortunate it was he had to lay people off. He would have explained it was financially necessary and he would have stated what he is doing to help his employees. He would have reassured investors that this is short term pain. NOPE he doesn't give a crap. The video was insensitive at best. It isn't funny that he laid off employees and it isn't funny that he isn't paying investors.

I think Grant Cardone made a big mistake with that video. Anytime there is financial trouble in the economy, people are looking for villains to blame. My guess is that he is going to go into damage repair mode quickly.

I would be curious which company those that got laid off actually work for.. Maybe they are in his HOw to training company.. a lot of those companies are shrinking .. And maybe GC capital and his syndication company had no real layoffs .. need someone to run those properties not sure if he manages the props in house or just has staff to manage the PM companies. ??

Podcast Guest on Show #222

JLH Capital Partners51 Review

Website View Page

0 Reply

Bill F.

Investor · Boston, MA · Member since 2015 · 1k+ posts · 3k+ votes

6y

I think @Jay Hinrichs is right that his deals aren't as bad as the interwebs makes them out to be, but they still aren't great or even good, especially in a med risk space like MF. 6% pref and a 65/35 split, with 1% acquisition fee, 1% mgmt fee, and 1% disposition fee are what I've heard. Grant doesn't have a lot, if any capital in as an LP. Whenever he is asked about investing his own funds he gives some slick sales answer that dances around the issue. Someone who doesn't have to eat their own cooking always is a cause for concern.

Who is actually running the money? It can't be Grant, he has his books, his training, his YouTube. Who has he hired to run the fund? None of them are RE heavy hitters that you'd expect for a shop with over $1b AUM. Hell, they have twice the number of people in investor relations than they do actual RE pros. Plus Grant's "right hand man of Re" the EVP of RE, is also Grant's pilot.

The fact that he isn't following the traditional capital raising path means something. You start small and raise funds from individuals to verify your thesis. Once you prove your chops you move up the chain to raise larger amounts from increasingly more sophisticated investors. Raising capital $10-50k at a time is a lot of work and is a non value add activity. The fact that Grant pretty much only targets the smaller investors given his size and marketing capabilities is telling.

I think he sought out areas where he could leverage his awesome marketing ability to make money, which lead him to RE. He doesn't appear to have any skill, competitive advantage, or passion of RE. It is just another avenue for him to make money using his massive brand power.

As for the infamous video, it is lead generation pure and simple. It got his name out there, which is step 1 for getting people into your funnel. If you don't care about your reputation or have your target market segmented in such a way that they don't care about your reputation, it will pay for itself 10x over (pun intended). If two people learned about him from that "deleted" video and invest $50k each for five years, he's locked in $1k/yr cash flow stream. Not to bad for five min worth of work. Granted, he sullied his reputation and debased himself further, but once you passed a certain point, a little bit more is nothing.

3 Reply

JD MartinBusiness Member

Moderator

Rock Star Extraordinaire · Northeast, TN · Member since 2015 · 10k+ posts · 16k+ votes

6y

Who's Grant Cardone?

😅 OK, that is my running joke around here. I read one of his books and was unimpressed. I heard him on the podcast and thought he did a good job dodging some of the serious questions (I believe it was @Joshua D. that asked them).

There's an old derogatory saying that has some truth to it: "Those that can, do, those that can't, teach". It's meant to be a poke-in-the-side of pointy heads, college types and gurus but there is some truth to it. If you knew how to make a billion dollars in real estate, why bother trying to teach anyone else to do it - just go do it yourself.

Beyond that, I'm not really up to speed what Grant's doing these days. I assume he's 100x'ing everything since he's probably moved on from 10x.

Podcast Guest on Show #243

Skyline Properties

View Page

2 Reply

Jay HinrichsBusiness Member

OP

Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes

6y

Originally posted by @Bill F.:

I think @Jay Hinrichs is right that his deals aren't as bad as the interwebs makes them out to be, but they still aren't great or even good, especially in a med risk space like MF. 6% pref and a 65/35 split, with 1% acquisition fee, 1% mgmt fee, and 1% disposition fee are the numbers that I have heard, but I haven't read the PPMs in depth, so I don't know in what order the mgmt fee gets paid relative to the pref and things like that; but those details matter. Grant doesn't have a lot, if any capital in as an LP. Whenever he is asked about investing his own funds he gives some slick sales answer that dances around the issue. Someone who doesn't have to eat their own cooking always is a cause for concern.

I look at it from this perspective, who is actually running the money? It can't be Grant he has his books, his training, his YouTube. So who has he hired to run the fund? None of them are RE heavy hitters that you'd expect for a shop with over $1b AUM. Hell, they have twice the number of people in investor relations than they do actual RE pros. Plus Grant's "right hand man of Re" the EVP of RE, is also Grant's pilot.

I don't know a lot about his funds, but the fact that he isn't following the traditional capital raising path means something. The market has established a path for weed out unsuccessful investors trying to raise money. You start small and raise funds from individuals to prove your thesis. Once you prove your chops you move up the chain to raise larger and larger amounts from increasingly more sophisticated investors. Why? Raising capital $10-50k at a time is a lot of work and is a non value add activity. The fact that Grant pretty much only targets the smaller investors given his size and marketing capabilities is telling.

I think he sought out areas where he could leverage his awesome marketing ability to make money, which lead him to RE. He doesn't appear to have any skill, competitive advantage, or passion of RE. It is just another avenue for him to make money using his massive brand power.

As for the infamous video, it is lead generation pure and simple. It got his name out there, which is step 1 for getting people into your funnel. If you don't care about your reputation or have your target market segmented in such a way that they don't care about your reputation, it will pay for itself 10x over (pun intended). If two people learned about him from that "deleted" video and invest $50k each for five years, he's locked in $1k/yr cash flow stream. Not to bad for five min worth of work. granted, he sullied his reputation and debased himself further, but once you passed a certain point, a little bit more is nothing.

as for cost splits and fee's this is all negotiable if the investing public does not like then don't invest.. I worked for a big syndicator in the 80s they had 5 k clients 250 props mainly 10 to 30 unit garden apartments from SF to Sacramento and some larger stuff.

But how they did theirs was they were real estate brokers so they got the 3% RE fee on purchase.. ( was a broker as well and I got a piece of that when I brought a deal in) then they took 10% equity and they owned the management company.. And then direct operating costs for accounting and so on.. The PM company made them a significant amount of revenue .. during the course of the investment.. Then when they sold they were the listing agent and got 3% again and if they sold it themselves they got the full 5 to 6 % fee..

With Reg A offerings were you can market to anyone and there is no suitability requirements .. this is where the smaller investor can get a look see at bigger deals.. so 4.5 % and whatever % of the back end I suspect is pretty fair all things considered.. No one is forcing anyone to invest with GC capital..

But what I did learn having worked with that company in the 80s is that when you have 5,000 investors like they had and the wheels start to go off like real estate did in Northern CA from 89 to 92 ish.. I learned right then and there how very difficult times can get when things are not working well.. or like now an upset in the market. It will be important for him to be in constant communication and put out good reports on exactly what they are doing so you don't have a lot of investor issues that can get ugly even if you did not do anything wrong.

Podcast Guest on Show #222

JLH Capital Partners51 Review

Website View Page

0 Reply

Matt R.

Sherman Oaks, CA · Member since 2013 · 3k+ posts · 2k+ votes

6y

Originally posted by @Bill F.:

I think @Jay Hinrichs is right that his deals aren't as bad as the interwebs makes them out to be, but they still aren't great or even good, especially in a med risk space like MF. 6% pref and a 65/35 split, with 1% acquisition fee, 1% mgmt fee, and 1% disposition fee are what I've heard. Grant doesn't have a lot, if any capital in as an LP. Whenever he is asked about investing his own funds he gives some slick sales answer that dances around the issue. Someone who doesn't have to eat their own cooking always is a cause for concern.

Who is actually running the money? It can't be Grant, he has his books, his training, his YouTube. Who has he hired to run the fund? None of them are RE heavy hitters that you'd expect for a shop with over $1b AUM. Hell, they have twice the number of people in investor relations than they do actual RE pros. Plus Grant's "right hand man of Re" the EVP of RE, is also Grant's pilot.

The fact that he isn't following the traditional capital raising path means something. You start small and raise funds from individuals to verify your thesis. Once you prove your chops you move up the chain to raise larger amounts from increasingly more sophisticated investors. Raising capital $10-50k at a time is a lot of work and is a non value add activity. The fact that Grant pretty much only targets the smaller investors given his size and marketing capabilities is telling.

I think he sought out areas where he could leverage his awesome marketing ability to make money, which lead him to RE. He doesn't appear to have any skill, competitive advantage, or passion of RE. It is just another avenue for him to make money using his massive brand power.

As for the infamous video, it is lead generation pure and simple. It got his name out there, which is step 1 for getting people into your funnel. If you don't care about your reputation or have your target market segmented in such a way that they don't care about your reputation, it will pay for itself 10x over (pun intended). If two people learned about him from that "deleted" video and invest $50k each for five years, he's locked in $1k/yr cash flow stream. Not to bad for five min worth of work. Granted, he sullied his reputation and debased himself further, but once you passed a certain point, a little bit more is nothing.

There may have been some 65/35 idk, but Grant said the fund paid out 2 mil a month a couple months back and he got 800k personally, 60/40. He has a 3rd party management company run the apts I think. Maybe no layoffs there yet. His wife said she still needs the jet to get around so that stays. At a certain point too much negative attention will catch up and make it more difficult to grow the fund even for a master marketer imo. This whole story reminds me of TV evangelists.

Since these are quality buildings and locations long run I can't see much going that bad. I don't think it is going to sound great along the way with a guy who can't be quiet. This style will not be well received in a deeper than average recession imo.

2 Reply

Joe SplitrockPro Member

Moderator

Rental Property Investor · Sioux Falls, SD · Member since 2015 · 9k+ posts · 18k+ votes

6y

Originally posted by @Jay Hinrichs:

Originally posted by @Joe Splitrock:

@Jay Hinrichs

I listened to his podcast for a year and I have read two of his books. He has good ideas to offer around informational sales and going big on goals. Of course he has an obnoxious personality and he is poster child for excessively displaying wealth.

There is no question he is a marketing genius. His use of social media and technology has been extremely effective. He invests in multifamily in excellent locations, so I believe long term that is a good strategy.

As far as the layoffs, it is important to point out that not every business is laying off people. Many businesses are choosing to pay employees, even when they are not working. Some business owners are funding that from their own personal savings. Grant Cardone is not.

There were many stories during the great recession of businesses who survived by paying all their employees, at the peril of business profit. Those businesses rebounded faster and inspired employee loyalty.

Here is the bottom line. If Grant Cardone wasn't self absorbed and self serving, he would not have put out that bankruptcy video. INSTEAD he would have put out a video talking about how unfortunate it was he had to lay people off. He would have explained it was financially necessary and he would have stated what he is doing to help his employees. He would have reassured investors that this is short term pain. NOPE he doesn't give a crap. The video was insensitive at best. It isn't funny that he laid off employees and it isn't funny that he isn't paying investors.

I think Grant Cardone made a big mistake with that video. Anytime there is financial trouble in the economy, people are looking for villains to blame. My guess is that he is going to go into damage repair mode quickly.

I would be curious which company those that got laid off actually work for.. Maybe they are in his HOw to training company.. a lot of those companies are shrinking .. And maybe GC capital and his syndication company had no real layoffs .. need someone to run those properties not sure if he manages the props in house or just has staff to manage the PM companies. ??

I am sure you are right. I doubt he laid off many people on the apartment side of the business. He still needs to manage the properties or manage the companies managing the properties. My guess is he laid off mostly sales and marketing. He has a pretty aggressive team pursuing corporate sales training. Most companies have immediately cut spending on these type of training programs.

Cost containment is prudent for companies when the business climate shifts, so I don't fault him for making these type of business decisions. I just think making a joke about it was a bad choice.

0 Reply

Jason Powell

Beaverton, OR · Member since 2014 · 118 posts · 119 votes

6y

Grant runs a legitimate business and in my opinion is a smart guy. Crude and edgy, yes absolutely. Charges on the high side of fees and profit split with a lower pref, but within the realm of reason. He is able to because he has built a brand and marketing funnel.

I have an advantaged perspective in this syndication industry and can say that the VAST majority of syndicators have paused distributions to stack cash. Most sophisticated investors want their syndicators to do this (I sure do). One scenario, they get paid a really big distribution in the summer if this all blows over. The other scenario, this ultimately saves the asset and protects from needing to do a capital call when investors may or may not be willing to part with cash right now. In most cases, this is the obvious prudent move.

The only asset types I'm seeing largely continue all or partial distributions are office buildings with distinctly high credit tenants with very little concern, or NNN leases with single tenants who are thriving right now.

The issue Jay brings up is, in my opinion, the fault of the investor not being educated. Lucky for them they are with Grant right now and not a highly leveraged newbie with a weak balance sheet.

3 Reply

Michael K GallagherBusiness Member

Real Estate Agent · Columbus OH · Member since 2018 · 1k+ posts · 1k+ votes

6y

Originally posted by @Karl B.:

@Jay Hinrichs Grant's most - shall I say - interesting interview is with Jordan Belfort (the Wolf of Wall Street guy). If you haven't already watched it, it's worth the watch and then some.

I watch Grant Cardone from time to time in small doses. I watch some Meet Kevin as well (though he tends to add as many Youtube commercials in his videos as possible which is maddening).

I like Ben Mallah; mainly his open-call videos where he's answering caller questions as his regular videos are feeling very reality TV staged as of late - but his open call videos tend to have good information.

Though my favorite are the BP podcasts - thank goodness for them. The model of 'we're going to give you information and not try and sell you something' is the best model - probably why I like Ben Mallah - he's not trying to sell any programs though as mentioned I do believe someone in his family wants them to have a reality TV show.

I second the note on the Jordan podcast! that interview was amazing....and even more fascinating was the follow interview Meet Kevin did with Jordan! Goes into a lot of body language and such...very interesting.

[email protected]614-362-2231

1 Reply

Jason Powell

Beaverton, OR · Member since 2014 · 118 posts · 119 votes

6y

@Account Closed couldn't disagree more. At least on point #1, which is the only area I have enough experience in to speak with confidence. Syndications are not at all like owning a stock. They are usually more analogous to personally owning a property, but without the ability to make decisions (even less liquidity than normal). This includes the depreciation tax benefits which flow through to the investor. In 2019 for example, I had a negative $100k that I could use to offset other income, even though my deals were doing well and providing real income. It's also provided an opportunity to shift some chips out of my local Portland market, which has become increasingly more hostile toward landlords over the years. Lots of benefits, but not right for most people to put a massive % of their net worth into for various reasons.

0 Reply

Joe SplitrockPro Member

Moderator

Rental Property Investor · Sioux Falls, SD · Member since 2015 · 9k+ posts · 18k+ votes

6y

Originally posted by @Greg Dickerson:

Originally posted by @Jay Hinrichs:

@Greg Dickerson see above :)

Jay - I will be doing an exclusive interview with Grant tomorrow to discuss exactly what's going on with Cardone Capital. I will get the real truth directly from Grant. Should be an interesting interview.

I am not sure about how exclusive your interview is going to be. He is on Rob Moore Youtube right now. Boy he changed his tune. He is acting all calm and saying he cares about people above everything.

0 Reply

Joe SplitrockPro Member

Moderator

Rental Property Investor · Sioux Falls, SD · Member since 2015 · 9k+ posts · 18k+ votes

6y

https://www.youtube.com/watch?reload=9&v=KjjQMjajnYQ

This just aired, the Rob Moore Disruptive Entrepreneur Youtube interview with Grant Cardone. Straight from Cardone, he says they furloughed 42 of 186 employees. He claims his training business has increased sales. He says his apartment business is doing great and says their occupancy is 11% higher than national average. He says suspending distributions was not necessary, but just done as precautionary. He says he didn't let go of people for economic reasons, but rather to "manage resources".

As far as the bankruptcy video, Cardone says the video was fake. He says he was joking. He admits the "joke" was poor timing, given all the people in trouble. He apologizes multiple times. Watch him hit the podcast circuit apologizing the next couple weeks.

1 Reply

Mark F.

Rental Property Investor · Northern NJ · Member since 2019 · 673 posts · 677 votes

6y

Reading this thread is the equivalent of watching "Keeping up with the Kardashians". Traing wreck but I can't help but to look.

4 Reply

Ian Dunross

Investor · Gainesville, FL · Member since 2016 · 44 posts · 28 votes

6y

Take it from me, as a real estate investor and a YouTuber (8,000 subscribers and counting!)...Meet Kevin's videos exist only to make Kevin money. One Christmas Kevin ran up on Grant in Miami at Grant's office as a "surprise", Grants security roughed Kevin up and threw him out of the office (as they should have).

Kevin used to be a real estate investor who did YouTube...now he's a youtuber who does real estate investing...big difference!

If Meet Kevin really wanted to inform/help people, he'd be doing in depth reporting on Clayton Morris!

3 Reply

Bill F.

Investor · Boston, MA · Member since 2015 · 1k+ posts · 3k+ votes

6y

Originally posted by @Joe Splitrock:

He says his apartment business is doing great and says their occupancy is 11% higher than national average. He says suspending distributions was not necessary, but just done as precautionary. He says he didn't let go of people for economic reasons, but rather to "manage resources".

As the old saying goes, figures lie and liars figure.

Of course his apartments have higher occupancy than the national average, they are B+/A- assets in areas with growing populations.

The real question is, how has his same asset occupancy changed from Jan to now and Apr 2020 vs Apr 2019?

1 Reply

Roni E.Pro Member

Specialist · Earth 2.0 · Member since 2019 · 598 posts · 271 votes

6y

Grant Cardone is very very good at marketing and attracting attention. He is very successful and has done very well for him. The video about bankruptcy not the best video to have done. Right now if you are an Sponser/Operation you should just be focused on operations, reducing costs, taking care of your tenants and investors.

2 Reply

Jay HinrichsBusiness Member

OP

Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes

6y

Originally posted by @Ian Dunross:

Take it from me, as a real estate investor and a YouTuber (8,000 subscribers and counting!)...Meet Kevin's videos exist only to make Kevin money. One Christmas Kevin ran up on Grant in Miami at Grant's office as a "surprise", Grants security roughed Kevin up and threw him out of the office (as they should have).

Kevin used to be a real estate investor who did YouTube...now he's a youtuber who does real estate investing...big difference!

If Meet Kevin really wanted to inform/help people, he'd be doing in depth reporting on Clayton Morris!

Good point on Clayton Morris.. seems like half of Meet Kevins stuff is about stocks as well. and general economic theories or his theories.

Podcast Guest on Show #222

JLH Capital Partners51 Review

Website View Page

0 Reply

Vaughn Smith

Property Manager · NJ · Member since 2017 · 786 posts · 396 votes

6y

@Jay Hinrichs I thought I was the only one who saw the myriad of videos disparaging GC, trying to pick apart his logic and predicting his downfall (Meet Kevins content was the most annoying). The problem that I saw with most of the videos I watched was that they seemed more emotional and speculative than they were fact based.I only saw a couple of videos but the ones I watched didn't have any evidence on the claims they made about Cardone, in fact they all seemed to share one theme "I told you Grant Cardone is a....".

4 Reply

William Coet

Lititz, PA · Member since 2013 · 595 posts · 272 votes

6y

Originally posted by @Joe Splitrock:

@Jay Hinrichs

I listened to his podcast for a year and I have read two of his books. He has good ideas to offer around informational sales and going big on goals. Of course he has an obnoxious personality and he is poster child for excessively displaying wealth.

There is no question he is a marketing genius. His use of social media and technology has been extremely effective. He invests in multifamily in excellent locations, so I believe long term that is a good strategy.

As far as the layoffs, it is important to point out that not every business is laying off people. Many businesses are choosing to pay employees, even when they are not working. Some business owners are funding that from their own personal savings. Grant Cardone is not.

There were many stories during the great recession of businesses who survived by paying all their employees, at the peril of business profit. Those businesses rebounded faster and inspired employee loyalty.

Here is the bottom line. If Grant Cardone wasn't self absorbed and self serving, he would not have put out that bankruptcy video. INSTEAD he would have put out a video talking about how unfortunate it was he had to lay people off. He would have explained it was financially necessary and he would have stated what he is doing to help his employees. He would have reassured investors that this is short term pain. NOPE he doesn't give a crap. The video was insensitive at best. It isn't funny that he laid off employees and it isn't funny that he isn't paying investors.

I think Grant Cardone made a big mistake with that video. Anytime there is financial trouble in the economy, people are looking for villains to blame. My guess is that he is going to go into damage repair mode quickly.

There is a big difference between laying people off now and in the 2009 Recession. Because of the enhanced unemployment benefits ($600/week in addition to regular UI) there are people who will be making the equivalent of $50,000/yr on unemployment. This was not an option during the 2009 recession, and this is having a significant affect on the decisions being made by employers and employees today regarding lay-offs.

2 Reply

Cody L.

Rental Property Investor · San Diego, CA · Member since 2013 · 3k+ posts · 4k+ votes

6y

Originally posted by @Robert M.:

I like Grant and have watched his channel, read his books, and enjoyed his lectures as I have learned from him. He is very motivating. Meet Kevin is a German immigrant that was bullied in school and has now become the bully. We were Kevin subscribers from the beginning. Wife an I are big You Tubers and have followed Kevin, Randy Patrick, (bubble kitty) and Graham Stephan just to name a few. We stopped watching Kevin due to all his profit from others demise. He is very smart but full of hate and anger, # dont sue me bro. I wish the best for Grant and his family, he isnt the first dreamer to have been hit with an unforeseen situation. The kick em when they're down mentality sucks!

Man, I'm on youtube a lot and I literally have no idea who any of those guys are. But you and OP both said "Meet Kevin" as if that's his name? Guess it's better than 'bubble kitty' :)

1 Reply

Cody L.

Rental Property Investor · San Diego, CA · Member since 2013 · 3k+ posts · 4k+ votes

6y

"Most of the time really competent people are quiet"

Exactly! I've never really been able to get into mutlifamily youtube people. Most are all talk. The guys I know personally that, on their own without partners bought 1000+ units, $100m portfolios, $200k+/month in cash flow.. They don't youtube about what they're doing. They just quietly do it.

1 Reply

Cody L.

Rental Property Investor · San Diego, CA · Member since 2013 · 3k+ posts · 4k+ votes

6y

Originally posted by @Jay Hinrichs:

Originally posted by @Ian Dunross:

Take it from me, as a real estate investor and a YouTuber (8,000 subscribers and counting!)...Meet Kevin's videos exist only to make Kevin money. One Christmas Kevin ran up on Grant in Miami at Grant's office as a "surprise", Grants security roughed Kevin up and threw him out of the office (as they should have).

Kevin used to be a real estate investor who did YouTube...now he's a youtuber who does real estate investing...big difference!

If Meet Kevin really wanted to inform/help people, he'd be doing in depth reporting on Clayton Morris!

Good point on Clayton Morris.. seems like half of Meet Kevins stuff is about stocks as well. and general economic theories or his theories.

AH! I have seen that Meet Kevin guy.  He showed up in my youtube feed. He had a video on PPP. I clicked on it, watched about 20 seconds. The dude was annoying so I couldn't watch (that's just my opinion. If you like him more power to you. Check out my channel - Meet Cody)

Funny.. I kept seeing people type "meet kevin" and was thinking "Why are people calling him that?"  But yeah, when you said he had a video about stocks and stuff, I remembered seeing him.

No wonder it's hard for lots of people to get into real estate. Maybe I was lucky that 12 years ago when I started there wasn't a bunch of "youtube celebs". I just had to buy something and figure it out. Seriously I think things have gotten harder in some ways with youtube and this cult of personality around people like Cardone (who I couldn't pick out of a lineup. I've only seen him mentioned on here.  Which is maybe why I've been able to grow a little portfolio)

1 Reply

Cardone Capital and all the U tubes

Cardone Capital and all the U tubes

Most Popular Reply

66 Replies