Grant Cardone / Cardone Capital

127 Replies

My office received a call from one of his reps today. I thought the pitch was a pie in the sky type of deal.  Anyone hear of this guy on Youtube,  Grant Cardone?  He boasts a half a billion dollar real estate empire in Florida and Texas.  I believe he get's around 90% financing, plus he also takes in money from investors.  Something doesn't seem 100%.   He also does these seminars and other marketing stuff.  He seems all over the place and also trying to raise capital from others.  Just some basic math, if he's financing 90%, paying out at least 6% to investors, and locking in a 3.5% mortgage from Fannie Mae; because he's a preferred client, there doesn't seem much leeway for him to make money.  I understand the cash flow portion of it, as that is what we do.  We just do not raise capital or borrow money that much anymore.  However, my concern is that when the recession hits and the evictions start, that cash flow will dry up.  He seems to be working on extremely thin margins.  He's also in very lofty areas of Miami; which were the first to go in the last recession.  He reminds me of the Polka King (https://en.wikipedia.org/wiki/Jan_Lewan).

Am I reading into the numbers incorrectly?

Haha Grant Cardone is a legendary name. 10x, If You're Not First, You're Last and other sales/business books. But he is also an active multi-family investor. I don't know anything about his operation or track record. I would love to see the full pro forma if you have it. 90% financing for a commercial multi-family seems strange but the government does all kinds of strange things. 

GC is legit. He was a guest on the Bigger Pockets podcast 3 years ago.

Originally posted by @Calvin T. :

My office received a call from one of his reps today. I thought the pitch was a pie in the sky type of deal.  Anyone hear of this guy on Youtube,  Grant Cardone?  He boasts a half a billion dollar real estate empire in Florida and Texas.  I believe he get's around 90% financing, plus he also takes in money from investors.  Something doesn't seem 100%.   He also does these seminars and other marketing stuff.  He seems all over the place and also trying to raise capital from others.  Just some basic math, if he's financing 90%, paying out at least 6% to investors, and locking in a 3.5% mortgage from Fannie Mae; because he's a preferred client, there doesn't seem much leeway for him to make money.  I understand the cash flow portion of it, as that is what we do.  We just do not raise capital or borrow money that much anymore.  However, my concern is that when the recession hits and the evictions start, that cash flow will dry up.  He seems to be working on extremely thin margins.  He's also in very lofty areas of Miami; which were the first to go in the last recession.  He reminds me of the Polka King (https://en.wikipedia.org/wiki/Jan_Lewan).

Am I reading into the numbers incorrectly?

Haha, the Polka King! Interesting Jack Black movie.

Grant Cardone is legit, I guess, some like him and some don't. He's not my cup of tea. Also, even in a situation like this where you have a "celebrity" investor, you need to do your due diligence on the operator (Grant Cardone) and the individual deal. Regarding his training, seminars, etc. you also need to consider each individually and decide if the cost is a good investment for you and your goals.

If you're trying to calculate his margins using your numbers above adding up to 99.5% (leaving him .5%), you're not reading them correctly and looking at different pieces of different pies. Syndicators make their money on acquisition fees, asset management fees and on refi/exit fees. All of these fees are baked into the deal and payout percentages. 

There are a lot of great syndicators/sponsors out there and here on BP, check out @Joe Fairless, @Todd Dexheimer , @Brian Burke and @Ivan Barratt , just to name a few. Go to their website, research them and read the PPMs on their deals. See how they stack up to Grant Cardone, really, completely different investments.

Good Luck!

Not looking for myself.  We already have about 640 units under our belt.  Again, the call came in and I thought it was interesting to say the least.  In metro NYC, apt buildings are not what they explain, but perhaps in the FL and TX they are easier because less regulations.  We do not go into markets we cannot drive to or have an office in, and we like direct control.  Thus, his service is not for us, but I thought it was an interesting concept that seemed too good to be true.  That is all.

@Scott Skinger thanks for the shout out.

@Calvin T. I suggest if you're serious about being an LP investor in Mfam; underwrite 100 offerings (maybe 50 if you're an experienced investor as you seem to be). Do that and you'll gain "fingertip fee" of what a good deal looks like.

Personally, I like GC. He's also a proven multifamily owner but as you say his deal structure would be a factor or two above my personal risk tolerance. I think when the next correction hits his deals may yield only 1-2% for a while but the long term debt structure he employs (I used the same) will keep the deals from going under.  

Govt financing, conservative underwriting and management execution properly combined; make multifamily (in my opinion exclusively workforce housing vs luxury, student, low income, etc) the BEST risk adjusted return of all real estate asset classes.

I can’t believe you have 640 units and have never heard of Grant Cardone! Listen to a couple of his podcasts anytime you need a shot of motivation. He crushes it.

Originally posted by @Tal Simpson :

I can’t believe you have 640 units and have never heard of Grant Cardone! Listen to a couple of his podcasts anytime you need a shot of motivation. He crushes it.

 I've heard of stranger things. 

I bought a vanload of coin-op dryers from a guy who owns 600+ units in Ohio (kind of ironic he and the OP are at roughly the same number of doors - though I don't know if the guy I bought the dryers from has other properties aside from his seemingly small city of apartments) and he had never heard of Bigger Pockets. When I had mentioned Bigger Pockets he chuckled and said, "I like the name!"

Don't really listen to podcasts, not really on Youtube much.  The guys who work in the fields now I am sure know more about him than I do.  I'm an old guy that's been in NYC and surrounding areas since the 70's.  Never took on much risk and just grew from there.  He seems entertaining, just the numbers the rep stated, unless there's some sort of rebating makes very slim margins (I could be wrong).  That's okay when the market just goes up, but when it retracts, not so good.  Now, it doesn't really matter if you own the buildings w/o a mortgage.  Most, like us, can wait it out as we've done in the past.  It only becomes a problem when you have vacancies and such.  Thus, when the market corrects, I feel, and I could be wrong, the investors in Cardone Capital will be holding the bag.  We stick to working class and blue collar buildings.  Nothing fancy, but the rentals are decent income producers.  We have one property in Manhattan that many have been eyeing since I've owned it sine the mid-70's.  It's probably our only B or A area.  Paid 35k for it.  It makes more than than in a month.  :)  All others are scattered around in NJ, CT, NYC, Upstate NY, Philly, and Chicagoland.  Though, the last one is becoming a bit rough.  

Nothing against the guy, just wanted more information.  When I Googled him, he seemed more like a flashy showman than a real estate tycoon. 

@Calvin T. a guy like you knows not to invest in something or someone that you don't know. I am a big fan of GC, but I am small time and like the motivation. I don't agree with everything he says, or anyone else for that matter. He is entertaining, educational, and he has been successful over the last 25 years investing in real estate.. He is registered with the SEC, so he knows all of the rules. He offers a 6% preferred rate, meaning that he doesn't make money unless he is profiting more than that. He also has over 4000 units, so there is enough scale, in my opinion, to withstand a recession. I haven't invested with him because I prefer to do it all myself. He appeals to busy professionals who don't have the time or knowledge to invest in RE themselves. He does all the work and provides passive income to investors, like a syndicator.

Originally posted by @Tal Simpson :

I can’t believe you have 640 units and have never heard of Grant Cardone! Listen to a couple of his podcasts anytime you need a shot of motivation. He crushes it.

 Why does he need Grant Cardone? He owns 640 units, so HE IS crushing it already. Cardone is for broke people who want to 10X their life. Mostly Cardone is a sales trainer, made his living teaching people how to sell cars and decided to invest his money in real estate. He is a little demeaning, but he has that Matthew McConaughey southern charm so he gets away with it. I used to listen to his podcast back in 2014. He told listeners to pull their money out of the stock market because it was going to crash. The market skyrocketed and after two years of saying the crash was coming, he just went silent. My point is although his sales training is great, he has been plenty wrong on investment advice. 

Keep in mind that Cardone is a bragger with a huge ego and Trump like personality. He wants you to believe he is bigger than he really is. 

Originally posted by @Nick Britton :
GC is legit. He was a guest on the Bigger Pockets podcast 3 years ago.

Originally posted by @Calvin T.:

My office received a call from one of his reps today. I thought the pitch was a pie in the sky type of deal.  Anyone hear of this guy on Youtube,  Grant Cardone?  He boasts a half a billion dollar real estate empire in Florida and Texas.  I believe he get's around 90% financing, plus he also takes in money from investors.  Something doesn't seem 100%.   He also does these seminars and other marketing stuff.  He seems all over the place and also trying to raise capital from others.  Just some basic math, if he's financing 90%, paying out at least 6% to investors, and locking in a 3.5% mortgage from Fannie Mae; because he's a preferred client, there doesn't seem much leeway for him to make money.  I understand the cash flow portion of it, as that is what we do.  We just do not raise capital or borrow money that much anymore.  However, my concern is that when the recession hits and the evictions start, that cash flow will dry up.  He seems to be working on extremely thin margins.  He's also in very lofty areas of Miami; which were the first to go in the last recession.  He reminds me of the Polka King (https://en.wikipedia.org/wiki/Jan_Lewan).

Am I reading into the numbers incorrectly?

 I don't want to comment on Cardone one way or the other but I wanted to note this post - everyone always needs to make sure they do their own research and due diligence. BP works hard to have good podcast guests but one should never assume that just because someone was on the radio they're real or worthwhile. Question everything - make no assumptions. Cardone is famous, but Bernie Madoff was famous too. 

Originally posted by @Joe Splitrock :
Originally posted by @Tal Simpson:

I can’t believe you have 640 units and have never heard of Grant Cardone! Listen to a couple of his podcasts anytime you need a shot of motivation. He crushes it.

 Why does he need Grant Cardone? He owns 640 units, so HE IS crushing it already. Cardone is for broke people who want to 10X their life. Mostly Cardone is a sales trainer, made his living teaching people how to sell cars and decided to invest his money in real estate. He is a little demeaning, but he has that Matthew McConaughey southern charm so he gets away with it. I used to listen to his podcast back in 2014. He told listeners to pull their money out of the stock market because it was going to crash. The market skyrocketed and after two years of saying the crash was coming, he just went silent. My point is although his sales training is great, he has been plenty wrong on investment advice. 

Keep in mind that Cardone is a bragger with a huge ego and Trump like personality. He wants you to believe he is bigger than he really is. 

 He clearly doesn't need Grant Cardone and clearly is crushing it on his own.  I don't need Grant Cardone either, and I'm not (yet) crushing it.  I think a lot of people forget that Grant Cardone is first and foremost a large multifamily real estate investor.  All the other sales/marketing/motivation stuff is to raise brand (i.e. the Cardone name) awareness and generate more income that he uses to buy apartments with.  His real estate podcasts and videos are extremely informative.  All his bragging and joking and over the top energy are just added entertainment, but if you study what he says about real estate it becomes clear that he is a very savvy RE investor.

@Tal Simpson  

Grant Cardone is like anyone else, you can learn what to do or what not to do from him.

Its important to note that GC was in sales/marketing WAY before he invested in Real Estate. Listen to the BP podcast, he talks about how used apartment buildings as a place to park his money from other ventures. The RE funds are a new-ish venture for him. 

There is a difference between Real Estate Investors and those who invest in Real Estate.

I have personally known Cardone for over 2 years, have you? I question your motives with your post.

Originally posted by @JD Martin :
Originally posted by @Nick Britton:
GC is legit. He was a guest on the Bigger Pockets podcast 3 years ago.

Originally posted by @Calvin T.:

My office received a call from one of his reps today. I thought the pitch was a pie in the sky type of deal.  Anyone hear of this guy on Youtube,  Grant Cardone?  He boasts a half a billion dollar real estate empire in Florida and Texas.  I believe he get's around 90% financing, plus he also takes in money from investors.  Something doesn't seem 100%.   He also does these seminars and other marketing stuff.  He seems all over the place and also trying to raise capital from others.  Just some basic math, if he's financing 90%, paying out at least 6% to investors, and locking in a 3.5% mortgage from Fannie Mae; because he's a preferred client, there doesn't seem much leeway for him to make money.  I understand the cash flow portion of it, as that is what we do.  We just do not raise capital or borrow money that much anymore.  However, my concern is that when the recession hits and the evictions start, that cash flow will dry up.  He seems to be working on extremely thin margins.  He's also in very lofty areas of Miami; which were the first to go in the last recession.  He reminds me of the Polka King (https://en.wikipedia.org/wiki/Jan_Lewan).

Am I reading into the numbers incorrectly?

 I don't want to comment on Cardone one way or the other but I wanted to note this post - everyone always needs to make sure they do their own research and due diligence. BP works hard to have good podcast guests but one should never assume that just because someone was on the radio they're real or worthwhile. Question everything - make no assumptions. Cardone is famous, but Bernie Madoff was famous too. 

Originally posted by @Nick Britton :
I have personally known Cardone for over 2 years, have you? I question your motives with your post.

Originally posted by @JD Martin:
Originally posted by @Nick Britton:
GC is legit. He was a guest on the Bigger Pockets podcast 3 years ago.

Originally posted by @Calvin T.:

My office received a call from one of his reps today. I thought the pitch was a pie in the sky type of deal.  Anyone hear of this guy on Youtube,  Grant Cardone?  He boasts a half a billion dollar real estate empire in Florida and Texas.  I believe he get's around 90% financing, plus he also takes in money from investors.  Something doesn't seem 100%.   He also does these seminars and other marketing stuff.  He seems all over the place and also trying to raise capital from others.  Just some basic math, if he's financing 90%, paying out at least 6% to investors, and locking in a 3.5% mortgage from Fannie Mae; because he's a preferred client, there doesn't seem much leeway for him to make money.  I understand the cash flow portion of it, as that is what we do.  We just do not raise capital or borrow money that much anymore.  However, my concern is that when the recession hits and the evictions start, that cash flow will dry up.  He seems to be working on extremely thin margins.  He's also in very lofty areas of Miami; which were the first to go in the last recession.  He reminds me of the Polka King (https://en.wikipedia.org/wiki/Jan_Lewan).

Am I reading into the numbers incorrectly?

 I don't want to comment on Cardone one way or the other but I wanted to note this post - everyone always needs to make sure they do their own research and due diligence. BP works hard to have good podcast guests but one should never assume that just because someone was on the radio they're real or worthwhile. Question everything - make no assumptions. Cardone is famous, but Bernie Madoff was famous too. 

 If you think my motives are to hope everyone thinks for themselves and does their own investigation, you're right. Otherwise, I have no idea what you are talking about. What difference does it make that you know Grant Cardone for 2 years? That's like one of my friends coming by here and saying "Hey, JD's a great guy." How does that influence the price of tea in China? Cardone may be a great guy, and his advice might be spot on - but no one should assume that because he's been on a podcast or written a book. They should come to that conclusion based on their own research and dissemination of his actions and material.

Originally posted by @JD Martin :
Originally posted by @Nick Britton:
I have personally known Cardone for over 2 years, have you? I question your motives with your post.

Originally posted by @JD Martin:
Originally posted by @Nick Britton:
GC is legit. He was a guest on the Bigger Pockets podcast 3 years ago.

Originally posted by @Calvin T.:

My office received a call from one of his reps today. I thought the pitch was a pie in the sky type of deal.  Anyone hear of this guy on Youtube,  Grant Cardone?  He boasts a half a billion dollar real estate empire in Florida and Texas.  I believe he get's around 90% financing, plus he also takes in money from investors.  Something doesn't seem 100%.   He also does these seminars and other marketing stuff.  He seems all over the place and also trying to raise capital from others.  Just some basic math, if he's financing 90%, paying out at least 6% to investors, and locking in a 3.5% mortgage from Fannie Mae; because he's a preferred client, there doesn't seem much leeway for him to make money.  I understand the cash flow portion of it, as that is what we do.  We just do not raise capital or borrow money that much anymore.  However, my concern is that when the recession hits and the evictions start, that cash flow will dry up.  He seems to be working on extremely thin margins.  He's also in very lofty areas of Miami; which were the first to go in the last recession.  He reminds me of the Polka King (https://en.wikipedia.org/wiki/Jan_Lewan).

Am I reading into the numbers incorrectly?

 I don't want to comment on Cardone one way or the other but I wanted to note this post - everyone always needs to make sure they do their own research and due diligence. BP works hard to have good podcast guests but one should never assume that just because someone was on the radio they're real or worthwhile. Question everything - make no assumptions. Cardone is famous, but Bernie Madoff was famous too. 

 If you think my motives are to hope everyone thinks for themselves and does their own investigation, you're right. Otherwise, I have no idea what you are talking about. What difference does it make that you know Grant Cardone for 2 years? That's like one of my friends coming by here and saying "Hey, JD's a great guy." How does that influence the price of tea in China? Cardone may be a great guy, and his advice might be spot on - but no one should assume that because he's been on a podcast or written a book. They should come to that conclusion based on their own research and dissemination of his actions and material.

Let's keep this in perspective. There have been people on the BP podcast, like Clayton Morris, who have since been accused by BP users of major fraud. I think many people would say Clayton Morris is a great guy. In fact Robert Kiyosaki was on his his podcast a month ago saying great things about Morris (Kiyosaki has never even been on the BP podcast). The point is people vouching for another person doesn't do any good without due diligence. Blind trust is dangerous.

Question for you Nick. You say Grant is a good guy. Does that mean you would stake your personal reputation recommending him? Would you guarantee nobody would lose money investing with him?

I have no personal experience with either Grant or Clayton, so I am not saying either is good or bad. My point is people need to vet out the investment like you would with a total stranger. People have a misguided trust of people just because they are on a podcast.

Originally posted by @JD Martin :
Originally posted by @Nick Britton:
I have personally known Cardone for over 2 years, have you? I question your motives with your post.

Originally posted by @JD Martin:
Originally posted by @Nick Britton:
GC is legit. He was a guest on the Bigger Pockets podcast 3 years ago.

Originally posted by @Calvin T.:

My office received a call from one of his reps today. I thought the pitch was a pie in the sky type of deal.  Anyone hear of this guy on Youtube,  Grant Cardone?  He boasts a half a billion dollar real estate empire in Florida and Texas.  I believe he get's around 90% financing, plus he also takes in money from investors.  Something doesn't seem 100%.   He also does these seminars and other marketing stuff.  He seems all over the place and also trying to raise capital from others.  Just some basic math, if he's financing 90%, paying out at least 6% to investors, and locking in a 3.5% mortgage from Fannie Mae; because he's a preferred client, there doesn't seem much leeway for him to make money.  I understand the cash flow portion of it, as that is what we do.  We just do not raise capital or borrow money that much anymore.  However, my concern is that when the recession hits and the evictions start, that cash flow will dry up.  He seems to be working on extremely thin margins.  He's also in very lofty areas of Miami; which were the first to go in the last recession.  He reminds me of the Polka King (https://en.wikipedia.org/wiki/Jan_Lewan).

Am I reading into the numbers incorrectly?

 I don't want to comment on Cardone one way or the other but I wanted to note this post - everyone always needs to make sure they do their own research and due diligence. BP works hard to have good podcast guests but one should never assume that just because someone was on the radio they're real or worthwhile. Question everything - make no assumptions. Cardone is famous, but Bernie Madoff was famous too. 

 If you think my motives are to hope everyone thinks for themselves and does their own investigation, you're right. Otherwise, I have no idea what you are talking about. What difference does it make that you know Grant Cardone for 2 years? That's like one of my friends coming by here and saying "Hey, JD's a great guy." How does that influence the price of tea in China? Cardone may be a great guy, and his advice might be spot on - but no one should assume that because he's been on a podcast or written a book. They should come to that conclusion based on their own research and dissemination of his actions and material.

I appreciate your thoughts JD.  I was talking to a friend, last week, who is looking at a syndication deal with a well known syndicator. My point to him was how do you know who the next Bernie Madoff will be?  Ok, so that's an unlikely risk but how do you know the syndicator you invest with won't turn rogue?  My feeling is there is no way to know.  It seems to me length of track record is a good thing to look at. Curious what else would be good factors to look at when evaluating syndicators!?

...if you go to his website at the bottom it says powered by Crowdstreet. All it is, is a white label Crowdstreet site... nothing revolutionary. Just another way Grant markets well and sells well. For non-accredited investors there are other options for Crowdfunding

Honestly, the heavy sales pitch without a lot of detail makes me more than hesitant.

Ive just read his REI book that cost 8 bucks from a facebook add. It left me a bit uncertain about my current plan of finding a 2-4 unit building for my first deal. He sais that deals dont make sense under 16 units. Partly i think becouse a deal smaller than that would be managed by someone that doesent get paid enough of the income to do a good job? But than he sais never leverage more than 70% on a deal, which leaves someone in my position one option which is to invest in his $10000 minimum moneypool kind of thing. Becouse apparently he has access to the deals only the big guys can get.

  Makes me wonder, is it really worth it to start small?            

  

Originally posted by @Nigel Ford :

Ive just read his REI book that cost 8 bucks from a facebook add. It left me a bit uncertain about my current plan of finding a 2-4 unit building for my first deal. He sais that deals dont make sense under 16 units. Partly i think becouse a deal smaller than that would be managed by someone that doesent get paid enough of the income to do a good job? But than he sais never leverage more than 70% on a deal, which leaves someone in my position one option which is to invest in his $10000 minimum moneypool kind of thing. Becouse apparently he has access to the deals only the big guys can get.

  Makes me wonder, is it really worth it to start small?            

  

Always start small, not big.  Always start with a reserve for when the what if scenarios happen. And trust me, they will.  Just remember, if you invest with Cardone, or any other guru, you have little recourse.  However, if you buy a property, at least you have a real asset.  His investments are paper and not backed by anything real.  I am not saying anything is wrong with him or his organization.  Hey, I agree, he's a great showman.  You know who else were great showmen?  B.T. Barnum, Bernie Madoff, and Mark Sanford.  One got away with it, the other two are in jail for life.  If something tends too seem too good to be true, it usually is.

As for holding out for a 16+ unit building?  Hmm, that seems expensive.  If you have the bread to put down 20% - 30%, go for it.  However, most starting out do not.  Nothing wrong with starting off with a flipper, small multi-family, build up reserves and slowly trade up to bigger and better units.  When I started out, I started in the urban areas of New York City and New Jersey.  Now they are sky high, 40 years ago, they were giving them away.  Though, in the C areas of Newark you can find some deals, but it's dangerous down there.  They are not rosy or pretty, but you know what, everyone in a metro area needs to live somewhere, because that is where the jobs are.  Start small and grow slowly.  Cardone, IMHO, is mainly a showman with some really good luck (and timing) in real estate, and that's fine.  I am happy to see another success story.  I get the same rates he does, so they are not only open to him.  I am sure many people here who are seasoned in the industry can get the same rates too.  It's based on the property, location, cash flow and price.  You can still get 3m+ buildings on LIBOR or agency rates, but you will not get them for under 2m.  

Exactly what I thought about it and any other opportunities with a guru. their gonna take the bread and run, than they could say something like; you knew it was risky or you didn't have to trust me. Thanks Calvin

@Nigel Ford I would say there isn't a right or wrong way there's just YOUR way. When I get into apartments I don't intend on starting small, but I do intend on starting with other experienced investors. I personally don't want the hassle of small multifamily, but that doesn't mean there aren't a ton of very successful, very wealthy people who do it.

I also wouldn't call him a guru in the same way I wouldn't call Tim Ferriss or Gary V gurus. I think showman as @Calvin T. said. To me a guru is someone who makes a lot of money offering a "can't miss" type of course. To my knowledge he doesn't have a class just a fund. The fund should have history that you can do due diligence on to track returns and make an informed decision.

Originally posted by @Joe Splitrock :
Originally posted by @JD Martin:
Originally posted by @Nick Britton:
I have personally known Cardone for over 2 years, have you? I question your motives with your post.

Originally posted by @JD Martin:
Originally posted by @Nick Britton:
GC is legit. He was a guest on the Bigger Pockets podcast 3 years ago.

Originally posted by @Calvin T.:

My office received a call from one of his reps today. I thought the pitch was a pie in the sky type of deal.  Anyone hear of this guy on Youtube,  Grant Cardone?  He boasts a half a billion dollar real estate empire in Florida and Texas.  I believe he get's around 90% financing, plus he also takes in money from investors.  Something doesn't seem 100%.   He also does these seminars and other marketing stuff.  He seems all over the place and also trying to raise capital from others.  Just some basic math, if he's financing 90%, paying out at least 6% to investors, and locking in a 3.5% mortgage from Fannie Mae; because he's a preferred client, there doesn't seem much leeway for him to make money.  I understand the cash flow portion of it, as that is what we do.  We just do not raise capital or borrow money that much anymore.  However, my concern is that when the recession hits and the evictions start, that cash flow will dry up.  He seems to be working on extremely thin margins.  He's also in very lofty areas of Miami; which were the first to go in the last recession.  He reminds me of the Polka King (https://en.wikipedia.org/wiki/Jan_Lewan).

Am I reading into the numbers incorrectly?

 I don't want to comment on Cardone one way or the other but I wanted to note this post - everyone always needs to make sure they do their own research and due diligence. BP works hard to have good podcast guests but one should never assume that just because someone was on the radio they're real or worthwhile. Question everything - make no assumptions. Cardone is famous, but Bernie Madoff was famous too. 

 If you think my motives are to hope everyone thinks for themselves and does their own investigation, you're right. Otherwise, I have no idea what you are talking about. What difference does it make that you know Grant Cardone for 2 years? That's like one of my friends coming by here and saying "Hey, JD's a great guy." How does that influence the price of tea in China? Cardone may be a great guy, and his advice might be spot on - but no one should assume that because he's been on a podcast or written a book. They should come to that conclusion based on their own research and dissemination of his actions and material.

Let's keep this in perspective. There have been people on the BP podcast, like Clayton Morris, who have since been accused by BP users of major fraud. I think many people would say Clayton Morris is a great guy. In fact Robert Kiyosaki was on his his podcast a month ago saying great things about Morris (Kiyosaki has never even been on the BP podcast). The point is people vouching for another person doesn't do any good without due diligence. Blind trust is dangerous.

Question for you Nick. You say Grant is a good guy. Does that mean you would stake your personal reputation recommending him? Would you guarantee nobody would lose money investing with him?

I have no personal experience with either Grant or Clayton, so I am not saying either is good or bad. My point is people need to vet out the investment like you would with a total stranger. People have a misguided trust of people just because they are on a podcast.

 Well put.

If you actually read a PPM from Cardone Capital, it will make your head spin. Mandatory capital calls that if you don't contribute, you owe the others that did a 15% loan. This is the classic example of "stay away" taught to beginner investors in syndications. The legalese very heavily favors GC and disfavors the investor, way more so than the dozens of PPMs I have read over the last few years. I love GC as a person because like him, I say what I think and I say it loud. But as an investment? Lets just say.. read the PPM.

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