Grant Cardone / Cardone Capital

166 Replies

@Calvin T.

I just saw Grant Cardone speak last weekend at the National Achievers Congress with Tony Robbins. He was one of the headliners with ************* and Daymond John. Grant was advertising Cardone University.

Originally posted by @Rachel Ca:

@Calvin T.

I just saw Grant Cardone speak last weekend at the National Achievers Congress with Tony Robbins. He was one of the headliners with ************* and Daymond John. Grant was advertising Cardone University.

 Not saying GC doesn't have name recognition. However, that's not a person showing their work in terms of success. Here are some other speakers who promised riches and stole from others:

Bernie Madoff (Jail)

Mark Stanford (Jail)

Jordan Belford (Rat & Free)

Don Lepre (Suicide because he was going to go to jail)

Lou Pearlman (Jail)

Scott Rothstein (Jail)

All did public speaking tours and promised others riches.  Please note, I am not at all saying in any way, shape or form that GC is or has any part of one.  However, going from zero to have a billion dollars in a few years..  Hmm, not too sure.  Anyone who does the math, he's living and working off of 100% credit.  Everyone knows he's leveraged up to 90% (he's disclosed this many times) because he gets "special rates".  I am just concerned members and visitors of BP will see GC, watch his videos, believe in his pitch, lay down tens of thousands of dollars (which most don't have) and be left up sh--ts creek without a paddle.  I've been here for a while and I've been to various group functions around NYC.  I've always suggested people start slow and low.  This, of course, is completely opposite of what GC suggests with a minimum of 16 units.  Even 16 units in the worse areas of NJ or CT would be over a million dollars.  It's just not feasible; let alone logical for anyone to risk.  Real Estate is not supposed to be a casino.  Yes, more properties = more leverage.  However, that doesn't mean they are making money.  

Here's a short story that I was involved with years ago.  I know this developer in Queens, NY.  He bought buildings up during the craziness of the 2004 -2008 market.  Didn't care about the price, because everything keeps on going up.  He'd actually refinance quite often in order pull out the new value.  Right before the crash, he had near 30 million in real estate investments.  When the recession hit, he had no reserves, no credit lines, rents were late, etc.  All in all, he lost every one of those buildings and was near bankruptcy.  It also cost him his marriage and family as well. I see this happening again. Stick to the numbers.  Stick to slow and low.  Have ample reserves (GC's reserves are these funding vehicles where he raises money. They are backed by nothing.)  It's basically unrated commercial paper.  This Cardone Capital is very risky and anyone with any experience in real estate; especially the bad times, would tell you to stay far away.

I am just here posting logic and reason. If Cardone Capital and Grant Cardone were such good investments, he'd have them rated by Standard & Poors, SIPC or Moody's.  However, no outside agency has reviewed these offerings.  It's buyer beware.  An investor is not even covered by SIPC if he goes bankrupt.

This is not a wise investment. If it was, he'd be pulling in much lower loan rates from Wall Street where the hedge funds and brokers would buy in.  Simon Property Group just raised 100 million at a little less than 2%, yet Cardone Capital is offering between 6% - 15%.  This is considered high risk and highly speculative.  It's basically junk commercial paper.

Stay away.

For any deal with Cardone Capital, read the SEC filing. All the info you need will be in the specific filing.

The lawyer who handle one or more of the SEC filings is a BP member.

@John Corey The lawyer that handle one or more of the SEC is BP member ;)

I’m a BP member as well ;) LOL  I couldn’t pass that one up. 

Originally posted by @John Corey :

For any deal with Cardone Capital, read the SEC filing. All the info you need will be in the specific filing.

The lawyer who handle one or more of the SEC filings is a BP member.

 Here you go Mr. Corey. 

https://www.sec.gov/Archives/edgar/data/1741665/000147793218003316/cardone_1a.htm#RISK%20FACTORS

I love these few snippets:

1)We are an emerging growth company organized in May 2018 and have not yet commenced operations, which makes an evaluation of us extremely difficult. At this stage of our business operations, even with our good faith efforts, we may never become profitable or generate any significant amount of revenues, thus potential investors have a possibility of losing their investment.


2)This offering is a blind pool offering, and therefore, Members will not have the opportunity to evaluate some of our investments before we make them, which makes investments more speculative.


3)Our Manager will have complete control over the Company and will therefore make all decisions over which Members will have no control.

4)An investment in the Interests is highly illiquid. You may never be able to sell or otherwise dispose of your Interests.

5)Rising expenses could reduce cash flow and funds available for future acquisitions.

6)Our properties may not be diversified.

7)The failure of our properties to generate positive cash flow or to sufficiently appreciate in value would most likely preclude our Members from realizing an attractive return on their Interest ownership.

Everyone else can read the offering if they wish. It basically a junk bond or junk commercial paper. Junk in terms of, as it reads, highly speculative (Wall St. terminology).  

At the end of the day, if you want to make it big you have to do it yourself. A few percentage here and there off of $100k or whatever you want to use for such funds will never set you financially free. Sure it starts to make a big difference when you are using over $1M, but they don't let you do that for obvious reasons. 

Originally posted by @Jonathon Weber :

At the end of the day, if you want to make it big you have to do it yourself. A few percentage here and there off of $100k or whatever you want to use for such funds will never set you financially free. Sure it starts to make a big difference when you are using over $1M, but they don't let you do that for obvious reasons. 

Following from the above, it might make much greater financial sense to use the $100K for marketing and company operations than invested in a building. You will not make it big a deal at a time when starting with $100K. While you can make a great profit off individual deals, going big requires scale and a lot of OPM. 

 

Originally posted by Account Closed The lawyer that handle one or more of the SEC is BP member ;)

I’m a BP member as well ;) LOL  I couldn’t pass that one up. 

Cool, tells us more about how you can handling a SEC filing. I could not pass up asking given you put your hat in the ring. 

Originally posted by @Calvin T.:
Originally posted by @John Corey:

For any deal with Cardone Capital, read the SEC filing. All the info you need will be in the specific filing.

The lawyer who handle one or more of the SEC filings is a BP member.

 Here you go Mr. Corey. 

https://www.sec.gov/Archives/edgar/data/1741665/000147793218003316/cardone_1a.htm#RISK%20FACTORS

I love these few snippets:

1)We are an emerging growth company organized in May 2018 and have not yet commenced operations, which makes an evaluation of us extremely difficult. At this stage of our business operations, even with our good faith efforts, we may never become profitable or generate any significant amount of revenues, thus potential investors have a possibility of losing their investment.

2)This offering is a blind pool offering, and therefore, Members will not have the opportunity to evaluate some of our investments before we make them, which makes investments more speculative.

3)Our Manager will have complete control over the Company and will therefore make all decisions over which Members will have no control.

4)An investment in the Interests is highly illiquid. You may never be able to sell or otherwise dispose of your Interests.

5)Rising expenses could reduce cash flow and funds available for future acquisitions.

6)Our properties may not be diversified.

7)The failure of our properties to generate positive cash flow or to sufficiently appreciate in value would most likely preclude our Members from realizing an attractive return on their Interest ownership.

Everyone else can read the offering if they wish. It basically a junk bond or junk commercial paper. Junk in terms of, as it reads, highly speculative (Wall St. terminology).  

A good filing will definitely be a CYA exercise. So the investors are really put off if they are concerned about risks. Those who do invest will know they have been warned. 

Originally posted by @Calvin T.:
Originally posted by @John Corey:

For any deal with Cardone Capital, read the SEC filing. All the info you need will be in the specific filing.

The lawyer who handle one or more of the SEC filings is a BP member.

 Here you go Mr. Corey. 

https://www.sec.gov/Archives/edgar/data/1741665/000147793218003316/cardone_1a.htm#RISK%20FACTORS

I love these few snippets:

1)We are an emerging growth company organized in May 2018 and have not yet commenced operations, which makes an evaluation of us extremely difficult. At this stage of our business operations, even with our good faith efforts, we may never become profitable or generate any significant amount of revenues, thus potential investors have a possibility of losing their investment.

2)This offering is a blind pool offering, and therefore, Members will not have the opportunity to evaluate some of our investments before we make them, which makes investments more speculative.

3)Our Manager will have complete control over the Company and will therefore make all decisions over which Members will have no control.

4)An investment in the Interests is highly illiquid. You may never be able to sell or otherwise dispose of your Interests.

5)Rising expenses could reduce cash flow and funds available for future acquisitions.

6)Our properties may not be diversified.

7)The failure of our properties to generate positive cash flow or to sufficiently appreciate in value would most likely preclude our Members from realizing an attractive return on their Interest ownership.

Everyone else can read the offering if they wish. It basically a junk bond or junk commercial paper. Junk in terms of, as it reads, highly speculative (Wall St. terminology).  

 The law firm listed: "Trowbridge Sidoti LLP is providing legal services relating to this Form 1-A"

Idk jack squat about GC offerings although I imagine top shelf syndicates never need to advertise, much less have boiler room sales. Proven syndicates already have more on waiting list I think as the track record speaks for itself. GC aggressive noobs investors marketing is a bad sign imo. One BP dude said it before " Grant is a stone cold hustler" not necessarily bad and is what it is. 

Originally posted by @Matt R. :

Idk jack squat about GC offerings although I imagine top shelf syndicates never need to advertise, much less have boiler room sales. Proven syndicates already have more on waiting list I think as the track record speaks for itself. GC agressive noobs investors marketing is a bad sign imo. 

They see his celebrity and perceived wealth and all they envision is all the money they will make. Fact of the matter is money is mostly made in your own transactions.  Yes, once you get to a certain point, you can place the funds in the market and do very well too.  However, the intial million, as they say, is the hardest.  After that, you parlay that into other investments and income producing vehicles.  There isn't an exact science to this, however, it's best to have five separate avenues of income.  Therefore, if one or two go south, the other three can support you, your business and your reserves. 

Originally posted by @John Corey :
Originally posted by @Calvin T.:
Originally posted by @John Corey:

For any deal with Cardone Capital, read the SEC filing. All the info you need will be in the specific filing.

The lawyer who handle one or more of the SEC filings is a BP member.

 Here you go Mr. Corey. 

https://www.sec.gov/Archives/edgar/data/1741665/000147793218003316/cardone_1a.htm#RISK%20FACTORS

I love these few snippets:

1)We are an emerging growth company organized in May 2018 and have not yet commenced operations, which makes an evaluation of us extremely difficult. At this stage of our business operations, even with our good faith efforts, we may never become profitable or generate any significant amount of revenues, thus potential investors have a possibility of losing their investment.

2)This offering is a blind pool offering, and therefore, Members will not have the opportunity to evaluate some of our investments before we make them, which makes investments more speculative.

3)Our Manager will have complete control over the Company and will therefore make all decisions over which Members will have no control.

4)An investment in the Interests is highly illiquid. You may never be able to sell or otherwise dispose of your Interests.

5)Rising expenses could reduce cash flow and funds available for future acquisitions.

6)Our properties may not be diversified.

7)The failure of our properties to generate positive cash flow or to sufficiently appreciate in value would most likely preclude our Members from realizing an attractive return on their Interest ownership.

Everyone else can read the offering if they wish. It basically a junk bond or junk commercial paper. Junk in terms of, as it reads, highly speculative (Wall St. terminology).  

A good filing will definitely be a CYA exercise. So the investors are really put off if they are concerned about risks. Those who do invest will know they have been warned. 

There are only two entities making money on this deal, GC and the attornies.  It's garbage.  I've invested in plenty of preferred stocks, private offerings, convertible notes and commercial paper; so I actually know what I am reading.  However, these are UNDERWRITTEN by major firms and have insurance.  Or, at the very least, back buy the full faith of the entity (GSE bonds) or corporation (ExxonMobil, Goldman Sachs, General Motors, etc.).  There is no CYA analysis needed.  I just pointed out a few items which are completely one sided; there are plenty more.  

The issue is, the people with wealth and experience would touch this with a 10 foot pole.  The only one's who would are the newbie's or people w/o much experience.  This is not GC showing you the ropes.  This is you giving GC your hard earned money with little chance of making a fair return. Yea, it's buyer beware, but how anyone can offer this to the public knowing it's complete garbage is unbelievable.  When enough people get taken to the cleaners, I see a class action law suit and an SEC investigation in the coming future.  Sorry to say, but most lawyers are not worth the paper this is written on.  What a racket.  

Originally posted by @Calvin T.:
Originally posted by @John Corey:
Originally posted by @Calvin T.:
Originally posted by @John Corey:

For any deal with Cardone Capital, read the SEC filing. All the info you need will be in the specific filing.

The lawyer who handle one or more of the SEC filings is a BP member.

 Here you go Mr. Corey. 

https://www.sec.gov/Archives/edgar/data/1741665/000147793218003316/cardone_1a.htm#RISK%20FACTORS

I love these few snippets:

1)We are an emerging growth company organized in May 2018 and have not yet commenced operations, which makes an evaluation of us extremely difficult. At this stage of our business operations, even with our good faith efforts, we may never become profitable or generate any significant amount of revenues, thus potential investors have a possibility of losing their investment.

2)This offering is a blind pool offering, and therefore, Members will not have the opportunity to evaluate some of our investments before we make them, which makes investments more speculative.

3)Our Manager will have complete control over the Company and will therefore make all decisions over which Members will have no control.

4)An investment in the Interests is highly illiquid. You may never be able to sell or otherwise dispose of your Interests.

5)Rising expenses could reduce cash flow and funds available for future acquisitions.

6)Our properties may not be diversified.

7)The failure of our properties to generate positive cash flow or to sufficiently appreciate in value would most likely preclude our Members from realizing an attractive return on their Interest ownership.

Everyone else can read the offering if they wish. It basically a junk bond or junk commercial paper. Junk in terms of, as it reads, highly speculative (Wall St. terminology).  

A good filing will definitely be a CYA exercise. So the investors are really put off if they are concerned about risks. Those who do invest will know they have been warned. 

There are only two entities making money on this deal, GC and the attornies.  It's garbage.  I've invested in plenty of preferred stocks, private offerings, convertible notes and commercial paper; so I actually know what I am reading.  However, these are UNDERWRITTEN by major firms and have insurance.  Or, at the very least, back buy the full faith of the entity (GSE bonds) or corporation (ExxonMobil, Goldman Sachs, General Motors, etc.).  There is no CYA analysis needed.  I just pointed out a few items which are completely one sided; there are plenty more.  

The issue is, the people with wealth and experience would touch this with a 10 foot pole.  The only one's who would are the newbie's or people w/o much experience.  This is not GC showing you the ropes.  This is you giving GC your hard earned money with little chance of making a fair return. Yea, it's buyer beware, but how anyone can offer this to the public knowing it's complete garbage is unbelievable.  When enough people get taken to the cleaners, I see a class action law suit and an SEC investigation in the coming future.  Sorry to say, but most lawyers are not worth the paper this is written on.  What a racket.  

Yep. That is why he pitches Cardone Capital to lower income folks and not the super rich. Get them to believe they need to earn more (they do) but the avenue to making more is to use his tool - Cardone Capital. It's simply a legal sales pitch he does like his Cardone University. 

I know what the guy is doing and don't hat him for it, but there are plenty of people out there that don't realize that the $50M plane was a tax move paid by the company, not himself. Smart people like Ben Mallah will rent out a private plane for a thousand dollars for a real estate deal, not spending $50M as a tax move. 

I have my doubts Grant even uses 1031, but he might. 

I've ran the numbers on what giving him $400k would do for me. It's doubtful it would even make me $24K a year. I can make more than that by buying a single note and for $400k I could make a lot more than $24K in one year. 

 

Originally posted by @Jonathon Weber :
Originally posted by @Calvin T.:
Originally posted by @John Corey:
Originally posted by @Calvin T.:
Originally posted by @John Corey:

For any deal with Cardone Capital, read the SEC filing. All the info you need will be in the specific filing.

The lawyer who handle one or more of the SEC filings is a BP member.

 Here you go Mr. Corey. 

https://www.sec.gov/Archives/edgar/data/1741665/000147793218003316/cardone_1a.htm#RISK%20FACTORS

I love these few snippets:

1)We are an emerging growth company organized in May 2018 and have not yet commenced operations, which makes an evaluation of us extremely difficult. At this stage of our business operations, even with our good faith efforts, we may never become profitable or generate any significant amount of revenues, thus potential investors have a possibility of losing their investment.

2)This offering is a blind pool offering, and therefore, Members will not have the opportunity to evaluate some of our investments before we make them, which makes investments more speculative.

3)Our Manager will have complete control over the Company and will therefore make all decisions over which Members will have no control.

4)An investment in the Interests is highly illiquid. You may never be able to sell or otherwise dispose of your Interests.

5)Rising expenses could reduce cash flow and funds available for future acquisitions.

6)Our properties may not be diversified.

7)The failure of our properties to generate positive cash flow or to sufficiently appreciate in value would most likely preclude our Members from realizing an attractive return on their Interest ownership.

Everyone else can read the offering if they wish. It basically a junk bond or junk commercial paper. Junk in terms of, as it reads, highly speculative (Wall St. terminology).  

A good filing will definitely be a CYA exercise. So the investors are really put off if they are concerned about risks. Those who do invest will know they have been warned. 

There are only two entities making money on this deal, GC and the attornies.  It's garbage.  I've invested in plenty of preferred stocks, private offerings, convertible notes and commercial paper; so I actually know what I am reading.  However, these are UNDERWRITTEN by major firms and have insurance.  Or, at the very least, back buy the full faith of the entity (GSE bonds) or corporation (ExxonMobil, Goldman Sachs, General Motors, etc.).  There is no CYA analysis needed.  I just pointed out a few items which are completely one sided; there are plenty more.  

The issue is, the people with wealth and experience would touch this with a 10 foot pole.  The only one's who would are the newbie's or people w/o much experience.  This is not GC showing you the ropes.  This is you giving GC your hard earned money with little chance of making a fair return. Yea, it's buyer beware, but how anyone can offer this to the public knowing it's complete garbage is unbelievable.  When enough people get taken to the cleaners, I see a class action law suit and an SEC investigation in the coming future.  Sorry to say, but most lawyers are not worth the paper this is written on.  What a racket.  

Yep. That is why he pitches Cardone Capital to lower income folks and not the super rich. Get them to believe they need to earn more (they do) but the avenue to making more is to use his tool - Cardone Capital. It's simply a legal sales pitch he does like his Cardone University. 

I know what the guy is doing and don't hat him for it, but there are plenty of people out there that don't realize that the $50M plane was a tax move paid by the company, not himself. Smart people like Ben Mallah will rent out a private plane for a thousand dollars for a real estate deal, not spending $50M as a tax move. 

I have my doubts Grant even uses 1031, but he might. 

I've ran the numbers on what giving him $400k would do for me. It's doubtful it would even make me $24K a year. I can make more than that by buying a single note and for $400k I could make a lot more than $24K in one year. 

 

Ben is a good guy. He has a Youtube channel following his life in Real Estate.  I believe it is called Koncrete.  As for Crapdone Capital, that 6% is not necessarily a min.  You may get at least 6%, but that is gross of his management fees or any other fees being charged.  In addition, it could also be just return of your capital.  Return of capital just means that he's returning a portion of your investment with zero gain, but you may also invoke a tax consequence.  You also can receive nothing.  Finally, you receive zero depreciation on the real estate asset; yet he does.  No deal as Howie Mandel says.  


6% straight on an insured bond, not bad at all though.  Good luck finding that these days...  You can get some tax-free munis @ 3% - 4% or high grade corps @ 3% - 5%.  Of course, there are some risks there too.  Nothing is 100% safe.  Though, I must say, the more I read and dive into the Crapzone Capital, the more I am just amazed of the facade.


 

Originally posted by @Calvin T.:
Originally posted by @Jonathon Weber:
Originally posted by @Calvin T.:
Originally posted by @John Corey:
Originally posted by @Calvin T.:
Originally posted by @John Corey:

For any deal with Cardone Capital, read the SEC filing. All the info you need will be in the specific filing.

The lawyer who handle one or more of the SEC filings is a BP member.

 Here you go Mr. Corey. 

https://www.sec.gov/Archives/edgar/data/1741665/000147793218003316/cardone_1a.htm#RISK%20FACTORS

I love these few snippets:

1)We are an emerging growth company organized in May 2018 and have not yet commenced operations, which makes an evaluation of us extremely difficult. At this stage of our business operations, even with our good faith efforts, we may never become profitable or generate any significant amount of revenues, thus potential investors have a possibility of losing their investment.

2)This offering is a blind pool offering, and therefore, Members will not have the opportunity to evaluate some of our investments before we make them, which makes investments more speculative.

3)Our Manager will have complete control over the Company and will therefore make all decisions over which Members will have no control.

4)An investment in the Interests is highly illiquid. You may never be able to sell or otherwise dispose of your Interests.

5)Rising expenses could reduce cash flow and funds available for future acquisitions.

6)Our properties may not be diversified.

7)The failure of our properties to generate positive cash flow or to sufficiently appreciate in value would most likely preclude our Members from realizing an attractive return on their Interest ownership.

Everyone else can read the offering if they wish. It basically a junk bond or junk commercial paper. Junk in terms of, as it reads, highly speculative (Wall St. terminology).  

A good filing will definitely be a CYA exercise. So the investors are really put off if they are concerned about risks. Those who do invest will know they have been warned. 

There are only two entities making money on this deal, GC and the attornies.  It's garbage.  I've invested in plenty of preferred stocks, private offerings, convertible notes and commercial paper; so I actually know what I am reading.  However, these are UNDERWRITTEN by major firms and have insurance.  Or, at the very least, back buy the full faith of the entity (GSE bonds) or corporation (ExxonMobil, Goldman Sachs, General Motors, etc.).  There is no CYA analysis needed.  I just pointed out a few items which are completely one sided; there are plenty more.  

The issue is, the people with wealth and experience would touch this with a 10 foot pole.  The only one's who would are the newbie's or people w/o much experience.  This is not GC showing you the ropes.  This is you giving GC your hard earned money with little chance of making a fair return. Yea, it's buyer beware, but how anyone can offer this to the public knowing it's complete garbage is unbelievable.  When enough people get taken to the cleaners, I see a class action law suit and an SEC investigation in the coming future.  Sorry to say, but most lawyers are not worth the paper this is written on.  What a racket.  

Yep. That is why he pitches Cardone Capital to lower income folks and not the super rich. Get them to believe they need to earn more (they do) but the avenue to making more is to use his tool - Cardone Capital. It's simply a legal sales pitch he does like his Cardone University. 

I know what the guy is doing and don't hat him for it, but there are plenty of people out there that don't realize that the $50M plane was a tax move paid by the company, not himself. Smart people like Ben Mallah will rent out a private plane for a thousand dollars for a real estate deal, not spending $50M as a tax move. 

I have my doubts Grant even uses 1031, but he might. 

I've ran the numbers on what giving him $400k would do for me. It's doubtful it would even make me $24K a year. I can make more than that by buying a single note and for $400k I could make a lot more than $24K in one year. 

 

Ben is a good guy. He has a Youtube channel following his life in Real Estate.  I believe it is called Koncrete.  As for Crapdone Capital, that 6% is not necessarily a min.  You may get at least 6%, but that is gross of his management fees or any other fees being charged.  In addition, it could also be just return of your capital.  Return of capital just means that he's returning a portion of your investment with zero gain, but you may also invoke a tax consequence.  You also can receive nothing.  Finally, you receive zero depreciation on the real estate asset; yet he does.  No deal as Howie Mandel says.  

6% straight on an insured bond, not bad at all though.  Good luck finding that these days...  You can get some tax-free munis @ 3% - 4% or high grade corps @ 3% - 5%.  Of course, there are some risks there too.  Nothing is 100% safe.  Though, I must say, the more I read and dive into the Crapzone Capital, the more I am just amazed of the facade.



I would rather finance the entire development costs of a low income home for $115K and split 50-50 with the developer for a sale price of $175k and bank that money and repeat it with several homes a year.

@Calvin T. He is not for everyone. I think experienced investors do not need him nor like what he offers. He fits the ultra passive investor who just wants to be part of something. Newbies also seem to like him because he motivates, teaches etc. He is all over the place but it works for him I guess. His leverage is way above anything I personally believe in nor would get into, he makes the money I would assume on fees and the exit.

Originally posted by @Jonathon Weber :
Originally posted by @Calvin T.:
Originally posted by @Jonathon Weber:
Originally posted by @Calvin T.:
Originally posted by @John Corey:
Originally posted by @Calvin T.:
Originally posted by @John Corey:

For any deal with Cardone Capital, read the SEC filing. All the info you need will be in the specific filing.

The lawyer who handle one or more of the SEC filings is a BP member.

 Here you go Mr. Corey. 

https://www.sec.gov/Archives/edgar/data/1741665/000147793218003316/cardone_1a.htm#RISK%20FACTORS

I love these few snippets:

1)We are an emerging growth company organized in May 2018 and have not yet commenced operations, which makes an evaluation of us extremely difficult. At this stage of our business operations, even with our good faith efforts, we may never become profitable or generate any significant amount of revenues, thus potential investors have a possibility of losing their investment.

2)This offering is a blind pool offering, and therefore, Members will not have the opportunity to evaluate some of our investments before we make them, which makes investments more speculative.

3)Our Manager will have complete control over the Company and will therefore make all decisions over which Members will have no control.

4)An investment in the Interests is highly illiquid. You may never be able to sell or otherwise dispose of your Interests.

5)Rising expenses could reduce cash flow and funds available for future acquisitions.

6)Our properties may not be diversified.

7)The failure of our properties to generate positive cash flow or to sufficiently appreciate in value would most likely preclude our Members from realizing an attractive return on their Interest ownership.

Everyone else can read the offering if they wish. It basically a junk bond or junk commercial paper. Junk in terms of, as it reads, highly speculative (Wall St. terminology).  

A good filing will definitely be a CYA exercise. So the investors are really put off if they are concerned about risks. Those who do invest will know they have been warned. 

There are only two entities making money on this deal, GC and the attornies.  It's garbage.  I've invested in plenty of preferred stocks, private offerings, convertible notes and commercial paper; so I actually know what I am reading.  However, these are UNDERWRITTEN by major firms and have insurance.  Or, at the very least, back buy the full faith of the entity (GSE bonds) or corporation (ExxonMobil, Goldman Sachs, General Motors, etc.).  There is no CYA analysis needed.  I just pointed out a few items which are completely one sided; there are plenty more.  

The issue is, the people with wealth and experience would touch this with a 10 foot pole.  The only one's who would are the newbie's or people w/o much experience.  This is not GC showing you the ropes.  This is you giving GC your hard earned money with little chance of making a fair return. Yea, it's buyer beware, but how anyone can offer this to the public knowing it's complete garbage is unbelievable.  When enough people get taken to the cleaners, I see a class action law suit and an SEC investigation in the coming future.  Sorry to say, but most lawyers are not worth the paper this is written on.  What a racket.  

Yep. That is why he pitches Cardone Capital to lower income folks and not the super rich. Get them to believe they need to earn more (they do) but the avenue to making more is to use his tool - Cardone Capital. It's simply a legal sales pitch he does like his Cardone University. 

I know what the guy is doing and don't hat him for it, but there are plenty of people out there that don't realize that the $50M plane was a tax move paid by the company, not himself. Smart people like Ben Mallah will rent out a private plane for a thousand dollars for a real estate deal, not spending $50M as a tax move. 

I have my doubts Grant even uses 1031, but he might. 

I've ran the numbers on what giving him $400k would do for me. It's doubtful it would even make me $24K a year. I can make more than that by buying a single note and for $400k I could make a lot more than $24K in one year. 

 

Ben is a good guy. He has a Youtube channel following his life in Real Estate.  I believe it is called Koncrete.  As for Crapdone Capital, that 6% is not necessarily a min.  You may get at least 6%, but that is gross of his management fees or any other fees being charged.  In addition, it could also be just return of your capital.  Return of capital just means that he's returning a portion of your investment with zero gain, but you may also invoke a tax consequence.  You also can receive nothing.  Finally, you receive zero depreciation on the real estate asset; yet he does.  No deal as Howie Mandel says.  

6% straight on an insured bond, not bad at all though.  Good luck finding that these days...  You can get some tax-free munis @ 3% - 4% or high grade corps @ 3% - 5%.  Of course, there are some risks there too.  Nothing is 100% safe.  Though, I must say, the more I read and dive into the Crapzone Capital, the more I am just amazed of the facade.



I would rather finance the entire development costs of a low income home for $115K and split 50-50 with the developer for a sale price of $175k and bank that money and repeat it with several homes a year.

Certainly an option. However, just remember, diversifying is key. We do development, property management, self storage, NNN leases and residential. In addition, we offer others hard money and purchase insured bonds and commercial paper from blue chip companies and US municipalities. I cannot stress enough for everyone to be diversified.

 

Originally posted by @Niv Levi :

@Calvin T. He is not for everyone. I think experienced investors do not need him nor like what he offers. He fits the ultra passive investor who just wants to be part of something. Newbies also seem to like him because he motivates, teaches etc. He is all over the place but it works for him I guess. His leverage is way above anything I personally believe in nor would get into, he makes the money I would assume on fees and the exit.


 Agreed.  I am just trying to warn others to read the fine print; that is all.  I hate seeing good people fall down the rabbit hole in business because they just didn’t know.  While this is real life monopoly, there are also real life consequences for not doing your own due diligence...  Sadly, some people are just in awe of the guy and think he will guide them risk free to easy money.  Doubtful.

@Calvin T.

He’s likely making a minimal AM fee, I’m sure 100bps on committee equity and I’d guess he’s just banking on the carry/promote when the asset sells. It’s just the typical Private equity/syndicator model.

GC is very responsive, I have talked to him couple of times and exchanged emails with him, he is very helpful and advised me to not waste time or money on smaller deals (20 units) as I am new in this field and he suggested that there will be much higher and faster returns on the deals if I participate in the deals that he is doing due to the size and scale. I did the calculations and it works out about the same going with him vs going on my own as he plans to return all the capital upon exit which might happen within 3 to 4 years from refinance and then there will be infinite return on that deal. He offers 6% preferred return to accredited investors plus 65/35 split on returns above that. He does all the work, takes the debt, finds the deals, manages the deals, he is an asset manager and that is who I was looking for. I have invested with him, let’s see how it goes, from my interactions with GC and his team, I find them trustworthy and very organized and hard working folks, I will let everyone know how things progress.

To address what $$ GC is taking out of these deals...

The last time I looked.

1% acquisition fee.

1% annual fund management fee.

1% fee at sale.

35-50% of any net profit from proceeds of sale.

First rights to manage the property and whatever fees/payment structure he deems fair for that.

So, win/lose/sideways investment it’s a win-win-win for GC. If it goes bad, then he makes a little money. If it goes well he takes a huge chunk of the profits.

There are certainly better investments out there. As others have stated, its a great investment for GC probably not as great for the investors. He’s in the deal for 0$ after they’re funded as far as I know

Originally posted by @Adam Mazhar :

GC is very responsive, I have talked to him couple of times and exchanged emails with him, he is very helpful and advised me to not waste time or money on smaller deals (20 units) as I am new in this field and he suggested that there will be much higher and faster returns on the deals if I participate in the deals that he is doing due to the size and scale. I did the calculations and it works out about the same going with him vs going on my own as he plans to return all the capital upon exit which might happen within 3 to 4 years from refinance and then there will be infinite return on that deal. He offers 6% preferred return to accredited investors plus 65/35 split on returns above that. He does all the work, takes the debt, finds the deals, manages the deals, he is an asset manager and that is who I was looking for. I have invested with him, let’s see how it goes, from my interactions with GC and his team, I find them trustworthy and very organized and hard working folks, I will let everyone know how things progress.

I wish you the best of luck.  The main problem in your numbers is that when you do it, you actually OWN THE REAL ESTATE.  Here, you OWN NOTHING.  Son, I've been doing this for over 40 years and have grown my company from an apt in the Bronx to a portfolio across six States all owned 100% outright.  Believe who you want.  However, I am not asking for any money from you.  I am just laying things on the line.  It may work out very well and you will be off to the races.  However, I wouldn't give this guy nor anyone else 100k with that prospectus.  You have ZERO OWNERSHIPNO TAX ADVANTAGES.  

You know, I learned something years ago and I will share it with the community free of charge.  Pipedreams are nice, but tend not to be reality.  One only learns a costly lesson after the house of cards they've built has cratered in on to itself.  When the dust settles, you need to build back up.  With that knowlede you will then hopefully know not to trust in fake promises, gurus or pipedreams.

I wish you luck my friend, and hope I am truly wrong about this "deal" (somehow, I fear I am not. consider it advice from someone who has been around the block a few million times).

 

Originally posted by @Jonathan Nixon :

To address what $$ GC is taking out of these deals...

The last time I looked.

1% acquisition fee.

1% annual fund management fee.

1% fee at sale.

35-50% of any net profit from proceeds of sale.

First rights to manage the property and whatever fees/payment structure he deems fair for that.

So, win/lose/sideways investment it’s a win-win-win for GC. If it goes bad, then he makes a little money. If it goes well he takes a huge chunk of the profits.

There are certainly better investments out there. As others have stated, its a great investment for GC probably not as great for the investors. He’s in the deal for 0$ after they’re funded as far as I know

 So, he's making, at a minimum, 3 million dollars off of a 100 million dollar offering.  Sweet deal for Mr. Cardone.  He's a business man, I'll give him that.

@Calvin T. - thanks for pulling that from Edgar. I've been enjoying this thread for 15 minutes now; between investing in one of Cardone's offerings, or putting cash in an index fund, REIT, CD, investment property, or on black at the roulette table, I'd choose any of the latter over the former. I can't imagine putting my money into a black box investment vehicle without any control over if/when it ever becomes liquid. Yeah, I'm a skeptical, cynical New Yorker, and it's served me well.