Grant Cardone / Cardone Capital

166 Replies

@Calvin T. thanks for feedback. Grant does provide the same tax benefits that he gets, he is very similar to the other asset managers I have talked to. There are several on BP that I have done research on and all syndicators have similar offerings. Some were offering less than him and others offered 1 point more than him but nothing on the upside, so I liked his offering better. The biggest deduction would be depreciation and Grant offers that to the members in the fund based on the percentage they invested so that write-off will apply. I understand that I am relinquishing control of my money to Grant's judgement, and I don't physically own the property but I legally own a piece of the LLC that bought the multiple properties as I own units in that LLC as I invested to become a member of it. I would like to do the way you have done it but I am very new to the field so I talked to a few asset managers to learn from them, and they all do syndications. I will try to connect with you as many aspects you cover in your posts are excellent points.

Originally posted by @Michael Gansberg :

@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.

Just breaking down the facts.  I am very skeptical too on anything that seems way too good to be true.  If this was Warren Buffett, Jamie Dimon, or Larry Fink backed; hey, I'd give it the company the benefit of the doubt.  This is a new entity formed in 2018; it states that in the document.  Yes, GC has been in the market since the crash.  Fine.  Anyone with a half of brain can buy at the bottom and make bank.  He has zero track record in the bad times.  Now, if he owned the properties outright and was sharing in the net proceeds, okay, that gives a buffer.  However, everthing is 90%+ leveraged.  I cannot imagine any seasoned investor giving 100k to this guy.  Again, maybe I am just too skeptical and he may be the Houdini of Real Estate.  I really do not know.  I just wanted to give my .02 cents and break down what I am looking at.  

I will state I can be incorrect and Mr. Cardone has done nothing at all to be considered a fraud or a Ponzi scheme.  However, his offering is highly speculative; as stated in the prospectus provided by Cardone Capital.

@Calvin T. He's too cocky for me most of the time but he know his stuff. But he's killing his investors in the fees he collect. The front, back and the middle. But hell if you got it you got it if your doing all the work you might as well get paid for it. I basically listen to him on how to make and keep your money. If I had the money I would do it myself instead of paying somebody to do it for me

Originally posted by @Adam Mazhar :

@Calvin T. thanks for feedback. Grant does provide the same tax benefits that he gets, he is very similar to the other asset managers I have talked to. There are several on BP that I have done research on and all syndicators have similar offerings. Some were offering less than him and others offered 1 point more than him but nothing on the upside, so I liked his offering better. The biggest deduction would be depreciation and Grant offers that to the members in the fund based on the percentage they invested so that write-off will apply. I understand that I am relinquishing control of my money to Grant's judgement, and I don't physically own the property but I legally own a piece of the LLC that bought the multiple properties as I own units in that LLC as I invested to become a member of it. I would like to do the way you have done it but I am very new to the field so I talked to a few asset managers to learn from them, and they all do syndications. I will try to connect with you as many aspects you cover in your posts are excellent points.

Adam, check with your accountant on that tax deduction. I hope you had legal counsel review this document as well. With 100k, you could had easily gone into a 500k property. I'd call them today after business hours. If you get an okay from both your accountant and legal counsel, then it is what it is. If either question it, you should go over your legal options in requesting your money back. I do not deal with partners, never have aside from the Federal Government, State Goverments and banks. More than one chef in the kitchen, something will eventually fail. Yes, you will own a piece of that LLC. You and all the other members who live outside of Florida. It would cost you more in legal fees than anything else to get your pennies on the dollar back should something blow up.
 

Originally posted by @Kevin Miller :

@Calvin T. He's too cocky for me most of the time but he know his stuff. But he's killing his investors in the fees he collect. The front, back and the middle. But hell if you got it you got it if your doing all the work you might as well get paid for it. I basically listen to him on how to make and keep your money. If I had the money I would do it myself instead of paying somebody to do it for me

Perhaps, no one knows.  I am just being devils advocate.  Afterall, it's not like he's been around prior to the crash.  IIRC correctly, his last two businesses weren't too successful.  He has no track record.  That is what I am trying to explain.  I just say, buyer beware.  He's intelligent and has good charisma.  Does he really have the success to back up what he says?  Maybe, maybe not.  Unless he's showing these investors his financials, no one really knows. 

@Calvin T. If a person can talk faster than me I usually don't trust them. Ijs. I listen because he has come knowledge but like Jay Morrison and Grant. I will listen to the stuff that interest me but they would never get my money

@Calvin T. I checked with accountant and also with GC’s team, they provide a K1 that covers all the deductions and distributions. Also, I checked with attorney, I am an accredited investor and in order to become an accredited investor I had to go through an attorney to start with.  GC’s offering is governed under the laws of SEC, it will be very much like going into a syndication with several people who we know and see on various BP podcasts.

Originally posted by @Adam Mazhar :

@Calvin T. I checked with accountant and also with GC’s team, they provide a K1 that covers all the deductions and distributions. Also, I checked with attorney, I am an accredited investor and in order to become an accredited investor I had to go through an attorney to start with.  GC’s offering is governed under the laws of SEC, it will be very much like going into a syndication with several people who we know and see on various BP podcasts.

 I wish you well then.  Let us know how it works out.

anybody that markets mostly to newbie millennials who live in their parents basement should be looked over . anyone who goes everywhere with his shirt off talking like a punk kid with a foul mouth is not the type of person I want to park my money with .but hey if your happy with 6% then go for it .

@Dennis M. I want a higher return but almost all syndicators I talked to offer around that much for accredited investors, whether it is apartments or mobile home parks, etc. but you share in the upside also, I am looking for infinite returns once I get all my invested capital out, that was the main selling point for me. My other option was to go out on my own and buy a 20 to 40 unit complex which would have resulted in similar ROI and much more time consuming activities to run it myself or through property manager which would not scale as fast as a 400 unit complex. May be the next one I invest in will be on my own once I learn some more about the intricacies of this field.

Originally posted by @Dennis M. :

anybody that markets mostly to newbie millennials who live in their parents basement should be looked over . anyone who goes everywhere with his shirt off talking like a punk kid with a foul mouth is not the type of person I want to park my money with .but hey if your happy with 6% then go for it .

 Good point Denny.

Bottomline: do your due diligence and be very, very careful before you invest.

Originally posted by @Adam Mazhar :

@Dennis M. I want a higher return but almost all syndicators I talked to offer around that much for accredited investors, whether it is apartments or mobile home parks, etc. but you share in the upside also, I am looking for infinite returns once I get all my invested capital out, that was the main selling point for me. My other option was to go out on my own and buy a 20 to 40 unit complex which would have resulted in similar ROI and much more time consuming activities to run it myself or through property manager which would not scale as fast as a 400 unit complex. May be the next one I invest in will be on my own once I learn some more about the intricacies of this field.

 Read the PPM. Personally, it fails my criteria on the first or 2nd page. I don't invest in someone because they talk a good talk on YouTube. I say this as a huge fan of Grant. You could tell he is using his fanbase to get investors, who will invest in deals with crappy terms and heavily in favor of the sponsor. Out of the 50 or so PPMs I've read, Cardone Capital was the easiest decision. Classic red flags all over.

Originally posted by @Adam Mazhar :

@Dennis M. I want a higher return but almost all syndicators I talked to offer around that much for accredited investors, whether it is apartments or mobile home parks, etc. but you share in the upside also, I am looking for infinite returns once I get all my invested capital out, that was the main selling point for me. My other option was to go out on my own and buy a 20 to 40 unit complex which would have resulted in similar ROI and much more time consuming activities to run it myself or through property manager which would not scale as fast as a 400 unit complex. May be the next one I invest in will be on my own once I learn some more about the intricacies of this field.

I see your point ..Well the good news is your in a great position to be in and you have plenty of choices here 

 

@Calvin T.

Its still cash flows no matter what the market is doing. When the market crashes. Hold on to your properties keep the cash flow going. Buy after it crashes and sell when its high. Think long term. Property value always goes up if you think and do things on a long term spectrum.

@Andrey Y. thanks for your feedback Andrey.  I looked at a few PPMs.  In my experience so far, I have not had issues with GC, but I am new at this type of investment, will share with everyone if I see problems later but I think GC is an honest man.  GC has been very responsive, he  gave very good advice to me as I presented him the other options I was looking at. Plus Ryan who works for him was very responsive and explained everything in detail plus shared his personal experiences as an investor on how he started and grew his investments.  Plus his other team members were very helpful also.  I think GC has built a good team around him and I can tell the way he talks and the way he responds to emails, etc. that he himself works very hard, let’s see how things progress.  I will continue to look for other avenues where I can get direct exposure to deals that I can do myself and learn that aspect of this field as well.

Originally posted by @Brenton Smith :

@Calvin T.

Its still cash flows no matter what the market is doing. When the market crashes. Hold on to your properties keep the cash flow going. Buy after it crashes and sell when its high. Think long term. Property value always goes up if you think and do things on a long term spectrum.

Sorry, real estate (nor business) does not work that way.  The only thing that always goes up are taxes.

 

Originally posted by @Isaac Johnson :

@Calvin T. I’d rather not have someone else invest my money

Smart man. I fully agree in using OPM.  However, there is one caveat.  I keep control.  As long as you are in control, you are golden.  In this instance, Mr. Cardone is using the OPM and has 100% control.  Not an good strategy for an active investment in my opinion. 

Originally posted by @Gerhard Listander :

I really enjoy reading all the comments that talk down about Grant and Cardone Capital, especially the ones that have no facts to them.

I referenced my facts as per his perspectus.  However, I never talked down about anything in regard to Mr. Cardone or Cardone Capital.  Just breaking it down in lamens terms for all to understand.  However, people are welcomed to use my references as they wish.  It's not my money.  Just remember, advice is usually worth what a person pays for it.  Take all advice with a grain of salt and do your own due diligence.