Grant Cardone / Cardone Capital

166 Replies

Originally posted by @Andrey Y. :
Originally posted by @Axel Meierhoefer:

In the next 10 days it will become obvious that he will not be able to meet his obligations for all his non-federally secured financing while his tenants aren't paying. It's only a matter of a few months until that house of cards will collapse. As several people have said here and on other threads about syndication: "Its easy to make money and look like a magician when the markets keep going up. When they crash, its a totally different story. INvestors at Cardone Capital don't have a right to ask for their money back before the 10 years are done and if the market is trash at the sales point who knows what will happen. I predict the current funds will not make it to 2021. I feel really sorry for all the unaccredited investors Cardone took money from.

 

Do you feel sorry for the accredited investors Cardone took money from?

because of my love of everything about airplanes the only Cardone u tube i have watched was when he was taking ownership of his NEW Gulfstream 550 in 2018  those are 30 to 40 million dollar birds.. his wife ( assume it was his wife) was just giddy.. its a beautiful machine.

wonder if he can keep it or will need to down size .. ?? those machines cost about 30k an hour to operate or so.. I know my little bug smasher cost me 600 an hour all in and it was only a 450k machine..

On another note if his company suffers dramatically you know its going to be all over the news and social media and that wont be good for others in the industry either. 

 

Originally posted by @Jay Hinrichs :
Originally posted by @Andrey Y.:
Originally posted by @Axel Meierhoefer:

In the next 10 days it will become obvious that he will not be able to meet his obligations for all his non-federally secured financing while his tenants aren't paying. It's only a matter of a few months until that house of cards will collapse. As several people have said here and on other threads about syndication: "Its easy to make money and look like a magician when the markets keep going up. When they crash, its a totally different story. INvestors at Cardone Capital don't have a right to ask for their money back before the 10 years are done and if the market is trash at the sales point who knows what will happen. I predict the current funds will not make it to 2021. I feel really sorry for all the unaccredited investors Cardone took money from.

 

Do you feel sorry for the accredited investors Cardone took money from?

because of my love of everything about airplanes the only Cardone u tube i have watched was when he was taking ownership of his NEW Gulfstream 550 in 2018  those are 30 to 40 million dollar birds.. his wife ( assume it was his wife) was just giddy.. its a beautiful machine.

wonder if he can keep it or will need to down size .. ?? those machines cost about 30k an hour to operate or so.. I know my little bug smasher cost me 600 an hour all in and it was only a 450k machine..

On another note if his company suffers dramatically you know its going to be all over the news and social media and that wont be good for others in the industry either. 

 

 Yup, I know the video.

I will be following the coming aftermath very closely indeed.

I am not a fan on Grant Cardone but I know he has a big following.

If he did not flash his lifestyle, talk loud, show off, talk big, ******** like there is no tomorrow he would not have that following.

But to his credit he had found a huge niche where all that stuff sells like hot cakes. So Id give him credit for that. Will I take investment advice or go into any business deal with him, for sure no.

So I guess it’s a catch-22 for the guy. He has to be flashy to get that following. Of course, the following might get smaller if as rumored he files for bankruptcy.

Grant Cardon is winning even if its just because of how much people are talking about him. everyone is making Youtube videos about him and how they hope he fails. i honestly hopes he is success full just for that reason. and if he does he will file bankruptcy and go back to making millions as a sales trainer. 

Originally posted by @Steven Lowe :

Lot of schadenfreude on this thread.  Whether the vitriol being directed at Cardone is justified or not I don't see how it helps anyone.  I do agree that the way he let his employees go was harsh and it will come back to haunt him.  I still enjoy his books.  Never was a fan of his podcast.  For my taste it is far too Wall Street/Boiler Room.  I have found that his books are useful for self motivating.  Never invested with him and wouldn't have anyways because I'm way too hands on for that.  Sincerely hope that anyone who has lost money with him finds some recourse.  Also hope that anyone who worked for him and was let go lands on their feet quickly.   

No one appreciates or wants those investors to feel pain or hurt. However, anyone who's logical would know from the prospectus this offer isn't worth the paper it is printed on. I posted to warn people here about it. I hope I saved some people from the hurt and financial misery that they could (or would) be experiencing right now. Mr. Cardone may have started out with good intentions, but his ego got ahead of himself and the market. He doesn't take care of his employees; heaven only knows how he takes care of his tenants. He fired near a 100 or so employees I hear. Yet, the PPP would had covered them from Feb. 15th - June 30th (I believe).  Mr. Cardone didn't have enough cash in reserves to hold him and his companies over for a bit?  I am willing to bet that his banks called his credit lines and he got scared (anyone would). He had to cut expenses, and the first and prob. largest were the employees.  There's no pleasure in that.

 

Originally posted by @Jay Hinrichs :
Originally posted by @Andrey Y.:
Originally posted by @Axel Meierhoefer:

In the next 10 days it will become obvious that he will not be able to meet his obligations for all his non-federally secured financing while his tenants aren't paying. It's only a matter of a few months until that house of cards will collapse. As several people have said here and on other threads about syndication: "Its easy to make money and look like a magician when the markets keep going up. When they crash, its a totally different story. INvestors at Cardone Capital don't have a right to ask for their money back before the 10 years are done and if the market is trash at the sales point who knows what will happen. I predict the current funds will not make it to 2021. I feel really sorry for all the unaccredited investors Cardone took money from.

 

Do you feel sorry for the accredited investors Cardone took money from?

because of my love of everything about airplanes the only Cardone u tube i have watched was when he was taking ownership of his NEW Gulfstream 550 in 2018  those are 30 to 40 million dollar birds.. his wife ( assume it was his wife) was just giddy.. its a beautiful machine.

wonder if he can keep it or will need to down size .. ?? those machines cost about 30k an hour to operate or so.. I know my little bug smasher cost me 600 an hour all in and it was only a 450k machine..

On another note if his company suffers dramatically you know its going to be all over the news and social media and that wont be good for others in the industry either. 

 Prob. more importantly to see if he's able to keep his wife when the money train pauses or dries up for a bit. They seem very materialistic, so I have a feeling leaving the lux lifestyle would be a problem for both of them to adapt too.

 

Originally posted by @Robert Beardsley :

Grant Cardon is winning even if its just because of how much people are talking about him. everyone is making Youtube videos about him and how they hope he fails. i honestly hopes he is success full just for that reason. and if he does he will file bankruptcy and go back to making millions as a sales trainer. 

Yes, he's winning..  He's winning all the way to bankruptcy court.  He said he didn't PG any of his loans, so it may just be a corp bankruptcy.  The man is now worth less than zero in terms of finances.  Assets are only assets when they produce money.  If one has 500 million in real estate, I am sure they are all mortgaged to 80% - 90% and maybe even have a credit line on the additional 10% - 20% in equity. Several private lenders will take over the additional equity for a 10% - 15% interest rate.  So, if even 50% of his rents are not coming in, what's he going to do?  One can only downsize and cut costs so much.  It should be an interesting experience seeing how he navigates through all this debt and unknowing.

it maybe true that he will file for bankruptcy i have no idea. i was just pointing out that alot of people on BP and Youtube are hoping he fails and in the same sentence saying they feel bad for his investors. maybe a change of attitude  of hope he doesnt fail, because if he doesnt then you wont have to feel bad for his investors. at the end of the day bankruptcy doesn't mean much for someone like him. how many times has Trump filed for bankruptcy? say he does file, well he will go on and do something  else and probably make alot of money again. he is a sales guy and sales people with his talent dont stay down long. my comment also wasn't directed at you so much as it was to others.

I just do not understand how a forum full of so many intelligent Investors could be swept up in such ********.

I told my wife 5 months ago when we started our first airbnb that this guy on yt airbnbautomated who sells courses on renting apartments and renting them out as Airbnb's is gonna get smacked... it is so ****ing obvious. Writing is on the wall. Yet people are too greedy I guess.

Hope those who invested get out with just a red ***, not a noose.

Its a bit premature to write the obituary for Cardone's syndication business. He has a lot of haters but don't forget that Grant has been in the game since the early 2000s. He has bought and sold into this market and had his share of capital gains. He has done significant deals for the last 5+ years as the primary sponsor and purchasing with other people's money. Now I have no clue regarding the reserves, cap rates, and quality of his deals but what I do know is that he has made his in fees and is now staring at potentially 3 years of a buyers market. So save the sorrow, guys like Uncle G. do just fine in times like these. The guys that do not do fine are the posers that set up shop one maybe 2 years ago who instantly became "market experts" and are now in the wrong market and sitting on outrageously overvalued basis and have no strategy but hold and prey. 

Originally posted by @Serge S. :

Its a bit premature to write the obituary for Cardone's syndication business. He has a lot of haters but don't forget that Grant has been in the game since the early 2000s. He has bought and sold into this market and had his share of capital gains. He has done significant deals for the last 5+ years as the primary sponsor and purchasing with other people's money. Now I have no clue regarding the reserves, cap rates, and quality of his deals but what I do know is that he has made his in fees and is now staring at potentially 3 years of a buyers market. So save the sorrow, guys like Uncle G. do just fine in times like these. The guys that do not do fine are the posers that set up shop one maybe 2 years ago who instantly became "market experts" and are now in the wrong market and sitting on outrageously overvalued basis and have no strategy but hold and prey. 

He started in 2010 in real estate syndication, but he did buy a personal residence in 2005 I believe which he later sold.  Prior to that, he was a car salesman.

 

Grant personally will do fine and he will get roasted 10X for awhile. 

He bought some at the top and it is possible they go down 30% next 18 months. Technically he just devalued part of the groups NOI by 20% perhaps with starting to do pay 12 get 15 month lease, but idk his wiggle room there. I don't think this fund is eligible for gov assistance either. Since he already got paid that part of the story is complete.

Originally posted by @Matt R. :

Grant personally will do fine and he will get roasted 10X for awhile. 

He bought some at the top and it is possible they go down 30% next 18 months. Technically he just devalued part of the groups NOI by 20% perhaps with starting to do pay 12 get 15 month lease, but idk his wiggle room there.

Pretty much.  Grant just announced Cardone Capital is also suspending distributions to investors for the next 3 months (April, May and June at a minimum).  Economy certainly won't be back to normal in 3 months so probably will see more suspensions or cuts after June.  


It looks like most of his large apt purchases happened in the last few years, which he likely overpaid.  I believe a good chunk are on 10 yr interest only terms. 

I posted this earlier today on another thread. Probably appropriate for this thread as well:

I have a couple of Grant Cardone books on audible. I like his approach on mindset, sales, etc. I've also watched a couple of Meet Kevin videos 'exposing' cardone's lack of actual real estate background and I wasn't too surprised. He is definitely more carnival barker midwit selling to bozos than harvard mba hedge funder selling to blue bloods.

That said: I know there are discussions about Cardone having stopped paying dividend payments. Again, not too surprising. But I was curious about how his process works, so I watched a few of his videos on the Cardone Capital FAQ page. To see the most interesting video, which I can't link directly to, start here:
https://cardonecapital.com/faq...
then scroll down underneath to "How Long is the Term of the Fund?

So first, the term of the fund is 10 years! Are you kidding me? This term is for everyone, un-accredited and accredited. But I can't imagine anyone with 200k single/300k joint income or 1 million net worth would wrap up money for 10 years with Grant. But anyway, moving on, it gets better. Start watching again at the 1 minute mark. He actually says it may not be 10 years; at his discretion it might 12, or 14 or 16 years. The way he words it, he doesn't put a cap on the time limit, which may not rule out "forever."

Also, even more interestingly, there are two edits: at just after 1:01 there is an edit, where Grant seems to have added this statement about the ten year term. Then another edit at about 1:06 where Cardone goes into the fact it may be 12, 14, 16 or whatever.

An obvious edit isn't so surprising in general, except for the fact that the content added in the edit is so surprising and Grant is pretty much as smooth as they come, basically he's 'one take Grant' who doesn't need a lot of edits.

So the questions are:
1. Did investors know Grant might keep there money for up to 16 years (or more*)?
2. Most importantly, how long can Cardone keep your money? Is it 16 years, the final number he mentioned, or is it forever? Note at no point did he ever say it 'would be no more than 16,' that is just the last number he tossed out.

Obviously this is point is moot if Cardone goes bust in the upcoming multifamily crash. But it probably is important to see if unsaavy, un-accredited investors were roped into something they didn't understand.


Is he really already bankrupt?!? There is a short self shot video Posted 4/15 on YouTube (just google it) Cardone bankruptcy. It’s either 1- a deep fake, 2- a slimy marketing prank by him, 3- the sad truth

Not sure which is reality, but at any rate I’m sure Grant is already on to his latest and greatest marketing ploy. Given the times, perhaps extreme contrition can yield him books/seminars/coaching/etc., aptly titled: Failing 10X!

Originally posted by @Amit M. :

Is he really already bankrupt?!? There is a short self shot video Posted 4/15 on YouTube (just google it) Cardone bankruptcy. It’s either 1- a deep fake, 2- a slimy marketing prank by him, 3- the sad truth

Not sure which is reality, but at any rate I’m sure Grant is already on to his latest and greatest marketing ploy. Given the times, perhaps extreme contrition can yield him books/seminars/coaching/etc., aptly titled: Failing 10X!

probably a stunt, but, apparently, his plane is up for grabs, according to this thread:

https://www.thefastlaneforum.c...

https://www.aircraftdealer.com...

 

Updated about 1 year ago

edit: looks like i've misread the post. this appears to be the old sales brochure for the plane.