Cardone Capital Investing

Financial Advisor · Myrtle Beach, SC · Member since 2018 · 16 posts · 57 votes

I’m a huge Grant Cardone fan and have been for a long time. I’ve been debating for awhile whether to get into real estate investing on my own or investing in his crowdfunding company Cardone Capital. He sure makes it sound incredible. What are some of yalls opinions?

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Brian BurkePro Member

Investor · Santa Rosa, CA · Member since 2012 · 2k+ posts · 7k+ votes

There are two kinds of people in the real estate fundraising/syndication business. Good operators, and good marketers. They aren't often found together, most of the time they are one or the other.

If you are fundraising, and you are a good marketer, you are going to make your offering sound amazing.

If you are a good operator, you are going to talk about risk and assumptions and markets and variables...stuff that doesn't sound amazing at all but shows that you are prudently acknowledging those elements of the business and, if you are a really good operator, have a plan to address them.

I guess that's why I suck at marketing...

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Elliott Milek
Accountant · Ottawa, Ontario · Member since 2013 · 55 posts · 12 votes
7y
@Reid Mathews
I follow Grant like most people do, but his numbers aren’t that great. Especially when you read the fine print of his deals that him and his companies get at least 75% of the capital gains when the property is sold.
As an “investor” in his deals your taking most the risk and receiving very little profit. If your new I would team up with a few local investors to help your learn the game and make a bit more money as well.
1 Reply
Jess White
Rental Property Investor · San Jose, CA · Member since 2018 · 152 posts · 159 votes
7y
@Jay Hinrichs That’s fair. I can definitely see the part of how some only buy in the Midwest because it’s the “highest cash flow”, and how that isn’t always the best move. This is why I enjoy these forums, we get all kinds of different perspectives. What better alternatives would you say newer investors have, with less risk? As you mentioned before.
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Reid Mathews
OP
Financial Advisor · Myrtle Beach, SC · Member since 2018 · 16 posts · 57 votes
7y
Originally posted by @Taylor Smith:
@Reid Mathews so do you understand the infinite banking concept?
Yes I do! I am 100% using it in my strategies. I am 3 years in so pretty soon it will be very beneficial for me. The downsides to it are you have to make a commitment of a certain amount of money (whatever you want it to be) every year before it really starts performing well. I'm a very conservative investor and do not like losing money so the whole life insurance is one of my favorites but I really want to get involved with real estate because if you know what you're doing, it sounds like real estate is by far the best investment tool out there. Whole Life is the best savings tool and real estate is the best investment tool (in my opinion)! But money and investments are a very gray area that's for sure!
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John McMullen
Rental Property Investor · Columbus, OH (columbus oh) · Member since 2018 · 3 posts · 0 votes
7y
@Don Konipol Please take your negativity and nonsense rant (literally nonsense) elsewhere. This has absolutely nothing to do with his question.
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Redgy Saint-Germain
Rental Property Investor · Boston, MA · Member since 2017 · 241 posts · 135 votes
7y
@Reid Mathews
It all depends on your end goal, I follow Grant closely and he`s changed my mindset about " thinking too small" for that I will forever be grateful that's about it. I don`t buy into the premise that SFH is nonsense, that you need to save 100k before you start investing blah blah. if you don't want to do the work, learn about real estate and build your empire then investing with Grant may be an option but if you`re trying to learn about the industry GET BETTER RETURNS im talking about north of 10-15% I would suggest you look elsewhere.
Within the last couple months I can tell you my ROI have been way more than what I would get had I invested 100k with him plus I got to learn a LOT MORE, networked with some incredible people. Your money will be stuck into a deal for a good 10 years and may not even double at 6% unless he pays a bonus. With 2-4 flips your money can double in less than 12 months so you do the math.
At the end of the safe it's all about your end goal. Hope this was helpful bud
Redgy
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Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
7y
Originally posted by @Jess White:
@Jay Hinrichs That’s fair. I can definitely see the part of how some only buy in the Midwest because it’s the “highest cash flow”, and how that isn’t always the best move. This is why I enjoy these forums, we get all kinds of different perspectives.
What better alternatives would you say newer investors have, with less risk? As you mentioned before.
I think some of the crowdfund sites that allow non accredited investors and small denominations 1k.. are something to look at .
Same with note funds .. REITS etc.. you can spread small dollars and not risk having all your capital in one property .
I have always said on BP if your going into the rental game in areas with historic low to no appreciation.. and your in the camp of investors that say ( appreciation is luck or bonus I just want cash flow) then those types of investments you need scale. and by scale I mean you need 10 doors as quick as you can get them in my mind.. just so if you have a vacancy or a bad turnover your not in financial jeopardy .. and if you think your going to make 200 a door based on all your numbers .. ( and in reality you may but you also may make half of that) at least your making somewhere between 1k to 2k a month clear.. and each year you can add another one.. or you can ( and this is again what I would recommend) you take that 24k a year and payoff one mortgage note .. those that really do well at this either have lots of scale or paid off homes.. I mean what would you rather have 10 homes paid for with rents ( for easy math) at 1k a month and say your net is between 500 and 750 depending on whether you self manage. so 5k to 7500 a month.. or how many doors at 100 to 200 a month do you need to get to the same net cash flow.. 25 to 35 homes or doors.. So there you are with massive debt and now you have to cap ex and manage all those different houses to get to the same net.. Now if its in an area of some historic appreciation I get that. you are making large gains on leveraged assets.. but for those with the mind set of its all about cash flow.. I like the no debt and limited number of doors making the greatest net cash flow gain.. but that's me.. I will say though friends clients and colleagues I know that's where they are at minimum debt maximum cash flow.
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David Campbell
Investor · San Diego, CA · Member since 2017 · 190 posts · 117 votes
7y
@Paul B. Ok maybe it'd be more apt to say "offering" vice "guaranteeing." I've not read "the documents" and I think you were taking literally what was meant to be taken figuratively.
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Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
7y
Originally posted by @Evan Coburn:

@Jay Hinrichs what place is that called? I’m located in oregon
send me a PM its not appropriate to name the company on the open forum
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Don KonipolBusiness Member
Investor · The Woodlands TX / Avon, CT · Member since 2009 · 6k+ posts · 10k+ votes
7y
Originally posted by @John McMullen:
@Don Konipol Please take your negativity and nonsense rant (literally nonsense) elsewhere. This has absolutely nothing to do with his question.
20 plus votes seem to indicate many don't consider my exposure of an industries false and misleading marketing as being nonsense. Further, I don't think you're in a position to speak as if you are the arbiter of this forum. Stating your own opinion is fine. Telling me how and what I can post on this forum is not. Please don't overstep your authority or knowledge
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Anudeep Yapala
Rental Property Investor · Chandler, AZ · Member since 2017 · 39 posts · 9 votes
7y
@Reid Mathews I cannot talk about Grant as i personally din't invest in his funds but read and heard his podcasts. Very informative and great person, fond of his marketing strategies.
In general about your MF investment, I personally invest passively and actively do MF Syndication deals.
So when you look at the investments identify your goals, risk/returns and time frame. Then look for Markets that you like to invest in, research the market, identify the local MF syndicators, research on their past deals, talk to investors who were part of their investments and look in to their current offerings, projections on rents or value add is it realistic to market, do some basic analysis on offering market rents, crime, jobs, developments, population in that area.
It sounds a lot of work but it is not as it sounds for a smart guy like you who work with numbers. End of the day its your hard earned money and do what is best for your money. Due diligence is the most
important thing, always compare multiple offerings in the same market by different Syndicators to get an idea. Happy to help, feel free to PM me if you have any questions. Happy New Year and Happy Investing.
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Kevin M.
Specialist · Missoula, MT · Member since 2016 · 73 posts · 44 votes
7y
@Reid Mathews I'll be at the 10xGrowthCon this year. Woot Woot! I love Grant, I love him spamming my inbox every hour and a half. You have to admire his enthusiasm and "Who has my money attitude." But the truth is no matter how fancy someone dresses up the pig, the old addage, "If you want something done right you have to do it yourself" always rings true. Time is the one consumable no one has enough of.
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Nate Marshall
Real Estate Consultant · Evergreen, CO · Member since 2018 · 1k+ posts · 734 votes
7y
@Dennis M. Yep. 6% is pretty weak. 8-10% is the minimum I would invest in.
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Charles Kao
Specialist · Grand Rapids, MI · Member since 2016 · 1k+ posts · 611 votes
7y
@Brian Burke I could not agree more. Luckily nobody is calling you a hater for pointing out what I've been saying for a long time. The reality is when it has come to light, alot of is these
marketers and coaches make
more coaching or managing than the investments themselves.
1 Reply
Ryan Beasley
Real Estate Agent · Augusta, GA · Member since 2017 · 83 posts · 46 votes
7y
@Don Konipol Don, what are you gaining from attacking Reid on this? Shouldn’t you be doing something more productive than discrediting someone? Try lifting people up and if you can’t find anything positive to say then just focus on sweeping your own front porch.
3 Reply
Cody L.
Rental Property Investor · San Diego, CA · Member since 2013 · 3k+ posts · 4k+ votes
7y
Originally posted by @Reid Mathews:

I’m a huge Grant Cardone fan and have been for a long time. I’ve been debating for awhile whether to get into real estate investing on my own or investing in his crowdfunding company Cardone Capital. He sure makes it sound incredible. What are some of yalls opinions?
Buy your own. I know 4-5 people personally who own more, are worth more, and do better than GC. You’ve just never heard of them. I’m talking $50m of property equity. $250+k/month positive cash flow. Etc.
GC is basically a YouTuber / syndicator. A personality.
0 Reply
Cody L.
Rental Property Investor · San Diego, CA · Member since 2013 · 3k+ posts · 4k+ votes
7y
Originally posted by @Kevin M.:
@Reid Mathews I'll be at the 10xGrowthCon this year. Woot Woot! I love Grant, I love him spamming my inbox every hour and a half. You have to admire his enthusiasm and "Who has my money attitude." But the truth is no matter how fancy someone dresses up the pig, the old addage, "If you want something done right you have to do it yourself" always rings true. Time is the one consumable no one has enough of.
The guy has his own conference? Geeze. I didn’t realize he had such super fans. Good on him I suppose. I’ve never read his book(s)(?) it seen more than the occasional YouTube snip.
I always thought he was an investor and was a bit let down to see he was mostly (at least now) a syndicator. Which to me is meh
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Alex Bacon
Rental Property Investor · Vicenza, Italy · Member since 2017 · 70 posts · 43 votes
7y
Hey @Reid Mathews,
Personaly, if you're just looking to invest a little and want to get a decent return I'd say the 6% or whatever you'd get back is ok. I agree with @Marjeanne Fields and a few others, Cardone does give off the cool factor and he's a hell of a marketer and sales man but do your dudilegence and make sure you look around plenty of syndications. I enjoy watching some of his videos on occassion and he does break down the numbers really well. If you're looking to really grow your weath through investing in real estate I'd say either look for your own deals or partner up one way or another. Get to know people in a certain area who can be boots on the ground partners, financial partners, etc there's plenty of people on BP looking to partner and get the next big deal.
Oh, also, call me whatever TF you want as long as I'm get the pay I want/desrve, and I'm doing what I enjoy while I build my investments. These days job titles are so mix, matched and overused. Who isn't a VP, engineer, advisor of some company anymore. Not sure how/why your post got flipped and turned into some random unimportant discussion about job titles but hey, you are whoever you say you are just keep collecting that paycheck and working on investing. :D
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Michael Akbar
Real Estate Investor · saint louis, MO · Member since 2009 · 6 posts · 0 votes
7y
@Brian Burke that was well said. Very powerful statement!
0 Reply
Prashant Sheth
Rental Property Investor · Member since 2017 · 75 posts · 19 votes
7y
@Reid Mathews there are other companies that offer better returns. Look into Lifestyles unlimited as an example. I have friends who invest with them I haven't personally used their services.
0 Reply
Paul B.
Rental Property Investor · Dallas, TX · Member since 2015 · 501 posts · 504 votes
7y
Originally posted by @David Campbell:

@Paul B. Ok maybe it'd be more apt to say "offering" vice "guaranteeing." I've not read "the documents" and I think you were taking literally what was meant to be taken figuratively.
Fair enough....but there are a number of newbies on this thread who might not know the difference (i.e. that a preferred return does not guarantee anything, and there are in fact drawbacks to such a structure), so my post would still be beneficial to them.
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John Rodriguez
San Clemente, CA · Member since 2017 · 5 posts · 1 vote
7y
You tube has a good video called Grant Cardone exposes by Meet Kevin.
0 Reply
Dassi Lazar
Realtor · Baltimore, MD · Member since 2018 · 53 posts · 46 votes
7y
@Reid Mathews what's your goal? I buy properties for several reasons not just a cash on cash return. If that's all your looking for and your happy with 6% talk to me I'll give you more😉 SerIously though
Reasons to get into investing/rentals:
- tax benefits
- long term appreciation
- leverage your money (some of my properties I have zero dollars/even pulled money out and making $400/door).
- higher returns (more headaches/work involved)
-etc...
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David Campbell
Investor · San Diego, CA · Member since 2017 · 190 posts · 117 votes
7y
@Paul B. Good point(s).
1 Reply
Matt R.
Sherman Oaks, CA · Member since 2013 · 3k+ posts · 2k+ votes
7y
Here is a video of the house GC flipped in Cali for a few mil profit. (4 mil? or 6 I forget in 24 months? live in flip)
https://vimeo.com/34338392
1 Reply
Joseph Bramante
Developer · Houston, TX · Member since 2017 · 161 posts · 134 votes
7y
Originally posted by @Brian Burke:

There are two kinds of people in the real estate fundraising/syndication business. Good operators, and good marketers. They aren't often found together, most of the time they are one or the other.
If you are fundraising, and you are a good marketer, you are going to make your offering sound amazing.
If you are a good operator, you are going to talk about risk and assumptions and markets and variables...stuff that doesn't sound amazing at all but shows that you are prudently acknowledging those elements of the business and, if you are a really good operator, have a plan to address them.
I guess that's why I suck at marketing...
I have that same problem, though i have hired a company to market our investment offerings to bridge the gap.
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