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?
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...
@Reid Mathews if you are looking for passive real estate investing opportunities it may be in your interest to investigate Fundrise (full disclosure: i do invest with them). They are promoted by BP and is open to non-accredited investors (BP should have an active promo link somewhere). I believe I saw in earlier posts that Cardone was offering 6% returns, Fundrise is in the scope of 8%-12% with a minimum $500 buy in. Further, I think you will probably find better returns than Cardone with a number of syndications around BP high teens, low twenties...the initial buy in may be a little steeper.
I am a huge Cardone fan, I use his sales training platform at work and love his content - I have not investigated his investment products but from what I am seeing here it does not seem that attractive.
Best of luck!
@Reid Mathews I think people got off track to your original ask here. I would check into whomever you are thinking of investing with, first what type of Apartments do they invest in, Class A, B, C or D. Are they a value add investor - looking for something to fix with or on the property itself or are they investing for appreciation - meaning they buy high and hold for 5-10+ years and "hope" that the real estate goes up in value, instead of creating the value. I would ask "Grant" in this example what type of investor he is. I have heard - and this is just me saying this - that he over pays for assets and uses appreciation to create value. Now, check that out for yourself. I would listen to every Podcast he has recorded to get a good idea of his strategy.
Another point is are you looking at learning the syndication or private money business to do it yourself some day? If so is the group you plan on investing with, like Grant's going to let you "look under the hood" sort of say? Or are they just going to email you your money and that is it.
Good question and hope this helps.
@John Nachtigall
You are kidding right!?
You are asking why when you invest in a real estate fund, your money is safer if it is not secured against just one property (like Cardone does) and instead it is secured against several properties in a fund (like MIGSIF) where they have very low debt ratio of any
Well because when your money is secured against several types of properties in several locations your money is more secure and not so vulnerable like when it is secured against just one property
Your example of the savings and loans does not even make any sense. They over loaned on individual properties that were not worth as much, so when the market went down, they lost it all especially that their federal leverage was 10-1
Cardone is way over leveraged - he gets interest only loans in b markets on properties where he does minor due diligence - it is when if the market goes down but more like “when” the market goes down, his separate entities will just go bankrupt! Good luck getting a little if your money back
Market does not even have to go down, all that has to happen for him to collapse is his loans start amortizing (where the principal and the interest got to be paid monthly) he won’t make it on many of his properties- he is trying now to sell some of his old deals and if he gets out, there is no upside! So the returns are more like 6% for people who waited 5 years
That is not bad - soon though, since interest is going up, he won’t get out with a break even so investors will get a capital call just to get out!
Totally thrown off by @Don Konipol. Again, to reiterate what others are saying, there is no need to attack his profession especially when his originally post had nothing to do with his profession and rather he was seeking advice from others on this awesome platform. If you don't have anything useful to say or any advice why even comment?
@Reid Mathews I have also been looking into Cardone Capital. Think it can be a solid investment but again returns might not be the best that you could get. However, is cool to say you are part of something Grant is doing.
@Chris Mason @Don Konipol
There are many people that call themselves “financial advisors”. I chose that one based on what BiggerPockets allowed me to choose; however, that is what I consider myself. I have my life and health license and my series 65 license. I have passed my RICP (Retirement Income Certified Professional) and my CLTC (Certified Long Term Care) designations. Yes, I specialize in the insurance products so you could definitely call me an insurance salesman if you want, but we could do managed money, too. Financial advisors get paid by either commissions or fees, but regardless we’re all selling something. I personally prefer to sell the safe money insurance products because I don’t know what the stock market is going to do!
***regardless though this post was asking about Grant Cardone’s company offering passive real estate investments. I’m definitely not advertising my services here because this is a real estate site and I do not sell real estate and have absolutely zero ways to profit from it except investing my personal money in it, and I do not know near enough about it to make a solid investment which is why I love this site and the education it provides!
Don't let them gang up on you. EVERYONE is selling something every day. Whether selling their house, on a job interview, a date, a conversation, whatever, everyone is a damn salesman. We all try to put our best foot forward. Nothing to be ashamed of.
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
Flipping is a JOB. Investing in a syndication is an investment - and a passive one at that. Working professionals typically don't have the time to flip, and the ones that do, don't want to flip houses.