Cardone Capital what are your thoughts?

Question

I’m sure everyone has heard of Grant Cardone and Cardone Capital. I haven’t invested in any real estate so far. Im trying to decide if I should go at it on my own or invest with GC.

My local market in central NY, suburb of Syracuse is not great with a lot of old homes and very high property taxes. I’m also not super handy.

Part of me thinks doing it on my own could be better for better returns while another part thinks investing with him in major assets and really having no time commitment is the better way to go. I’m 32 years old so I’ve got a long time to retirement.

Any advice here would be greatly appreciated!

Jake

Elliott Milek · Answer

@Jake Wiley

If your looking for syndication type deals I would reach out to Omar Khan here on bigger pockets. His deals are better than grants who takes 75% of the capital gains when thy sell the property.

Spencer Gray · Answer

Grant is a very exciting guy and obviously great salesperson. I am not personally familiar with how Cardone Capital operates but from what I understand you pay a premium to be in one of his deals.

He also goes after A and A+ deals with relatively low cash flow compared to what a lot of other syndications are pursuing in the C+ B range. His reasoning, I believe, is that it's a more certain exit as they're all institutional quality assets. Just make sure that strategy aligns with yours.

If you want to invest in a syndication rather than going it alone I would at least try and connect with a few other quality sponsors/syndicators and compare their strategy, track record, and deal structures.

Chase McArthur · Answer

@Jake Wiley

Personally I think Uncle G is hilarious. I've sat and watched some of his YouTube shows, guy's pretty decent. Would I invest with him? Nope. Not because I think he's a sham but because there are better deals to be had. GC is one of those guys just smart enough to get you into trouble. He is the type of guy to blow in head first then figure things out. And the truth be told, he can afford to do that at this point simply because his primary source of capital is from his $10k a ticket "hype-you-up" conferences, book sales, and his sales training programs. REI is his hobby, not his passion. You wouldn't take financial advice from a bank teller so why would you take REI advice from a car salesman (no offense GC).

He's an expert marketeer, bottom line. He appeals to the (and I mean this in the nicest way possible) less sophisticated investor. He's not in jail or bankruptcy court so he is legit thus far, but I highly recommend that you do all that you can to be a more informed investor before you start giving Uncle G your lunch money.

Alina Trigub · Answer

@Jake Wiley

Welcome to BP!

If you take your question one step further and do a simple search on BP, I can assure you will get plenty of results as this question has been asked many times in the past. Here's one example: https://www.biggerpockets.com/forums/432/topics/598322-grant-cardone-cardone-capital

Also, to give you my two cents: investing with CC is like buying Lexus. If you care a lot for the brand name then go for it (keep in mind you will be overpaying for the brand name!) Otherwise Toyota will do just as well.

Spencer Gray · Answer

@Jake Wiley I just took a look at Cardone Capital's offering of their Fund IV and Fund V including going through their operating agreement and PPM. They are offering a 6% preferred return with a 65/35 split of cash flow. The funds are, from what I read, completely open ended in terms of what they can and invest in including the ability to invest in assets other than Multifamily. LPs also have more limited rights than other operating agreements that I have read for similar deals.

None of this means that CC is a bad investment, that's up to the individual. But like @Alina Trigub said you're paying for his brand, and not only will the Toyota also get you there, in this case it may get you there faster.

Kay Kay Singh · Answer

@Jake Wiley I started investing in syndication 3 years ago and have invested in 8 syndications so far and I started with Grant Cardone Capital and soon realized that Grant is a great sales person and has a lot of institutional money flowing after him because they do not want to take much risk and happy with low return on their investment,so grant targets institutional money and will definitely take yours too but you will get a low ROI as compared to other smaller syndicators .

Charles Dobens · Answer

Jake, my question to you would be how much are you looking to invest? DO NOT ANSWER THAT! My point is that if you are not looking to invest with enough to be your own sponsor, then working through a fund may be a good way to start. If your objective is to be your own sponsor, then HOARD YOUR CASH and learn as much as you can about the business. Obviously, my recommendation is lacking many points that would be important to making a solid determination but the best advice is when in doubt, DON'T!

Bryan Mitchell · Answer

It would be interesting to compare a $50,000 investment in your own deal for a duplex versus the same amount in a syndication. If you have guaranteed returns in a syndication of $500 a month and then they cash out in 10 years and you get a 10% return with an equity position or $60,000, I’d think that would be acceptable. If you find that deal, let me know!

Robin Casper · Answer

@Jake Wiley I invest in Auburn Ny and am doing very well there. It has a  Large inventory of multi family houses and even though they are old, they just don’t build them like that anymore.

Cardone Capital what are your thoughts?

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