Cardone Capital...anyone looked into this?

126 Replies

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Originally posted by @Account Closed :

whats to follow Cardone is a master raiser of money.   The more he raises the more he makes.

What's wrong with that Chimpo?  Are you here as an investor to make more money...or to tear down other investors?

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Whats the cold hard truth thats so bad? He raises money, makes X% from money raised while buying and managing assets with raised money for others who in turn make X% return. What a bad bad man.

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What bothers me about the GC method of purchase is the buy it for whatever price and sell it for more later no matter what model. Doesn't seem like he strives for purchasing at a discount or for distressed seller situations.  As long as it's large enough to have a pool and a gym. LOL

Just from listening to some of his REI podcast, haven't analyzed any DD docs or anything deep.

Originally posted by @Chimpo Takasaki:

Another product im not a FAN of-  Whole LIFE insurance policies?  Im not against the person its the product.

Another one-Arthur Fonazarelli n Tom Selleck pushing  reverse mortgages.   Not a big fan.

 what about Poncherelly selling CAL Pines.. how many lots do you own there.. ???

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@Brad Park Did you get any updates since your post ? There is no phone number to call ? Seems strange to have people invest over $100k and not have a way to contact someone on the phone . I imagine even if you could you wouldn’t be getting Cardone on the phone . Since it’s just been one year 11% return sounds decent as I’m assuming there hasn’t been a sale of property /exit yet . Although I don’t know how the deals with Cardone are structured . Best of luck

@Jade S. It seems lean, but as @Omar Khan mentioned, he's got such a huge following that he can get investors at those terms whereas others may have to offer more. It also comes down to a comfort level that you feel like you know him and when you are giving someone $100K+, comfort can play a big role in that decision.

I personally enjoy listening to his shows on Mondays and think he's great. Thanks for posting this topic, I really enjoyed the responses.

While I like Grant in a unique way, remember his is an expert SALESMAN. Last I knew it took 100K to get it, but he said he was trying to lower it and still stay legal under SEC laws.

Originally posted by @Dan Romnek :

@Jade S. It seems lean, but as @Omar Khan mentioned, he's got such a huge following that he can get investors at those terms whereas others may have to offer more. It also comes down to a comfort level that you feel like you know him and when you are giving someone $100K+, comfort can play a big role in that decision.

I personally enjoy listening to his shows on Mondays and think he's great. Thanks for posting this topic, I really enjoyed the responses.

Dan, I couldn’t agree more.  GC does have a large following of “hustlers” who wanna be “ballers” one day.  I also occasionally listen to his podcasts on real estate when I’m on the road.  His pumping of Cardone Capital has certainly increased significantly over the past 18 months, and a proportion of that large podcast following has almost certainly been willing to invest with him.  

@Jade S.  Thanks for creating this thread. I’ve really enjoyed reading it. I’ve listened to CG’s podcast and read multiple books of his. He is a machine and is due respect; however, as a syndicator I believe there are better investing options. Listening to his podcast he indicates he overpays for his assets because he believes he’s going to make money as markets increases in value. This may be true, but as a syndicator, you should have a fiduciary responsibility to your investors and it doesn’t seem like he has this mindset with his comments. Additionally, timing of market cycles or when his note becomes due could eventually bite him in the butt.

@Brad Park – 11% return is a healthy return in one year, but it’s really scary now that he’s not continually updating you or you can’t contact him. We provide our investors with monthly financials and an email explaining the financials and what occurred during the month. We have quarterly and yearly meetings to discuss the investment in depth and how to improve operations thus increasing income. If you have not received yearly financials how do you provide the information to your accountant? Do you only receive a K-1?

@Omar Khan is a bright savvy investor. Luckily, I’ve spoken with him on multiple occasions and he knows real estate and the underwriting process. I recommend everyone listen to his advice especially if you are a newbie.

This is the first time I’ve heard GC wanting to bring in sophisticated (non-accredited) investors into his deals. It is a simple process and requires a different filing with the SEC. The SEC will allow 35 non-accredited investors in a deal depending on the filing. This is surprising he would bring in non-accredited investors since he preaches he will not accept people who have filed lawsuits against someone. Statistically, non-accredited investors are far more likely to sue than accredited investors if a deal goes south.

One thing that has not been mentioned in this thread is GC buys properties in high quality areas. Since he is buying higher class assets than many syndicators his returns should be lower. Beginner finance teaches us that the riskier an investment is the higher returns the investment should achieve. Since he is dealing with less risky investments (better tenant profile, better location, etc) his overall return should be lower. If he is producing double digit cash on cash, IRR, or annual ROI on a consistent basis kudos. A newbie or a person who is more risk averse could feel more comfortable investing in this type of a project than a deep value add or a project in a less desirable area.

@Jade S. I agree with @Dan Romnek As an investor myself, Its better to sit down with a Real Estate investor and get to meet each other. What I do is that I take out private lenders out for a coffee or a lunch. If a lender doesn't feel comfortable with the RE Investor, the lender will continuously contact the RE investor where his money is at. That why when dealing with lenders, their has to be a trustful relationship. I am sure GC has great returns, but sometimes dealing with local RE Investors, you could get higher ROI because we want our private lenders to come back and refer us to their friends. Relationships are meant to help eachother out and trust. 100k is a chunk of money, so what I would do is find local REI and fund their deals. Contracts will protect both of you. Hope this helped.

@Omar Khan is totally correct. First GC is a legit guy doing legit deals. They are snoozers that in my opinion would not be the first choice of a sophisticated investor.  Over the last few years you could have thrown darts at a dartboard and likely made money in MF.  That is not to say he isn't adding value or there is anything wrong with it.  I also think his payout structure is not something that an experienced investor would find appealing. Having said all that, if you wanted to throw your money and try to learn backwards, that would be fine.  As for the crowdfunding platforms, I used to represent one and all I can tell you is just because someone puts a 9 instead of 6 where the return is, does not make it better.  In fact, I would be immediately suspect of someone claiming a 9 right now.  At least GC's 6 is plausible.  

I had the pleasure to hear Grant Cordone speak at AIMNATCON (Apt Investing Mastery Nat Conv - a Brad Sumrok event).  GC is one heck of a speaker!  

I had not heard of GC until about a month before the event when an investor friend's son mentioned him.  So I googled.  

* 5000 doors and $1B in assets.  So that sound a lot like $200K a door.  Not the arena I intend to play in.  

* On his website he listed a couple dozen example deals and what the intend to distribute, around 10% plus or minus.  He did not list any big money from a sale, so no idea where that goes.

To put that in perspective, I am a passive investor in MF syndications.  I have invested passively in 35 deals, 10 of which have sold.  Currently, I am in 3850 doors in the remaining 25 deals (a small percentage of each - it sound pompous, but that is the way we express it).   The average annualized (investment weighted) yield has been 30.9% (This is like the bank CD's APY).  This includes the distributions and the sale of the property.  The normal Cash-on-Cash seems to be about 8%-10%, so the big lump is at the sale.

As I see in, in GC system, Grant gets rich and the investors do OK.  I work with Brad Sumrok.  He teaches folks to be Sponsors - they can get rich pretty quick.  As a passive investor, I am constrained by what I have to invest.  There have been about 60 millionaires created in the group (including me) in the last several years.  Brad is not a charity; he charges a fee for training and mentoring;  like all GYM memberships, if you don't use it, it wasn't worth it.  

BTW, I have not had a down deal yet.  

Regards,

Charles LeMaire

Originally posted by @Charles LeMaire :

I had the pleasure to hear Grant Cordone speak at AIMNATCON (Apt Investing Mastery Nat Conv - a Brad Sumrok event).  GC is one heck of a speaker!  

I had not heard of GC until about a month before the event when an investor friend's son mentioned him.  So I googled.  

* 5000 doors and $1B in assets.  So that sound a lot like $200K a door.  Not the arena I intend to play in.  

* On his website he listed a couple dozen example deals and what the intend to distribute, around 10% plus or minus.  He did not list any big money from a sale, so no idea where that goes.

To put that in perspective, I am a passive investor in MF syndications.  I have invested passively in 35 deals, 10 of which have sold.  Currently, I am in 3850 doors in the remaining 25 deals (a small percentage of each - it sound pompous, but that is the way we express it).   The average annualized (investment weighted) yield has been 30.9% (This is like the bank CD's APY).  This includes the distributions and the sale of the property.  The normal Cash-on-Cash seems to be about 8%-10%, so the big lump is at the sale.

As I see in, in GC system, Grant gets rich and the investors do OK.  I work with Brad Sumrok.  He teaches folks to be Sponsors - they can get rich pretty quick.  As a passive investor, I am constrained by what I have to invest.  There have been about 60 millionaires created in the group (including me) in the last several years.  Brad is not a charity; he charges a fee for training and mentoring;  like all GYM memberships, if you don't use it, it wasn't worth it.  

BTW, I have not had a down deal yet.  

Regards,

Charles LeMaire

 Good write up, Charles.  It seems like GC’s deals are a bit thinner than I would like myself.  I’ve been doing some due diligence on a few syndicated deals recently, but haven’t pulled the trigger just yet.  No doubt GC has created his “Baller Following” that aspire to eight and nine figure net worths.

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