All Forum Posts by: Andrey Y.

Andrey Y. has started 114 posts and replied 1826 times.

Originally posted by @Jade S.:

I was in his mentorship program last year. I paid attention. If anyone is thinking about investing w GC passively...you just need some better exposure to deals. I have a large number of friends and high level business partners that would NEVER go a quarter without an investor update. A conscientious operator will often give monthly updates...even if its just pics, plans, or promises. It's an investors kind of HGTV...we want to see our beautification. It also help comfort people. If I took 100K off your hands wouldn't you be just slightly uncomfortable...just a little?

It seems like he let his plan slip and another friend of mine who is syndicator caught it too. He bought a property with HIS cash then sold it for a $25M premium to his investors. He DID not disclose this...when I realized what he did...and yes...gave 7% with his 35/65 split I was floored.

He broke his word throughout the program, when things would fail he'd laugh it off and make another rule like, "No Negativity". Well, that good and all...but...then anyone who expresses any discord with his message he'd put down. Never engaged in conversation. Controlled every second he could. It was sad that by day two of his conference I realized that he had been near me so many times and I didn't care to turn around.

His conference did have value...but not in his conference, or message, or investment ploys.

The people that follow him are passionate! Many have become great friends of mine. But, if you love being sold constantly, then being high pressured into EVERYTHING.

After studying him it was often that I saw him do and say things that lead me to seeing that he has a scarcity mindset. The same for the guys who talks about all the units he controls (when its really a company you work for...owned by a number of people you've never met).

We are about to see a **** show in multifamily investing. I know people who are COACHING syndications and have never done one. They are speaking at conferences. People are also investing in their projects.

Grant is opening up his investments to non-accredited investors because (I'm hoping) the accredited AND sophisticated investors are the ones are walking away. People trust what they know. But, the trend is personalization, connection, and balance. This is where business is going in the next 3-5 years. If you are looking to invest, find someone who will allow you to get to know them, who communicates with you (I raised a measly $45k and the borrower was instructed to give us monthly reports because we know what our investors want, he almost ruined the relationship when he didn't follow through and raised his voice at me telling me that my investors don't know what he knows). My investors are normally other real estate investors who want a better deal, with better treatment, cause no one should be reduced to being a faceless number unless they want to be. Some syndicators are inviting the investors to learn along their investment.

Moral of the story, take your time finding the right operator. The right team can raise a diamond from the dirt, a **** team could ruin Rodeo Drive.

Note the factual number of posts removed. Most likely inappropriate, but NUMEROUS. That's not normally a good sign. Maybe, just maybe...they were expressing...negativity?

Unless you like NLP being used on you.

Interesting perspective, Meghan. Although I have felt that the equity return on investment from GC’s offerings seemed a bit more “thin” compared to several deals I’ve been looking at via my wealth advisor, the angle of basically selling an investment he had to investors at a large premium is rather interesting! Opening up to non accredited investors is another interesting move. He makes it sound like he is “helping the average Joe” get into deals previously only available to accredited investors, and I think that could have resonance with many who want to get into multi family investing. After all...it’s the “sexy” asset class everyone wants, yes? (Another reason I have moved into investing in flex industrial properties)

Flex-industrial eh? Please, do tell more.

1 Vote

Originally posted by @Redgy Saint-Germain:

@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

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.

0 Votes

Originally posted by @Reid Mathews:

@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.

0 Votes

Originally posted by @Joe Splitrock:

Originally posted by @JD Martin:

Originally posted by @Account Closed:

I have personally known Cardone for over 2 years, have you? I question your motives with your post.

Originally posted by @JD Martin:

Originally posted by @Account Closed:

GC is legit. He was a guest on the Bigger Pockets podcast 3 years ago.

Originally posted by @Calvin Thomas:

My office received a call from one of his reps today. I thought the pitch was a pie in the sky type of deal. Anyone hear of this guy on Youtube, Grant Cardone? He boasts a half a billion dollar real estate empire in Florida and Texas. I believe he get's around 90% financing, plus he also takes in money from investors. Something doesn't seem 100%. He also does these seminars and other marketing stuff. He seems all over the place and also trying to raise capital from others. Just some basic math, if he's financing 90%, paying out at least 6% to investors, and locking in a 3.5% mortgage from Fannie Mae; because he's a preferred client, there doesn't seem much leeway for him to make money. I understand the cash flow portion of it, as that is what we do. We just do not raise capital or borrow money that much anymore. However, my concern is that when the recession hits and the evictions start, that cash flow will dry up. He seems to be working on extremely thin margins. He's also in very lofty areas of Miami; which were the first to go in the last recession. He reminds me of the Polka King (https://en.wikipedia.org/wiki/Jan_Lewan).

Am I reading into the numbers incorrectly?

I don't want to comment on Cardone one way or the other but I wanted to note this post - everyone always needs to make sure they do their own research and due diligence. BP works hard to have good podcast guests but one should never assume that just because someone was on the radio they're real or worthwhile. Question everything - make no assumptions. Cardone is famous, but Bernie Madoff was famous too.

If you think my motives are to hope everyone thinks for themselves and does their own investigation, you're right. Otherwise, I have no idea what you are talking about. What difference does it make that you know Grant Cardone for 2 years? That's like one of my friends coming by here and saying "Hey, JD's a great guy." How does that influence the price of tea in China? Cardone may be a great guy, and his advice might be spot on - but no one should assume that because he's been on a podcast or written a book. They should come to that conclusion based on their own research and dissemination of his actions and material.

Let's keep this in perspective. There have been people on the BP podcast, like Clayton Morris, who have since been accused by BP users of major fraud. I think many people would say Clayton Morris is a great guy. In fact Robert Kiyosaki was on his his podcast a month ago saying great things about Morris (Kiyosaki has never even been on the BP podcast). The point is people vouching for another person doesn't do any good without due diligence. Blind trust is dangerous.

Question for you Nick. You say Grant is a good guy. Does that mean you would stake your personal reputation recommending him? Would you guarantee nobody would lose money investing with him?

I have no personal experience with either Grant or Clayton, so I am not saying either is good or bad. My point is people need to vet out the investment like you would with a total stranger. People have a misguided trust of people just because they are on a podcast.

Well put.

If you actually read a PPM from Cardone Capital, it will make your head spin. Mandatory capital calls that if you don't contribute, you owe the others that did a 15% loan. This is the classic example of "stay away" taught to beginner investors in syndications. The legalese very heavily favors GC and disfavors the investor, way more so than the dozens of PPMs I have read over the last few years. I love GC as a person because like him, I say what I think and I say it loud. But as an investment? Lets just say.. read the PPM.

4 Votes

Originally posted by @Chris C.:

Thanks for the reply, @Seth Wilson. Really appreciate your feedback on the fees, and your general sense of the market.

Any update? Did you end up investing in this? Cheers.

0 Votes

Originally posted by @Jay Hinrichs:

Originally posted by @Mike Dymski:

All of them are important but I value learning and knowledge the most. The stock market, real estate, and the rest of life can crash around you but it's your knowledge, development, and mindset that help you handle it and can build or rebuild anything.

“Investing in yourself is the best investment you will ever make. It will not only improve your life, it will improve the lives of all those around you.” ―Robin Sharma

Exactly ! in 09 in the depths of reflecting personally back on 30 years and what the heck just happened vis a vi the real estate space.

I was comforted in the fact that even though things were so ugly.. I still had the knowledge to do it again.. Just like a lot of the builders I work with.. most went broke had to file BK lost it all .. but they had the knowledge of how to build that did not leave them and now they have crawled back.. a few of the ones I helped 5 years ago or so when they built out my developments.. have now got it together and are doing their own deals..

Forget all that, Jay. We are now living in a new age. The age of $14 avocado toast and syndicators born every minute.

https://www.libertyjet.com/jet-ownership-costs.aspx?jetType=LR-75

What you think, you and I go in 50/50 on this. Write off business depreciation and split the hours and maintenance. Sounds like a plan? ;)

0 Votes

Originally posted by @Account Closed:

Originally posted by @Stacy White:

Account Closed We are in the same position. We have saved 100K and just trying to find the right entrance into the game. Probably suffering from a little "analysis paralysis" ourselves. There's not a lot of multi-family options in our area. We are close to a booming beach condo market and trying to decide wether to go that route or BRRRRing SFR rentals. Just have to take that leap! Maybe we can stretch our capital to do both.

If you’re going for cashflow the beach condos might be tough. I know some people make great returns with vacation rentals. Maybe there’s a good opportunity there. My only option is out of state. I have the capital but not the W-2 income required to invest in my market. Even if I did the cashflow out here is virtually non existent.

Cash flow won't make you wealthy. Do you know how many months of $150/month "cash flow" in markets which don't appreciate, will take to match the $500-$1M of appreciation we've seen in LA, SF, Hawaii, Seattle, etc. That would take you over 500 years my friend.

1 Vote

I vote for number 4, personal and professional development. Although it takes a minimum of 14.5 years of training from college to board-certified radiologist in the U.S., I can wholeheartedly say that traveling, reading, meditation, audiobooks, meeting people from all over the world, self-reflection, mistakes, are the best education and ROI by far.

What I know in my heart, the confidence I have in my mind, and the ability to control your health and destiny are worth more than the ROI on any real estate deal. You have to be willing to go to $0 and have the confidence that you can still be happy and prosper again. That is where the juice really lies.

6 Votes

Originally posted by @Mike Dymski:

Originally posted by @Caleb Heimsoth:

@Josh Rogers I think investing in syndication can be quite risky for several reasons.

1. You have zero say or control. If you do poor research or underwriting, you could lose all your investment

2. It’s a highly illiquid investment. You don’t get that money back for 5-7 years if you’re lucky. I’ve seen some syndication deals with a ten year hold. That’s insane.

Syndication is a good way to invest but you are better off doing your own deals first. Returns are generally better and you have more control. You’ll learn a lot more too. Then when you are worth 500-1M or are an accredited investor you can throw 25-50k into a syndication and see what happens.

Hey Caleb. I am normally aligned with your thoughts but we may be misaligned on this one.

Offering packages may say 5 or more years for conservative purposes but many have plans to sell or refinance (supplemental loan) after the value add to realize the sponsor compensation on the sale, eliminate/reduce the preferred return, and to maximize IRR and increase the velocity of capital. I do agree that some are intended longer term holds (which some passive investors actually prefer).

Most investors are not better off doing their own deals first and will not make more money on their own. Investors CAN do both of those but most don't. We get a biased view based on what we see on BP and what we can do but that is a small fraction of the population. Sourcing and managing a direct owned portfolio is a lot of work and not interesting to most people.

Totally agree. I am beginning to realize that 100% of a 25% annual return isn't worth it to me over 70% of a 20% annual return. In the former, this is tons more time and headache up front, dealing with tenants, lenders, repairmen, and property managers, etc. All for what? I'd rather take half the capital gain in exchange for no headaches and hundreds of hours freed up over the course of the investment. I can always make more money, I can't get back the time I spend managing an active deal (which often isn't fun nor intellectually stimulating).

2 Votes

Originally posted by @Josh Rogers:

Is investing in a syndication risky if the market changes? I don't want to invest money for years in an apartment deal if there is a chance the market could change and leave the syndicator broke. Any suggestions on this?

Its more risky to hold cash and do nothing.

1 Vote

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All Forum Posts by: Andrey Y.

Andrey Y. has started 114 posts and replied 1826 times.

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