Grant Cardone - Cardone Capital Fund SEC Docs show only a 1.76% return! (with proof)
[{"id": "ftqogw2", "text": "Can someone explain to me why this guy gets so much heat? People seem to rip on him on this sub and on the WSO forums... but I genuinely don\u2019t know anything about his company/why he is such a joke.\n\nEdit: damn, downvoted for asking a question. For fucks sake.", "replies": [{"id": "ftqtpmb", "text": "Well, look at his returns.", "replies": [{"id": "ftquq28", "text": "He's almost beating inflation.\n\nAlmost.\n\nThen again, he's only beating my, \"money hidden in mattress\" yield by 1.76%", "replies": [], "depth": 3}, {"id": "ftqux0l", "text": "Aren\u2019t a lot of returns back-ended (I.e. you won\u2019t realize big returns until you liquidate your portfolio)?", "replies": [{"id": "ftqy4ja", "text": "That\u2019s still a shitty current yield", "replies": [{"id": "ftr0ov3", "text": "Depends on strategy (development, rehab, etc). Some deals you aren\u2019t suppose to cash flow at all until lease up. \n\nI\u2019m not defending this guy just trying to understand why he has become a meme.", "replies": [{"id": "ftr1kn8", "text": "Because you could invest with practically anyone else and do better.\n\nPlus he's just a pushy salesman type, marketing towards people who don't know any better.", "replies": [{"id": "ftr9nf4", "text": "Doesn\u2019t he take unaccredited investors?", "replies": [], "depth": 7}], "depth": 6}, {"id": "ftr34f7", "text": "Last I checked he buys core/ core plus multifamily. \n\nThose deals are supposed to cash flow now.", "replies": [{"id": "ftr7178", "text": "Not if you overpay ang get aggressive debt for a value add at a 1.0 DSCR", "replies": [{"id": "ftraznt", "text": "Do people lend on a coverage ratio that low?", "replies": [{"id": "ftrbjrq", "text": "Debt funds do all the time. I\u2019ve seen some that are sub 1 with an interest reserve.", "replies": [{"id": "ftrcy1q", "text": "I knew people were desperate to place capital but jeez...", "replies": [{"id": "ftrd8kl", "text": "Comes with higher interest rates and completion guarantees.", "replies": [], "depth": 11}], "depth": 10}], "depth": 9}], "depth": 8}], "depth": 7}], "depth": 6}, {"id": "ftrd1jp", "text": "Yeah but he's known for overpaying for core assets so...", "replies": [{"id": "ftreebd", "text": "Ok yeah this is why I\u2019m asking. Cash flow alone doesn\u2019t answer the question.", "replies": [], "depth": 7}], "depth": 6}], "depth": 5}], "depth": 4}], "depth": 3}], "depth": 2}, {"id": "ftr585u", "text": "People like this make most of their money by pretending they're good at real estate, not actually being good at it. If you read his stuff you'll see the high emphasis on branding, marketing, and \"mindset,\" with very low emphasis on fundamentals of actually running a real estate business. \n\nGenerally people who gravitate towards personalities like this are newbies who are easily dazzled, other people looking to start a cult, or people who want to use his brand.", "replies": [{"id": "fukoc0r", "text": "Hes most likely using his funds for his expensive lifestyle.\nPrivate jet and million dollar home.\n\nOne day he will be the next bernie madoff and everyone will say bullcrap and no way but then it happens again for the 300th time in the last 20 years. \n\nPeople dont learn they always want to give their money to someone else.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "ftqvqk1", "text": "Huh, who would have thought a used car salesman would lie about his fund's returns...\n\nEdit: spelling", "replies": [], "depth": 1}, {"id": "ftqzh16", "text": "Thats actually more than I woulda guessed", "replies": [], "depth": 1}, {"id": "ftr445n", "text": "I love how there's an army of people teaming up to call this guy on his bullshit.", "replies": [], "depth": 1}, {"id": "ftr4qwi", "text": "Grant is very successful, but I have no idea why. I've tried watching his show and his interviews and I'm always amazed at how little he really knows. \n\nHe's a self promoting marketing genius, not a sales or real estate genius.", "replies": [{"id": "ftr5viu", "text": "Watch his Podcast with Jordan Belfort ..... it's painful to watch.  \nI'm bewildered, how anyone can be taken in by him.  He says almost NOTHING of value.  It's just stupid fluff.", "replies": [{"id": "ftrdjlo", "text": "Have you seen the state of the US?", "replies": [{"id": "ftrhg21", "text": "Checkmate /cries in US", "replies": [], "depth": 4}, {"id": "ftrkorm", "text": "I haven't ... what episode is it ?", "replies": [], "depth": 4}], "depth": 3}, {"id": "fuqx8m0", "text": "yeah, that interview confirmed my suspicions.", "replies": [], "depth": 3}], "depth": 2}, {"id": "ftrkb72", "text": "It\u2019s crazy. I saw him try to explain a 1031 exchange and he just couldn\u2019t do it. Just kept saying \u201cI\u2019m gonna exchange that money\u201d like it was a forex transaction or something. I don\u2019t think he has any clue how this stuff works.", "replies": [{"id": "ful5vb7", "text": "I\u2019ve heard this before. I think it was on BP. And he was basically saying to find an intermediary that won\u2019t follow the timing rules. Total huckster fraud.", "replies": [], "depth": 3}, {"id": "fuqx684", "text": "lol, did you see his interview with Jordan belfort? \n\nThat sealed the deal for me", "replies": [{"id": "fuxryfv", "text": "I did. And Grant is a hack. I don\u2019t even particularly like Jordan Belfort but you can tell he\u2019s got sales experience. I can\u2019t tell that with Grant. I have about 12 years of sales experience and I feel like I could host my own podcast on the subject and I don\u2019t even really consider myself a stand out but I understand the process. I really think Grant is taking his \u201cconcert\u201d and sale revenue from his sales/hype man program and plugging it into real-estate to get leveraged out. I think this is the mentality behind his whole cash flow mantra. Except, the few press releases I\u2019ve seen where Grant has bought property, he\u2019s bought it at widely inflated prices using interest only loans. God knows how that\u2019s going to shape up for him soon. Like Warren Buffet says, \u201cwhen the tide goes out, we get to see who\u2019s swimming naked.\u201d I\u2019d put good money on Grant being naked.", "replies": [{"id": "fv5ojar", "text": "That dude is definitely getting a fed visit in the next 5 years after he gets wiped out", "replies": [{"id": "fv65a6b", "text": "Did you see this video where he\u2019s taunting his \u201chaters\u201d - his words not mine... that\u2019s he\u2019s getting raided by the feds and the IRS and he\u2019s under investigation... but it\u2019s all a joke?", "replies": [{"id": "fv65oq0", "text": "Nope, he\u2019s got too much of a punchable vibe for me to watch his stuff", "replies": [], "depth": 7}], "depth": 6}], "depth": 5}], "depth": 4}], "depth": 3}], "depth": 2}, {"id": "ful9x5m", "text": "\u201cNothing is easier than self-deceit. For what every man wishes, that he also believes to be true.\u201d - Demosthenes", "replies": [], "depth": 2}], "depth": 1}, {"id": "ftrk50q", "text": "You mean the guy that bought in the height of the market with interest only loans is in trouble?", "replies": [], "depth": 1}, {"id": "fulay39", "text": "This guy fires most of his office right as the COVID crisis began. He threatened to sue his former employees afterward. Grant basically bet on a strong economy for the next few years, over leveraged, and got hammered has a result. Total greedy idiot", "replies": [], "depth": 1}, {"id": "fulhuhk", "text": "I'm not a fan of Cardone's and think he's basically a hype man but this video seems to willfully ignore some pretty important pieces of information just to make him look bad. He's basically calling out the funds that have been established for less than 18 months aren't delivering the full term return Cardone was predicting. Isn't that expected during the acquisition and stabilization phase? \n\n* Fund 3 - 18 months of data\n* Fund 4 - 15 months of data\n* Fund 5 - 9 months of data\n\nIt seems more like this guy doesn't understand the life cycle of the fund works and fluctuation of returns over time. There are plenty of reasons to critique Cardone but this doesn't seem like one of them.", "replies": [{"id": "fup19ho", "text": "I think your point is valid, but Grant is buying properties that are already stabilized. They should cash flow day 1", "replies": [], "depth": 2}], "depth": 1}, {"id": "fullxi0", "text": "I didnt realize this info was publicly available. How was he able to find this? I cant seem to find the site and I'm usually pretty good with OSINT...", "replies": [], "depth": 1}]