Cardone Capital Review: What Is Cardone Capital?
Cardone Capital is a real estate crowdfunding program that offers money for accredited and non-accredited investors.
This platform is a real estate investing group designed and handled by Mr. Grant Cardone.
He has been in the real estate industry for some time now, particularly multi-family real estate.
Prospective real estate investors or real estate investors have their capital handled by someone with over 20 years in the business.
If Cardone and his group are those to depend on, they have boasted that Cardone Capital real estate investor offers haven’t lost money!
The main reason why they haven’t lost money from deals with Cardone Capital is that they focus on residential and multi-family properties.
Historically speaking, it is noteworthy that non-commercial properties have been the most stable in the real estate market!
Moreover, the investments are designed with the long term in mind…a 10-year holding period.
So, we’re gonna review Cardone Capital to determine whether it is the best Real State Estate Crowdfunding program out there.
We’ll talk about whether Real Estate Crowdfunding is the right online business for you.
At the end, I’ll answer some of the most frequently asked questions regarding Cardone Capital and Real Estate Crowdfunding in general.
And most importantly, I’ll show you the exact system I used to build my own internet marketing business to over $40,000 a month in mostly passive income.
This system made me swear off Real Estate Crowdfunding for good, because it uses some of the same skills in a much more powerful and profitable way!
About The Founder Grant Cardone
Grant Cardone will be the very first to tell you…he never imagined he would reach the status where he is now.
For that matter, he was a drug user until he was 25 years old. He was alone and constantly in his own way it seems.
It took a lot of discipline and a grueling effort on his part, but he eventually did a complete 180.
But, believe it or not…. he was terrible at sales.
In fact, he HATED it!
Over time, he got so much better at it and now owns a real estate portfolio worth approximately $350 million, he’s convinced that you either sell or get sold as his book suggests, and he discovered how to sell.
In addition to that, he is a New York Times best-selling author and has authored 7 different publications.
He owns the Cardone Group, Cardone Enterprises, and Cardone Acquisitions.
There’s more to all his real estate deals. He travels all over the world to be a motivational speaker, popularly known for his 10X mentality.
Is Cardone Capital Legit?
Cardone Capital doesn’t disclose any of their financial information, which granted, is a bit questionable. However, Grant Cardone has an extended history of accomplishment in residential real estate…
We’re inclined to think that financially everything is okay with numbers like his.
There are a lot of numbers floating around out there… Cardone Capital manages residential properties with over 7,700 units worth more than $1.7 Billion!
Now, That is remarkable…
In addition to that, Cardone Capital concentrates on getting properties that currently hold a stable cash flow for investors.
Because in time, you can increase those cash flows!
Furthermore, by staying away from properties or starter projects that have been vacant for quite a while… the risk is lower for financial loss.
Cardone Capital's Performance Over Time
It’s really still kinda up in the air… mainly because Cardone Capital has a ten-year hold.
But honestly, this isn’t a bad thing… it’s exactly what most investors (at least those that are in it for the long haul) are looking for.
With this business model, and its “long-term” approach, you can see how it can be a little hard to determine if it’s a beneficial investment for Cardone Capital investors.
Cardone Capital Management
Grant Cardone is in the real estate investing industry since the middle of the ’90s.
He directs Cardone Capital as the founder and CEO, with the business following his toughness and leadership not just for their success but their investors too.
As mentioned earlier, Cardone Capital is recognized for managing almost $2 billion in real estate.
How Does Cardone Capital Make Money?
If you’re looking for some magic formula that make his business different from the rest …We’re sorry to disappoint you. Cardone Capital states that they get their properties from familiar sources like brokers, public listings, private sales.
It should help you understand that your money won’t be put in a risky situation if you invest.
In fact, the money presently offered to Cardone Capital is invested in Cardone Owned properties.
The great thing about all this is that Cardone Capital has put the real estate investments through their process and owns a big share.
Why is this so great?
What they’ve created matches both their investor’s interests and their own by letting them both experience some wins and losses since they all have some skin in the game.
But, it is not all sunshine & rainbows…
One element of the Cardone Capital investing technique can produce a conflict of interest between the sides.
Now, a vast majority of Cardone Capital funds are invested in these minority stake entities belonging to Grant Cardone.
Thus while it is great that these real estate properties have made it through the vetting procedure, Grant Cardone is officially the manager and consequently your seller of a property that your capital is used to acquire.
That being said…you can understand why some people aren’t terribly happy with this arrangement.
If you dig a little deeper, you can see that the investor’s money is always at risk and he’s not doing as much as he can to protect it.
And there’s more…
Cardone Capital holds a massive 35% syndication fee!
At the end of the day, the main thing that people have to understand is this…
Whether you like it or not, you’re also investing your trust with Grant Cardone to look after your money with care within Cardone Capital.
Who Can Invest With Cardone Capital? What Is The Minimum Investment?
Cardone Capital provides investment options to both accredited investors and non-accredited investors.
The non-accredited funds also get a lot of info regarding the fund structure, costs, and performance since they file regular disclosures with SEC.
That’s whether they take time to examine them, of course.
This is where the rubber meets the road for the number of people…$5000 is a significant amount of money for most of us to put into other people’s hands.
If You Are A Non-Accredited Investor, You Have To Have At Least 5k To Get Started In Cardone Capital.
For any approved investor out there…we’re talking $100,000 at least!
That is among the highest minimums we have seen for the accredited investor level.
Real estate investment opportunities take a lot of money whether you go with Cardone Capital, Grant Cardone, or not…
So the question becomes…who will you trust more?
Grant Cardone with around $2 Billion in real estate investments or the guys reading through this article about real estate investment.
What Are Cardone Capital's Fees?
The fees are reasonable compared to other things you may come across.
1% acquisition cost for property purchases, 1% disposition fee for all property sales closed, and 1% asset management fee annually.
In addition to those fees…there are other fees and expenses associated with each startup fund that will consume your investor fund.
According to an average of prospective capital raises for every fund, expect approximately 87% of your investment capital to proceed to things like property acquisitions as the others cover working capital and startup fees.
Cardone Capital Keeps 35% Equity In Each Fund Without Committing Any Capital.
One of the great things is that almost all investors have observed an average return of 6%, better than all available investment opportunities.
However, this is still not a friendly investor choice because Cardone Capital has a good reward awaiting them, almost zero capital funds being at risk.
Cardone Capital Returns
Based on its past, Cardone Capital went on record stating that their investors haven’t lost money.
The fund has a 6% cash flow target and a 15% annualized investor internal rate of return. For Cardone Capital accredited investors…they offer a 6% preferred return.
Don’t be trigger happy; you cannot hit that with these investments.
The funds organized with Cardone Capital are for ten years without any exit on the fund. It is a long-term investment game, so don’t commit the money you might need at some point or another.
They’ve been able to keep most of this content from the media, but our researchers have been able to do some digging and this is what they’ve found…
Cardone Capital has a four-part strategy:
- It looks for deals (primarily multifamily properties), negotiates the financing and purchase, and seals the deal.
- Investors buy an interest in institutional-quality real estate assets, either individual assets or funds. The company does not offer shares of a real estate investment trust (REIT).
- Rent from creditworthy tenants is collected by Cardone.
- It pays its investors monthly cash distributions.
Strong background: Grant Cardone has a multi-decade history of accomplishment, and Cardone Capital states it has never lost investor money.
Shared ownership of numerous assets: A lot of the properties run in Cardone Capital investor finances is also part-owned by Cardone.
Preferred returns on some deals: Several of the funds provide 6% preferred return, placing them first in line for earnings.
Regular opportunities to invest: There’s typically one fund in some phase of funding, which means investors have a chance to commit on a consistent schedule.
Low-risk asset class: Multifamily non-commercial real estate is among the more secure properties to own across economic cycles.
Management compensation is pretty high: While the asset management & acquisition fees are reasonable, Cardone Capital takes a 35% carried interest in funds, without doing some capital commitment to the funds.
Very high minimum investments: Non-accredited investor minimum funding is $5,000, while approved investor minimums are $100,000 on many funds. These are the greatest we’ve observed for both investor classes.
Higher possible leverage: The money can utilize as much as 80% debt to fund acquisitions. This is on the higher end for business real estate, in which 55% to 60% or even lower is often regarded as a conservative debt level.
No repurchase secondary market or plan: While real estate deals this way are usually long term, the Cardone Capital deals, specifically, are very illiquid. All the fund says that the plan is to invest a ten-year period, and there’s absolutely no mechanism for investors to exit soon. We’ve seen numerous platforms offer secondary markets & implement repurchase plans which enable some ability to market soon.
Divided interests: Founder Grant Cardone has other organizations created around his brand.
Grant Cardone and his company Cardone Capital is the best way to get involved with the real estate investment industry if you currently have money set aside.
If not, it could be challenging for a real estate investor beginner to wait 5 or 10 long years to find a lucrative return.
But, if you are ready to wait for 10 years for your investment to pay off…then entrusting your money to a guy that does 1.7 Billion in real estate is not a terrible idea.
It is also an excellent opportunity for anyone wanting to grow their passive cash flows as it is in Grant Cardone’s management.
However, there’s a better system to make passive income with real estate concepts, in our opinion…
Digital Real Estate Investing
So you don’t want to wait 10 years for an investment of $5000 to pay off?
We hear ya!
Digital real estate is just as profitable as physical real estate…but with a much cheaper buy in.
Are you ready for the breakdown?
Imagine a website at the top of page one of google. I’m sure you can imagine how valuable a spot like that is.
Yep, The Number 1 Spot On Google Is A Very Valuable Spot Of Real Estate.
Ok, now that you know the top of page one is a valuable spot to be…let’s break down the how and why.
Just like Grant Cardone focuses on local residential properties the most…let’s do the same for digital real estate.
Hang with me here.
Imagine your local tree care guy. He’s probably really good at cutting down trees, but doesn’t know jack about a website and its value.
This is where you come in.
You can build a website, rank it to the top of page one, and send all the jobs that come through to him!
It’s a win-win.
But…did you see what you created in the process?
You just created a digital real estate property, one that brings in consistent revenue each month.
How Much Is Something Like This Worth?
Well the average tree service job is roughly $500-$2000 so charging 10% of that is more than fair.
So now let’s do the math…let’s say your tree service site brings in 10 jobs a month (worst case scenario) and let’s say that they are all $500 jobs.
This Means That 50x10 = $500! You Have A $500 A Month Digital Real Estate Property.
Now imagine if you had 10 of these websites…you’ll be doing better than the average American and you won’t even have to lift a figure!
Perhaps this is the best part…once you have these sites built and ranked…you don’t need to touch it…It’s all set.
Now you want to talk about minimum investment…a website only costs $12 a year for a domain and $8 bucks a month for hosting…
Now let’s talk returns…
Going off the price of a domain and hosting each month listed above…you’re seeing a near 100% return every single month!
That is unheard of in physical real estate, but the norm in the internet space.
These websites produce rent levels of payment in your bank account every single month!
So How Do You Get Started?
It does take time to learn how to build and rank a site with SEO…not that long though, we have to admit…
That being said we have actually full vetted a course with our review team that has gone through to make sure it’s legit.
In this course they walk you through how to build a website and rank it locally with some basic SEO.
But the education and support doesn’t just stop with the course…they have live calls 2-3 times a week when you ask questions if you get stuck!
They also have a Facebook group that is supportive and active 24 7. They really abide by the no man left behind policy.
So if you are looking to get into the digital real estate game and enjoy the passive returns of building out sites at scale without all the physical real estate headaches and high minimum investments…