Looking for Cardone Capital reviews?
Perhaps you’re considering an investment into Cardone Capital but wondering how it works and who’s behind it.
I’ve been personally following Grant for many years and today I want to share my opinion on his Cardone Capital Real Estate company.
Before I start I just want to mention that I’m a fan of Grant Cardone and this review of his company will be fair and honest.
I will also mention that I am not an investor of his fund, due to being located outside of the USA.
Cardone Capital Reviews
Cardone Capital is a private equity firm that was established by Grant Cardone.
It specializes in real estate and, therefore, provides everyday investors with an alternative path into the lucrative sector – other than the traditional means of using Real Estate Investment Trusts (REIT) and other associated stocks.
It is neither a publicly-traded company nor a Master Limited Partnership.
In other words, it does not have stock that you can buy on the stock market.
How Does Cardone Capital Work?
Cardone Capital raises capital to invest in property by establishing private equity funds.
Investors buy units in these funds and the firm uses the capital to purchase existing multi-family properties, usually in the 100’s of units and sometimes even multiple buildings and locations per fund.
Cardone Capital manages the acquisitions, handling operational overhead and maintenance.
It then collects rent and distributes the income to the investors every month (more on how they do that later).
This arrangement allows investors to have a steady passive income without having to master the intricacies of acquiring and running a property.
Who Is Grant Cardone?
I’m a big fan of Grant Cardone and have been following him for years now.
I also put together this honest review of Grant Cardone.
Grant Cardone is the CEO of Cardone Capital.
The 60-year old mogul has amassed 30 years of investing experience.
Grant is a sales trainer too.
His company, Cardone Training Technologies, provides interactive sales training to all kinds of businesses, ranging from Fortune 500 companies to small businesses.
He is also a best-selling author of various books, including: If You’re Not First, You’re Last and The 10X Rule.
His most renowned venture, Cardone Capital, has built him a real estate empire with a portfolio worth more than $1 billion in Assets (AUM).
Interestingly, the Real Estate business started as a side business before it grew into the behemoth it is today.
He also graduated from college with an accounting degree although he has stated he is not a big fan of college.
How To Invest In Cardone Capital?
Base Requirements to Join
To invest in the firm, you need to be over the age of 18 years, have a US Tax ID, and a US Bank account.
Initially, you had to be an accredited investor but then they created a non-accredited fund.
International investors are also eligible but they must have a US Bank account and a valid US Tax ID.
Types of Accounts you can use to Invest
You can use a personal investment account, entity account, or joint account.
If you are to use entity accounts, it has to be one of the following: Limited Partnerships, Trusts, C and S corporations, and Limited Liability Companies.
Minimum and Maximum Investments
To invest in Cardone Capital holdings, you must pony up at least $10,000.
As for the maximum, it is set at 10% of your net worth or income (the greater).
These limits are meant to safeguard you from overindulgence and ensure that only serious investors partake.
The minimum for accredited investors is $100,000.
There are different kinds of fees payable to Cardone Capital on your investment.
- Disposition fee: This is one percent of the sales price of the property (individual)
- Acquisition fee: One percent of the purchase price of the property (individual)
- Asset management fee: One percent of the contributed capital (annualized)
The above list is not conclusive and I would advise that you go through the fine print before you pass your judgment.
You will find more details in the Offering circular. Whether the fees are high or not is subjective.
The exact amounts are dictated by the amount of distributable income generated by the properties under management.
Whatever the figure, they apply a 65/35 split of the proceeds where 65% goes to the investors’ accounts.
The customer service reps are available via email and phone (883 822 7435) and text (305 407 0276).
Is Cardone Capital A Scam?
Cardone Capital is not a scam.
It is a genuine entity with legitimate operations.
Grant also has a very strong track record when it comes to Real Estate.
Of course, it has its flaws but you won’t find a company that doesn’t.
There are people out there who are not fans of how Cardone Capital operates however non of these people are actual investors and most are using Grants name to try and get views on YouTube or on their websites.
Pros of Cardone Capital
As a private equity establishment in real estate (not in comparison with REITs), it comes with the following merits:
- You get to enjoy the tax benefits (through write-offs) of a partnership because of depreciation. This way, you keep more of your earnings.
- It allows you to leverage your investment. You can purchase more with the same capital outlay.
- Real estate is less volatile than many comparable assets.
- Real estate usually appreciates.
- You save on fees and commissions.
- When you invest in the firm, you do not need to go through middlemen i.e. brokers and market makers.
Cons of Cardone Capital
Since it doesn’t trade publicly:
- You have no control over your investment (this could also be seen as a pro)
- It is a relatively new company even though Grant has a strong track record for his personal Real Estate investments
Verdict For Cardone Capital
The number of people renting is higher than it has been in the past 50 years.
The market is massive and Cardone Capital offers average investors an in on this lucrative investment opportunity.
Of course nothing is guaranteed and you still need to weigh up the pros and cons of investing and read the small print.
I hope you found this review of Grant Cardone’s “Cardone Capital” useful.
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