Cardone Capital Review: What Is Cardone Capital?
Cardone Capital is a real estate crowdfunding platform that offers funds for people who are accredited investors and non accredited investors.
This is a real estate investing opportunity started and managed by the man himself Mr. Grant Cardone.
He’s been in the real estate game for a while now, especially multi-family real estate.
Real estate investors or prospective real estate investors have their capital managed by someone with more than 20 years in the space!
If Cardone and his company are anybody to trust, they have said that real estate investors of Cardone Capital deals have never lost money!
The reason why no money has ever been lost with these Cardone Capital specific deals is that the focus is on multifamily and residential properties.
This is important to note because, historically speaking, residential type properties have been the safest in the real estate industry!
Furthermore the funds are designed with the long term in mind…a 10 year holding period.
We’re going to review Cardone Capital to decide if it really is the best Real Estate Crowdfunding course 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!
Table of Contents
About The Founder Grant Cardone
Grant Cardone himself will be the first to tell you…he never thought he would have ended up where he was today.
In fact he was a drug abuser up until the age of 25. He was in a dark place and he was always in his own way it seems.
It took a lot of hard work and discipline, however, he managed to turn everything around. And could you imagine it? He actually used to suck at sales!
He hated it too!
But he got better at it and now he owns a real estate portfolio estimated to be worth about $350 million, he is convinced that you either sell or get sold just like his book implies, and he learned to sell.
On top of that, he’s a New York Times best selling author and has written seven different books!
He owns Cardone Enterprises, The Cardone Group, and Cardone Acquisitions.
On top of all his real estate investing deals, he also travels around the world as a motivational speaker, known especially for his 10X mentality.
Is Cardone Capital Legit?
Cardone Capital does not share any financial information, which admittedly, is a bit shady. However Grant Cardone has a long history of success in residential real estate…
With numbers like his we are inclined to believe that monetarily everything is fine.
There are some numbers out there though and if that information is to be believed…Cardone Capital manages a portfolio of residential properties with more than 7,700 units worth over $1.7 Billion!
Now that’s impressive…
On top of that Cardone Capital focuses on picking up properties that already have a stable cash flow for investors.
Because over time, you can grow those cash flows!
Also, by avoiding starter projects or properties that have been vacant for quite some time…the risk of financial loss is lower.
It is entirely possible to build a profitable, successful Real Estate business.
Cardone Capital's Performance Over Time
The Jury is still out on this one…primarily because Cardone Capital has a 10 year hold. We can’t say that this isn’t good, because this is exactly what most investors in it for the long term are looking for.
This long term model model that is set up makes it difficult to determine whether or not there is a successful method to Cardone Capital and it’s madness for investors.
Cardone Capital Management
Grant Cardone has been in the real estate investing game since the mid 90’s .
He leads Cardone Capital as the found and CEO, with the company pointing to his leadership and strength for not only their success, but their investors as well.
As previously mentioned…Cardone Capital is known for managing nearly $2 billion in real estate!
How Does Cardone Capital Make Money?
If you’re looking for a secret sauce…We’re sorry to let ya down. Cardone Capital says that they source their properties from the usual suspects including: public listings, brokers, private sales…
It should relieve you to know that if you invest, you’re money isn’t going anywhere risky…
In fact, the funds currently given to Cardone Capital are invested in Cardone Owned properties.
The cool part of all this is that Cardone Capital themselves have already put the real estate investments through their process and own a large portion.
Why is this a good thing?
What they have done is actually align both their investors interests and their own by allowing them both to have upside and downside with skin in the game.
It isn’t all sun shines and rainbows though…
One aspect of the Cardone Capital investing strategy can create a conflict of interest between the parties.
Currently, a majority of Cardone Capital funds are invested in these minority stake entities owned by Grant Cardone.
So while it’s good that these properties have made it through the vetting process, Grant Cardone is technically your manager and therefore the seller of property that your capital helped buy.
That being said…you can see why some people aren’t fans.
When you look deeper than face value, you can see that it isn’t the consistently protecting the investors capital which is at risk.
It doesn’t stop there though…
No, Cardone Capital retains a whopping 35% of equity in the funds!
The main take away people need to consider here is that at the end of the day…
You are putting your trust, whether you like it or not, with Grant Cardone to properly take care of your money inside Cardone Capital.
Who Can Invest With Cardone Capital? What Is The Minimum Investment?
Cardone Capital offers investment options to both accredited investors and non accredited investors.
The non accredited funds also receive more information about the fund structure, fees, and performance since they file regular disclosures with SEC.
That is if they take the time to read them of course.
This is where the rubber meets the road for a lot of people…$5000 is a lot of money for most people to just put into another guys hands.
If you are a non accredited investor, you have to have at least 5k to get started in Cardone Capital.
For the accredited investor out there…we’re talking $100,000 minimum!
That’s one of the highest minimums we’ve seen for the accredited investor class.
Real estate investment opportunities take big money whether you go with Grant Cardone, Cardone Capital, or not…
The question is…who do you trust more?
Grant Cardone with nearly $2 Billion in real estate investments or you…the guys reading this article about investing in real estate.
What Are Cardone Capital's Fees?
The fees are pretty reasonable compared to anything else you might come by.
1% disposition fee for any property sales made, 1% acquisition fee for property purchases, and 1% annualized asset management fee.
On top of those fees…there are several other expenses and fees related to each startup fund that will consume your investor capital.
Based on an average of potential capital raises for each fund, expect about 87% of your investor capital to go toward things like property acquisitions while the rest covers startup fees and working capital.
Cardone capital keeps 35% equity in each fund without committing any capital.
The great news is that most investors have seen an average return on 6%, better than any other general investment opportunity.
Unfortunately this is still not a very investor friendly option because Cardone Capital has a very generous reward waiting for them without almost any capital funds at risk.
Cardone Capital Returns
Based off it’s history, Cardone Capital has gone on record stating that their investors have never lost money.
Their funds have a target of 6% cash flow and a 15% annualized investor internal rate of return. For Cardone Capital accredited investors…they offer 6% preferred return.
Don’t get pull happy, you can’t do that with these investments.
The funds structured with Cardone Capital are for a 10 year period with no exit to the fund. This is a long term investment play so don’t commit any funds you may need at some point or another.
Grant Cardone and his company Cardone Capital is a great way to get involved with the real estate industry if you already have some initial cash set a side.
If you don’t, it can be really tough as a beginner real estate investor to hold off 5 years or even 10 years to see a really profitable return.
However, if you’re willing to wait 10 years for your investment to pay off…then handing over money to a guy who does 1.7 Billion in real estate isn’t a bad idea. I means there are worse investments that could be made.
This is also a great opportunity for anyone looking to expand their passive cash flows as it is in Grant Cardone’s control.
However, there is a better way to make passive income with real estate property principles 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 here 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…
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