Menu
Cardone Capital Reviews (2023 Update): Best Real Estate Investment Platform? Maybe, But #9 Might Make You Think Twice!
Scam Risk is here to help you protect yourself and fight back
By: Scam Risk - Expert Reviewer
Cardone Capital Review: Introduction
Everyone knows that investing in real estate is a solid way to build your wealth. In fact, some investors love to buy properties in areas like Southern California and Florida hoping for a huge return.
But hey, if you wanna jump into an EXPENSIVE market right before it crashes…
Don’t come crying to us when you lose THOUSANDS just to have your friends and family shake their heads and say, “I Told You So!”
This crowdfunding platform is supposed to show you how to become a 6-figure real estate mogul… but it’s truly out of reach for most people like you, constrained by budgets and student loans.
That’s just the truth…you won’t get rich by purchasing one property that only profits a couple hundred a month with loads of liabilities and subpar tenants.
And while we have to be honest for this review…
DISCLAIMER:
This Cardone Capital review has been thoroughly researched with information and testimonials that are available online to anyone in the public. Any conclusions drawn by myself are opinions.
Table of Contents
Pros: What I Liked
- Great track record with a well-known name
- Preferred returns in one of the safer real estate arenas
- Share ownership of many assets
The Good
Cons: What I Didn't Like
- High minimum investment
- High management compensation
- No repurchase plan
The Bad
Cardone Capital: Overview
Cardone Capital is a real estate investing program.
Like most real estate investing training courses, you’ll likely be exposed to the “Big 3” investing types:
Flipping, wholesaling, and long-term buy-and-hold.
Regardless of which path you go down, there is a lot of potential with real estate investing.
After all, it’s the world’s oldest wealth-builder.
However, before you leave this Cardone Capital review and go sign up, you might want to ask yourself:
“Is now the right time for me to get into real estate investing?”
Because, no matter which way you slice it, real estate investing is extremely capital intensive, labor intensive, or both.
So if you’ve only got an hour or two a day, or your savings account is a few zeroes lighter than you’re comfortable with, this might not be the best time for you to jump into real estate investing.
But that doesn’t mean you’re out of luck. It just means you need a system to free up more time and give yourself a stronger financial cushion.
A good way to get yourself there is with Digital Real Estate.
Digital Real Estate takes all the best parts of real estate investing, while eliminating most of the headaches:
- Low cashflow
- Interest payments
- Mortgages
- High overhead
- Expensive repairs and maintenance
- Problematic tenants
And the best part?
Digital Real Estate allows you to build a passive income stream that’s actually passive!
An income stream that brings in consistent revenues every single month (from a couple thousand dollars to well over $10,000).
An income stream you could actually build in your spare time, and grow as large or as small as you want to, without having to spend hours a day analyzing deals, cold-calling homeowners, or dealing with contractors.
If that sounds like something you’d be interested in, check out Digital Real Estate.
This is the perfect first step to build recurring income that you can then use to start investing in real estate down the line.
However, if you’d still like to know more about Cardone Capital, keep reading.
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.
Why?
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.
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 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 founder 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.
But it’s not all Sunshine and Rainbows…
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.
And giving anyone your money is pretty risky if you ask us!
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 trigger 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.
Is Cardone Capital A Scam?
So, is Cardone Capital a scam?
Not technically. You can make money with this program, but it’s definitely not as easy as Grant Cardone makes it sound.
There’s a ton of work to be done upfront, no real guarantee of success, and – most importantly – the actual profit margins on real estate investments are pretty small.
Now, there’s nothing wrong with front-loading the work and making the money later.
But if you’re grinding it out for 3 months – looking at deals, sending out offers, negotiating with the seller and lender to buy a rental property – and then your reward is like $100 a month in profits, it’s not really worth it.
What if, instead, you could do that same 3 months of work (in your spare time), and your reward was a $500 to $2,000 payment that came in every single month (with a 90-95% profit margin)?
And what if you actually didn’t need to wait 3 months? What if you could get started today and have your first payment in a week?
And what if you could double it next week?
Well, that’s the power of Digital Real Estate.
And, unlike traditional real estate, you can legitimately do this from anywhere. It’s a true lifestyle business.
Your laptop and an internet connection is all you need.
Some of the most successful students in this program run their entire 6-figure businesses from:
- A camper in the middle of the woods
- A beach chair on the water in Mexico
- A small villa in Greece
They’re able to travel around, living their lives first, and focusing on their income second.
Because even if they stop working for an extended period of time, the money keeps coming in.
So adventure, memories, and experience are the top priority.
And they never have to worry about how to pay for the next trip, or consider asking for time off.
If this sounds more like the type of life you want to lead, just click here to find out more about Digital Real Estate.
Conclusion
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…
What Is Our #1 Recommendation For Making Money Online In 2023?
The ScamRisk team has spent months researching, reviewing, and vetting dozens of business models and thousands of programs.
While there may be no “perfect business”, the research IS conclusive:
Digital Real Estate is the #1 online business model for those just starting out.
Whether you’ve never made a dollar online, or you’ve been in this space for a while but never really “made it,” Digital Real Estate is for you.
Why?
1) It’s Flexible: got an hour a day? You can do this. Ready to drop everything else and dive in full time? You can do this. Yes, the more time you put in, the faster you see results. But even with a little time each day, you can move the needle in a Digital Real Estate business.
And because this system is so flexible, you don’t have to constantly be working to make more money. It’s called PASSIVE INCOME because if you stop working, the money doesn’t.
Imagine taking 3 months off to just tour around Europe, rent a cabin in the woods to write a book, hike the Appalachian Trail, or live on the beach and surf all day.
This is only possible if you have an income stream that’s not tied to your time.
Flipping and wholesaling are full-time jobs (and more), no matter what any real estate guru tells you. You always have to be searching for deals, because if you stop, so does the money.
2) You Own & Control EVERYTHING: Yes, in traditional real estate you kind of “own” the properties. But there’s also a ton of debt tied to most real estate investments, which means the property isn’t truly yours.
A lender can take it away if you miss a payment. Not to mention, loan payments really impact your profit margins.
With Digital Real Estate, you own the assets outright (with a 90-95% profit margin), which means you have all the power and all the control.
3) Little To No Startup Costs: It’s possible to get into Digital Real Estate with zero dollars upfront. Because, using the strategies outlined in this program, you can get a client to pay you BEFORE spending a penny out of your own pocket…even before you do any work.
Even without getting paid in advance, you can have your first Digital Rental Property up, running, and generating profits for less than $100.
4) Minimal Ongoing Expenses: With traditional real estate, monthly expenses are HIGH. Between loan payments, ongoing maintenance, and repairs (not to mention the possibility of having to go through the eviction process), profit margins are slim.
Plus, whenever you have a vacancy, factor in the costs to turn over a unit (plus the fact there’s no money coming in until the next tenant moves in).
With Digital Real Estate, a 100% online business with minimal maintenance and ongoing costs, you never even have to think about that risk.
5) Easy To Duplicate: Ok, here’s the best part: once you have your first Digital Rental Property up and running, you can literally DOUBLE your income with a few clicks, a couple keystrokes, and a single phone call (and you don’t actually need the phone call).
Remember: each Digital Rental Property is worth $500 to $2,000 a month in semi-passive income (over 95% profit). Every time you decide to create another one and increase your income, it gets easier.
Because you have more knowledge, more experience, more results, and more momentum.
If you wanted to double your income with traditional real estate investing, you’d have to double your monthly rent, double your deals/number of units OR double your profit margins. And, guaranteed that’s a lot harder than a few clicks and a few minutes of your life.
6) Make Money Helping Real People: This part is what makes it all worth it. With Digital Real Estate, you’re actually helping people by solving your clients’ biggest problem:
Small, local businesses need more customers, and with Digital Real Estate, you are unleashing a flood of happy, paying customers for these businesses.
You make money by helping them make money.
Not a big, faceless corporation either…a small business owner who’s using that money to put food on the table for their family, start a college fund for their kids, or take care of a sick parent.
Once you see how Digital Real Estate makes a real impact in the lives of real people, you’ll sleep like a baby with a big smile on your face.
Now, the choice is yours. You could continue browsing, looking at opportunities like Cardone Capital which could one day make you money.
You could continue researching, never making a decision.
OR, you could take a look inside, consider what you really want, and join a program that makes your dreams a reality. At the same time, joining a community of over 2,000 successful students that are living life on their own terms thanks to Digital Real Estate.
A consistent, reliable, semi-passive stream of income that doesn’t depend on you or your time to keep producing profits.
All while genuinely helping real people who are grateful and happy to pay for it.
If this sounds more like what you want out of life (or if you just want some nice side income), click here to learn more about Digital Real Estate.
ScamRisk's #1 Online
Business Recommendation:
You know deep down what you're meant for. Now they will show you how to go get it.
All site content, links and resources are presented solely for informational purposes only and should not be considered as medical, legal, financial or tax advice. ScamRisk.com is free to use because we may earn a commission when you use a service listed on our site, however our editorial treatment of reviews, ratings and listings is equally impartial whether a link is paid or unpaid. Opinions expressed in reviews, commentary and articles are those of the author and are not necessarily shared by Scam Risk. Screenshots, logos, company names & styles are IP, copyright and trademarks of their respective owners, used on this site for their promotion or editorial illustration.
Continued use of ScamRisk.com is contingent on acceptance of Scam Risk's legal policies
