Grant Cardone’s Lies could Bankrupt Cardone Capital

요약 보기

Grant Cardone의 부동산 펀드(Cardone Capital) 홍보 영상과 발언을 반박하는 영상. 1억3400만달러 매입 건의 자산가치 과대평가 의혹, 다가구 임대 수익률 및 1% 배치수수료, 이자만 납부하는 10년 대출의 위험, 1995·2001·2008 위기 언급의 부정확성 등을 지적하며 Cardone Capital 자금 회수를 시사함. 자산 관련 직접적인 가격 예측 발언은 거의 없고 펀드 리스크 경고 중심.

다듬은 글

※ 자동 자막 원문(다듬기 전)

01. see this pamphlet here this is a deal that Cardone capital just bought it's actually a deal that I completely broke down a link that video down below but think about this for a moment they bought the deal for just under a hundred thirty four million dollars here's the deed showing the purchase price just under one hundred thirty four million dollars yet on this pamphlet it says that their equity is thirty nine point four million dollars which is supposed to represent 25% equity which means they're saying the building is worth a hundred fifty seven million dollars wait but he just paid a hundred thirty three point seven million dollars for the deal it says so right on this deed how is he now giving a pamphlet to his investors saying that all of a sudden the deal is worth a hundred fifty seven million dollars that's seventeen point five percent more overnight heck forget overnight the form says at acquisition this was their equity are they trying to deceive new investors or what's up with this and maybe you're thinking oh well Kevin maybe he got a wedge deal he got a good deal and it's worth more the day after he bought it unfortunately based on the spreadsheet analysis that we did that wasn't even close to being true we said a marginal deal for the property would be somewhere between 130 to 145 million dollars anything more than 145 would be big overpaying and anything under a 125 would be an amazing deal he paid 133 so he paid market value for the deal and lowered his expected return just to buy the deal now he might try to argue Wow well I mean we're planning on raising the rents well I don't think in this kind of market anybody's gonna be raising the rents the units were already pretty renovated which usually implies the rents have already been bumped and on top of that the property's got a little bit of a mixed review online it looks to me like he's struggling to find deals to buy and is just parking money but this is just the preface this video today is about a reaction to a video he recently put out where we hear even more BS yo Warren in the 95 crash because crash wasn't in 95 you weren't in the 2001 crash because there was no crash in 2001 and you weren't in the 2008 crash with Cardone capital because you're sitting pretty in a luxurious mansion grant cardones misinformation and deception could end up bankrupting Cardone capital especially at a crazy time like this hi I'm meet Kevin I'm that 28 year old real estate guy who keeps bringing in information and perspective on business psychology making money and real estate I'm also that Kevin who built i with just $9,000 at 18 years old and I'm not talking about partner or syndication money either like grant does when he tries to pretend what his net worth really is instead today I want to focus though on Grant's latest video on investing and my goal isn't to just ride his name or clickbait his name for views I get those come whatever if that you want to leave that comment drop it down below and leave that's fine but for everybody else I want to share with you a real perspective to me real perspective is when somebody in an industry is able to look at somebody else's information and say ah this is where they're right this is where they're close and this is where they missed the mark because guess who benefits from that this isn't about me to me this is about you that makes me happy as when I could share that perspective and help you learn because you could take this information and make a lot of money with it and to me that's a great thing that's a great community service and it's certainly a whole lot better than governor Gavin Newsom telling us all right folks we have a mandatory stay at home but don't worry we won't enforce it so if you want to go out you can yeah he literally said that it's pretty pathetic if you ask me so let's get past pathetic and let's get into oh I guess let's just start this video so I'm for some generic fear-mongering about how now Starr so red and grant told you not to invest in stocks you should invest with him instead we get to minute 1 of the video and this is actually where I want to start the video because the rest of it is too generic so let's start right here and get into stuff we can tear apart that's an office building behind you that is not what you would invest in ok office buildings will get crushed those will get crushed that right there will save your day okay if you could go buy that piece of real estate right there good that right there bad card owned enterprises that's not what you want to invest in because that is dependent upon a tenant being in business yesterday I broke down a study from Harvard for you to show you what happens when goes through a recession which one loses more value which one has more vacancy hint-hint both of the answers there are larger scale multifamily real estate less tenants rent the larger scale multifamily real estate during a recession yeah I know that sounds ironic there's a whole 16 minute video explaining it to you with citation so you should watch it so pointing at a multi-family building and saying that will save your day in a recession is an inaccurate statement nothing really saves your day in a recession it's all on the same ride honestly you know what probably inspired this video is a bunch of people calling because the stock market's tanking going grant III need to get my money out of the fund I need to take my money out I need to withdraw everything I've invested with you and and and I just I just want to keep it in the bank account I want to save it right now that's probably why he's starting with the bank accounts gonna punish you it's gonna charge you man don't leave that's why is staffs there because they're answering the phone going ah crap everybody's trying to take their money out everybody's panicking how do I know that has the potential of being true we'll look at Europe and what's happening in the United Kingdom real estate property funds which is what Grant Cardone is a real estate property fund are freezing withdrawals because they're getting so requests from people to take their money out because people are fearful that multi-families going to crash again like it did in the last recession yet here's Grant spewing misinformation suggesting all as well multifamily doesn't get touched in a recession but it's a blatant miss direction and I might even say flat-out lie because really he should know better we distributed two billion dollars to our investors last month 800,000 of that went to me last month rental property people have to live somewhere now just the heads-up part of me is a bit skeptical when he says I got distributed $800,000 he kind of implies that that's cash flow it's like oh damn dude you got 800 grand in cash flow last month man let me give you some money I want to give em a grand in cash flow - like I get it that sounds cool but knowing grant having experienced how grant phrases what he says and the way his business actually operates the odds are his $800,000 was probably a lot more like ah I got twenty or fifty thousand dollars in distributions from Cardone capital but we bought 75 million dollars worth of a real estate deal and because I get paid oh one percent placement fee hmm 75 million dollars times 1 percent that's $750,000 just for buying a deal that's like a really highly paid real estate agent and the interesting thing is Grant Cardone doesn't get paid based on how good of a deal he got he doesn't get paid on how much below market value he bought that 75 million dollar deal or how much over market value he paid for the deal he gets paid on just straight-up 1% of whatever money he placed that is whatever real estate he bought here's one percent it's in his funds documents there's no secret about that but the point here is notice how he's suggesting I distributed money to investors in the same sentence as I also took a distribution but he's not telling you that part of that distribution is probably I'm not certain but I'm almost certain because of his placement fees which is totally ridiculous by the way quick note I extended the sale on the programs I have linked below which are great study at home material especially during this time when we're kind of stuck at home you could learn how to open and run a property management company and do property management yourself learn about money and the psychology of money become a real estate agent hack learn how to invest in real estate yourself and make good money I don't run a fund I don't operate a fund so I'm not trying to compete with Cardone Capital if you want to invest with Cardone Capital that's fine just use this a sort of free information and free guidance for you but all I ask is you consider the links down below if you'd like an otherwise let's get back to the video rental property people have to live somewhere they have to drink water they have to eat food okay they need entertainment so they're gonna buy Netflix they're gonna watch their Apple TV they're gonna keep their telephone they're gonna drink water they're gonna drink food they're gonna have food delivered to the house maybe they're not very restaurants for a couple months but they're gonna have to live someplace so here's the deception with what grant just said he said tenants have to live somewhere yeah they might not go spend money at retail but they have to live somewhere so he's drawing this parallel that well because people have to live somewhere they're going to rent from me but that's not actually how the market works seeing tough times like I mentioned with the Harvard research and not only do tenants rental burdens go up how much money they have to spend on rent not only does that go up as a percentage of what they take home but according to the Brookings Institute guess what poor tenants are forced to do during tough times they move and they don't get to move across the country the University of North Carolina already researched that it found no during tough times people aren't going to move across the country move to different areas but what they are going to do is they're going to move to poor neighborhoods poor neighborhoods with higher poverty rates higher crime poor schools and ultimately less financial success in those communities so what does that mean that means yeah grant during the next crash you're gonna lose a lot of tenants from your properties because those tenants are going to have to move to lower-income areas in fact I was in Detroit last year and I went through a very high poverty neighborhood and I went through this neighborhood because one of the houses had caught fire and while I was there an arsonist set fire to not just that house but to two more houses so three houses had caught fire within about 45 minutes and here's what a local resident said when I asked them essentially why they moved here yeah I'm just wondering so you said you just moved into the area how long you been out here over here for three months for three months so where'd you come from I come from South West from Southwest and why'd you move here what I move here out of necessity or the price is cheaper here then or rents or what is it yeah it's a little cheaper when you deal with private landlords okay so you try to go directly to the landlords and negotiate a deal with them yes property management is way too high I mean why does a one-bedroom cost as much as a 3-bedroom brick got it and now how many fires have you seen since you've been here since I've been here I see eight in three months eight fires in three months four block radius oh my gosh wait five houses left on my block Corner corner are they just individually burning down yeah and what do you think the cost of this is well after what I just witnessed coming over watching one house over here burning and they're not standing here in this house kick up over here as the police are here in four trucks we're all standing here as you came and ran that ignited as we're standing I'm sorry but that's to quit dental it's a Firebug here incredible man I'm so sorry to hear that when a recession hits tenants become poor and they have to leave even the apartments that they're in and go to lower income and lower expense areas this really sucks for them because they end up getting stuck in what's known as the poverty trap but grant they're not going to be renting from you anymore which means you will have higher vacancy so the reason I don't like your house is because it doesn't produce cash flow if you have a house already what you could consider doing it might want to consider doing getting a loan refinancing your house at two or two-and-a-half percent and use the equity to get invested in cash flow it's just so frustrating when Grant Cardone does this style of talking where he suggests oh you know I don't like your house because it doesn't produce cash flow yeah we get it but neither does your house that you live in and that you own because like you said Graham everybody has to live somewhere and that's called the cost of living unless you're renting your house out to roommates your house doesn't create cash flow we got it but that doesn't mean it doesn't have the potential of producing cash flow that doesn't mean you can't move out of your house and turn it into a rental but you happen to know that very well because you've made a lot of money off single-family real estate but we talked about that in the last video today we're talking about multifamily I'm also not the biggest fan of taking out debt to invest in somebody's fund who's not telling you about the downside risk oh well okay you want to go buy that property right there that one right there all the way down that block it covers that entire block for tenants those tenants aren't going anyplace this okay I'm sorry to keep pausing so much but think about what he just said that's actually really fascinating how he's manipulating here that's that's a that's a good one oh my gosh yeah he goes Oh see this building over here you want to buy that building the one that goes all the way down the block never said emphases he put on all the way down the block he did that on purpose to intimidate you by over emphasizing you want to do it yourself you could go buy that building look he goes all the way over there you want to go go try go try he knows you're gonna look at that and go oh crap I don't even know the first move to do that and now he switched to this intimidation tactic so we've got missing information and now we've transitioned to intimidation to make you feel like he's the only option look I've been through this before folks I'm 62 years old I've been through this more than once I've been I survived 1995 most of you don't even know what happened in 1995 duh oh my gosh okay hold on this is bad grant just said that he survived 1995 but wait a minute nothing actually happened in 1995 nobody talks about it because nothing happened in 95 the last market peak before 1995 was in 1989 and the recession was between 1990 and 1991 Grant Cardone seems to think that something big happened in 1995 which we could take a look here at some charts and see oh wait a minute prices in real estate fell in 89 90 91 they bottomed out in about 94 95 but usually when somebody says oh I survived the crash they don't say hey guys I survived 2012 really so did everybody else who bought stocks or real estate no you say I survived 2008 because that's when the crash happened not when the bottom was I personally believe that a savvy real estate investor in the 80s and 90s would know when the crash was so just a note after filming this I ended up deciding to call my father-in-law because I was sort of reviewing this footage and I realized well wait a minute let me just call my father-in-law out of the blue and see when he thinks the crash period was and what the bad years were so here's that what you started real estate what in like 84 what were the big recessions even though what happened in 1995 the the pundits on TV don't even talk about it was a it was the credit loan debacle oh dude okay more evidence that he either doesn't know what he's talking about or is just confused and unwilling to consider what facts are who's called the savings and loan crisis not the credit and Loan debacle the S&L crisis and no not like SNL like Saturday night life s and Al savings and loan crisis 1600 banks went underwater 2001 I survived that 2008 I survived it well dude okay well first of all there are years saying 2008 that that is it legit crash that's cool okay we'll talk about that in a second 2001 nothing happened in 2001 yeah we hit the dot-com bubble which affected stocks yeah there was 9/11 but real estate maybe saw a little bit of a flattening and prices but there was no real estate crash in 2001 this leads me to believe that he wasn't a heavy real estate investor in the 90s or 2001 at all let's talk about 2008 though Grant Cardone owned a luxurious mansion in the Hollywood Hills that made him over $1,000,000 per year that he invested in that property from I think it was 2003 to 2012 roughly ten years he made over ten million dollars in profit with a single-family house which when he sold that house was able to use those profits to start Cardone capital there's no record of Grant Cardone owning a bunch of big multifamily real estate heavy hit investments in 2008 so he's telling you hey I survived the 2008 financial crisis you should survive it as well okay so we should all go buy single-family houses because you weren't in the ninety five crash because the crash wasn't in ninety five you weren't in the 2001 crash because there was no crash in 2001 and you weren't in the 2008 crash with Cardone capital because you're sitting pretty in a luxurious mansion making a million dollars a year that's a million dollars a year in property value increases not income the property went up through the recession an average of a million dollars per year dude this is the biggest BS manipulation this is the stuff that just pisses me off because it's just straight up lying to people why why is that necessary to lie to people to close a deal what the thing that we're going through right now is bigger than 9/11 2000 1995 all combined plus you could add sandy and Katrina to it this is enormous wait what he's saying that the debacle were going through right now the crisis were going through right now is worse than all of the other recessions he's been through quote unquote and multiply that by the magnitude of two hurricanes and that's how bad this thing is that we're gonna be going through well oh my gosh everybody better get their money out of Cardone capital because if that Harvard study is correct and multi-family real estate lost 40% of its value during the Great Recession lost and up on the same levels as what retail and commercial real estate lost thanks to rampant speculation and multi-family real estate you better get your money out of Cardone capital because if this recession is gonna be worse than those grant ain't gonna save you he's going to take his fee when you try to take your money out and then laugh about it on his way to retirement take your cash out of the banks that might not be solvent in the future are you kidding me oh my gosh now he's somehow casting Jade over FDIC insurance where your money is secure it up to $250,000 per bank what the bank might not be solvent but we're supposed to believe you oh my gosh man this is hardcore sales here take your cash out of the banks and get invested in real assets you can go by yourself go by yourself okay if you need a partner like me because I know what I'm doing I've been five thirty years locations are vital the location you pick is vital not just today but three years five years ten years from now the cash flow you got to have a certain amount of cash flow based on a certain amount of vacancy because you're gonna have vacancy we figure down to about 85 percent that means with 15 percent not occupied we still cashed loads - a pair investors okay so you also have to know how to get great debt our last loan was three point one three percent ten years interest-only so we have stability the entire time we own oh that's not stability let me tell you how interest only loans will work basically you go to the bank and you borrow money ordinarily when you buy real estate you pay the bank back a little bit every single month so that outstanding loan gets smaller and eventually that loan is paid off instead when you take an interest only loan basically Grant Cardone says hey you know what let's just keep that loan full who cares about paying off the loan let's instead take that money that we were going to use to pay the loan off and give it to our investors and we'll call that their dividend you know like 4% or 5% or 6% so really instead of paying off the properties to increase everybody's safety he's just distributing everything as dividends pretty much to continually get more investors for his fund which is sad in fact look at this person who invested $15,000 in Cardone capital and is jumping up and down over his dividends here saying well since I'm getting paid it must not be a scam scam or anything like that I'm actually receiving payments and if it was just a scam I doubt that we'd be paying you know immediately back yeah that's exactly what all the people investing with bernie madoff said and his Ponzi scheme since i'm getting paid must not be a scam I'm not saying grant cardone is a scam but you got to be aware of the deception and not only is that sad but he's getting 10-year financing which is exactly what Harvard found was extremely risky because what happens if in ten years you're in a year like two thousand seven eight nine ten or eleven oh crap that's a five year period where it was next to impossible to refinance your multifamily real estate people had to bail out of their multifamily properties at a loss because of these stupid ten-year terms look 10 interest-only works great when the markets peachy but seriously you're signing up for interest only debt so you can place people's money into real estate and pretend they're getting cash flow when they're just getting what you should have been paying down on the loan really right before a crisis man boom yo I need my money I got to buy Rolex dude it if you're if you're really ladies and gentlemen if you're trying to wait I guarantee you he's been literally getting calls like that over guard I need to take my money out of your phone man then everything the markets going bad the markets go bad I know I know but I swear I told my daddy I was gonna buy a Rolex you know like we've been doing good I just I just need to take my money out of it oh I bet you that's what motivated this video he's getting hammered ooh interesting now remember Cardone capital's been around since the end of 2012 which the market's been a straight-up since then so it's very easy to look at the past and go look how well we did invest with us we could make that money going forward but Grant said himself he's 62 so next crash man's gonna retire I see Cardone capital going away and he's laughing his way to the bank I'm sorry if this sounds harsh I just don't trust stuff like this thanks so much for watching really appreciate