Grant Cardone bashing single family

[Justin S.]

Just wanted to throw my two cents in about Grant Cardone. He has been completely bashing single family investing lately in hopes of getting people to invest in his fund and I really don’t like it. His entire argument against single family is that if it ever goes vacant you lose money. Obviously this is true in the short term, but the goal is never to own one house. I started six years ago buying, flipping and holding very small rental houses while I worked my regular job on the side. I started with one, and I can tell you that when you only have one you make sure that it’s never vacant. Then two and three and four, and at that point even if you have a vacancy for a small period you still cash flow just fine. Long story short in a small period of time you can build up a portfolio that is diversified enough to handle some vacancy and you’ll get a lot more than the 6.5% Cardone wants to give you. Last year I left my job and now live off my real estate income. I now focus on larger commercial deals, and it’s all because I started with small single family homes. I wish everyone the best. Feel free to message me if I can ever help.

[Steve Vaughan]

Grant started with houses. I started with a couple mobile homes. Then to houses. Then to apts.  It's like me having a massive following and bashing mobiles, where I started. 

The mobiles were great %-wise and easy to exit. Houses you control and are easy to exit. How easy is a massive apt community to exit? 

How easy is it to raise capital and keep all the partners/investors happy? 

How easy is it to shell out $25k+ in legal  just to stay out of hot water with the SEC and other regulators so you have a proper offering and can raise money?

How comfortable would you be investing in something you have absolutely no say in? Nobody but Grant and maybe a key man or 2 can even vote on major decisions.

Those details aren't discussed of course during the rah-rah and rant show. It's salesmanship. For Grant. He couldn't care less if we buy houses or not as long as it doesn't prevent us from investing in one of his no-say syndications.