Cardone Equity Fund VI, LLC

[Mark S.]

There are multiple threads on the forums about Cardone Capital and it seems things have changed over time (i.e., investment minimums, preferred returns, etc.), so I thought it might be helpful to evaluate the newest/current fund open to non-accredited investors: Cardone Equity Fund VI, LLC.

It looks like:

- $5,000 minimum investment

- capital call of up to 10% of original investment can be requested

- no preferred return of 6%, although the TARGETED cash flow during the hold period is 6%

- 65% investors / 35% manager split of distributable cash

- (intended) monthly distributions can take 3-6 months to begin depending on when property(ies) acquired

- estimated 10 year hold

- same 65% / 35% split on the back end

- current cap rate of about 5% on 10X Panama City Living property

- 1% acquisition fee, 1% disposition fee, 1% asset management fee

Feel free to add/correct any info above along with comments on the syndication deal. I personally don’t have an issue with the acquisition, disposition, and asset management fee, but no pref, 10-year hold, possible capital call, and 65/35 split all make it seem not so desirable.

Thoughts?

[Kathy Fettke]

No preferred and a target of 6%? Yikes