Cardone Capital...anyone looked into this?

[Jade S.]

Hey Folks...just curious if any of the accredited investors lurking on BP have looked into Cardone Capital.  I see he touts this particular arm of his company quite a bit lately, offering preferred returns during the "hold" phase and returns on invested capital on the exit side with multi family acquisitions.  

[John Nachtigall]

I was so curious I had to sign up. I figured it would put me on a mailing list forever, but what the heck

I saw the PPM for Reserve at Ormond Beach. 

They offered 6% preferred and a 65/35 split for everything after on returns and full capital back then 65/35 during disposa fees 1% asset management, 1% acquisition, and 1% disposition.

A basic deal on a crowdfunding site (like RealCrowd or CrowdStreet) is 8-10% preferred and 80/20 or 70/30 split. 3-5% fees?  Also lower minimums on crowdfunding sites and more experienced general partners. 

Other points

• Basic value add deal to a multifamily
• It was actually hard to get the link, the email to sign up bounced every time I tried, I ended up using the website form.
• I was assuming I would get the "hard sell" considering Cardone's reputation, but it sold out 2 days after I got approved to view the deal so never contacted
• $100,00k minimum
• Interesting that I have not been contacted since either, I was expecting to be on the mailing list for everything he sells but I have gotten no spam at all so good for him
• However, the email that announced they were funded was sent over CC, not BCC so all the emails were in the open (about 200 from what I can tell). They apologized about 2 hours later and said it was an automated system problem.

Overall, my opinion is that it is inferior to most any deal you will see on CrowdStreet or RealCrowd. I do watch his real estate show every Monday, he teaches basics of commercial investing. It is not bad, you just have to filter out the stupid stuff like "retail is dead" and "any other syndication is stealing your money" He says he has a large percentage invested in every deal but if I am reading the PPM right then he has exactly 0% invested once it is fully funded. He sold 8,330,000 million worth of shares and that is the full equity stack. But he teaches the basics like NOI for people just learning. And he is entertaining to be sure.

Hope that helps satisfy your curiosity.