1. Large institutional sized RE investments aren’t on Loopnet. They’re typically sold direct since the number of buyers who can and will buy these assets is very small.

   That being said, you have every PE group, REIT, and syndicate in the market trying to buy the same limited number assets. All with other people’s capital…of course these are overpaid.

   On top of overpaying, in Grant’s case, he buys the assets himself first then sells off partnership shares to his members. I’ve never seen specifics on this, but I bet there’s a significant markup from the initial purchase price he pays and what investors end up paying for their % membership interest.

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2. You talk about the % of tenants paying on time but don't mention the % of units rented. This is pretty darn important.Being highly leveraged with hefty mortgage payments and very low % profit means that maintaining over 85 to 90 % rental capacity is vital to stay in a positive cash flow. There are reports of GC's rental % falling below this margin because of the pandemic. If that continues it won't be long before banks put him in default. That would kill his credit rating.

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3. Frankly, I think that his business model is unsustainable for a number of reasons. He's not marketing a realistic business opportunity. Instead, he is marketing a personality cult for people who are entirely clueless about investing but expect that with enough wishful thinking and relatively little money to invest they can be "awesome" just like Grant. A lot of his training, mindset and sales approach comes from his commitment to the scientology cult an organization whose fraudulent nature and despicable ethics are amply documented.

   1. He makes guarantees that no one could realistically make. If the future development of the market–any market–were a sure thing all investors would be making money at all times. In fact, there would be very little liquidity as an investment is generally a bet that one entity makes against another (i.e. one wants to sell because they feel their future potential is low while another wants to buy assuming the opposite).

   2. The market is cyclical. Making a promise about the outcome of in investment in a fixed time period, say, 10 years is a fool's game. Period! Markets are also subject to disruption such as covid. However, I think that Grant's business model is bad enough on its face even without such disruptions.

   3. Interest rates are at a historical low. They have no place to go but up.

   4. Politics interfere with the market. This is particularly prevalent in first-tier markets that promise rapidly increasing returns such as NY and CA where rent control and other legislation hostile to investors is growing like a cancer. This has severe consequences on the value of properties. There are also strong indications that the Biden presidency may have devastating consequences on investors with the possibility of crushing capital gains taxes and an abolition of 1031 exchanges.

   5. Grant invests in second and third tier markets. These markets can turn out to be undervalued and bring a nice increase for a time. But they are also the first ones to collapse when things go wrong as they lack the economic basis that would allow them to shake off a negative market correction.

   6. He combines high leverage (debt) with the anticipation of a high back-end gain (investing for wealth building). This is a tenable but also very risky speculation strategy that should only be pursued by well capitalized investors. However, when you add his promise of significant dividends (investing for income) it raises the question how to finance these dependably from highly leveraged properties. It is no mystery why his investment strategy has shown such a diminishing tendency from fund to fund. He may find himself getting close to Ponzi scheme territory as he progresses.

   7. His fees are wildly excessive and are making it even less likely that he will be able to deliver on his promises. They also create a significant conflict of interest between him and his investors when it comes to issues such as exit strategies from specific properties.

   8. Another conflict of interest as well as lack of transparency is his self-dealing. Along with his grandiose promises, this is IMO one of his greatest vulnerabilities. Not just for the funds but for him personally. (The class actions are certainly planning to take him to task for that.) On one hand, he tells his investors that he has the experience to get them deals that are well below market value; on the other hand, he flips properties to himself BEFORE his investors get anywhere near these "deals."

   9. IMO his investment scheme is unsustainable in light of the promises he has made to his investors–even under ideal market conditions. It requires constant growth in market values, income generation and fund volume in order to keep all of the plates spinning. It also requires a ready supply of below-market properties. As his fund grows–as it must in order to keep the scheme going–the availability of such properties is becoming a serious problem.

   All told, the under-performance of funds 3-5 is no accident. I expect that he will feel the pinch to add more funds all too soon and that his scheme will continue to show an ever-diminishing return. But of course, with his fee structure he will continue to get paid no matter what while his "investors" will be the ones holding the bag. All they will have to show for themselves is the contact high of having been lectured by their wealth guru and having vicariously enjoyed his boiler rooms, condo, cars, jet and trophy wife.

   Naturally, all of this is just my informed opinion. But this is not what I would consider a business model with an even adequate probability of success.

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4. It does not matter. Grant will hide behind his corps the same way Trump does

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5. Hi mate.
   This is ok but I would be interested in how the UK will get out of our 2tr debt from an Account pov.
   I am a financial adviser so I think spend our way out. We will never go bankrupt as we print our currency. Obviously we need to control inflation which from what I understand will be ok for next 5 years or so

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6. Such a loser, you looks broke man, where is your jet ? Grant is educating a lot of people for free and changing their millions of lives and you a loser talking shit about others !

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7. Hey Thomas, where is this publicly available info from pls? I thought in US people didn't need to show accounts unless public.

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8. Hey Thomas,
   Can you make an update video on your first but to let property

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9. You are a complete moron, you don't know what the hell you are talking about!! Stop using Grants name to try to get viewers jerk.

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10. Risky way to farm a few subs

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11. Thanks for bringing the volume up! Keep these great videos coming.

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12. Sick video :))

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13. Great video Tom – hopefully Grant can improve his revenues, but i'm not sure

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14. Let me know what you think about Grant Cardone and Cardone Capital, do you think he will be able to generate more income to pay to investors?

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