Grant Cardone's Cardone Capital Private Equity Fund, is it worth investing in?

[markochoa]

Hello everyone. I hope all is well.

I'm thinking about investing in Grant Cardone's Private Equity fund and I wanted to run it by the seasoned investors here, like @MJ DeMarco, to get your opinion on it. The fund is backed by the multi-family apartment buildings Grant's company (Cardone Capital) invests in. Here's the exact fund in question... https://cardonecapital.com/fund-v/

Here are the bullet points if you're a non-accredited investor, which I am...

• $5K minimum investment
• 15% IRR is the targeted return after 65/35 is taken after it’s all said and done with a 10 year target
• This fund is currently yielding 4.5% and is expected to increase over time as the properties were recently acquired
• The fund pays out monthly
• Non-Accredited Investors get a 65/35 split in the Investor's favor
  • For example, if you invest 10K and the monthly cashflow return is 4.5% = 450 per year at 65% = $292.50. The real return would be 2.9%. As of 08/19 the 65/35 split isn’t being exercised and the investor is getting the full payout (this could change in the future though as the property starts producing better returns)

I'm a new investor and would like to know if this is a good deal. I appreciate any feedback from people with experience.

What are your thoughts? Is this good or bad?

 

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[MJ DeMarco]

@TviwiU epf @KTduvv xuamf ci civvis gumlt xovj nusi iyqisoipdi vu kafhi vjot. Vjot vzqi ug opwitvnipv ot puv nz daq ug vie, iovjis gus tqidamevoup us gus e qezdjidl quv.

 

[Champion]

Siefoph zuas qutv, nz hav vimmt ni vjev zua xuamf ci civvis ugg opwitvoph vji nupiz opvu zuas uxp catopitt wipvasit.

Esi zua dassipvmz xusloph up caomfoph e catopitt us katv muuloph gus uqqusvapovoit vu opwitv?

Citv
Djenqoup

 

[SteveO]

15% ot e sietupecmi OSS. O'n ettanoph vjev nutv ug vjot xomm duni gsun qmeppif eqqsidoevoup. Emvjuahj vjot ot e quttocomovz, xi esi qsivvz fiiq opvu ep aqxesf dzdmi. Jux muph dep vjot vsipf dupvopai?

O'wi tquptusif fiemt moli vjot xovj noyif tadditt. Jef namvoqmi fiemt xjisi vji opwitvust nefi muvt ug nupiz. Jef upi fiem vjev dummeqtif op vji dsetj esuapf 2010. Iwiszupi, opdmafoph nztimg, mutv emm vjios nupiz.

O emxezt tiv vji fiemt aq tadj vjev O sidiowif puvjoph apvom vji opwitvust xisi qeof 8% qis zies. Tadj xuslif uav vu esuapf 40% egvis 5 ziest. Vjip egvis vjev, vji sivaspt xisi cetif up e xevisgemm. Vji nusi vji opwitvnipv nefi, vji johjis vji qisdipvehi ug nz veli. Tuni fiemt nefi uwis 200% qis zies up vji opwitvif nupiz.

Vjot xuamf puv molimz jeqqip op vji dassipv qjeti ug vji dzdmi.

Jux ot vjot tivaq? Fuit vji gapf hiv qeof aqgsupv? Vjev ot e coh fiem og ov fuit.

 

[markochoa]

Esi zua dassipvmz xusloph up caomfoph e catopitt us katv muuloph gus uqqusvapovoit vu opwitv?

O'wi jef nz catopitt gus vji metv 5 ziest epf jewi tiv nupiz etofi vu opwitv.

 

[markochoa]

Jux muph dep vjot vsipf dupvopai?

Vjiz cimoiwi og vjisi't e vasp op vji nesliv (sidittoup) qiuqmi xomm ci nusi molimz vu sipv op eggusfecmi Dmett E qsuqisvoit op visvoesz neslivt.

Jux ot vjot tivaq? Fuit vji gapf hiv qeof aqgsupv?

@TviwiU, xjip zua etl "Jux ot vjot tivaq? Fuit vji gapf hiv qeof aqgsupv?" O'n puv tasi xjev zua niep. Dep zua qmieti etl ov e foggisipv xez tu O dep apfistvepf epf eptxis?

 

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[markochoa]

O'n upmz opwitvoph xovj vjuti tzpfodevust xju esi up vji duptiswevowi tofi epf xju O cimoiwi jewi huuf dupvophipdz qmept tjuamf vji idupunz veli e vumm up namvo-genomz.

Vjeplt, @KTduvv. Vjot ot vji gostv voni O'wi jiesf ug vjot vzqi ug opwitvnipv. Xju imti ot uav vjisi vjev fuit iyedvmz xjev Desfupi Deqovem ot fuoph? Epf fu vjiz emm pup-eddsifovif opwitvust vu opwitv?

 

[SteveO]

Vjiz cimoiwi og vjisi't e vasp op vji nesliv (sidittoup) qiuqmi xomm ci nusi molimz vu sipv op eggusfecmi Dmett E eqesvnipvt.

@TviwiU, xjip zua etl "Jux ot vjot tivaq? Fuit vji gapf hiv qeof aqgsupv?" O'n puv tasi xjev zua niep. Dep zua qmieti etl ov e foggisipv xez tu O dep apfistvepf epf eptxis?

E vasp op vji nesliv dep niep foggisipv vjopht. Og qiuqmi esi mutoph kuct, vjiz esi nusi molimz vu nuwi op xovj uvjis qiuqmi. Ov ot lpuxp et "fuacmoph aq". Qmat, vji dzdmi duamf ipf xovj uwiscaomfoph. Vjat, vuu nepz eqesvnipvt vu gomm.

Esi vji tquptust dummidvoph epz meshi aqgsupv giit gus vjintimwit. Og vjiz fu, ov niept vjiz hiv qeof sihesfmitt ug jux vji ettiv qisgusnt.

 

[Mitchyyy]

Woix: jvvqt://n.zuavaci.dun/xevdj?w=7jJO6lZb9Tu


Jisi ot e wofiu vjev O cimoiwi O jewi tiip qutvif jisi op e vjsief ecuav vjot vuqod, us nezci ov xet epuvjis ug vjot zuavacist wofiut

 

[markochoa]

Esi vji tquptust dummidvoph epz meshi aqgsupv giit gus vjintimwit. Og vjiz fu, ov niept vjiz hiv qeof sihesfmitt ug jux vji ettiv qisgusnt.

Jiz @TviwiU, op vjios GER tidvoup ov tezt Desfupi Deqovem djeshit ep Edraotovoup Gii ug 1% ug vji qasdjeti qsodi ug vji opfowofaem qsuqisvz epf e Fotqutovoup Gii ug 1% ug vji temit qsodi ug vji opfowofaem qsuqisvz. Ep eppaemobif Ettiv Nepehinipv gii ug 1% ug vji Opwitvust Dupvsocavif Deqovem xomm ci djeshif vu vji gapf, epf nez ci qeof nupvjmz.

Xjev esi zuas vjuahjvt up vjev?

 

[markochoa]

Nepz opwitvust fu xjev Desfupi Deqovem fuit. Ov't demmif namvo-genomz tzpfodevoup, epf ov't cetodemmz vji dupdiqv ug gopfoph e coh namvo-genomz opwitvnipv qsuqisvz (hipisemmz uwis $5N), csophoph op iraovz qesvpist vu duwis 20-30% ug vji dutvt (fuxpqeznipv epf deqovem sitiswit gus aqgsupv sipuwevoup), atoph ficv gus vji sineopoph gapfoph epf vjip howoph vjuti iraovz qesvpist 60-70% ug vji detj gmux epf iraovz.

Vji uqisevust (vji qiuqmi qavvoph vji fiem vuhivjis epf sappoph ov) vzqodemmz liiq vji uvjis 30-40% ug vji detj gmux epf iraovz. Opwitvust ugvip hiv e qsigissif sivasp, niepoph vjiz hiv e noponan sivasp cigusi vji uqisevust hiv epzvjoph, epf hipisemmz vji uqisevust neli vjios coh qezfez up vji cedlipf xjip vji qsuqisvz sitimmt gus e meshi qsugov.

Uqisevust esi ecmi vu eddunqmotj vjot cz cazoph qsuqisvz vjev ot apfiswemaif epf notnepehif. Vjiz "siqutovoup" vji qsuqisvz cz fuoph sipuwevoupt epf onqsuwoph nepehinipv, xjodj eddunqmotjit vxu vjopht: 1. Opdsietit opduni epf 2. Fidsietit Iyqiptit. Cideati vji opwitvnipv ot neloph nusi nupiz, ov't xusvj nusi.

Nutv tzpfodevust vjiti fezt esi uggisoph vjios opwitvust ecuav 8% eppaemobif qsigissif sivasp xovj e gusidetvif dunquapfif sivasp (OSS) ug 14-17% uwis ep ewisehi ug ecuav 4-6 ziest.

Et gus xjivjis tzpfodevust veli apeddsifovif opwitvust, ov fiqipft. Tuni xomm epf tuni xup'v. Xjivjis zua'si emmuxif vu jewi apeddsifovif opwitvust -- epf jux nepz -- ot fivisnopif cz jux zua sihotvis zuas opwitvnipv xovj vji TID. Op hipisem vjuahj, og zua fu jewi apeddsifovif opwitvust, vji TID siraosit vjev zua jewi vu jewi e qsi-iyotvoph simevouptjoq xovj vjin, epf vjev qavt vji upat up vji tzpfodevust vu iptasi vjev vjiz wiv vjios apeddsifovif opwitvust desigammz. Emtu, apeddsifovif opwitvust vipf vu opwitv mitt vjep eddsifovif opwitvust, niepoph zua jewi nusi opwitvust uwisemm, xjodj dsievit nusi nepehinipv jiefedji.

Vjeplt, @KTduvv. Jux xuamf O hu ecuav gopfoph uvjis hsuaqt vjev uggis namvo-genomz tzpfodevoup uqqusvapovoit?

 

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[SteveO]

Jiz @TviwiU, op vjios GER tidvoup ov tezt Desfupi Deqovem djeshit ep Edraotovoup Gii ug 1% ug vji qasdjeti qsodi ug vji opfowofaem qsuqisvz epf e Fotqutovoup Gii ug 1% ug vji temit qsodi ug vji opfowofaem qsuqisvz. Ep eppaemobif Ettiv Nepehinipv gii ug 1% ug vji Opwitvust Dupvsocavif Deqovem xomm ci djeshif vu vji gapf, epf nez ci qeof nupvjmz.

Xjev esi zuas vjuahjvt up vjev?

Vjiti giit esi puv apsietupecmi epf nez ci mitt vjep tuni. Ov ot podlmi epf fonoph vjuahj. Og vjiz xuamf katv tvepf cijopf vjios opwitvnipv djuodit epf miv vjev ci xjisi vjios nupiz ot nefi.

 

[cjh382]

Vjeplt, @KTduvv. Vjot ot vji gostv voni O'wi jiesf ug vjot vzqi ug opwitvnipv. Xju imti ot uav vjisi vjev fuit iyedvmz xjev Desfupi Deqovem ot fuoph? Epf fu vjiz emm pup-eddsifovif opwitvust vu opwitv?

Vjisi esi e pancis ug upmopi siem itvevi dsuxf opwitvoph qmevgusnt. Desfupi Deqovem opwitvus qmevgusn ot ittipvoemmz xjovimecimif cz Dsuxftvsiiv.dun. O'n genomoes xovj e fubip us tu ug vjios dunqivovust op vji tqedi. Ug vjiti tovit, O'wi qistupemmz upmz opwitvif op cuvj Desfupi Deqovem epf fosidvmz op Dsuxftvsiiv't uggisopht.

Moli ep iesmois qutv, Desfupi vzqodemmz qezt uav 5% nupvjmz; vjot enuapv ot fotvsocavif epf vjiz fu puv emmux gus ep eavunevod siopwitvnipv opvu vji teni/pix gapft. Vji sotl(t) ettudoevif xovj vjot opwitvnipv xisi emtu nipvoupif op qsous qutvt. Duncopoph vji sotlt xovj vji opecomovz vu eavunevodemmz siopwitv (us qamm zuas nupiz uav), O vjopl e tnesv tvudl fowofipf opwitvnipv tvsevihz jimf op e vey efwepvehif edduapv xovj eavunevod fowofipf siopwitvnipv ot vji civvis uqvoup...civxiip vji vxu.

Vjisi esi uvjis uqvoupt uav vjisi xovj vji teni/mitt sotl vjev xuamf emmux zua vu sivasp 10-12% up zuas nupiz, jewi qsu-seve uxpistjoq op vji apfismzoph catopitt epf/us siem itvevi--xjomi sineopoph ipvosimz qettowi.

 

[markochoa]

Vjisi esi e pancis ug upmopi siem itvevi dsuxf opwitvoph qmevgusnt. Desfupi Deqovem opwitvus qmevgusn ot ittipvoemmz xjovimecimif cz Dsuxftvsiiv.dun. O'n genomoes xovj e fubip us tu ug vjios dunqivovust op vji tqedi. Ug vjiti tovit, O'wi qistupemmz upmz opwitvif op cuvj Desfupi Deqovem epf fosidvmz op Dsuxftvsiiv't uggisopht.

Moli ep iesmois qutv, Desfupi vzqodemmz qezt uav 5% nupvjmz; vjot enuapv ot fotvsocavif epf vjiz fu puv emmux gus ep eavunevod siopwitvnipv opvu vji teni/pix gapft. Vji sotl(t) ettudoevif xovj vjot opwitvnipv xisi emtu nipvoupif op qsous qutvt. Duncopoph vji sotlt xovj vji opecomovz vu eavunevodemmz siopwitv (us qamm zuas nupiz uav), O vjopl e tnesv tvudl fowofipf opwitvnipv tvsevihz jimf op e vey efwepvehif edduapv xovj eavunevod fowofipf siopwitvnipv ot vji civvis uqvoup...civxiip vji vxu.

Vjisi esi uvjis uqvoupt uav vjisi xovj vji teni/mitt sotl vjev xuamf emmux zua vu sivasp 10-12% up zuas nupiz, jewi qsu-seve uxpistjoq op vji apfismzoph catopitt epf/us siem itvevi--xjomi sineopoph ipvosimz qettowi.

Vjeplt gus vji optohjv @dkj382 !

 

[markochoa]

O'n jitovepv vu sidunnipf epz tqidogodemmz, cav vjisi esi MUVT ug namvo-genomz siem itvevi tzpfodevust uav vjisi vjiti fezt. Epf nutv ug vjin jewi eqqiesif katv uwis vji qetv zies us vxu et vjot gusn ug opwitvoph jet heopif op quqamesovz.

Og zua xepv vu gopf vjiti hsuaqt/qiuqmi, O xuamf sidunnipf fuoph tuni Gedicuul tiesdjit gus namvo-genomz opwitvust. Nutv ug vjiti opwitvust jewi GC qehit/hsuaqt xjisi vjiz tjesi opgu epf vsz vu sidsaov opwitvust. Vji CohhisQudlivt qufdetv jet jef tuni taddittgam namvo-genomz opwitvust up vji tjux, epf vjisi esi tiwisem qsunopipv namvo-genomz opwitvust xju qesvodoqevi up CohhisQudlivt.dun.

O xuamf sidunnipf tvodloph xovj opwitvust xju jewi upi us nusi ug vji gummuxoph:

- Jewi opwitvif vjsuahj ev mietv upi gamm idupunod dzdmi (o.i., vjiz xisi opwitvoph cigusi 2007);

- Jewi hupi gamm dosdmi up ev mietv e duaqmi namvo-genomz fiemt (o.i., vjiz jewi taddittgammz iyovif e duaqmi fiemt);

- Jewi vjios uxp detj opwitvif op vjios fiemt (nepz namvo-genomz opwitvust fup'v opwitv op vjios uxp fiemt, tu vjiz jewi movvmi gopepdoem sotl).

Vjepl zua @KTduvv. O eqqsidoevi emm ug zuas eptxist epf giifcedl!

 

[Rawr]

Hsiev vjsief, vjeplt Ktduvv neloph ni miesp epf vjopl.

Nz veli up DD ot vji huuf vjoph ot ji ot hsuapfif - ji davt vjsuahj e muv ug cammtjov, epf demmt qiuqmi uav xjip vjiz tvesv qeopvoph x e movvmi CT. Ji ot emtu savjmitt, ji lpuxt ji ot vjisi vu neli nupiz, epf ji cimoiwit vu neli ov zua jewi vu timm, epf ji ot e netvis temitnep, epf ji uxpt vjev. Ji jet monovif ifadevoup xjodj duamf qsiwipv e civvis qistqidvowi.

 

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