Real estate capital raising and syndication
Grant Cardone on Raising Capital, Real Estate and Bitcoin
Billionaire Fireside Chat: Grant Cardone on Raising Capital, Real Estate & Bitcoin
Real estate sponsors and fund managers who want to hear how one large operator thinks about fund terms, investor communication and building an audience.
What this talk covers
Grant Cardone explains why Cardone Capital raises money from its own social media audience instead of a large bank fund. His main objection is the fund term. A three year fund with two one year extensions, he says, puts a gun to your head and forces a sale at a time nobody can predict. He has a strong personal preference for long hold periods.
He also covers a Miami deal called Bokeh, bought for $235 million out of bankruptcy, and his view that location matters most. Later he describes pairing cash flowing real estate with Bitcoin. He closes with why raising money makes investors partners instead of customers, and a prompt to question what you believe about money.
- 1Pick the right location
- 2Set a realistic rent plan
- 3Brand the building
- 4Build goodwill with residents
- 5Remove items before adding any
Five points worth keeping
- Choose the audience and set terms. Grant says he uses social platforms so he can set the terms himself. He prefers this to taking a large bank's fund money with a short clock.
- Short fund terms force bad sales. He argues a three year fund with two one year extensions pressures the buyer. Nobody can predict the market in five years, so he prefers longer hold periods.
- Reach beyond a single room. Grant compares a room of 500 people with an online audience of 30,000. If 1% are interested, that is 300 possible investors he can pick from.
- Investors become partners, not customers. He says an investor who is paid each month becomes a long term friend. Cardone Capital has 20,000 investors and sent out $8.3 million the previous month.
- Check what you believe about money. Grant suggests writing down what you believe to be true that may not be true. He says he does this a couple of times a year.
Worth quoting
"Raising money has been the best thing I've ever done in my career. Not just for me financially, but for the other people financially."
"What do I believe to be true that may not be true?."
Facts and figures
- Grant says Bokeh was bought for $235 million after being taken out of bankruptcy, and he believes it is worth about $350 million.
- Cardone Capital pays about 20,000 investors every month and sent out $8.3 million in the previous month.
- Grant says Bokeh has 336 residents who pay $4,500 a month.
Sources
From Richard C. Wilson's Centimillionaire Strategies YouTube channel: Billionaire Fireside Chat: Grant Cardone on Raising Capital, Real Estate & Bitcoin. Quotes come from the video captions, lightly edited for readability. Figures are the speakers' own estimates and experience.
General education only. Not legal, tax or investment advice.
Talk to a securities attorney to explore options around fund term structures, investor solicitation rules and offering documents. Do not use AI to write your own legal agreements.
Related questions
- What is the difference between a syndication and a real estate fund?A syndication raises money for one specific property or deal.
- How do I raise money for my first apartment deal?Start with the deal, because a good one is far easier to fund than most first-time sponsors expect.
- What is a capital stack in commercial real estate?A capital stack is the full set of money that pays for a commercial property, ranked by who gets repaid first.
Questions about this video
Why does Grant Cardone avoid large bank fund money?
He says the terms are usually a three year fund with two one year extensions. He feels that puts a gun to his head and stops him buying great real estate, because the market cannot be predicted over that span.
How long should a real estate syndication last, according to Grant?
He shares his personal preference for long hold periods. Hold periods vary by deal, and many sponsors talk to a securities attorney about how to structure them.
How does Grant describe forcing appreciation on a property?
He lists location first, realistic rent plans, branding the building, building goodwill with residents, and removing items like landscaping or furniture before adding anything.
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