Massive Debt is Crushing Grant Cardone & Cardone Capital.
Table of Contents
- Grant Cardone decided to shut down the agency yesterday without any previous...
- Even closing down an entire division it looks like 80 out of roughly 180...
- Sue right now anyway and kind of like haha sucks for them which is almost kind...
- We'll help you out like we got rooms we can help you which sounds really cool...
- Got nothing you can't get a loan against it you can't withdraw it I mean that's...
- Time as during a live stream Grant Cardone is telling a caller that now is...
00:00
Grant Cardone decided to shut down the
agency yesterday without any previous
notice
holy smokes y'all you better max out
your health because apparently he's
going into a rough time and it keeps
that word already apparent let me share
with you some things that are going to
make it extremely apparent and then
hopefully share some lessons with you
because I'm getting nervous so much so
that I got myself a short moment assange
with just to be able to defend myself in
case I need to even got these little
00:30
arrows to go with it so let's get into
it
dr. Phil is apparently selling his house
and his weird gun collection as well as
his bizarre pool table room this is
having people on Twitter asked if dr.
Phil's house needs an exorcism MIT
Romney is dumping his place that he
bought in Deer Valley Utah the
prestigious a ski resort area and hedge
fund billionaire Ray Dalio who correctly
in an insane twist of elements bought an
01:02
insurance policy that the market would
crash in March of 2020 back in November
of 2019 somehow still lost 20% of his
hedge funds value because he wasn't able
to properly predict this Black Swan
which who could blame him but had he
held on to the 1.5 billion dollar bet he
made in November he would be the king of
the hill today and if that weren't bad
enough real estate mogul Ben Bala is
01:33
lamenting that his hotels are having
occupancy difficulties and we can only
imagine what's happening to his retail
Holdings right now but then we get to
the icing on the cake of all of this and
after the icing on our cake I'm gonna
share with you some lessons and some
things that I'm doing differently that
are coming out of all of this craziness
that's going on so this morning started
out like any typical morning I was
sitting here trying to figure out what
it is that death runes do again I kind
of forgot what it was they do but then I
02:04
was thinking about getting some
vengeance and I looked in my email and
my Instagram
my text messages we're all getting blown
up with some insane news a happening
over at the offices of mr. 10x Grant
Cardone let's get right into this
because this is mind-blowing
but first apparently I need to read this
disclosure just to make sure the shirt
remains as powerful as possible the
disclosure is the following information
is being released for the public good in
02:35
an act of investigative journalism that
should be protected under California
shield laws also absolutely everything
in this video that you hear could be
complete opinion or wrong so don't
consider any of this fact unless you
verify it yourself I'm sure that'll work
all right let's keep moving on I have
now received multiple reports from
multiple different sources that on March
19th a Grant Cardone did a massive
unannounced a layoff of team members
from all divisions within his office
03:07
even closing down an entire division
it looks like 80 out of roughly 180
employees got the cut the boot so to
speak without any prior notice
apparently there was a team meeting on
Thursday the 19th and 80 people were
just fired and on their way out as if
things couldn't be bad enough certain
people ended up getting the letters from
the Grant Cardone attorney I just want
you to think about this because this
03:39
this just works me when I hear something
like this I mean look I feel bad for
Grant Cardone but look on one hand if
you're driving around with a flashy
lifestyle and jet-setting around I think
you probably ought to take care of your
employees rather than firing them
without notice and then sending legal
threats after them like Ikes
yikes yikes you know there's a company
here that's actually headquartered in
Ventura California called Patagonia and
they don't show off flashy riches or
04:09
anything but they offered all of their
employees pay without work while the
stores are closed the employees are
continuing to get paid just so they can
survive through all this madness
so in other
contrast like I understand if you're
like a car dealer or you're in the
restaurant and you can't pay your
employees because you're not making any
money but here you have Grant Cardone
who shows off this super high profitable
flashy lifestyle tells everybody he's a
billionaire he doesn't necessarily take
04:41
off all of the money that his investors
put in or all the money he owes to the
banks to come up with his billion-dollar
figure but shows off this essentially
billion our lifestyle yet fires people
and sends them out the door with legal
threats I feel bad for grant but right
now from this POV I feel more bad for
his employees I have to say these kind
of pressures make you wonder is Cardone
capital and Grant Cardone getting
crushed under a mountain of debt which
is kind of like what Jordan Belfort the
05:12
wolf of Wall Street suggested might
happen now I've been absolutely
inundated with emails and screenshots
and documentation but to protect as many
people's identities as possible I'm not
gonna read this off word for word but
let me just tell you this I'm looking at
an email right now it introduces this hi
so and so the very first bit of
information basically says hey broski's
if you pissed off which you probably are
because we're not gonna pay you even
though you're owed money or you think
you're owed money make sure if you've
05:45
already hired an attorney that you have
your attorney email us because we don't
want to talk to you so just just stop
reading now and have your attorney talk
to us and I'm reading this I'm like oh
my gosh your farewell email to your
employees is have your attorney get in
touch now apparently in response to this
there are multiple employees actually
thinking about lawyering up but here's
Grant Cardone on YouTube a day later
Friday on his public livestream going
hey well courts are closed people can't
06:17
sue right now anyway and kind of like
haha sucks for them which is almost kind
of like what I feel like in a twisted
way is a conversation he probably had
with his staff attorney right before
which is it's totally speculation but
it's just weird let me play the clip for
you when you put these two things
together it's like oh my gosh
when
be able to like do me for the ballet or
my buddy shooting you right now bro
nobody nobody soon anybody right now
like the email then goes on to explain
why the company is not going to pay
06:47
these employees whether they're owed
money or not which when I first read
this I thought ah this is probably just
another he said she said and it's a
dispute and look they're always disputes
III don't know like if I'm an employer
and I let somebody go and there's a
dispute I'd rather overpay them just so
we could leave everything on a positive
note and there aren't people out there
making videos talking about how odd it
is that something like this is going on
see because in that email they clearly
say you know what we're not paying you
07:18
don't expect any checks from us and hey
if you need to touch base again in the
future whatever so be it
but we ain't paying yet so here we go
not only are you fired but now don't
expect any last checks or income that
maybe you were expecting as an employee
sorry you ain't getting it which to me
if you're an employer it's your job as
the employer to clearly communicate the
policies to the employees because if
you've got multiple employees that are
now getting fired that are expecting
money you're gonna have a lot of
07:50
pissed-off people and look I'm not
trying to bag on Grant Cardone here
maybe this is just a sign that times are
really really difficult right now all of
a sudden I mean I think a lot of people
got blindsided so I get it this isn't
necessarily the way I would go about
business I've made videos obviously
before about working with his attorney
that you could see the link below for a
video that I did breaking down one of
her depositions but take a look at this
I mean here's a post that was on
Facebook any agencies hiring right now I
was a team lead media buyer at Cardone
08:20
advertising up until yesterday Grant
Cardone decided to shut down the agency
yesterday without any previous notice
I'm looking for a job thank you and
somebody shared that post and said
employees have been heard walking around
saying who's got my money who oh that's
that's a good one okay I gotta give it
to this guy Ben Ben you and everybody
else deserve two free stocks with a
weeble if you deposit $100 and use that
link down below
did extend that promotion through the
end of the month and of course you
08:52
deserve to join me in my own programs
linked below the price it does go up on
Monday but we ain't done yet we now look
up Grant Cardone on Twitter we could see
this tweet where Grant Cardone is
looking for tenants for pretty much all
of Cardone capital's investments and the
tweet kind of makes it seem like he's
giving these units away to people who
need shelter like there was just a
hurricane and he's like hey guys if if
you need temporary housing come here
09:22
we'll help you out like we got rooms we
can help you which sounds really cool
and Noble but then when you click on the
link you see mention that well
unfortunately because of the Fair
Housing Act we can't give these rooms
away for free but do feel free to fill
out the form and we'll let you know what
we've got for you which first of all I'm
not expecting him to give these rooms
away for free but his tweet kind of
implies he's doing this as a community
service and second of all the Fair
Housing Act in my opinion says nothing
09:55
about you can't rent out an apartment
for free I've never heard of that the
Fair Housing Act says you're not allowed
to discriminate against people unfairly
because of their sex or their race or
religion but there's nothing that says
you can't create a zero value contract
with somebody again not saying he should
give away apartments for free and and
who knows maybe there is something that
says well I mean you're charging those
tenants why are they living for free
well I don't know me because I like them
I'm trying to help them out I'm doing it
10:25
who cares like that doesn't matter the
point is the tweet is not congruent with
what the actual sort of fine print says
which we kind of see this over and over
again which by the way in case some of
this is making you nervous and you're
thinking about taking your money out of
cart on capital here's just one
paragraph from Cardone capitals
operating agreement and it's called no
withdrawal of funds which may be there
are other terms in the agreement that
say for some reason or with some
extenuating circumstances you can get
10:55
your money out of the fund but I have a
feeling it's going to be very difficult
to get your money out of card on tab
right now and if too many people try to
get their money out of card on capital
some people are gonna end up getting
stuck with these properties when they
end up having to sell if this continues
now I'm not suggesting that that's gonna
happen I don't know my goal is that some
kind of vaccine comes out tomorrow all
of this is cured we go back to normal I
do not wish bad upon Grant Cardone
certainly not his employees certainly
11:26
not his tenants I'm just saying this
reiterates to me exactly why I'm nervous
about paying market value for real
estate and and no I'm not trying to turn
this into a pitch for this is why you
should buy my course so you can learn
how to buy wedge deals below market
value or learn how to do property
management yourself or manage your own
money or whatever like I get it I'm not
trying to turn it into that but this is
exactly what happens when you sign up
for interest only debt you pay market
value or you overpay to get into deals
11:59
and you don't have any kind of control
when you give your money to a fund when
a fund has your money you're screwed at
least if I have a house and I need to
liquidate it and sell it to take the
equity to pay my bills
so I don't go bankrupt I can do that if
I have a hundred grand in stocks and
they go down 50% in value at least I
still have 50% I can sell and use to pay
some bills in an emergency fund right in
theory your investments are an emergency
fund but if you can't take your money
out of your investments at all you ain't
12:30
got nothing you can't get a loan against
it you can't withdraw it I mean that's
bad I'll tell you one thing that this is
making me think is I don't think I ever
and like this Kevin
future Kevin watch this video don't
create a syndication unless you figured
out a way to solve all these problems
because I think what's happening is a
lot of vacancies are happening right now
the property management companies are
calling up Cardone capital hey boss we
can't get these units filled we're
having trouble can you use your social
13:02
media leverage and get us some more
applicants because we can't find anybody
to rent these units and all of a sudden
you're starting to look and go crap I've
been promising everybody six or four or
five percent dividends depending
which fund you're in that's a different
dividend it's so confusing I can't track
at all I don't really care to either but
the point is it's like how are you gonna
pay your loan and give all these
dividends and now you can't fill the
unit's that's bad and see that's the
other problem with syndications as well
is they prefer to get at what are called
13:32
high pop tenants over high quality
tenants and I mean I don't blame them
but this is how that works let's say you
have a rental unit that has a market
rent of $1,800 a syndication would
rather try to rent the unit for $1,850
because it makes all of the buildings
worth more and it makes the fund look
more successful and they would rather
rent the units to lower quality tenants
who are willing to pay more money then
doing what I like to do which is if the
market rent is 1819 hundred $80 pricing
14:04
it's slightly below market value just to
make sure I get a higher-quality tenant
and when I say quality tenant like I
don't want I don't want y'all to think
that like I'm discriminating tenancy or
whatever like I do not discriminate but
I do look for more stable jobs more
stable credit scores more stable rental
history right these are the choices I
have when I slightly underpriced you
don't get that luxury when you're trying
to fill units at a premium scrolling
down the rest of the Twitter feed you'll
find that Grant Cardone who used to
always say 10x everything 10x you're
14:36
spend 10x your employee hiring 10x your
business 10x your dreams 10x your goals
10x everything a dollar spent is not a
dollar spent it's a dollar invested you
want to grow you spend money on your
business you get more ads because they
pay you you get more employees because
they pay you well now Grant Cardone has
revised that to 10x everything except
spending maybe that's because he's
starting to look awfully nervous but
wait that's not all cardones advertising
15:08
division which used to be a partnership
between Grant Cardone and Frank Kern has
shuttered its doors all employees who
worked for the advertising division are
fired which no there were not 80
employees working for the advertising
division people working apparently from
what I hear working for Cardone Capital
Cardone Ventures Cardone
you and I think like the marketing team
or something else all branches have
literally lost employees everything is
getting scaled back this at the same
15:39
time as during a live stream Grant
Cardone is telling a caller that now is
the time to be an example we play this
and then let's get into some lessons and
takeaways here show people what they
should be doing the handouts are not
what people need right now they need
examples because the government's going
to give some handouts we about that go
through the biggest handout dish out
like I'm telling you it's gonna be
trillions it ain't gonna be like what
they're talking about one and a half
16:10
trillion it's gonna be three or four or
five trillion dollars what people are
gonna need though is examples and the
government cannot give a good example
people need Clinton you to be courageous
I need to see what you're doing every
day
I don't know I'm nervous I think Grant
Cardone is gonna show up at my door but
I got Thor's hammer you were ready for
him this thing weighs 10 tons okay let's
hit some lessons here number one I
always hated when my father in law said
this and he's gonna watch this video
he's going I told you Kevin I told you
16:42
aah I told you and you know what fine
you're right you're right
my father in law always said Kevin you
have two choices you could have the big
ship or the little ship which one do you
want you can't be in the middle cuz
nobody wants to be in the ocean
essentially so you either get a big ship
or you get a little ship and here's what
that means a little ship is like driving
a speedboat around you can maneuver
really fast if the market crashes and
you need to lower your expenses you
could do this and kill the engine and
you could just coast and ride it out for
17:14
a little bit you can move really quickly
maybe you've gone like your family
helping you out maybe you've got like
one employee holding the sail like
you're good you could batten down the
hatches survive you got all the support
you need you're good the big ship is
like the Costa Concordia when you've got
hundreds of employees and all of a
sudden you realize oh gosh we're gonna
crash and you go to turn the cruise ship
and it's like it's a cruise ship it
don't turn that
fast for us to be able to slow this
thing down we're just gonna crash and
17:46
sink and burn and this is where I've
actually had people in the construction
industry reach out to me and say Kevin
thank you for the videos that you make
talking about 10x saying and the danger
of 10 Xing and business because a lot of
people especially in construction they
tedx themselves into bankruptcy it's
much better to grow slowly and properly
so that way you can always batten down
the hatches if you need to and do also
what my father-in-law always says
preserve the base because you never know
18:18
when the big storm is coming but you
want to be able to batten down the
hatches really fast
you got a big cruise ship and you're
like oh that's bad down the hatches it's
like we're too big we're screwed it's
bad obviously I think this is also a
good opportunity to say make sure that
if you have debts in real estate you do
not over leverage I recommend pretty
strict guidelines in my investing course
in terms of what your long-term equity
goals should be
I generally frown upon refinancing so
fortunately I'm in a position where as a
18:49
family we're a little speedboat we're
flexible we're good we're gonna ride
this storm out along with everybody else
I'm gonna keep you updated on investment
decisions I'm making things I'm doing
things I'm not doing that might mean I'm
gonna post a little bit more often I
really hope that's not annoying I hope
you just choose to watch what's
interesting to you and hopefully all of
it is interesting to you so follow me on
Instagram thanks so much for being here
hope you learned something in this video
and until next time
you