Grant Cardone 10x Real Estate asserts that investing in real estate can lead to financial freedom and wealth for individuals. His philosophy hinges on his belief that real estate is one of the best investments, and individuals can achieve success by adopting a long-term approach when developing their strategy. Furthermore, Cardone stresses the significance of taking massive action; simply striving for average results won’t lead to extraordinary achievements either in real estate investing or any other venture.

Cardone’s business model centers around his popular seminars, where he invites attendees to invest in his real estate firm Cardone Capital through high-interest loans and various products such as property management services. Cardone promotes these opportunities via seminars and social media channels by promising that attendees can become wealthy by following his sales techniques and investing in his real estate investments.

But Cardone Capital has come under scrutiny for alleged acts of fraud and regulatory violations. A class action lawsuit filed by investors alleges that Cardone Capital has not provided accurate financial reports and returns from investments, charged excessive fees and overinflated appraisals; and charged excessive appraisal fees. Such allegations raise doubts as to their ability to manage large real estate projects while attracting high net-worth investors.

Cardone Capital’s lawsuit highlights the risks of investing in pooled investment vehicles such as private equity funds or real estate syndications. While these vehicles provide access to investments that would otherwise be out of reach for ordinary people, they typically carry high fees and may fail to deliver on promised returns. Furthermore, investors who participate may face other issues related to financial volatility and property management concerns.

Former Cardone Capital executive Joseph Dittelman reported to HuffPost that Cardone had failed to disclose significant accounting errors worth millions, as well as hiring temporary staff to shred documents related to its properties. HuffPost reviewed material supporting these allegations – such as tax records and airplane logs. Unfortunately, Dittelman did not respond to multiple requests for comment from us.

Cardone Capital represents a growing trend of financial influencers soliciting investments into pooled funds via social media influencers like Grant Cardone. Such influencers use their extensive reach on social media to cast hyperaggressive rentierism as common sense despite rising interest rates which make financing new mortgages and paying existing ones increasingly challenging for individuals, leading them to opt for longer stays in rental housing and increase homelessness rates across the country.