Grant Cardone, a self-made millionaire, entrepreneur and real estate investor with an enormous online following has achieved immense success. He has authored multiple best-selling books as well as business training programs that attract high-profile attendees; these conferences host annual sales scaling strategies seminars as well as real estate investing programs and courses on various subjects like entrepreneurship, leadership and mindset.
Cardone has amassed an estimated net worth of over $600 million according to NASDAQ, operating several businesses including real estate investment firms and management companies. One such business, Cardone Capital, allows non-accredited investors to participate in institutional-grade real estate deals via syndication. They have raised over $1.1 billion from over 13,000 investors through syndication – ultimately investing it in over 12,000 multifamily units valued at more than $4.3 billion – earning them high marks on Trustpilot with 4.8 star customer service scores.
Cardone has amassed a sizable online following, yet many of his followers have accused him of mislead them about real estate investing methods and promises of extraordinary financial success. High-cost seminars, slick marketing and cult-like behavior have caused his business to gain an unfavorable reputation; in addition, overhyped promises coupled with high pressure sales tactics has resulted in numerous lawsuits being brought against him.
A recent class-action lawsuit filed against Cardone draws attention to the dangers associated with investing in real estate funds promoted by prominent influencers, as evidenced by its lawsuit being filed in Los Angeles Superior Court. Although its outcome remains undetermined, its filing highlights an increasingly dangerous trend: using social media to market pooled investments through influencer marketing. Robert Freund, an expert consumer attorney who specializes in class actions and digital marketing says influencers often promote such funds in an attempt to capture investment dollars.
Cardone asserts that his business is worth millions and has amassed a following through high-energy seminars and expensive training programs, however the class action lawsuit alleges otherwise and alleges he made overly optimistic promises about potential financial returns while failing to disclose financial liabilities incurred as part of doing business with him and misrepresented both himself and his partners.
Suits alleging Cardone of misrepresenting his financial situation by posting pictures of himself in expensive cars and suits is common practice among investors; however, the suit alleges Cardone is engaging in fraud by mislead investors such as Pino about his business model.
Grant Cardone remains an established and well-recognized figure in the business world despite accusations. A prolific speaker, he has sold millions of his best-selling books. Additionally, he is a wealthy real estate investor who has been featured on many television programs and magazines; investors should conduct due diligence before investing in one of his mentoring programs.