Grant Cardone derives much of his income from selling sales training and real estate seminars, often expensive programs with aggressive marketing. Attendees frequently upsell to more costly packages that promise exclusive content or one-on-one mentorship; many people accuse Grant Cardone of operating scams because of these tactics.
Cardone’s business has generated controversy due to his promotion of real estate investment funds. He urges followers of his seminars and social media pages to invest directly with Cardone Capital instead of in traditional retirement savings vehicles such as IRAs or 401Ks, citing impressive returns as justification. Unfortunately, however, a class action lawsuit alleges that Cardone Capital may actually be operating as a Ponzi scheme.
The fund invests in apartment complexes throughout the Sun Belt region, where its focus has been to rebrand properties as “10X Inegra Shores” and “10X Del Ray”. These properties often reside in secondary cities with significant property value increases that also experience higher eviction and foreclosure rates – and due to surging interest rates since 2021 these rental properties have become far less appealing and Cardone has faced numerous lawsuits related to them.
His sales training is often vague and overly optimistic, extolling the benefits of leveraged debt investing while failing to mention any associated risks. Furthermore, his promises about earnings potential through this form of investing tend to overstate themselves without providing realistic timelines or guarantee of success.
One of the hallmarks of Cardone’s seminars is their use of prominent business and motivational speakers who appear to endorse his methods, when in reality many are paid simply to appear, creating the appearance that they do support what he teaches and believes. Although this tactic helps attract attendees and lend credibility to his seminars, it can sometimes mislead attendees because their words do not always accurately represent what their true opinions or beliefs might be.
Cardone’s use of false endorsements to lend his seminars and products the appearance of authority is another major concern. He frequently invites influential business leaders and influencers to his seminars, encouraging attendees to purchase his products as a result. He advertises his sales training by promising that it can help clients increase revenues and become successful entrepreneurs, yet often fails to back these claims with concrete evidence or research. Furthermore, instructor quality may differ significantly. Example instructors include those without actual field experience while others claim they are experts. Despite this, Cardone still attracts an enthusiastic following who are willing to pay thousands for his seminars; unfortunately many attendees find them repetitive and basic; therefore deeming the price tag far outweighed by any benefits gained from attending them.