by Grant Cardone June 13, 2018 16 Comments

My whole life I have been pulling for the little guy

Let's face it, I am the little guy. My entire life I have felt like the deck was stacked against me. I grew up in my most challenging years without a father, raised by a single mother. She did her best to manage a household with just a little bit of money and three wild teenage boys.

High school, college, and young adulthood were all very difficult for me. Just getting along with others was sometimes a major challenge.  When I got into sales and then business, my chip on the shoulder was obvious. but this made the idea of "the deck being stacked against me" some of my own making.

However, when I got involved in real estate investing in my 30's, I saw actual signs of how the deck IS really stacked against the little guy. I started looking into it and what I discovered blew my mind. 

 

 

 

The little guy is encouraged to buy a single family home with great mortgage offerings, even a duplex or maybe a four-plex—but the moment he or she tries to get bigger than that the banks tighten up. This prevents the struggling household or person trying to create wealth to ever invest in the best real estate that ensures passive income, appreciation, and the great tax advantages that the wealthiest all benefit from.   

I learned this first hand when I started trying to buy bigger deals where the real money is made. 

The great deals were either never shown to me or never awarded to me. 

Instead, the big players would get the trophy properties and I was allowed to buy the leftovers. If you think I am exaggerating, trust me I am not.

So, the little guy is left to buy a duplex or eight-plex, and they are forced then to manage the property themselves because it doesn’t produce enough income to afford a manager.  By the way, this is the first real estate to get foreclosed on when the economy gets tough. 

 

For 30 years I have been buying real estate. Today, I have acquired over one billion dollars of properties. When I started trying to buy the great properties I had to fight the big institutions and banks every time. 

I started to look into this and have discovered why this is and it wasn’t what I thought. Why do the little guys get the junk real estate and the wealthiest organizations worth hundreds of billions buy the trophy properties and hold them for decades?  

Vanguard, Blackstone, and Goldman (Wall Street) are getting all the good stuff while the rest of America is encouraged to buy a home or invest in a REIT.  Or maybe you get an offering from a local real estate syndicator in your market offering a 30-unit apartment deal that needs to be rehabbed or one of the popular crowdsourcing sites promising you quarterly income to invest in a marina or a single family home in Covina, California.

To find out what was really going on I hired an attorney and invested money to create a fund so my friends, followers, and employees could invest with me in trophy real estate deals that we would buy before the big boys could get them and then later we would sell them to the behemoths. 

The first thing the lawyer did was warn me, “you don’t want to do that for a number of reasons...

  • #1 It is very, very expensive
  • #2 It takes a long time
  • #3 Non-accredited investors are only trouble   

My question was this:

Why are they making it so hard for me to simply let the people who know me—family, friends, and employees—to invest with me in deals I am buying with my own money anyway?  

The lawyer went on to explain that I could do that but only for "accredited investors”, those who earn $200,000 annually or have a net worth of $1,000,000, but not for those who earn less than $200k. The latter group (non-accredited) was the bulk of who I wanted to help. My mother, sister, mother-in-law, retired uncle, long-term employees, executives and even the lawyer working on the deal would not be able to invest in deals with me!  

Why not," I asked.

The attorney went on to give me a number of dumb answers like...

  • “The wealthy are better educated”
  • “The government wants to protect the little guy"  

Financial intelligence has nothing to do with earning power, think Mike Tyson, Nick Cage, Mark Twain, or bankrupt businessmen Abe Lincoln, HJ Heinz, Henry Ford, Larry King, Dave Ramsey. What about the number of financial institutions who failed with their floors of Harvard graduates like World Comm, Tyco, Lehman, Indy Mac, and Washington Mutual?  

I assure you the government not only doesn’t want to protect the little guy, it can’t even if they wanted to.

The government doesn’t make the rules, people do.  So I kept looking and asking, “who doesn’t want the little guy to invest with me, when I know these deals are good for them?”  

Follow the money, as they say, and you will find the answer. 

So, I asked myself, “why are they making it so easy for the wealthy people to invest with me and so hard for those who don’t yet have wealth and need it the most?"

Here is what I found out.  Less than 3% of the population is an accredited investor.  The cost to set up a fund for my wealthy buddies is almost free. The cost to set up a fund for everyone else can cost from $500k to a million dollars.  

I called a friend of mine who used to work on Wall Street and asked him, “Why does Wall Street make it so hard for the little guy to invest with me?”  He said, “they don’t want to compete with you for the dollars.”  

Wall Street wants to stay as the middleman between the little guy and the best deals.

This is how they create their derivatives, offerings, REITs, ETF's and all their other casino games. The laws are set up to protect Wall Street, and it's an attempt to control the money of 97% of all investors. As they say, “he who controls the money makes the rules.”  

Wall Street wants the little guy to themselves so they try to make it cost prohibitive for others to create investment opportunities for the little guy.

The rich get richer because the wealthy have access to the best deals. Keep in mind, to be a customer of Goldman Sachs you need a minimum of $10,000,000 in cash but their average client has $50,000,000.  

But I am going to change all that. 

I am investing my time and money to create funds for the little guy to partner with me on trophy real estate. We are cutting out Wall Street—the middleman—and giving my friends, family, and followers access to deals that are typically reserved for the wealthiest organizations on the planet.  

I have created a fund just for NON-ACCREDITED INVESTORS against the advice of my lawyer. I thought about calling it the “Little Guy Fund” but instead we decided to name it Cardone Equity Fund V, because it’s our fifth offering. Our first offerings were only available to my wealthy friends and were oversubscribed in record time.

 

To be involved all you have to do is register at CardoneCapital.com. We are proposing a $10,000 minimum to the SEC and are waiting for their approval. So if you love real estate, have at least $10k, want access to what I consider trophy properties, are able to wait patiently the way I do, and want to partner with me on deals, make sure you register HERE.

We will allow customers and previous investors in first and then will take you as you register. I expect there to be tremendous interest in this offering amongst the 11,000,000 who follow me online and we will be able to accommodate about 1,500 of you. 

Help me change the game and give you and your family access to deals previously reserved just for the BIG Guys

Why in the world would a person making $60,000 a year NOT be able to invest with me and someone making $200,000 can?

The person making $60k needs the investment vehicle even more than the rich guy!

Comment below what you think about the Wall Street scam they've set up where only "accredited investors" can easily invest. 

Be great,

GC

Grant Cardone is a New York Times bestselling author, the #1 sales trainer in the world, and an internationally renowned speaker on leadership, real estate investing, entrepreneurship, social media, and finance. He has been investing in Multi-Family Real Estate since the mid-1990’s. Cardone’s combined 30+ transactions have been across five states including southern California, Arizona, Texas, Tennessee, North Carolina, and Florida. Cardone buys below replacement properties that offer opportunities to increase rents, higher occupations, reducing concessions and lower expenses. In addition to the above criteria, all new purchases must provide positive cash flow from the closing date. His very conservative investing approach is based on a purchase price based on trailing 12 income calculations. He personally does his own due diligence and will only enter negotiations on properties he is prepared to close. This has created a great reputation with sellers for his ability to close the deal. Grant is looking to expand his real estate holdings with Cardone Capital, which currently has over $800,000,000 AUM. 

Grant Cardone
Grant Cardone


16 Responses

CJ Camarda
CJ Camarda

June 18, 2018

Absolutely the truth as I run equity and options portfolios for mid 6 figure and 7 figure clients and advise not using high cost mutual funds that underperformed and overcharge ..as give clients direct access to equities with professional trading /management sculpting out middle man fees.. REITS are highly correlated with equity markets thus do not give clients true risk delineation of real assets vs liquid market assets yet as you intimate real estate is an expensive venture and riddled with many cost’s with less rewards for smaller properties thus diminishing ROI for regular small time investor …..Accredited investor stipulations were put in place for hedge funds/PrivEqty etc due to lock up periods of 7-12 years and higher risk due to less disclosures in niche …same for you RE investment’s as with potential less disclosure /diversification than ex Avalon Bay. There is a moat for net worth participation.

Phillip Turner
Phillip Turner

June 18, 2018

This just jumped to the top of my goal list. Im not there yet, but Im getting close. I have an obligation to my family to create something that I never had. To leave a mark most would say is unable to reach. I am excited about the future and look forward to investing and growing even further with you. Thank you so much for what you do.
Sincerely,

The little guy!

Amanda
Amanda

June 18, 2018

Thank you Grant for all you do to help the little guys become bigger guys!!!! You and Elena are awesome!

Andrew Adorno
Andrew Adorno

June 18, 2018

I think this power move will definitely put you on the map Grant. Creating this opportunity puts a bullseye om your back that not even your competitors will be able to refuse. Wall Street will never do what you do with my money. Thanks for putting power back into the people because to reach a Billion you gotta helps a Billion!

Cindy McDonald
Cindy McDonald

June 18, 2018

Your analogy of the little guy (middle class) being buried alive is absolutely spot on! I too was a single mother of 2 working 2 jobs for most of my adult life. Did I want to work 2 jobs and take away from my children? No! This is what had to be done to support my children, get them through school, keep a roof over our heads and food on the table.
Anytime I would propose a real estate venture with a lending institution, friend, or family it was always the same response…not at this time you need more money. you are a single parent. you need to get a higher degree to make more money first.
So after my children were raised and set off I went back to school (here come the student loans) and became a Registered Nurse with a Bachelor Degree. Now I am making more money have a degree and the children are raised, put a little money in a “401K”. Perfect! Now when I approach the lending institutions I have too much student debt to qualify and still don’t make enough money…maybe I should get one of their credit cards? haha
I have felt like a hamster on a wheel…working for the man…running into brick walls.. I know the middle class is a dying out..only the rich and poor will be left. I don’t want to be one of the poor. I want to be rich before I die!

Thank you for reaching out and making it possible for the little guy to have a piece of the pie 😊

Forever grateful!
Cindy

scott walker
scott walker

June 18, 2018

Im so grateful for your determination to uncover the truth and BS from these rip off institutions!! fkn awesome GC.

Gui Rivaud
Gui Rivaud

June 18, 2018

What an awesome post uncle G .
Such a good post I’ll save that one for future reference.
Have a great day !
Much energy !
Gui

eric
eric

June 18, 2018

Hello,
I have a question : is this new fund open to foreigners (i’m french)?
Thank you

Dion Vantyler
Dion Vantyler

June 18, 2018

Uncle Grant, you are the second great person I’ve heard this from, the so called “protecting the little guys” gambits. First Robert Kiyosaki now you. This is a real thing happening and I’m so glad you are doing this to propel a new paradigm.

Jeroen Kienhuis
Jeroen Kienhuis

June 18, 2018

I trust you. I will invest in Cardone Capital if i reach my 10k.

Julie Jenkins
Julie Jenkins

June 18, 2018

Can Canadians join you?

Kevin Talley
Kevin Talley

June 18, 2018

“It’s not what you don’t know in this life that will hurt you – it’s what you THINK you know that just ain’t true.” I’m in!

Melissa Deserio
Melissa Deserio

June 18, 2018

I’ve felt like the less than for years. Always being yelled out and pushed around. Finally breaking through the bondage into freedom. Hallelujah

Sandra Massey
Sandra Massey

June 18, 2018

Thank You for helping people with less money. Actually in the past I made enough money in Real Estate to pay off my home with a pool. Then my husband of 38 years wanted a divorce, so he could spend all of his time with the Secretary at work. I had a brain tumor I was not aware of and I made a very bad decision. I married for the second time and let him convince me to sell my home. He stole every penny I had and locked me out of his home. All I had was a 27 year old pickup. I paid for a home once and with God’s help, I will do it again.

David
David

June 18, 2018

Thank you Uncle G for helping out the little guys!! Looking forward to the opportunities you bring to us!!

Anthony T Lofrumento
Anthony T Lofrumento

June 18, 2018

SO Smart…such a GREAT IDEA…cant wait!

https://justfollowtheplan.lpages.co/477-a-day/

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