Grant Cardone calls himself a real estate mogul. I call him a professional debt salesman with a motivational speaking side hustle. His entire business model hinges on one dangerous message: use massive leverage to get rich.
Let me walk you through why following his advice could be the fastest way to wreck your finances.
Leverage, Baby! (Until It Implodes)
Cardone loves to preach that “cash is trash” and that the only way to build wealth is by taking on enormous debt to buy large multifamily properties. That sounds cool if you’re a hedge fund. Less cool if you’re a plumber from Phoenix trying to “get into real estate” with your kid’s college fund.
Using leverage amplifies your gains, but it also amplifies your losses. When the market turns—and it will—you’re on the hook. Cardone never talks about liquidity risks, debt covenants, or interest rate exposure. Probably because none of those words fit on a motivational hoodie.
How Cardone Capital Really Works
Let’s break it down: Grant finds a property and puts it under contract in his own name. Then he sells it to his fund at a markup. He makes money as the wholesaler, then again through asset management fees, and again by charging interest when he acts as the lender.
You? You get an investment with limited upside, high fees, no control, and no liquidity. It’s like crowdfunding his empire with your retirement.
He even had a 2020 lawsuit over allegedly misleading investors about 15% returns. While it was dismissed, the SEC also issued warnings about his marketing tactics.
Grant’s real estate business mirrors his personal brand: hype-driven, opaque, and all about extracting money from believers. He fired 80% of his staff by email during COVID and bragged that courts were closed, so they couldn’t sue. Real visionary stuff.
What You Should Do Instead
If you actually want to build wealth through real estate, start with Don Peebles. His book The Peebles Path to Real Estate Wealth breaks down real strategies without hype or high-pressure BS. He didn’t start by raising money from followers on Instagram. He started small, learned the game, and played it smart.
Other options? REITs. House hacking. Small multifamily with conservative financing. You don’t need to buy 32-unit buildings with 80% debt. That’s not a strategy—that’s a gamble.
Final Word
If Grant Cardone’s advice sounds like a fantasy, it’s because it is. The only guaranteed winner in his deals is him. Don’t let the jets, watches, and Insta-fame fool you.
Real estate can build wealth. But only if you treat it like a business, not a motivational weekend retreat. Cardone sells sizzle, not steak. If you follow him too far, you might find out the hard way that hype doesn’t cover your mortgage.
Stay skeptical. Stay smart. And read the fine print—especially when there’s $40,000 on the line.
