Motivational speaker Grant Cardone raises $50M for multifamily fund via crowdfunding

Two funds have invested in over 2K units valued at a combined $474M

Grant Cardone and 10X Living at Sawgrass
Grant Cardone and 10X Living at Sawgrass

Motivational speaker and real estate investor Grant Cardone encourages his followers to “10X” their businesses, incomes and lives. Now, time will tell if the average investor in his real estate funds will 10X his or her investment.

Cardone Capital’s $50 million Cardone Equity Fund V is oversubscribed and closed as of Friday, said Susan Schieman, chief financial officer of Cardone Capital. The fund launched in January and was aimed at non-accredited investors — defined as those who have a net worth of under $1 million. The minimum investment was $5,000, Brian H. Robb, chief marketing officer, said.

Cardone will be a panelist at The Real Deal‘s 6th annual Miami Real Estate Showcase & Forum on Oct. 17 at Mana Wynwood.

Robb said the firm is reaching out to potential investors via email and social media, including through a large Instagram following and on LinkedIn. The goal has been to attract people who wouldn’t normally invest in traditional real estate funds.

At the same time, Cardone Capital has been raising money from accredited investors for Cardone Equity Fund IV. Both funds have parallel investments in five multifamily properties, most of which are in South Florida.

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Fund IV, a $125 million fund, may close once it reaches about $105 million, which could happen next month, Schieman said.

“Every day we’re bringing in two to three hundred leads,” for both funds, Robb said. “From there we’re probably raising from $750,000 to $1.3 million per day.”

Cardone will purchase the properties himself and then bring in the funds. He’s reportedly known for not accepting everyone’s money, and insists on investors who “love the idea of investing in real estate” and have a good attitude, according to the release. Distributions are made monthly.

Grant Cardone and the two funds have invested in the following properties:

  • 10X Living Delray, a 346-unit complex at 14050 Pacific Point Place in Delray Beach.
  • Stella at Riverstone, a 351-unit apartment community at 4711 LJ Parkway in Sugar Land, Texas, outside of Houston.
  • 10X Living at Sawgrass, a 501-unit complex at 2903 Northwest 130th Avenue, just north of the Sawgrass Mills shopping center in Sunrise, Florida.
  • 10X Living at Naples, a 456-unit community.
  • 10X Living at Breakfast Point, a 360-unit complex in Panama City Beach.

Cardone, founder and CEO of Cardone Enterprises and a best-selling author, operates a $1.2 billion property portfolio.