Karma’s a bitch: Many people who have lost their jobs in layoffs won’t be able to pay Cardone the rent on his apartments. In this economy, it’s going to be harder than ever to evict tenants. In some jurisdictions, evictions have been made illegal. Other people may stay in Cardone’s apartments as long as they can, bail out on back rent owed, and then move in with their families or find cheaper rent elsewhere. Cardone arrogantly bragged in a video the other day that the courts aren’t open and so no one is going to sue anyone. He seemed to be alluding to the fact that his laid off employees can’t sue him. According to reports on social media, these employees got a letter from Grant’s attorney along with their walking papers. The letter, and we are working to obtain a copy, apparently stated that these employees had no legal rights to sue Cardone Capital. Grant’s view on the courts may come back to haunt him when he tries to sue current or former tenants for back rent owed and gets court dates three or four years out.
Cardone is basically screwed with his $1.7 billion AUM at what? 85% leverage? With such enormous debt to service in a pandemic, we’ll watch to see how Grant Cardone fares — especially when his investors start calling to get their illiquid cash out of Cardone Capital. Cardone has said his deals are based upon a worst case 15% vacancy rate. Let’s see how the number works in this crisis when the 85% occupancy stays high but 50% of the people aren’t paying rent. As reported by Bloomberg, private equity firms began 2020 with $1.5 trillion in unspent cash looking for deals. These firms watch highly-leveraged firms like Cardone Capital and can smell fear and weakness light years away.
Jet fuel prices have crashed in the past month. We wonder if Grant Cardone’s cash flow follows the jet fuel curve? In any event, given the fact that all large gatherings have been outlawed globally and entire countries shut down, it looks like Cardone won’t be doing much traveling anywhere on his jet to host his 10X rallies.
Cardone’s Scientology Humanitarian response to the pandemic is to offer people 30 days free at Cardone University after which they must pay the $97 per month fee. We saw Scientologist-owned ABC Mouse using a similar strategy last week.
The ultimate #NotACardoneFanBoy Meet Kevin just did this video on Grant Cardone. 203,000+ views and climbing. Kevin offers great insights about the inherent flaws in Cardone’s business model.
Here is Grant Cardone’s video for his side of the story.
Our take: While being the boss can be brutal, being laid off is much worse. Why didn’t Cardone pay his laid off employees three months salary plus pay their COBRA healthcare benefits for six months? That would be much better than acting generous and saying that he paid the people he laid off through the end of the month. That’s only ten days of pay from March 20 – March 31. People know how to count. Cardone also shouldn’t have said that he will be okay and doesn’t have to worry about his bills. Over all, Scientologist or not, we think this was a complete shit PR response on Cardone’s part.
UPDATE: This is Grant Cardone’s view of employees from last month:
2. Management is unwilling to push employees to greatness
Leadership is too soft on their people. They believe that being nice is somehow going to make great people and a great company. Simply being good to your people does not make them happy. Happy employees are winning at work and producing, because production makes people feel good. And as for employees — if you don’t like your $12 an hour job and you complain about it, you’ll never move into a $20 an hour job!
Categories: The Scientology Money Project