Tom McKay is a self-made multi-millionaire. What Tom says in this video offers a great analysis of Grant Cardone and the Cardone investment model.
We like this video and Tom’s very pragmatic analysis of Grant Cardone. Tom raises all of the right questions.
Tom focuses in on Grant Cardone saying, “We distributed $2 million dollars to our investors last month; $800,000 of that went to me.” You heard that right. As Tom points out this a 40/60 split in which Cardone takes 40% of the monthly distributions.
Like McKay, we want to know more about how Cardone Capital’s disbursement works. Did Grant actually invest 40%? Grant says he has 3,100 investors and they received only $1.2 million of the $2 million. Let’s average the number: If we divide 3,100 investors by $1.2 million, then each investor received only $387 whereas Grant Cardone received $800,000. More details are needed. For example, has Grant Cardone suspended his distributions along with the rest of his investors?
Tom McKay also zeroes in on what we covered in our previous article: Grant Cardone says he can pay a dividend at 85% occupancy. How can Grant pay distributions with a 15% vacancy?
We agree with Tom McKay said at the end of the video: Keep your home now if you own one. Enjoy it. Don’t sell it as Grant Cardone so recklessly advises. The bottom line is that Grant Cardone’s huge debt load is driving his slash and burn approach during his time of financial crisis and, it seems to us, he is projecting his anxieties and fears onto everyone else.
Tom McKay’s book: Wake Up and Smell the Real Estate.
We like Tom’s no-nonsense and commonsense approach to business and his plain speaking.
One more great video from Tom McKay in which he compares real estate millionaires Grant Cardone and Ben Mallah. This video is funnier than hell. It’s also full of pain in a true existential disaster. Ben Mallah is brutally honest and yet he keeps his sense of humor. Ben’s not a BS artist like Cardone.
Categories: The Scientology Money Project