Grant Cardone admits to bankruptcy in this very short and bizarre video. Scientology Founder L. Ron Hubbard wrote about “the glee of insanity” and Cardone certainly fits the description in this video. Grant Cardone posted this video on Instagram and then took it down. Why does a CEO with 3200 investors to whom he has suspended distributions and bankers to whom he owes one billion in debt post this type of video online in which he jokes about going to prison? Has Grant Cardone, in fact, received a Wells Letter from the SEC?
We are verifying details of this video clip. Where and when was it made? It is very recent, perhaps today. Grant Cardone makes a comment about his his strange new haircut. In a video he just did with his wife Elena, Grant Cardone says he may have had the Coronavirus. He also cites stress as a factor for the strange appearance of his hair. In this video, Elena speaks of “being on the other side of this.” The Cardone’s seem to be cryptically alluding to trouble.
In our opinion, Grant Cardone has been erratic for at least 45 days and has exhibited bizarre mood swings ranging from mania to seriousness to freakishness. Some have even called us to say this video is Grant Cardone trolling in this video. If so, he has just destroyed his credibility at a profound level. Who would invest with such a reckless and irresponsible fool in the future? What banks would loan money to this deranged person? CEO’s do not behave in self-destructive ways that destroy their reputations and that of their organizations and companies.
The reaction to Cardone’s announcement of bankruptcy is beginning to be posted online and we are watching it.
Our recent article discussed Grant Cardone’s strange and erratic “Quarantined in Clearwater” videos. We reported on Grant Cardone’s statement in these videos that Cardone Capital is based upon 10 year loans, five of which are interest only. We showed how this model becomes untenable at month 61 when his claimed one billion in debt balloons from $3.125 million per month to $18.3 per month for principal and interest. Cardone Capital becomes insolvent at this point based on owning only 7722 units. We estimated Cardone Capital is at least $11 million short of pay his principal and interest.
An excerpt from our previous article:
2. Grant Cardone’s published loan figures show an average 3.75% interest rate. Here is how a one billion dollar ten-year loan is repaid where the first five years are interest only:
A. Loan amount: $1,000,000,000 @ 3.75%.
B. Annual interest: $37,500,000.
C. Annual interest divided by twelve months: $3,125,000 per month in “interest only” payments.
D. At the end of 60 months (five years) of interest only payments, Cardone’s one billion dollars in loans balloon massively. The monthly payment skyrockets from:
* $3.125 million interest only, to:
* $18.3 million per month in principal and interest.
Below is a ten-year loan schedule for one billion dollars @ 3.75% with the first five being interest. We used the Calculate Stuff website to create the schedule. The loan assumes January 2020 – December 2030:
Categories: The Scientology Money Project