Lincoln Lawyer offers a cogent explanation of what the class action lawsuits against Scientologist and apartment investor Grant Cardone mean.
Lincoln Lawyer made an earlier video in which he brilliantly explained Grant Cardone’s business model. Specifically, Grant Cardone purchases his properties using his own funds. He then sells these properties to Cardone Capital’s funds. This model allows Grant Cardone to reduce his personal financial investment risk by shifting the debt onto Cardone Capital’s funds and their investors.
Cardone charges the funds 6% on the money he used to buy the properties he then sold to the captive Cardone Capital funds which can only purchase properties from Grant Cardone. Grant also takes a 1% acquisition fee on the Cardone Capital side when one of its funds purchase an apartment building from Grant Cardone the individual. This undisclosed self-dealing is one reason why Cardone Capital is being sued and Grant Cardone is being sued as an individual.
Bottom line: Grant Cardone’s model is to minimize his financial risks; maximizes his income through fees; and doing these two things while remaining in complete control of Cardone Capital and its funds. Lincoln Lawyer’s video below provides clarity about Cardone’s business model:
Categories: The Scientology Money Project