We discuss Grant Cardone’s newest scheme: A private equity fund in that combines multifamily real estate and Bitcoin.

The property to be purchased is called 10X Space Coast Town Center. This property is a 300 unit Class A apartment complex in Melbourne, Florida. A press release states that Cardone will purchase the property for $72.5 million and spend an additional $15 million on Bitcoin for a total of $87.5 million. Shares will be sold with a minimum investment of $250,000.

Cardone is promoting this as amazing. And yet if it were amazing, he would put his own money into it and take all the profits for himself. Instead, he follows his typical self-dealing modus operandi in which he sells his property to his captive buyer Cardone Capital which purchases his properties. Cardone is repaid his upfront money with Cardone Capital investor money.

This scheme allows Cardone to shifts all of the financial risks onto his investors while recouping his upfront money. He repeats this cycle with each new property. It gets even better when a property sells after 7-10 years as Cardone typically receives 35% of the profits according to his deal as the sole owner and manager of Cardone Capital.

While Cardone is doing this, he promotes himself out to be the best friend of the “little guy” whom he allows into the billionaire deals. Of course, Cardone locks up the little guy’s money for 7-10 years and pays them unremarkable 4-5% distributions equal to a 6-12 month Certificate of Deposit anyone can get at a bank.

Cardone Capital’s website posts this confusing projection about the Space Coast Bitcoin Fund. This graphic assumes both real estate and Bitcoin will astronomically increase in value:

Show Notes:

The question was raised by a listener: Is Cardone’s base of 10X bros financially tapped out? Is this why Cardone is making a fusion play of apartments and Bitcoin to Crypto investors?

The recent SEC filings do show a slowing of investor cash into Cardone Capital. As of June, 2024, Grant Cardone’s Equity Fund 24 had fallen 65% short of its $150 million fundraise target:

As of September, 2024, Cardone’s Equity Fund 25 had fallen 81% short of its $150 million fundraise target:

Grant Cardone’s REIT incurred losses in 2022 and 2023: 

Grant Cardone cautions that 10X Space Coast Town Center may not happen; and it most certainly will not if he cannot raise the $87.5 million.

While researching this video and article, we found a photo Grant Cardone posted on December 10, 2024 from Nassau. The nominal Scientologist billionaire Bob Duggan is seen in the photo to the right. The occasion was the $130,000 per couple five-day Grant Cardone Foundation Cruise: