But with a mindset shift, it’s possible to believe that one does not need money to make money. These perspectives are shaped by our experiences, the people we choose to hang out with, and the people we choose as our mentors. Many of us have different perspectives when it comes to money.
Those were paid with investor monies, the lawsuit alleges.If I said that you don’t need money to make money, would you believe it? In some cases, Cardone provided mortgages to the funds for the purchases, charging a 6 percent interest rate. “In fact, this statement was materially false and misleading because there was no reasonable basis for this representation and investors’ distributions have, in fact, been much lower than these amounts,” the lawsuit alleges.Ĭardone also acquired some of the properties with his own money and then subsequently flipped the real estate to the Cardone Capital funds. 17, 2019 in which Cardone claimed a $220,000 investment would result in a $660,000 position in one of the funds and would allow investors to earn about $12,000 to $15,000 a year in distributions. For instance, the lawsuit cites an Instagram video post on Sept. The content is accompanied by captions proclaiming others can be just as rich as him by investing with Cardone Capital. The lawsuit claims Cardone Capital ignored the warnings and continued to peddle misleading information to investors.Ĭardone uses his Instagram account to post photos and videos of himself living a luxurious, wealthy lifestyle, as well as pitching his crowdfunding business. The SEC lawyer wrote that Cardone Capital did not appear to have a basis for promising such a return, the complaint alleges. The lawsuit alleges that a Securities and Exchange Commission enforcement lawyer sent a letter to Cardone Capital on July 30, 2018, warning the firm to remove claims in one of its public offerings that investors would receive a monthly distribution that represented an approximately 15 percent annual return on investment. “We have raised over $425 million and have one investor who presented himself to be a non-accredited investor, who invested the minimum five thousand dollars into two different funds and is now attempting to assert a class action lawsuit against us,” according to the statement. “He declined so clearly the investor and his counsel have a different agenda,” the statement reads, adding that Cardone created Cardone Capital to “level the playing field.” In an emailed statement, Cardone Capital said it attempted to return Pino his $10,000 investment upon learning of his lawsuit. “You build a brand and you get attention…How do you sell anything? You get attention.” “Money follows glitter and noise and lights,” Cardone said. At the time, he boasted his firm bought more than $400 million worth of real estate in Florida, mostly apartment buildings between Miami and Fort Lauderdale. Cardone is also set to star in the upcoming season of Discovery’s reality television show, “Undercover Billionaire.”ĭuring his keynote appearance at The Real Deal’s annual Miami Showcase & Forum last year, Cardone said celebrity appeal was a key ingredient to his success. Cardone, whose Instagram account boasts more than 3 million followers, is a real estate entrepreneur who has leveraged his large social media presence into recruiting small-time investors hungry to put their money into commercial real estate deals, mostly involving multifamily properties.
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