How to Build a Real Estate Fund Like Grant Cardone Capital #GrantCardone

How to Build a Real Estate Fund Like Grant Cardone Capital #GrantCardone?(crowdfunded real estate)

(Audio transcript of youtube video - be patient with the transcription)

Grants Cardone well-renowned investor's strategies on how he finds invests in and uses the equity capital of other people, especially small check investors and unaccredited investors, to buy his property for him. And so we've looked at the three key strategies that he used and why he's using these strategies to be able to acquire real estate at scale at Grants Cardone and Cardone Capital. And so in this video and especially at the end, you know, we're going to just walk through the key strategies that he uses and we're going to see if you can emulate these strategies for yourself, if it makes sense for you or if it doesn't. So you may want to stick to the end to see how these strategies you can apply them. If you're looking to raise capital for your real estate private equity fund. So Grants Cardone, if you don't know him, was the star of undercover billionaire and approaches a net worth of around 1 billion. So the first thing that he uses is something called the Regulation A exemption. So Grants Cardone, the way that he raises capital is using the regulation a exemption basically in the United States to raise money from investors. You either need to register with the SCC or you need to use an exemption that exempts you from registration requirements. That means that you don't have to register with the SCC. And to do that, there are different exemptions that people use. There is the regulation, the exemptions, which is another world that they'll get into. (crowdfunded real estate)

And then there are several other exemptions. So he uses the regulation A exemptions. These are exemptions that allow you to sell to unaccredited investors, in other words, accredited investors that don't have over $200,000 in annual recurring income or they don't have over $1 million in assets. And so you can actually sell to these investors without registering with the SAC using that exemption. And the exemption I use is called Regulation A. And so all regulation means there are two types of Regulation A exemption. So you have the regulation A tier one and regulation tier two. So Tier one allows you to raise up to 20 million and and then tier two allows you to only raise $75 million within the first year or 12 months of the offering. So basically you have to give quarterly reports and audited financial statements of the deals that investors are investing in. And that's really expensive. And to people who aren't familiar with that. So it can take a lot of work to do that. It's very similar to a public offering because you're selling things to unaccredited investors and you have to disclose a lot of information to make sure that the investor is suitable and they're okay with understanding what the investment is. So that's number one, and that's how he structures his investments. Number two, So why does Grants Cardone always talk about how much AUM assets under management he has? Basically the way many people buy real estate who don't own them. (crowdfunded real estate)

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