Grant Cardone has been investing in Multi-Family Real Estate since the mid 1990s.
Cardone’s combined 30+ transactions have been across five states including San Diego and Los Angeles, California; Tuscon, Arizona; Austin, Texas; Charlotte, North Carolina; and Florida.
Just last year, Cardone made the single largest private acquisition of 5 properties, Harbour Portfolio – just north of Miami, where he competed with 38 other groups to make the acquisition.
The $59m dollar purchase of 1016 units produces a positive cash flow in excess of 8% a year using Fannie Mae debt while Cardone’s third party management team takes advantage of no new product development and trending rising rents.
By focusing on value add opportunities of B and C properties in tertiary and secondary markets overlooked by REITs and provide some barriers or limitations to new product coming to market.
Cardone focuses on buying below replacement properties that offer opportunities to increased rents, higher occupations, reducing concessions and lower expenses.
In addition to the above criteria all new purchases must provide positive cash flow from closing date. His very conservative investing approach is based on a purchase prices based on trailing 12 income calculations.
He personally does his own due diligence and will only enter negotiations on properties he is prepared to close. This has created a great reputation with sellers for his ability to close the deal.
Cardone has bought and sold product through all sorts of economies and in different markets.
Cardone’s has limited to his purchases to the use of his own personal equity sprinked with very small amounts of family funds. He has used regional banks and GSA debt for financing.
With over 250,000,000 in deals done over 20 years Cardone’s goal is to grow his real estate holdings to 10,000 plus units.
His goal is to raise $325,000,000 equity combined with $25,000,000 (7.7%) of his own equity and use GSA or CBMS debt to finance remainder.
He recently moved all of his operations to Miami Beach, Florida and is focusing on purchases in the Florida, North Carolina and Alabama markets.
Cardone runs a very tight operation with third party relationships that are tapped into as needed.
To enhance investor’s returns by discovering unique, value add, real estate investment properties that will insure capital preservation and exceptional returns.
In the News
Average hold time has averaged 31 months.
Current portfolio valued at $135 million.
Average ROI has exceeded 200% (22 consecutive transactions).
The group has been acting as independent real estate investors through the use of their own money and a small group of family and friends.
Primary investment focus has been value add income producing assets which offer immediate upside and throw off positive cash flow.
The group has been involved in over $200,000,000 of transactions including multi-family, residential, shopping centers and development deals.
Through the use of conservative and realistic acquisition models and by strict discipline and high ethics the group has been able to preserve capital and continue to increase investors returns in all types of economic environments.
Key Business Rules
- We never buy “the appreciation” story.
- Property must have some significant and obvious value add component.
- Willingness to move into or out of a market when economic conditions ship.
- Once we have hit or exceeded our Value Ad Target we get out of the market.
- We never over leverage a good piece of real estate.
- We only buy markets where there exist barriers to entry.
- Location is a key criteria.
- The group has an impeccable reputation for closing deals and greatly leverage that reputation to insure the best terms and the lowest price.
- We never assume on our purchase proforma that we can operate property any better than existing management.
|# Units||Acq Price||Sale Price||Years Held|
|Pueblos Villas||Tuscon, AZ||161||$4,665,000||$6,800,000||3|
|Sunset View||Oceanside, CA||112||$20,000,000||$21,750,000||4.5|
|Vista Montana||Tuscon, AZ||112||$2,815,000||$4,375,000||3.17|
|Westgate Park||Tuscon, AZ||239||$7,450,000||$10,850,000||3|
|Wilmont Vista||Tuscon, AZ||197||$5,350,000||$8,600,000||3.33|
|Barcelona||San Diego, CA||90||$4,675,000||$6,375,000||2.58|
|Camelot||San Diego, CA||74||$3,500,000||$8,600,000||3.25|
|Canyon Pointe||Tuscon, AZ||248||$7,350,000||$9,750,000||3.5|
|Catalina Mission||Tuscon, AZ||336||$10,050,000||$12,685,000||2.58|
|Desert Tree||Tuscon, AZ||72||$1,800,000||$2,400,000||3.5|
|Palms LaMesa||Tuscon, AZ||78||$5,300,000||$7,720,000||3.2|
|Arcadia Park||Tuscon, AZ||288||$11,250,000||$15,900,000||2.83|
|Cedar Wood||San Diego, CA||52||$1,750,000||$4,350,000||4|
|Palermo||San Diego, CA||38||$2,250,000||$4,400,000||4|
|Neptune||San Diego, CA||21||$14,500,000||$17,600,000||6|
|La Mesa||San Diego, CA||88||$4,200,000||$5,500,000||3.5|
|F Street||San Diego, CA||78||$3,300,000||$5,000,000||3.5|
|Clairmont||San Diego, CA||66||$4,200,000||still own|
|Sabino Canyon||Tuscon, AZ||24||$2,000,000||still own|
|Somerstone||Charlotte, NC||360||$8,280,000||still own|
|Oriole Dr||Los Angeles, CA||1||$7,350,000||$17,000,000||8|
|Harbour Portfolio||St. Lucie, FL||1016||$59,000,000||still own|
|Integra Shores||Daytona, FL||288||$32,200,000||still own|
|Naples Center||San Diego, CA||Center||$23,000,000|
We believe that this current real estate market will create incredible opportunities for patient and savvy individuals who are properly prepared to seize the opportunities to acquire the value add opportunities that will be forced upon the market due to the extreme conditions in our current market condition.
The group’s financial condition, high ethics standing combined with its proven track record will prove to be valuable assets in the acquisition of the right properties and in providing good financing.
Proposed Deal Structure
Strategic partner places up to 30% of the required equity and LLC borrows the rest as primary notes from banks.
CRE to invest up to 10% of its own equity into the deal base upon strategic partners contribution.
After bank loan is repaid, strategic partner receives a preferred return under the following matrix:
- 6%: 90/10
- 10%: 75/25
- 14%: 60/40
- 18%: 50/50
- 22%+: 60/40
Cardone Acquisitions, founded in 1995, is a multi family real estate acquisition run by Grant Cardone. Cardone Acquisitions currently owns over 2000 units across the USA and wants to expand to 5000 units. We are seeking an in-house acquisition Intern for our corporate office located in Miami Beach.
The position requires the candidate work in a variety of capacities. The bulk of this individual’s workload will be comprised of the following tasks:
- Conduct investment analysis for acquisition including investment underwriting.
- Able to underwrite and analyze potential investments.
- Research various property markets, obtain and analyze sales and rent comp studies.
- Able to oversee third party management of acquisitions.
- Research and build contact lists to help Acquisitions Team develop leads
- Support and interact with Executive Team.
- Prepare investment packages and ad-hoc investor presentations.
- Perform internal and external REO valuations.
- Financial analysis for asset management of operating properties.
Desired Skills and Experience:
- Detail oriented.
- Familiarity with underwriting of multifamily development and acquisitions.
- High level of proficiency with Excel and Powerpoint.
- Highly entrepreneurial, self-motivated, persistent individual with an interest in a career in real estate acquisitions, investment management and/or commercial sales.
- Excellent verbal and written communication and interpersonal skills.
- Strong research and analytical ability, strong attention to detail, and ability to work in an Entrepreneurial environment.
- Must be energetic and able to present Cardone Brand to buyers, sellers, lenders and investors.
- Able to handle tremendous amounts of activity with little direction.
- Proactive, detail-oriented work habits with the ability to multi-task, meet deadlines, and function independently and as part of a small team.
- Must have initiative and be able to achieve objectives with minimal supervision.
Interested in Working with Us?
If you think you have what it takes to be a part of a fast-paced, high-performance team of entrepreneurs and talented real estate industry, investment and asset management experts, we want to hear from you.
For more information about career opportunities at Cardone Acquisitions contact us at: