Born on March 21, 1958, Grant Cardone grew up in Lake Charles, Louisiana, alongside his four siblings.
His father passed away when he was just 10 years old, and it was his mother’s frugality that would go on to shape Cardone’s early perspective on money and success. But the story doesn’t end there.
Let’s take a look at how Cardone rose from his humble beginnings to becoming a financial titan.
The Meteoric Rise
Cardone’s career began with a rather rocky start. After graduating from McNeese State University, Cardone found himself struggling with drug addiction, an ordeal that led him to rehab at 25. It was this moment that triggered the rise of Cardone, as he began a sales job in an automobile dealership and quickly ascended the ranks.
His early career is marked by remarkable tenacity and resilience.
By the age of 30, Cardone had transitioned into the real estate industry. Here, he began to establish his empire, Cardone Capital.
The firm invests in multifamily real estate, a lucrative segment with high returns. His hands-on and aggressive approach made Cardone Capital a major player in the real estate industry, with a portfolio boasting over 7,000 units by 2018.
Here’s a snapshot of Cardone Capital’s exponential growth over the years:
| Year | Units Owned |
|---|---|
| 2012 | 1,000 |
| 2014 | 2,500 |
| 2016 | 4,000 |
| 2018 | 7,000 |
Cardone was not just a businessman; he was also an author, speaker, and social media celebrity. He authored several best-selling books, including “The 10X Rule” and “Sell or Be Sold,” delivering practical advice to entrepreneurs and business-minded individuals.
He had a captivating style, which made him a favourite on various talk shows and at conferences, attracting millions of followers across his social media platforms.
The Turning Point
However, all good things must come to an end, and for Cardone, the end began to take shape in the form of over-ambitious expansion plans. While the strategy had worked well for him in the past, this time, the market conditions were not as favourable.
With the economic downturn triggered by unforeseen global events in 2021, real estate markets became unstable. As vacancy rates rose and returns diminished, Cardone Capital began to experience the first signs of strain.
But the resilience Cardone demonstrated early in his life appeared to have given way to a sense of invincibility, blinding him to the storm that was about to hit.
| Year | Vacancy Rates (%) | Returns (%) |
|---|---|---|
| 2019 | 5 | 10 |
| 2020 | 6 | 9 |
| 2021 | 10 | 6 |
| 2022 | 15 | 3 |
The Downfall
Cardone’s downfall can be attributed to two main factors: his over-reliance on debt and his refusal to adapt to the changing market conditions. Cardone Capital was highly leveraged, a strategy that can amplify profits but also magnify losses in adverse situations.
In the downturn, Cardone’s debt burden became unbearable. The firm was unable to service its debt obligations, leading to several of its properties being foreclosed. As losses mounted, investors began to pull out, leaving Cardone Capital in a precarious financial situation.
| Year | Debt (in million $) | Foreclosed Properties |
|---|---|---|
| 2019 | 200 | 0 |
| 2020 | 300 | 2 |
| 2021 | 400 | 5 |
| 2022 | 500 | 8 |
Despite the grim reality, Cardone remained defiant, his public appearances characterized by an upbeat tone and unrelenting optimism. But behind the scenes, the reality was starkly different.
Cardone Capital filed for bankruptcy in late 2022, marking the official end of an empire that had once seemed invincible.
The Lesson
The rise and fall of Grant Cardone is a classic tale of ambition, success, and downfall.
It teaches us that resilience and hard work can lead to monumental success, but over-ambition and a lack of adaptability can just as quickly lead to downfall.
In simpler terms, think of it like this: if you’re building a castle out of blocks and you keep adding more and more to the top without making sure the base is strong, it’s going to topple over. That’s sort of what happened with Cardone. He built a big, beautiful castle, but he didn’t make sure his foundation (or money) was strong enough to hold it all. And when things started to shake a little (like a storm hitting the castle), it all came crashing down.
In the end, the story of Grant Cardone serves as a reminder that financial success isn’t just about making money; it’s also about managing it wisely.