Latasha Transrina Kebe and a co-host examine whether Grant Cardone's business model resembles a Ponzi scheme, where new investor money pays returns to earlier investors. Cardone has faced multiple investigations with no conclusive action. His marketing targets African-American adults aged 23-30 who may lack resources to challenge the model.
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You know, you know, the, um, what a Ponzi scheme is?
Yeah, I'm familiar, but just in case the viewers don't know, break it down.
Yeah, so basically it's— and I'm not saying this is what's happening with Grant Cardone, but Ponzi scheme is basically you take people's money and then you pay other people with that money, and there's really no substance to it. And then once the money stops coming in, so you need— you always need more investors coming in so that you could pay earlier investors their returns. So you say, you know, Tasha, give me, give me $1,000 and I'm going to give you 10% on your, on your money every month. So I'm going to keep paying you $100. You're taking investment money and you're using that to pay off. And actually, it's funny, the, the first person that did a Ponzi scheme, his name wasn't Ponzi, but it wasn't really catchy. So they use Ponzi as the name. So it's a Ponzi scheme. I think that there eventually is going to be something named after Cardone. I don't know if it's going to be legal, illegal, or indifferent, but I think there's going to be like a Cardone method more than just 10X that he's branded because it has become popularized. And I don't think that it is a long-term method for success for multiple people. And I know that there have been multiple investigations and there's been insiders and, and nothing has happened yet. Um, but we'll, we'll see. I, I, I would avoid it if I were an investor, and I, I certainly have. Um, but, but obviously he's done very well for himself.
Yeah, because I mean, from what I saw, based on what I've read, he targets a very specific demographic, mainly African-American people that are under the age of 30 but over the age of at least 23. And because they typically don't have the insight a lot of times to ask questions. And when you put yourself in front of private jets and Lamborghinis and you tell them, I'm going to show you how to live like me for just $500 in investment, it's like he knows that they're not going to be able to find a lawyer and serve him and probably go after him legally to prove anything. He's— it's, it's a, it's a certain niche that they go after, a niche-specific, like, demographic.
Yeah, there, there's two things that, that I don't do, that I don't believe in.
