Grant Cardone’s Debt Warning Sparks Fear—and Fury—In Real Estate Markets

A man who once called the stock market a “sideshow” is now the face of a looming crisis. Grant Cardone, the self-made real estate mogul and motivational guru, ignited a firestorm in late May 2025 by warning that $2.7 trillion in commercial real estate debt could collapse 300 banks and wipe out pensions. His stark predictions—and the aggressive financial strategies he promotes—have divided investors, regulators, and even his own allies.

The Debt Bombshell

Cardone’s TikTok video, viewed over 10 million times, framed the commercial real estate sector as a ticking time bomb. “The Fed’s money printing funded wars, but the inflation comes later,” he declared, arguing that defaults on $2.7 trillion in commercial loans could destabilize pensions and banks. The warning resonated with experts:

• Abigail Wright, a Chamber of Commerce advisor, noted that banks’ heavy exposure to office loans could tighten lending, stifling homeowners and small businesses.
• Analysts at Deloitte estimated that 40% of U.S. office space is now vacant, with remote work trends permanently reducing demand.

But Cardone’s solution—advising investors to use 65% debt leverage to buy properties—is what’s drawing fire.

The 10X Philosophy vs. Reality

Cardone’s “10X Rule” encourages investors to think 10 times bigger than their goals. For real estate, this means leveraging debt to buy large-scale assets like 100-unit apartment complexes. Yet critics see this as a recipe for disaster:

• A CFA analyst, writing for Benzinga, called Cardone’s advice “financial suicide,” noting that 65% leverage leaves little margin for error in a downturn.
• The Securities and Exchange Commission (SEC) has flagged Cardone’s syndication fund, Cardone Capital, for undisclosed fees, with investors paying up to 15% in management and performance fees.

Meanwhile, his promotion of pulling retirement funds from 401(k)s to invest in real estate drew condemnation. “This isn’t wealth-building—it’s wealth destruction,” said one retirement planner.

Lawsuits and Legacy

Beyond financial advice, Cardone faces legal battles over his business practices. A $100 million defamation case, stemming from a 2024 Instagram post by his wife Elena, remains unresolved. Former partner Gary Brecka accuses Cardone of breaching contracts to seize control of their wellness firm, 10X Health, while Cardone claims Brecka stole $13 million via side ventures.

The fallout isn’t just personal—it’s professional. A Reddit post titled “Is Grant Cardone a Fraud?” went viral, with users accusing his courses of being “overpriced cult material” that prioritizes recruitment over results.

The Bottom Line: Proceed with Caution

Cardone’s warnings about commercial real estate are undeniably prescient. The shows a 25% drop in value since mid-2022, reflecting investor anxiety. Yet his solutions—maxed-out leverage and risky withdrawals—are risky for all but the most seasoned investors.

The takeaway? While the debt crisis is real, the cure shouldn’t be worse than the disease. Diversification, low-cost index funds, and avoiding “guru-driven” hype remain the safest paths. As one financial planner put it: “Cardone’s vision is 10X bigger—just not 10X better.”

In the end, the real estate mogul’s legacy may hinge on whether his bold predictions outpace his questionable methods. For now, the market—and his critics—are watching closely.

Conclusion: Grant Cardone’s warnings about commercial real estate’s debt crisis highlight systemic risks, but his aggressive strategies risk amplifying them. With $2.7 trillion in loans at risk and 300 banks on the brink, investors must balance urgency with prudence. While Cardone’s 10X philosophy sells courses and conferences, traditional diversification and fee-conscious investing remain the bedrock of long-term stability. The real estate market may be a gamble, but it’s one best placed in portfolios—not in retirement accounts.