The Promote Podcast — Episode Summary

Episode Title: Mormon Money & Cardone Waterfalls
Hosts: Hiten Samtani (A) & Will Krasne (B)
Date: September 3, 2025

Overview

This episode dives into three consequential commercial real estate (CRE) stories:

1. Grant Cardone’s acquisition of a distressed Boca Raton property—featuring a novel Bitcoin angle and syndicator strategy.
2. The broader tug-of-war between institutional and retail capital in private equity real estate.
3. A deep-dive into the secretive, powerhouse real estate playbook of the Mormon Church, one of the best operators in religious real estate.

The discussion is irreverent, detailed, and insider-focused, true to the podcast’s creed: “for insiders, by insiders.”

Segment 1: The Profane — Grant Cardone’s Boca Raton Rescue and the Bitcoin Twist

Timestamps: 01:36–12:09

Who is Grant Cardone?

• OG syndicator, predating most Sun Belt players ([01:44–02:19])
• Built Cardone Capital from scratch—20,000 investors, $1.7B raised, ~$5B AUM; emphasis on retail syndication ([02:19–02:29])
• Known for high retail engagement, mastery of the “distribution channel” to everyday investors ([02:53–03:13])

“He basically manifested this entire real estate empire one sucker at a time.” — Will ([01:57])

The Deal: 101 Via Mizner, Boca Raton

• Bankrupt 366-unit rental with $195M of Blackstone-owned debt ([03:38–04:15])
• Sponsor Mark Gensheimer faced similar troubles elsewhere; property in bankruptcy ([03:57–05:03])

The Foreclosure Chess Match

• Blackstone executed a UCC foreclosure (quick vs. cumbersome court route) ([04:24–04:57])
• Penn Florida filed bankruptcy; Cardone arrives as “stalking horse” bidder ([05:03–05:08])

“If you’re a stalking horse, you can agree to set the floor of the pricing… sometimes you can get a breakup fee.” — Will ([05:08])

Competing Bidders

• Crescent Heights (institutional) offered more but needed longer diligence for condo conversion; Cardone won on “certainty”—$20M hard deposit, quick close ([05:53–06:38])
• Cardone’s $235M bid closed the deal; Penn Florida retained a small stake ([06:56–07:00])

The Syndicator Playbook

• Cardone closes fast using own funds, then syndicates—taking hefty fees ([07:00–07:52])
• Retail channel allows for non-institutional, more lucrative economics:

“They can kind of see the backend economics for them because of the fees that are built into their process.” — Hiten ([07:36])

The Bitcoin Waterfall

• Shock twist: Reorg entity includes $100M in Bitcoin ([08:27–08:44])

“Cardone’s investors are paying an AUM fee on bitcoin—what?” — Hiten ([08:45])

• Penn Florida has 12-month buyback option ($300M); Cardone has a call on Penn’s BTC at cost (so Cardone captures all crypto upside) ([09:00–09:32])

“Grant Cardone only does good structures for him.” — Will ([09:32])

Analyst Reaction

• Cites Ed Bond’s NPL newsletter: “I was and still am skeptical of including BTC in a real estate transaction. If I want BTC exposure, I can easily buy it… It adds volatility to an already risky real estate deal. But for Cardone it’s a great situation.” ([09:46])

“Who doesn’t love free upside?” — Will ([10:07])

Lessons

• Retail syndicators like Cardone can write creative, asymmetric deals by virtue of speed, retail capital, and direct investor loyalty ([11:02])

“He’s not selling a real estate deal. He’s selling Grant Cardone.” — Will ([11:18])

• Large sums for alternative assets (crypto) possible with hot distribution channels:

“If you can raise it, you can do it… people can raise money for crypto stuff.” — Will ([11:30])

Segment 2: Institutions vs. Retail — The New Gold Rush for Capital

Timestamps: 12:09–18:45

Rising Retail, Nervous Institutions

• All major fund managers (Blackstone, Brookfield, etc.) now building retail capital pipelines, eyeing the mammoth 401k pool ($12T) ([12:09–12:35])
• Institutional investors pushing back—fear of losing influence and preferential economics ([12:35–12:57])

“If you’re like, I want lower fees, I want you to make less money, I want more decision rights… what do you expect?” — Will ([12:57])

Why Syndicators Love Retail

• Retails bring fatter fees: “Acquisition, debt, asset management, promote, catch up” ([13:10–14:00])
• Catchup mechanisms in retail deals can yield nearly 40% of total promote, vs. 12–15% for the same returns with institutional funds ([13:10–14:00])

Institutional Realities

• Institutional capital usually structured via closed-end funds or SMAs, longer hold periods, tedious fundraising processes, less lucrative for sponsors ([14:10–15:46])
• Institutions value co-investment (“co-invest”) mainly for scaling allocations at lower fees ([15:46–16:16])
• Example: Large deals use a mix of fund equity and institutional co-invest ([16:16–17:05])

Retail Fund Dynamics

• Retail “evergreen funds” have lower hurdle rates (as low as 5% vs. 8% for institutions), easier economics for sponsors ([17:05–17:20])

Fundraising Trends

• Institutional PE fundraising shrinking ($600B globally, lowest in 7 years, per Preqin) ([17:29])
• Retail money is less coordinated; gives sponsors a freer hand ([17:57])

“It’s been coming for a long time… You can just layer into this one API, tap the vein and it comes rushing out.” — Will ([17:57])

Specialist Take

• Wealth managers and RIAs will be wined and dined as key CRE capital sources ([18:12–18:24])

“You are going to get a lot of steak dinners. You will not have an iron deficiency.” — Will ([18:19])

Segment 3: The Sacred — The Mormon Church CRE Playbook

Timestamps: 18:45–26:19

Land as Spiritual & Investment Capital

• Religious institutions traditionally major landholders (Trinity Church in NYC, etc.), but rarely professionalized ([18:45–19:08])
• Major exception: The Mormon Church (The Church of Jesus Christ of Latter-day Saints) ([19:15–19:17])

“They run that shit tight. They have an incredible property portfolio.” — Hiten ([19:17])

The Mormon Empire by Numbers

• Real estate portfolio: est. 1.7 million acres, $16B–much higher in truth, all in A+ locations ([19:21–19:37])
• Large farmland and industrial investments (e.g., in Florida: >2% of the state’s entire landmass) ([19:37–20:16])

“That's a staggering number. Like, Florida’s a pretty big place.” — Will ([20:11])

Institutional Sophistication

• All-cash buyers, no leverage; recently paid $400K/unit in Boca apartments, all equity ([20:19–21:03])

The Source: Tithing and Ensign Peak

• Tithing: Members contribute 10% of income ([21:03–21:12])
• Massive perpetual capital pool (Ensign Peak): $40B AUM in 2012 → $100B in 2019 ([21:12–21:34])
• No redemptions or liquidity pressure; investment horizon “for the second coming” ([21:55])

“They truly believe that they’re building for the second coming. So their entire real estate strategy is informed by that very, very long term approach.” — Hiten ([21:55])

Property Reserve — Mormon CRE Management

• 200-person professional team, led by BYU-trained developer Ashley Powell ([22:12–22:47])
• Standardized processes, templated floor plans, long-term master plan approach ([22:12–23:22])

“You’re really building stuff over the long term… This is going to take 100 years.” — Will ([22:53])

• Ex- and current Mormons vouch for Property Reserve’s sophistication ([23:31–23:42])

Broader Ethos

• Culture of craftsmanship, hard work, and missionary-like salesmanship—translated to real estate business ([24:10–24:24])
• Under-the-radar scale, likely many JVs and quiet investments ([24:35–24:57])
• Unique mission statement focused on “caretakers of sacred funds…sustainable cashflow” ([25:14–25:59])

“As caretakers of sacred funds, we invest in responsible, reliable and revenue-generating properties to support the church’s mission with a focus on creating sustainable cash flow.” — Property Reserve mission ([25:37])

Notable Quip

• Will: “I don’t think I can see the Mormons and the Scientologists getting together and letting Grant Cardone add in Bitcoin to these deals. You’re thinking small, bro. You’re thinking small.” ([26:04])

Notable Quotes

• “He’s not selling a real estate deal. He’s selling Grant Cardone.” — Will ([11:18])
• “They run that shit tight. They have an incredible property portfolio.” — Hiten ([19:17])
• “If you can raise it, you can do it. And I think right now, very clearly people can raise money for crypto stuff.” — Will ([11:30])
• “They truly believe that they’re building for the second coming. So their entire real estate strategy is informed by that very, very long term approach mindset.” — Hiten ([21:55])
• “As caretakers of sacred funds, we invest in responsible, reliable and revenue generating properties to support the church’s mission…” — Property Reserve mission ([25:37])

Key Takeaways

• Cardone’s syndicator playbook leverages his huge retail base for outsized speed, certainty, and creative (even risky) structures like real estate/bitcoin hybrids.
• Retail capital is the new battleground — managers and sponsors can juice their economics with retail in a way institutional capital won’t allow.
• The Mormon Church’s property strategy is a unique blend of scale, professionalism, and mission-aligned patience, making them among America’s most formidable and discreet real estate investors.