Grant Cardone's real estate empire is under legal fire, bad news for the thousands of small investors who put money into his funds on promises of big returns.

• A $250 million class action claims Cardone promised investors a 15% annual return he now admits, under oath, his funds likely won't hit.
• The lawsuit centers on a 2019 post pitching that 15% return with no clear disclaimer — the same claim the SEC already told him lacked any basis.
• Cardone appears to lend his own money into his deals at 6% (well above the roughly 4% mortgage rates of 2019) while sitting ahead of investors, so he's protected and they get wiped out first if a deal sours.
• He stacks fees on top of fees — a 1% cut every time he refinances and pulls cash out, plus his 35% profit share, and keeps charging management fees even after most investor money has been returned.
• Only two of his 47 funds are audited, and those are the exact two now being sued; the fees owed get buried in footnotes instead of shown as real debt.

Outlook: The case is headed toward a jury with Cardone's own deposition admitting the targets won't be met, and his heavily underwater Bitcoin bet looks more like a hope than a rescue plan.