Grant Cardone is being sued over his real estate funds after admitting on camera that he does not expect to deliver the returns he advertised — bad news for the investors who put money in on those promises.

• Cardone's funds were marketed with a target of roughly doubling to tripling investors' money, plus a high annual return figure.
• He said plainly that he does not think the funds will hit those targets.
• The marketing materials apparently carried no clear warning that the targets might be missed, which is the heart of the legal complaint.
• Investors in the funds are now the ones exposed, since real estate deals bought at peak prices are hard to sell without a loss.

Outlook: The case will hinge on whether those return targets were presented as goals or as promises, and more investors are likely to join the claim.