A number of nationwide real estate investors, including Grant Cardone of Cardone Capital, have made the decision to relocate their operations away from New York following the outcome of former President Trump’s fraud trial.
Dear Cardone Capital team,
Immediately discontinue ALL underwriting on New York City real estate. The risk outweigh the opportunities at this time.
Recent political decisions will continue to deteriorate price and benefit states that don’t have these challenges.
Focus on Texas… pic.twitter.com/nTdJ5d4dO5
— Grant Cardone (@GrantCardone) February 20, 2024
In an interview on “Fox & Friends,” Cardone expressed his disappointment, stating, “We had plans to expand into Chicago, California, and New York City this year. I’ve been eagerly awaiting this opportunity for four decades. However, the recent ruling has forced us to reassess our strategy.”
Cardone announced on X that his firm would cease all underwriting activities in New York City immediately, opting instead to focus on more business-friendly markets like Texas and Florida.
According to Cardone, the risks associated with investing in New York now outweigh the potential opportunities, especially considering the state’s increasingly politicized business environment.
CardoneCapital just started to research real estate investments in New York believing it was time to get into the market.
After the over reach by the judge in the Trump case & penalties imposed of $355M I told them team do NOT waste time in New York.
We will 2X our efforts in:… pic.twitter.com/zhpA0Su09K
— Grant Cardone (@GrantCardone) February 19, 2024
“We have a responsibility to our 14,000 investors at Cardone Capital who rely on stable cash flow. The uncertainty caused by recent events, combined with restrictive policies and migration trends, has made it impossible to continue our operations in New York,” Cardone explained.
Furthermore, Cardone highlighted additional financial concerns stemming from the aftermath of the $355 million ruling against Trump. He warned of potential repercussions for pension funds, lenders, and real estate investment trusts, which could lead to a decline in property values and an increase in loan defaults.
Kevin O’Leary, also known as “Mr. Wonderful” from “Shark Tank,” echoed Cardone’s sentiments on “Cavuto: Coast to Coast,” cautioning against further investment in New York.
“New York has become synonymous with high taxes and excessive regulation. The recent trial outcome only exacerbates the already unfavorable business climate,” O’Leary stated.
Cardone emphasized the ripple effect of these decisions on the real estate industry, predicting that many investors would refrain from making significant investments in New York in the near future.
“We had ambitious plans to invest billions in New York City, Chicago, and Los Angeles. Unfortunately, the current climate has forced us to reconsider. Instead, we will focus our efforts on states like Texas, Florida, and Arizona, where we can thrive,” Cardone concluded.
