The passage discusses how a recent $355 million fraud ruling against Donald Trump is prompting major real estate investor Grant Cardone to withdraw planned billion-dollar investments in New York City, Chicago and Los Angeles real estate.
Cardone cited the unpredictable legal and political environment created by the ruling making cash flows difficult to predict.
“We thought this year was the opportunity to come into Chicago, California and New York City,” Cardone said. “I’ve been waiting for 40 years now to invest in that marketplace. … And when that ruling happened, it was like, ‘Pencils down. Don’t touch it. Don’t go there.’”
He stated this decision was made to avoid similar risks for his 14,000 investors.
“The risk outweigh the opportunities at this time,” Cardone said. “Recent political decisions will continue to deteriorate price and benefit states that don’t have these challenges. Focus on Texas & Florida.”
“We invest for 14,000 investors at Cardone Capital that depend on cash flow. And if I can’t predict the cash flow because of some ruling, or because of the migrants, or because I can’t evict people — New York City just keeps doing every single thing they can to sell real estate in Florida and not sell real estate in New York,” he said.
“We were going to put $1 billion in New York City this year,” he said. “We were going to put $1 billion in Chicago and maybe another billion in Los Angeles. And we won’t touch any of them now.”
While the New York attorney general pursued the case against Trump, the ruling is now seen as potentially harming the state’s real estate market and economy by deterring other large investors.
