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Major investor abandons NYC over Trump verdict

via ABC News
This article was originally published at StateOfUnion.org. Publications approved for syndication have permission to republish this article, such as Microsoft News, Yahoo News, Newsbreak, UltimateNewswire and others. To learn more about syndication opportunities, visit About Us.

Real estate investor Grant Cardone and other financial experts are reevaluating their investment strategies in New York following the outcome of former President Trump’s fraud trial.

Cardone expressed concerns about the risks outweighing the opportunities in New York real estate, leading his firm to halt underwriting in the city and focus on markets like Texas and Florida.

“We thought this year was the opportunity to come into Chicago, California and New York City. I’ve been waiting for 40 years now to invest in that marketplace. I was completely confident this was the year to come,” Cardone said. “And when that ruling happened, it was like, pencils down. Don’t touch it. Don’t go there.”

The aftermath of the trial has raised financial uncertainties in New York, with potential implications for property values and loan defaults.

“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, not sell real estate in New York,” Cardone said.

“Loan proceeds are based on the value of the property. They’re going to require me to actually underwrite my property on the cash flow, the income of the property and what valuation I believe that property’s worth. The broker also put a valuation on it,” he added, “and then the bank is also going to use at least one other appraisal, maybe two, or independent of me.”

“There could be as many as five appraisals on that. The value that I’m going to put on the property. Keep in mind, when I’m buying something, I’m not thinking about selling it the next day. In the case of Trump, he’s not selling any of this stuff,” Cardone said. “We want the property for the cash flow… every seller is always going to push the price value up based on the future, not based on fraud.”

Kevin O’Leary also echoed concerns about investing in New York post-trial, highlighting policy issues and high taxes.

Cardone warned of a business ripple effect, with a reluctance among investors to commit significant funds to New York in the near future.

“New York was already a loser state, like California is a loser state. There are many loser states because of policy, high taxes on competitive regulation,” O’Leary said. “I would never invest in New York now. And I’m not the only person saying that.”

“We were going to put $1 billion in New York City this year. 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,” he said. “Texas, Florida, Arizona: go hard, go big and go long.”

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