Real estate investors want nothing to do with New York after the bombshell ruling in Donald Trump’s civil fraud case; “the risk outweighs the opportunities,” says Cardone Capital’s Grant Cardone.
Cardone spoke with Steve Doocy on Fox & Friends this week.
“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 told Doocy. “And when that ruling happened, it was like, pencils down. Don’t touch it. Don’t go there.”
“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,” the fund manager explained.
Cardone went viral this week after telling his team to stay away from New York City.
“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 & Florida.” Grant Cardone.”
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
“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,” the investor expanded, “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 continued. “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.”
Watch Cardone’s analysis above.
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