Grant Cardone: I Won’t Invest in NYC Real Estate Following the Trump Ruling
Written by
Gabrielle Olya
Edited by
Gary Dudak
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On Feb. 16, New York’s Judge Arthur Engoron found former President Donald Trump guilty of fraud, ordering him to pay $355 million and temporarily barring him from his New York-based business. The implications of this ruling could extend far beyond Trump’s pockets, according to Grant Cardone, private equity fund manager and real estate investor.
“If this ruling and the penalty do not get overturned, it could become a precedent that means all borrowers everywhere are at risk of the same thing happening to them,” Cardone, who will be hosting the 10X Growth Conference 2024 in April, told GOBankingRates.
Because this ruling occurred in New York, Cardone predicts that it will make prospective investors wary about obtaining assets in the state. This could crush New York City’s real estate market, he said.
“Prices of properties will continue to fall in New York City as more and more institutions, investors and pension funds refuse to invest there,” Cardone said. “Investors and those investing on behalf of others have a fiduciary responsibility to invest in markets where you may assume that future values are going up, with some measure of confidence.”
Cardone himself has paused his investments in New York City, he announced on X.
“Dear Cardone Capital team: Immediately discontinue ALL underwriting on New York City real estate,” he tweeted. “The risk outweighs the opportunities at this time. Recent political decisions will continue to deteriorate price and benefit states that don’t have these challenges.”
In fact, Cardone advises against investing in any sanctuary cities.
“Avoid investing in all sanctuary cities including New York City, Chicago, Seattle, Los Angeles, San Francisco and San Jose,” he said. “Until such time as the politicians value the property owner rights as well as residents’ rights, it is not worth the investment risk.”
Where Cardone Says Investors Should Put Their Money Instead
Instead of putting money in New York, Cardone advises real estate investors to seek other markets that he believes will provide better returns.
“My top three investment markets are Florida, Texas and Arizona,” he told GOBankingRates. “After that, I also like Tennessee, the Carolinas and Alabama. Invest in red states, or even outside the country. That ruling would never happen in the Middle East.”
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