A recent decision in a civil fraud case against former President Trump has caused a stir in the real estate industry. The ruling, which orders Trump to pay $355 million, has prompted some real estate investors to reconsider doing business in New York.
Grant Cardone, a prominent real estate investor, took to social media to announce that his company, CardoneCapital, would be shifting its focus to investments in red states like Florida, Texas, and Tennessee. This move comes as a response to the court ruling against Trump, which has raised concerns about the business climate in New York.
Cardone’s decision is not an isolated one. Shark Tank’s Kevin O’Leary, also known as “Mr. Wonderful,” has also expressed his reluctance to invest in New York following the ruling against Trump. He cited the state’s high taxes and burdensome regulations as deterrents to investment, and instead, he plans to focus on red states like North Dakota, Oklahoma, and West Virginia.
The ruling against Trump has also sparked a fundraising effort led by Elena Cardone, Grant’s wife, to help the former president pay the $355 million. As of now, the campaign has raised over half a million dollars, signaling the support and solidarity among real estate investors for Trump.
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
In response to the concerns raised by the real estate industry, Gov. Kathy Hochul of New York tried to reassure business owners that they would not be penalized for doing business in the state. She emphasized that the ruling against Trump was an isolated case and that the majority of business owners in New York are honest and law-abiding individuals.
After New York real estate developers threatened to pack up and leave after the Trump verdict, Governor Kathy Hochul promised that they have nothing to worry about.
Why would she say this? They’ve all admitted that they do what Trump does and it’s common practice, so why did…
— 🇺🇸Travis🇺🇸 (@Travis_in_Flint) February 19, 2024
However, her message did not seem to resonate with investors like Cardone and O’Leary. Instead, they see the ruling as a red flag for the business climate in New York, which is already facing challenges due to high taxes and stringent regulations. This sentiment is shared by many in the real estate industry and could have a significant impact on future investments in the state.
The decision by CardoneCapital and other investors to steer clear of New York could have far-reaching consequences. Beyond the potential loss of investments, it could also lead to an exodus of businesses, job opportunities, and tax revenue. This could further exacerbate the economic challenges faced by the state, especially as they continue to recover from the COVID-19 pandemic.
Furthermore, the contrast between red and blue states in terms of economic growth and business-friendly policies is becoming increasingly apparent. While red states are attracting investors and entrepreneurs with their low taxes and relaxed regulations, blue states like California and New York are struggling to retain businesses and talent.
Ultimately, this situation highlights the importance of leadership and the impact it can have on a state’s business climate. Whether it’s through tax policies, regulatory reforms, or support for entrepreneurship, leaders have the power to shape the environment for businesses to thrive. And as investors like Cardone and O’Leary have shown, they will choose to invest in states with favorable policies and a conducive business environment.
After New York real estate developers threatened to pack up and leave after the Trump verdict, Governor Kathy Hochul promised that they have nothing to worry about.
Why would she say this? They’ve all admitted that they do what Trump does and it’s common practice, so why did…
— 🇺🇸Travis🇺🇸 (@Travis_in_Flint) February 19, 2024
It remains to be seen how New York will address these challenges and regain the trust of investors.
