These Doomed States Just Accelerated Their Decline | Grant Cardone

Summary

In this interview on The Rubin Report, real estate mogul Grant Cardone discusses the economic challenges faced by states like New York and California, driven by poor policy decisions that are driving residents and businesses away. He talks about the financial impact of people 'voting with their feet' by relocating to business-friendly states like Florida. Cardone also touches on the challenges of real estate markets, housing affordability, and the consequences of political decisions on business operations. The conversation shifts between politics, finance, and the future of real estate investment in the U.S.

Takeaways

• 💼 Grant Cardone believes poor decisions made by states like California and New York are driving people and businesses away, leading to a significant loss in tax revenue.
• 📉 Cardone estimates that the exodus from these states has cost them billions in tax revenue, including $10 million a year from his own decisions alone.
• 📈 People are 'voting with their feet,' moving to places like Florida, which Cardone sees as benefiting from the bad decisions made by other states.
• 🌎 Cardone recently visited Dubai and found it to have more freedoms than expected, challenging the narratives from mainstream media.
• 🚪 Cardone pulled out of $500 million worth of real estate deals in New York due to political decisions like the judgment against Donald Trump.
• 🏡 Despite political issues, Cardone still sees cities like New York and Los Angeles as phenomenal real estate markets due to high barriers to entry and limited ability to build new properties.
• 💸 Cardone is critical of Kamala Harris’s plan to give $25,000 to homebuyers, believing it will further inflate housing prices and delay purchasing decisions.
• 🏘️ He also doubts the feasibility of building 3 million homes, highlighting issues of affordability and logistics due to high interest rates.
• 🚫 Cardone appreciates Florida’s real estate laws, which allow for quicker evictions and fewer restrictions compared to places like California and New York.
• 💬 He views the intersection of politics and business as unavoidable, especially when it starts to affect finances, hiring, and the overall economy.

Q & A

What financial impact does Grant Cardone mention his decisions had on a specific state?

Grant Cardone mentions that his decision to pull out of real estate deals in New York City cost the state $10 million a year in property taxes.

What does Cardone believe will eventually cause states like New York and California to recover?

Cardone believes that when enough people are fed up and vote with their feet, there will be a moment when New York City and California recover, potentially under new leadership.

Why did Grant Cardone become more politically engaged in recent years?

Grant Cardone became more politically engaged because political decisions started to affect him personally, especially regarding his finances and business interests.

What shift does Cardone notice among tech and venture capital figures regarding politics?

Cardone observes that many tech and venture capital figures, who were previously apolitical or leaned left, are now shifting towards supporting Trump due to the impact of political decisions on their finances.

Why did Grant Cardone decide to pull out of real estate deals in New York City?

Cardone decided to pull out of real estate deals in New York City, worth about half a billion dollars, after the judgment on Donald Trump, which led him to redirect investments to Fort Lauderdale and Miami.

What does Cardone say about the current real estate market in cities like New York and Los Angeles?

Cardone states that despite the exodus of people from cities like New York and Los Angeles, real estate prices remain high due to barriers to entry, making them still great investment markets.

How does Grant Cardone view Florida’s approach to business compared to states like California?

Cardone believes that Florida is benefiting from the poor decisions of states like California, which are driving businesses and investments to Florida, though he doesn’t think Florida is doing everything right.

What are Cardone’s concerns regarding Kamala Harris’s housing proposal?

Cardone criticizes Kamala Harris's proposal to give first-time homebuyers $25,000, saying it will inflate housing prices and delay home purchases, ultimately making the housing market worse.

What does Cardone say about the eviction process in California compared to Florida?

Cardone explains that in Florida, the eviction process is straightforward, taking 30 to 45 days, whereas in California, tenants can delay eviction by citing reasons like weather or illness, extending the process for months.

What issue does Cardone raise about illegal immigrants and squatter situations in cities like New York?

Cardone mentions that illegal immigrants and squatters are causing issues in cities like New York, with landlords converting basements into dormitories to house multiple people at a low cost, exacerbating housing problems.