Grant Cardone: 'Sanctuary City Real Estate Values Could Create Systemic Banking Crisis'

Grant Cardone has been very vocal on X, formerly Twitter, of late, making several posts about the ruling against former President Donald Trump, in which he was ordered to pay $355 million in penalties plus interest.

Cardone made a series of posts, including telling his team to "immediately discontinue all underwriting on New York City real estate" and that "CardoneCapital doubles down in Florida, Texas & Arizona."

Don't Miss:

• Investing in real estate just got a whole lot simpler. This Dara Khosrowshahi-backed startup will allow you to become a landlord in just 10 minutes, and you only need $100.
• Commercial real estate has historically outperformed the stock market, but few investors have the capital or resources needed to invest in this asset class. A platform backed by industry giant Marcus & Millichap is changing that, allowing individuals to invest in commercial real estate with as little as $5,000. 

On Thursday, February 22, he explained why real estate investors and developers should avoid New York City and other sanctuary cities.

Here's the post:

SANCTUARY CITY REAL ESTATE VALUES COULD CREATE SYSTEMIC BANKING CRISIS

Baltimore, Chicago, New York City, Los Angeles, Philadelphia, San Francisco, San Jose, San Diego and Seattle real estate will experience ACCELERATED downward pressure on price.

“These once great, real estate investment cities are being destroyed, literally overnight,” Grant Cardone. 

Professional Real Estate Investors & institutions will NO longer risk exposure in these markets.

The void of investors in these markets may result in a systemic financial crisis spreading to regional banks, institutions and pension funds invested in those markets. 

Why would investors take on the added risk of these markets? Higher taxes, collections, legal bills, unable to collect rents, raise rents, higher cost to build, unfriendly to property owners and an increase financial burden on these cities. 

Too many other markets that don’t come with the risk like Florida, Tennesse, Texas, Arizona and the Carolinas. 

CardoneCapital 

GrantCardone, CEO

(@GrantCardone on X)

Cardone continues to make his views very clear. While very few real estate investors and developers are as vocal as he is, time will tell if others are following suit.

Read Next:

• Commercial real estate has historically outperformed the stock market, but few investors have the capital or resources needed to invest in this asset class. A platform backed by industry giant Marcus & Millichap is changing that, allowing individuals to invest in commercial real estate with as little as $5,000. 
• Collecting passive income from real estate just got a whole lot simpler. A new real estate fund backed by Dara Khosrowshahi gives you instant access to a diversified portfolio of rental properties, and you only need $100 to get started.

Image Credit: YouTube

Start generating passive income through real estate

Check out these featured investments from Benzinga's Real Estate Offerings Screener.