The recent court ruling that former President Trump must pay $355 million in punitive damages in his civil fraud case has caused quite a stir in the real estate world.
As the CEO of O’Leary Ventures and a prominent figure on the hit show “Shark Tank,” Kevin O’Leary, or “Mr. Wonderful” as he’s widely known, has some strong opinions on the matter. In a recent interview on “Fox & Friends Weekend,” he warned real estate investors against developing in New York, stating that it has now become a “loser state” for business.
O’Leary’s comments were not merely based on the Trump factor, but rather a larger issue that can affect any real estate developer looking to invest in New York. He believes that the arbitrary decision by the judge to assign such a huge amount as punitive damages sets a dangerous precedent for all developers.
“What does this say to everybody that wants to do work in New York and wants to risk capital?” he questioned.
According to O’Leary, this ruling is an “embarrassment” and an “assault on real estate.” He further expressed his concerns on FOX Business, stating that the case has put New York at the top of his list of “loser states” for business, overtaking California.
He believes that high taxes, heavy regulations, and unfavorable policies are driving businesses away from states like New York and California and towards more financially friendly states like Florida, Texas, North Dakota, West Virginia, and Oklahoma.
As a successful investor, O’Leary is urging fellow developers and investors to take this warning seriously and consider incorporating in “winner states” instead. He believes that businesses have the power to vote with their capital and that investing in states with better business climates will ultimately benefit both the company and the economy.
His sentiments were echoed by FOX Business host Charles Payne, who stated that O’Leary’s suggestion of not touching New York is “absolutely right.” Payne added that over $1 trillion in business has already left New York and that it’s unlikely to return to its full potential. He also cited issues such as rising crime rates and increased regulations as reasons for businesses to stay away from the state.
The recent ruling in the Trump case has further solidified New York’s position as a “loser state” for business. O’Leary’s warning should not be ignored, and investors and developers must carefully consider the potential risks before committing their capital. As for New York, it may have to reconsider its policies and regulations to attract businesses and retain its status as a leader in the real estate sector.
