California real estate problrems

Look, I love California, I lived there for 25 years — but there’s no way in hell I’m going to invest in apartments there.

People have always wondered how come I own $5 billion worth of real estate yet I don’t own any multifamily properties in California.

Well, there are three major reasons why California is and will stay off my list.

The 3 Big Problems with Real Estate in California

1The state is broke

And I mean “financially broke”. Did you know that California, the most populous state, had the largest amount of total debt in America in 2019

They are broke. And as they are broke, they will rob from people that have money.

I learned this the hard way in 2008. Back then I owed $52 million to the bank. So what did the bank do?

They called me and asked me to pay the $52 million back.

Now, why did they call me and didn’t call other people? Because they knew I had money sitting around. They knew I was liquid at the time.

That’s when I decided that the next time this happens, I ain’t gonna have a bunch of cash for them to get. I’m gonna have assets they can’t touch. Because they can’t make me sell my assets.

2California’s Tenant Protection Act

This law is the number one reason why I stay away from California.

Because when the law tells the tenant that they don’t have to pay yet they can stay, I don’t own the property anymore. The government does.

If you can’t tell a tenant to leave and he’s causing problems, that causes problems to all the other tenants that are paying. That tenant is ruining the property for everybody that lives there.


You knew this one was coming. Taxes in California are simply ridiculous. 

Again, it’s because the state is broke and they’re doing all kinds of ridiculous stuff to pay their debt.

Now, if you’re interested in learning more about my experience, register for my Real Estate Training here.

Disclosure: This content is intended to be used for educational and informational purposes only. Before investing, you should always do your own analysis based on your own financial and personal circumstances before making any investment. Grant Cardone is an industry expert who has been investing for over 30 years and his opinion is based solely on his own personal experience and circumstances. Individual results may vary. You should perform your own due diligence and seek the advice from a professional to verify any information on our website or materials that you are relying upon if you choose to make an investment. Investment involves great risk and there is no guarantee of performance or results.

We are not attorneys, investment advisers, accountants, tax professionals or financial advisers and any of the content presented should not be taken as professional advice. We recommend seeking the advice of a financial professional before you invest, and we accept no liability whatsoever for any loss or damage you may incur.

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Star of Discovery Channel’s “Undercover Billionaire,” Grant Cardone owns and operates seven privately held companies and a private equity real estate firm, Cardone Capital, with a multifamily portfolio of assets under management valued at over $4 billion. He is the Top Crowdfunder in the world, raising over $900 million in equity via social media. Known internationally as the leading expert on sales, marketing, and scaling businesses, Cardone is a New York Times bestselling author of 11 business books, including “The 10X Rule,” which led to Cardone establishing the 10X Global Movement and the 10X Growth Conference, now the largest business and entrepreneur conference in the world. The online business and sales educational platform he created, Cardone University, serves over 411,000 individuals and Forbes 100 corporate clients throughout the world. Voted the top Marketing Influencer to watch by Forbes, Cardone uses his massive 15 million plus following to give back via his Grant Cardone Foundation, a non-profit organization dedicated to mentoring underserved, at-risk adolescents in financial literacy, especially those without father figures.

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