On Friday, billionaire investor Kevin O'Leary, also known as Mr. Wonderful, joined CNN to discuss the ongoing civil case against leading Republican presidential candidate and 45th President Donald Trump brought by New York Attorney General Letitia James (D-NY). O'Leary slammed James' efforts to criminalize routine business practices in real estate development, explaining that there is no way that the case would survive an appeal by the Trump legal team.
When asked if the case against Trump was "odd," O'Leary explained the potential ramifications this case has for real estate developers. "So if you are a developer and you have a building on a block anywhere in America and it's worth, let's say, $500 million, and you want to build a building right beside it, you go to a bank and say, 'This building is worth $500 million. I'd like to borrow a construction finance loan against this asset, and I want you to tell me it's worth $500 million, too.' And the bank negotiates with you and goes, 'Well, no, we think it's worth $400 million.' You fight it out. You are always trying to show your assets in the brightest light with the sunshine you can possibly determine for them. You want them to be worth the very most because you are only going to get a 40 or 50 percent loan to value, as it's called. Then you borrow that money. In the case of a $500 million asset, maybe you get $250 million, and you build a new building with a construction finance loan. So that's what this case is all about."
"Every single real estate developer everywhere on Earth does this. They always talk about their asset being worth a lot, and the bank says no. That's just the way it is. So, in this case, what I'm trying to figure out...Who lost money? Nobody!" O'Leary said. "If you're gonna sue this case and win, you gotta sue every real estate developer everywhere. This is all they do. This is what they do all day long, every day. So I don't think this thing will ever survive appeal…This doesn't even make sense."
WATCH:
When asked if the case against Trump was "odd," O'Leary explained the potential ramifications this case has for real estate developers. "So if you are a developer and you have a building on a block anywhere in America and it's worth, let's say, $500 million, and you want to build a building right beside it, you go to a bank and say, 'This building is worth $500 million. I'd like to borrow a construction finance loan against this asset, and I want you to tell me it's worth $500 million, too.' And the bank negotiates with you and goes, 'Well, no, we think it's worth $400 million.' You fight it out. You are always trying to show your assets in the brightest light with the sunshine you can possibly determine for them. You want them to be worth the very most because you are only going to get a 40 or 50 percent loan to value, as it's called. Then you borrow that money. In the case of a $500 million asset, maybe you get $250 million, and you build a new building with a construction finance loan. So that's what this case is all about."
"Every single real estate developer everywhere on Earth does this. They always talk about their asset being worth a lot, and the bank says no. That's just the way it is. So, in this case, what I'm trying to figure out...Who lost money? Nobody!" O'Leary said. "If you're gonna sue this case and win, you gotta sue every real estate developer everywhere. This is all they do. This is what they do all day long, every day. So I don't think this thing will ever survive appeal…This doesn't even make sense."
WATCH:
Kevin O'Leary, "Mr. Wonderful" went on CNN and absolutely DESTROYS Letitia James' case against Trump:
— Charlie Kirk (@charliekirk11) January 12, 2024
“Every single real estate developer everywhere on Earth does this…Who lost money? Nobody! If you’re gonna sue this case and win, you gotta sue every real estate developer… pic.twitter.com/OM8Gq7s4iG
You can follow Sterling on X/Twitter here.
- Article Source:
DC Enquirer
- Photo: Photo by Alex Wong/Getty Images / Getty Images
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