In this episode of In Search of Excellence, Randall Kaplan sits down with Rick Caruso,the billionaire real estate developer and former Los Angeles Mayoral candidate who revolutionized the retail industry. From the iconic Grove to the Rosewood Miramar Beach, Caruso’s properties attract more visitors annually than Disneyland. But his journey wasn't a straight line to success. Rick opens up about his father’s legal troubles and prison time, the power of resilience, and why he believes "shit work" is essential for young entrepreneurs. We also dive deep into his controversial but effective views on solving homelessness in Los Angeles and the specific business strategies that allow his properties to outperform the national average by 3x.

In This Episode, We Discuss:

The Power of Resilience: Rick shares the emotional story of his father’s indictment and imprisonment, and how watching his father rebuild his life taught him that failure is a necessary step toward success.

Reinventing Retail: How Rick ignored the "rules of the road" for mall building to create lifestyle destinations like The Grove and The Palisades Village that prioritize the "guest experience" over square footage.

Solving Homelessness: Rick critiques the current spending on homelessness in LA and outlines his strategy: funding scalable organizations with proven metrics rather than wasting billions on government-run housing.

Real Estate Masterclass: From his first duplex on Midvale to leveraging parking lots for airport expansion deals, Rick breaks down the creative financing and"cold calling" tactics that built his empire.

Community First: Why Rick personally gives his cell phone number to local residents when building a new project and how listening to the community is his secret weapon for getting difficult entitlements approved.

Timestamps:

00:00 -Intro: Why doesn't a billionaire solve homelessness?

01:42 -Rick’s family roots & the rubber band on his money clip

03:59 -Dealing with his father’s legal trouble and prison sentence

07:23 -The "Dollar Rent A Car" comeback story

10:49 -Rick’s plan to fix the homeless crisis in LA

14:40 -Why you need to do the "shit work" to succeed

17:37 -Is college necessary today? (USC & Marshall School)

22:34 -Rick’s first real estate deal: The Midvale Duplex

24:05 -The "Parking Lot Strategy" and 100% financing

31:43 -The vision behind The Grove & the famous trolley

35:39 -The art of Cold Calling & Networking

38:17 -Why Caruso properties earn 3x the national average

41:34 -Building the Rosewood Miramar Beach & defying NIMBYs

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About the Guest

Rick Caruso is the Founder and Executive Chairman of Caruso, one of the largest and most admired privately held real estate and hospitality companies in the United States. A visionary developer, Rick is known for creating community-centric destinations like The Grove, The Americana at Brand, and Palisades Village that have redefined the retail experience. He served as the President of the Los Angeles Police Commission and the President of the USC Board of Trustees, and in 2022, he ran for Mayor of Los Angeles.

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