Podcast Summary: In Search of Excellence

Episode: Rick Caruso: Why Billionaire Rick Caruso Gives His Personal Cell to Strangers and Neighbors | E177

Host: Randall Kaplan
Guest: Rick Caruso
Date: December 10, 2025

Episode Overview

In this wide-ranging conversation, real estate visionary Rick Caruso joins Randall Kaplan to discuss resilience, building genuine communities, business success, and Caruso’s personal journey from humble beginnings to shaping Los Angeles’s landscape. Caruso reflects on family influences, learning from failures, the power of second chances, and the critical importance of community engagement—underscored by his practice of sharing his personal cell phone number with neighbors and critics alike. Practical and philosophical throughout, Rick shares actionable lessons on entrepreneurship, public service, and redefining excellence.

Key Discussion Points & Insights

1. Family Background and Early Influences

• Humble Beginnings:
  Caruso’s grandfather was a gardener who immigrated from Italy and worked in Boyle Heights, Los Angeles.

  • Rubber Band Reminder: Caruso uses a rubber band to keep his money, not a money clip.
    • “It reminds me of where I began, where the family began, that we had very humble roots.” (01:42–02:11)

• Early Aspirations:
  At five years old, Caruso told his father he wanted to “own those buildings” overlooking Los Angeles, inspired by weekends riding in his grandfather’s gardening truck.

  • "I want to be a builder, I want to be a developer. I want to own those buildings." (02:45–03:11)

2. Lessons in Resilience: His Father’s Legal Troubles and Comeback

• Father’s Indictment and Resilience:
  Caruso’s father, a successful car dealer, was indicted and spent time in jail.
  Caruso credits his father’s comeback—founding Dollar a Day Rent a Car and selling it for over $70 million—as a masterclass in resilience.
  • “The success comes because you’re willing to stand back up and keep going in spite of failing. You're going to fail multiple times. But every time that you do that, you get stronger, you get smarter, you get better.” (07:33–08:30)
  • "I'm also a believer that more is caught than taught... you really learn more by watching." (08:30–08:50)

3. Second Chances, Law, and Compassion

• On Giving People Second Chances:
  As a proponent of both enforcing laws and compassion, Caruso sees second chances as essential, especially for the homeless.
  • “We need to be a society of laws, and at the same time, we need to be compassionate and we do need to give second chances...I think people can redeem themselves, work hard, come back and do a better job.” (09:08–10:11)

4. Tackling Homelessness: A Critique of Government Inefficiency

• Direct Philanthropy vs. Systemic Change:
  Caruso donates and works hands-on with organizations combating homelessness, criticizing inefficiency in public spending.
  • “The issue isn't how much money can you spend. The issue is, are you spending it the right way?” (11:50–12:09)
  • The city spends up to $900,000 per person to house the homeless—a "ridiculous amount" that "isn't working."
  • Caruso advocates for scaling up effective local organizations with strong metrics and accountability. (13:09–14:51)

5. The Value of Hard Work and “Menial” Jobs

• Advice to Young Adults:
  Caruso believes in paying dues and working hard, whatever the job.
  • “You can't escape hard work. If you want to be successful, you have to go through that cycle. And I went through it. Everybody that's been successful goes through it.” (15:47–16:28)
  • "You're going to look back...and realize everything is about taking a step and building a platform to take the next step." (16:28–17:08)

6. Education—College and Graduate School

• On the Necessity of College:
  Caruso values higher education but doesn’t see it as essential for everyone.

  • “I don't think it's necessary. I think it's a really great option. It's not the right option for everybody. ...Do I think colleges are wonderful? I do. I think they're great, but they're not for everybody.” (18:37–19:00)

• Parental Advice on Graduate School:
  He discourages parents from forcing career or educational paths, advocating for informed encouragement instead.

  • “Younger people should make a decision on their own at the end of the day. And you can always pivot.” (20:44–21:27)

7. Starting in Real Estate: From Duplexes to The Grove

• First Property and Learning by Doing:
  Caruso’s first duplex on Midvale and Massachusetts helped him learn every aspect of property management—painting, gardening, leasing.

  • “It really helped me fashion the company I have today on how you can create value...” (23:52–24:39)

• Creative Financing with Parking Lots:
  Structured deals that required little capital by leasing to his father’s car rental company, leveraging those leases for bank financing.

  • “Basically, I got 100% financing. I didn't have the money. ... It became a great business.” (25:07–26:17)

8. Innovating Retail: Building Community Destinations

• From Burton Place to The Grove:
  Caruso built his first retail center without industry rules holding him back, focusing on outdoor space and amenities.

  • “Sometimes not knowing what you're doing is a real gift because you're not locked into the rules of the road.” (27:12–28:21)

• The Grove's Vision:
  Each project was an evolution—maximizing outdoor and community space, focusing on experience over square footage.

  • “We're in the business of enriching lives. And when you're in the business of enriching lives, you're not building a big box with no windows.” (29:03–29:53)

9. Entrepreneurship: Embracing Uncertainty

• Confidence and Adaptability:
  Caruso advises believing in your ability to figure things out, and quickly pivoting from mistakes.
  • “There is a solution to every problem. ... If you keep working towards finding a solution, you'll figure it out.” (29:33–32:01)

10. The Business Model: Obsession with Customer and Guest Experience

• Secrets to Exceptional Performance:
  The Caruso model focuses relentlessly on guest and tenant satisfaction—all details matter, from safety to music to landscaping.
  • “We are completely focused on the consumer. ... You have to have both [guest experience and customer (retailer) experience]. … When you leave [the Grove], you say ‘that was a great experience’.” (39:17–40:36)

11. Responding to Critics

• Tuning Out Naysayers:
  Caruso ignores architectural critics, focusing instead on what works socially and commercially.
  • “A critic is a critic. I don't spend any time on that.” (40:55–41:37)

12. Community Engagement: The Cell Phone Principle

• Personal Accessibility:
  Caruso gives his personal cell number to community members—including critics—and attends every neighborhood meeting himself.
  • “I've done that since the day I built my first project. ... I need to listen to you. I need to hear what your concerns are.” (43:03–44:39)
  • “We pride ourselves in being a good neighbor from the beginning to the end. We remain a good neighbor in the community.” (44:39)

Notable Quotes & Memorable Moments

• “The issue isn't how much money can you spend. The issue is, are you spending it the right way?”
  — Rick Caruso [11:50]
• “Sometimes not knowing what you're doing is a real gift because you're not locked into the rules of the road.”
  — Rick Caruso [27:12]
• “You can't escape hard work. If you want to be successful, you have to go through that cycle.”
  — Rick Caruso [15:47]
• “There is a solution to every problem. It may not be the solution you want, but there's a solution out there.”
  — Rick Caruso [29:33]
• “We pride ourselves in being a good neighbor from the beginning to the end.”
  — Rick Caruso [44:39]
• “Define your business in a way that gives you permission to do things that your competitors don’t do.”
  — Rick Caruso [34:09]

Timestamps for Key Segments

• The Rubber Band Lesson – 01:42
• Resilience: Father’s Downfall & Comeback – 03:38 to 08:35
• Giving Second Chances/Second Chance Policies – 09:08
• Homelessness and Systemic Solutions – 11:14 to 14:51
• The Value of Hard Work (Advice to Young Adults) – 15:41
• College: Necessary or Not? – 18:08 to 19:00
• Starting Out in Real Estate – 23:08 to 26:20
• Retail Innovation: Breaking the Rules – 27:12 to 29:03
• Entrepreneurship and Learning by Doing – 29:03 to 32:08
• The Grove: Vision and Execution – 32:40 to 36:02
• The Power of Cold Calling & Networking – 36:20 to 38:32
• Three Secrets to Caruso's Business Success – 39:08 to 40:36
• Handling Critics – 40:36 to 41:37
• The Rosewood Miramar & Cell Phone Principle – 42:33 to 44:39

Conclusion

This episode is a masterclass in resilience, humility, community-centered business, and innovative thinking. Rick Caruso’s journey shows that personal accessibility, consistent learning, embracing hard work—even the “menial” parts—and focusing on genuine human experience create lasting value and a powerful legacy. For listeners aspiring to excellence, his example offers both practical guidance and deep inspiration.