As a young man Carey left the Gilman School to go to the Pomfret School in Connecticut, then attended Princeton University and the University of Pennsylvania. He served in the Air Force for two years. He then worked at his stepfather's car dealership to repay his college expenses. He learned about sale lease back financing at the dealership. He then moved to New York City. Carey resided in New York City and Rensselaerville, New York. In 1988, Carey started the W.P. Carey Foundation. In 1999, he served as the Executive in Residence at the Harvard Business School.