Housing cannot be fixed in the country, CEO warns

Summary

In this interview, CEO of Cardon Capital discusses the current real estate market, noting a surge in refinancing home loans and a drop in mortgage rates. He predicts a continued seller's market until interest rates fall below 4%. The CEO advocates for rental properties as a wise investment, especially in states with business-friendly policies. He also touches on the importance of financial literacy, wealth creation, and the potential of industries like e-commerce, health, and regenerative health for future investment.

Takeaways

• 📈 Applications to refinance a home loan surged 35% last week and are up 118% compared to the same week a year ago.
• 🏠 The 30-year mortgage rate has dropped for the second week in a row to 6.54%, marking the lowest level in a year.
• 🔍 Upcoming July housing data, including housing starts and building permits, will be released on Friday.
• 💸 The White House has announced $100 million in grants for state and local governments to boost the construction of new housing.
• 🔑 There is a current 'seller's market' in real estate, with a gap between buyers and sellers that won't close until interest rates drop below 4%.
• 📉 Despite interest rates spiking above 7%, home prices have not yet come down to make homes more affordable for buyers.
• 🏢 The CEO of Cardon Capital suggests investing in rental and apartment communities due to the current market conditions.
• 💭 The discussion anticipates a potential 'flight' from high-tax states to places like Florida, Texas, and Nashville if certain political changes occur.
• 💼 The CEO emphasizes the importance of financial literacy and wealth creation education, suggesting that such knowledge is not widely taught.
• 🌐 The conversation points to opportunities in e-commerce, consulting, the cosmetic industry, and regenerative health as areas for potential investment and business growth.
• 🏥 There is a specific interest in the healthcare sector, particularly in anti-aging and regenerative health technologies.

Q & A

What was the recent trend in home loan refinancing applications?

Applications to refinance a home loan surged by 35% last week compared to the week prior and are up 118% compared to the same week a year ago.

What is the current 30-year mortgage rate and how does it compare to the previous weeks?

The 30-year mortgage rate is currently at 6.54%, which is down for the second week in a row to the lowest level in a year.

What upcoming housing data is expected and when will it be released?

Housing starts and building permits data for July is expected to be released on Friday.

What is the White House's recent initiative to boost new housing construction?

The White House announced $100 million in grants for state and local governments to boost the construction of new housing.

What is the current stance of the CEO of Cardon Capital on the real estate market?

The CEO believes there is a seller's market and a buyers' gap, suggesting that until interest rates breach 4% and go back below 4%, the necessary volume to unlock the supply/demand formula is not expected.

What type of real estate investment is the CEO of Cardon Capital currently advocating for?

The CEO is advocating for rental apartment communities as investment properties, citing the current interest rates and housing market conditions.

What are the CEO's views on the impact of potential policies under a Kamala Harris administration on property owners?

The CEO expects more regulations, higher taxes, and potential penalties for property owners under a Kamala Harris administration.

How does the CEO of Cardon Capital foresee the real estate market changing if Donald Trump were to win an election?

The CEO predicts that a Donald Trump win would lead to loosened regulations, lower taxes, and more predictability for property owners, which would benefit the real estate market.

What is the CEO's perspective on the current state of affordable housing in major U.S. cities?

The CEO states that there is no such thing as affordable housing in the country, and housing in major cities like San Francisco, New York, and Chicago has become less affordable.

What upcoming events is the CEO of Cardon Capital hosting and what are their focuses?

The CEO is hosting the 10X Real Estate Summit on October 15 in Miami and a Wealth Conference on October 9 and 10, focusing on wealth transfer, financial literacy, and opportunities for wealth creation.

What advice does the CEO have for individuals looking to generate additional income or invest in new business opportunities?

The CEO suggests looking into e-commerce, consulting, the cosmetic business, the health industry, and considering buying established businesses with no money out of pocket as potential opportunities.

Outlines

00:00

🏠 Housing Market Insights and Real Estate Outlook

Maria discusses the surge in home loan refinancing applications, which increased by 35% last week and by 118% compared to the same week last year. The 30-year mortgage rate has dropped for the second week in a row to 6.54%, still high but a positive sign. The conversation shifts to upcoming housing data releases and the White House's announcement of $100 million in grants for state and local governments to boost new housing construction. The CEO of Cardon Capital, an expert in real estate property management, joins Maria to share his insights on the housing market. He predicts that until interest rates fall below 4%, there will be a continued gap between buyers and sellers, and home prices will not drop significantly. He advocates for investment in rental apartment communities, especially in states with favorable property owner policies, and discusses the impact of potential political changes on the real estate market.

05:02

💼 Empowering Financial Literacy and Business Opportunities

The second paragraph focuses on the importance of financial literacy and wealth creation. The guest, Grant, shares his rags-to-riches story and emphasizes the need to educate Americans on financial literacy, which he believes has been lacking. He discusses his involvement in organizing conferences to learn from successful individuals and his focus on transferring wealth to the next generation. Grant also touches on the opportunities in e-commerce, consulting, the cosmetic industry, and the health industry, suggesting that these sectors offer numerous chances for individuals to generate additional income. He highlights his own investment in a health company that has seen significant growth, emphasizing the potential in the health and wellness sector, particularly in combating aging and promoting longevity.

Keywords

💡Refinancing

Refinancing refers to the process of paying off an existing loan and replacing it with a new one, typically to achieve lower interest rates or better terms. In the context of the video, applications to refinance home loans surged 35% last week, indicating that many homeowners are seeking to capitalize on lower mortgage rates to reduce their monthly payments or extract equity from their homes.

💡Mortgage Rate

A mortgage rate is the interest rate charged on a mortgage loan. It's a critical factor in determining the cost of borrowing money to purchase a home. The video discusses the 30-year mortgage rate dropping for the second week in a row to 6.54%, which is significant for potential homebuyers as it affects affordability and the overall attractiveness of entering the housing market.

💡Seller's Market

A seller's market is a condition in real estate where demand for properties exceeds supply, leading to higher prices and favoring sellers. The transcript mentions a 'seller's, buyers gap,' suggesting that until interest rates fall below 4%, the market dynamics will not shift to encourage more sales and make housing more affordable.

💡Rental Communities

Rental communities refer to residential properties managed as rental units, often in multi-unit buildings or complexes. The CEO in the video advocates for investment in rental apartment communities, positing that they are a strong investment option due to the current housing market dynamics and the potential for higher demand for rentals as home ownership remains out of reach for many.

💡Regulations

Regulations are rules or directives made and maintained by a regulatory authority to control an industry or sector. The discussion in the video touches on the impact of regulations on property owners, suggesting that in 'blue states' with heavy regulations, property owners face more challenges, while 'red states' like Florida or Texas are more protective of property owners' interests.

💡Affordable Housing

Affordable housing refers to housing that is affordable to those with low to moderate incomes, often with subsidies or incentives to make it accessible. The video script highlights the lack of affordable housing in major cities, with the housing gap widening due to high mortgage rates and rents, suggesting that the concept of affordable housing is becoming increasingly elusive.

💡Data Centers

Data centers are facilities used to house servers, storage systems, and networking equipment for the purpose of storing, processing, and distributing data. The CEO mentions investing in data centers due to the increasing demand for data storage and processing, driven by advancements in AI and biotech, making them a strategic investment in the digital age.

💡E-commerce

E-commerce refers to the buying and selling of goods or services using the internet, and the transfer of money and data to execute these transactions. The video script suggests e-commerce as a viable business opportunity with low entry costs, allowing individuals to generate income by leveraging online platforms to sell products or services.

💡Wealth Transfer

Wealth transfer is the process of passing on assets from one generation to another. The CEO discusses his focus on transferring wealth to the next generation and educating Americans about financial literacy, indicating a broader theme of intergenerational economic stability and the importance of financial education.

💡Regenerative Health

Regenerative health refers to the field of medicine focused on the restoration and regeneration of tissues and organs to improve or maintain overall health. The video mentions the CEO's interest in regenerative health as a business opportunity, reflecting a growing trend in healthcare that emphasizes healing and longevity.

Highlights

Applications to refinance a home loan surged 35% last week compared to the previous week.

Refinance applications are up 118% compared to the same week a year ago.

The 30-year mortgage rate dropped for the second week in a row to 6.54%, the lowest level in a year.

Housing starts and building permits data for July will be released on Friday.

The White House announced $100 million in grants for state and local governments to boost new housing construction.

There is a seller's market with a gap that won't close until interest rates fall below 4%.

The CEO of Cardon Capital suggests sellers will reduce prices when interest rates come down.

The CEO is pro-rental and apartment communities for investment properties due to current market conditions.

Expectations for elevated rent levels are tied to the upcoming CPI release.

The CEO anticipates policies from Kamala Harris to include more regulations, higher taxes, and penalties for property owners.

Florida and Texas are seen as potential beneficiaries of a Harris win due to their property owner protections.

A Donald Trump win is expected to benefit property owners nationwide through deregulation and tax cuts.

Data centers are areas of interest for investment due to the growing demand for A.I. and biotech.

The CEO argues that housing in the U.S. is not fixable and has become less affordable in major cities.

The CEO predicts that if Donald Trump is elected, interest rates could drop to 2%, stimulating the housing market.

The CEO is hosting conferences focusing on wealth transfer and financial literacy.

The importance of financial education and wealth creation is emphasized, especially what is not taught in schools.

Opportunities in e-commerce, consulting, cosmetic, and health industries are highlighted as potential investments.

Regenerative health and combating the aging process are seen as significant opportunities in the health industry.

Transcripts

MARIA: WELCOME BACK.

APPLICATIONS TO HE REFINANCE A

HOME LOAN SURGING 35% LAST WEEK

COMPARED TO A WEEK PRIOR.

THAT'S UP 118% COMPARED TO THE

SAME WEEK A YEAR AGO.

THE 30 YEAR MORTGAGE RATE DOWN

FOR THE SECOND WEEK IN A ROW TO

THE LOWEST LEVEL IN YEAR, NOW AT

6.54%.

STILL HIGH RELATIVELY SPEAKING.

WE'RE LOOKING AHEAD TO THE JULY

HOUSING DATA THIS WEEK, HOUSING

STARTS AND BUILDING PERMITS OUT

ON FRIDAY.

THE WHITE HOUSE ANNOUNCED

$100 MILLION HAD IN GRANTS FOR

STATE AND LOCAL GOVERNMENTS TO

BOOST CONSTRUCTION OF NEW

HOUSING.

LET'S TALK BUSINESS RIGHT NOW,

JOINING ME IS THE CEO CARDON

CAPITAL, THEY ACQUIRE AND MANAGE

REAL ESTATE PROPERTIES.

GREAT TO SEE YOU.

WELCOME TO THE PROGRAM.

>> GREAT TO SEE YOU.

MARIA: I WANT TO GET YOUR TAKE

ON HOUSING AND REAL ESTATE.

I KNOW YOU INVESTED IN DATA

CENTERS.

GIVE US YOUR TAKE ON THE REAL

ESTATEOUT OUTLOOK TODAY.

>> WE STILL HAVE A SELLER'S,

BUYERS, GAP, MARIA.

UNTIL INTEREST RATES BREACH 4%,

GO BACK TO BELOW 4%, YOU'RE NOT

GOING TO SEE THE VOLUME

NECESSARY TO UNLOCK THE

SUPPLY/DEMAND FORMULA.

WHICH MEANS BASICALLY WHEN RATES

COME DOWN, SELLERS WILL FINALLY

REDUCE PRICES.

THAT'S NOT HAPPENING YET.

EVEN DESPITE INTEREST RATES

SPIKING ABOVE 7%.

WE STILL HAVE NOT SEEN THE PRICE

ON HOMES COME DOWN AND BECOME

AFFORDABLE ENOUGH FOR PEOPLE TO

ACTUALLY BUY A HOME OR CALL HE

QUALIFYFOR A HOME INSTEAD OF RE.

THAT'S WHY I'M PRO RENTAL

APARTMENT COMMUNITIES FOR

INVESTMENT PROPERTIES.

MARIA: WE'RE FOCUSED ON RENT

TODAY WHEN WE WITH GET THE CPI

OUT.

RENT STAYED ELEVATED.

WHAT KIND OF POLICIES DO YOU

WANT TO SEE AS A BUSINESS NAN

THE COMING YEAR?

WE'VE BEEN TALKING ABOUT

DIFFERENCES OF DONALD TRUMP

VERSUS KAMALA HARRIS.

WE'RE WAITING ON SOME

ARTICULATION AND COMMUNICATION

OF WHAT HER POLICIES ARE.

WE DON'T KNOW YET.

ALL WE KNOW IS WHAT SHE'S DONE

BE THEY THE BIDEN, HARRIS

ADMINISTRATION, IT'S BEEN HIGHER

TAXES AND A WHOLE LOT OF

SPENDING.

>> ALL WE KNOW IS SHE WILL

CONTINUE TO DO WHAT SHE'S DONE

HER ENTIRE CAREER WHICH IS MORE

REGULATIONS, HIGHER TAXES, AND

ALLOW PROPERTY OWNERS TO BE

PENALIZED FOR OWNING PROPERTY

AND THOSE THAT USE THE PROPERTY

CONTINUE TO HAVE MORE AND MORE

FLEXIBILITY WITH WHETHER THEY

PAY RENT OR NOT.

THE THINGS THAT PEOPLE SHOULD BE

DOING RIGHT NOW, I BELIEVE

APARTMENT COMMUNITIES AROUND

AMERICA, THE SINGLE BEST

INVESTMENT GOING FORWARD FOR THE

NEXT 10, 20 AND 30 YEARS.

THIS IS WHY.

IN BLUE STATES, YOU WANT TO

AVOID THOSE SAYS BECAUSE OF THE

HEAVY REGULATIONS, THE

UNPREDICTABILITY OF TAXES BEING

INCREASED.

OKAY.

LIKE OVERNIGHT.

MARIA: YES.

>> AND THE RENTERS HAVING MORE

BASICALLY MORE POWER THAN THE

PROPERTY OWNER.

IF YOU GO TO FLORIDA OR TEXAS,

THOSE ARE GOING TO BE

BENEFICIARIES OF A HARRIS WIN IF

SHE WINS, THEY WILL BE MASSIVE E

BENEFICIARIES.

THEY PROTECT PROPERTY OWNER.

IF DONALD TRUMP WINS, OKAY, IT

WILL BE A BENEFICIARY, EVERYBODY

THAT OWNS PROPERTY AROUND THE

COUNTRY WILL BENEFIT BECAUSE

HE'LL LOOSEN REGULATIONS, LOWER

TAXES AND PUT PREDICTABILITY IN

THERE FOR PROPERTY OWNERS.

MARIA: I THINK YOU MAKE A GREAT

POINT I THINK IF SHE WINS THERE

WILL BE A MASSIVE FLIGHT OUT OF

HIGH TAX STATES, THEY'LL BE

GOING TO FLORIDA, TEXAS,

NASHVILLE, PLACES LIKE THAT.

WHERE ELSE ARE YOU ALLOCATED

CAPITAL RIGHT NOW.

I SAW YOU'RE INTERESTED IN DATA

CENTERS.

I KNOW WE DON'T HAVE THE AMOUNT

OF CAPACITY WE NEED GIVEN

EVERYTHING THAT'S GOING ON WITH

A.I. AND BIOTECH AND THE NEED

FOR MORE ENERGY.

>> YEAH.

LOOK, ANYWHERE WHERE HOUSING OR

STORAGE IS AFFORDABLE IS GOING

TO CONTINUE TO WIN.

A.I. CANNOT REPLACE WHERE PEOPLE

LIVE OR WHERE DATA IS STORED.

SO WE'RE LOOKING AT DATA CENTERS

AROUND THE COUNTRY.

THIS WOULD BE A MASSIVE

EXPANSION BECAUSE OF A.I. AND

THE NEEDS AND DEMAND FOR MORE

ELECTRICITY.

THESE ARE BASICALLY EMPTY BOXES

THAT SUPPORT CHILLERS AND

ELECTRICITY.

BUT HOUSING, HOUSING CANNOT BE

FIXED IN THIS COUNTRY NO MATTER

WHAT ANYONE DOES.

THERE'S NO SUCH THING AS

AFFORDABLE HOUSING.

EVERY MAJOR CITY, SAN FRANCISCO,

NEW YORK, CHICAGO, ALL THESE

CITIES THAT TALK ABOUT

AFFORDABLE HOUSING, THE HOUSING

HAS BECOME LESS AFFORDABLE.

THE TOP 15 MARKETS IN THE

COUNTRY ARE ALL BLUE STATES

WHERE HOUSING, THE HOUSING GAP,

THE MORTGAGE, THE GAP BETWEEN

THE MORTGAGE AND THE RENT IS

DOUBLE TODAY.

AND IT WILL CONTINUE TO GET

WIDER AND WIDER UNTIL INTEREST

RATES GET LOWER.

HOPEFULLY DONALD TRUMP GETS IN

THERE AND A YEAR FROM NOW HE

PREDICT WE'LL SEE A 2% INTEREST

RATES AND WE'LL SEE HOUSING

ROCKING AGAIN IN THIS COUNTRY.

MARIA: WE'LL SEE ABOUT THAT.

LOOK, YOU'RE ALSO A WONDERFUL

INSPIRATIONAL AND MOTIVATIONAL

SPEAKER, GRANT.

I KNOW YOU'RE GOT YOUR 10X REAL

ESTATE SUMMIT COMING UP

OCTOBER 15 IN MIAMI.

YOU'VE GOT A WEALTH CONFERENCE

IN MIAMI OCTOBER 9 AND 10.

WHAT WILL YOU TELL PEOPLE WHO

COME THERE.

TELL US WHAT YOU WANT TO SHARE

WITH THOSE ATTENDING.

>> LOOK, I GREW UP RAISED BY A

SINGLE MOM.

I HAD NOTHING.

I AM THE AMERICAN DREAM.

MY CAREER I SURROUNDED MYSELF

WITH PEOPLE I WANT TO LEARN FROM

SO WE DO CONFERENCES, TWO OR

THREE CONFERENCES A YEAR AND I

BASICALLY BRING IN PEOPLE THAT I

WANT TO LEARN FROM.

RIGHT NOW I'M VERY FOCUSED AT

THIS AGE IN MY LIFE HOW TO

TRANSFER WEALTH ONTO THE NEXT

GENERATION.

HOW TO PREPARE MY TAXES, HOW TO

DO WHAT WEALTHY PEOPLE DO.

UNFORTUNATELY, AMERICA DOES NOT

HAVE ACCESS TO THIS INFORMATION.

I WROTE DONALD TRUMP JUST THREE

WEEKS AGO AND SAID LET'S PROVIDE

AMERICANS WITH REAL FINANCIAL

LITERACY.

THAT HAS NOT BEEN DONE IN THE

COUNTRY SINCE GEORGE BUSH TRIED

TO DO IT IN 2004.

HE WAS PROBABLY THE WRONG

PERSONALITY TO DO THAT.

AMERICA NEEDS TO BE EDUCATED

ABOUT WEALTH CREATION, NOT JUST

THE MIDDLE CLASS AND NOT JUST

THE AMERICAN DREAM AND A NOT

JUST BUYING A HOME.

BUT WHAT ARE THE WEALTHY DOING

THAT IS NOT BEING TAUGHT IN

SCHOOLS AND COLLEGES.

MARIA: I TOTALLY AGREE WITH

THAT.

>> THAT'S WHAT WE'RE

DISCUSSING.

MARIA: YOU'RE ABSOLUTELY RIGHT,

GRANT.

FOR ME, IT STARTED AT HOME.

VERY BASIC IDEAS OF SAVING YOUR

MONEY, ENSURING THAT YOU SAVE

FIRST WAS SORT OF A FUNDAMENTAL

IN MY HOUSEHOLD BUT FOR ME IT

STARTED WITH MY MOTHER.

I DON'T KNOW THAT THAT'S GOING

ON ENOUGH.

IF YOU'RE NOT GETTING IT AT

HOME, I DON'T THINK YOU'RE

GETTING IT AT SCHOOL EITHER.

>> NO, DEFINITELY NOT.

PEOPLE ARE USING CREDIT CARDS,

WE HAVE THE HIGHEST CREDIT CARD

DENT IN THE HISTORY OF PLANET

EARTH AND THE HIGHEST INTEREST

RATES IN HISTORY, YET PEOPLE

CONTINUE TO USE THOSE AS A

SOLUTION TO PAY FOR THINGS WHEN

THEY SHOULD LEARN HOW TO PRODUCE

MORE INCOME FOR THEMSELVES WHICH

BY THE WAY, THERE'S ENDLESS

OPPORTUNITIES, MORE

OPPORTUNITIES TODAY TO PRODUCE

EXTRA REVENUE THAN THERE EVER

HAS BEEN IN HISTORY.

MARIA: LIKE WHAT?

GIVE US SOME IDEAS.

>> E-COMMERCE, E-COMMERCE IS A

BUSINESS I'M IN TODAY THAT I

WASN'T IN SIX OR SEVEN YEARS

AGO.

IT COSTS NOTHING TO GET INTO IT.

THE CONSULTING BUSINESS,

COSMETIC BUSINESS, HEALTH

INDUSTRY.

WE BOUGHT A HEALTH COMPANY

ALTERNATIVE HEALTH JUST YOU WERE

ASKING ABOUT OTHER THINGS TO

INVEST IN, IT'S NOT GOING TO GO

AWAY.

EVERYTHING TO DO WITH COSMETICS,

REGENERATIVE HEALTH, WE BOUGHT A

COMPANY FOR A MILLION DOLLARS ON

A NOTE TWO YEARS AGO, IT WILL DO

$14 BILLION A MONTH, WE HAVE 160

YOU THOUSAND CUSTOMERS ALREADY

AND IT BASICALLY COST US NOTHING

TO BUY IT EXCEPT OUR ABILITY TO

BE ABLE TO RUN THE COMPANY.

THOSE ARE ALL OVER THE PLACE.

WE HAVE BACK.

BANKRUPTCIES SOME OF THEHIGHEST.

STARTING A NEW BUSINESS, THEY

CAN ACTUALLY BUY A BUSINESS

WHERE THE PERSON'S MAYBE TIRED,

THE OWNER OF'S TIRED FROM THE

PANDEMIC, AND TIRED FROM THE BS

OF WALL STREET, OF WASHINGTON,

THE POLITICS, HE CAN TAKE OVER A

BRAND THAT'S BEEN THERE 10, 15,

20 YEARS WITH NO MONEY OUT OF

THE POCKET.

MARIA: THE REGENERATIVE HEALTH

IDEA IS AN IMPORTANT ONE.

WE TALK ABOUT LONGEVITY ON THIS

PROGRAM, GETTING AHEAD OF

DISEASE.

IS THAT A WHAT YOU'RE INTERESTED

IN, IN TERMS OF LONGEVITY AND

GETTING AHEAD OF DISEASE OR IS

IT THE MARRIAGE OF HEALTHCARE

AND A TECHNOLOGY, GRANT?

WHERE SPECIFICALLY ARE YOUR

INTERESTS IN HEALTHCARE?

>> WELL, AS A BUSINESSMAN, EVEN

MORE SIMPLY, JUST HEY, HOW DO I

LOOK GOOD?

YOU KNOW, LIKE PEOPLE -- WE WANT

TO TALK ABOUT SOLVING ALL THESE

PROBLEMS BUT THE REALITY IS

PEOPLE WAKE UP IN THE MORNING,

LOOK IN THE MIRROR AND SAY HOW

CAN I LOOK GOOD, HOW CAN I LOOK

BETTER, I'M AGING AND IF WE CAN

FIGHT THAT AGING GAP, THAT IS A

TREMENDOUS PHENOMENAL

OPPORTUNITY.

MARIA, YOU NEVER AGE.

YOU ALWAYS LOOK GOOD.

YOU PROBABLY DON'T HAVE THIS

CONCERN BUT MOST AMERICANS LIKE

MYSELF ARE CONCERNED ABOUT THE

AGING PROCESS AND HOW DO I FEEL

GOOD, STAY SHARP AND CONTINUE TO

HAVE NONE LIFE.

MARIA: ABSOLUTELY.

GRANT, GREAT TO SEE YOU THIS

MORNING.

THANKS VERY MUCH.

>>