Housing cannot be fixed in the country, CEO warns
Summary
TLDRIn 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
🏠 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.
💼 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.
Mindmap
Keywords
💡Refinancing
💡Mortgage Rate
💡Seller's Market
💡Rental Communities
💡Regulations
💡Affordable Housing
💡Data Centers
💡E-commerce
💡Wealth Transfer
💡Regenerative Health
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.
>>
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