'2022 Was The Year The Fed Created The Biggest Renter Boom In America's History': Grant Cardone Shares How Investors Can Make The Most Of This Market
According to Grant Cardone, “with the Fed raising interest rates it has sidelined home buyers, which means prices are going to pull back. If you are an end user, looking to finally enter the housing market now is a great time to buy a house 15%-20% cheaper than it would have been at the beginning of the year.”
That’s transparent and clear advice from one of the brightest and most outspoken minds in the world of real estate. Cardone doesn’t hoard advice, tips or tricks to getting rich. He is a best-selling author and has shared his 10X strategy on several different platforms. Whether you're reading his books or watching his videos, he’s dropping knowledge.
In this instance he has a perspective about decisions made by the fed and its Chairman Jerome Powell, that echo Tesla Inc. founder Elon Musk and National Association of Home Builders (NAHB) President Jerry Howard. Musk believes that a recession is inevitable, and Howard pointed to historical data to claim that housing has led us into and out of every recession.
Cardone shared another gem with Benzinga, stating that “if you are an investor with cash, you are going to be able to scoop up tons of inventory because the end user homeowner who needs a mortgage will be squeezed out of the housing market. They will be unable to buy the house even at a lower price because interest rates doubled.”
It makes sense that Cardone is so bullish on the real estate market. Today’s trends may mirror what happened after 2008, and, looking back, many may be kicking themselves for not buying when they had the chance.
Making real estate especially enticing is the volatility of the stock market. Even the major players have ridden a rollercoaster over the past 18+ months. In June, Amazon.com Inc. split, seeing its stock soar $20 per share over the split price and back down again. Perhaps Jeff Bezos foresaw the volatility ahead of time, and that’s what led him to the Arrived Homes endeavor – allowing people to buy shares of single-family rental properties.
Experts like Jim Cramer are having a difficult time predicting long-term winners and have been changing course regularly. Even the biggest, most powerful names in the stock market are associated with serious risk and require perfect timing.
Perfect timing is something that Cardone says is happening now in the real estate market. “I believe we are entering the BEST real estate market opportunity since 2008.” That might be great news for investors, but what about typical buyers looking to live in their home? It doesn’t look good, according to Cardone. “We will look back and realize that 2022 was the year the Fed created the biggest renter boom in America’s history and their decisions alone was the final death blow of individuals' chance of home ownership.” Powerful sentiment like this indicates that it may be time to invest in real estate, one way or another.
Sure there are options like real estate investment trusts (REITs) that specialize in residential real estate and crowdsourced platforms like Cardone’s own Cardone Capital. But, it seems as though the most advantageous opportunity is as an individual operation. How could you get started? Cardone has you covered.
Cardone shared specific things to target. “You should look for people who, late last year or early this year, were hoping to make a quick flip....and had an adjustable loan. They are waking up without a market to sell into and a payment on their loan that is doubling. Also look for institutions who have already written much of their portfolios down and will bring a lot of product/inventory to the market in the last quarter of this year.”
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