Maverick Kyle Bass has divulged his latest real estate conquests, shedding light on where the smart money is flowing these days.
The famed investor, renowned for his audacious bet against the housing market in 2008, is once again lending his advice to Wall Street.
In a sit-down with Clay Fink on The Investor’s Podcast, Bass unveiled his top picks for real estate investments: Texas, Florida and Tennessee.
“You have to move real companies where there’s affordability, where there’s expansive activity, where there are natural resources to accommodate those movements,” Bass said, sending a clear signal to investors seeking lucrative opportunities in the property market.
Bass’s prescient decision to short the real estate market nearly 20 years ago raised eyebrows and drew skepticism from his peers.
However, when the housing bubble inevitably burst, Bass emerged victorious, vindicating his unconventional strategy.
His saga was immortalized in Michael Lewis’ bestselling book “The Big Short,” which was later adapted into a blockbuster film.
During the interview, Bass didn’t mince words when discussing the economic landscape of other regions in the US.
He labeled the West Coast and the Northeast as “very high cost, very high tax, one could say mismanaged jurisdictions.”
Instead, he championed “pro-business, lower cost, lower or no tax jurisdictions,” like Texas, Florida and Tennessee as prime investment destinations.
Emphasizing the importance of staying ahead of migration trends, Bass underscored the necessity of being positioned to exploit the movement of people and businesses.
“I want to be levered to that real estate. And I want to use a prudent amount of leverage,” he said.
Recent demographic data further bolstered Bass’s statements. From 2022 to 2023, Florida — a particular hotspot since 2020 — witnessed a population surge of 365,000, while Texas boasted an increase of more than 473,000 residents. Tennessee also saw substantial growth, with its population swelling by 77,513 residents.
Meanwhile, states like New York and California grapple with an exodus of both individuals and businesses due to unfavorable business conditions. A staggering $1 trillion worth of assets has fled these states in the past three years alone.
But Bass’s ambitions extend beyond traditional real estate acquisitions.
He’s delving into the realm of environmental sustainability through his latest venture, Conservation Equity Management.
The firm specializes in selling federal credits in exchange for conservation services, such as wetland restoration on owned property.
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