Kyle Bass, the billionaire investor who once took over the real estate market, has revealed in an interview the three states in which he is purchasing real estate.
Texas, Florida and Tennessee are the ideal places to invest right now, Bass told Clay Fink on The Investor’s Podcast.
Bass’s decision to short the housing market in 2008 raised eyebrows, and many other investors were deeply skeptical of his strategy.
Then the bubble burst and Bass was vindicated, and his story was told in Michael Lewis’ best-selling book, The Big Short, which was later adapted into a film of the same name.
Now, Kyle Bass is considered a market fortune teller, with many investors hanging on his every word and eager to follow his sometimes surprising advice.
Kyle Bass, pictured above, said he is investing in Texas, Florida and Tennessee.
Bass said the Northeast and West Coast are “very high cost, very high tax” regions.
During the talk, Bass told Fink that the West Coast and Northeast have “very high costs, very high taxes, you could say mismanaged jurisdictions.”
As a result of these adverse business conditions, workers and businesses are moving to “lower or no-tax, lower-cost, pro-business jurisdictions,” he said.
“You have to move real companies where there is affordability, where there is expansive activity, where there are natural resources to accommodate those movements,” said the billionaire founder of Hayman Capital.
Bass noted that it is important to be at the forefront of the macro movement of people and companies.
By doing so, an investor can use migration trends to their advantage.
‘I want leverage on that real estate. And I want to use a prudent amount of leverage.
From 2022 to 2023, Florida’s population grew by 365,000, while Texas grew by more than 473,000.
Tennessee’s population increased by 77,513, a considerable number.
Florida, Texas and Tennessee have demonstrated significant population growth.
For Bass, the three states offer a more “pro-business” environment
Bass’s real estate acquisitions are complemented by his huge purchases of carbon credits.
Together, Florida, Texas and Tennessee are bucking the trend affecting states like New York and California, where a significant number of large companies are fleeing in favor of more business-friendly states.
In the last three years alone, an estimated $1 trillion in assets left New York and California.
Bass is not only interested in acquiring real estate in Florida, Tennessee and Texas.
It is also purchasing ‘carbon credits’ and ‘adding them to real estate ownership.’
In 2021, Bass founded Conservation Equity Management, an environmental sustainability private equity firm that specializes in selling federal credits in exchange for conservation services, such as restoring wetlands on owned properties.
It’s a deeply rewarding and lucrative business for Bass.
“To protect myself and build wetlands and rebuild streams and creeks and rivers and charge enormous amounts of money to the people who are impacting those markets for their impacts by selling them real federally regulated credits,” he said.
‘It’s a big business. It is super fun. You put on your snake boots, your waterproof snake boots and you go.