IN THIS EPISODE, YOU’LL LEARN:

• Today’s real estate markets and how they eerily resemble 2008.
• Why multi-family is looked at as the least risky real estate asset. 
• How real estate investors and more importantly, lenders, are navigating the current landscape.
• Why a large majority of Gen Z’ers are living with their parents and how the $68 trillion dollar wealth transfer from baby boomers will affect the real estate market. 
• What indicators Patrick relies on. 
• And much, much more!

TRANSCRIPT

Disclaimer: The transcript that follows has been generated using artificial intelligence. We strive to be as accurate as possible, but minor errors and slightly off-timestamps may be present due to platform differences.

[00:00:00] Trey Lockerbie: My guest today is Patrick Carroll, the founder and CEO of Carroll, which is a multi-billion dollar real estate investment firm. Patrick is a self-made entrepreneur with boundless ambition and has built his empire from scratch. In this episode, we discussed today’s real estate markets and how they eerily resemble 2008.

[00:00:18] Trey Lockerbie: Why multifamily is looked at as the least risky real estate asset, how real estate investors, and more importantly lenders navigate the current landscape, why a large majority of Gen Z’s are living with their parents, and how the 68 trillion wealth transfer from baby boomers will affect the real estate market.

[00:00:34] Trey Lockerbie: Patrick has risen from the school of hard knocks to become the success he is today and is a very impressive, but remarkably humble individual. I hope you enjoy it as much as I did. So here’s my conversation with Patrick Carroll.

[00:00:49] Intro: You are listening to The Investor’s Podcast, where we study the financial markets and read the books that influence self-made billionaires the most. We keep you informed and prepared for the unexpected.

[00:01:09] Trey Lockerbie: Welcome to The Investor’s Podcast I’m your host Trey Lockerbie, and today we are very excited to welcome to the show, Mr. Patrick Carroll.

[00:01:17] Trey Lockerbie: Patrick, welcome to the show.

[00:01:19] Patrick Carroll: Thank you for having me.

[00:01:21] Trey Lockerbie: I am excited to talk to you, there’s a lot going on in the real estate market and I’m looking forward to this.

[00:01:26] Trey Lockerbie: There’s been a lot of talk at the current market, resemblance to 2008. But there are a lot of counterpoints that make an argument for more growth ahead, like the unemployment numbers, disinflation, passive inflow, smaller interest rate hikes, et cetera. However, you seem to be highly confident that a great financial crisis level collapse is on the horizon.

[00:01:47] Trey Lockerbie:  This is what I’ve kind of seen you mentioning on CNBC and elsewhere having invested through the GFC. What similarities are you seeing that’s giving you such conviction?

[00:01:56] Patrick Carroll: During the last large downturn in 08 – 09, it was really caused by the single family home market and mortgages there, and I see that possibly happening here.

[00:02:07] Patrick Carroll: I mean, as property values decline and people become underwater on their mortgages, they’re more inclined to walk away. Same with new loans or adjustable rate loans.

[00:02:27] Patrick Carroll: As those interest payments go up and cost of, basically everything’s gone up, gasoline, food, everything. Again, if there are layoffs, we’ll be forced to give back the keys. I’ll tell you what’s different this time is the fundamentals are still strong. As you said, job growth is still happening. You haven’t seen a major contraction in the economy and my primary business, multi-family housing. We’re still seeing rent growth and occupancies are strong, but you’re seeing a huge increase in interest, expense and debt.

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BOOKS AND RESOURCES

• Carroll Website.

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