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Grant Cardone is a contrarian investor who spends aggressively when the market is declining. He has made real estate deals when the market panicked and doubled down on his ad budget when others were retreating during the Great Recession.
He recently shared four opportunities real estate investors should know. Cardone mentioned President Donald Trump in two of the four opportunities, but he started the X post with a prediction.
“Lower rates are coming.”
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Real estate hasn’t been looking good lately, especially for multifamily and commercial real estate. However, long-term investors may want to keep these opportunities in mind.
The Federal Reserve hasn’t made any rate cuts this year, but the Fed expects two rate cuts by the end of the year. A rate cut may be on the table for June if the economy weakens. The Fed may use interest rate cuts to prop up consumer spending amid tariffs.
However, it’s also possible that the Fed may cut rates due to lower inflation. Inflation has been declining during Trump’s second term. Cheaper energy costs were a key reason why inflation eased to 2.4% growth in March.
Tariffs can change the narrative around inflation, but reduced business in China can keep more oil at home and further reduce energy costs. This scenario can result in lower inflation rates that make it easier to cut rates moving forward. The April core price index reading will offer more clarity on inflation.
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Trump has advocated for tax cuts and issued plenty of them in his first term. However, he’s gotten more aggressive with tax cuts and wants to stop taxing people who earn less than $200,000 per year.
Some of that tax relief will affect real estate investors directly. For instance, Trump wants to reduce the corporate tax rate from 21% to either 20% or 15%. Lower tax rates boost profit margins and can translate into more growth for the real estate industry.
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