Real estate moguls are so bullish, they’re turning to “the mob” to fund their deals…

Private real estate investment firm The Carlton Group is a major player in the U.S. market. It’s done $125 billion total in deals since 1991.

The Wall Street Journal reports the group is moving into crowdfunding to finance its deals.

[Crowdfunding is an online financing tool. It pools resources from hundreds or thousands of smaller individual investors to make large-scale acquisitions.]

Carlton’s founder, Howard Michaels, is bullish on U.S. real estate. He plans to do $500 million in crowdfunded property deals in the next year.

  But he’s not the only investor bullish on the current real estate market…

PBRG friend and editor of True Wealth, Dr. Steve Sjuggerud, says now is a “crazy-perfect” moment to own a home. He explains why in a recent DailyWealth article:

There are two main reasons why today is one of the best times in history to buy a home…

  1. Home prices had their greatest bust since the Great Depression, and they’ve now recovered and are in an uptrend.
  2. Mortgage rates are around 4%… which is near a record low.


When you combine today’s prices with low mortgage rates, homes are still incredibly affordable.

In my office, we have a computer model of the “fair value” of the typical (median) home in America. Our model has three inputs: the median house price, the current mortgage rate, and the median income.

As you can see below, when the bust happened—when prices and mortgage rates fell—U.S. houses became incredibly cheap relative to fair value. Take a look:

Median Existing House vs. Fair Value Housing

Today, home prices are still $52,000 away from fair value. They need to rise by 25% to get back to fair value (assuming the other two factors don’t change).

Bottom line: U.S. real estate has boomed since the crash bottomed in 2012. The “once-in-a-lifetime” deals are gone… but there are plenty of good deals still available in markets across the U.S. This may be your last chance to invest in real estate with decent prices and interest rates near all-time lows.