Real Estate Mogul Jeff Greene Made $800 Million on Shorting the Housing Bubble – Reveals John Paulson’s Inspiration and Wealth Protection Strategies

Real estate mogul Jeff Greene, who made $800 million by shorting the last housing bubble, expects the US economy to slump and home prices to drop. He recently shared his winning bet and revealed his preparation for another downturn in an interview with Insider.
Greene, who had already weathered a severe crash by the early 2000s, sought the advice of John Paulson, his longtime friend, on how to hedge his investments amid growing concern. As a result, he stumbled upon a perfect opportunity in credit-default swaps, which he had not considered earlier. The chance to bet against securities priced as investment-grade when a tidal wave of foreclosures was headed their way was too good to let go. This move helped him personally make an estimated $800 million from the trade.
However, today, he is not buying credit-default swaps, as they’re fairly priced and the market is efficient. Therefore, instead of taking any big risks, he is conserving cash, borrowing less, and avoiding all leveraged deals. He expects a tough period for commercial real estate due to increasing debt costs, downward pressure on asset prices, tighter credit, and longer-term factors such as artificial intelligence and remote working. Hence, his only hedge is being careful and ensuring that he’s not making any new deals, maintaining liquidity, and completing his ongoing project.
As he suggested, maintaining cash flow, avoiding big interest payments, and being careful through smarter investment choices is key to protecting one’s wealth in the face of market volatility.