Stephen Schwarzman, chairman and CEO of The Blackstone Group L.P. (NYSE:BX) said the private equity firm is betting big on residential real estate during an interview on CNBC’s Squawk in the Street on Monday.

Blackstone Group

During the interview, Schwarzman said, “Blackstone is now the largest owner of individual houses in the United States. According to him, The Blackstone Group L.P. (NYSE:BX) has approximately $3 billion investments in the residential real estate. The private equity firm purchased foreclosed houses, and it is fixing them up.

The Blackstone Group L.P. (NYSE:BX) is renting the houses to people instead of buying and selling them quickly while the housing market is still starting to recover. According to Schwarzman, “It’s a good business for us. It’s a new thing, but it’s also good for America.”

Schwarzman also discussed the Launchpad for Entrepreneurs, the charitable foundation of the private equity that provides funds to students to help them develop a new company. The Blackstone Group (NYSE:BX) started the program in 2010. According to Schwarzman, the firm dedicated $50 million through its foundation to help students learn how to create their own business. He explained that Launchpad for Entrepreneurs is not limited to business students.

The Blackstone Group (NYSE:BX) extended its fourth Launchpad at the University of Central Florida. The private equity firm is providing $1.4 million grant, and he estimated that 60,000 students will benefit from the program, and would likely create 300 new businesses over the next five years.

Schwarzman also commented on the issue on regulations faced by businesses during the interview. He explained that regulations some of the existing regulations are necessary, but some creates difficulty for expanding businesses. He said, “A good idea can still overcome [regulations].” According to him, regulation is an issue that the country needs to confront and deal with if it wants to remain in the top tier of business creators.

In addition, Schwarzman also emphasized that energy independence is a major advantage for the economy of the the United States.  According to him, in his travels everywhere around the world, people’s main topic is about the energy potential of the United States. He said, “If we can create energy in very large amounts at some of the lowest prices in the world, it’s very logical that people from outside the United States are going to start businesses” in the country.

Furthermore, he said, “The number of changes that will occur that are quite positive for the growth of the country is a factor that Americans typically don’t understand or feel as much as non-Americans do looking at us.”