Controlling the border must be part of any immigration reform measure, according to William Isaac, the former chairman of the FDIC.

"One thing that everybody's talking about in immigration reform is trying to seal the border better so we don't have this problem continue to plague us," Isaac told Newsmax TV in an exclusive interview.

"It's highly dangerous if we don't get the borders under better control, considering all the terrorism activity throughout the world."

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Isaac went on to outline other advantages of reforming the nation's immigration policy.

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"We [can] get people on the books, paying taxes and make them a part of the economy," he said.

"They're already here. They're already using a lot of the welfare services, so let's make them truly a part of the economy."

He also cited the importance of skills that immigrants offer the U.S., adding that reform will be less expensive than the alternative.

"It's one of the things that really distinguishes the U.S. from a lot of other countries," he said.

"Japan would be a good example where they have a declining population and an aging population. Immigration is good for the U.S., [it] has been throughout its entire history and will continue to be. We just need to … [get] people here that we need to be here."

His comments on investing led to one asset class: real estate.

"One of the things that looks best is income-producing real estate, particularly rental apartments or commercial real estate," he said.

"I fear we are going to have inflation, perhaps significant inflation, and that's the safest place to put the money, because it produces income," he said.

"If inflation goes up, rents are going to go up, the value of the building's going to go up, and you've hedged yourself well against inflation."

The senior managing director of FTI Consulting doesn’t understand why the Dow Jones Industrial Average has gone from 10,000 to 15,000 and beyond.

"My instincts tell me that this is not a good time to jump in," he said. "We certainly haven't fixed our political system, which is highly dysfunctional. We haven't fixed the economy and job growth is excruciatingly slow," he said.

"We haven't fixed the tax code. We haven't fixed fiscal policy, and so I really am hard pressed to figure out what would cause the market to go up from 10,000 to 15,000 in the last couple of years."

He added that it's driven almost entirely by Federal Reserve monetary policy, keeping interest rates near zero.

"There aren't a lot of alternatives for the money, and so people who are looking for yield are willing to take more risks and they're putting their money in places like farmland and [the] stock market and so forth where they can get a better return and that's the Fed's policy," he said.

"I don't see that the fundamentals of the country have improved significantly to justify that kind of jump in the stock market, so I would be cautious."

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