Lets discuss the story that BlackRock is purchasing entire neighborhoods for 20-50% over asking, funded by the federal reserve, and using your tax dollars to buy real estate – Enjoy! Add me on Instagram: GPStephan
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Here are my thoughts on the current state of the housing market, housing inventory, and the future of the real estate market in 2021.
So, basically…here’s what’s actually going on.
It’s understandable that people are ANGRY, and it’s easy to blame a faceless, nameless wall street corporation as the root cause…but, truth be told…you want to know who’s driving up the housing prices? It’s literally EVERYONE looking to buy a house, incentive to own real estate because interest rates are really, really cheap. That’s it.
Think about it RATIONALLY…for a giant company like BlackRock, taking the time to compete with 20 offers in random residential neighborhoods across the country would be logistical nightmare. For them, it DOESN’T MAKE SENSE, and in order to make a profit – they need to operate within the economy of scale, and have the infrastructure already setup and running in order to make offers, keep properties leased, and make repairs. They aren’t sending handymen out from city to city fixing leaky sinks…
Instead, institutional investors are WAY more likely to DEVELOP THEIR OWN subdivisions IN SCALE, PURPOSELY BUILT to be rented out as a long term investment. This way, they keep the profit margins to themselves, they pay significantly less than it would cost to build each home individually across the US, and they can maintain quality control from start to finish. If anything, they’re HELPING add more inventory to the market, and taken AWAY the burden of a housing shortage that’s plaguing the entire country.
The Urban Institute also argued that “there really isn’t any evidence in our research that institutional investors led to higher rents or greater eviction rates for our sample of counties tracked through the recovery.” meaning…institutional buyers are NOT the ones responsible for the current state of the housing market.
I would bet that, instead…it’s every day, ordinary home buyers who are paying over asking because they want to lock in a rate, knowing that – historically – real estate does well if inflation begins to increase.
ALL SOURCES:
Fundrise Buying The Neighborhood For $32 Million Dollars:
https://fundrise.com/investor-update/518/view
Financial Samurai Article:
If You Can’t Beat Institutional Real Estate Investors, Join Them
Investor Sales:
Institutional investors are stiff competition for homebuyers
2018 & 2019 Housing Report:
https://www.theatlantic.com/technology/archive/2019/02/single-family-landlords-wall-street/582394/
The Impact Of Single Family Home Buying:
https://ideas.repec.org/a/gam/jsoctx/v8y2018i4p93-d171162.html
CoreLogic Survey:
Federal Reserve Survey:
Redfin On Cash Buyers:
24% of Homes Sold This Year Were Bought With All Cash, the Smallest Share in 13 Years
Institutional Buyers:
BlackRock on Federal Reserve:
https://www.reuters.com/article/uk-usa-fed-blackrock/blackrock-conflicts-managed-extremely-carefully-feds-powell-says-idUKKCN24U38E?edition-redirect=in
New Housing Stats:
https://fred.stlouisfed.org/series/RHORUSQ156N
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*Some of the links and other products that appear on this video are from companies which Graham Stephan will earn an affiliate commission or referral bonus. Graham Stephan is part of an affiliate network and receives compensation for sending traffic to partner sites. The content in this video is accurate as of the posting date. Some of the offers mentioned may no longer be available. This is not investment advice. Public Offer valid for U.S. residents 18+ and subject to account approval. There may be other fees associated with trading. See Public.com/disclosures/
When he switches at 4:30 his looks actually change. Looks like a different person when he says it like that.
Strange real estate market still climbing in my area. Living in Bay Area Cali.
MORE FAKE NEWS. WHAT A BUNCH OF LIERS.
OK so blackrock isn’t having a huge impact, but there is still lots of investors with tons of money bidding up housing prices and making it difficult for regular Americans to afford homes
Blackrock isn’t the only one. There’s REITs and out of the country buyers… So basically everyone except the people who actually live and want to live in the homes themselves.
I totally agree with you also most of the “facts” here talked about renting, like everyone says “buy a duplex to rent” but we are talking about single families houses so obviously no one is buying them to rent them out but there is many investor flipping them and his information is kind of misleading
@Tatan I work with a LOT of small investors who only buy one family homes. We have very few legal two families in my area. And I’m on Long Island, so we have a LOT of houses.
@pacer547 to flip them or rent them?
@Tatan to rent. I’ve had a couple of flippers but in my area flippers are mostly daydreamers.
Nice joke at the end 😂😂😂
Anyone else see the Fundrise Ad in this video?
So the real story here is the mainstream media is pushing fake news to anger the masses and create further division in the world that could potentially spark class warfare as massive levels of inflation are looming on the horizon.
It was the Blackrock joke at the end that turned the like button blue for me.
I live in Conroe, Texas. The housing market is crazy here. Home and renting pricing have skyrocketed. In this area, first it was the Woodlands, then Conroe, now is Magnolia. Too many people are moving here and each home can sell fast with multiple offers.
Solid research! Made me give you my first like! 😉
You can sum up this video real quick. “Cash is trash and the investors are putting it into assets that hold the best value… Land and real-estate.” When the government prints wallstreet knows to put it in assets.
Nice video! I was able to build a big income stream during the covid-19 pandemic investing with a professional broker, Mrs Lauranetta Thomas.
You invest with Mrs Lauranetta too? wow that woman has been a blessing to me and my family.
David Fried You can reach her through telegrm
David Fried With the username investwithLauranetta.
I love Graham’s rant videos, always have a lot of information. Cool video.
Very good Amazing Awesome video! Rational thinking I LOVE IT!! Terrific
liked the video
Thank you so much for clearing this up. Excellent research and clarification of facts!
you are arguing about this one place, but the news coming out every day shows a different set of facts
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I wonder if the renters in that “Planned Rental Subdivision” have all been paying their rent over the last 18 months??
Lumber prices are falling out of the sky
That WSJ story is old. But Slate ran a story recently explaining that they aren’t buying all the houses, just the starter houses. That’s the real story… it’s impacting the people that need a foothold most.
Can you inveat into my real estate license?
I feel like the title of the video is a little different than the content lol at the 12-minute mark so far 100% of the video is about Blackrock… haven’t heard anything about the housing market going negative yet. Interesting content but misleading, not what I clicked for…
He changed the name to get more clicks
Nice, now explain how interest rates make a difference on how people are paying FULL CASH on 3,4,5,6K homes 30-100K above asking? If interest rates are what drive people to purchase homes, explain full cash offers left and right.
Could you talk about the rising reverse repo rate in a new video and explain whats the implication of it? Cheers!
your wrong and missing the point. Unlike 2008 —–2021 all cash offers, over asking and 20% down and perfect credit is mandatory. OH I FORGOT Location, location, location
If anybody wants to buy my house for 50% over asking let me know….
still cant afford a house anyways.
The puppy did it for me.
Landlord keep prices high and stop the average person being able to afford a house.
You are part of the problem.
I don’t blame you or anything, it’s just the system we live in. Like it or not.
I also appreciate this video
This is exactly what I need as motivation.
I’m surprised you know them too. His method surprises me.
Obviously trading in bitcoin is very volatile and risky to trade that’s the reason most investors trade with a professional broker.
I’m from Australia already working with Mr scarlet Robert . That team is one of a kind. My two friends I referred just last week were able to receive their profits yesterday of about 15k each. Right now I’m jealous
If I had known that bitcoin would increase in price like it is, I could have sold my house and use the money to buy more thenI have been looking for a better way to start trading btc as I’m always busy.
I’m glad you recommended this trading company. How can I reach them?
shut up graham
I know this is completely off topic but can you discuss how New York can fix it’s high rent problem? Would love to hear your opinion on that.
Graham the reason they built the houses as rentals in the first place was because people can’t afford to buy the houses and they knew they could make more money selling them this way to a company like blackrock. This creates a cycle where they will continue building these houses, selling them to a company which will rent them out, and people continue will not ever be able to buy.
Great video Graham! Love the data. According to BlackRock’s 10k they own about $25 Billion of real estate – 0.07% of US Housing Market.
American dreams becoming American poverty. Welcome to Venezuela (American Version)
That joke was the best. I about DIED
You laugh and Black Rock laughs even HARDER
You will own nothing & love it (satire)
Make a video about the feeding frenzy that is buying a used car right now
Stinks of shilling. Everyone can see what is going on and you’re giving the banks and huge investors cover to do it.
0 evidence….. I think not. Profits for them are generational. Motive. They make the data so yeah they can print what they want you to think and know, facts.
Love the sponsor joke! There are entire duplex neighborhoods getting built near me. Multi-family developments are booming. They’re meant to be rentals.
so long winded dude. get to the point faster
Evil GrahamRock is buy property and renting…. how do I buy stock in GrahamRock???? But I can buy BlackRock..
Thank you for all the research and time you put into this video. Your videos are always very educational and I appreciate knowing I can trust the information given
… Cash buying in Florida could be with ill-gotten gains. The laws in Florida don’t let them repossess the house almost no matter what, so it is a popular place for white collar criminals with ‘debts.’ Look up the 1993 article, “Rich Debtors Finding Shelter Under a Populist Florida Law,” and the line from that to the more recent “Couple buys mansion in Seminole County with fraudulent $7.2 million PPP loan, feds say” is obvious.
2008 Financial crises was not helped by those like Blackrock, any bottom on that market represents an opportunity missed by people like Graham because their initial pockets were deeper (capitalism is naturally unstable, slanted so the rich get richer and only remedied to any degree by things like taxes). Loans are practically free these days, it’s stupid, so stupid. And people are getting 30 year fixed rates, so yeah… housing won’t be affordable again for a long-ass time (unless, just maybe, if almost no companies allow continued work from home long term). Nevermind the loans to corps… We needed higher rates two years ago and the fed is only just recently talking about just maaaaybe raising them over a year in the future from now.
Great info!!!
Blackstone recently announced a deal to acquire Home Partners of America Inc., which owns more than 17,000 houses throughout the U.S.
Home Partners buys homes and then rents them out.
graham…. buddie… your missing the obvious… Blind LLC’s… (llc corps owned by other llc’s to limit exposure) qualified for the ppp loans!… their are lots of these and very common and are already used for renting houses in order to limit exposure… its no stretch that many could connect the dots that the ppp loan is merely a newever version of a ninja loan for businesses…. you could pay them down for a year and walk without fraud concerns…. just saying… im putting my observation that the housing market was driven up by ppp’s exclusively… my opinion
I live in Conroe and I didn’t know this
Your parents bought a house when they were in their 20″s at the cost of about a 1-2 years of income. Fast forward 40 years and houses are now 10-20 years of income. Let that sink in for a second.
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Soju with pink lemonade and Gram perfect Californian night
They did it in 2008…this is blind propaganda. Shame on you little man.
I think you’re missing the larger picture that builders & investors (institutional &/or wealthy) are by far & wide creating an increased rental (non-ownership) nation. This perpetual rental/leasing trend spans across markets including computer software, transportation, etc.
You sound like an apologist by excusing, or uncritically accepting, the massive bailouts after the 2008 crash that went to Wall Street rather than Main Street, which left many of the homes at the time empty, & by saying that many of the current single family homes were much needed rental properties, or that institutional investors simply could close faster, rather than looking at the larger picture of this long trend away from ownership feasibility to begin with. And, this trend toward institutional/wealthy buying up of properties to rent/lease trend keeps pushing up rents to insane levels to maximize profit as much as possible.
True “Mom & Pop” owners/”investors” of days old who mainly wanted good tenants & a fair enough return on investment are extremely rare animals any more. From my experience, as a renter, with institutional or wealthy owners over the past decade, it has become all about chasing the highest possible rents they can squeeze from renters.
Hope they bought fire insurance.
Real estate investor who rents houses denies claims of investors/institutions buying properties to rent out and jeopardizing the ability of middle and lower class to buy property… How surprising lol still love your channel Gram but we need more long-term perspective on this not just “last year it wasn’t true”
Small Mom and Pop landlords are still a huge problem. I understand if you want to own a small duplex, but owning multiple houses is what has caused a housing shortage since the beginning of capitalism. We would have enough houses for everyone in America to live if there were no landlords.
Wait. Soooooo I shouldn’t sell my rental?
7:40 “mom and pop investors” is such a misleading term. Most individual investors are not people that have an extra room or a granny unit out back that they rent out to help pay the mortgage they’d have either way. These are people that have already payed off their mortgage or are so confident in their ability to, that they go out and take on another dwelling they have no intent to live in. It’s not like it’s their job, they often hire somebody else to manage the property for them (which makes it even more expensive for renters). It’s functionally identical to corporate investors. They are entities with money, hoarding a finite resource, with the sole intent of upselling to productive members of society that NEED that resource. It’s such a dirty way of making money.
So buy low sell high and when the bottom drops out wait for them all to be bailed out by the working class. To bad a house costs more than GameStop shares.
🔥🔥🔥
Looks like I’m going to live in a van down by the river. What with how expensive houses are going to get.
++++++👍. If you want tin foil hat to be bunk, read the nonsensical, information with charts for “proof”, almost any YouTube precious metal channel.
Conspiracies and false information almost hard to believe but it’s a cult.
So the concern i had was that contractors are building homes with investors in mind. Not an average, family buying a home. That there is more people buying houses and investors, its pretty bad. I want to preface this by saying I live in Arkansas. The rental association is awful here and right now, there is a movement into a rental society where I currently live.
Contigency buys are also down here.
I don’t know about Blackrock but our issues in Arkansas are really real. I wish that this video wasn’t just general. Because, taking all this at face value when we have 50 states when it can’t be the same everywhere, makes it really hard to speak out about issues that happen truly in specific areas. I know that you can’t do that much research for one video, but its frustrating no one is looking into it.
Always getting the information the simpler way in this channel.
I’m sorry but that guy constantly shooting out money is just too much for me 😂🤣😂
We can’t even own games anymore, don’t know why people expect to own real houses 😭
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So where in this video do you talk about how the housing market “went negative”?
Can you tlak about the best ways to invest in real estate right now even with the market plummeting?
Hi Graham! I was wondering if you could explain how some builders for new homes aren’t able to lock in your price? I’m in Texas btw if that makes a difference. I’ve had a couple of friends so far that have decided to go with another builder because their original builder couldn’t lock in their price even though they’ve been to the design center. The price kept rising and they stated they will be able to officially sell and lock it in a later month.
I feel like he needs to watch the episode of the patriot act on this subject
hmm weird.
I heard that Bill Gates is the largest owner (or buyer?) of US farm land.
Correct me if I’m wrong, but all I heard was: it’s ok, Wall Street is not buying my/our luxury homes; they’re only buying up housing for lower-middle class to poorer Americans. The US may not be a renters country for you but it is for millions of America financially forced into a renters country that you also profit from.
Hmm you will own nothing and be happy. Big companies controlling your life
Graham, can you do a video on your opinion of ‘Better Mortgage’? I found the site this morning and it seems very transparent and that makes me feel comfortable.. almost so comfortable I want to go out and buy a house in this wild market.
Thing is this video has in some of those same misleading statistics, just for the opposite argument.
Like at 7:53 that speaks of overall single-family units. Most likely including ones currently lived in and not having been on the market anytime recently. This whole fear of single-home buyouts by institutions is because of conditions going in a not so good direction in recent years. The same article you speak of even says their presence is more pronounced in the very type of homes this video is about and also admits a lot of the housing stock was new and gained after the crisis.
Also, given that these institutions usually have the resources to build homes in new areas this also decreases the likelihood of people building for homes in lower cost areas as what’s left is usually the high cost, close to hand locations.
That was a good joke to end
Say you’re getting sponsored by black rock , without saying you’re getting sponsored by black rock.
Graham “however investors do make up 20% of all low cost housing sales”
Bro, THAT IS THE PROBLEM!
Those low cost homes that need fixed up are what USED to be called “starter homes”. If investors take those off the market and all we’re left with is higher end homes and rentals……those investors basically destroyed the American dream for your average buyer.
Love the “endless stream of money” gif. Also, first time watching: Did Mr. Stephan get his real estate license when he was 7? : D
My home is up 100K in the last year. Absolutely insane time to own a home if you had it 12+ months ago. Prices will not be dropping any time soon.
that was seriously interesting and well put together. very convincing
This put my mind at ease.
Vox is the biggest pile of rubbish there is. All their articles are insanely angled.
How is anyone able to afford a apartment and save up to buy a house… just wondering here single dad making 50k a year 🤔it hasn’t been easy since most of my income goes to rent
I love that he’s comfortable joking like that. X-D
Heyy I live in that big state called Texas
Important note about reporting:
If you don’t know its validity, assume it’s false. It’s fine to entertain the possibility of that information being true, as long as you tell your audience that its validity is at best unknown.
If your going to spew corporate wallstreet propaganda your not worth listening to or watching
I think its hard to tell. Zillow for example doesn’t buy off the MLS. I think they often resell to larger investment companies and probably has a good volume for investors. But you are probably right that the sky isn’t falling because of blackrock.
Graham, can you address the difference between black rock and black stone? Someone was telling me you have it wrong and that it is actually black stone that is doing the alleged scandal buying. Black stone was a company that broke off of black rock. I have no idea and would love your opinion on it.
Love the sense of humor
Bro Black Rock and Vanguard own pretty much everything. They own most companies and they were buying a lot of homes during this time.
Wonderful overdue. Rents too high
What a clown. This guy’s evidence that black rock will play by the rules is literally quotes from the fucking federal reserve. The most untrustworthy non government entity in the country. He just skims over all the areas of obvious cooperate/government overlap. Hey Graham, historically when large corporations get in bed with the government or even worse the federal reserve, is it to help the American people? And do they usually come out squeaky clean? This dummy trusts people who actively want to destroy the Middle class. Also, I’m sure big business and black rock had nothing to do with the crash right? They definitely didn’t push for loans that they knew would default and financially support politicians who pushed that agenda and then scoop the properties up for pennies on the dollar right? What a corporate shill.