The Truth About BlackRock’s Plan To Control Real Estate By 2030
Video Transcript
Subscribe To Big Money all right so if you’ve never seen this I just got live footage of the housing market where Black Rock just outbid a single mom and her five [Music] kids when you find yourself at the clerb you got a party like Black Rock now the major question of this video is are major institutions and hedge funds like Black Rock the reason that buying a house is becoming more and more expensive you’ve probably seen the story it’s all over the internet and cable news and has sparked a debate about what’s really going on on one side of the fence people argue that corporations and institutions only own a small fraction of the housing market and there’s far bigger reasons why houses are actually becoming more expensive on the opposite side of the fence though people argue that corporations are absolutely to blame Robert F Kennedy Jr for example says the real reason that housing has outpaced everything else is because three giant corporations Black Rock Vanguard and State Street already own 88% of the stock market and now they’re coming after single family homes in America and he predicts that by 2030 they’ll own something like more than 60% of all the homes and that sounds terrifying but it also makes for an amazing headline that everybody wants to read on the other hand though I just watched a video from my friend Graham Stefan who was supposed to go on Fox news about this very same topic and his opinion is that corporations only own a small percentage and they don’t account for much of the buying of single family homes and he gave some really good compelling data and evidence to support his argument but instead of airing Graham’s episode where he explains all that Fox News decided to cancel and cut him out of it completely due to runtime issues now it’s believed that the real reason they cut him out is because the real reason is not as exciting and doesn’t make for compelling TV when instead we could all collectively be mad at an evil Corporation that’s responsible for all of it but Grahams video inspired me to make this one to do a deeper dive but if you haven’t seen Grahams go check out his channel cuz it’s an awesome video now personally I’ve always been somewhere in the middle I’ve always thought surely corporations must have something to do with the higher costs and you might be thinking Andre don’t call me Shirley but I could never argue with the data that I saw because that same data shows that institutions only own 1 to 2% of housing so they couldn’t be making that much of a difference right right so someone who’s not a real estate agent or an investor I want to get to the bottom of this mostly for myself because it’s something that I’ve been conflicted and confused about especially when it comes to Black Rock so let me share with you what I found and let’s get into it hi my name is Andre J hope you’re doing well come for the finance and stay for Black Rock So rumor has it that by 2030 BlackRock will account for over 90% of all the like buttons that are smashed and we must not let them win so before you leave your opinion on this video please watch it all the way through until the end because just when you think you know where it’s going it’s going to flip and take you on a roller coaster ride but let’s start with just how shocking it is how much we all agree that Wall Street really is to blame to some degree so much so in fact that this happens to be one of the only things that both the left and right actually agree on but are they actually responsible for prices going up let’s take a look at one of the biggest culprits in the world Black Rock there’s a popular conspiracy going around that they control and own the entire world but if that was true their share price probably wouldn’t be down 8% this year and Larry thinkink who’s their CEO probably wouldn’t look like this he just doesn’t look like an evil villain to me unless of course he is the master of disguises come on the resemblance is uncanny I’m sorry now even though it’s true that black rock does control trillions of dollars in assets it’s not their money it’s their clients money and their clients are extremely wealthy like just to get started investing with black rock you need to have at least a minimum of $250,000 but it goes up from there like if you invest $40 million they’ll lower their annual fee to just half a perc and after 50 million it’s negotiable but rumor has it they’ll do it for tree fitting the point is if you have A4 million dollars laying around that you want invested you can create an account with them today and you two can become a part of the global conspiracy to control the world because the next thing they’re about to control supposedly is real estate and this rumor has gotten so bad that they themselves put out a statement and they say they want to make it perfectly clear that they are not buying individual homes in the US they are however investing $120 billion for their clients into building houses purely to rent them out for cash flow so that their clients could make money but Black Rock themselves say they are not buying single family homes so I’ll leave black rock out of it for now but I will come back to it because there are five other major institutions that do own a lot of houses and they are buying but before I get to that I did go to to a real estate expert to ask his opinion on what’s actually going on all right Graham can you please explain why real estate is going up and it’s not necessarily because of hedge funds it’s such a small percentage that in the big picture it doesn’t really make a difference it’s like you walking into a house and saying oh I’m not going to buy this house because I don’t like the paint color well meanwhile it’s like falling off a cliff like that’s not the reason you’re bu you know not buying the house it’s it’s so insignificant so yes they are but it’s not the types of real estate where it’s like you going and buy bu a house you’re going to miss out because black rock is going and making an offer slightly higher than you right why did you think Fox News cancelled it and didn’t air your episode I don’t think it makes it exciting story honestly I think it’s it’s better to get the people going with a story about a corporation who’s putting one over on the mom and pop you know person who’s buying a house it it it makes people angry and you know the truth is really not that exciting it’s that interest rates are really low people were able to lock in rates at 3 to 4% fixed for 30 years rates are higher now it doesn’t make sense to sell there’s not enough inventory on the market there’s still some demand so there’s very few properties on the market for people to pick from and that’s keeping prices High that’s really as simple as it is now up to this point in the video I showed you a lot of evidence why institutions might not be the biggest reason why homes are becoming more expensive but I also want to share with you my opinion and my opinion is that institutions have a lot more to do with this than meets the eye and what shows up in our data and let me show you why there’s a small But Mighty group of companies that lead the industry so preium is the parent company for a company called progress residential that owns about 990,000 homes they were started by Don Mullen who came out of Goldman sachs’s Mortgage Group Invitation Homes was started by Blackstone but Blackstone sold their position a long time ago they own about 80,000 homes American homes for rent which was started by Wayne Hughes they own about 60,000 homes there’s a company called Trion residential that’s out of Canada and then there’s one called Amherst those are the big five okay so if you add all that up across five major institutions that represents about 272,000 homes which is a lot of houses but remember that is still only a small fraction maybe 1 to 2% of the residential Market institutions large companies only account for about 1% of all the rental housing in the United States and only about 2% of the single family rental housing except here’s the thing I haven’t seen any and consider big money institutions are creating a market where Builders are incentivized to build more rental properties for these institutions rather than building starter homes which contributes to the shortage of supply and here’s just a couple examples using the same five big institutions of how they’re contributing to this problem one of the biggest institutions progress residential paid $1.5 billion to DR Horton just this year to build them 4,000 ,000 rental homes another one Invitation Homes teamed up with py group to build them 72,000 rental homes another one amh American Homes teamed up with JP Morgan Asset Management to build them more rental homes and because these money institutions are partnering up with home builders we’re seeing less and less homes prioritized for normal people and more homes being built that are prioritized for investors as rental properties instead and this isn’t just my opinion this data is verifiable in the late ’70s early 80s the United States routinely generated between 3 and 400,000 starter homes a year in 2020 we generated 65,000 so after learning about all of this here’s my personal opinion and I’m going to upset both Fox News and CNN here because when we talk about Investors it’s hard to form a baseline truth because not everyone agrees what investor actually means like some people think that if you own less than nine houses you’re not a big investor you’re just a small mom and popop operation other people say you own nine houses you are definitely part of the problem how many is too many three five I don’t know but if you own just one rental property you will be officially included in the big-time investor statistic having said that though I think Graham is absolutely right and his logic explains the majority of the reason why houses have become more expensive because interest rates have been in historic lows for more than a decade which incentivized people to buy not just a starter house but maybe an investment property or two and now that prices are really high and interest rates are high and since 90% of people are locked into an interest rate that’s less than 6% then it makes no sense to move and thanks to inflation and material costs and zoning laws and bureaucracy it’s made it a lot more expensive for Builders to build smaller more affordable homes and all of that is on the government’s to blame and Builders had to get creative I actually learned a couple years ago when I was trying to build a house which I never ended up doing that it didn’t cost me that much more money to build a bigger house especially if I went upward so Builders realized this a long long time ago that’s why they are now prioritizing building a bigger house because it doesn’t cost them that much more but it does increase their profit margins they figured out pretty early on like it’s pretty hard to be profitable when you’re focusing on people who are missing payments all the time and living in 70-year-old homes that need a lot of capex so the the Wall Street group has focused on newer homes and higher income tenants who are more discretionary renters not not out of necessity because that’s been a better profit model for them when you add to that a shortage of affordable housing and low inventory and you get the answer but that does not mean Wall Street isn’t part of the problem because I think they are and here’s exactly why so let’s just assume that Wall Street really does own only 1 to 2% of houses but then then we have to ask ourselves what percent of that 2% is made up of starter homes I was able to find data from 2021 and single family homes made up 74.8% of their Investments with an average price of $432,000 that also happens to be close to the median price point of a home in the US which means three out of four of their Investments are targeted at price points that you and I would consider buying as a starter home but still that’s only 2% of all the housing so why then does it feel like that 2% has such a disproportionate effect on all the prices here’s how I like to make sense of this okay so you know how people say that the price of something is determined by supply and demand basic economics I also learned though that supply and demand does not exist in a market that has 100% demand and no Supply that’s what’s happening with oil the entire world is running at 100% capacity it demands energy all the time and there’s not a lot of reserves except for Argentina Saudi Arabia and the Middle East but those are reserves meant for emergencies and not for setting prices now oil’s price today is what it is because of something called spare production capacity it’s a fancy way of saying extra he who has the extra makes the rules because while the world is on its last drop consuming everything it gets its hand hands on if you’ve got extra you get to set the price I think real estate in the US is now operating under similar kind of Economics it’s in 100% demand and very little Supply so who controls the price he who has the extra who has the extra investors have the extra and Builders can build the extra which they’re not doing right now because investors are incentivizing those Builders to instead prioritize building rental properties for them instead and that plays no small role in removing their incentives for building starter homes that normal people can afford and when that 1 or 2% demand from Wall Street is so highly concentrated in areas where investors see the most opportunity for growth aka the houses that are most affordable and you get this situation where people are rightfully upset because it affects the price point that matters most and because bureaucracy and governments just stand in the way and they don’t help and they make it more expensive for everyone else to build Builders just charge us more money so right there we can blame bureaucracy we can blame the builders and we can blame investors so when Wall Street comes along and buys are a little 1% extra in my opinion if we removed Wall Street out of the equation it would give the market just a little bit of breathing room how much would that lower prices I don’t know I’m not an economist I couldn’t even begin to tell you how to calculate that number but 2% demand can make or break the difference between creating a market that is reasonable one that’s governed by basic supply and demand economics and a market that makes no sense at all that’s just my very unprofessional and very uneducated opinion now I have to say that it’s always been really hard for me to make real estate videos because there are so many moving parts and so many variables and I feel so overwhelmed and I try not to be one of those people that buys into a simple narrative like it’s an evil Corporation I try to look at data but sometimes I think there’s important nuances behind the data that I sometimes Overlook and that’s what I tried to show and hopefully explain and I also want to clarify that in this video I’m not saying that I’m right and I explained all of it but it is something that’s always been on my mind that I’ve had trouble with so I’d love to know what you think about all of this did I do okay is there something that I missed let me know what you think and as always I hope you have a wonderful rest of your day smash the like button subscribe if you haven’t already don’t forget to grab your free stocks links are down below and then go track them automatically with the spreadsheet link Down Below in my patreon love you thank you so much for watching this video I’d love to see you back here on Monday and Friday sometimes a Wednesday see you soon bye-byeHow Big Money Invests In Real Estate
Solving Common Challenges
Investing in real estate is a proven strategy for wealth generation. Yet, it is not without its challenges, especially for those new to the field or without the vast resources of big-money investors. Ever wondered how the big players overcome these obstacles and consistently succeed? Let’s dive into two common problems in real estate investing and explore effective solutions to tackle them.
Access to Capital and Financing
One of the biggest hurdles for real estate investors is accessing sufficient capital. Real estate investments often require significant upfront costs, which can be daunting. Have you found yourself struggling to secure funding for your investment projects? Without the deep pockets that institutional investors have, many potential investors hit a wall.
Challenges in Securing Financing
- High Down Payments: Traditional loans often require large down payments, which can be a barrier.
- Strict Lending Criteria: Banks and lenders have stringent criteria that can be difficult to meet.
- Risk Assessment: Lenders may view real estate investments as high-risk, leading to unfavorable loan terms.
Market Knowledge and Timing
Understanding the market and timing your investments are critical for success in real estate. How do big investors seem to always get it right? They possess extensive knowledge and resources to analyze market trends and make informed decisions. But what if you don’t have access to that level of expertise?
Challenges in Market Knowledge
- Lack of Data: Accessing comprehensive and reliable market data can be challenging.
- Understanding Trends: Interpreting market trends requires experience and expertise.
- Risk of Overpaying: Without proper market insight, there’s a risk of overpaying for properties or missing out on lucrative opportunities.
Solutions to Overcome These Challenges
Now that we’ve identified the problems, let’s explore how you can overcome them with strategies that even big-money investors use.
Leverage Partnerships and Syndications
Forming partnerships or joining real estate syndications can provide the capital and resources needed for larger investments.
- Step 1: Network with other investors and professionals in real estate forums and meetups.
- Step 2: Look for syndication deals where multiple investors pool their resources.
- Tip: Ensure all legal agreements are clear and protect your interests.
Utilize Creative Financing Options
Explore alternative financing options beyond traditional bank loans to raise the necessary capital.
- Step 1: Consider options like hard money loans, seller financing, or private money lenders.
- Step 2: Evaluate the terms and conditions carefully to ensure they align with your investment goals.
- Tip: Build strong relationships with these alternative financiers to secure better deals in the future.
Invest in Real Estate Education
Equip yourself with the knowledge needed to analyze markets and make informed investment decisions.
- Step 1: Enroll in real estate courses and attend industry seminars.
- Step 2: Subscribe to market analysis services and real estate journals.
- Tip: Stay updated with the latest trends and news in the real estate market.
Use Technology and Data Analytics
Leverage technology to gain insights and make data-driven decisions.
- Step 1: Use real estate analytics tools to evaluate market conditions and property values.
- Step 2: Employ software for financial modeling and risk assessment.
- Tip: Regularly review and analyze the data to stay ahead of market trends.
Diversify Your Investment Portfolio
Spread your investments across different types of properties and locations to mitigate risk.
- Step 1: Invest in a mix of residential, commercial, and rental properties.
- Step 2: Consider properties in various geographical locations to reduce market-specific risks.
- Tip: Rebalance your portfolio periodically based on market performance and trends.
Start Fixing These Problems Today
By leveraging partnerships, exploring creative financing, investing in education, using technology, and diversifying your portfolio, you can overcome the common hurdles in real estate investing. These strategies will help you secure capital, understand the market better, and make informed decisions.
At BigMoneyInvesting.com, we are here to guide you through these processes. Our resources and community support can help you take the first steps toward successful real estate investing.
Who Am I?
Hello, I’m Chris, the founder of BigMoneyInvesting.com. I’ve been where you are now—eager to invest in real estate but unsure how to navigate the challenges. I started this platform to help people like you who are passionate about investing, wealth creation, and understanding financial issues. At BigMoneyInvesting.com, we provide tips, strategies, and community support to help you solve these problems and achieve your investment goals. Join us, and let’s build wealth together!
Thank you for being a part of our amazing community.
We can’t wait to see you shine finanically!
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Comments (30)
any "HUMAN ?" can only own one house. problem solved.
how much of our data did you mine with your hand waving theatrics. get a real job!
The government took David Rockefeller to court for his monopoly on the oil industry.. He was simply too rich. Too powerful.. It is time that the government grows some balls & history repeats itself
They have mastered the illusion that they dont run the world but theres loops you gotta jump thru to find the truth we own nothing and never will only the 10 families that lied will truly have and own something
Thank you for this . These are the Big business people we need to rehumanize.. They are buying people out to lobby that its the government.
What counts as a monopoly these days.
In China, "house is for living, not speculation", they are indeed go down
While in muricaaaaaa, heh, y'all murican citizen gonna go homeless and rent to blackrock
This guys sellin BS. Oh, dont blame these Giant Corps. their harmless.
You're correct" Oversimplification of problems is where mistakes are made!" Keep up good work of making this housing problem understandable!
Somethings wrong. This guy cant stop waving his hands. Thats sooo annoying.
First things first: learn the difference between Blackstone and Blackrock… lol
Is that not monopoly?
Did it ocur to you that they're building all of these rental homes so they can set the floor on rent prices? I didn't hear the word affordable when describing these homes.
Flats for rental: they want us to be in debt with them forever. So that no one dares to go against them.
These massive corporations make wealth by concentrating in the hands the global wealth, the one that comes from natural resources and the one that comes from your pocket. All of it. And nothing will stop them. They own us. If this is not yet evident it will be in the next years. Im not Nostradamus for saying this because it is already happening and it has since a long time, we were just entertained with the newest smartphone model.
The problem is where they own is where people want to live. So the small percentage people say they own is actually a bigger deal because they don’t buy where people don’t want to live. That is the key point. You have to pull back the layers. They are have been on a buying rampage and also they can block their names from purchases aka Walt Disney back in the day
Not true, I heard from reliable sources that Black rock was buying up houses last year and the year before!
The single issue you missed was in 2021, they were overpaying and paying cash for every decent home on the market targeting the middle class. It's not about overall market share, but the destruction they can do in a very short time. This caused hyperinflation. I cannot comment my opinion about what should happen to those that run those corporations and hedge funds.
they speculated and rised the rental costs
When the big plan unfolds you’ll see how even these YouTubers played a role in their agenda.. Misinformation is a weapon.
Smashed the like button at “tree fitty”
oil is infinite… change my mind
You can look at the state registration of property and I bet the numbers will be a lot higher than "reported".
This is bullshit. WALL STREET IS ABOUT TO TAKE ALL YOUR MONEY AND PROPERTY
I don’t understand how our government doesn’t regulate this more. I’m in Canada and people will buy up a bunch of houses and they never even have people living in them. I don’t really know much about the topic but why aren’t there rules and regulations preventing this sort of monopoly on the market. Force them to rent out the spaces or prevent them from owning 5+ homes
The reason house prices are so high is because idiots are willing to pay 40% more than they are really worth.
Property ownership is freedom. See WEF for reference and why they dont want you to own anything. It is one of the promary philosophies driving this.
Cant let communist taking over human kind. Plz god
Best breakdown and opinion I’ve seen.
Haha @ Shinra