For the Real Estate Drop in sales and price Naysayers HOLD ONTO YOUR HATS

[monkeyswrench]

Anyone who owns an S&P 500 index fund in their IRA or investment account has ownership of 100% of all S&P 500 firms.

BlackRock has 10 trillion dollars under management of other people‘s money. They don’t own it, they manage it. Investors own it. Like your neighbors and others.

Vanguard has about 7.2 trillion dollars under management of other people’s money. They don’t own that money either. It is the money of their investors.

The “worlds assets” comprise about 431 trillion. Not sure how 17.2 trillion is a “vast majority” of 431 trillion? Besides, these two firms just manage the money, it is not their money and investors can take it back.

World’s Wealth Hits Half A Quadrillion Dollars

The world's total net wealth has hit $431 trillion, nearly half a quadrillion dollars, and over a quarter of it is controlled by millionaires.

www.forbes.com

There are two ways to look at that. You see it as they "only" manage 17.2 trillion in assets.
I see it as "Holy crap, those 2 companies control 4% of the world's assets!"

Good or bad, that's really impressive!

 

[hallett21]

From your above post that can only be 5% (roughly) of real estate transactions. I think that narrative sells headlines more than anything.

With sellers getting multiple offers for the last 18 months I have a hard time believing that the seller’s agent is letting every family know that they were outbid by a corporation.

From most of the info I have read including watching the stock market they have been paying over value and out bidding on homes across the US pushing out regular folks from buying in a lot of situations not sure about your area, what is your area just for info purposes to see some of their trends.

 

[PaPaG]

Could you please include the source of these articles?

ALL Over the web ranging from Bloomberg, NYPost, Times, Forbes, a ton of them. I will start including titles from reporting agencies going forward.

 

[PaPaG]

Why do you have such a hard-on for Blackrock? How many articles do you have to see to realize you are being played by the MSM to believe big corporations are evil?

Blackrock is not paying 30-50% over list . Do you really think firms get that big by overpaying 30-50% on assets? Come on!

Data does not lie, I don't have a hardon for blackrock or vanguard, I am just pointing out articles and information that is widely known and reported. I think you may need to do some investigating yourself, looking at some of the data on these monster firms they jump in and overpay all the time, the money is not theirs they just control it so they do as they please and most of it is clearly reported in their quarterlies and yearly reports. In fact, I wish I was smart enough to have bought as much Blackrock stock as I could afford back in march of '20.

 

[badgas]

Your only looking at one aspect, your staring at 1 tree and missing the forest. Sounds like your in the industry so your going to have a bias view.
The 2006-12 house crisis was cause by super easy lending. That was the driver of that bubble. They are doing stated income loans now as well especially on VRBO. This time everything is against it as i have pointed out in other post.

I am not in the business of lending or selling real estate.

I was drawn to this thread because of all of the comparing the RE market to 07-08 and will still continue to say the loan structure under this market is apples to oranges vs. 08

That loan structure in 07-08 was the cause of collapse.

If we fall this time for other reasons then it is what it is but it won't be from subprime loans and bogus ratings.

There always has been a normanl cycle of default and foreclosure and there always will.

VRBO ? I agree there will be some pain because too many people jumped on the STR bandwagon with too much leverage and they will need to sell. This might help the really low inventory that we have but again that does not indicated a collapse of the housing market.

 

[COCA COLA COWBOY]

Anyone who owns an S&P 500 index fund in their IRA or investment account has ownership of 100% of all S&P 500 firms.

BlackRock has 10 trillion dollars under management of other people‘s money. They don’t own it, they manage it. Investors own it. Like your neighbors and others.

Vanguard has about 7.2 trillion dollars under management of other people’s money. They don’t own that money either. It is the money of their investors.

The “worlds assets” comprise about 431 trillion. Not sure how 17.2 trillion is a “vast majority” of 431 trillion? Besides, these two firms just manage the money, it is not their money and investors can take it back.

World’s Wealth Hits Half A Quadrillion Dollars

The world's total net wealth has hit $431 trillion, nearly half a quadrillion dollars, and over a quarter of it is controlled by millionaires.

www.forbes.com

Yup! We also know that these companies can fail! They usually don't because the politicians will give them our money so they never lose...but damnit! It could happen! haha.

We are going to see some changes by next year. We can talk this to death, but look at the factors....our president has dementia, the fed is making money left and right, we have inflation and it's not under control, prices are overinflated, etc.

 

[Gonefishin5555]

Where can I get a stated income loan? Looking to buy and my options are bank statement loan or W2.

https://hostfinancial.com/short-term-rental-loans-mortgages/

I thought that website was interesting the rent calculator said my bhc property would generate 50k a year in rental income and my house in OC 134k. The rates on those loans are 6-8%

 

[PaPaG]

X2 I would imagine they are old at best, or inaccurate hyperbole and old at worst.

Once again we cant sit on both sides of the fence now. BlackRock and Vanguard are not buying up every property at 30%-50% higher than the market while housing prices are needing to be reduced to sell and the market is falling faster than we can keep track. Lets pick a reality and stick with it here.

Sorry they are current and not old at best, I forgot MKA has the most current info and detailed factual data on the web on all topics. Speaking of reality hows that speed delivery call going? just love the Know It All comments. lol

 

[rivermobster]

AHH so I take it you got offended, thin skin?

Me? Thin skin? Anyone that knows me will tell you that description is exactly the opposite of me!

I know I'm not a wordsmith, but I thought I was fairly clear, although I was being a bit of a smart ass.

Me: You can't loose money on an investment, unless you sell it for less than you bought it for.

You: I disagree. I buy and sell every day.

I stand by the fact that my statement is correct, and I'm unsure how you can disagree with that?

My point is...

On paper, sure, the appraised value of an item CAN change, but until you actually SELL that item, the profit or loss is not actually realized by the person in possession of said item.

Let's say you owned a 2007 truck, and paid cash for it when they bought it.

Just before covid, that truck was probably worth 10k.

During covid? 20k

Now with the chip shortage? 30k

BUT, you won't see any of that money UNTIL YOU SELL IT!!!

The sale date, and related profit or loss on that date is the ONLY thing that matters.

You're still free to disagree if you want. But I hope I explained it better this time.

 

[angiebaby]

Interesting article. And they are doing it right in front of our faces without barely any outcry.

STORY AT-A-GLANCE

The vast majority of the world’s assets are owned by just two investment firms — BlackRock and the Vanguard Group. Combined, they have ownership in nearly 90% of all S&P 500 firms, and through their investment holdings they secretly wield monopoly control over all industries

By now you may be familiar with the World Economic Forum slogan, “By 2030, you will own nothing.” To that end, BlackRock and other investment firms are buying up every single-family home they can find, making cash offers of 20% to 50% above asking price.

Buying a home has been part of the American dream since the founding of this country. It’s been a significant part of financial success, security and freedom. George Washington declared that “Private Property and freedom are inseparable.” Now, lower to middle class Americans are being intentionally positioned to become permanent renters, which means they cannot build equity.

This is wealth redistribution from the low- and middle-class to the upper, and it’s in line with plans for societal reorganization described under banners such as The Great Reset, Build Back Better, Agenda 21 and the 2030 Agenda for Sustainable Development.

These agendas all work together toward the same goal, which is a global monopoly on ownership and wealth, with a clear separation of the haves and have nots; the owners and the owned; the rulers and the ruled; the elite and the serfs.

Excerpts:

As it turns out, the vast majority of the world’s assets are owned by just two investment firms — BlackRock and the Vanguard Group.

THIS MAKES THE WEALTH CONCENTRATION FAR WORSE THAN THE ROBBER BARON MONOPOLISTS.

Combined, they have ownership in nearly 90% of all S&P 500 firms, and through their investment holdings they secretly wield monopoly control over all industries. In short, the idea that there is competition in the marketplace is a clever illusion.

By now you may be familiar with the World Economic Forum slogan, “By 2030, you will own nothing.” To that end, BlackRock and other investment firms are currently buying up every single-family home they can find, making cash offers of 20% to 50% above-asking price.

Depending on where you live, you may have noticed that homes are selling within hours of being listed, making house hunting nearly impossible. Home buyers in my home state of Florida are certainly experiencing this phenomenon.

Investment firms are also buying up entire neighborhoods. As just one example, a 124-home neighborhood in Conroe, Texas, was bought for $32 million — 20% above listing — by Fundrise LLC, a real estate crowdfunding company, which then turned around and made all the homes into single-family rentals (SFRs).

According to investment experts, SFRs are “exceptionally attractive investment assets,” and this is one aspect driving the trend. Demographic changes such as millennials starting families and affordability constraints are also said to be driving factors. But that really does not fully explain what’s happening.

The War Against Private Property

Buying a home has been part of the American dream since the founding of this country. It’s been a significant part of financial success and security. Now, lower to middle class Americans are being intentionally positioned to become permanent renters, which means they cannot build equity. Their ability to purchase a home, even if they can afford it, is being stripped from them by companies that can outbid them with cash offers.

Sustainable Development’ Agenda Is a Plan to Enslave You

The war against private property goes back decades. In 1976, during the first United Nations’ Conference on Human Settlements, called Habitat 1,8 the U.N. stated, in Item 10:9

“Land … cannot be treated as an ordinary asset, controlled by individuals and subject to the pressures and inefficiencies of the market. Private land ownership is also a principal instrument of accumulation and concentration of wealth and therefore contributes to social injustice; if unchecked, it may become a major obstacle in the planning and implementation of development schemes. Public control of land use Is therefore indispensable.”

The idea, apparently, is that private investment firms like Vanguard and BlackRock can prevent social injustice by buying up all private property and renting it out. This way, no one (except their investors) can build wealth.

Private Property and freedom are inseparable. ~ George Washington

This is what “equity” is all about, and it has nothing to do with equality. “Social equity” is incredibly unfair, as it strips those with talent and drive of the ability to make something out of themselves.

It looks like you got this from the following website, which looks to be centered in some European country. My first guess is Norway. https://antiglobalisten.no/investme...rivate-property-the-slow-return-to-feudalism/

Granted, the author did cite his sources, though some are questionable, IMO.

 

[angiebaby]

You are really ill educated on the topic if you have no clue who Blackrock or Vanguard is related to real estate and holdings. DO your research then comment, wait for the call and then report

This is how big Corps destroy the American dream! Blackrock is buying up US homes like there is no tomorrow​

Jul 15, 2021

Blackrock – one of the largest asset management firms – is buying up US homes like no tomorrow
Homeownership has long been considered an important tool for building financial security and wealth, but it’s becoming more difficult for Americans to achieve. Younger generations are less likely to own a home than those from older generations, with millennials’ homeownership rate 8% lower than that of generation X and baby boomers at the same age.
If the rate had remained steady, about 3.4 million more people would own homes in the U.S. today but, instead, younger adults are increasingly choosing to either rent or live with their parents. There are a number of reasons why homeownership has become less attainable than it was decades ago, from rising debt in younger generations to increased cost of living.
A report by the Urban Institute found half those aged 18 to 34 were spending upward of 30% of their income on rent, making them “rent-burdened.” Meanwhile, median housing prices increased 28% in the last two years, pricing some out of the market. However, the shift is not all happenstance.
In the first quarter of 2021, 15% of U.S. homes sold were purchased by corporate investors — not families looking to achieve their American dream. While they’re competing with middle-class Americans for the homes, the average American has virtually no chance of winning a home over an investment firm, which may pay 20% to 50% over asking price, in cash, sometimes scooping up entire neighborhoods at once so they can turn them into rentals.

BlackRock is buying up US houses​

BlackRock is one of a number of companies mentioned by The Wall Street Journal in a recent exposé. “Yield-chasing investors are snapping up single-family homes, competing with ordinary Americans and driving up prices,” they warned. The question is, why would institutional investors and BlackRock, which manages assets worth $5.7 trillion, be interested in overpaying for modest, single family homes?
PROTECT YOUR HOME AND CAR WITH THE BEST LIGHTNING AND EMP PROTECTION AVAILABLE…
To understand the answer, you must look at BlackRock’s partners, which include the World Economic Forum (WEF), and their extreme political and financial clout. In a Twitter thread posted by user Culturalhusbandry, it’s noted:


If the average American is pushed out of the housing market, and most of the available housing is owned by investment groups and corporations, you become beholden to them as your landlord. This fulfills part of the Great Reset’s “new normal” dictum — the part where you will own nothing and be happy. This isn’t a conspiracy theory; it’s part of WEF’s 2030 agenda.
The unstated implication is that the world’s resources will be owned and controlled by the technocratic elite, and you’ll have to pay for the temporary use of absolutely everything. Nothing will actually belong to you, including your home. All items and resources are to be used by the collective, while actual ownership is restricted to an upper stratum of social class. The wealth transfer has already begun.

BlackRock’s has no rivals on the market​

The New York Times and a majority of other legacy media are largely owned by BlackRock and the Vanguard Group, the two largest asset management firms in the world, which also control Big Pharma. And it doesn’t end there.
PROTECT YOUR HOME AND CAR WITH THE BEST LIGHTNING AND EMP PROTECTION AVAILABLE…
BlackRock and Vanguard are at the top of a pyramid that controls basically everything, but you don’t hear about their terrifying monopoly because they also own the media. You can watch all the details about BlackRock’s monopoly in this video, but Humans Are Free summed it up this way:
“The power of these two companies is beyond your imagination. Not only do they own a large part of the stocks of nearly all big companies but also the stocks of the investors in those companies. This gives them a complete monopoly. A Bloomberg report states that both these companies in the year 2028, together will have investments in the amount of 20 trillion dollars. That means that they will own almost everything.
Bloomberg calls BlackRock ‘The fourth branch of government,’ because it’s the only private agency that closely works with the central banks. BlackRock lends money to the central bank but it’s also the advisor. It also develops the software the central bank uses.
… BlackRock, itself is also owned by shareholders … The biggest shareholder is Vanguard … The elite who own Vanguard apparently do not like being in the spotlight but of course they cannot hide from who is willing to dig. Reports from Oxfam and Bloomberg say that 1% of the world, together owns more money than the other 99%.
Even worse, Oxfam says that 82% of all earned money in 2017 went to this 1%. In other words, these two investment companies, Vanguard and BlackRock hold a monopoly in all industries in the world and they, in turn are owned by the richest families in the world, some of whom are royalty and who have been very rich since before the Industrial Revolution.”

BlackRock may control the World’s Economic Future​

To put this into perspective, BlackRock, an investment firm, has more power than most governments on Earth, and it also controls the Federal Reserve, Wall Street mega-banks like Goldman Sachs and the WEF’s Great Reset, according to F. William Engdahl, a strategic risk consultant and lecturer who holds a degree in politics from Princeton University.
Engdahl believes that, left unchecked, BlackRock will soon control the economic future of the world, and states, “BlackRock is the epitome of what Mussolini called Corporatism, where an unelected corporate elite dictates top down to the population.” For instance, three influential economic appointees of the current administration come from BlackRock.
“There is a definite pattern and suggests that the role of BlackRock in Washington is far larger than we are being told,” Engdahl says. The Campaign for Accountability also released a report in 2019 detailing how BlackRock “implemented a strategy of lobbying, campaign contributions, and revolving door hires to fight off government regulation and establish itself as one of the most powerful financial companies in the world.”
BlackRock founder and CEO Larry Fink also has close ties to WEF’s head Klaus Schwab, and joined WEF’s board in 2019. According to Engdahl:
“Fink … now stands positioned to use the huge weight of BlackRock to create what is potentially, if it doesn’t collapse before, the world’s largest Ponzi scam, ESG [Environment, Social values and Governance] corporate investing. Fink with $9 trillion to leverage is pushing the greatest shift of capital in history into a scam known as ESG Investing.
The UN ‘sustainable economy’ agenda is being realized quietly by the very same global banks which have created the financial crises in 2008. This time they are preparing the Klaus Schwab WEF Great Reset by steering hundreds of billions and soon trillions in investment to their hand-picked ‘woke’ companies, and away from the ‘not woke’ such as oil and gas companies or coal.
… Oil companies like ExxonMobil or coal companies no matter how clear are doomed as Fink and friends now promote their financial Great Reset or Green New Deal … And we can expect that the New York Times will cheer BlackRock on as it destroys the world financial structures.”

Blackstone Is the Largest Landlord in the US

Another giant private equity firm, Blackstone, is also deeply entrenched in U.S. real estate. Blackstone is the largest landlord in the U.S. as well as the largest real estate company worldwide, with a portfolio worth $325 billion. In June 2021, Blackstone agreed to buy Home Partners of America, a company that rents single-family houses, and its 17,000 houses, for $6 billion.
Blackstone and BlackRock sound alike for a reason. Blackstone’s co-founder, billionaire Steve Schwarzman, said during an interview on Squawk Box that he and Fink “started in business together. We put up the initial capital.” BlackRock used to be called Blackstone Financial, but Fink went off on his own. Schwarzman said, “Larry and I were sitting down and he said, ‘What do you think sort of about having a family name with ‘black’ in it,’” and BlackRock was born.
Blackstone became notorious for swooping in after the housing bubble burst and buying tens of thousands of homes at deeply discounted prices. They then turned them into single-family rentals, taking advantage of the recession.
In 2017, Bloomberg reported: “Blackstone built its rental-home business with an advantage few if any other buyers could match: billions of dollars in credit from large banks. Its Invitation Homes subsidiary quickly became the largest single-family home landlord in the U.S., with 50,000 properties. Altogether, hedge funds, private-equity firms and real estate investment trusts have raised about $20 billion to purchase as many as 200,000 homes to rent.”
Now, with many struggling due to yearlong business shutdowns and lockdowns, and home prices rising, many Americans are having difficulty finding affordable single-family homes to buy.

BlackRock owns your house, Gates owns your farmland​

Both BlackRock CEO Fink and Bill Gates are pushing for “net zero” carbon emissions. But as BlackRock is busy buying up houses, Gates is hard at work amassing farmland and is now the largest owner of farmland in the U.S.
By 2030, Gates is pushing for drastic, fundamental changes, including widespread consumption of fake meat, adoption of next generation nuclear energy and growth of a fungus as a new type of nutritional protein. The deadline Gates has given to reach net zero emissions is 2050, likely because he wants to realize his global vision during his lifetime.
But according to Vandana Shiva, in order to force the world to accept this new food and agricultural system, new conditionalities are being created through net zero “nature-based” solutions.

This one is from Strangesounds.org

Blackrock is buying up US homes like no tomorrow - Strange Sounds

Did you know that Blackrock is currently buying up US homes like no tomorrow? Here are the reasons why... People and societal control...

strangesounds.org

Seems like a legit site to get financial and real estate information from. <---sarcasm

 

[LargeOrangeFont]

This one is from Strangesounds.org

Blackrock is buying up US homes like no tomorrow - Strange Sounds

Did you know that Blackrock is currently buying up US homes like no tomorrow? Here are the reasons why... People and societal control...

strangesounds.org

Seems like a legit site to get financial and real estate information from. <---sarcasm

And 13 months old to boot.

 

[rivermobster]

This one is from Strangesounds.org

Blackrock is buying up US homes like no tomorrow - Strange Sounds

Did you know that Blackrock is currently buying up US homes like no tomorrow? Here are the reasons why... People and societal control...

strangesounds.org

Seems like a legit site to get financial and real estate information from. <---sarcasm

Wanna know something funny? A buddies wife owns an escrow company. They own a property management company together, and he owns a commercial construction firm.

I asked him awhile back about all these investment firms buying up properties?

He reply was...

Nope. Not here in Glendora. Every deal we have done here, and in the surrounding areas, have been owner occupied deals.

Just thought I'd toss this out there, from someone who Actually knows.

 

[Todd Mohr]

God I hope that isn’t true.. let’s kill a shit ton of the youth of America so is old guys can have some financial security..

One of the main reasons Trump is a threat to the elite.

 

[530RL]

Yup! We also know that these companies can fail! They usually don't because the politicians will give them our money so they never lose...but damnit! It could happen! haha.

We are going to see some changes by next year. We can talk this to death, but look at the factors....our president has dementia, the fed is making money left and right, we have inflation and it's not under control, prices are overinflated, etc.

You should consider shorting those assets and/or asset classes you think are definitively going down.

There are all sorts of derivative instruments you can use to capitalize on your analysis.

I'm never that certain because I have no idea. Just not that smart. So I build diversified investment pools of multiple asset classes knowing that over time, you can't win if you don't play.

 

[PaPaG]

Me? Thin skin? Anyone that knows me will tell you that description is exactly the opposite of me!

I know I'm not a wordsmith, but I thought I was fairly clear, although I was being a bit of a smart ass.

Me: You can't loose money on an investment, unless you sell it for less than you bought it for.

You: I disagree. I buy and sell every day.

I stand by the fact that my statement is correct, and I'm unsure how you can disagree with that?

My point is...

On paper, sure, the appraised value of an item CAN change, but until you actually SELL that item, the profit or loss is not actually realized by the person in possession of said item.

Let's say you owned a 2007 truck, and paid cash for it when they bought it.

Just before covid, that truck was probably worth 10k.

During covid? 20k

Now with the chip shortage? 30k

BUT, you won't see any of that money UNTIL YOU SELL IT!!!

The sale date, and related profit or loss on that date is the ONLY thing that matters.

You're still free to disagree if you want. But I hope I explained it better this time.

Me? Thin skin? Anyone that knows me will tell you that description is exactly the opposite of me!

I know I'm not a wordsmith, but I thought I was fairly clear, although I was being a bit of a smart ass.

Me: You can't loose money on an investment, unless you sell it for less than you bought it for.

You: I disagree. I buy and sell every day.

I stand by the fact that my statement is correct, and I'm unsure how you can disagree with that?

My point is...

On paper, sure, the appraised value of an item CAN change, but until you actually SELL that item, the profit or loss is not actually realized by the person in possession of said item.

Let's say you owned a 2007 truck, and paid cash for it when they bought it.

Just before covid, that truck was probably worth 10k.

During covid? 20k

Now with the chip shortage? 30k

BUT, you won't see any of that money UNTIL YOU SELL IT!!!

The sale date, and related profit or loss on that date is the ONLY thing that matters.

You're still free to disagree if you want. But I hope I explained it better this time.

I though you were offended thus the thin skin comment, no worries.

 

[Havasu blue label]

It’s Glendora Pasadena Sanmarino big cities ask them same question to somebody in inland empire riverside county

 

[LargeOrangeFont]

It’s Glendora Pasadena Sanmarino big cities ask them same question to somebody in inland empire riverside county

English please?

San Marino is not a big city.

 

[PaPaG]

Fintel is one of the best data sites to follow funds holdings...just amazing at the stats.

 

[PaPaG]

And 13 months old to boot.

Check out SEC filings and then lets talk.....

 

[LargeOrangeFont]

Check out SEC filings and then lets talk.....

Please show where they are buying houses at 30%-50% above market and we can talk.

 

[PaPaG]

Please show where they are buying houses at 30%-50% above market and we can talk.

I am not going to do your research, instead of being a troll on every post, every thread, every topic that you are an expert on, try to finding out some factual info and then lets have a serious talk check out SEC filings and see how much every fund I mention is or has bought. I am going to wait for your single minded response.

5 - 4 - 3 - 2 ---

 

[Englewood]

Wanna know something funny? A buddies wife owns an escrow company. They own a property management company together, and he owns a commercial construction firm.

I asked him awhile back about all these investment firms buying up properties?

He reply was...

Nope. Not here in Glendora. Every deal we have done here, and in the surrounding areas, have been owner occupied deals.

Just thought I'd toss this out there, from someone who Actually knows.

Until I sold my company last month, we did 1,000 deals per year throughout California. We also own a property management company and I'm a minority owner of an escrow company. I have not seen 1 single Blackstone purchase in 10,000 closings since 2010. This is feet-on-the-ground actual experience, not BS reporting to make a headline.

This reminds me of the "Shadow Inventory" that never came to fruition as it was all doomers coming up with far-fetched theories.

It's ok to admit you were wrong and bought into the MSM reporting. We all make mistakes.

 

[LargeOrangeFont]

I am not going to do your research, instead of being a troll on every post, every thread, every topic that you are an expert on, try to finding out some factual info and then lets have a serious talk check out SEC filings and see how much every fund I mention is or has bought. I am going to wait for your single minded response.

5 - 4 - 3 - 2 ---

Here's your sign -

Until I sold my company last month, we did 1,000 deals per year throughout California. We also own a property management company and I'm a minority owner of an escrow company. I have not seen 1 single Blackstone purchase in 10,000 closings since 2010. This is feet-on-the-ground actual experience, not BS reporting to make a headline.

This reminds me of the "Shadow Inventory" that never came to fruition as it was all doomers coming up with far-fetched theories.

It's ok to admit you were wrong and bought into the MSM reporting. We all make mistakes.

 

[Havasu blue label]

It’s a big money city

 

[OldSchoolBoats]

Your only looking at one aspect, your staring at 1 tree and missing the forest. Sounds like your in the industry so your going to have a bias view.
The 2006-12 house crisis was cause by super easy lending. That was the driver of that bubble. They are doing stated income loans now as well especially on VRBO. This time everything is against it as i have pointed out in other post.

The loans now that are referred to as "stated" especially in the non owner occupied space, are LIGHTYEARS different then the stated income loans of the past. They are reserved for high FICO / high net worth individuals. They require sizable down payments and have strict reserve requirements.

The stated income loans of the past involved a janitor with a 580 FICO making $5K/month, buying an $800k house with no down payment. Times are very different now when it comes to specialty loan products.

 

[PaPaG]

Here's your sign -

As expected, like clockwork.

 

[LargeOrangeFont]

As expected, like clockwork.

When you have no FACTS.. tapdance faster.

 

[OldSchoolBoats]

Until I sold my company last month, we did 1,000 deals per year throughout California. We also own a property management company and I'm a minority owner of an escrow company. I have not seen 1 single Blackstone purchase in 10,000 closings since 2010. This is feet-on-the-ground actual experience, not BS reporting to make a headline.

This reminds me of the "Shadow Inventory" that never came to fruition as it was all doomers coming up with far-fetched theories.

It's ok to admit you were wrong and bought into the MSM reporting. We all make mistakes.

AHHHHH, the ole Shadow Inventory!!!! I remember that........

All the banks were holding REO on their books and when they release it into the market, the amount of inventory will be so massive it will crash prices.

I always do wonder where all the millions of foreclosures went. Who bought them?? That could be a case for Blackrock, Vanguard.....etc

 

[PaPaG]

When you have no FACTS.. tapdance faster.

And again, as clockwork, lol Mr. Know it All responds. No tapdancing from me, you avoid facts like the plague. 5 - 4 - 3 - 2 -

 

[hallett21]

I just want to say we’re 60ish days in since this threads inception. Tick tock lol

 

[OldSchoolBoats]

I just want to say we’re 60ish days in since this threads inception. Tick tock lol

I was thinking the same thing this morning.

The OP loves to copy and paste. Started on page one of this thread.

 

[LargeOrangeFont]

I just want to say we’re 60ish days in since this threads inception. Tick tock lol

You are ignoring the fear porn. Shameful.

 

[rivermobster]

I though you were offended thus the thin skin comment, no worries.

So do you still disagree with my statement??

 

[LargeOrangeFont]

And again, as clockwork, lol Mr. Know it All responds. No tapdancing from me, you avoid facts like the plague. 5 - 4 - 3 - 2 -

We have proven - just this morning (again) - you have no facts, and no reliable sources,

Faster... Better find a friend

 

[hallett21]

So I just went on Redfin and clicked houses in LA, Riverside, High Desert etc. Obviously these are all SoCal so this does not depict the entire US real estate market.

But…… lol. It seems like across the board to afford a home that “costs” less than renting you need to put 20% down. To me that seems like we are headed towards a larger inventory issue.

If you have the money and it makes sense you’ll make a purchase, however I think there are far more who cannot come up with that down payment. Which would force them to continue to rent. More renters would drive up home values no?

I realize the argument is that less buyer demand would soften prices. But what happens when people pull equity out of their homes to buy more doors? My fear is that we are just headed towards a world of landlords and tenants and no one in between.

 

[COCA COLA COWBOY]

You should consider shorting those assets and/or asset classes you think are definitively going down.

There are all sorts of derivative instruments you can use to capitalize on your analysis.

I'm never that certain because I have no idea. Just not that smart. So I build diversified investment pools of multiple asset classes knowing that over time, you can't win if you don't play.

I am! I am in a number of inverse ETF's right now! I have another stock thread where I talk about trading and others chime in some great ideas as well!

 

[2FORCEFULL]

We have proven - just this morning (again) - you have no facts, and no reliable sources,

Faster... Better find a friend


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I don't know why you have to be so harsh, and make the replies you do... seem like you are always on a hunt for a debate that you always vote yourself as the winner and badger till the other quits,... anyone else would have been banned long ago...... the moto here is be nice or leave.....get it???? not we are not happy till you are not happy... who the fuc is we???? for sure not me... I don't come here make others unhappy.....

 

[LargeOrangeFont]

So I just went on Redfin and clicked houses in LA, Riverside, High Desert etc. Obviously these are all SoCal so this does not depict the entire US real estate market.

But…… lol. It seems like across the board to afford a home that “costs” less than renting you need to put 20% down. To me that seems like we are headed towards a larger inventory issue.

If you have the money and it makes sense you’ll make a purchase, however I think there are far more who cannot come up with that down payment. Which would force them to continue to rent. More renters would drive up home values no?

I realize the argument is that less buyer demand would soften prices. But what happens when people pull equity out of their homes to buy more doors? My fear is that we are just headed towards a world of landlords and tenants and no one in between.

To your point it goes back to people need a place to live, and can't afford to make a move. If that continues, where does the inventory come from if renters are staying put, and homeowners are staying put.

 

[2FORCEFULL]

so what about the air plane cost now.....I can't sleep at all worry about it.... of coarse, I can't fly a plane, don't have money to buy a plane... but what do I do if the market crashes????

 

[2FORCEFULL]

To your point it goes back to people need a place to live, and can't afford to make a move. If that continues, where does the inventory come from if renters are staying put, and homeowners are staying put.

thats called a stable market... and only those that have to make a move do so...

 

[hallett21]

so what about the air plane cost now.....I can't sleep at all worry about it.... of coarse, I can't fly a plane, don't have money to buy a plane... but what do I do if the market crashes????

Hey every time a buy a lotto ticket I run the numbers on my future king air vs citation vs G400.

 

[COCA COLA COWBOY]

Funny, here is one way to look at it....

If you were to win the lottery what would you do with the money? This comes from Hallett21's post. This topic comes up on occasion and there is one clear winner when it comes to the answer....you buy apartment buildings and single family homes with all the proceeds except about 10% (retain for renovations, prop. management, and property taxes) after taxes. You rent them out and live on the passive income. It doesn't matter if values go down because in the long term, you will always win. You will always have income and your personal financial statement will always go up in the long run. If you spend the money like most recipients so, data shows you will be broke within 5 years.

So what should you do in your life....buy homes and apartment buildings. You may not have 500 million to do so, but in the long run you will always win.

 

[PaPaG]

When you have no FACTS.. tapdance faster.

I just want to say we’re 60ish days in since this threads inception. Tick tock lol

Tick Tock? you think in 60 days mortgage rates and home sales have caught up to feds increases in prime? home prices have slowed down days on market have extended for a large portion. Lets see what 180 days after this next fed increase does, your timeline is very short sighted especially if you study the market. Time will tell....

 

[NicPaus]

Funny, here is one way to look at it....

If you were to win the lottery what would you do with the money? This comes from Hallett21's post. This topic comes up on occasion and there is one clear winner when it comes to the answer....you buy apartment buildings and single family homes with all the proceeds except about 10% (retain for renovations, prop. management, and property taxes) after taxes. You rent them out and live on the passive income. It doesn't matter if values go down because in the long term, you will always win. You will always have income and your personal financial statement will always go up in the long run. If you spend the money like most recipients so, data shows you will be broke within 5 years.

So what should you do in your life....buy homes and apartment buildings. You may not have 500 million to do so, but in the long run you will always win.

Not in CA though. CA the tenants have more rights than the homeowners.

I am not to familiar with triple net leases but learning. From what I have learned the leasee is responsible for everything. Owner just collects the monthly check. Takes a lot more money to buy them but much less headache than residential.

 

[hallett21]

Tick Tock? you think in 60 days mortgage rates and home sales have caught up to feds increases in prime? home prices have slowed down days on market have extended for a large portion. Lets see what 180 days after this next fed increase does, your timeline is very short sighted especially if you study the market. Time will tell....

I can’t keep track but I’ve heard 30, 60, 90, 180 etc days until the global meltdown . I’m being sarcastic.

I just don’t see SFR real-estate correcting. Maybe in some areas but certainly not SoCal.

 

[COCA COLA COWBOY]

Not in CA though. CA the tenants have more rights than the homeowners.

I am not to familiar with triple net leases but learning. From what I have learned the leasee is responsible for everything. Owner just collects the monthly check. Takes a lot more money to buy them but much less headache than residential.

You can't blindly buy or blindly rent. You have to have parameters for both. There are ways to win and it's mostly just common sense.

 

[MSum661]

Lets see what 180 days after this next fed increase does, your timeline is very short sighted especially if you study the market. Time will tell....

Few understand this

 

[COCA COLA COWBOY]

I can’t keep track but I’ve heard 30, 60, 90, 180 etc days until the global meltdown . I’m being sarcastic.

I just don’t see SFR real-estate correcting. Maybe in some areas but certainly not SoCal.

I'm in real estate and am biased, but we are seeing a correction right now...We won't see 50% or anything like that, but prices have gone down in most every market. There will not be a melt down...too many have enormous equity in their homes and very low interest rates.

Will those that bought in the last two years be under water....yup! The question is will they walk away? So many walked away from 2009-2013, I have always wondered if that would change the outlook of those that let their homes go or file BK. In the old days, there was a stigma about filing BK or losing their home that people had pride and did not want to be associated with that. So many did walk from 2009-2013 that when a borrower goes upside down, they may just walk this go around. I haven't seen it, but always wondered if this has changed.

 

[NicPaus]

You can't blindly buy or blindly rent. You have to have parameters for both. There are ways to win and it's mostly just common sense.

I get it. Just with apartments you don't get the best tenants always. And when there is hundreds of tenants the odds are against you.

I work on a lot of rentals for people that have lots of properties. I see the worst of it and the good. The properties I am buying are to house my loyal guys that I have worked with for very long time. Not random tenants.

I know it would never fly these days. But as a kid I remember rolling with my Dad. The rentals we had were in a rough neighborhood. Tenant would stop paying and we would go remove the front door. He would always say. Just leave it in the van for now. Most likely we will put it back on tonight when they pay. If not we will be putting in back on in a few days when there moved out. Worked every time.