Anyone seen Blackrock impact on housing and which areas?

115 Replies

Originally posted by @Eric Bilderback :

@Amie Peralta

I am picking up what you are laying down sister!  LOL

The game is rigged.  Betting against the Blackrock etc is like betting against a casino where the fix is in.  You will lose 99% of the time.  If you want to know the best way to invest take the most cynical possible position and double down on it.  We used to to have an elite that fought for our country in the military and believed in everyday working people.  I don't think you can argue that that is the case any longer.  Now our elite use their privilege to start some damn hedge fund that adds no value and I would argue hurts working folks.  The worst part is they aren't that smart and I don't think they are even legitimate but while I disagree with them 100% morally I do recognize their power.  So keep buying good real estate with low interest and fixed debt, "if you can't beat them join them."

One last nugget- I read an interesting article a while back about how Blackrock lobbies for green energy making manufacturing expensive in the US.  Then they go to China and Asia and pollute the hell out of everything so they can sell cheap crap at Wal-Mart to all the sorry sacks that are probably living in our apartments, its a shame.  Blackrock and the rest of the greed heads are disgusting people who put money above all else every time. 

How else are they going to pay for their 30 million dollar condo in NYC and their 50 million dollar home in the Hamptons ??  everyone has to eat.

Originally posted by @Tony Kim :
Originally posted by @Amie Peralta:
Originally posted by @Tony Kim:
Originally posted by @Amie Peralta:
Originally posted by @Tony Kim:
Originally posted by @Joe Splitrock:
Originally posted by @Amie Peralta:
Originally posted by @Joe Splitrock:

It is trendy to hate corporations, but the majority of the equity in these companies is owned by individuals, retirement funds, government pensions, mutual funds, insurance companies, etc. It is true that many poorer Americans don't have this type of ownership, but they vote for politicians who promise them handouts. They are basically paid off and in the process they are held in poverty. The politicians are in the pocket of the corporations, so they are paid off too. Either directly or through enrichment of their families.

Maybe BlackStone is buying houses in volume, but there are lots of people with money buying houses. That doesn't mean the average person can't do the same. There are two ways to look at this: 

1. You can follow BlackStone into the markets they invest in. They are likely to drive up values and you can enjoy the ride up with them. Being small can even give you a competitive advantage through service specialty experiences. 

2. You can take a contrarian approach and look for untapped markets where BlackStone or other large players don't exist. Arrive in a market before them or play in smaller markets that don't interest them.

I see a bigger threat from the technology companies, because they are controlling information. They have the power to limit free speech, focus advertising to control thought and they collect massive amounts of personal information. They also have the lobbying power to buy and control politicians, which means nothing changes. The senate holds some hearings to make it look like they are doing something, but nothing happens.

Another threat I see is when these hedge funds participate in manipulating the stock market. Driving prices up or down, short selling and high frequency trading, which is just skimming wealth off the market. None of these practices add any value to the economy. At least in the case of BlackRock buying houses, they are providing something of value - a place for people to live.

So many new topics here!  I am just going to stick with the original, though I do agree there are other important issues that you touch on.

The majority share owner of Blackrock is Merrill Lynch, at 44%. There are no retail investor owners. It could be worthwhile to know other connections of Blackrock in the global financial and government organizations, and draw some conclusions from there.  There is a lot of transparency about their intent communicated right on their website too. 

People do need a place to live.  And that is what they are banking on.

 Merrill Lynch ended up with their 49% ownership shares originally as a result of BlackRock buying Merrill Lynch investment business in 2006. BlackRock purchased out all of BOA Merrill Lynch shares in 2011 and BOA Merrill Lynch no longer has ownership. I am not sure why there would be no retail owners, since it is a publicly traded company? Can you explain how that works?

A lot of tomfoolery in this thread. No retail investors? LoL BR is one of the largest mutual fund and ETF providers, so obviously, there are a lot of retail investors that invest in their mutual funds and ETFs. But that doesn't matter to the folks who want to push their conspiracy theories. Also, if anyone wants to get in on the action, they're free to purchase shares of BR as it is a publicly traded company.

Agreed.  Yes, there might be some retail investors (not enough to talk about in my opinion). Look at the majority share owners and consider who actually participates in the stock market.  

https://finance.yahoo.com/quot...

'conspiracy theories' .... LOL.

So what exactly is your point? Institutional investors make up the largest portion of pretty much any blue-chip stock. And why is that?  Probably because institutional investors are the overwhelming majority of the stock market. And just because an investor is classified as institutional, that does not mean retail investors are not getting exposure. For many of these institutional investors such as public pension, corporate pensions, and the hundreds or maybe thousands of mutual funds that have BR as one of their holdings, we're talking about the investment accounts for retail investors....and a good portion of them will be regular middle-class people. 

I agree....everyone should draw their conclusions, but at least get the facts straight and not base it off of comments like "there are no retail investor owners".

My opinion is based off of facts.  My opinion is that there are *virtually* no retail investors ... people who actually buy and trade this stock.  80%+ of shares are owned by other companies.  My OPINION is that saying corporate pensions and mutual funds also having a stake is not super relevant.  A person might own some sort of stake (a tiny fraction of the already marginal 20%) through one of those vehicles, but this does not give them a voice in the agenda or strategy of the company.  You might not like my opinion, and that's fine, but really the insults are not necessary.  Have a nice day.

Your opinion is based off fairy dust.  First you said BlackRock's majority owner is Merrill Lynch at 44%. LMAO. Then you said there were no retail investors. Again incorrect. 

If you think companies like BR shouldn't do what's in the best interest of their shareholders, then of course, you're welcome to your opinion. 

If we took this logic out to some sort of conclusion then NO SFR at all should go to a landlord.. as it just raises the price to homewoners.

if there were no landlords buying SFR rentals in the mid west those homes would be worth half or less for what they are selling for today bottom line.

@Joe Splitrock Thank you for clarifying. As I stated previously this discussion has shown me that I know very little about how they operate and what they provide, I assumed they were going to try and capitalize on all the appreciation going on. But thank you for your insight.

Originally posted by @Laura Hildreth :

Another realtor in vegas advise  Blackrock is going in and bidding 10% over list on any proerties 

 Good for them. 10% premium is very mild compared to what they're doing in other parts of the country. BR execs, go ahead and order that new wallpaper you've been eyeing!

Originally posted by @Amie Peralta :
Originally posted by @Tony Kim:
Originally posted by @Amie Peralta:
Originally posted by @Tony Kim:
Originally posted by @Joe Splitrock:
Originally posted by @Amie Peralta:
Originally posted by @Joe Splitrock:

It is trendy to hate corporations, but the majority of the equity in these companies is owned by individuals, retirement funds, government pensions, mutual funds, insurance companies, etc. It is true that many poorer Americans don't have this type of ownership, but they vote for politicians who promise them handouts. They are basically paid off and in the process they are held in poverty. The politicians are in the pocket of the corporations, so they are paid off too. Either directly or through enrichment of their families.

Maybe BlackStone is buying houses in volume, but there are lots of people with money buying houses. That doesn't mean the average person can't do the same. There are two ways to look at this: 

1. You can follow BlackStone into the markets they invest in. They are likely to drive up values and you can enjoy the ride up with them. Being small can even give you a competitive advantage through service specialty experiences. 

2. You can take a contrarian approach and look for untapped markets where BlackStone or other large players don't exist. Arrive in a market before them or play in smaller markets that don't interest them.

I see a bigger threat from the technology companies, because they are controlling information. They have the power to limit free speech, focus advertising to control thought and they collect massive amounts of personal information. They also have the lobbying power to buy and control politicians, which means nothing changes. The senate holds some hearings to make it look like they are doing something, but nothing happens.

Another threat I see is when these hedge funds participate in manipulating the stock market. Driving prices up or down, short selling and high frequency trading, which is just skimming wealth off the market. None of these practices add any value to the economy. At least in the case of BlackRock buying houses, they are providing something of value - a place for people to live.

So many new topics here!  I am just going to stick with the original, though I do agree there are other important issues that you touch on.

The majority share owner of Blackrock is Merrill Lynch, at 44%. There are no retail investor owners. It could be worthwhile to know other connections of Blackrock in the global financial and government organizations, and draw some conclusions from there.  There is a lot of transparency about their intent communicated right on their website too. 

People do need a place to live.  And that is what they are banking on.

 Merrill Lynch ended up with their 49% ownership shares originally as a result of BlackRock buying Merrill Lynch investment business in 2006. BlackRock purchased out all of BOA Merrill Lynch shares in 2011 and BOA Merrill Lynch no longer has ownership. I am not sure why there would be no retail owners, since it is a publicly traded company? Can you explain how that works?

A lot of tomfoolery in this thread. No retail investors? LoL BR is one of the largest mutual fund and ETF providers, so obviously, there are a lot of retail investors that invest in their mutual funds and ETFs. But that doesn't matter to the folks who want to push their conspiracy theories. Also, if anyone wants to get in on the action, they're free to purchase shares of BR as it is a publicly traded company.

Agreed.  Yes, there might be some retail investors (not enough to talk about in my opinion). Look at the majority share owners and consider who actually participates in the stock market.  

https://finance.yahoo.com/quot...

'conspiracy theories' .... LOL.

So what exactly is your point? Institutional investors make up the largest portion of pretty much any blue-chip stock. And why is that?  Probably because institutional investors are the overwhelming majority of the stock market. And just because an investor is classified as institutional, that does not mean retail investors are not getting exposure. For many of these institutional investors such as public pension, corporate pensions, and the hundreds or maybe thousands of mutual funds that have BR as one of their holdings, we're talking about the investment accounts for retail investors....and a good portion of them will be regular middle-class people. 

I agree....everyone should draw their conclusions, but at least get the facts straight and not base it off of comments like "there are no retail investor owners".

My opinion is based off of facts.  My opinion is that there are *virtually* no retail investors ... people who actually buy and trade this stock.  80%+ of shares are owned by other companies.  My OPINION is that saying corporate pensions and mutual funds also having a stake is not super relevant.  A person might own some sort of stake (a tiny fraction of the already marginal 20%) through one of those vehicles, but this does not give them a voice in the agenda or strategy of the company.  You might not like my opinion, and that's fine, but really the insults are not necessary.  Have a nice day.

 The total institutional equity held in the entire market is around 80%. The ten largest US companies range from 70% to 85% institutional. I would argue Blackrock is statistically average. 

Institutional investors includes mutual funds, so that is part of the 80% stake. That was my point is that the "institutions" everyone seems to hate are actually made up of the average persons retirement funds. 

You are correct that when you invest in a company through a fund, you own a fractional share and do not get voting power, therefore exert no control. People who invest in funds are trying to diversify to spread risk and they have no interest in controlling the companies. They are passing their money over to someone else believing they can do a better job managing it. Argue that is right or wrong, but people do have a choice. 

I think it is also important for people to understand that Blackrock manages other peoples money, so they make money charging fees on the $7T under management. If you buy BlackRock stock, you don't own a piece of those single family homes, you get a piece of the management fees. This is different than a company like Berkshire Hathaway, which actually owns other companies.

Originally posted by @Tony Kim :
Originally posted by @Laura Hildreth:

Another realtor in vegas advise  Blackrock is going in and bidding 10% over list on any proerties 

 Good for them. 10% premium is very mild compared to what they're doing in other parts of the country. BR execs, go ahead and order that new wallpaper you've been eyeing!

 Agree. I am curious how many of the morally self righteous people in this thread would refuse to sell to Blackrock and give up 10% of profits on a home sold. I would bet money that nobody would. In fact the same investors would happily outbid an owner occupant to turn a house into a rental. It is no different other than who's pockets it is padding.

@Joe Splitrock I should fit into the “morally self righteous” standard here, since I started this thing, I’ll answer to that... Of course I would sell to anyone without discrimination and especially the highest offer. I agree everyone would do that. I still shop at Walmart and order Amazon even though I don’t believe in it. I’m more concerned about what Walmart, Amazon and especially Blackrock ends up turning us into. I do plan to stop using these services soon because I hate them. Hating Satan isn’t self righteousness. Are there some devilish things in Wall Street? Should we expose evil? Is the solution to brush Blackrock and wall street greed off as beneficial for the greater good? The main point is that Blackrock poses a great threat to first time homebuyers, new investors and the health of the market in certain major cities. A look a Blackrock leads me to believe they are positioning themselves to exercise control over people, and they are receiving federal funding. That’s concerning and I’d like to see all updates of what they are doing and where they are moving in the infrastructure space, real estate world, and how much political and social issues they’re manipulating with their position of power (controlling the most value in the world).

Originally posted by @Amie Peralta :

They are a huge reason for the increase in housing prices over the last ~18 months. They are pricing regular buyers out of markets everywhere.  It goes like this: 1) Cash buyer offer, willing to pay 10% or more above listing and above appraised value. 2) Comparables in the neighborhood rise, more sellers list at even higher prices. 3) Repeat cycle.  

In the Sacramento region, these same investors started out back in 2008 after the bubble burst and picked up properties at a discount. Before the current market, they owned over 10% of SFR in the region and that was enough to control the rental market. Rents were already crazy expensive, and now they will be worse PLUS ordinary people struggle even more to become homeowners. Traditional investors are also being priced out. The entire conversation about 'we need more affordable housing' can be attributed to the influence of these global institutions. What is their intent? Why do they need to own all of the real estate and control the market?

as a data point out in the mid west in many markets fully 40 to 50% of the SFRs at or below the median home price are owned by investors. If there were no investors in those markets and it was only the locals buying the rentals the prices would CRASH and 2% rule or more would be the norm as thats all a local investor would be willing to pay for the risks associated with those price point properties . Many of those cities back in the day when all this housing stock was built you did not have 400 unit garden apartments.. like you see on the west coast were the majority of the renters live .. in apartments NOT SFR's

@Jon Greer

Sources cited debunking the popular myth that Wall Street is driving up prices on a large scale.

https://youtu.be/WjN8Fn0qWDc

@Nate Bell I can’t click the link, and I can hardly articulate myself anymore. What I’m trying to say is Blackrock is too big. I think the government is trying to take over American independence, through corporate connections, and this will effect real estate investing by increased regulations in energy, building and landlording. If you don’t think they pose a threat, it would be nice to hear an intelligent reason. Some have differentiated between national calculations vs the impact on their local markets. This will always be the case, so this conversation must be understood to be referring to where it’s happening now, and where this could go next. No one is saying Blackrock is God and will soon effect everything it wants, just that they are making a noteworthy impact on certain markets and have a lot of momentum to do much much more and this is of interest.

@Amie Peralta

I agree with you 100% i read about the article that this fund was able to buy like 123 single homes properties somewhere in TX. I actually im putting together a fund to do exactly this but with one HUGE difference and that is to give the opportunity to practically anyone who wants to invest in big multifamily or many single homes properties like these funds and entities are doing. 

BR doesnt have enough MONEY to effect RE the way people believe they are, I don't believe. Check the data.

Potentially unrelated: From my understanding SMART MONEY isn't buying RE right now. It's all DUMB MONEY aka retail investors. At least in some areas. These areas are doomed for a correction or crash. Once this happens, please believe SMART MONEY will pour in.

Same way I invest in stocks, I'll invest in RE. That's buy into weakness, sell into strength...

I’m over the target. PLEASE everyone educate yourselves if for no other reason than shear entertainment value right now! On Revolver.news there is an article I’m reading now with links to Blackrock’s website and info about Blackrock insiders IN Biden’s White House. This stuff is so off the rails I couldn’t wait to finish the article. Please post anything you find about Blackrock manipulating the real estate market through new regulations in energy, green building standards and landlording as they have a huge agenda to make major change in all areas of society. The article is a link to conservativetreehouse.com where you’ll find this shocking update on Blackrock. Please forgive me all my google news source score keepers, I may have put one of all the non left wing news sources labeled conspiracy theorist on here. I’ll be surprised if this thread isn’t taken by the news police complaints here who are trying to shut rational conversation down.

Originally posted by @Jon Greer:

I’m over the target. PLEASE everyone educate yourselves if for no other reason than shear entertainment value right now! On Revolver.news there is an article I’m reading now with links to Blackrock’s website and info about Blackrock insiders IN Biden’s White House. This stuff is so off the rails I couldn’t wait to finish the article. Please post anything you find about Blackrock manipulating the real estate market through new regulations in energy, green building standards and landlording as they have a huge agenda to make major change in all areas of society. The article is a link to conservativetreehouse.com where you’ll find this shocking update on Blackrock. Please forgive me all my google news source score keepers, I may have put one of all the non left wing news sources labeled conspiracy theorist on here. I’ll be surprised if this thread isn’t taken by the news police complaints here who are trying to shut rational conversation down.

People should spend less time obsessing over 'left' and 'right' wing media classifications, and start looking into claims that each of them makes.  Take the time to verify facts for yourself.  It eliminates the need to identify the source with a political leaning because truth doesn't belong to a political party!  Also, independent media does a better job of citing their sources of facts - my observation.