https://twitter.com/APhilosophae/status/140243426

Cultural Husbandry

@APhilosophae

Thread.

Blackrock is buying every single family house they can find, paying 20-50% above asking price and outbidding normal home buyers. Why are corporations, pension funds and property investment groups buying entire neighborhoods out from under the middle class? Lets take a look. Homes are popping up on MLS and going under contract within a few hours. Blackrock, among others, are buying up thousands of new homes and entire neighborhoods.

So who is Blackrock? Only the worlds largest asset manager and the leading proponent of The Great Reset.

They're looking to redistribute -Get this- $120Trillion dollars.

The entire wealth of the worlds middle class and poor combined several times over.

As an example, a 124 new home neighborhood was bought in its entirety in Texas.

Average Americans were outbid to a tune of $32million.

Homes sold at an avg if 20% above listing.

Now the entire neighborhood is made up of SFR's. What are SFR's??

Single Family Rentals.

Now, your potential lower to middle class home owner is positioned to be a permanent renter. This matters because for the lower and middle class owning a home is the most major part of any financial success, and future upward mobility.

This is wealth redistribution, and it ain’t rich people’s wealth that’s getting redistributed. It’s normal American middle class, salt of the earth wealth heading into the hands of the worlds most powerful entities and individuals. The traditional financial vehicle gone forever.

Home equity is the main financial element that middle class families use to build wealth, and black rock, a federal reserve funded financial institution is buying up all the houses to make sure that young families can’t build wealth.

That's right!

FEDERAL RESERVE FUNDED FINANCIAL INSTITUTE.

Let that sink in for a minute. Got it?

They’re using your tax dollars to fuck over the lower and middle class, and its permanent. Not 1 Pres. administration of bullshit. This is a fundamental reorganization of society.

So where does this position the average American in 30 years when its a given that every new neighborhood is to be bought up whole so they can be utilized as SFR's? It positions them as peasants. Being poor can be temporary condition bettered by upward mobility.

In the US and other nations home ownership is often the 1st and most vital step. This can provide for generational wealth and success. But as permanent, guaranteed renters you're pissing away a lifetime of equity and the chance for mobility. You just become a peasant.

This is warfare. Make no doubt about it. Lloyds bank in London is doing it, as is every great financial institute across the world. This must be stopped. Its a greater threat than the slow creep of Communism, BLM or anything else you can think of COMBINED. It is a death stroke.

Black Rock, Vanguard, and State Street control 20 trillion dollars worth of assets. Blackrock alone has a 10 billion a year surplus. That means with 5-20% down they can get mortgages on 130-170k homes every year. Or they can outright buy 30k homes per year. Just Blackrock.

Now imagine every major institute doing this, because they are. It can be such a fast sweeping action that 30yrs may be overshooting it. They may accomplish feudalism in 15 years.

People will say "They can't just piss away money on buying tens of thousands of houses that are all at a loss."

WRONG. YOU AND I CANT DO THAT.

They are fronting the federal reserve, and are financed by an endless stream of freshly created fiat money.

And whats the global reserve currency???? Oh ya… green funny money.

You may ask "Suppose the banks wont finance new housing?"

Or

"But Companies are buying them for way above asking price, can it last?"

Well, the banks are controlled by and in bed with the same cabal buying everything up. You think this will be corrected by market forces when it is a financial and political pincher movement pushed by the same cabal that stole the 2020 election & hid COVID Truth?

You are fucked.

cont:

>>13866517

https://www.wsj.com/articles/invitation-rockpoint-forge-1-billion-rental-home-venture-11602067500?mod=article_inline

America’s Largest Landlord Adds $1 Billion for Its House Hunt

Agreement between Invitation, Rockpoint will add enough cash to purchase about 3,500 more homes

https://nypost.com/2020/07/18/corporations-are-buying-houses-robbing-families-of-american-dream/amp/

How corporations are buying up houses — robbing families of the American Dream

By Larry Getlen

July 18, 2020

https://www.wsj.com/articles/meet-your-new-landlord-wall-street-1500647417?mod=article_inline

Meet Your New Landlord: Wall Street

Big investors transform suburban neighborhoods by buying up single-family homes and renting them out

https://www.corporateletscompany.co.uk/lloyds-bank-plans-to-become-private-landlord

Lloyds Bank plans to become private landlord

Financial times • Mar 08, 2021

Initiative will involve buying and renting out new and existing housing stock across the UK

2020

https://nypost.com/2020/07/18/corporations-are-buying-houses-robbing-families-of-american-dream/amp/

>>13866517

>>13866518

How corporations are buying up houses — robbing families of the American Dream

By Larry Getlen

July 18, 2020

Homes in Spring Hill, Tenn., have quickly been bought up by corporations, their rents raised.

Luke Sharrett

One morning in 2012, Phoenix real-estate developer Geoff Jacobs was playing golf when he got a surprising phone call.

One of his employees, trying to bid on a house they wanted at auction, told him the price had reached their agreed-upon ceiling of $85,000 — a rare occurrence, since they usually snagged the homes they wanted without competition.

Jacobs told his employee to go up to $87,000. But the price kept rising.

“The price jumped to $90,000. Then $95,000. The home wound up selling for about $100,000,” writes Ryan Dezember in his new book,

“Underwater: How Our American Dream of Homeownership Became a Nightmare” (Thomas Dunne Books), out now.

'''“Jacobs was bewildered. Who was this aggressive bidder? By the end of the day, he had a name. The bidder was from an outfit called Invitation Homes.”

Invitation Homes, it turned out, was owned by Blackstone Group, the world’s largest real-estate investor. Created after a company called Treehouse Group was folded into Blackstone, then renamed in 2012, Invitation Homes was on a $10 billion spree, purchasing $150 million worth of houses per week.'''

'''“At an auction in Sacramento, a house flipper named Ryan Heck was bewildered by a bidder who bought every house that hit the block,” Dezember writes, noting that the bidder went one dollar over every other bid until the other bidders conceded.

Since 2010, 700 houses in Spring Hill, Tenn., have been purchased by just four companies, who together own about 5 percent of the houses in the town.'''

Luke Sharrett

“Neither Heck nor the other regulars recognized the dollar-over guy. It turned out he was with an out-of-town concern called Treehouse and had instructions to buy everything that cost less than what it would cost to build a similar house. Every house auctioned that day fit the bill.”

Moving forward, Heck tried to compete, sometimes even peeking over other bidders’ shoulders to “run the dollar-over routine on them.” But he was outmatched.

“He had a handful of cashier’s checks,” Dezember writes. “The new guys had duffle bags full.”

cont:

>>13866517

>>13866518

>>13866546

cont:

>>13866517 (You)

>>13866518 (You)

‘Underwater” describes how, in the wake of the 2008 financial crisis, corporations began buying suburban houses en masse and then renting them out, often for more than residents would have otherwise paid in rent or mortgage.

This has become so common that, while the phenomenon “didn’t exist a decade ago,” corporations bought one out of every 10 suburban homes sold in 2018.

2020 and beyond is on steroids as ALL HOMES are being gobbled up, then rented for high rates

Corporate homeownership can not only subject tenants to higher living costs, but often destroys their ability to buy these homes themselves, as companies pay top dollar to take them off the market.

As a result, America is quickly becoming a renter nation.

“Between 2006 and 2016, when the homeownership rate fell to its lowest level in fifty years, the number of renters grew by about a quarter,” Dezember writes.

Rich investors like Warren Buffett (left) and B.W. Hughes are buying up many of the single-family homes that have long sustained the US middle class.

Getty Images (2)

While he notes that companies own around 300,000 US homes so far, this is just the tip of the iceberg, as they’re wealthy enough to buy, and tech-savvy enough to manage, “multiples more” with “ruthless efficiency.”

cont:

>>13866555

>>13866517

>>13866518

>>13866546

cont: https://nypost.com/2020/07/18/corporations-are-buying-houses-robbing-families-of-american-dream/

These companies aren’t just depriving potential homeowners of a place to call their own, he writes: they’re destroying the ability for thousands of middle-class American families to accumulate wealth.

Home-price appreciation has historically been how Americans achieve financial prosperity,” Dezember writes. “Unlike stocks and bonds, ownership of which is concentrated at the top, houses are widely held. Roughly half of housing wealth is owned by America’s middle class.”

The bonanza really took off in 2011, when Morgan Stanley issued a report called “A Rentership Society.” With over 1.6 million foreclosed homes in the United States and more on the way, the report forecast “a surge in the number of renters and a potentially massive opportunity for investors to convert the glut of repossessed homes into rental properties.”

America’s investment managers were all in. By 2012, “more than $1 billion had been raised by investors for the purpose of doing just that. Some of the biggest names in finance were hoarding houses.”

Individual investors were soon mostly gone or absorbed into larger companies with investors like Warren Buffett, KKR of “Barbarians at the Gate” fame, and investment behemoth The Carlyle Group. Heck himself wound up joining American Homes 4 Rent, which was founded by billionaire self-storage magnate B. Wayne Hughes, and would own about 48,000 houses by the end of 2016. There is even a lobbying organization, the National Rental Home Council, to look after their interests in the government, such as defeating rent-control laws.

As the industry grew, foreclosure auctions in certain cities became major affairs. The first Tuesday of every month is auction day throughout Georgia, and corporate homebuyers fly in “for what was known among investors as Super Tuesday.”

“Heck and others of B. Wayne’s bidders would gather at a Sheraton Hotel the evening before, and divvy up $20 million or so of cashiers checks,” Dezember writes.

Their mission was to buy homes near good schools that families would feel comfortable in, nothing older than 20 years or smaller than three bedrooms and two bathrooms.

The industry’s ideal buyer was well-defined. Dezember notes that a company called Progress Residential, which owned around 20,000 homes, sought to provide “an aspirational living experience to tenants who were typically about 38 years old and married, with a child or two, annual income of about $88,000, less-than-stellar FICO credit scores around 665, and a hobbling $45,000 of debt. If they wanted to live the middle-class lifestyle to which they were accustomed, they’d have to rent.”

Buying foreclosed homes had its pitfalls, as buyers couldn’t see inside the homes before the purchase. While occasionally they’d get a treat, like marble countertops, often the surprises were more horrific.

“There were wild stories,” Dezember writes. “A corpse in the Carolinas. Basement marijuana farms. A turnover crew that renovated the wrong house in California, surprising a family just back from vacation with a new kitchen and news that their possessions were in a landfill.”

As investors realized the extent of their gold mine, they branched out beyond simply buying foreclosures and hit the open market, competing with everyday homebuyers.

As more corporations buy up homes, they are also forcing up rental prices, making it harder for Americans to save — and eventually buy a home themselves.

cont:

>>13866557

>>13866555

>>13866517

>>13866518

>>13866546

cont: https://nypost.com/2020/07/18/corporations-are-buying-houses-robbing-families-of-american-dream/

Dezember recalls a three-bedroom, two-bath home in Spring Hill, Tennessee, that went on the market in April 2017. In the strong, fast-growing market, the seller had four bids on the house within hours.

“The high bid of $208,000 came from a couple with a child looking for their first house,” Dezember writes. “American Homes 4 Rent matched their offer, all cash.”

American Homes got the house, the seventh it had purchased on that street.

In fact, since 2010, 700 houses in Spring Hill have been purchased by just four companies, including American Homes 4 Rent and Progress Residential, Dezember writes. Together, the four owned about 5 percent of the houses in the town.

As a result, rents skyrocketed. When Dezember visited with the town’s vice mayor, Bruce Hull, in April 2017, he was told that, “It hasn’t been that long since you could get a three-bedroom, two-bath for $1,000 a month.”

Those houses were now closer to $1,800 a month, and this was by design.

At a real-estate investing conference, American Homes CEO David Singelyn said that the average income for applicants to his company’s homes had risen from $86,000 to $91,000 in one year, and that this was a sign that “rents had room to rise,” Dezember writes.

“This is a choice they make to pay rent, and their wherewithal to pay rent today as well as pay rent in the future, with increases, is sufficient,” Singelyn said. “It’s just up to us to educate tenants on a new way, that there will be annual rent increases.”

“American Homes raised [their tenants’] rent by hundreds of dollars a month with little notice,” Dezember writes.

And since the company had bought so many homes in the area, “there wasn’t much-disgruntled tenants could do but pay up if they wanted to rent in Spring Hill and keep their kids in its top-rated schools.”

One Spring Hill man’s rent had grown by 35 percent over three years after American Homes 4 Rent bought the house he lived in.

“He and his wife wrote to the company repeatedly to appeal for more modest increases. There was no response.

“Not long after they signed [their lease], American Homes responded to their earlier pleas and knocked $20 off the monthly rent.”

On a large scale, the trend of corporations buying up homes and renting them out could have a drastic long-term effect on the ability of many families to own a piece of the American Dream.

“Many Americans save money only unintentionally, when they make their mortgage payments each month and accrue equity in their homes,” Dezember writes.

“If homeownership falls out of fashion for even a generation, there could be dire economic consequences unless renters become diligent savers and prudent investors. If that happened on a grand scale, it would be as momentous a shift in American behavior as abandoning homeownership en masse.”

>>13866517

>>13866518

>>13866546

>>13866555

>>13866557

>>13866562

Thread 5:46 AM · Jun 9, 2021

https://twitter.com/JDVance1/status/1402608156254117894

https://twitter.com/APhilosophae/status/1402434266970140676

Internet Dad Mike Cernovich Retweeted

J.D. Vance

@JDVance1

Blackrock is pursuing an investment strategy that will make it harder for young Americans to own homes. The Left will ignore this, because Blackrock has committed to "racial audits" and other diversity BS.

https://twitter.com/APhilosophae/status/1402434266970140676

J.D. Vance

@JDVance1

·

10h

Replying to

@JDVance1

Woke capitalism: culture war against your values with one hand, robbing you blind with the other.

J.D. Vance

@JDVance1

·

10h

A real estate agent in Cincy told me it’s nearly impossible for first time buyers to get homes right now. They need to waive inspections and pay 20-30 percent above asking. Most people simply can’t do that.

Jordan

@realjordan_M

·

10h

Replying to

@JDVance1

Someone needs some attention today. Here’s the truth…most people don’t know who Blackrock is and if they do they have no idea what their investment strategy is. You’re right about making it difficult for people to buy houses though.

john mellow • wealth tax now

@mellowfever

·

10h

Replying to

@JDVance1

yeah dude the left loves blackrock

Andrew Kloster

@ARKloster

·

10h

Replying to

@JDVance1

This is a civil rights issue, and a national security one.

Housing speculation is largely unregulated in this country, unlike many other places. We should take Switzerland as a model.

J.D. Vance

@JDVance1

·

10h

Absolutely.

Jinx in TN

@grrenshaw

·

10h

Replying to

@JDVance1

In Nashville the short term rental industry has decimated the housing market.

One powerful advocate for investors like Blackrock who buy up houses & condos for Airbnbs is the Beacon Center, a hard-right libertarian think tank.

Be honest about who supports predatory capitalism.

Leaf del VOLCANO

@rafapine1

·

10h

Replying to

@JDVance1

Im seeing insane price increases in the neighborhood my wife and I bought our starter home in just 4 years ago. I feel terrible for young couples… they’ll be stuck renting for years to come. #Bitcoin is the only solution i can find for the common man.

Derek Vasselin

@DerekJVasselin

·

10h

Replying to

@JDVance1

No one seems to be connecting the dots to the Fed's insanely low interest rates.

Only part of the problem, but real estate is one of the few places left they can make a decent return.

Tom GFY

@tjerubbaal

·

10h

Replying to

@JDVance1

and

@APhilosophae

"You'll own nothing.

You will be happy."

Brian Knotts

@brianknotts

·

10h

Replying to

@JDVance1

They really are evil.

ClevelandCurmudgeon

@clvlandcurmudgn

·

9h

Replying to

@JDVance1

and

@APhilosophae

California money and possibly hedge funds have infiltrated auctions as well. Cuyahoga county auctions used to be held at the courthouse. Some banks would send an in-person proxy to buy back houses. Now anyone in the US can log on to the auction site and outbid locals.

>>13866590

>>13866517

https://www.financialsamurai.com/institutional-real-estate-investors/

If You Can’t Beat Institutional Real Estate Investors, Join Them

Updated: 06/09/2021 by Financial Samurai 30 Comments

A recent WSJ piece entitled, If You Sell Your House, The Buyer Might Be A Pension Fund, caused some commotion. The article highlighted how competition is heating up for single family homes due to demand from institutional real estate investors.

When I read the article, I was surprised to see Fundrise, my favorite real estate investing platform, mentioned in the second paragraph. Usually, you hear institutional real estate investors like BlackRock in the news. The article is behind a paywall, but here’s the snippet the WSJ allows non-subscribers to read.

A bidding war broke out this winter at a new subdivision north of Houston. But the prize this time was the entire subdivision, not just a single suburban house, illustrating the rise of big investors as a potent new force in the U.S. housing market.

D.R. Horton Inc. built 124 houses in Conroe, Texas, rented them out and then put the whole community, Amber Pines at Fosters Ridge, on the block. A Who’s Who of investors and home-rental firms flocked to the December sale. The winning $32 million bid came from an online property-investing platform, Fundrise LLC, which manages more than $1 billion on behalf of about 150,000 individuals.

The country’s most prolific home builder booked roughly twice what it typically makes selling houses to the middle class—an encouraging debut in the business of selling entire neighborhoods to investors.

“We certainly wouldn’t expect every single-family community we sell to sell at a 50% gross margin,” the builder’s finance chief, Bill Wheat, said at a recent investor conference.

Thoughts About The Purchase From Fundrise

If you are an investor on the Fundrise platform, you ideally want Fundrise to pay as little as possible for a property in order for you to earn the biggest return possible. Therefore, although $32 million is only a small portion of the ~$1 billion Fundrise manages, paying more for what D.R. Horton normally gets is worth inquiring about.

As a result, I asked Fundrise’s CEO, Ben Miller, to share their side of the story as competition from institutional real estate investors heats up. I’ll then share my thoughts on why you may want to invest with institutional real estate investors. Here’s Ben.

The State Of Single Family Rentals (SFRs)

While the Wall Street Journal piece does a good job of highlighting several key trends, its depiction of the D.R. Horton deal in particular is limited.

There has been rapidly growing demand for SFRs across the country, particularly in the South and Southeast. Demand is driven primarily by demographic changes, i.e. millennials starting families. There are also affordability constraints as there are more people moving away from small apartments in expensive cities to larger homes with yards.

This trend falls squarely into our primary investment strategy of identifying long-term macroeconomic growth drivers. COVID dramatically such a trend.

Simultaneously, there’s chronic under-supply of single family homes in America. It is driven in part by burdensome regulation. And to some extent, the lasting impact of the housing collapse in 2008 has also cut supply short. The issue of under-supply was exacerbated by COVID. Most builders pulled back on building new homes in the beginning of 2020.

All of these factors have made SFRs exceptionally attractive investment assets. Which has predictably led to a growing appetite for SFRs from large traditional investment managers.

On the D.R. Horton Deal In Particular

The Amber Pines community is a purpose-built rental community created by D.R. Horton. The community was already fully leased and occupied when it was brought to market in a single sale of 124-homes. These were not homes available for sale to individual home buyers.

cont:

>>13866622

>>13866590

>>13866517

cont:https://www.financialsamurai.com/institutional-real-estate-investors/

Let me give a brief peek behind the curtain of how the deal was done. The sale was managed through a top national brokerage firm. The auction process was highly competitive with several top real estate investment firms bidding alongside Fundrise.

In the end, we bid approximately 1-2% more than the other leading bidders. In other words, we didn’t overpay based on institutional real estate investor demand. Based on verbal feedback from the seller, we believe the most important differentiating factor was our ability to close quickly on the transaction.

Our conviction around the SFR asset class and our ability to execute an all-cash deal directly from the balance sheet of our eREITs, allowed us to commit to closing in significantly less time than the other potential buyers.

So, how do we feel about the deal in hindsight?

Not only was the community fully leased at closing, but we’ve already experienced year-over-year rent growth on lease renewals of approximately 2-3x industry norms for residential assets.

While we expected strong rent growth when we made the investment, these numbers have exceeded our underwritten expectations. This makes us feel even more bullish on the quality of the acquisition.

We feel very good about the price we were able to negotiate on behalf of our investors. Here is a video of the Amber Pines acquisition if you’re curious. Amber Pines is in Conroe, Texas about 40 miles north of Houston.

Note from Sam: Coming from San Francisco, it’s amazing to me the average price per a home in the Amber Pines community is only $258,064 and already all rented out. I feel like “expensive capital” from the coasts is going to continue buying heartland real estate to earn higher rental yields. Further, the median priced home in America is now ~$370,000, putting these homes Fundrise bought at a 30% discount.

How We Think About Growth Investments More Broadly

As we often share with our investors (including earlier this month), we tend to focus on the long-term drivers of macroeconomic growth. We seek to understand how that growth is likely to manifest in various kinds of real estate assets.

In this case, we see the increasing demand and subsequent growth in rents for well-located, newly-built SFR homes as experiencing outsized growth relative to most other real estate assets. We also believe there’s significant downside risk mitigation from the ongoing supply/demand imbalance of relatively affordably priced newly built homes in these high population growth markets.

We were fortunate to be one of the few groups to enter the SFR market almost immediately following the initial onset of the pandemic. This allowed us to gain strong traction with the country’s top home builders. It also allowed us to establish ourselves as one of the more dominant buyers in the SFR space. Even as many of the traditional big name institutional investors continue to struggle to gain a foothold.

cont:

>>13866629

>>13866622

>>13866590

>>13866517

cont:https://www.financialsamurai.com/institutional-real-estate-investors/

Over time, as is often the case, we expect this early mover advantage will allow us to gain more scale, faster. In turn, this should lead to unique opportunities to capitalize on our economies of scale.

What It Means For Fundrise Investors

We believe the D.R. Horton deal demonstrates how Fundrise investors are uniquely poised to benefit directly from one of the most attractive real estate asset classes today. Fundrise collectively competes against (and beats) the largest institutional investors in the world—all at low costs and at the touch of a button.

None of this would’ve been possible 10 years ago. That’s why Fundrise exists. We enable regular investors to participate in the investment of real estate investment projects once reserved for institutional real estate investors or high net worth individuals. Come join a community of over 150,000 investors and see for yourself what we have to offer.

Sam’s Thoughts On The Real Estate Demand Dynamic

It is clear, demand for single family homes is robust across the country. I believe there will be a multi-year real estate bull market due to positive demographic trends, an accommodative Fed, and a strong economic recovery. As a result, I’ve allocated roughly 40% of my net worth towards real estate.

Although it may be frustrating for individuals to compete against institutional real estate investors, be strategic about buying your next home.

You just have to find single family homes for sale that are not part of a planned community. That shouldn’t be a problem because many single family homes are owned by individuals. In San Francisco, I’ve never come across a seller or competing buyer who was an institutional real estate investor.

From the institutional real estate investor’s point of view, it needs to search for communities and larger projects to buy rather than individual single family homes. It’s not resource efficient to buy a single family home one-by-one if you’ve got a large amount of capital.

Can you imagine Fundrise trying to negotiate 124 separate single family home transactions to allocate $32 million in capital? What a PITA! The transaction documents alone would be overwhelming.

A Hybrid Way To Buy Real Estate

I think a middle ground solution is to own your primary residence and then allocate some capital with an institutional real estate investor like Fundrise for exposure. You can obviously also buy publicly traded REITs, real estate-related stocks, and rental properties as well. For example, I also own O, OHI, Home Depot, and several rentals.

Just know that during the last downturn in March 2020, publicly-traded REITs like VNQ fell even more than stocks. Therefore, if you’re looking to buy publicly-traded REITs to decrease your portfolio’s volatility, it may not work. With thee rental properties in San Francisco, I’m at my limit for how much I want to comfortably own. Hence, my desire to diversify into the heartland.

Remember, you’re not really long real estate if you only own one home.

Many people have discovered this reality during the pandemic and have decided not to sell as a result. They know that if they sell, they would then have to then compete to buy a new home or pay higher rents. As a result, housing inventory is down double digits year over year.

Invest In Your Real Estate Edge Accordingly

Personally, I feel I have an edge when it comes to investing in San Francisco real estate. However, I have minimal edge when it comes to investing in heartland real estate. I just believe the overall trend will be positive. Therefore, I’m glad to allocate capital to an institutional real estate investor who does have the expertise.

I plan to ride the real estate wave for as long as possible with my hybrid real estate ownership structure. In my opinion, the best holding period for real estate is forever. But sometimes life can be very unpredictable.

cont:

>>13866636

>>13866629

>>13866622

>>13866590

>>13866517

cont:https://www.financialsamurai.com/institutional-real-estate-investors/

If you are frustrated with domestic institutional real estate investors competing for real estate, you can always join them. Access is one of the main reasons real estate crowdfunding platforms exist. The platforms also do the due diligence and heavy lifting for you so you don’t have to.

After buying another single family home in 2020, my remaining real estate crowdfunding investments account for about 10% of my overall real estate exposure. It was about 16% before my latest SFH purchase. Surgically allocating capital with an institutional real estate investor is different from going all-in on a single family home with a mortgage.

Once I get a particular rental property remodel done, I will likely sell it after my tenants move. Then I’ll roll the proceeds into a diversified eREIT or publicly-traded REIT to earn 100% passive income.

I just paid my property tax bill and it is getting to be uncomfortably large.

Beware Of The Foreign Buyer

Finally, let’s talk about the foreign buyer looking to buy up American property. Eventually, global economies will open up again. If you think competition from domestic institutional real estate investors is fierce, just wait until we start seeing international money re-enter our system.

Take a look at the dollar-volume of existing home purchases by foreign buyers. Notice how the dollar volume peaked in 2017 at $153 billion. It has trended down until March 2020, with likely continued low volume up to now.

The main reason is due to stricter capital controls, especially from China, the #1 foreign buyer over the last several years. There were also many additional visa restrictions during the Trump administration.

However, as a forward-looking investor, there is a high likelihood foreign capital will return. Like us, foreigners also have pent-up savings. Foreign equities are also at or near all-time highs. Further, U.S. real estate is inexpensive compared to many other international real estate markets.

Once fully vaccinated, take a visit to London, Hong Kong, Singapore, Paris, Dubai, or Mumbai. Once there, check out some real estate listings. You will realize how affordable U.S. real estate is, especially when compared to our income opportunities.

Don’t let foreigners price you out of your own neighborhood like what’s been happening in Auckland, Vancouver, and a bunch of other cities. As an American, I want to own as much U.S. real estate as comfortably possible before foreigners bid up our prices. That day is coming once again.

Build Wealth With Institutional Real Estate Investors

Real estate is my favorite way to achieve financial freedom because it is a tangible asset that is less volatile, provides utility, and generates income. By the time I was 30, I had bought two properties in San Francisco and one property in Lake Tahoe. These properties now generate a significant amount of mostly passive income.

In 2016, I started diversifying into heartland real estate to take advantage of lower valuations and higher cap rates. I did so by investing $810,000 with real estate crowdfunding platforms. With interest rates down, the value of cash flow is up. Further, the pandemic has made working from home more common.

Take a look at Fundrise, my favorite real estate investing platform for both accredited and non-accredited investors alike. Anybody can invest with institutional real estate investors today.

Fundrise has been around since 2012 and has consistently generated steady historical returns, even during down years in the stock market. For most people, investing in a diversified real estate fund is one of the best ways to gain real estate exposure.

Readers, to hedge against institutional real estate investor competition, why not just invest with them? For example, I knew I could’t compete with Kleiner Perkins in VC, so I invested in their fund. Do you believe the amount of capital seeking U.S. real estate will increase due to the return of foreign buyers?

Drone footage of Amber Pines at Fosters Ridge

Fundrise

3.72K subscribers

This investment fits into our broader strategy to invest in affordably-priced rental housing across the Sunbelt — an asset class that has demonstrated stability through the pandemic while being positioned for outsized growth in the coming years.

www.fundrise.com/oc

https://youtu.be/mTyno2ZmX1A

>>13866517

12:27 PM · Jun 9, 2021

https://twitter.com/APhilosophae/status/1402709027377795074

Pinned Tweet

CulturalHusbandry

@APhilosophae

If you've just found me due to my Blackrock thread, I ask that you spend some time over the next week or two reading and considering fully 'A Mother's Wit'. The genesis of good government is strong society. Globally, nations fail in one aspect because of the other.

CulturalHusbandry

@APhilosophae

The most important thing you can read this weekend.

https://culturalhusbandry.substack.com/p/a-mothers-wit

>>13866656

>>13866517

mother wit

noun Innate intelligence or common sense.

noun Native wit; common sense.

noun Inborn intelligence; innate good sense.

noun sound practical judgment

hypernyms

discernment

judgement

sagaciousness

sagacity

hyponyms

logic

nous

road sense

>>13866689

>>13866656

>>13866517

ʇǝoԀǝʞoɹᙠ

@BrokePoetess

·

3h

Replying to

@APhilosophae

Found you due to that thread and followed. I knew there was more going on than just "pandemic" buying. Houses were snatched up in a heartbeat in all areas I was looking at.

Ladybug 🇺🇸

@loripek68

·

2h

Replying to

@APhilosophae

I just found you and I’m concerned!

Happy American! VoteBlue heartBlue heartFlag of United States

@Happy30067682

·

11m

Replying to

@APhilosophae

I’m in So Cal and I have seen nothing like this! Multiple offers on most listings and just by ordinary young couples and people moving up! Some investor offers but not near every offer. Maybe 10%?

he get's it

and notice he ain't a white man

https://twitter.com/BlameJews/status/1402716270659661824

Jordan

@BlameJews

Joined March 2021

Jordan

@BlameJews

Replying to

@APhilosophae

Its jews. Saved you years of research. Whats jews? All of it.

https://twitter.com/BlameJews/status/1402716810063933441

https://twitter.com/BlameJews/status/1402718157257666561

FINAL WARNING: A HISTORY OF THE NEW WORLD ORDER

http://www.fourwinds10.com/siterun_data/government/new_world_order/news.php?q=1298664642

>>13866731

>he get's it

> and notice he ain't a white man

>https://twitter.com/BlameJews/status/1402716270659661824

>Jordan

>@BlameJews

>Joined March 2021

>Jordan

>@BlameJews

>Replying to

>@APhilosophae

Its jews. Saved you years of research. Whats jews? All of it.

>https://twitter.com/BlameJews/status/1402716810063933441

>https://twitter.com/BlameJews/status/1402718157257666561

FINAL WARNING: A HISTORY OF THE NEW WORLD ORDER

>http://www.fourwinds10.com/siterun_data/government/new_world_order/news.php?q=1298664642

>>13866737

>>13866731

thread

https://twitter.com/BlameJews/status/1402716270659661824

Jordan

@BlameJews

Replying to

@APhilosophae

Its jews. Saved you years of research. Whats jews? All of it.

https://twitter.com/APhilosophae/status/1402709027377795074