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hey there so uh thought I I I wanted to go over this uh this article I saw today I uh I wanted to preface it by saying I'm I've as a real estate agent I've worked with plenty of investors in the past and I don't I don't feel uh any sort of Shame for that and I don't think that the investors I worked with were were bad in any way for what they were doing I think that the uh the I think that somehow the economy has changed though I don't believe that there were um Big Wall Street Bank uh bankers and backers um investing in in single family homes back when we were doing it I don't believe that um I I don't believe that uh it was on the scale that it is now and when I read article that say you know investor or institutional home ownership is so small of a percentage of the overall homes it doesn't matter uh I've I've read that and I've been quite suspect because just what I see out in the marketplace uh leads me to believe that things are some things like really wrong um and I do see now investing like the the massive investors of the large investors um and it's much more sophisticated than it ever was when we did it you know uh now it's not uncommon for someone to buy a house in a neighborhood then have his friend buy a house in the neighborhood and then they buy four more houses in the neighborhood and just basically just run up the prices of the homes um so it's it's much more predatory it's much more um it's much more dirty in my opinion than it used to be um but I did want to put that out there to start uh because I I don't want you to have any illusions that I don't I don't work with investors or anything like that so let let's get into the article here I thought this was one of the more fascinating articles and I think which should really give us pause um all of us as to this home ownership crisis and what's really going on the headline investors bought more than half of all homes sold last year in these 21 DFW zip codes so this is in Dallas Fort Worth investors bought more than half of all the homes sold in 21 zip codes that's a that's a mass massive number of homes and so let me get let me get over here and go down here it says according to data from the Real Estate research form C logic nearly one out of every three homes sold in the Dallas Fort Worth area in August was bought by an investor according to CBS News or CBS 11 News analysis of data from cor logic last year investors purchased more than 50% of all homes sold in 21 ZIP codes in the Dallas Fort Worth area now look I mean we've got this massive issue right now where people say that we need to just build more homes okay we need to build more single family homes if we just build more homes the prices will go down so it's a supply issue and I've said along with others that it's not a supply issue in the sense who do you know that like of your five friends do any of them not own two houses or more it it's basically investors have just massively purchased homes and everyone's become an investor I'm not I'm not here to look down on people or anything like that whatever you want to do is fine but I think that it's gotten to the point where easy money has allowed an easy money being you know interest rates in the twos and the threes has caused a massive uh you know a massive have versus hav Nots those that can afford a mortgage okay are crushing people who uh could have afforded a mortgage when prices were lower but now have no shot at many of of these homes says this is then then they have a quote from an investor it says this is prime time for these areas to gentrify now gentrification is not great if you live in the neighborhood right they're pushing you out U and so it says Joe Boston a midsize home investor Boston currently owns 17 properties many on the east side of Fort Worth while large corporation while large corporate investors often keep properties as rentals Boston typically buys a property then flips it right so um so does it make a difference if large corporations are buying single family homes and renting them out to me the answer is no it's the same thing he says I think we are one of the saviors of communities a lot of the time we were frowned upon because of the profit but we were behind the scenes improving these neighborhoods and and what do you expect this fellow to say I'm a terrible person and I'm happily raising the prices of homes for everyone do you really expect him to say that no come on come on so um and you know I I

just 17 properties just keep that in mind earlier this year at the US Senate hearing Democratic law lawmakers called out large corporation large corporate investors for gobbling up homes during the pandemic especially in minority neighborhoods now look it doesn't matter where they're gobbling up homes okay you don't need to look at it as a minority thing you can look at it simply as people can only afford so much and they typically move to places where they can afford and if they can't afford those places they don't move there um but they have nowhere else to go so it says um lawmakers testified in some cases homes bought by corporate investors could have gone to first-time home bars helping to close the the racial home ownership Gap well let's not again don't worry about the racial home ownership Gap um investors could homes bought by corporate investors could have gone to firsttime home buyers and that's the issue is look if it's a supply if it's truly a supply issue and they talk about it being affordable homes there's no affordable homes but what's happening is the guys go in they flip they fix these houses up there's nothing wrong with fixing the house up and selling it for a profit okay that's been done for 100 years in real estate the scale and the scope of what's going on is what's never never been seen before for instance of of the 21 ZIP codes in north Texas where investors accounted for more than 50% of home sales 20 of the 21 are in majority Black Or Hispanic neighborhoods based on US Census Data and so you know I don't have a solution to this issue okay I think it's going to weed itself out as interest rates make it impossible for even investors uh to purchase single family homes um a lot of people are calling for a crash in the market I don't I don't see a crash in the market and part of the reason because of what we see here we see that when prices get to a certain point in any neighborhood the investors swoop in like locusts like Locust they will come in and they will Fix and Flip homes all day long um you may say well appraisers won't allow that to happen you know the banks aren't going to allow no they are all part of it and I'm not criticizing appraisers or anything else but if you think that an appraiser is going to stop an appraisal uh that's not that's not it's not how appraisals work it's not how appraisals work so um again I don't want to vilify you know everyone okay but I'm just seeing this Mass massive and and we look during the pandemic um I had a house listed for sale the first offer was from Black Rock um or a subsidiary of Black Rock I mean massive massive home purchases occurred and um and they're still and while they may have backed off a little bit you know the local investor I mean we talk about this small mom and popop investor that guy there owns 17 houses okay and how many other how many other mom and pop places own 50 100 houses in a particular area it's very problematic and I think that at some point in time we need to take a look at this and and and say you know what's going on here um throw the throw the race throw the race out of it just look at economics if you have a family any color family that goes and both parents work you know can't afford a house anywhere in the city except for the most awful areas that's not good for the population it's it's a problem within the community at that point right we can't build strong communities when we can't have people living in the homes can't afford the homes they're living in so I just want I just want you to maybe notice that when somebody says that investors only own a small po small amount of all the single family homes in the United States um I think that's I think I think it's wrong I mean even in this space here 21 zip codes more than 50% of the homes purchased that is not a small amount of homes with that I'm going to head on out thank you for watching thank you for listening and I'll catch you on the next one