Why You Can’t Afford a Home (But Blackstone Can Buy Them All)
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We’ve spent a great deal of time here in the program going over the real estate scam. I’m going to, and doing a lot of homework on this over the course of the weekend, I’m going to show you how the Blackstone real estate scam works. And again, my apologies if you get nauseous when all is said and done, because this is nauseating. Perfectly legal, perfectly legal, yet nauseating. Remember when I told you about people that have had ethical bypasses at birth. So.
Okay. Blackstone comes. Blackstone comes, they go to a new development. New developments going up. You got a home builder that’s there, a Pulte Homes or a Homes by Town or a Toll Brothers development. And they step in. They step in and they buy up everything. Everything. And again, you’re going into a development. Let’s say you’re buying four or 500 homes.
Yeah, I’m buying four or five of their homes. I’m going to pay a kish. I’m paying cash. We’re to pay for it. I’m financing anything. Let’s say the home was normally going to be priced at half a million dollars. Oh, they’re picking them up on a discount. So they’re picking them up for like three hundred thousand dollars. Now, again, again, could flip it right away. No, no, no, no, no, no, no, no, no, no, no, no, no,
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You know, there’s going to be different models in every single development. But whatever, they kind of keep that development kind of looking like it’s a construction site for a period of time, period of time. OK, then what they do, then what they do, give it a year, give it a year and a half, give it two years. That home that you bought for three hundred thousand dollars, Blackstone sells that home.
to itself, another Blackstone fund for $700,000. Oh, you got comps now. Oh yeah, the neighborhoods got comps of $700,000. They’re all valued at that because they just sold $700,000. So you can’t afford it. You turn them into ridiculous rentals.
Not to mention the fact they’re now in their portfolio worth double, worth, worth double, more than double than what they spent on it. And then they can borrow against those homes and they can charge their clients. It’s quite the racket that they’ve got going. Perfectly legal.
Unfortunately. Watchdog on wallstreet.com.
