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re: Trump looking to ban institutional buying of single-family homes

Posted on 1/7/26 at 2:41 pm to
Posted by dkreller
Laffy
Member since Jan 2009
34020 posts
Posted on 1/7/26 at 2:41 pm to
quote:

Just ban it. They get around limitations by creating smaller local subsidiary groups they own a stake in and they buy them up.

Yep. They’ll play the accounting game.
Posted by BearCrocs
Member since Aug 2013
8505 posts
Posted on 1/7/26 at 2:41 pm to
There’s a china woman who lives in CA that owns north of five houses within two blocks of my neighborhood.
Posted by stuckintexas
Austin & DFW
Member since Sep 2009
3191 posts
Posted on 1/7/26 at 2:42 pm to
quote:

The mega investors also concentrated their single family home purchases primarily in a handful of markets across the US

quote:

Dallas

I own an electrical contracting business with an office in the DFW area. One of my clients is a property manager for one of these mega investors. They hire contractors to make all initial repairs when they purchase a property, and their maintenance division handles minor stuff after that. I get 5-6 inspection reports a week from him, and he just handles the southern half of Tarrant County. He's one of about a dozen property managers for that company across the DFW counties.
Posted by BuckeyeGoon
Member since Jan 2025
1200 posts
Posted on 1/7/26 at 2:43 pm to
quote:

That’s straight up socialist.

So is telling corporations they cant add rat feces, cockroaches, or chunks of metal to canned food but we do that.

We live in a mixed economy, unless someone is advocating transitioning to a pure anarcho capitalism system I really dont care about the grandstanding every single time someone on the right wants to use the government for literally anything at all.
Posted by The_Duke
Member since Nov 2016
4419 posts
Posted on 1/7/26 at 2:44 pm to
Good Trump

(minus the blame game)


Democrats Introduce Bill Banning Hedge Funds From Owning Single-Family Homes
The bill would force hedge funds to sell all of their single-family home stock over the next 10 years.

Published December 7, 2023

LINK
This post was edited on 1/7/26 at 2:49 pm
Posted by icecreamsnowball
Member since Mar 2025
1377 posts
Posted on 1/7/26 at 2:49 pm to
Great post
Posted by lionward2014
New Orleans
Member since Jul 2015
14078 posts
Posted on 1/7/26 at 2:52 pm to
quote:

Also, if this happens many firms will get out of th business all together and dump inventory leading to large declines in value in those areas.



Oh no won't some one think of Blackrock's resale value!!! The poor home buyers having the ability to have options for affordable housing in desirable areas!
Posted by jizzle6609
Houston
Member since Jul 2009
20103 posts
Posted on 1/7/26 at 3:30 pm to
This would be icing.
Posted by SaintsTiger
1,000,000 Posts
Member since Oct 2014
2107 posts
Posted on 1/7/26 at 3:52 pm to
quote:

Back to whom? We talking income redistribution here?


No redistribution. Say his rental portfolio value went from $2,000,000 before Covid to $4,000,000 after Covid.

Because of the new policy Black Rock and large domestic and foreign corporations aren’t allowed to buy single family homes anymore. They may even be incentivized to sell for tax reasons.

That would likely reduce prices . But PawPaw’s $4,000,000 wouldn’t go back to $2,000,000. Instead, something like $3,300,000 or $3,500,000.

That balances interests because Pawpaw still has a very healthy profit and young families and other first time home owners have a better chance of buying a house.

Posted by SlowFlowPro
With populists, expect populism
Member since Jan 2004
477254 posts
Posted on 1/7/26 at 4:03 pm to
quote:

Institutional property is owned by large entities, who have no intention of ever living in any of the homes they purchase.

And?

Dictating how private property should be used is socialism.

Posted by SlowFlowPro
With populists, expect populism
Member since Jan 2004
477254 posts
Posted on 1/7/26 at 4:04 pm to
quote:

What's the difference between a "large institutional investor" and someone who owns some apartment complexes getting into buying and renting individual homes?

My point here is there's going to need to be a very clear line keeping out the Blackrocks but allowing Joe Bob, LLC.


It's going to be like the California fast food minimum wage carve outs all over again.
Posted by SlowFlowPro
With populists, expect populism
Member since Jan 2004
477254 posts
Posted on 1/7/26 at 4:06 pm to
quote:

Just ban it.

Ban what? Corporate entities owning real/immovable property?

I'll say this again. I would wager at least 90% of posters who make money from rental properties don't own the properties, and they actually own a corporate entity (likely LLC) that actually owns the property.
Posted by SaintsTiger
1,000,000 Posts
Member since Oct 2014
2107 posts
Posted on 1/7/26 at 4:09 pm to
quote:

And?

Dictating how private property should be used is socialism.



Zoning for single family housing is a thing. So is mixed use zoning both single family where having light office, retail and restaurants allowed. Only the commercial part of mixed use is meant for institutional investors.

No one calls that socailsm. Except, evidently, you, assuming you are, in fact, an actual, real person.
Posted by Robin Masters
Birmingham
Member since Jul 2010
35947 posts
Posted on 1/7/26 at 4:10 pm to
quote:

Ban what? Corporate entities owning real/immovable property? I'll say this again. I would wager at least 90% of posters who make money from rental properties don't own the properties, and they actually own a corporate entity (likely LLC) that actually owns the property.


Trump has floated banning institutional investors not corporations.

No need to be intellectually dishonest.
Posted by SaintsTiger
1,000,000 Posts
Member since Oct 2014
2107 posts
Posted on 1/7/26 at 4:12 pm to
quote:

Ban what? Corporate entities owning real/immovable property?

I'll say this again. I would wager at least 90% of posters who make money from rental properties don't own the properties, and they actually own a corporate entity (likely LLC) that actually owns the property


At this point you’re just setting up a straw man to attack. Commercial buildings, multi-family housing could still be owned by large institutional investors.

And, btw, mom and pop investors cannot usually hold rental houses in LLCs. Because the mortgage companies want a personal guarantee.
Posted by SlowFlowPro
With populists, expect populism
Member since Jan 2004
477254 posts
Posted on 1/7/26 at 4:14 pm to
quote:

Zoning for single family housing is a thing.

a. We're discussing federal policy, not local/county-level policy

b. There should be plenty of people on record with their feelings about this when Obama and Biden attempted to use fedgov to infringe on local zoning. I bet the same people promoting this plan by Trump bitched about that, so offering it as a pivot option is a major hypocrisy red flag.

quote:

Only the commercial part of mixed use is meant for institutional investors.

Nobody is accusing these companies of violating local zoning laws for rentals, and nothing in this policy proposal addresses that directly.

quote:

No one calls that socailsm

I've posted long about local governments creating housing crises by manipulated the market. Reason used to do a pretty regular column on it and I posted a few on here.

You're getting into European-style regulatory states, which are often called socialist by the same people promoting this policy. If you want to call it European style regulatory states, it's fine with me. The same goal is accomplished philosophically and rhetorically for my argument.

Posted by SlowFlowPro
With populists, expect populism
Member since Jan 2004
477254 posts
Posted on 1/7/26 at 4:16 pm to
quote:

Trump has floated banning institutional investors not corporations.

No need to be intellectually dishonest.


You clearly didn't read the argument of the post to which I responded.

quote:

Just ban it. They get around limitations by creating smaller local subsidiary groups they own a stake in and they buy them up.


Baked into my response was his argument that they would get around the "institutional investor" definitions (whatever that will be) by creating smaller subsidiary companies that fall within the law. Which led to me asking him to clarify his stance, for the reasons I posted.
Posted by SlowFlowPro
With populists, expect populism
Member since Jan 2004
477254 posts
Posted on 1/7/26 at 4:17 pm to
quote:

Commercial buildings, multi-family housing could still be owned by large institutional investors.

What's the difference from a property rights perspective?

quote:

mom and pop investors cannot usually hold rental houses in LLCs. Because the mortgage companies want a personal guarantee.

Well some people commit mortgage fraud, yes, but read what I wrote.
Posted by SaintsTiger
1,000,000 Posts
Member since Oct 2014
2107 posts
Posted on 1/7/26 at 4:19 pm to
The zoning codes were written to serve single fsmily home ownership and some mom and pop investors. Not Black Rock and mega-rich Chinese investors.

Posted by stout
Porte du Lafitte
Member since Sep 2006
182577 posts
Posted on 1/7/26 at 4:21 pm to
quote:

Oh no won't some one think of Blackrock's resale value!!!



You're a retard if you think that's the point I was making

People living in those areas would be affected by a market correction due to hedge funds dumping. Some have already been affected in parts of FL where this has happened.
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