Epic Real Estate Investing - BlackRock’s Housing Playbook (And You’re Not In It) | 1482

Episode Date: May 5, 2025

This episode delves into how BlackRock is fundamentally reshaping the housing market. It covers BlackRock's substantial investments in major homebuilders, building materials companies, mortgage lenders, and their involvement in building 'build to rent' neighborhoods. Matt explores the impact of these investments on the housing shortage, market prices, and the increasing difficulty for average buyers to own homes. It emphasizes how BlackRock's strategic moves create more rental properties and discusses alternative strategies for individuals to navigate this new housing landscape. The session also touches on broader implications, including economic influence and the future of homeownership. BlackRock-proof Investing Blueprint: https://docs.google.com/document/d/19O-lBQhXgTh9jo0wq5eln-USA47LigiuF7UCtTjwm18/edit?tab=t.0#heading=h.wza9gnmifk6c Learn more about your ad choices. Visit megaphone.fm/adchoices

This is Terio Media. Hey, strap in. It's time for the epic real estate investing show. We'll be your guides as we navigate the housing market, the landscape of creative financing strategies, and everything you need to swap that office chair for a beach chair. If you're looking for some one-on-one help, meet us at rei-aise.com. Let's go, let's go, let's go, let's go, let's go, let's go.

Let's go. You're waiting because it always crashes. right? Except last time, it crashed because the system broke. This time, the system's been rebuilt by them. What if I told you the housing market isn't designed to crash anymore? What if I showed you it was rebuilt, not to fail? While you're debating if it's time to buy or not, Black Rock has made a decision about your future that will decide if you'll ever own a home. You're not priced out because of the market. You're priced out because Black Rock doesn't need a housing bubble to win. They built one that won't pop.

Stay with me, and I'll show you what they don't want you thinking about. This isn't guesswork. This is filed, funded, and public. Let's run down the facts. Black Rock owns 10.2% of D.R. Horton, the largest homebuilder in America. 10.1% of Linar, the second largest home builder. 10.9% of Pulte Group, the third largest homebuilder. Nearly 9% of CRH, the largest building materials company in North America.

They've got major stakes in J.P. Morgan, Bank of America. Rocket Mortgage and Fannie Mae's mortgage-backed securities. They've put over $120 billion into the mortgage market. They joined a $500 million affordable housing fund with Greystone in 2024. They fund billed to rent housing across the U.S. and Europe. They're not buying your neighbor's house. They're buying everything around it, the concrete, the comps, the credit choices, the rent. And I'll save the real scary stuff for later.

Oh, that 10% ownership? Way more powerful than it sounds. In business, you don't need 51% to have huge pull. As a top shareholder, BlackRock sits at the table in thousands of companies at once. They vote on behalf of millions of investors whose money they manage. Most people never use their votes. So, BlackRock does it for them. A solid 10% voting block often decides major company choices.

It's not full control. It's something, though, that may be more useful. You see, when you shop for a home, you think you're picking who to work with, what website to use or what agent to hire, what bank to borrow from, but the whole system was built and is owned by the same group. They don't own every piece on the board,

but they own enough that it doesn't matter. BlackRock owns the companies that make your drywall, build your house, approve your loan, and list it online when you try to buy. This isn't a plot, it's a plan. If you're waiting for the market to return to normal, you're already losing. But let's say BlackRock didn't exist.

Let's say Wall Street, sat this one out. What would the housing market look like then? Well, I'd have to suggest you'd hardly notice that they were gone. The market would still be climbing. And that's why they're in it. We're short millions of homes, not thousands, millions. Freddie Mac says we're 3.7 million homes short. Realtor.com says nearly 4 million. Some experts say up to 6.8 million. They disagree on the number, but they all agree we have a huge shortage. Millennials and Gen Z are flooding into prime homes. buying years. Immigration is surging 2.8 million new people per year. Builders can't get land, can't find workers, and can't get loans. Even if rates drop, there's nothing to buy. This supply

crisis is perfect for BlackRock. They don't need to rig the market when basic supply and demand does the work for them. They profit from the shortage while regular buyers fight over scraps. And this shortage isn't going away soon. And the homes that are being built, they're not for you to buy. They're built to rent, managed by big companies, funded by Wall Street. When did you last see a new neighborhood go up? How many of those homes were rentals from day one? Look around. It's happening. The build-to-rent market is booming. It's now about 9% of all new houses, three times higher than normal. In 2024, Builders started 83,000 homes meant only to be rentals. This is what Black Rock is funding, not buying existing homes, but backing whole neighborhoods built.

just to rent forever. And you're welcome to these new homes, but to apply as a tenant. Here's a hard truth most don't want to hear. Homes right now are likely as cheap as they'll ever be. And I don't say that to scare you. I say it because if you want to own a home someday, waiting for a crash might be your biggest money mistake ever. Real estate, it used to be more up and down. What's different now is how the basics have changed. We have a huge housing shortage that will take years to fix if we ever do, because we're not on track to. We have waves of young adults and new arrivals needing homes, and unlike 2008, we now have big money deeply set into the whole housing system.

The proof? The March inflation report from last week shows housing costs up 4% from last year, way above the overall inflation rate of 2.4%. The Fed notes from their March meeting, released April 9th, show they won't cut rates soon. They need more proof inflation is truly beaten. The new normal might be small dips followed by quick rebounds, not big crashes. The system has new safeguards now.

And I can hear the comments already. Don't listen to this guy. Buying real estate now is awful advice. What an idiot, they say. But who should you trust? The TikTok money guru? The YouTube talking head? Or the smartest money in the world?

Why bet against real estate when the smartest investors, with the best data and deepest insights, can't get enough of it. Black Rock isn't making emotional choices. They're making calculated moves based on better info than we'll ever see. Look at last week's data. JP Morgan's home loans are down 42% from last year, yet their stock keeps climbing.

The big players know what's up. The Builder Mood Index just hit a seven-month low of 39 in March. Below 50 means they see bad conditions. They're fighting worker shortages, high material costs made worse by tariffs, and tight lending. You can't stop this rising tide. You will drown if you don't swim. Black Rock isn't just betting on housing.

They're building into it for good through ETFs, private loans, mortgage-backed securities, and construction funding. They're backing new neighborhoods, funding the mortgages, and backing the builders who sell or rent to you. It won't crash. It's built not to. They've made a financial fortress. They've laid the foundation. They built the walls.

They installed the locks. They didn't just join the housing market. They redesigned. it. While most people try to find the front door, smart investors are finding hidden paths Black Rock Mist, or just haven't had the time to go there yet. Since they touch every part of the machine, they don't need a crash to profit. They just need the system to keep moving. Does this sound like your local market? Seeing homes get grabbed before they even list? That's not by chance. The only question is, will you get swept up by this wave or will you learn to ride it? And if you think what I've

shown so far as wild. Just wait. We're about to cover the scary stuff. The stuff we can't prove yet, but what everyone's whispering about as if they could. You see, there are only two types of people in this market. Those waiting for a system they don't control to shift in their favor, and those who find ways to win in the system we have. This is the new game. You can't change the rules, but you can choose to play it or get played. The good news, you don't need $11 trillion to play. You just need a smarter way in. Most people follow the old path, waiting for bank approval, hoping rates drop, praying for a crash. But there's another way that works right now.

I've spent 20 years studying how smart investors navigate the market. The tricks aren't complex, but they're not what most experts talk about. The real players bypass the standard system. They find homes before they hit the market. They make deals that don't need bank approval. They create win-win deals with eager sellers. They find money sources that don't care about your credit score. These aren't just ideas.

They're used right now by people who refuse to be priced out. People who choose to play differently. I've recorded exactly how they do it. Some use tools like seller-sniper to find off-market deals. Others use Epic Pretty to see what's coming before it hits the listing sites. Many work with loophole lending to get money that banks don't advertise. Here's where the road splits. Path one, you do what most people do.

Wait for approval. hope for a crash. Watch prices climb 5%, 10%, 15% while you wait. Five years from now, you pay even higher rent to the same big owners with even less buying power. Or path to, you get the blueprint that I've linked below for you. You learn the exact methods my students use to buy homes without normal bank loans. You build wealth in a system meant to keep you renting. While others complain, you close deals. Five years from now, you've built a portfolio that makes monthly income regardless of what Black Rock does. You build wealth because Black Rock does. The Black Rock Tide will lift all boats, and real estate is one of the last boats for the average person

that still floats. The blueprint doesn't need millions. It doesn't need perfect credit. It just needs you to stop playing by rules meant to keep you out. I've seen the comments. You're angry. You should be. This game is rigged. Not by some secret meeting in a smoke-filled room, but by letting companies like Black Rock design the field and fund both teams. They're in your listings, your loans, your lumber, your landlord. But here's the thing, being mad doesn't help if you don't act. You can't protest your way into owning property. You need to move.

You need to act. I mean, what's your plan for the next year? Waiting for something to change or changing your approach? If you want to dive deeper, I'm hosting a small workshop in Vegas this month. We'll break down these plans in detail, how to find the right houses, structure the deals and find funding sources. It's not for everyone, but if you're all in, details are in the description. But I don't like real estate, you may say.

Hey, no problem. But Black Rock is in what you do like to. They're in everything. Their AI system, Aladdin, runs 250,000 market scenarios daily. It guides choices for 85% of the Fortune 100. It's basically Wall Street's operating system. Now, picture this. One firm with a quiet hand in your loan, your neighborhood,

your landlord, your 401k, your newsfeed, but still hidden to most people. Their investment stewardship team engages with companies on their priority issues. When an $11 trillion firm engages with you, the message is clear without direct orders. Aladdin manages $22 trillion in assets across Wall Street. At that scale, you're not just watching the market, you're shaping it. They don't need to own everything. They just need to own enough to never lose. Here, let's shift gears.

We've covered the proven facts, the investments, the ownership stakes, the market roles. Now let's touch on the concerns going around, the things keeping people up at night. While there's no smoking gun yet, here are the whispers that won't go away. First, everything I've shared so far comes from public filings, public records, Black Rock's own reports, and real data. These aren't theories. They're documented facts about how the system works right now. Now, here's what people worry about, that Black Rock is quietly creating a renter nation

by funding build-to-rent neighborhoods while buyers struggle to get loans. That they'll crash the market on purpose to buy it back cheaper. That environmental, social, and governance isn't about values, it's about control. That their pull with the Fed, Fannie Mae, and Global Banks gives them early info on big moves. That Aladdin doesn't just track risk. It guides the economy in real time. That their voting power doesn't just affect CEOs, it replaces them. That when you hear about global elites, this is the group doing the work.

Are these just wild theories? Maybe. But when the same firm that manages your 401K helps build Ukraine, owns 10% of your builder, and helped bail out Wall Street in 2008 and again in 2020, it starts to feel less like theory. And even if none of it is true, you're still priced out, still watching, still waiting. while they keep building. You don't need to like Black Rock. You just need to get how this system works

because they're not waiting for your okay to keep growing it. You can sit on the sidelines and watch wealth pile up or you can decide it's your turn to play. The gap isn't luck. It's knowledge and action. Picture waking up knowing that no matter what happens in the economy, you've got your piece of the American dream. Not just a home, but a base for wealth that no one can take.

The peace of knowing that your family has safety in a shaky world. The freedom to build a life your way, not as a forever tenant and someone else's investment. That freedom is still possible. It just needs a different path than what most people take. The blueprint is waiting below. Are you ready to use it? I'll see you next time. Take care.

And that wraps up the epic show. If you found this episode valuable, who else do you know that might too? There's a really good chance you know someone else who would. And when their name comes to mind, please share it with them. And ask them to click the subscribe button when they get here and I'll take great care of them. God loves you and so do I. Health, peace, blessings, and success to you. I'm Matt Terrio.

Living the dream. Yeah, yeah, we got the cash flow. You didn't know home for us. We got the cash flow. This podcast is a part of the C-Suite Radio Network. For more top business podcasts, visit c-sweetradio.com.