Epic Real Estate Investing - They FEARED BlackRock… But THIS Man Is the Real Threat to Homeownership | 1490

Episode Date: May 23, 2025

This episode explores the alarming trend of major investors and tech giants like BlackRock and Jeff Bezos-backed Arrived Homes buying up residential properties, outpacing everyday home buyers. It highlights how companies supported by billion-dollar funds and high-speed acquisition models are transforming real estate markets across the US, making it difficult for average families to compete. Matt tells the story of a young couple in Phoenix who lost their dream home to an all-cash offer from an LLC, emphasizing the broader implications of investor-driven buying on housing affordability and community stability. The episode also offers alternative strategies for home buyers to avoid competing with Wall Street by going off market and negotiating directly with sellers. BUT BEFORE THAT, hear the news about the biggest housing shift in 15 years! About the "off-market" playbook: https://docs.google.com/document/d/1EV7cmIuBujFRZqOswpj5Rz5NwdMdY7EddVxbux3rAMY/edit?tab=t.0 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. New data just confirmed it. A date's been circled, and when it hits, the housing market flips. Mortgage rules change. The middle class freezes. Wall Street keeps buying. If you thought 7% rates were bad, just wait until they decide who's allowed to borrow, not just what it costs.

You'll know the exact quarter this shift hits. Who ends up owning most of the homes, and how to get ahead of it so you're not priced out. And just so we're clear, this isn't some fringe conspiracy. This has all happened before. many times. Let me show you. In the 1930s, during the Great Depression, half the country defaulted on their mortgages. The government stepped in, created the FHA, and tightened the lending overnight. Bigger down payments, stricter paperwork. In the late 70s, inflation went crazy. Rates spiked past 16%. Banks froze. Seller had to carry financing themselves. That's when creative deals

really started to boom. In the 80s, over a thousand lending institutions collapsed. The response, slash loan to value limits. Double the income documentation. Unless you were squeaky clean, you are out. In the 90s, Fannie and Freddie were pushed to fund more affordable loans. And that sounds nice, but it opened the floodgates for subprime and laid the groundwork for the crash. Then, in 2008, that subprime mess exploded. Stated income loans, they disappeared overnight, credit requirements soared, and middle-class

buyers were boxed out. Because in 2010, Dodd-Frank passed, and that kept fees on loans under $100,000. Now, it sounds good on paper, right? But banks walked away from mid-sized loans and focused on the jumbos for wealthy borrowers because those smaller loans, they didn't pay anymore. The result, lending to average families dropped 15%, while jumble loans jumped 21%. The pattern's clear. Rules tighten, middle class gets squeezed, and cash buyers clean up, and now it's happening again. Here's what's lining up. Basel 3 is coming in July this year. It raises the capital cost for mortgage servicing.

Big banks are already saying it'll shrink loan access and favor only the most pristine borrowers. Fannie Mae's new update, Desktop Underwriting 12.0, added a hidden 12-month asset verification flag. Most buyers won't even know it's there, but insiders say it's silently kick. Bills borderline files before a human even sees them. According to the Fed's latest loan officer survey, 24% of banks just tightened lending on non-QM jumbo loans. That's triple the rate from the previous quarter. The squeeze, it's already here.

Then there's the student loan restart. Delinquencies jumped from 1% to 8% in just six months. If lenders recalculate DTIs using full student loan payments, millions more borrowers get knocked out instantly. And don't forget rising credit card and auto loan defaults. Lenders are nervous. When they see risk, they slam the brakes. Meanwhile, interest rates are stuck between 6.5% and 7%. Wages are flat. Inventories locked.

Everyday buyers are boxed out. But cash-rich platforms, they're thriving. So, what is the reset date? Well, you're not going to see a press release. There'll be no CNN ticker, no big announcement. It'll be buried in a guideline bulletin with an effective date. But here's what insiders say will quietly kick it off. Around third quarter this year.

Trigger one, reserves. Some lenders are quietly pushing for 12 months of PITI in reserves on risk files. That's $36,000 in the bank just to qualify for a $400,000 house. Trigger two, student loans. Deferments used to count as zero. That's changing. As full payments start getting counted again, DTIs explode and approvals disappear.

Trigger three, income. Gig workers already have to show two years of income. Insiders say the new bar might jump to three. If that happens, most side hustle incomes get disqualified. Miss just one of those and your pre-approval turns to dust. So here's what owning a home will look like. Median home, $400,000. You'll need $36,000 in reserves, plus your down payment.

Who has that? Well, hedge funds, equity buyers, and cash-rich platforms, not your average families. And that's the real reset. Families get disqualified. Homes are bought in bulk. More renters by default. And with fewer comps, traditional listings sit. Prices stall.

Markets freeze. So how do you still buy when the banks say no? Well, here's how. Bank rules change. Yes. Human motivation does not. You find sellers who need certainty, who need to sell. You offer what the banks can't.

Terms. No reserve hoops. No underwriting flags. Just two people and a contract. We're talking subject to. Seller carry. Raps. One of my students, Stephen, just locked up a duplex.

3% down. No W2. Seller needed relief. He got cash flow. No algorithm. No gatekeeper. Just a creative deal. Two people working together,

solving each other's challenge. If you want help finding deals like that, negotiating them, funding them, and stacking them, reach out. We're flying a few people into Vegas this month to train on this live. Or if you're just getting started, there's a little playbook below that'll show you how to shop for deals off market. No agent, no MLS, no banks. And in the next couple days, I'll show you what happens after the reset and why most won't see it coming until they're already priced out. So stick around. So you're not the last to know.

Hope is not a financial strategy. Let's get back to work. Black Rock's buying up America's homes, but this man is doing something worse, and no one's stopping him. In Phoenix, families are losing homes. They haven't even made offers on yet. Why? Because this man just backed a startup that can beat you to any house in seconds. One offer, all cash, no inspection.

no time to compete. And it's not just the rich getting richer. It's 763,000 investors quietly turning your neighborhood into a Wall Street playground. Let me tell you a quick story. A young couple, Marcus and Jamie, had been saving for over three years. They finally scraped together a 10% down payment for a modest three-bedroom house in a quiet neighborhood just outside of Phoenix. They were pre-approved, ready, hopeful. They found the perfect house, went to the open house, called their agent the next morning to submit their offer. Gone, sold overnight. The seller never even saw their offer.

Who bought it? An LLC, all cash, no inspection, no questions asked. And that LLC, it's one of hundreds like it, quietly backed by billion-dollar buy boxes, AI-powered decision engines, and investors you'll never meet. Now pause, because this isn't just a Phoenix story. This is happening in Dallas, Tampa, Charlotte, Sacramento, anywhere with warm weather, job growth, or high rents.

It's a target. Wall Street's been gorging on starter homes for over a decade, Blackstone, Invitation Homes, and yeah, even Black Rock. Not because they're out-placing bids themselves, but because they control the money behind the firms that do. Black Rock holds indirect stakes in over 80,000 rental homes through companies like Pretium and Invitation Homes. So they're not knocking on doors, but their capital is.

They're not writing the offers, but they're cashing in every time one gets accepted. Then in January last year, Blackstone made a direct move. Three and a half million dollars to swallow TriCon Residential and 38,000 homes in one shot. They didn't just buy homes. They bought cash flow. They bought leverage over entire zip codes. Commentators called it the final boss of corporate landlords. But while Blackstone makes headlines, there is another name you're not hearing enough about,

one that's growing faster, flying lower, and backed by one of the richest men in the world. The man pulling the strings? Jeff Bezos. Yes, that Jeff Bezos. You know how he changed Wee Shop? Now he's changing how people own real estate. Meet Arrived Homes. A click-to-buy-buy-estate platform funded with over $100 million from Bezos is.

venture capital firm. It lets anyone, literally anyone with $100, by fractional shares in rental homes across the U.S. To date, over 763,000 investors have taken them up on the offer. Together, they co-own 461 homes. Now, 461 homes might not sound like much compared to Wall Street's numbers, but here's the part that should make Black Rock nervous. This is just the beginning. Arrived isn't playing the old game. They're building a new one, one powered by everyday investors, and backed by Bezos-level capital, speed, and scale. It's not about where they are today. It's about how fast they're moving and who's funding the run. That's more investors than there are licensed real estate agents in America, arrived screens over 100,000 properties a year, but only buys

the top 0.2%. That's their vision of a military-grade acquisition model. a vetting pipeline that can pounce faster than Zillow alerts. Day one, property identified. Day three, boots on the ground. And day 30, a tenant is already in place. The target return 8%. If Amazon optimized shopping, logistics, and cloud computing, why wouldn't Bezos try to optimize real estate too?

Well, now he is. Arrived doesn't claim to use AI in the way most people think of it. But the speed, scale, and strategy sure feel robotic. Back to Marcus and James. Jamie, they weren't just outbid, they were outpaced. The offer that beat them came from an LLC tied to a property fund, one that made its move before the couple's mortgage letter even hit the agent's inbox. Now, multiply that across 300 market.

You've got thousands of families competing against cash, code, and a faceless fund that doesn't blink. And here's what happens next. Prices get squeezed. In Phoenix, home values are already up 6.7% in some zip costs. codes this year alone. Rents chase those prices. In Tampa, investors now own over 12% of homes. Tenants are getting renewal notices with $300 monthly increases. In some cities, nearly one and five homes are investor-owned. And the neighborhoods? They change. Fast. Your kids' best friend moves away next semester. The house across the street has new tenants every year. The old neighbors

vanish. Affordable becomes a museum word. And what does Washington do? They slap on rent caps. They run press conferences. They call it a housing crisis. Meanwhile, the big money just clicks next city. And the last stair step into the middle class, homeownership, starts to disappear. Now, here's where it flips. You don't have to play this game because Wall Street only wins when you play by their rules.

So stop playing. Go off market. That's where the real deals live anyway. You go direct to seller. solve real problems, offer the terms bots can't. Cellar financing worked in over 8% of home purchases last year. Subject two deals, wrap-around mortgages, lease options, no agent, no MLS, no bidding wars, just people.

I had a student, Jackie. She lives in Ohio. 3% down, 3% interest, a duplex deal, closed in 12 days. No competition, no algorithm. just two humans and a signed contract. I wrote the exact script that Jackie used, and you can download it below for free. And if you want to help finding these deals,

negotiating them, and funding them, let us know. Maybe you can join us in Vegas this month. But at the very least, there is a little playbook below on how to get started shopping off market for real estate. Hey, quick thing before you go, I'm running this weird experiment

where I basically pay people to do real estate deals for them. And then I split the profits with them 50-50. And you can watch this right here to get all the details. And yeah, I know it's probably the most ridiculous offer that I've ever made, but it's working like crazy. And if you're thinking there's a catch, you would be right. I can only work with two to three people per city. So if you're curious, check out to see if your market's still open or don't. It's not for everyone. 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.