President Donald Trump has announced a plan to ban large institutional investors from buying single-family homes in the United States. Nobody really knows what this means at the moment but curious what others think. According to Trump "People live in homes, not corporations," but aren't we all corporate investors?
Large investor ban
byu/Antique-File-7189 inrealestateinvesting
Posted by Antique-File-7189
38 Comments
Wait so does this affect LLCs or just like BlackRock type stuff? Because if it’s the latter then honestly good, those guys have been pricing out regular people for years
He didnt write that. If he actually cared about this there would be exec order. I expect nothing to happen.
He SAYS a lot of things.
Wake me up when the billionaires and hedge funds allow it to be passed through the senate and house.
Until then, you are wasting your time speculating.
He does a lot of huffing and puffing with little substance. Until we see real movement it’s just theatrics. We’re also supposed to invade Greenland and end the war in Ukraine and and and….
It’s not gonna happen. It’s a bone thrown to look like he cares about regular people. At the end of the day the SCOTUS would strike down any such law, so this is a safe position for him to take.
It affects large institutional investment companies. As much as I’d like to think so I’m definitely not in the ballpark if his cited examples such as Blackstone and JP Morgan. And I doubt you guys are either.
Okay, but why would Trump have this idea? He’s a real estate guy.
Congress writes laws, people forget that
I bet this law goes through as soon as my tariff check shows up
I am not for any kind of ban. I do agree it’s a problem.
I think there should be zero protections for hedge funds or massive corporations monopolize homes.
Take the risk like any homeowner. No special interest rates or lower tax incentives.
I don’t have all the answers but as a small business investor I don’t really like the government determining who can own what.
I would be for better solutions.
Would be great if it happened. I’ll leave it at that until something is actually on the table.
I’m surprised to see Trump support this, but then again, he does have a habit of “fixing” things that are not really a problem. There are many reasons why housing is so expensive, NIMBYs and single family zoning being number one and two. Corporate ownership is a minor problem.
I wouldn’t worry too much about trump actually instituting some random policy he tweets about.
Nobody knows what it means, but it’s provocative! It gets the people going!
I don’t think it’s legal, or should be, to prevent a certain type of buyer based on the entity. If that became the case, could we limit other groups? Would that set a precedent that allows us to keep “undesirables” from owning homes? I think a slippery slope argument is valid here.
*Did I word this poorly? Are people not understanding my point?
Trump does this because it’s easier than saying…”hey large institutional real estate investors, I demand a kickback/bribe for me or my family.”
He always says stuff and never follow through. It’s just to throw his political opponents off balance, and grab the daily headline.
If a corporation owns a property that would maybe be what is an institutional investor distinction? This will solve zero issues – if corps are forced to sell properties in heavy rental areas in bulk, private investors will just pick up the properties maybe for a steal. There would need to be a provision that they can only sell them to owner occupants for this to do anything, and even so institutional investor ownership is highly over stated, it’s mostly mom and pops
This has already been proposed by dems in the senate and shot down by reps on multiple occasions … so think he’s just blowing hot air he knows can’t really go anywhere
Large corporations very briefly bought SFHs after Covid, but even then it wasn’t many. Today they buy nearly 0%. It’s a popular thing to claim happens in some circles but largely doesn’t exist, so banning it would be meaningless.
I think he’s just trying to make some good headline to try to gain some good PR prior to midterms.
I doubt he has any real intention to do this and even if he did I think in reality there is a million ways to get around this and I doubt congress would pass it anyway
I heard these investors were making the houses unaffordable for legitimate home buyers. Isn’t that true because they have money to raise the prices?
He’s full of shit and ain’t gonna do it.
Personally I dont see much of a point in including small companies when the death rate of Baby Boomers is gonna spike by 2033 and there’s gonna be an economy crushing surplus of housing.
I also don’t buy SFH because more doors per mortgage means I’m leveraging myself harder at better cap rates. Outside of snatching up cheap SFH in developing cities, I don’t see the point? Any SFH niche people here to explain the benefit? Curious.
But the fact is, housing is incredibly unaffordable for the average American these days. New construction/supply isn’t keeping up in most markets. A ban including LLC’s might be unfavorable to a lot of people here.. but it would cut out a huge portion of the demand and make a major difference in an unfair economy for real Americans trying to buy homes for their family. I’m all for that.
In my area, Orlando, single family homes are snatched up almost immediately by small-ish time serial income property collectors, especially because most of Central FL (and other areas like ATL metro) are pro ADU, making demand from investors consistently high (although not with the current downtrend in FL).
Trump has ZERO intent of following through on this. There’s nothing in it for him. It’s either A) A convenient way for him to drum up good press when he desperately needs it B) Another push for a bribe from said corporate investors C) A distraction from the fact his DOJ still hasn’t released the Epstein files or D) all of the above.
Actually I think it’s a good thing! If you realized how many SFH they have gobbled up over the last 5 years it’s crazy for what it means for first time buyers!
Absolutely agree!
Or just use tax policy to engineer this change. You’re allowed two houses. If you privately or a company own a third house, taxes on that third house are assessed at 50% higher than neighbors in the first year. That tax increases 25% every calendar year. If someone wants to own a third house and pay 1,000%+ or more in taxes per year, have at it.
Fyi, tax policy is used all the time to influence specific behaviors or outcomes.
I don’t think this will affect the average investor who purchases through LLC’s. This most likely would be larger companies like Blackrock but honestly how many single family homes do these companies really even purchase? Drop in a bucket difference if you ask me
It doesn’t mean anything. He’s just throwing out as much random shit as possible to distract from Epstein. I would bet my portfolio that this is total bullshit and he won’t do a single thing
Good for everyone except large institutional investors
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He is a landlord, his kids are landlords. This is their industry.
Its all bullshit. Probably trying to extort blackrock, or someone else that irritated him recently. If it was a past slight, he couldn’t have waited a year.
Did you miss the words “large” and “institutional”? This won’t affect portfolios of a few homes.
Most likely nothing will happen from it.
If something does it probably won’t impact individuals like us on this sub.
Good
Wake me up when we have an actual bill in Congress. Until then this is just twitter BS.
If you’re an asset management company that’s public and is traded on at the stock exchange in Wall Street and have hundreds of thousands of single family homes in your portfolio, you should be banned from owning a homes. SFR asset class should be protected against monopolies like these companies driving up costs and taking away inventory.
they own 4% of homes
they wont be forced to sell current holdings
even if it goes through it wont have an effect on the market
So hypothetically, this is one of the next logical steps of the legislation couple years ago that require LLC’s and INC’s to disclose their “true” owner or beneficiary.
The INTENT is that they will be able to link shell corporation networks together and see who ultimately is getting the money and charge them accordingly for taxes, AND probably put a cap on units if that person owns more than XYZ units.
What this will REALISTICALLY do is get the minor millionaires who have set up 4-8 LLC’s with 3 properties each and close some loopholes so they are actually paying the taxes they should be.
That is all fine and good, but, yet again, it’s going to leave the major corporations free and clear because they have enough money and lawyers to break up their “beneficiaries” and keep up with the paperwork to keep their loopholes going, yet again leaving literally billions of dollars untaxed.