The Jon Sanchez Show

10/31-Is a Wall Street landlord good or bad for your home’s value?

Is a Wall Street landlord bad for your home’s price? Kamala Harris thinks so. She has pledged, that if elected, she will ask Congress to pass the Stop Predatory Investing Act that would remove tax benefits for corporate landlords who buy single family homes. But are these Wall Street buyers really bad for your home’s value? We’ll let you know, this afternoon on the Jon Sanchez Show at 3pm.

Duration:: 34m
Broadcast on:: 31 Oct 2024
Audio Format:: other

But there's only one feeling like knowing your banker personally, like growing up with a bank you can count on, like being sure what you've earned is safe, secure, and local. There's only one feeling like knowing you're supporting your community. You deserve more from a bank. You deserve an institution that stood strong for generations. Bank of Colorado, there's only one member FDIC. Good Thursday afternoon to you. Welcome to the John Sanchez Show. A new stock 780k. It's a pleasure to be with you and a pleasure to be with one of our two co-hosts on Tuesdays and Thursdays. Mr. Mallard has the afternoon off, Mr. Edge, Corey Edge, that is, of course, of edge-related. He is proud to be sitting in and be in my counterpart, my co-pilot for the evening. How you doing, my friend? I'm doing fantastic. How are you? Very good. Very good. I did it. A little beaten and battered from today, Corey, but I always have to throw that in, depending upon how the day goes. It was a tough one today. It was a tough one today. No doubt about it. Yeah, you had the, well, you got earning fees and you got fed next week. And of course, you got some big happen in the next Tuesday, so it's a pleasure. Yeah. Just a few things. A little bit of the volatility's ramped. Boy, is it ever. I'm looking at the daily chart of the Dow right now, and boy, you just hit it right on the head. The volatility's just absolutely rampant. Yeah, they were throwing the earnings numbers, which, by the way, we had some bigger earnings numbers after the close today. Apple Amazon Intel, just to name a few. I will be sharing, of course, what those are and what they were, I should say, and how the stocks are reacting in the after-hour session. We'll talk about what happened today and the triple digit decline of both the Dow, the NASDAQ, and the S&P 500. It's been a long time since I've said a triple digit loss in the S&P. But it was one of those days, but again, I'm going to break it down for you and tell you exactly what happened and lay out the game plan for tomorrow because it's going to be an important day where we will have the jobs report come in on top of other bits of economic data. So, yes, lots of things going on, but first, let me tell you what we have lined up for you. Corey, this topic this afternoon, right down your alley, this is why I selected this. So here's a question that I want you to all be thinking about before we get to this topic. Is a Wall Street landlord bad for your home's price? You see Kamala Harris thinks that the answer is yes. She thinks Wall Street, of course, is this bad in general, but especially Wall Street when it comes to owning homes. She has pledged that if elected, she will ask Congress to pass what is called the Stop Predatory Investing Act, and that would remove the tax benefits for corporate landlords who buy single-family homes. But the question that I want you to be thinking about that we will help answer this afternoon is are these Wall Street buyers really bad for your home's value? Well, we're going to let you know this afternoon as we go into this topic. But Corey, you know, as we were putting together this information, this data, this topic, one thing came to my mind. You know what that one thing was, Corey? Do you know what Kamala Harris lives? I can only imagine the emphasis though. No, Belair. She has a beautiful Belair mansion. Yes, beautiful, but somehow that never gets into the news when she's bashing home prices and the wealthy and all the things, of course, that she bashes. She never mentions that she lives in a very pristine, you know, I think I saw a price tag once I'm home into that, I think it was valued like $6 to $8 million that her and her husband you live in in Belair. Yeah, so when you sit back and you go, you know, Wall Street is terrible, they shouldn't be owning houses. Well, guess what? Corey and I have some data for you to show Wall Street really doesn't own that many houses. And what they've actually done after the housing crisis, and we've discussed this many times over the years with Corey, what Wall Street actually does is they're helping housing prices go up because they are buying homes up. Now, are they a competitor to mom and pop out their buying houses? Well, sure, anybody's a competitor, but she's out to say, Oh, no, no, no, no, no. If you own more than 50 houses, and by the way, folks, there are some of you in a Corey, I know you can attest to there are many people in our area that own more than 50 houses. But if this thing passes, if she gets elected and she goes to Congress and they pass this stop predatory investing act, guess what? You will no longer be able to write off your interest. You will no longer be able to depreciate your rental home and the list goes on and on and on. Corey, give us a little tease on that one. And like we will get into it a deeper hit, like we talked about over the past two weeks, all of these tight in the sky plans mean nothing. I mean, they can't get it done. It's all election, you know, whatever you want to call it, but if for some crazy reason, the Democrats, you know, get control of all three, you know, politicians, and they could push this stuff through. Hey, I don't think they would push it through, but B, yeah, I guess you kind of got to be prepared for it. But again, it's a story behind it. As you've mentioned, is, you know, fact versus fiction, a lot of what she talks about is complete fiction. And when you put facts on it, it's, you know, nobody wants to compete, but if you look at how the market kind of rebounded itself, it's, you know, I don't want to make Wall Street seem like a great organization. But they, they are helpful in certain ways. Hmm. You don't think they're a great organization? Well, I think they're great, but yeah, I don't want to compete against them if I don't have to. Well, based upon the data of how many homes Wall Street owns, you probably haven't had to compete against them, right? No. You're right. Absolutely. And if I recall, haven't they somewhat benefited you, didn't you do some business with them in years past? Did they call you up for your expertise in some cases? Oh, yeah. Well, that was way back in 2008, nine, ten, kind of debacle part of it. But, you know, again, we'll get into it deeper. But if you want to go back to those years, if people recall living through that, we were in a complete panic free fall. And if it wasn't for the Wall Street dollars coming into not only the big markets, but small markets like ours, we may not have ended up the way we did it. Exactly. Exactly. There you go. So very controversial topic when it comes to obviously back to the election side of things. And like Corey said, so eloquently, you know, the chances of it passing slim to none. It is out there. Just like what Jason and I discussed on the program yesterday afternoon, you know, as far as the different tax increases and so on, so forth, you know, again, depending upon what the makeup is, because there are so many things again, both candidates have laid out there to get your vote, but very few of them, very, very few of them can get passed just with the president's signature. It's got to go to Congress. And once again, as I say every day, I'm going to say it again today, the makeup of Congress is more important from an economic slash investing slash Wall Street perspective than who the president is going to be. All right. So it's going to be a great topic. Can't wait to get to it. Let's get down to the stock market side of things today. What a ride we had today, Corey. What a ride we had. Let me take it back to this morning. Well, actually, let me take you back to yesterday afternoon after the market closed. Of course, we had meta and Microsoft report their earnings numbers again to obviously massive tech bellwithers and remember, folks, we have a saying on Wall Street called the magnificent seven and these are seven of the really the largest and, you know, widely held technology names that are out there and they work in a vacuum, right? Meaning their performance. They go up. It tends to bring the market up with them. And if they go down, they tend to go down and bring the market down with them. So we spent a lot of time talking about Microsoft's earnings and meta's earnings yesterday. And we told you after the close today, there was going to be Amazon and Apple. So yesterday was the double M's. Today was the double A's. So I will, of course, get to the Apple and Amazon news. But you know, overall, both companies reported very good numbers. But once again, what Wall Street looks for is they're not looking in the rearview mirror. They're looking through the windshield. And he's predicting going forward. And I'm not going to rehash what we said yesterday on the show and you can pick up our podcasts and go through the details of the earnings numbers. But the outlook was not great and again, very typical, right? Microsoft's somewhat of a conservative outlook. They pressured the stock today. Remember, it's a Dow component. So this is one of the reasons that the Dow's lost today. Stock finished down $26.06, a 6% loss to 40646. Meta, it wasn't really the outlook, but what Meta said was we're going to be spending a lot of money basically reinvesting. And if you recall a few quarters ago, or, gosh, maybe it's over a year now, Meta said the same thing. And the stock got pounded when that news came out then and they got pounded again today. They do this periodically. They kind of back up, kind of like the old Amazon model. They back up, say, look at, we're going to be spending a bunch of money to develop and make this a better company, more products, more profitability. And then Wall Street beats them up and then eventually the companies turn out to be doing the right thing. Well, the stock performed very terribly today, $24.22 loss down 4.1% on Meta. 567.58. So that kind of set the tone today, how things were going to be. Looking at my first stock update right before, or my last one, I should say, right before the stock market opened, we were down about 240 on the Dow futures, NASDAQ were down 153. So we knew it was going to be a tough go and a tough start. And indeed it was opening bell king. We kind of just went sideways for maybe half hour, 35 minutes, 40 minutes, and then the selling accelerated. And boy, we just sold off so quickly. And then we kind of just went sideways for the rest of the day and then down a little bit towards the close, resulting in a 378 point decline on the Dow, 0.90% with a close of $41,763. The NASDAQ, man, I can't remember how long it's been since I've said we've had a 500 plus point loss on the NASDAQ. We did it today though, 513 point decline down 2.76% to 18,095, S&P down 108 points or 1.86% closing a 5,705. Good day for oil. Now the rumors are starting to float that Iran now is looking to retaliate against Israel for Israel's missile firing a few days ago. So oil prices started to spike today. We rose 1.1% to 6935 a barrel. Gold took it on the chin though, $51.50 loss, 2007, 4930. And Corey, when we come back, I want to go into more details of what this 10 year treasury, not so much did today, but what it has done over the last month. It's going to be a mind-blooming number that I'm going to share with you and hence why Dwight's probably enjoying a few days off or something because the poor man's got to be beaten up. And again, I want to get your perspective and see if we're seeing any reaction in the bottom market. We'll have a course with a 30 year mortgage close that today also. Then we'll get into our topic. Is Wall Street landlord a good or a bad thing for your home's value? Let's turn it over to Jack Saban. He's in the right now traffic center. Hey, Jack. Welcome back to the John Sanchez Show on this talk, 780 KOH with Corey Edge of Edge Realty. All right, before we get to what the bond market did today and for the month, I want to give you a quick reminder. Actually, it's not even a reminder. It's the first announcement. We teased you a little bit yesterday on the show, but we are set to go. We are proud to announce our next webinar. Mark this on your calendar November the 13th, which is a Wednesday, 630 p.m. Our topic, how the election results may impact your investment portfolio. You know, election season, of course, thank goodness, is coming to a close, but its impact on your investments may just be beginning. We want you to join us for a timely and very insightful webinar that we put together to help you break down the recent election results and how they could influence the stock market and most importantly, your portfolio. In the webinar, we're going to cover a look at how markets historically respond to elections, key sectors that might see shifts post-election, the potential impact on taxes, interest rates, and inflation, long-term versus short-term strategies, and what you should do right now, and then most importantly, our actionable steps to help protect and grow your portfolio in these uncertain times. Once again, Wednesday, November the 13th, no charge, 630 p.m. Just go to our website at sanchezwealthmanagement.com. Click on the upcoming events tab and put in your information and make your reservation. We look forward to seeing you there on November the 13th. All right, as we said, a 378 decline on the Dow down 512 on the NASDAQ or 513, excuse me, and 109 on the S&P 500. I told you what oil and gold prices did. Let's hit the bond market, Corey, and then I want to go into the after-hour session and let you know what some big names that reported after the close, how they're fairing at this particular moment. So for the day, it was relatively quiet on the bond market side, even though we had extreme volatility in the stock market, just a two-basis point increase on the 10-year treasury, 4.28%. Corey, I'm going to put you on the spot and we're just going to have a little bit of fun. Take a guess of how much you think the 10-year bond yield either increased or decreased over the month of October. Take a stay. And I promise I haven't read this anywhere. I would say at least 65 basis points. You're good. I knew you're so smart. You are so smart. Very close, very close. And I had I not seen that, I would have probably said, "You know, looking back on it, maybe 25 to 30 basis points." So I think your number is much better than my guess would have been. The exact number, 48 basis points. So almost one half of a percent, folks, that we've seen the 10-year yield rise over the month of October. Now, again, you'll wonder why do I get so frustrated in all of you that are attempting to get a loan and buy some real estate or frustrated? This is the reason. This is the reason. Now, for, you know, earlier this week, we joked, of course, that, well, actually last week to be real accurate, last week we joked, "Oh, the 7% mortgage is coming back on Tuesday when Dwight was with us." We did slightly go above that 7% mortgage and now, Cory, we are solidly above the 7%. We're, according to mortgage news daily, as of today, the national rate, 7.09% up 7 basis points for the day. So what we're starting to see, Cory, you know, of course, is you and I and Dwight know, you got the Jenny Mays and the Fannie Mays, they trade differently than the government treasuries, which is what we talk about when we say the 10-year yields doing this or doing that. But Cory, this is, you add this on top of everything else that the consumer is facing at this point. And have the bone traders now and IE mortgage rates just completely eliminated the momentum that all of you were enjoying when we were a sub 7% and heading south, now we're heading north. And again, where's the end? Where's the end at this point? What's going on with everybody right now? Yeah. And to me, well, I can tell you at least in our little neck of the woods here and right now, it's very frustrating for the buyers. They saw a little bit of relief, prices didn't come down, but the cost of the house came down just for the financing mechanism. And now you're not back to the highs again, but you're getting up there into the unaffordability range again. So the buyers that had things, they were searching, they found a house, maybe they didn't walk in early enough. That's incredibly frustrating, as you can imagine, because you kind of have your heart set on something and you just see the cost rise. To me, and obviously you're the expert in this one, but to me, the bond market seems to be clinching up much more for the election than the equity markets. And if I sit back and look at it, I think, OK, well, maybe, hopefully fingers crossed if we get past the election, whoever wins the White House, as long as that party doesn't win, the other two houses like we've talked about, maybe the bond market will find some relief realizing that they're not going to be able to push these plans through and spend all this money. Is the only thing I can think and hope for that maybe we'll get some relief right next week if everything is known by that point? Yeah. Yeah, exactly. Well, Wall Street's perspective on this core, you're very accurate on this one, as always. Wall Street's perspective is, look, you look at both candidates and I was saying at the beginning of the show, based upon our topic, is Wall Street or Wall Street landlords good or bad for your homes value, from the bond trader's perspective, what they're really looking at is both candidates, both candidates want to do things that are not going to be good for inflation. As a matter of fact, both of them have strategies, but again, back to your point, it all depends upon if and when anything gets done in Congress. But I think these bond traders are sitting back and going, okay, the Fed gave us a half a percent cut. We're going to be most likely getting a quarter percent cut in November, maybe one in December, but look it, there was no, obviously, holding on the half a percent. So a quarter percent cut twice, it's going to be like spitting in the wind, right? Okay, big deal. Psychologically, it sounds good, but in reality, it didn't make any difference. And folks, this is what we warned you about. I remember sitting behind this microphone back when the European Central Bank, the ECB, gave that first interest rate cut months ago and I said, look, and they had a negative reaction in their stock market and I said, look it, this is what we've got to be careful about. We have a half a percent cut, but as we always emphasize on this program, you know, don't, you guys are all smarter than this. Don't fall for the headlines. Listen to what we're saying because the bond market doesn't give a damn about what the Central Bank does. And this is exactly the point we're talking about. They don't give a damn about what the Central Bank does, meaning the Fed, they're going to go off of what they perceive to be good or bad economic data, economic times ahead. And so as the bond traders are sitting back going, you got two candidates, obviously one of them is going to win eventually. Both of them are not addressing the deficit issue that this country is facing, neither one of them are addressing any type of program that would, you know, slow down the economy. They want to, you know, especially Trump wants to, you know, obviously cut taxes and increase the economy and so on and so forth. You can go through all of Harris's plans. The bottom line is they all sound great and we want it from a Wall Street perspective, but it's none of their plans, none of them address inflation. And so they're all going to be inflation getters, right? These plans are all going to entice inflation to grow. And when you have a Fed that is again, not doing much of anything at this point, like I said, if we get a quarter percent, it's like spitting in the wind. What do you do? You're a bond trader. You're going to continue to dump the bonds, continue to drive those yields up. And Corey, I would not be surprised. I would not be surprised whatsoever if by the end of this year, and especially if Trump wins. And, you know, I'm voting for the man, so, you know, my favoritism here, but I would not be surprised if Trump wins that you don't see a seven and a half percent 30 year mortgage. I really honestly think that that's very possible because of, you know, he wants to be so aggressive again of cutting taxes and in spurring economic activity, which is the opposite of what the bond trader wants. That's, that's my perspective on it. You agree? Yeah. No, I, I do. Unfortunately, I do agree and it'll be interesting to see that whoever wins, you know, they take those first few days, even though they're not even technically in office yet, but they're going to be talking about all these plans, all this stuff. You won't really get down to the root base of what they can actually accomplish, you know, until well after January, February, March. Yeah. Now they're talking about, you know, as you and I have talked about, hey, when are we going to know who won the election might be Tuesday night, might be Wednesday, hopefully by Thursday, Friday, but they're saying you might not know who wins, you know, the House of the Senate for one or two weeks afterwards, and that's going to be, you know, not a really good situation volatility wise for everything, but I, I do agree with you that both, and I guess that's what politicians do, right, pile on, pile on, pile on, it's all inflationary and people have to remember, and I think the normal blue collar every day, you know, man and woman that's out there working, they remember that we're not talking about two percent inflation, three percent inflation, we're stacked up over where we started in 2019. So unless we go negative, which sounds weird, but nobody really wants, you're just adding on to these massive increases that we're already been living with or trying to live with. You're absolutely right. You're absolutely right. Yep. Yeah. You hit it right on the head. You know, we had the September PCE today, you know, up two tenths of a percent month over a month, but year over year up 2.1. So this is on top of the turquoise exact point. This is on top of a year ago, and I didn't see what the data was, but a year ago, whatever inflation was, tack on another 2.1 percent, right, or a PCE, which is basically a culmination of different inflationary calculations and things. So yeah, it's a challenging time when it comes to the mortgage side of it and so many other things. All right. We'll hit the after hours numbers with Microsoft with, or excuse me, with Apple Amazon and Intel when we come back, then we'll get into our topic, our Wall Street landlords, good or bad for your home value. Let's turn it over to Greg Neff. He's got news traffic and weather. Hey, Greg. Welcome back to the John Sanchez Show and his talk, 780KOH, with core edge of edge Dwight Mallard has the afternoon off. We finished down 378 on the down. The NASDAQ declining 513 S&P lower by 108. Once again, weakness across the board, meta, Microsoft, et cetera. All right. Let's get to this after hours number, but first, I want to remind you, my friends over at S&W tractor, they're making deals as we come into the end of the year. They've got the great Coyote tractor, a machine that is going to last you for so many years. You'll get that back breaking work done. How do you find them? They're located at 4880 East nylane in Carson City. They're online at s&wtracker.com, or just pick up the phone call, stand on the crew at 882-1225. They'd be happy to sit down with you and talk about 0% financing for 84 months on select models and all the implements. Everything you need to walk away with a beautiful orange, beautiful orange Coyote tractor. All right. Now, let's get down to our after hours numbers and then we're going to move into our topic again, our Wall Street landlords, good or bad for your homes value. All right. Let's start with the A's. We'll go with Amazon. The commerce giant doing very well in the after hour session. They beat on the earnings expectation on both the top and the bottom line. They made a buck 43 Wall Street looking for $1.14, Rev came in at $158.88 billion, Wall Street was looking for $157.2 billion. Stock finished down $6.33, about a 3.28% loss to $186.40 right now in the after hours it's up $10.64, 5.71% gained a $197.04, so that'll help out the Dow a little bit tomorrow. Apple, well, kind of counteracting that. Apple moving lower right now because of the report. The earnings and the revenue top Wall Street expectation for the fourth quarter, but on the other hand, they reported a weaker than expected revenue tied to max and to iPads. Regular session, the stock finished down $4.19 to $2.25.91. Right now in the after hours it's down $3.14 to $2.27.77, and when that surprised everybody Intel, which of course is down about 50% or at least I was told this report, down about 50% year to date, shares are moving up down 78 cents regular session at 21.52 and now up a buck 53 to 23.05, they reported better than expected third quarter revenue, 13.28 billion, expectation 13.02 billion. Check the future is not getting a lot of action at this particular time course. It's still very early, but I'll continue to monitor them and go, "Oh, we just got some breaking news. Boeing and the Union have reached a sweetened contract offer in bid to end the strike." Let's do a quick check here, folks. Sorry, this is joys of live radio. See if we got any reaction to Boeing stock based on this headline coming across. Yep, we do. Stock finished down $4.98 to $1.49.31. Right now, it's up $2.88 to $1.52.19. See, Corey, this is the way it's been. It's so much fun. I absolutely love it, but it's like, my God, I just need more time. I need more time, Greg Neff. Give me more time, brother. Give me more time. Oh, my gosh. All right, let's get down to our topic. Okay, as Corey alluded to at the beginning of the show, we go back to 2008, 2009. We think the world's coming to an end. People thought the home prices were going to drop to zero, right? Just go back in that time period. I know many of you have forgotten, but it was terrifying, absolutely terrifying. Wall Street firms were failing, banks were failing. We had it all coming at us. All of a sudden, this new buyer of real estate, rental real estate, emerges, and I can't go into any specific names, but you know who they are. They decide, hey, you know what? This rental real estate that genius says like Corey and the rest of you, that own investment real estate, maybe you guys are on to something. So you get these major Wall Street firms with billions of dollars behind them coming in and they start gobbling up homes. And we discussed it like it was yesterday, all the things that they did. Corey, real quickly, relived that time period before we go back to this topic. Relived that time period when, as you said, you know, sitting on this show, hey, I just got a call today from XYZ institutional. They're looking to go buy a whole, literally, I remember you saying a whole street of homes, right? I mean, that's how crazy it was at that point. Yeah, they were coming and they had been doing business down in Vegas, not through the next step seems to be, once they're down there, they start coming up here. It was a big hedge fund that is still around today. And I never ended up doing a whole bunch of stuff for them, but they're still, they still own houses around here. They haven't been purchasing over the last few years. But if you remember back then, everybody was digging for yield. Everybody wanted yield. Where can I get some, you know, return on my cash investments and, you know, I'm surprised, I guess, because we had never had such a downturn in the real estate market, but you're surprised that Wall Street didn't look at single family housing earlier than that. But it was just the perfect storm of them to jump in, leverage their size, cut down costs across the country, get everything under single management. And it was all a yield play. And then, of course, you know, they can take all that yield and start slicing and dicing and selling it off. And they do what Wall Street doesn't figure out how to make money off every inch of it, which is no problem with that whatsoever. But it was really a, I remember going through it and it wasn't like, Oh, wow, if they're in it, wearing it, but it was kind of a, it was a point to say, okay, this thing is not going to go to zero. I mean, if you've got these huge institutions in here saying this, that we're already doing, then this isn't going to go to zero. Maybe this is the bottom. Was it a savior? I mean, I use that word very gently, kind of a savior type of feeling that you felt Corey being a real estate brook for so many years when, like you said, when it's almost like when we go through these periods where the Wall Street just goes down, down, down, down, day after day, and then all of a sudden, you know, here come the institutional buyers. And it's like, Oh, finally, you know, a knight in shining armor type of thing. Was there that feeling in the real estate community when that started to happen? No, because again, we were, we were right on the front lines with them, but at the time, we didn't know what the plan was. Is this going to be a long term play? Is this going to be, were they going to get into the flipping market? That's what everybody was doing back then. So we didn't want to hold stuff short term fix it up and be huge competition against what we were trying to do at the time. And looking back on it, obviously, it makes sense that it would be a long term play, but we didn't know at the point. We just knew that there's a lot more betters for these things. The prices aren't going down anymore. They're holding stable, kind of going up it. It does give you a sense of relief. You know, I've told these stories before, we used to buy something on a Monday and we try to have it, you know, in contract and sold within a couple of weeks, because it was going down every single day. The market was dropping every day in the real estate market. So when it started to kind of plateau and not doing that, you could take a little bit of a breath and sit back and figure out a game plan. Exactly. So they put a floor on the on the pricing side of things. Well, again, my, my inks with this whole thing is Kamala Harris has said that if she wins the election again, she's going to ask Congress to pass what's called the stop predatory investing act, something she's come up with. And along with some fellow Democrats wasn't just solely her idea. And that would remove the tax benefits I mentioned specifically for corporate landlords. If you own 50 or more homes, no interest deduction, no depreciation that you could take. And there's a few other things that she wants to wipe away. I'm saying that is absolutely wrong because these corporate giants have saved things. That's why I like to hear it from Corey. He's in the trenches and they did do it. Now her bias that, Oh my God, they're gobbling up homes and you can't, as a mom and pop investor, there's nothing out there for you to buy. Well, here's some facts for you folks. Wall Street landlords that have more than 1000 units in their portfolios own just one percent of all of America's family homes and 4% of all houses that are rented out. That means 90 depending upon what stat you want to look at, 96% of homes that are out there are owned by everybody else. So are they gobbling up and screwing up the market according to Kamala Harris? No. Let's turn it over to Jack Saban and wrap us up in the right now traffic center. Welcome back to the John Sanchez show on his talk 780 k OH with Corey edge of edge really speaking of which Mr. ads can we get you for number sir? 673 6700 beautiful and of course Dwight Millard centered you on lending not able to be with this this afternoon. His phone number is 240 2022. Alright, we've been talking about our Wall Street landlords good or bad for your home prices. Let's give you some stats real quickly here. I want to share this with you. Now Corey, close your eyes and pretend that you didn't have your you know 25 plus years knowledge and you're figuring out where you know what's the best place to buy a house to rent it out. What am I looking for and most likely you're going to come across the same thing that these Wall Street investors are looking for. They screen the country for cities with towns with population growth, towns with job openings, places there's likely to be competitions for home for homes. They prefer three bedroom suburban properties that are around 1500 square feet in size that offer a convenient commute downtown. Young parents like these kinds of homes landlords like to rent to families because they become sticky tenants once the children enroll in local schools. Agree with all that Corey? Yep, absolutely. 53 zip codes were their most densely clustered offered cheap housing. Medium single-family price in these areas where these landlords have been buying 345,400 according to Redfin data that's around one fifth below the national level. Rents however only 3% below the national median. Investment returns as Corey mentioned well rental income on a home in Converse, Texas where they have some not 8% compared to 6% for a median price US home. One final stat I want to mention I'm going to let you wrap it up Corey. Medium rents in zip codes were again these 53 zip codes. Medium rents from Wall Street landlords have risen 30% over the past five years compared to 23% gains in the US overall according to Zillow. So are they gouging the public? I don't think so. Is it clear that big investors led the increases? I don't think so. So the bottom line again as we're rapidly out of time is value in the 53 zip codes have increased 64% on average over the past five years compared with a 48% rise nationally based upon Redfin data. So can you say that with these Wall Street firms coming in and buying these homes representing basically 1% of all rental homes out there that they've driven up the price on average 64% compared to 48% Corey answer that question. Absolutely not. There you go. I think it's important to remember too just like you said 1% of all houses owned by these entities 4% of all the rentals. I believe over the last year to two years they've been net sellers upon not net buyers. So this is all a fallacy. It's a political thing and there's no chance of ever getting anywhere hopefully but don't let it scare you or panic you because it's not it's not reality. It's not what's really happened right. Oh Corey I couldn't have summed it up any better it is and again it's once again I keep doing these topics folks if you notice before we get to election it's all as I call vote getter you know hype that makes no sense and they think these politicians think we're stupid and that we don't understand we're going to follow and believe everything they say. Don't listen to this show listen to Greg show listen to other shows get the true facts to help you make your best voting decision. Excellent job Corey Edge excellent job. We'll do it again tomorrow on the John Sanchez Show. Nonform payroll numbers coming your way tomorrow can't wait. Have a great night. This program was sponsored by Sanchez wealth management. The material in this program was intended as general information only and should not be taken as specific investment tax or legal advice. None of the information on this broadcast was intended to be a solicitation for the purchase or sale of any security. Further information is available by contacting john@sansheswealthmanagement.com or 775-800-1801. John Sanchez offers securities and advisory services through independent financial group LLC a registered broker dealer and investment advisor. Member FINRA SIPC securities only offered in states John Sanchez is registered in. Sanchez wealth management LLC and independent financial group LLC are unaffiliated entities. Synergy one lending equal housing opportunity and MLS number one nine zero seven two three five Dwight Millard and MLS number two four one two five nine phone number seven seven five two four two two. The information provided today is for educational purposes only. The position strategies or opinions of the show do not necessarily represent the position strategies or opinions of Synergy one lending or its affiliates. All information loan programs interest rates terms and conditions are subject to change without notice. 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