Why You Can’t Afford a Home (But Blackstone Can Buy Them All)

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Blackstone’s real estate scam is perfectly legal—and perfectly nauseating. In this episode of Watchdog on Wall Street:

• How Blackstone buys homes at a discount and flips them… to itself
• The trick that doubles their portfolio value overnight
• Why you can’t afford a house—but you can rent one for triple the cost
• How Wall Street turns neighborhoods into cash cows

It’s not a housing market—it’s a racket.

Episode Transcript

Speaker 1 (00:00):
The Watchdog on Wall Street podcast, explaining the news coming
out of the complex worlds of finance, economics, and politics
and the impact it we'll have on everyday Americans. Author,
investment banker, consumer advocate, analyst, and trader Chris Markowski.

Speaker 2 (00:16):
We've spent a great deal of time here on the
program going over the real estate scam. I'm going tube
been doing a lot of homework on this over the
course of the weekend. I'm going to show you how
the Blackstone real estate scam works. And again, my apologies
if you get nauseous when all is said done, because
this is nauseating, perfectly legal, perfectly legal, yet nauseating. And

(00:41):
when I told you about people that have had ethical
bypasses at birth. So okay, well, Blackstone comes, Blackstone comes.
They go to a new development, new development's going up.
You got a home builder that's there, a Pulty Homes
or a homes by Town or a Toll Brothers development,

(01:02):
and they step in, they step in and they buy
up everything everything. And again, you're going into a development.
Let's say you're buying four or five hundred homes. Uh, yeah,
I'm buying four or five hundred homes. I'm gonna pay
a cash I'm paying cash. You're gonna pay for finance
and anything. Let's say the home was normally gonna be

(01:25):
priced at half a million dollars. Oh they're they're picking
them up on a discount. Say they're picking them up
for like three hundred thousand dollars. Now again again, could
flip it right away? No no, no, no, no, no, no, no
no no, don't do that. Don't debt. What we're gonna do.
What we're gonna do. You know, there's gonna be different
models in every single development. But whatever, they kind of

(01:50):
keep that development kind of looking like it's a construction
site for a period of time. Period of time. Okay,
then what they do? Then what they do? Give it
a year, give it a year and a half, two years.
That home that you bought for three hundred thousand dollars,
Blackstone sells that home to itself another Blackstone fund for

(02:19):
seven hundred thousand dollars. Baba boom ba poo oh you
got comps now, Oh yeah, the neighborhood's got comps. Oh
of seven hundred thousand dollars. They're all valued at that
because they just sold homes seven hundred thousand dollars so

(02:39):
we can't afford it. You turn them into ridiculous rentals. Uh,
not to mention the fact they're now in their portfolio
worth double, worth, worth double, more than double than what
they spent on it. And then they can borrow against
those homes and they can charge their client. It's quite

(03:02):
the racket that they've got going perfectly legal, unfortunately. Watchdog
on Wall Street dot com