Invest With Tarl

Tarl's Weekly Insights 12/20

Dec 20, 2023

Welcome to “Tarl's Weekly Insights," my take on real estate today. 

 

Hey there,

Welcome to Tarl’s Weekly Insights, my take on real estate today.

In these newsletters, we'll dive deep into the real estate world, share valuable investment strategies, and explore the craziness that life has thrown my way. Whether it's my struggle and journey of overcoming flipping, deciphering the insanity of the market, successful strategies being used in REI, or just me making fun of social media real estate investors.

I can't wait to share it all with you...

 

 

 

Dems Introduce Bills to Ban Hedge Funds From Housing Market

 

Between 2018-2022 I vocalized to any investor who would listen "Hey! Don't flip houses to hedge funds, not cool!" I have more than one friend during that time period who made A LOT of money buying and selling houses (or just wholesaling) properties directly to hedge funds in their markets for quick cash.

Now when I said "don't flip to hedge funds" I meant "Wall Street" hedge funds. The big ones supported and backed by large institutions like Black Rock, KKR, and other behemoths out there. Why was I against this? Because I knew that once those properties were sold, most would never see the market again.

The more that larger Wall Street funds buy Single Family Homes, the less likely us small to medium-sized 'Main Street' investors will be able to invest ourselves. Investing in single-family homes is the #1 way for middle-income families to be able to retire and build wealth, and when we flip our properties to Wall Street hedge funds, we potentially shoot ourselves in the foot when it comes to building our own wealth. At least that is my personal opinion.

NOW...banning hedge funds from altogether buying single-family homes? I am not so sure about that. Should this bill be signed (which I highly doubt it will), it would mean that any fund (or a corporation that pools investor capital) would need to sell their single-family homes over the next 10 years PLUS pay an ANNUAL fee of $10,000 per home if they own more than 75 properties.

I think the best way to stop large funds from buying properties, is to eliminate/reduce their #1 way to acquire properties...which believe it or not...it's us smaller investors selling them properties. They cannot function without US. Large funds do not know how to navigate direct-to-seller purchases like we do...they need us.

I do not, will not, support a legislation that creates a gateway to further restrictions on investing in single-family properties. This is a very slippery slope. Pay attention.

 

It's official! We have launched the first-ever support group for House Flipping Addicts! Learn more at www.tarlyarber.com/flip and watch my full breakdown video of what the group is all about on the website. In the meantime, check out my fun promo about the group:

 

 

 

I just did a great podcast with Jonathan Greene on "Zen and the Art of Real Estate Investing" You can check it out on trustgreene.com/podcast. we go over so many lessons when scaling your real estate business, pitfalls, fun stories, and more.

 

Let's stay connected! Find me on social media at @tarlyarber and stay updated with additional videos and content.

That's it for this edition of Tarl's Weekly Insights! Stay tuned for more each week!

Talk Soon,

Tarl Yarber