Blackstone Prepares A Record $50 Billion To Snap Up Real Estate During The Coming Crash

Prepping up to scoop up all those foreclosures so that they can charge you double in rent, and what choice will there be when you either have to rent from them at whatever price they decide to charge because nothing else will be available. That is exactly what they are counting on. They can control entire real-estate markets in select markets across the country.

Want to like and work in say "Denver". Well, you have to rent from us because we buy everything in Denver. You will not have a choice.

You shall own nothing and like it.


Blackstone Puts Finishing Touches on Record Real-Estate Vehicle

www.wsj.com...

Blackstone Inc. BX -1.48%▼ is in the final stages of raising a new real-estate fund that would set a record as the biggest vehicle of its kind, defying market volatility and a crowded landscape for fundraising.

The private-equity giant said in a regulatory filing Wednesday it has closed on commitments totaling $24.1 billion for Blackstone Real Estate Partners X, the latest iteration of its main real-estate fund.

Blackstone Prepares A Record $50 Billion To Snap Up Real Estate During The Coming Crash

www.zerohedge.com...

According to the WSJ, Blackstone is the final stages of raising a new real-estate fund that would set a record as the biggest vehicle of its kind, defying market volatility and a crowded landscape for fundraising.

The private-equity giant said in a regulatory filing Wednesday it has closed on commitments totaling $24.1 billion for Blackstone Real Estate Partners X, the latest iteration of its main real-estate fund.

According to the WSJ, Blackstone is committing about $300 million of its own capital and has allocated an additional $5.9 billion to investors, which will bring the fund to $30.3 billion when it is finalized. The firm raised the fund, expected to be the largest traditional private-equity vehicle in history, in just three month. It was also Blackstone that set the prior record, with the $26 billion buyout fund it raised in 2019. The new real-estate fund will be 50% larger than its predecessor, a $20.5 billion pool raised in 2019.

Together with funds dedicated to real estate in Asia and Europe, Blackstone will have a war chest of more than $50 billion to do so-called opportunistic investments, which tend to be higher-risk deals with the potential for higher returns.

a reply to: infolurker

Doesn't it seem like a bad idea to inflate real estate prices so regular people can't afford to buy a home only to then have to charge rent so high that people still can't afford to live there?

originally posted by: Bluntone22
a reply to: infolurker

Doesn't it seem like a bad idea to inflate real estate prices so regular people can't afford to buy a home only to then have to charge rent so high that people still can't afford to live there?

Not really; government will swoop in and expand their subsidized rent program, adding more citizens to the list of people who have to rely on the government to exist.
Over 50% of Americans receive some form of government benefits- and that's not counting the millions of 'undocumented' nobody wants to talk about.
This is how you turn a nation into a socialist country with few even noticing it's happening. Pulling the final plug will be far easier than the few people who see what's happening want to admit.

originally posted by: Bluntone22
Doesn't it seem like a bad idea to inflate real estate prices so regular people can't afford to buy a home only to then have to charge rent so high that people still can't afford to live there?

Of course. And wonder where it breaks:

When the unaffordable housing is empty?

When the city decides they're not collecting enough taxes from rentals?

When said taxes are used to cover rent subsidies?

I’m surprised no companys are building monster apartment buildings or converting old warehouses into apartments, then buying up old dilapidated trailer parks and neighborhoods and flattening them with D-8 cats, making a shortage of housing.

a reply to: 38181

That is happening here... in the Toronto area there have been more active tower cranes building tall condos than anywhere else in the world. City I work in is converting old churches, schools, factories into lofts, and also building up.

Toronto is also on the list of the "smart cities" proposed by the WEF.

a reply to: infolurker

The property managers of my place just hit us with a vacation date.
12 years we've been here and they gave us till Aug 31st. Never late
with the money and even paid right thru the pandemic no problem.
They said they want to remodel and sell it.

So now I'm off my truck until I get this figured out but what I've figured
out so far. Is there's a lot of pos looking to scam people in the market.
So the amount of money I'm looking at to move means I could get scammed
for that huge amount. The crooks and the greedy seem to be falling over each
other.

So it looks like we'll be getting victimized by this new ideology soon enough.
But something else, one of my old school friends manages an apartment
complex. He said they have a family living in a unit there that hasn't paid a
dime of rent in two years. So in light of that information I think I might
make the managers here a counter offer to the one they proposed. One that
would be much more prudent for both parties.

Something better then what it's going to take to get us out. Because
they'll have to pry me out with a nail puller before I go to the streets.
It would be far better for them to consider the timing of their proposal.
And just let us return to paying the rent. Judges aren't tossing people
out right now but I'm still willing to be fair. Inform them right up front
we can't just up and leave. And we aren't going to the streets with out
a blood bath.

Ball in their court.

You mean the company that Stephen Schwarzman is the CEO of? Trump created a "Strategic and Policy Forum" when he was elected and appointed him as the chairman.

Things that make you go hmmm.... The largest transfer of wealth in history has happened ever since the virus hit under Trump's watch.

BlackRock is another company Trump seems to trust as it's CEO was appointed as the one who would lead America's economic response to the coronavirus. We see where that's gotten us.

"But but... Trump is in it for the common good, not the elites!" Yeah, right. You think the coronavirus was planned? Look at the administration it started under and how the ones appointed by Trump to lead the economic policies and coronavirus response are the ones benefiting the most from the virus.

a reply to: infolurker

Thank you for the important information and links.

It's the american playbook writ large. Private equity will kill us all.

Just as long as companies can't sit on property forever, I don't really care, but we're going to repeat 2008, over and over and over, as long as companies can buy and sell houses, and individuals have to secure loans to buy them.

If the loan issuers know that their defaults can be "bailed out" there is no incentive to use any other system.
All they have to do, to hedge their existence, and their top C level employees and executives "parachutes" is to invest money into funding the private corporations buying the properties in the first place.

They get the lump sum loan payments from themselves, to shell real estate companies, so that when the bank collapses, they're still fine, even if the bail-out doesn't happen... But if the bail-out happens again? Repeat, ad infinitum, farm bail-outs, farm tax dollars, farm private dollars, screw the individual.

This is how it's happening, and each time the prices rise, so a few people at the top can ride golden ponies.

When the class warfare starts, let me know, I'm investing in "supplies".

a reply to: Bluntone22

A bad idea from your or my perspective but a wonderful one for those that worship capital.

a reply to: infolurker

Not really; government will swoop in and expand their subsidized rent program, adding more citizens to the list of people who have to rely on the government to exist.

Over 50% of Americans receive some form of government benefits- and that's not counting the millions of 'undocumented' nobody wants to talk about.

Only seems fair since 100% of big businesses receive government hand outs.

This is how you turn a nation into a socialist country with few even noticing it's happening. Pulling the final plug will be far easier than the few people who see what's happening want to admit.

Always has been socialist where business interests are concerned. Always has been a corporatist state (to use Benito Mussolini's definition of Fascism).

originally posted by: infolurker

You shall own nothing and like it.


Blackstone Puts Finishing Touches on Record Real-Estate Vehicle

www.wsj.com...

And as much as people think that 2030 is mostly hype,
ESG Values are partly responsible here. This is something
to keep and eye on, it is rapidly changing the markets.

So absolutely no more monopoly laws in this country? Okay makes sense if every other industry is allowed to do so (big pharma, big tech, auto industry, power industry, cable etc.) what's to stop these rich asshats?! Maybe this one will fail majorly like the Chinese firm that attempted to do the same in America and then just recently defaulted on its first interest payments... one can only hope..

The good ole' book did mention something about life getting so unbearable and basically rigged that we will beg for death and right before it gets to the breaking point we will be "saved".

My question is; by whom and when.. can't take much more of this.

originally posted by: 38181
I’m surprised no companys are building monster apartment buildings or converting old warehouses into apartments

I'm surprised nobody (in this area at least) is buying defunct retail property and redeveloping that as housing (apartments, town homes, etc.)

Yes there is zoning, but IMO rezoning should be more attractive to city hall than decay.

Somewhat nearby here is a former Sears, on multiple blocks in a prime location, that's sat empty since their bankruptcy. Someone's been paying both taxes and private security; if I owned that thing I'd want it OFF my hands!

a reply to: infolurker

Well firstly its 30b available to spend on the US the other 20b is for asia and europe. 30b isn't going to to nearly as far as you make it out to go. Also if there is a crash good luck finding people to fill those units and have fun dealing with evictions and not getting paid.

I will say though I have been waiting for the same thing to finally buy my first house. The prices currently are asinine and would only serve to lose me money in the long run. You would either have to be already very up on previous property, very well off, or dumb to buy anything in the current market... regardless if you are a consumer or a big business in almost all cases.

a reply to: RegularJo76

Things that make you go hmmm

Shhhh, that's to much for some to compute. The way I see it is who is wagging who here. Is Trump the wagger or the wagged.
I think he is the wagged. He may have not been their first choice but they decided to run with him when he won in 16.
Sure, they probably wanted Clinton or Bush to put the face on the farce but got him instead...

He knows ''all the best people''. Right and Joe's your uncle.

Hey, can I copy-write that one? Not POTUS but rather FOTF.

originally posted by: Bluntone22
a reply to: infolurker

Doesn't it seem like a bad idea to inflate real estate prices so regular people can't afford to buy a home only to then have to charge rent so high that people still can't afford to live there?

Why would Blackstone care? It's all about the money. Even if they end up with more real estate than they can utilize I'm sure the government would be more than happy to take it for a hefty sum(of our money.)

originally posted by: strongfp
a reply to: 38181

That is happening here... in the Toronto area there have been more active tower cranes building tall condos than anywhere else in the world. City I work in is converting old churches, schools, factories into lofts, and also building up.

Toronto is also on the list of the "smart cities" proposed by the WEF.

Yep, same in Vancouver, and all surrounding areas, less than 1% vacancy, and thousands pushed out in the last couple months, my turn next month.

They don't give a f@ck, but rest assured, in 1-2 years, you can rent a place, about 20% of what you had before, for double the money..or more. Great deal, I told the last developer at my door, as I fought the urge to literally kick his ass..he could only look down and nod.