RFK's SHOCKING *New* Solution to the Housing Crisis

well Robert F Kennedy might not exactly

be mainstream but at least according to

political unor polls on X when you pit

Robert F Kennedy versus Biden Kennedy

beats him and when you pit Kennedy

against Trump they tie now obviously in

the general election we expected this to

be a rematch of trump V Biden but the

point is clearly at least some of rfk's

policies are Making Waves one of those

in includes a topic I happen to be well

well have basically dedicated my career

to and that is real estate bringing back

the 3% mortgage rfk's plan to level the

economic playing field let's take a look

at this as posted on the hill Democratic

presidential candidate Robert F Kennedy

has shown an impressive gift of Pol

policy Innovation recently he began to

roll out his economic plan which would

among other things level the playing

field for working American seeking to

buy a home Kenny points out there has

been a shift of $4 trillion of wealth

since 2020 from the working class to the

super wealthy uh let's just quickly make

the point here that that's probably

going to keep happening I hate to say it

but I just made a video about basically

the death of the middle class how the

middle class is getting crushed and

unfortunately I think there's a chance

that crushing of the middle class will

continue as housing continues to get

more and more affordable and even if we

end up having Goods deflation the only

thing that could come from Goods

deflation is a likely layoff cycle which

would once again crush the middle class

as middle class wages go down lower

class individuals are able to bump up

into the middle class hopefully and

upper class individuals take more of a

share of the stock market and real

estate wealth I hate to say that that is

what I think our f fut is heading

towards which made me really interested

in rfk's point he says this in part is

because of inflation but this is where

we differ a little bit right I think

inflation I I personally am not

convinced we're going to have a second

wave of inflation but it could happen

and that's just going to make it even

harder but I think let's say you have

inflation guess what it's bad for the

lower and middle class let's say you

have deflation like negative inflation

ironically also bad for the lower and

middle class because yes things might

get less expensive but it'll come at the

cost of a recession which means you

might lose your job so goal being hold

on to your job right but what is rfk's

goal here and this is the interesting

part not so much the chat about this but

it has to do with a mortgage Kennedy's

proposal would change the tax code to

disincentivize the corporate takeover of

residential real estate while

guaranteeing government-backed mortgage

interest rates of 3% for millions of

buyers

now it's very politically popular to

sort of fight the corporate takeover of

single families do keep in mind that

over 80 to 90% of properties are

purchased by home buyers that depends on

what Market you're in when you actually

look at the sliver of institutional

ownership of single families it's in the

less than 3% range however and this is

different than corporate takeover the

biggest competition that home buyers do

have are local investors it's usually

mom and pop investors they're the ones

that do end up competing with home

buyers but either way Kennedy makes this

proposal for a 3% mortgage now this

program would basically sell bonds to

individuals who want to invest in

probably higher yield bonds because

otherwise you would just buy t uh

treasury Securities so you'll have to

pay a higher yield on these bonds the

government would but in other words

they're going to try to come up with a

way to reduce firsttime home buyer

payments by giving them the chance at a

3% mortgage which could save about 1,000

bucks a month we could fact check this

pretty easily if you take a 20% down

deal on let's say a $400,000 home so we

end up going with let's say a

$320,000 loan amount and the current

interest rate is say 7.25 on a $ 3-year

fixed and we drop this all the way down

to 3% our monthly payment is going to go

from about 2200 00 to

$349 almost 1,000 bucks that was about

850 bucks there on a $320,000 loan so

this is not incorrect however as

exciting as that is not all the things

RFK is saying are factual for example

this line if you have a rich Uncle who

will co-sign a mortgage for you you can

get a much lower rate because the bank

will base it on his credit rating rather

than yours this is incorrect when you

get a loan all of your Cod borrowers

credit scores are lined up and they're

going to go by the middle score of the

person with the lowest credit score

Unfortunately they don't take the best

credit score because they underwrite to

the highest level of risk which is the

person with the lowest credit score so

that's not exactly accurate but hey you

know politicians make little oopsy

dupsies I think the idea here is can we

have a 3% program that then lets home

buyers basically buy houses for cheaper

than what even mom and pop investors

could and so in that case I would say

the answer to that is yes now if we do

end up having deflation rates are going

to go right back down to 3% anyway the

FED Cuts rate to zero rates to 0% we

have a recession interest rates are

going to go down to 3% for everybody

anyway but yes let's be real for a

moment if Mom and popop investors in a

neighborhood and corporate landlords if

they're even borrowing you know they

could be borrowing through other means

but let's just say investors who are

borrowing on a 30-year fixed rate

mortgage if they're paying 75% and a

first-time home buyer is paying 3% they

will absolutely be able to be much more

competitive than the investors and yes

you would be handing a big win to

first-time home buyers not a terrible

idea I personally think the best case

scenario is we figure out how to build

more housing of course as you've seen in

States like California that seems to be

politically uh too complicated to

understand oh well you'd think the uni

party of California would figure that

out I could say that because I ran for

governor in California and tried to

change it but anyway back in the 1930s

and 40s let's keep going here back in

the 1930s and 40s Innovations and

housing policy perfected the 30-year

mortgage yes 30-year amortised mortgage

nobody really calls it that anymore but

yeah uh introduce the government backed

uh Insurance these are your fanny ma

your Friday Max they basically say hey

uh you can get a government backed

30-year mortgage which without the

government frankly you wouldn't have a

30-year fixed rate mortgage you'd be in

a system like what you have in Europe or

in Canada where you might get a 10-year

fixed rate term more likely a 5-year fix

rate term and then you either have to

refinance sell or pay the higher payment

so as far as rfk's plan it's not a

horrible idea for firsttime home buyers

I don't think it's the best solution but

it's definitely something that would

help firsttime home buyers get in in

competition with your largest competing

type of home buyer which is the local

mom and pop real estate investor it's

the person who's buying their second

third or fourth rental property that's

your biggest competition outside of

other home buyers not the corporation uh

in that we can statistically prove here

for example is a housing wire post which

breaks exactly this down it shows you

that ey buyers like uh you know a red

fan when they were buying or an Open

Door they buy just half a percent of

properties companies that own a thousand

plus properties own just. 3% of

properties uh or or purchased just 3.3%

of properties in the second quarter of

2023 uh those who own a 100 to 999

properties were just .7% of buyers and

those buying 10 to 99 Properties or

holding 10 to 99 properties were 2.7% of

sales is actually those smaller mom and

pop buyers that owned between 1 to n

properties that were the biggest

competing Force again about 20% versus

that 25 to

20% versus that 70 5 to 90% home buyer

competition again depending on what type

of Market you're in so there's the data

to fact that up and back that up but

what I want to ask is what do you think

about an RFK presidency and do we need

an independent that could finally have a

real chance against a Democrat or a

Republican or are we just going to adopt

their ideas why not advertise these

things that you told us here I feel like

nobody else knows about this we'll we'll

try a little advertising and see how it

goes congratulations man you have done

so much people love you people look up

to you Kevin P there financial analyst

and YouTuber meet Kevin always great to

get your

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