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00:00 Josh
President Trump taking aim at big institutional investors buying up single family homes, but carving out an exemption for one fast-growing corner of the housing market, that would be build to rent. That’s the model where developers build single family homes specifically to rent rather than sell, adding supply without competing directly with first-time buyers. For more, we’re bringing in now Bruce McNeilage. He is co-founder and CEO of Kinloch Partners. Bruce, it is great to see you. So let let’s dive into this, Bruce. So President Trump, he’s got these big institutional investors in his sights, Bruce. Made it clear he does not want them buying the up those single family homes. But in this EO, this executive vet, the executive order, he exempts uh your sector, Bruce, the build-to rent sector. What do you think explains that carve out, Bruce, one? And two, I mean, you saw it, what did you think? What could it mean for the sector, the industry long term?
01:03 Bruce McNeilage
Well, our business has been booming for a number of years, Josh. and what it’s going to do and what we do is we add supply to the market. We don’t take houses out of the market. We’re creating new houses. So what that does is it puts stock out there. People have a choice for the first time in many years to rent a brand new house and it’s not taking houses off the MLS. It’s creating new housing and actually that’s helping people buy existing houses because again, we’re creating new houses.
01:42 Josh
The executive order, Bruce, it does mention talking about this carve out, narrowly tailored exceptions. and any line of sight there? What what are some, what could be some possible exceptions, Bruce, some gray areas?
01:59 Bruce McNeilage
Well, you know, what is a investor? What is a large investor? I’ve seen where they’re going to consider an investor that owns 10 houses or more Wall Street or a large investor. If that’s the case, Josh, my grandparents were Wall Street, right? They owned over 10 rental houses. So I’m concerned that they’re going to go really deep into this and go after small investors. And you know, there’s 86 million uh houses, rental houses in America and only 4% of them are owned by institutions. So I think what he’s doing is he’s looking at something in the wrong light. But again, built rent operators are going to uh profit from this and it’s going to continue to make our sector boom.