A new Bill, HR 1728, passed through the House with an overwhelming majority in a record 3 days. It’s now at the Senate. If the Senate passes as expected, you may soon see the end of creative real estate investing.
Matt Adams
[This just in . . . from long-time real estate investor and seller-financing expert, Dyches Boddiford:]
August 17, 2009
Several of you have contacted me about the status of HR 1728 that
will restrict seller financing (unless you are willing to get a license and
follow some additional rules). It was referred to the Senate B...anking
committee headed by Chris Dodd. He has indicated on a couple of
occasions that this bill is not high on his priority list. That is not saying
he is against it, but rather there is other, more important legislation
ahead of it. There is a good chance now that this bill will die in this
legislative session. But be prepared for it to resurface later.
Surprisingly, the National Association of Realtors understand [now, after
initially supporting passage of HR 1728) how bad this legislation is and has
been fighting it as well. Glad they are on our side. Seller financing is a
great tool for building, or trimming, your real estate portfolio.
Dyches Boddiford
Mike did this pass?
Pamela Harding Porter Do more to develop our natural gas, clean coal and nuclear energy and then we have a well rounded system that does not require dependance on any one thing. Wow, i wrote energy policy in 4 paragraphs or less.
Pamela Harding Porter Instead of raising taxes to pay for it, remove all subsidies from power companies and provide them a tax abatement for 10years and in return they need to put this system in place with their funds and they will be responsible for maintaining it as part of their energy mission. Then we need to look at deisel for transpor...tation since everything i have read indicates that deisel burns 40% cleaner than standard fuel and it is already rated at a higher mpg...so isn't that a win:win. Plus it is created from a number of sources other than food like ethonol. That needs to go...we use more fossil fuel with ethonol than without. Then we need to drill our own resources because the idea that we are going to eliminate this source of energy completely is not practical and if we are buying it from someone else that doesn't make sense either. Additionally, we are more conscientious about protecting the envirnoment than any other country so would this not be an environmental saving prospect.
Pamela Harding Porter it also imposes California energy standards on the entire country. I believe we should take advantage of all energy sources but the bottom line is that solar and wind need supplemental support. I think the energy captured from these sources can go to address the housing demand because it is the lowest level demand when... compared to transportation and industry. My thoughts on this would be that we need to retrofit our hightway and interstate system with these elements because the electrical grid is already in place and retrofit in this case i believe will be less costly than starting from scratch. it also eliminates the argument of not in my back yard and uses our roads to their highest and best use since they are already industrial in nature.
Pamela Harding Porter The current energy legislation will establish an auditing requirement for home owners. This energy audit will be required prior to being able to put your home on the market for sale. This audit will evaluate windows, doors, insulation, HVAC, appliances, etc. Basically all elements that affect energy efficiency. The key... here is that if you don't pass you will have to repair/replace all those elements, in the manner the government determines necessary; and until you do, you can't sell your home.
John According to Forbes magazine, homeowners helped create the recession. Finally someone with the guts to say it! Click on the link for the article. Pretty interesting!
Real Estate:321 fans
Rg Williams I will be one of the first to admit that real estate investors did add to the mortgage issue at hand with the "intention" loans secured. HOWEVER, creative financing has nothing to do with "loans gone bad"! In fact it is creative real estate investing that has kept many more loans from landing on the "foreclosure" books...! By taking away creative financing you do nothing more than continue to cripple the economy, shackle the Nation with further empty houses and loss of income. The best way to stabilize a falling economy is to allow the people of this awesome Nation to continue to work and generate income. Moving capital within the system keeps the system moving. Wake up people! This is not a joke, something that will go away! The elected officials have a responsibility to us who voted them in, to the Constitution of the United States. Yet they ramrod bills like this and many others through and thereby perform "treason" of the worst kind! "Give me Liberty or Give me Death"!
Augie Byllott As big a problem as this is for Real Estate investors, it is a broader issue impacting property rights and the ability of an individual to negotiate a contract. It will harm retirees and the elderly who may have acquired a few properties to supplement their retirement, HR 1728 could prevent their abiity to create this... supplements through receiving mortgage payments. We need to enlist every organization that represents American citizens who own or hope to oewn real estate to fight the inclusion of individuals with mortgage brokers and banks. Don't vent and be emotional, contact your Senator by e-mail, letter, fax, phone, or in person and tell them that 1 E (3) needs to de-couple the individual from the corporation.
Rick Zeitun What needs to be stopped is the retarded 535 people that we the people have elected to Congress. They are the root of every problem in this country. They just keep making mistakes, then pointing fingers at others when their decisions go wrong. Right now they just want to point the fingers at us real estate investors..., when in reality, it was simply their policies that created the problems in the first place.
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Michael J. Van Horn We need your vote to STOP this bill from passing. Please take a minute to contact your senator immediately. Cast your vote. Predatory lending is not caused by investors and the business owner. VOTE NOW!!!
Gabriel
Dear Senator XXXXXXX,
I would appreciate your no vote on HR1728 which limits creative options for real estate investors. Real estate investors provide housing for a good portion of the population and limiting their abilities to creatively finance property would be a huge mistake.
Please use your power to regulate shady i...nvestment practices by financial companies which are the real cause of the mortgage meltdown. Deficit spending and the dysfunctional monetary relationship between the US and countries like China must eventually stop if we are ever going to acheive long term prosperity.
Sincerely,
XXXXXXXX
Amir It's the 2/28's, sisa and neg am loans for non savvy borrower's that have caused a lot of the issues. It doesn't surprise me that this type of legislation is going on. Someone needs to take the blame, and I doubt it'll ever be wall street.
