Go Get A Free House

House Bill 1787 = Death to Investors?

Below is the full text of a message being circulated by concerned real estate investors nationwide. It seems to originate from Vena Jones-Cox.

I have seen several highly respected speakers and trainers like Vena post concerns on the web regarding House Bill 1787, rallying everyone to stop this bill, reporting that if it passes the US Senate then it's Armageddon for creative real estate investors. The Full bill is here http://www.govtrack.us/congress/billtext.xpd?bill=h111-1728

Pay Attention to Section 101(3)(e).

If you're terrified of this, let me ask you a question… have you read the House Bill? Sure it is a bunch of legalize, mumbo jumbo but it is not too complicated.

I have had students encourage me to get the word out to all my members, to write their Senator, hoping I can help stop the bill. Like I can stop a Bill in the Senate.....

Well first, I agree it's a bad bill. I have no love for bureaucratic, governmental intrusions upon my freedom.

But this bill, if it passes through the Senate, does not put me out of business as a real estate entrepreneur.

All it does is require that I use certain paperwork and make certain disclosures around RESPA and Truth-in-Lending, which I suggest you do anyways. Then it requires me to make sure my buyer can actually afford the monthly payments. Well there is an interesting idea.

It may also require, and may depend on your state, that you to get licensed as a mortgage broker if you are in the business of making mortgages in your real estate investing.

My main investing strategy today is targeting free and clear properties, getting long term 0% financing from sellers… then selling on terms or just renting out as keepers. It is a great system, and we close 2 -3 per month, all with 0% financing.

For years I 've been offering interest only financing to my buyers with a 3 to 7 year balloon. Worst case is I will be collecting more income making it a policy to offer 30 year amortized loans with no balloon instead. Not too big of deal for me.

I checked with my attorney who closes my installment land contracts and we are on the same page.

Read the bill. Get legal advice if needed. Take action to stop the bill if you like. And stick with me as I'll be happy to answer your questions and create solutions as needed.

But don't you dare let all this hoopla stop you from buying a bunch of houses right now during one of the best times in history to amass a huge fortune.

The emails are quite long... so i posted them on my site for you to read.. www.TonySeverino.com/vena

Don't get worked up.. Sure, you can send mail, and allow your voice to be heard, but with socialists in charge,,, Well America is getting what is asked for.

Tony Severino

How To Think and Act Differently

Last week I was in Vegas. It is an amazing place. I was staying at the Wynn hotel. That hotel is so huge, so massive, it has its own Ferrari dealership on the fourth floor. Someone told me we were in a recession.. I couldn't tell that in vegas, two massive casinos under construction, and people everywhere. Yep foreclosures are high, but the money is flowing like a river.

I was there as a guest of a man named Richard Roop. While there, I never paid for one meal, or one drink, Richard picked up the entire tab. I was there as his guest to be a part of something that you will hear more about in the next few weeks, which you will want to be a part of.. that I can promise you.

While I was at the Wynn, I was surrounded by surrounded by some of the most creative minds in the Real Estate business. Imagine playing poker with Than Merrill from Flip This House as your partner. Yes you can play poker as a team....

The point is this... as some of you know I am writing two books.

My editor and I are going to kill each other soon...!!!

The seventh Chapter is all about How To Act and Think Differently. I would like you thoughts and comments on the intro......You can read it HERE.

Now Go Get A FREE House

Tony Severino
219-923-3000
www.TonySeverino.com

Disadvantages Of Using A Land Contract

I have been getting a few questions about buy property with land contracts. I do not do this in my business, however I can see why it appeals to some

Most of the disadvantages of land contracts for buyers of property stem from the fact that the vendee (buyer) does not receive the deed to the property at closing. The vendee obtains equitable title, but the vendor (seller) retains legal title. This situation usually exists until the land contract is paid in full. Mortgage loan lenders are highly regulated, mostly to protect buyers/mortgagors. Land contract vendors are not.

A individual seller can be more demanding than a lender. The vendor sometimes feels she has the right to inspect your property. No seller has this right, unless you specifically have granted it in the land contract. A mortgage loan company will never do this.

Some installment loan contracts give the seller an option of making the entire balance due and payable if only ONE payment is missed or is late. Be certain that your contract doesn’t have a clause like this. You wouldn’t want to lose your home simply because you forget and are late making a payment. Repossession procedures are much more strictly regulated for mortgage loans from a commercial lender than for an individual land contract vendor.

***I stress that I am not a lawyer, am not pretending to give legal advice, but am just expressing my opinions.***

The vendor might not wish to allow prepayment. While prepayment penalties are rarely found in mortgage loans anymore, a seller may wish to prevent you from paying off the contract because s/he wants to keep the income stream. Be sure that your land contract does not contain a clause that prevents you from paying the balance in full before the contract expires - you may want to sell, or refinance your contract sale with a loan from a lender.

The biggest reason I stay away from them in our business is that I am not the owner. I enjoy owning.

Well theres my thoughts....Now Go Get A FREE House!!

Tony Severino

Lease Options vs Subject To

Lease Options and Subject To's (aka "Getting the Deed") are two very popular ways to purchase real estate with little or no money down. Acquiring investment real estate can be handled with many different approaches, but these two techniques can be implemented with little or no money down in most incidences.

A lease option is a technique which involves gaining 'control' of a property, but not owning it. It is the right to possess a property now and purchase that property at some future date with terms you define when you buy it.

A "Subject To" is getting the deed to a property without getting a mortgage for the home. Instead, the seller signs over the deed to his home 'subject to' the existing mortgage. The buyer in this case makes the mortgage payments on the old loan, but does not need to get a new mortgage (or ask for approval through an assumption of existing mortgages) to acquire this home.

Click Here to Read More

Tony Severino
219-933-0591

Bank Demo's Brand New Houses It Foreclosed Om

As you know banks are now aquiring properties left and right.

In this video clip, a bank decides that demoing the houses is its best move.

Something to keep in mind here, the end result be it a short sale, or a REO sale, the banks best interest is always what makes the decision. The lender does not care what you or I think. (like I needed to tell you that.)

Click Here to see the video

Dead Woman Gets Federal Stimulus Check

When I stumbled across this article today, it kinda got under my skin.

They sent out over a hundred thousand checks to dead people? What else is gonna happen?

Click Here To See The Article.

Folks I think that this administration is going to really mess up our economy worse than it is now. Here are my predictions... and why.

Taxes will be raised in 2010. Some people forget that taxes are much deeper than simple income taxes. Sales taxes upon cigarettes, fuel tax, etc. However, There is no way that we can spend money without raising taxes across the board. When the promise was made not to raise taxes for folks under 200K was a lie. The taxes were raised already. On February 9th, the sales tax on Cigarettes went up over 258%. The largest percentage of smokers in this country earn less than 200K. (For the record I do not smoke)
Capital gains taxes will go up. That affects every investor I know who does not own property in their IRA. Right now Capital Gains tax is at 15% and in 2010 it is set to go to 20%. So if you sell a house and make 60,000 in profit, you will pay 12 grand in simple taxes. And I expect that to go up.
Small Business taxes will go up. Most investors I know operate as small business's. We hire people. If my taxes go up, small business will protect the bottom line 1st. In order to protect the revenue, someone will not be hired.

Please, someone prove me wrong!!!!

Now Go Get A Free House.

Tony Severino
219-923-3000
www.TonySeverino.com