House Bill 1787 = Death to our Industry?

Question

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 questionâ€¦ 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 sellersâ€¦ 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

Joshua D. · Answer

Guys, lets try and keep the discussion to one thread.

Please continue discussion of this subject at: The DEATH of creative RE investing!? House Bill 1787

Thanks. Thread Closed.

Michael Rossi · Answer

That's why I like The Chosen One! He has stopped the policy of slowly moving us to socialism and has decided to go all the way in a very short period of time. I'm hoping that this will so shock the American people once the economy collapses that socialism will be dead for a long, long time!

Mike

Jim Wineinger · Answer

unfortunatley, socialism has survived several collapses in Europe and will probably survive this one.

My hope is with yours, but in reality...............?

Michael Rossi · Answer

It's just one more socialist policy in the overall takeover of our country by socialists. It really is that simple. The socialists want to control every facet of your life, because they're smarter than the average dummy peasant (you and me). This bill WILL make doing business more difficult and expensive if you're in the business of doing owner financing. The provision about determining that the borrower can pay will do nothing to curtail legitimate sellers (other than add a little more paperwork), who offer owner financing, because they were already ensuring that the borrower could make the payments. Those that were following some of the ridiculous "guru" programs will be in trouble, as their "niche" will have been lost.

As I've said many times before, when the bubble burst, so did the fantasy of all this "CREATIVE" guru nonsense crap. It's time to get back to business in a more traditional (and time tested way). That was always the path to success and it still is!

Mike

As I've said many times before, when the bubble burst, so did the fantasy of all this "CREATIVE" guru nonsense crap. It's time to get back to business in a more traditional (and time tested way). That was always the path to success and it still is!

Mike

Jim Wineinger · Answer

Although I do agree with your statement and sentiments, the reference that I am making to this administration is that they are turning up the heat too fast, in my opinion. When boiling a frog he will stay in the pot if you slowly turn up the heat. But will jump out if the heat is turned up too much too soon.

The socialists have been turning up the heat slowly for years without our complaining. But this recent ratcheting up of the heat has gotten a lot of peoples attention, and will backfire upon this administration.

Being creative is what made our society survive as long as it has, but not in the GURU sense as you so aptly put it. This bill could work to our advantage in getting rid of one of the scourges of our society as we get back to the more traitional creative ways that made us strong.

Jim Wineinger · Answer

Tony, I am in agreement with your assessment of this bill. It is the same with most all bills, it will have some unintended consequences, but will not stop those who do things correctly.

There is one hope that I see that will deal a "death blow" to those who would legislate away our freedoms. And that is to challange, as a last resort, the bill in court and have it deemed unconstitutional because of its restrictions upon the freedoms that the country is founded upon.

There are some challanges already to some of the "takeover" policies of the administration that may start the love affair crumbling when the details are revealed. I can only hope there are more to come.

But no one should allow this to stop them from doing what is legal to persue happiness and your freedoms of our capitalistic society.

House Bill 1787 = Death to our Industry?

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