Changes in RE Laws
Before my team and I formed an investment club in Tulsa, I did not do a good job of keeping up with changes in the laws that affect real estate. Now, we have a monthly update of proposed bills, law changes, etc. These are some of the ones that we have discussed this month and could potentially have a major impact on real estate investors.
1. Lead Based Paint
Effective this year any property that was built in 1978 or before must be worked on by a contractor with a lead based paint license. If you or your contractor want to paint, touch the windows, touch the trim, etc. you will have to take the 2 or 3 day course and pay for the license...
2. FHA suspended the 90 day seasoning period. This should be a major positive note for investors. The seasoning rule was so loose and open to interpretation that it was frustrating. Each lender enforced it differently. It will be interesting to see how this goes, but it should cut down on holding costs, repair charges, etc. and be a great bonus for investors.
3. They have proposed two separate bills regarding owner financing. Basically, they are wanting to limit owner financing to owner-occupants and licensed mortgage orginators. Make sure you post your comments on the HUD web site and send e-mails to your state representatives...
Obviously these are not all of the changes going on right now, but these are the major ones on my mind. Feel free to research more and read more details. One web site to check for political updates is [LINK REMOVED]
Also, please let me know if you know of any information regarding these or if you have any experience with any of these in your transactions...