Official BiggerPockets Discussion of House Bill (HR) 1728

Official BiggerPockets Discussion of House Bill (HR) 1728

Real Estate Investor · Las Vegas, NV - LAS, NV · Member since 2008 · 168 posts · 11 votes

I just came across this in an newsletter I get. It centers around a law that has already passed the US Congress and is about to be voted on by the senate--- HR1728. It will most likely KILL the owner financing option as an exit strategy. Please contact your Senator to tell them to vote NO to the bill referenced below!!!!

Peter Conti wrote as follows:

I don't know if you've heard about HR 1728, but it's a heinous infringement on private property rights that is likely to shut down the creative selling market. IT HAS ALREADY PASSED THE HOUSE AND IS UNDER CONSIDERATION BY THE SENATE NOW. I have attached an article about it that you should blast to your students ASAP, we need massive action on this immediately to stop it.
 
 
 
 
House Bill 1787-Why it's Death to Your Business and What to Do About it.
 
            The U.S. Senate is considering a bill that would severely limit the way you do business as a creative investor and, more importantly, is an inexcusable infringement of the property rights of all Americans.
 
            HR 1728, which you can view in its entirety here: http://www.govtrack.us/congress/bill.xpd?bill=h111-1728 deals with a plethora of mortgage-related issues, mostly around limited terms and fees on residential loans. But the heinous piece of the legislation is in section 101(3)(e), which defines the affected principals as:
'(E) does not include, with respect to a residential mortgage loan, a person, estate, or trust that provides mortgage financing for the sale of 1 property in any 36-month period, provided that such loan-
(i) is fully amortizing;
(ii) is with respect to a sale for which the seller determines in good faith and documents that the buyer has a reasonable ability to repay the loan;
(iii) has a fixed rate or an adjustable rate that is adjustable after 5 or more years, subject to reasonable annual and lifetime limitations on interest rate increases; and
            (iv) meets any other criteria the Federal banking agencies may prescribe; and
 
            Yeah, I know, confusing. But here's what it says: you are NOT subject to the law as long as you DON'T sell more than 1 property with owner financing every 3 years! Or, to put it another way, you ARE subject to the limitations of the law if you DO sell more than one property every 3 years via a land contract, owner-held mortgage or wrap-around mortgage-and who knows if they'll define lease/options as owner financing, too?
 
            So what does it mean to be "subject to the law"? Well, at the very least, it means that you will have to comply with a long, confusing, and penalty-filled piece of national legislation. Here are the types of transactions that you would be restricted from doing more than once every 36 months:
 
o       Selling YOUR OWN HOME using a land contract or owner-held mortgage so that you can get a quicker sale, higher sale price, or better rate of interest than is available in other investments
 
o       Carrying back owner-held second mortgages on investment properties that you sell
 
o       Doing any kind of installment sale on residential properties including homes, condos, mobile homes, and even raw land that is zoned residential
 
Yes, there will undoubtedly by ways to "get around it"-some have suggested that getting a mortgage broker's license and then learning and following the vast new set of regulations would circumvent the "problem". But bottom line is, this law has to be stopped and it has to be stopped NOW. Here's why:
 
1.                          Congress is trying to regulate the wrong thing. The deals we make are not "loans"-they don't involve the transfer of money, or points or closing costs or adjustable rates or any of the other things that caused the mortgage crisis to begin with. They are INSTALLMENT SALES. We don't give money to the "borrower" and wait for it to be paid back: we give a property to the borrower and wait for it to be paid off. Regulating this will have no effect on the foreclosure crisis
 
2.                          It is a completely unacceptable infringement on private property rights. When I own a piece of property and find a ready, willing, and able purchaser, I should be able to control the sale of that property within the existing laws of my state, which already regulate the interest rate that I am able to charge and some of the terms of the sale. The government does not have the right to tell us that we need special licensing to sell our own properties; nor do they have the right to further regulate the terms under which we can sell or burden small investors with a new set of rules that we can't comply with.
 
Not only will this new law, if passed as written, effectively choke off owner financing as an exit strategy for you, it will also take away housing choice for your buyers. The millions of Americans who've been through foreclosure in the last 3 years can't buy a house in any way OTHER THAN to negotiate owner financing with a seller-and HR 1728 would greatly reduce the number of properties available in this way. Millions of potential home owners who would otherwise be able to re-start the process of paying off a home, and get the tax advantages of ownership, will be reduced to renting until they are able to qualify for bank financing.
 



What to Do Right Now
 

            This bill has already passed the house and is waiting for Senate approval. Please contact your senator via email and snail mail to let him know that this law MUST NOT PASS in its current form. You can get your senator's contact information here: http://www.senate.gov/general/contact_information/senators_cfm.cfm
 
            As always in cases like this, you have an automatic handicap to overcome-the fact that you are a real estate investor and are therefore viewed as part of the problem. So when you write, don't emphasize the nature of your business, just that you and your buyers would be greatly aversely affected by the new law.
 
We need THOUSANDS of these communications to go out in the next few days to have a CHANCE of stopping this in its tracks. So whether you're a new or experienced investor, PLEASE take the time right now to write your elected representative!

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Will BarnardPro Member
Moderator
Developer · Santa Clarita, CA · Member since 2008 · 15k+ posts · 10k+ votes
17y
Originally posted by Tony Severino:
We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty, and the pursuit of Happiness. That to secure these rights, Governments are instituted among Men, ... That whenever any Form of Government becomes destructive of these ends, it is the Right of the People to alter or to abolish it.

But, when a long train of abuses and usurpations, pursuing invariably the same object, evinces a design to reduce them under absolute despotism, it is their right, it is their duty, to throw off such government, and to provide new guards for their future security.

Thomas Jefferson - The Declaration of Independence
As it is our right and our duty to throw out the government currently threatening our rights to pursue happiness, etc. etc., how does one (as a member of the people) go about doing so today? Do we take 10,000 of our people armed to the white house? Do we go unarmed, in which case we all get arrested for unlawful protest (or whatever the legal term is)?

What is the answer so we can all get together and stand up and fight? I am willing and able, but one can not do it alone! Anyone?

See this reply in the discussion

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  • Jeff TumbarelloPro Member
    Real Estate Broker · Fort Myers, FL · Member since 2008 · 1k+ posts · 323 votes
    17y

    All the guru's seem to be in an uproar as to this. They must think it will affect course sales or something

  • Specialist · Jacksonville, FL · Member since 2008 · 140 posts · 14 votes
    17y

    Jeff you say all of the Guru's, wouldn't this be a concern of every investor?

  • Jeff TumbarelloPro Member
    Real Estate Broker · Fort Myers, FL · Member since 2008 · 1k+ posts · 323 votes
    17y

    The only Issue I see is the no ballon clause

    How many people in this market are really doing this type of business?

    So you get licensed and do business as we all should.............

  • Real Estate Investor · ten mile, TN · Member since 2009 · 1k+ posts · 374 votes
    17y

    This administration is 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.

    Yes the guru's should be worried because their "easy money" ways are under attack. But this will have no more affect on the rest of us except for a little more paperwork.

    Do what is right, it is always the best policy. Make sure that your deal is a deal for everyone and you have no worries. Take advantage of someone misery and you have problems.

  • Jeff TumbarelloPro Member
    Real Estate Broker · Fort Myers, FL · Member since 2008 · 1k+ posts · 323 votes
    17y

    I think if this passes all the guru's can talk about twitter and such, LOL

  • Indianapolis, IN · Member since 2008 · 759 posts · 185 votes
    17y

    Jeff, so you do not do any land contracts and/or owner financing?

    Regardless, for a guy that hates gurus, you would think big government control would get under your skin even more......

    ~Harrison

  • Jeff TumbarelloPro Member
    Real Estate Broker · Fort Myers, FL · Member since 2008 · 1k+ posts · 323 votes
    17y

    I think, they will do what they do. I will study it and do what I do. I promise, I can eat a few holes in it.........

    Being upset about Big Gov right now is like kicking a dog for being ugly. It is what 50+ percent of the masses wanted

    Let them learn. In these types of downturns they tend to pass stuff like this, then they repeal it later.

    Buy fix, flip and sell is the current deal methodolgy.

    I am also doing some other things as well. None of which would be exposed to this.

    PS I dont hate anyone.

    PSS. I have seen not many people who did the creative wraparounds that worked well for any involved. Most of the all the person who owes a bank money. This is a net result of all the subject to deals. I did a bunch of those in 2004. The ones I did. I used the SubTo as a funding source for a flip. Not a long term hold

    I sure would not arbitrage with someone elses mortgage long term

  • Manhattan, NY · Member since 2008 · 801 posts · 61 votes
    17y

    I HATE big government control, but Jeff is absolutely correct. This is very much ado about nothing.

    Something like this seems to come along with every Congress and yes the guru-scum are scared to death by it because it upsets the systems they currently sell. Well, just in theory because most of them are crap anyway.

    IF this passes and gets signed into law, then you can figure out how to take advantage of it. For example, the way it is currently written the use of entities might completely eliminate any affect the law would have.

    That is not a legal opinion.

    I'm just saying, there is enough stuff to worry about without yelling the sky is falling every time a Congressman passes gas and it gets written down as proposed legislation.

  • Jeff TumbarelloPro Member
    Real Estate Broker · Fort Myers, FL · Member since 2008 · 1k+ posts · 323 votes
    17y
    Originally posted by Harrison Painter:
    Jeff, so you do not do any land contracts and/or owner financing?

    Regardless, for a guy that hates gurus, you would think big government control would get under your skin even more......

    ~Harrison


    Stuff like this will impede the wannabe's. They probably would not have done any business anyway
  • Real Estate Coach · Highland, IN · Member since 2009 · 151 posts · 77 votes
    17y

    I posted this under the heading HR 1728 = Death to Investors . re posting here

    .
    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

  • Carpenter · Missoula, MT · Member since 2009 · 8 posts · 2 votes
    17y


    Jeff,

    Did you start out as a full fledged real estate investor? I'm assuming, like everyone else, you started out as a wannabe. Why the assumption that a wannabe wouldn't do any business anyway? I'm just starting and I'm betting you didn't appreciate such negative assumptions about "wannabe" investors when you were getting your start.

    I don't have any idea why anyone on this website would not be frustrated (at the very least) with the idea of more government control and red tape.

  • Indianapolis, IN · Member since 2008 · 759 posts · 185 votes
    17y

    Everybody in my circle is concerned.

    Maybe I am still a wannabe, because I wannabe even more successful! :)

  • Manhattan, NY · Member since 2008 · 801 posts · 61 votes
    17y

    If you are going to worry about actions taken by government, things like this...

    http://www.worldnetdaily.com/index.php?fa=PAGE.view&pageId=100679

    have FAR more impact on your freedoms than any change to owner financing rules.

    Just sayin'.

  • Will BarnardPro Member
    Moderator
    Developer · Santa Clarita, CA · Member since 2008 · 15k+ posts · 10k+ votes
    17y
    I think this is a very fair statement and I would agree. We had to START and at that start point, NONE of us were full blown experienced investors who had all the strategies and tricks up our sleeves. I agree with this 100% as well. I am sick and tired of our government intervention attempting to force ALL these socalist rules on us. We needed more freedom to generate business, not more rules and guidelines which could ONLY hinder business.
    Fannie and there BS new appraisal guidelines is just one example of many new things which ONLY hinder a person's ability to make a living. Rather than point the finger at themselves for making stupid loans to anyone with a heartbeat, and some loans to those with no heartbeat, they would rather blame the investors for creating the mess. That is false propoganda at it's worst!
  • Will BarnardPro Member
    Moderator
    Developer · Santa Clarita, CA · Member since 2008 · 15k+ posts · 10k+ votes
    17y

    Taz, while I agree that that would be a hinder on our rights to bear arms and even remove are ability to take a knive to Colorado for a camping trip, it has no bearing on my ability to do business which is far more important to me.

    That said, I agree US citizens should be up in arms about ALL of this crap attempting to be forced upon us.

  • Manhattan, NY · Member since 2008 · 801 posts · 61 votes
    17y

    nationwidepi,

    My point is, the change in the definition of a switchblade is a policy change that is happening right now. That piece of legislation is just that a piece of legislation still to be debated and amended and possibly passed.

    Worrying over that legislation is pointless at this point. But, policy decisions are happening daily, without any input from Congress in many cases, and no one seems all that concerned about it.

    They are too busy trying to fan away the smoke to notice the real actions from the man behind the curtain.

    Anyway, as someone on another board said about this bill, they will do what they do, then I will do what I do and life goes on.

  • Jeff TumbarelloPro Member
    Real Estate Broker · Fort Myers, FL · Member since 2008 · 1k+ posts · 323 votes
    17y
    Originally posted by Patrick DeBuff:



    Jeff,

    Did you start out as a full fledged real estate investor? I'm assuming, like everyone else, you started out as a wannabe. Why the assumption that a wannabe wouldn't do any business anyway? I'm just starting and I'm betting you didn't appreciate such negative assumptions about "wannabe" investors when you were getting your start.

    I don't have any idea why anyone on this website would not be frustrated (at the very least) with the idea of more government control and red tape.



    I was brokering mortgages for investors buyers. I was watching where they bought, I knew who they were selling to. I had the Huds as well.

    I bought 5 houses in one day. Started Flipping. Earned lots of scar tissue in the process as we all do.

    I decided to invest, researched it, did it.

    Did not even know about books and tapes till about deal number 10.
  • Real Estate Investor · Las Vegas, NV - LAS, NV · Member since 2008 · 168 posts · 11 votes
    17y

    My concern is not that I will be unable to run my business. My concern is when government moves to regulate new areas of real estate we lose some of our rights as owners. Rights are not just wholesale taken away effectively, they have to be chipped at and undermined. The first step is the first step.

    I have sold properties on private mortgage before and was planning on doing so again but not as a main business strategy. I know of several retirees that are real estate heavy, and would like to sell developable lots on contract or PM. This income is what they will live off of. My concern is that if you have say 5 lots and want to sell all five and then never do this again, should you have to go through all the regulation etc.?

    I will admit that I have not read the law itself yet as it has little bearing on my business currently. -I DO hate having an exit strategy that is available as a fall back taken away, if this does that then I am not for it in any way and will be vocal about it to the right people.

    I do not like some of the things that some people do with owner financing. In fact I find it reprehensible and unethical at best, but let's not have our rights as property owners taken away piece by piece as a result. I see where the governtment is moving to control so many things and it worries me greatly for my future and that of my daugters generation.

  • Altus, OK · Member since 2008 · 2k+ posts · 690 votes
    17y

    I think the issue isn't really if this isn't a concern or not it's the issue that big brother is sticking his nose in other people's business where it doesn't belong.

    This is a prime example of why Crock Obama and his joke of an administration is turning this country more and more into a socialistic dictatorship and the so called left wing liberal dimwits can kiss my rump if they disagree with me.

  • Real Estate Investor · the villages, FL · Member since 2008 · 5k+ posts · 3k+ votes
    17y

    I can't believe there are so many that think this doesn't affect us all. Especially Jeff.. Here is an example for Jeff. You buy an inexpensive home from the bank In Lehigh . Great, you got a wonderful deal. Now you have a couple choices.
    1. Rent the home
    2. Hope to hell you can find SOMEone that can qualify for new loan.
    3. Sell on owner financing----oops, cross this one out if you did one in past 36 months!! How does this not affect what you're doing?
    I have somewhere around 40-50 homes purchased at foreclosure in TX that I'm renting right now. This would seriously affect the opportunity to sell them, maybe by 50%.
    Jeff, I'm also moving to your area, SPECIFFICALLY to buy low and sell high on owner finance. I'll pay cash, buy from a bank, and resell on owner financing. Everyone wins.
    Yes, this bill would affect me and everyone else. IMO, you'd have fewer buyers, and more properties sitting on the market longer. Simple supply and demand. That means prices would continue to drop. I would switch gears, and buy low and hold for my grandkids to sell one every 3 years.
    I must be one of those gurus or wannabes posted about. I think anyone that doesn't think this will affect all of us needs to take another look. Rich.
    p.s. Jeff, My wife and I will be in your area monday to find a home. Lets' go eat again.

  • Real Estate Investor · the villages, FL · Member since 2008 · 5k+ posts · 3k+ votes
    17y

    Please read this before you decide that this bill doesn't affect you!!!!!!! Rich.

    HR 1728 - What It Says and Why It Will Hurt Consumers and Small Business

    The U.S. Senate will soon be considering a bill that will severely restrict the property rights of millions of Americans and the way you do business going forward.

    What Are We Talking About?

    HR 1728 was recently passed by the House of Representatives with little fanfare and even less press coverage. Not until it was referred to the Senate did it grow legs and start getting the attention of everyone it will affect. The full text of the bill can be read here.

    What Does It Say?

    The proposed legislation focuses upon the predatory lending practices of yesteryear and the resulting subprime debacle, imposing stringent requirements on mortgage brokers, servicers, appraisers, etc. Unfortunately, owner financing gets caught up in the dragnet, and the impact could be devastating. The offending text of the bill is in section 101(3)(e), which defines who is exempt from being a ‘licensed mortgage originator’:

    '(E) does not include, with respect to a residential mortgage loan, a person, estate, or trust that provides mortgage financing for the sale of 1 property in any 36-month period, provided that such loan--
    (i) is fully amortizing;
    (ii) is with respect to a sale for which the seller determines in good faith and documents that the buyer has a reasonable ability to repay the loan;
    (iii) has a fixed rate or an adjustable rate that is adjustable after 5 or more years, subject to reasonable annual and lifetime limitations on interest rate increases; and
    (iv) meets any other criteria the Federal banking agencies may prescribe.

    What Does This Mean?

    As long as you provide owner financing on the sale of your property no more than one time every three years, you will not be in violation of the statute. Any individual who does sell more than one property every three years via owner financing will be in violation unless they are a ‘licensed mortgage originator’. State laws vary, but typically a ‘licensed mortgage originator’ must have a $25,000 to $50,000 surety bond, three years mortgage origination experience, a physical business office in the state in which the property is located, and continuing education requirements. In other words, very few, if any, Mom & Pop sellers will ever jump through the hoops to become a ‘licensed mortgage originator’.

    What Kinds Of Transactions Will Be Covered?

    Selling your own home using a land contract or owner-held mortgage with the intent of getting a faster sale, a higher sales price, or higher rate of interest than is available in other investments will no longer be an option (unless that sale is limited to once every three years). Carrying back second mortgages on investment properties you sell will also be a violation of the law. In fact, any kind of installment sale on residential properties (including houses, condos, mobile homes, and residential land lots more than once every three years will be subject to this legislation.

    The original bill presented to the House didn’t make any exceptions to owner financing. The National Association of Realtors argued to include the exception of one owner financed property every three years. Without addressing owner financing, many in the House contended owner financing would become the ‘loophole’ for predatory lenders to continue their exploitative ways.

    What’s The Problem?

    Owner financed notes are not loans. There is no transfer of money, no points or closing costs, and no mortgage brokers involved. They are not created with the intent of selling them off to government-sponsored entities like Fannie Mae, Freddie Mac, or FHA. They are installment sales. The borrower receives no money that must be repaid, only a property on which periodic (read: installment) payments must be made.

    Just as egregious is the loss of private property rights. The government should have no power to legislate how property owners dispense of their properties. If a property owner is willing to finance the sale of a property to a buyer, whom is the government trying to protect by making the transaction illegal? States already have usury laws and servicing requirements that protect the purchasers.

    If passed by the Senate, this legislation will:

    1. Severely limit the number of property owners who can legally owner finance the sale of their properties.

    2. Make violators out of everyday Americans who, unaware they are breaking the law, are merely trying to sell their properties and/or offering financing to prospective homeowners who cannot obtain conventional financing.

    3. Require obscene amounts of due diligence on the part of note investors to make sure all facets of this legislation have been complied with.

    4. Give prospective homeowners even fewer options to realize the American Dream of homeownership.

    5. Cost the U.S. taxpayers over $400 million dollars to enforce.

    What is NoteWorthy Doing About It?

    We at NoteWorthy are lobbying to exempt owner financing from this legislation. Owner financing did not contribute to the subprime meltdown in any way, shape, or form. The housing catastrophe was caused by lenders making bad loans and sloughing them off immediately to unsuspecting government agencies and Wall Street, leaving them without a chair when the music stopped. Owner financing cannot be considered predatory by the obvious fact that the owner takes on all liability and risk of default by the borrower. Underwriting is done a lot more carefully when the lender is also the long term payee.

    Who’s With Us?

    Most industry associations do not want this bill to become law. In fact, the opponents of this legislation far outnumber those who support it. For a list of interests and their positions, go here. Unfortunately, many consumer groups oppose this bill for completely different reasons than we do: Namely, they don’t think the legislation is restrictive enough.

    What Can I Do?

    Contact your senator via phone, fax, e-mail or snail mail. Implore them to vote NO on the bill as it’s currently written. You can get your senator's contact information here. We have included some sample letters assembled by Vena Cox-Jones that will assist you in knowing what to say and how to say it. Additionally, we at NoteWorthy have written a fourth letter for owner financed note brokers.

    Please keep in mind that our best plan of action is to address how this legislation will hurt ‘the little guy’, i.e. buyers and sellers of properties. Even though we all consider ourselves ‘the little guy’, the government has made it clear that anyone associated with mortgages is ‘the bad guy’, and has little interest in how this bill may affect your business, your family, or your livelihood. Be civil, cordial, and intelligent in your communications with your senators’ offices. Remember you can catch more flies with honey than with vinegar.

    We also need your help in getting the word out. Send this e-mail to anyone you know that has a vested interest in its outcome (hint: that would be almost everyone you know). Additionally, NoteWorthy is in the process of starting a website that will allow you to sign up to receive updates on our progress to defeat this legislation. You will all be notified when the site is up and ready.

    Take action today or suffer the consequences of this legislation tomorrow. ASK YOUR SENATORS TO VOTE NO ON HR 1728!!!

  • Real Estate Investor · North Central Arkansas · Member since 2009 · 509 posts · 178 votes
    17y
    Originally posted by Rich Weese:
    I can't believe there are so many that think this doesn't affect us all. Especially Jeff.. Here is an example for Jeff. You buy an inexpensive home from the bank In Lehigh . Great, you got a wonderful deal. Now you have a couple choices.
    1. Rent the home
    2. Hope to hell you can find SOMEone that can qualify for new loan.
    3. Sell on owner financing----oops, cross this one out if you did one in past 36 months!! How does this not affect what you're doing?
    I have somewhere around 40-50 homes purchased at foreclosure in TX that I'm renting right now. This would seriously affect the opportunity to sell them, maybe by 50%.
    Jeff, I'm also moving to your area, SPECIFFICALLY to buy low and sell high on owner finance. I'll pay cash, buy from a bank, and resell on owner financing. Everyone wins.
    Yes, this bill would affect me and everyone else. IMO, you'd have fewer buyers, and more properties sitting on the market longer. Simple supply and demand. That means prices would continue to drop. I would switch gears, and buy low and hold for my grandkids to sell one every 3 years.
    I must be one of those gurus or wannabes posted about. I think anyone that doesn't think this will affect all of us needs to take another look. Rich.
    p.s. Jeff, My wife and I will be in your area monday to find a home. Lets' go eat again.


    Well said Rich, I could not agree more. I have 2 deals in the works right now that this law would kill. I've heard mention of getting licensed to be a mortgage broker as a way to get around this, personally I don't want to be a mortgage broker, I want to be a Real Estate Investor. Just my opinion.

    Even if this did not affect me and my business I would still oppose it for the simple fact that I do not like big govt. to step in and try and take more control then they already have.

    Jeff

  • Real Estate Investor · North Central Arkansas · Member since 2009 · 509 posts · 178 votes
    17y

    I just sent an email to both of the senators for Oregon. I'm also printing my complaint letters and sending them by mail. It can't hurt our cause for everyone affected or concerned about this issue to do the same. This took me 5-10 minutes. I'm sure anyone concerned can spare the time to do the same thing.

    I think i'll call their offices tomorrow as well. Just my thoughts on the situation.

    Jeff

  • Real Estate Investor · OH · Member since 2008 · 194 posts · 89 votes
    17y

    Tony Severino,

    Your first post in this thread, and I realize you said it was a repost, is an almost exact copy of a blog post from Richard Roop which I found by accident trying to find the comments said by Vena Jones Cox. Without starting the argument about whether we care what these two are saying in the first place, it appears you are using someone else’s comments as your own, which is not a good path for a “real estate coach†to be going down. Here is a link http://richard-roop.blogspot.com/.

    As I said, I found it by blind luck trying to find out more about this bill and was not looking at Richard’s blog other than a google result but it looks a little fishy to me. If you are quoting someone else then fine, but you are certainly not doing this in this case IMHO. As a coach, I was just wondering what “your†opinion was on the subject?

    And no, I don’t have any affiliation with any guru including these two but did find this accidental discovery interesting.

    My apoligies if putting the link to prove my point is a no-no. Please remove it Joshua if necessary. Good investing all.

    Mike C

  • Real Estate Investor · Las Vegas, NV · Member since 2008 · 1k+ posts · 447 votes
    17y

    Original post mentions HR 1728 but topic calls it HR 1787, which is it?

    :cool:

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