OfflineThis is an email I received today from Peter Conti.
_______________________________________________
Urgent - Senate Bill to Crush Our Business
Must Read
Industry needs your help!
Dear Investor,
Please read the information below regarding an urgent Bill that has been passed by the House and is being considered in the Senate.
You must take action NOW as this will inpact all of us!
Dear Fellow Speaker;
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.
"THE ARCHITECT OF YOUR DESTINY IS YOURSELF"
"SUCCESS WALKS HAND IN HAND WITH FAILURE"
Sent emails to both of my senators. Unfortunately, I highly doubt it will help since I live in MA. Kennedy and Kerry are two of the biggest farces in the Senate. They always vote on party lines and since this is a Dem bill it's safe to say they are both YES votes. The fact that the bill was co-written by Barney Frank is no surprise to me since he is a huge reason this crisis started in the first place. That being said, I urge everyone to send emails and phone calls even if you think your senators will never listen, like I do in MA. If we don't at least TRY to fight this ridiculous bill, then we really can't coplain if it passes. Good luck to all.
Stephen
I feel bad for you Stephen! Kennedy and Kerry both! WOW! You know I smell Barney Frank all over this HR 1728.
We should always step up and let our voices be heard by our elected officials...even if it is Kennedy and Kerry. LOL!
Stephen
"THE ARCHITECT OF YOUR DESTINY IS YOURSELF"
"SUCCESS WALKS HAND IN HAND WITH FAILURE"
I received a standard response to the form letter I sent to my Senators, adapted to suit me, from BostonDolfan post #16 see below: -
Can't say that I feel as though I accomplished anything though. A more detailed response might come through too late!
'Thank you for your e-mail. Each and every piece of correspondence I receive is important because it allows me to better understand the New Yorkers I serve in the United States Senate.
As you can imagine, my office receives a great number of messages every day regarding a variety of issues – this is particularly true of e-mails. It makes me proud to know that my constituents take an active role in our government by corresponding with me, and I look forward to responding to your concerns in greater detail. In the meantime, I just wanted to let you know that your e-mail has been received, and to ask for your patience until I send you a more detailed response.
Again, thank you for writing. Please feel free to visit my website http://schumer.senate.gov to follow my work in the Senate and to learn more about the services my office can provide to you.
Warmest regards"
Angela
That is probably the first letter. Within the week you will probably receive another letter and he/she will be explaining to you why they support that bill or they could be telling you why they are against it. That form letter will always come first. If you get the second letter I would like to see what their response is. Thanks!
Sissy
Can't say that I feel as though I accomplished anything though. A more detailed response might come through too late!
'Thank you for your e-mail. Each and every piece of correspondence I receive is important because it allows me to better understand the New Yorkers I serve in the United States Senate.
As you can imagine, my office receives a great number of messages every day regarding a variety of issues – this is particularly true of e-mails. It makes me proud to know that my constituents take an active role in our government by corresponding with me, and I look forward to responding to your concerns in greater detail. In the meantime, I just wanted to let you know that your e-mail has been received, and to ask for your patience until I send you a more detailed response.
Again, thank you for writing. Please feel free to visit my website http://schumer.senate.gov to follow my work in the Senate and to learn more about the services my office can provide to you.
Warmest regards"
"THE ARCHITECT OF YOUR DESTINY IS YOURSELF"
"SUCCESS WALKS HAND IN HAND WITH FAILURE"
...from my Democratic reps. !
I am not sure that the letter to my other rep. actually went through.
If in doubt ... I am going to send it again!
Better I send it twice than not send it at all I guess!
Angela
I had the information emailed to me too today and I was wondering if you have the OK to post the # on this site yet?
Angela
WHAT ARE THE CHANCES OF US GETTING OUR OWN DG CONFERENCE CALL THING GOING?
A new 'training' conference call is overdue, can you get one up and running with info on this Bill and suggestions on what we can do in the next couple of days?
Just a thought, thinking out loud!
There are so many new people joining us everyday on this site. Inspired to buy the newest book, wanting to make a change in their lives and suddenly reading that it could all go away before they even get the chance to get started!
I think that there are many new people on this site right now who could really make a difference if they all petitioned the powers that be, and get their friends and family involved too. This is a really valuable resource of support! Who knows that better than you?
Angela
I have written my Senators to vote no to this bill. It only takes a few moments to send them an email.
No I still don't have the OK to post the number yet. I really don't think this guy is going to try to be selling anything this time. It is only a quick 30 minute call concerning this House Bill and what it means to our business. People can call in also and ask questions. Just waiting on the OK. The call is tomorrow so there is not much time.
Angela
"THE ARCHITECT OF YOUR DESTINY IS YOURSELF"
"SUCCESS WALKS HAND IN HAND WITH FAILURE"
Grady here weighing in and and saying a big "thanks" to all of you; always inspires me to see sharp, creative minds coalescing on a subject or thread.
I'm on board with letters to the senators!!
crosstown looker
A new 'training' conference call is overdue, can you get one up and running with info on this Bill and suggestions on what we can do in the next couple of days?
Just a thought, thinking out loud!
There are so many new people joining us everyday on this site. Inspired to buy the newest book, wanting to make a change in their lives and suddenly reading that it could all go away before they even get the chance to get started!
I think that there are many new people on this site right now who could really make a difference if they all petitioned the powers that be, and get their friends and family involved too. This is a really valuable resource of support! Who knows that better than you?
Angela
Hey Everyone,
First, I have copied the letters from BostonDolfan (Post #16) and I plan on using them to draft up a letter to send to both of my Senators, which both are Republicans by the way.
I agree with Angela's quote above. I for one know how hopeless it looks to be so inspired to begin actually making a life for myself then I find out that it could all go away at any moment. I heard about HR 1728 from another source by the way. Let me just say, that coming here and seeing all of you wanting to do something about this gives hope back to what looks like a hopeless situation. If we can have a conference somehow, we can all talk and discuss this. Maybe those of you who are experienced investors will be able to help those of us who are new to the world of real estate investing understand what's going on and what we can do to help.
Having a conference would be great! I'm kind of looking froward to saying hi to everyone anyway
I'll keep an eye out for the number of the conference call.
Thanks,
SuperMoneyMan
I'll be on the conference call this week. I hope either me or someone can bring this up and maybe hear what Dean thinks about this bill.
Stephen
Ah man this is an OUTRAGE, why would they wanna take our creative financing away? It seems that every bill that congress is passing is screwing the American people even more. Guys do whatever it takes to STOP this bill from passing. I just got done emailing my senator to not pass this bill. So hopefully you guys do the same. This should be front page news on DeanGraziosi.com, why is it hidden in the dark so no one else knows about it.
"Open minds backed by knowledge, wisdom, persistence, and determination equals unstoppable excellence"
- wrecklessKane
Guys what has happend with this bill?
Bill
We all need to contact all the Congressman & Senator's and tell them to KILL the Bill.
Here is a website to get allthe Email addresses and Fax #
www.conservativeusa.org
whurndon
Great information and support. Our emails have been sent. There is strength in numbers, so the more people we have to contact their Senators who oppose HR 1728, the better. We are also contacting family members to join in. For the newcomers reading this, which we are as well, Dean tells us there are no road blocks, just bumps in the road, so fasten your seat belt and enjoy the ride. We will succeed.
Ya Know, I thought I was Screaming in an empty auditorium ???? I'm glad some else picked up on this too ... Everyone Ignores this kind of thing until it's to late .....An we're Stuck with it EVERYONE NEEDS TO GET ON THE BAND WAGON HERE AND START WRITING
THESE GUYS AREN'T KIDDING WAKE UP PEOPLE ! ! ! ! FIND THE ADDRESSES AND START WRITING TO THESE, YOUR
" REPRESENTATIVES "
THANKS "SISTREAT"
RAY
oops
Hi,
I am very new for REI. I just started the Success Academy with fear and hope. Since English is my second language, everything is overwelmed but I am trying to relax and enjoying to learn and keep telling myself to become successfull. But now I feel that I made a big mistake to get involve with this. Could anyone explain more detail or new information if you get. Thank you.
Yumi
You can never make a mistake by trying to improve your way of life. If you are trying to improve your way of life, this is the right place to learn how to do it. The DG family is very helpful in finding answers and motivating you to take the next step. For many, real estate is somewhat a new language so don't let language be a barrier, we are all here to help one another. I would continue to explore the great information on this web site. If you have not picked up Dean's books, I would highly recommend you to get them, read them and follow them. Keep asking questions and good luck.
Yea Advocate is Right it is not a mistake at all
You want to make a positive difference in your life and that can never be a mistake
Just stay in faith and stay focus on your goal...
God Bless
I really Hope Dean makes that conference call soon...
We Need to come together for this
I agree with Advocate - "You can never make a mistake by trying to improve your way of life."
New ventures can feel overwhelming at times, learning new terms, meeting new contacts and fighting for what you believe in. In the end it is worth it.
This is the Library of Congress's weblink to the Bill
http://thomas.loc.gov/cgi-bin/bdquery/z?d111:h1728:
This is not good for our line of work! Just another example of our government trying to take over more control. Pretty soon you will all be forced to salute to our new dictator!
Where is Dean? Why hasn't he responded to this? Hopefully he is "formulating a plan" LOL
God Bless
Hello Everyone!
Just thought I would chime in for my two bits...
I am a recently new member of DG community, and have really been inspired and motivated to positive action by the synergy of this website, and feel so blessed to have found a group of people not motivated by greed, or given to selfish "look at me" rants, but rather constructive,helpful insights that reinforce the idea that we have all either been there or are about to buck up and get past it. Thanks every one for being here, and no matter how it turns out we will prevail to support one another, not by allowing our activities to be dictated by fear. In the truely creative mindset there is always a solution...we may just have to move past the edge of the box again, its moving!
I had read on another website (Google search Mid-America Association of Real Estate Investors) about this bill just yesterday. Talk about slow on the uptake, well now I'm informed and called the PLAYBACK of CONFERENCE phone number referenced in the article on sub-page HR 1728. If I have to have a license then so be it, but all the more reason to have an agent or broker on your team!
In any case Cash Is King until "the chip" ,but no chip for me! Just keep plugging away until we get to the bridge were the Fat Lady is catching her breath. It ain't over till she finishes the song!
we better stay on top of it or next thing you know BAM its law!!!!!!!!! we will then be so sorry... i looked at the bill from the link sissy put in her original post and it shows it hasn't had any activity since may 7 2009. but you never know when it may make its way back up to the top of the bills and then it will be too late for us to do anything......
think how this would shut us down...
? would this affect doing assignments ??