(Part 1 of 3)
Let’s get straight to the heart of it:
Attack #1: Would it bother you if you learned that the Obama administration has specifically targeted investors like you and me for massive tax hikes? These tax hikes apply only to investors and nobody else… Because you are an investor, you have specifically been targeted by this administration for financial penalization and increased government control of your business!
Attack #2: And would it bother you if you learned that the Obama administration has written regulations that make it illegal for you to sell any of your property via seller financing without first passing a government-created test and being registered with the federal government? That’s exactly what’s happening, and all current information suggests these new regulations will take effect on July 1, 2010. Again, because you are a real estate investor, you have specifically been targeted by this administration for financial penalization and increased government control of your business!
Attack #3: And how does it make you feel that the Democrat-controlled U.S. House of Representatives has already passed a bill that will require that every home in America – including your personal residence, and every investment property you own or acquire in the future – will have to pass a government inspection and certification before your home can be sold to any third party?
Obama has stated with perfect clarity that when this “cap and trade” bill passes the U.S. Senate, he will sign it into law. The net effect is that your private property is no longer really yours, because you will not have the authority to do with it as you please, nor will you have the right to sell the property to any willing buyer. Let me repeat: Because you are a real estate investor, you have specifically been targeted by this administration for financial penalization and increased government control of your business!
If you’re getting the impression that this administration is doing all it can to insert itself into YOUR real estate investing business, and to minimize your income through excessive regulation and high taxation, you are 100% correct.
I’ll give you some more detail about these issues in the coming weeks. I’ll also respond to those who have legitimate, good-faith questions and comments about these issues. And for those who support these initiatives due to blind loyalty to the Democratic party, your comments are welcomed too. Nothing illustrates insanity like the actions of the insane.
Watch this blog over the coming days for some very specific details about these attacks on real estate investors by the Obama administration. And of course, your thoughts and comments are welcomed here in the space below…
Yes, this concerns me however I want to know so I can respond to the politicians that are doing this. I want this administration to be successful as then, we as a country are successful. Please give me more specific bill numbers so I can do something.
I appreciate valued information however I do hope this is done with a neutral position and not in a political way. Are you Republican and do you want to approach this in a way that we can get this changed or is this an attack on the administration for political gain?
1st – the word is democratic party , not democrat party. Your wording reveals your bias
Some landlords are indeed liberal and believe the laws need to be more about tenant protection, safety, and fair trade, than just shoving every dollar we can in our own pockets, with no regard for the good of the nation as a whole.
Just as i have no problem with my food being inspected by government inspectors for safety I have no problem with inspections to make sure property i bur or sell is safe. I do not feel attacked by this.
I have done well by America, as has anyone who can afford to invest in real estate. it behooves those of us who have done the best by America to put back into her for everyone’s good.
Why are all of these new proposed regulations even being considered? Because large numbers of Real Estate Investors (Yes! That means us!) abused the rules designed to protect others. They scammed the system and helped get us in the real estate mess we find ourselves in. What is wrong with having to do the right thing?
It occurs to me that the only ones really complaining are those that can no longer pull their real estate investment scams in relative anonymity.
I am surprised that you don’t see that we investors have used the previous lack of regulation to our benefit. Our government does “over react” but we may have caused it.
Perhaps if some contols and punishment were used before we wouldn’t be in the situation today. It would be nice if the free markey worked but it doesn’t with human beings. We need more controls to protect investemnts and insure a safe market.
The protection should be against fraud, against misrepresentation. Those who misrepresent should be held accountable. The Government should move out of our business, and not more into it. The Government should not be involved in making me meet their own standard. It is a basic freedom issue, and this is part of the push against the freedom of Americans. Telling us what to drive, what to eat, what we can sell, etc. It has already gone way too far in controlling in our lives.
Let me just say that I am not an investor except for the home that I bought to live in. This is all part of the spread the wealth program. If you can’t see that we are headed towards socialism, you are blind. What the have nots don’t understand is that it doesn’t work. My 12 year old son told me that a teacher did an experiment in school. He gave everyone the same grade of the avg. test scores. Some kids scored 90% and some scored 70%. Everyone was given a grade of 80%. The next test he did the same thing. This time the kids that scored 90% on the previous test realized they couldn’t score 90% so they didn’t bother to study hard and only scored 80%. The kids who previously scored 70% realized they were automatically given an extra 10 points so they didn’t bother to study either and only scored 60%. Now the avg. score was 70%. The net result is less production. Less production only hurts the economy. Either this administration is full of a bunch of idiots or they are working intently to destroy the American Dream of freedom and prosperity to enslave us all.
The radical left and its followers never cease to amaze me….like sheep they follow, providing reasons why we deserve to be controlled by the government…why more and more taxes are fair. Is it really time to redistribute the wealth? Why don’t you post your address and we send some people over to redistribute your wealth? It only makes sense when you are on the receiving side. Vote the Socialists, Progressives and Liberals out in Nov. send money to the campaigns of those that fight for Americans and our country to keep it ours…
Here we go again. How about some specifics. Don’t just tell us stuff without providing the proof. What bill is it in? Has it passed? Is it just in the talking stages? Quit trying to stir up trouble. Something needs to be done with all the crooks on wall street that came up with the things that got us into this mess in the first place. The government needs to have someone watching these thiefs. What’s wrong with having to have your property inspected before you sell it? Are you trying to hide something? Let work together and get things fixed not constantly try to out do and DESTROY an Conquer each other because we don’t agree.
The cost of doing business for an investor will sky-rocket. It will also add an additional burden and cost for homeowners looking to sell their homes. These costs could and most likely would end up being passed on to the buyer in the long run. Which will end up slowing down the real estate market even more.
Now a new government agency has to be created and a boat load of incompetent government workers have to be hired who will dictate what the ground rules will be for this certification. Which they won’t know how to do or follow themselves, that’s why they are government workers to begin with. They couldn’t make it on their own out in the real world.
And for Matthew, those food inspectors are doing such a great job. I don’t understand how all that USDA inspected bad food is getting out to the stores that are always having to getted pulled from the store shelves. I look forward to paying another incompetent government workers salary.
When an FHA loan is going to be used in a residential purchase, an FHA appraisal has to be done. For an FHA loan to fund the home has to pass FHA guidelines. I think this is enough. If the purchase is going to be with a conventional loan or any other type of lending, then it is up to the buyer to get a home inspection. And I understand that many home buyers, especially first time home buyers, don’t know these things. But if a Realtor is involved, it is the fiduciary obligation for that Realtor to make that that recommendation to a buyer to get that home inspection. And for an investor, it is in the best interest and to avoid a potential lawsuit, to have a buyer get a home inspection and maybe offer a 1 year home warranty to sweeten the purchase. And if it means paying $550 out of my pocket to close a deal, then no problem. I’ve already figured in those numbers in the property P&L margins. But if we let some government agency come in and dictate, who knows what it will cost us. $1,200 $1,500 $2,000 or more and for what? So they can sit on their thumbs all day and complain that they have to actually do some work and maybe use their brain.
Another great economy killer by the great Obama. Anyone else have any ideas on how to kill our economy PLEASE send them to our dictator so he can increase peoples dependence on govt. Oh and if you don’t agree with me your probably a racist.
I didn’t sign up for an amateur teabagger mailing list. First, none of the foam-at-the-mouth statements you made are backed up with any facts. Second, in case you didn’t even read what was in your newsletter, we happen to be in a recession caused by unscrupulous real estate deals. Perhaps you were one of the ones that profited from it, but I would welcome government intervention so that we don’t end up in this Bush-created mess again.
Politics aside, the issues brought up in the 3 points of the posting are legitimate concerns of the overwhelming majority of investors. Increased government regulation and higher taxes only decrease investment and will further extend the problems of the real estate market as well as the economy as a whole.
When I signed up for this email I wanted true INFORMATION not a scandal sheet. Sure use a trigger line in the email heading but don’t just be another squawking head posting skewed words to try to create a froth.
So for the future back up what you are saying with the actual links to bills, articles, and true neutral information about an issue everyone in the community that you have created here could research and form their own opinions on. Then they might be able to articulate this information to those they know and create their own voice to those that might help bring about change.
We need information delivered in a neutral tone so people can discuss the consequences and not polarize against each other based on some idea of American/Unamerican, Socialist/Teaparty or any other segmentation.
Lets find what we agree on, create a united front based on that to present to those who create the laws within our system of government. People are still needing to be elected again and they need to take into consideration all who can vote and sway elections.
As investors we have many similar wants, but mostly its an even playing field where all perform within the rules and guidelines. Lets see what these bills truly state, think about how they might effect us, and offer the changes that can make it a fair system for all. All includes the non investor who might be buying from any one of us to make sure they are dealt with in a way that does not disadvantage them or lead towards another meltdown like we have experienced.
Keep in mind that this first article is purely introductory in nature. It is the first of a series of three (3) articles that gives precise background on each of the three points.
It is NOT meant to be a political statement. We feel it’s important to inform investors of the effects and impact of government laws and regulations and how it may affect you (without the “sugar coating” found elsewhere).
Thanks for your understanding, comments and contributions!
Although I am very interested in really educating myself on the issues brought up in the original article, the writer and his supporters lose a ton of credibility (and support) by trying to pretend that there was no political motivation in the tone and wording of that article. If you are against Obama and his administration, that is fine, but I would have more respect for you if you didn’t try to shy away from that fact by pretending that this was a non-politically motivated article.
Everyone on both sides (Democrat, Republican, whatever…) should do us all a favor and re-read Carl B.’s comments a few posts above two or three times, take a deep breath, and then calm the f___ down before responding. Then, we can all discuss that facts.
I preface my comments by saying that I tend subscribe to the basic philosophy and principles of the right side of the aisle. That said, I need to know more about the “tax hikes” that will specifically apply to real estate investors. It is important to note that any expense that is related to a real estate investment will ultimately have to be paid by the tenant/s in the form of rent. If the financial return expected from my investments significantly erodes due to additional taxes that I become obligated to pay, I will pass that additional expense on to the tenant.
Regarding point #2, here again I would need to know what the “test” is all about before making a pro or con decision. Having to register with the federal government does not bother me in the least.
Regarding point #3, there is a part of me that welcomes some sort of required certification regarding a property being sold. Knowing how our government works however, there will probably be a fee that has to be paid for the inspection and certification. There may also be a need to hire a great number of government employees to perform the inspections/certifications or the program may cause the property owner to hire independant inspectors to inspect and certify the property. In either case, it would represent another way for the government to reach deeper into my pocket … something that I am not fond of. Conclusion: I need to know a whole lot more about all 3 concerns as should everyone else before passing any kind of judgement.
Get over it all you haters, Obama rules. I’m teasing but you should of been sending emails like this when Bush lied and started a war & had a lot of innocent folks killed and still being killed, may blood be upon his hands. Now Obama has to clean up all his mess because he was the dumbest president America has ever known but dumb like a fox, just plan evil.
I too, lean toward the right of center. Point #1, I presume you’re referring to Obama’s proposed hike in capital gains taxes… I’m sure there are many other taxes coming up…not just my prejudice, but you can see it in many specific proposals before Congress … if a small amount of increased taxes are needed to balance the budget, than so be it, but this economy cant take much more new expenses shoved at us…. I would hope we could begin substantial spending cuts…I think we all could agree that government waste is everywhere. Point #2, To inhibit seller financing is going to have serious unintended consequences… it will hurt all parties…the original seller who has no other way to sell, because of his unique circimstances, the investor trying to put the financing together, and the end borrower, who would benefit from having built in financing available…I’m really not sure who the goverment is trying to protect with this one. Point #3, For anyone who has bought or sold a home recently, you know that there are already serious & expensive home inspections already a built in normal part of 99.9% of all transactions…this has been a good evolution in consumeer protection over the past 2 decades…but another layer of government bureacracy to approve & certify your home before it sells…I beleive it’s an unnecessary intrusion… actually, I believe this may INITIALLY be included in the cap & trade bill as a voluntary inspection, to beef up insulation, etc…but it will probably become mandatory.
…. As to a couple of comments above about the source of the housing debacle & the horrible ripple effect, there are no innocent polital parties… starting with the Carter years, when pressure was put on lenders (Fannie & Freddie) to come up with creative mortgage products for lower income folks, then that effort got boosted during the Clinton years, with help from Barney Frank & Cristopher Dodd (the very folks with massive controls over our finances today), then you’ve got the Wall Street boys reselling the crappy mortgages as solid investments (while shorting it themselves!)…leading to a global meltdown… where was the SEC while that was going on?! & that was during the Bush years…Big Business & Big Govt. too cozy…Both parties.
Don’t want to go all dooms day about the plans to attack investors, all I have to say is we will be creative, and trust me if all this comes down, we will find loop holes. Stay positive, and find the next loop hole’s!
I’ve been an investor since 1988, and I would love to enlighten anyone who sees promise coming out of these actions, to narrate on how real estate investment has been undermined in those intervening 22 years. I’m not talking about how the crooks and con artists have been squelched; I’m talking about how the average honest/ethical investor has been quite derailed due to regulation that accomplishes nothing, tax law changes, repeated marginalizing of any form of banking that doesn’t originate with the largest Wall Street institutions.
Case in point – three states have made it virtually impossible to owner finance property. One is trying to criminalize it! That’s where his point #2 is going. If that’s not an erosion of your property rights, I don’t know what is. Let’s be clear, we live in a capitalistic, free market economy…the greatest free market in the world, problems and all. Part of the definition of capitalism is the right to own property and the means of production and garner the benefits from it. Each time there’s a move – a regulation imposed, a legality assigned, it restricts, not adds to your property rights.
I’ve invested and developed for over 23 years. Yes, there are bad apples in my industry as there are in other industry, unethical mechanics and doctors who over prescribed meds without seeking a solution. I’m not opposed to regulatory protection for the consumer against unethical practices by unscrupulous investors, but I challenge anyone to show me how raising my taxes on my real estate investment or any others’ investment, protects the consumer. They also want to regulate seller financing, a tool that has enabled many for years to sell their properties and enable buyers to buy a home without the high fees lenders charge. But i have no interest in government regulating what a bank charges, I’ll just exercise my right to shop for the best loan. Free Enterprise. I do not wish for bigger government to regulate my business anymore than i wish for them to regulate yours even if its not in the real estate arena. I hate to see small business become unprofitable and even shut down because of increased taxes and further government regulation.