Any Legal Recourse To Stop Your Government From Bullying?

Question

When I was in high school, I was one of the kids that was bullied everyday. One time I was pushed down the stairs. Kids would tie my shoes while I fell asleep in the bus. Would have spit wads hit my head. When being bullied, I would feel this overwhelming feeling of shame.

I have not felt this feeling in twenty years until 2016. Labor and Industries (LNI) here in Seattle uses bullying tactics. According to my attorney, they have been targeting real estate investors here in Seattle. I get the feeling that the government here believes that real estate investor are like a tumor that needs to be removed.

Ironically, the government department that is supposed protect employees from being bullied is the same department that bullied on a systematic basis. Couple of examples.

An LNI inspector went to a homeowners house (someone that I work with), knocked on the door and pushed his way into the house without asking for permission. Since when can the government barge into your home without any permission or warrant?

While speaking to an LNI inspector, I was shocked he made a comment that it was "suspicious" that we hired mostly African-American employees and subcontractors. Are you kidding me?

I had an LNI inspector say to me, "Either you are the most naive person or a big fat liar." While talking to this inspector, I felt like the bullied kid who was pushed down the stairs and had their shoe laces tied. I feel the spitwads hitting my neck.

In Washington state, it has been a one party state since 1980. I don't agree not consider myself a Democrat, Republican or Libertarian. However, power tends to corrupt. And the Democrats holding power for nearly 40 years has corrupted the system. These abuses of power should never happen.

I have followed cases with the same complaints (many in the Public Records Act cases where LNI refused stubbornly to give up records) but the problem is that LNI is defended by the Attorney Generals office. So the bullying and other abuses of power continue.

If you are a real estate investor in Seattle, there is a huge risk to your business lurking around the corner. And that is being bullied and harassed by LNI. As a matter of fact, it is the main reason why I think it is difficult to scale a construction operation in this state. Here in this state... The more you increase the size of your construction operations, the more it costs per square foot. It is reverse economies of scale and the main reason is being bullied and harassed by LNI.

As a result, this is why I don't try to do more than 10 development deals and 10 BRRRR at a time here in Seattle. I also quit flips because the numbers don't pencil out with a competitive market for deals and skyrocketing construction costs. Instead, I scaled my business into non-recourse lending in the Midwest to investor's self-directed IRAs and self-directed solo 401(k).

Russell Brazil · Answer

I welcome difficult government entities, inspectors, and everything in that general field. I'm in a part of the world (DC) where its likely the worst environment for it in the country. However it just helps my business as I build relationships with such people while my competitors complain. Learn to work the system instead of fighting it.

Jerry W. · Answer

@Ryland Taniguchi, hey bud, we all feel the same thing when some government official exceeds his job duties and abuses his or her power.  There is also the concern that if you complain the problem may get worse.  You may have to make a formal written complaint to address the problem.  The strongest ones right now are racial issues.  You can also make complaints about state employees who violate federal laws to federal officials, but you need to be specific as to what federal law or code is being violated.  Another thing to consider is proof.  To the best of my knowledge there is no law prohibiting the recording of a conversation you have with someone on your own property without the knowledge of the person being recorded.  You should check with your state laws to make certain as these kind of laws vary greatly from state to state.    Another way to be more effective if you have one official who is extremely bad is get everyone to complain about them.  A complaint from one person is not taken nearly as seriously as a complaint from 30 people on the same person for the same things.  Finally there are federal laws that allow you to sue states over the conduct of their employees in certain things, I believe it is either under section 1983 or 1984.  Those actions bypass state immunity laws.  You would need to discuss this with an attorney who specializes in that kind of case, but I have seen several win that surprised me.  You also get your attorney fees if you win as well.

Matt R. · Answer

We used to hassle the bullies at school and they stopped doing it. When I say we it was me and the offensive line. IDK if I follow the post exactly but it sounded like borderline trespass. Perhaps call the cops next time anyone barges into or onto your properties. Just cause they work for the man does not grant them any special rights. Good luck!

Kevin Hubachek · Answer

@Jerry W @Ryland Taniguchi concerning recording conversations, it is not a one party state like TX or AZ.  unless you post a conspicuos sign on your property that it is being monitored or recorded.

I suggest every project put the sign up.  It can deter vandals and make any conversation recorded on that property admissable in court.

I am not a lawyer.  My knowledge from being a P.I. in WA and AZ previously.

Ryland Taniguchi · Answer

I think I have created a very huge unfair advantage in marketing systems to find deals and a huge unfair advantage in getting access to capital below 5%. Even in new construction (versus rehabs), I have a huge cost advantage being my own GC.

But if I have economies of scale, relationships and systems down, I often wonder what chance the newbie investors have in this part of the cycle.

Mark Nolan · Answer

@Ryland Taniguchi

Thank you for that important information. Please send me your information and I will add you to our list of nonrecourse lenders as our solo 401(k) and IRA clients often asking for nonrecourse lenders.

John Thedford · Answer

I would add to @Jerry W.

It MAY be legal to record conversations. Depends on your state. When I lived in TX it was legal to record (without disclosure) if you were party to the conversation. In FL, where I live now, it is not legal to record without disclosure (even for law enforcement). Look at all the talk from politicians about removing layers of government intervention that stifle business. Yours is a perfect case.

Ryland Taniguchi · Answer

In Washington state, it can be considered a criminal offense to record a conversation without someone's permission.

I am the opposite of a victimization type of person. Anything I have put my mind to in my life I have accomplished.

The defining moment of my life was around 15 years old. I was running a marathon that I didn't fully prepare for. Half way through I started to puke. Some inner voice told me to "puke in the bush" and RUN FASTER. I kept dry puking and RAN FASTER. I ended up placing 10th in the race.

As soon as I crossed the finish line, my body collapsed and they had to put me in an ambulance and stick ivy needles in me. LOL That it was stupid is besides the point. I learned that my WILL could take me wherever I wanted to go in life. I never forgot the lesson.

No matter how much I get blungeon by obstacles, no matter how great the odds or how difficult the path, I learned that I have the WILL to succeed. It is how I have WILLED myself through 8 foreclosures and 3 bankruptcies to success in real estate. I cannot be stopped.

So, I would warn the local government not to get in my way. I will own them. And I will own the media as well.

Any Legal Recourse To Stop Your Government From Bullying?

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