House Bill 1787 = Death to Investors?

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