All Forum Posts by: Dave Hagen

Reading this thread has definitely shown me the diversity of opinions on BP.
Where to begin...

1) This thread is not political because someone wanted to push an agenda. It contains politics because politicians believe there is no part of your life that they can't regulate. I wish someone would point out somewhere in my life that there don't exist some laws or regulations that affect it. It is said that every single person violates several laws and regulations every single day.

2) Anyone, and I repeat ANYONE, that believes tax cuts cost the government HAS BEEN LIED TO. Every single time, revenue to the government has increased. The reason debt goes up is because every single politician knows this and spends more money. Increased taxes oppresses an economy and causes people to look for ways to avoid the tax. It doesn't matter, rich or poor, people who have more money spend it. Poor people spend it on things they couldn't afford before, rich invest it to make more money. Because they are spending their own money, they are more careful to get value for their money. Unlike the government that thinks they can just tax or print more money.

3) Inflation is a hidden tax on the poor. Our politicians understand that inflation means debt can be paid with cheaper dollars. This also benefits any investor, as their investment gains in price. People who save money lose value during inflation.

4) The economy is not doing great. The numbers they quote to "prove" that are highly manipulated. Most contain a "fudge factor", where they say "We believe this represents this segment of the formula, and are often inflated in favor of the current administration, and later adjusted down. During the Obama administration, 200-300 thousand jobs represented just replacing the retirees and new people entering the job market. It didn't indicate ANY increase in the percent of people working or unemployed. Most of the new jobs have either been government jobs, meaning that more tax money will be used to pay for them, or part-time jobs, which are often people who lost full-time jobs and must work several part-time jobs for less income than they had before, and often no health care benefits. The labor participation rate is a better indicator, but still highly manipulated. The trillions in excess spending is being used to prop up the economy. They use the GDP to say the economy is strong, but inflation, and all the spending they do is inflating the GDP numbers, but they don't even get a dollar in growth for every dollar they spend. It is more like 60 cents of every dollar. And they you get the benefit of paying interest on top of all the debt they are creating.

5) Raising the minimum wage is inflationary and results in job loss. Companies look to reduce the number of employees and automate any tasks they can. They will also hire more experienced people and expect more from them. And I'm sorry, but people starting their first job, and take off when ever they feel like it, aren't worth a "living wage". Let them live with their parents. If you want to earn more, then please, find a job that can't be done by anybody with no experience. It's funny that people complain about low paying jobs, but nobody wants to be a plumber, electrician, machine shop, welder, or other high paying jobs. It's THEIR choice. They just keep choosing to work for a job that doesn't pay well.

6) Notice in all their comments about capping rents and the evil greed of builders and landlords, they won't consider suspending all the charges they put in place that actually cause housing to be more expensive.

7) Rent caps will be paid for by REI. When you sell the property and can't get what you put into it. Bankruptcies will increase, because expenses will increase more than the cap allows. And property taxes will keep increasing... because they want more money. If they want lower rent prices, why don't they go after New York City properties that block off entire floors of buildings, rather than reduce the rental rates. Many of these buildings are bought by foreigners looking to park their money outside their country. Rental income is just a plus, not the main goal.

8) The rent fixing conspiracy will start with people who use software and services that suggest rental rates based on current rentals in the area. And when they finish with those, anybody that keeps their rental rates current as evidence that you are price fixing. They only care about appearing to do something.

Enough for now. If you object to what I've posted, please provide facts and not just other people's opinions. If you can't be bothered proving it to yourself, nobody else has time to do it for you. I've spent years gathering information, looking at actual sources, and finding out who is factual, and who is just promoting an agenda. As far as I'm concerned, both parties have sold out. Neither is concerned with succeeding, only their own success.

Let's not forget the people who open up the windows at night, because the AC doesn't kick on. And lets in all the humidity that was removed during the day.

I once considered adding a duct and fan to blow air from the basement to the 2nd floor in summer, and from the 2nd floor to the basement in winter. But having window fans blowing out of the 2nd floor, and in on the 1st floor east side kept the house reasonable in Chicago summers. I had the energy plan where ComEd paid me $10/month during the summer to be able to turn off the central air for a couple hours, instead of brown outs. Paid for the few days that I needed the AC. Closing the top floor vents in winter allows heat to rise, so the top floor isn't so hot while the lower floors are cold, or open the top vents in summer to allow the cold air to flow downstairs.

And don't correct them when they use the "real feel", or "feels like" temperatures they have been reporting, just to make people feel as if temperatures are hotter than they have ever been. Just give them the report that says 20-25 degrees is all it can do. lol

Amazing that so few know that the north and south pole were at one time ice-less, and that glaciers created the Grand Canyon... AS THEY MELTED! And that CO2 levels are around 400ppm now, and have been as high as 8000ppm in the past, and around 250ppm, all life on earth ceases. So 400ppm doesn't sound so bad. Maybe they should just start putting out these wild fires, instead of waiting to call in the airplanes after they wait for them to get out of control.

Heat pumps with buried coils would probably handle it better than above ground heat pumps. And what I would consider if I was responsible for utilities, as in STR/MTR properties, along with solar.

You say that you can't afford to pay a lawyer, and losing, pay a judgement.

But if you pay, you are already on their radar. Every time you file for an eviction, will they try this again? Or someone they sell your name to?

And will you now consider this an additional headache, and maybe not be so ready to file for an eviction in the future? How much will this cost you in the future? And yes, bad prospective tenants can also find this out and see you as a mark. There are valid reasons others have said that they would pay more, just to not settle. And I've met too many lawyers that don't fight, but give in. Maybe you just haven't found a lawyer who isn't a wimp. lol

Just trying to show some of the other effects you may not be considering, if you settle. In the end, it is your decision. None of us can choose for you, because we don't have to live with it. Good luck.

Please stop panicking. That is when we make bad decisions. People here are trying to help, and you keep restating the points that you are panicking over. This is what this lawyer is counting on. A rush to settle before you find out their scam. And everyone here is telling you that you have the better position.

You keep stating that they have filed "Proof of Service". That is just a form stating that they have mailed something. (See link below) Anyone can state anything. Proof is another thing. As stated before, certified mail to the correct address, would be the minimum most courts would accept.

If you insist on doing this on your own, take a breath, and re-read what has already been said here. If you can't take the pressure, then please, get a lawyer. Then it is off of you to research and find all the laws and regulations.

They should have provided you with copies of everything they have filed. If there was a certified receipt, it should have been included.

Florida method of service

Since your letter was undelivered, she didn't put in a forwarding address with the post office. And if the lawyer had sent you registered mail, you would at least have received a notice of attempted delivery. Since you did not, either the lawyer did not send it registered mail, or sent it to the wrong address. A lawyer should know to send anything legal as registered mail, specifically to have that receipt as proof.

Just another example of why networking with other real estate investors in your area can help. This lawyer might be well known and others already have dealt with him, or heard of him. If you aren't already in a group, check out meetup.com to see if anyone has started one in your area. Or start one yourself. You can post on BP and see if anyone is interested.

Quote from @Kevin Hofstee:

Quote from @Kevin Sobilo:

Quote from @Jay Hinrichs:

Quote from @Josh C.:

A president talked about rent control. Is a website about real estate not suppose to address that? It’s clear what politics are in favor of rent control and how that’s going for them.

No kidding right  geesh.. Rent control is a huge topic to RE buy and hold investors full stop. 

It sounds like it is as I suggested where they won't create a rent control law but change the tax code to take away some deductions (maybe depreciation) if rents are increased over 5%. This would only apply to landlords with 50+ rentals I believe as well.

So, because the federal government can't make a law about rent control, they coerce compliance with their wishes using money. This is why I believe in a small federal government. By giving them such a large chunk of money we give them more power than they are entitled to have because they can offer to give it to us back but only if we do as they want.

Unpopular opinion, but if rent control is done right it’s not a bad thing.  It’s when there’s a patchwork of laws in a local area that really messes market dynamics and then people don’t move and others are forced to unecessarily.  There needs to be mechanisms to be able update a property and raise its rent to market that isn’t overly harmful to tenants or landlords, and then you’d have a good functioning market.

There IS a mechanism that takes into account population increases and decreases, wage increases and decreases, cost of living, taxes and a whole slew of other factors that no law could come close to factoring in. It's called supply and demand. Rents can't increase if nobody can afford to pay. And if population is increasing, and nobody is building new housing, prices will go up and there will be enough profit to attract builders.

Government is the only place where they enact laws that completely destroy something, and then ask you to vote for them again so they can fix it. Over and over and over, yet never seem able to do something that works.

Quote from @Peter W.:

I'm with @James Hamling, Democrats will probably attempt it.  There's lots of folks who feel like they've been gouged post Covid with rent increases of 10-20%/year and it will look like the politicians are fighting inflation.  Plus, there are a lot more renters than landlords and their schtick is sticking it to the rich. We just passed something similar in New York capping rent increases to 5%+CPI (although local municipalities have the option to accept or not).  Of course, what they won't and should try is things which decrease the cost to build new buildings...

The same people complaining who didn't pay rent during the Covid eviction bans, most likely. Now they're finding out that it wasn't a free ride.

NYC has tons of empty apartments. So many people have moved out. There are complete floors that can't be accessed. They would rather let them go unrented than to have rents dip. Many buildings in NYC are way below capacity because they were bought by foreign investors as a place to park cash, not as an income source.

Quote from @James Hamling:

Stole it. :D

Quote from @James Hamling:

@Jay Hinrichs I totally understand those replying that it's just pandering, or some mumble-mouth stumbling through a rambling of thoughts. These people are rooted in common sense. 

Problem is, look around.... we are NOT in a world of sense anymore. There is a long list of CRAZY things that have happened, been said, and being acted upon. Things that not many years ago any of us would have said no-way would that ever happen in our lifetime. 

And Biden and his circle has mentioned this more than the once. And when mentioned it's in context of housing costs are too much, and to make housing costs affordable "for all". So the framing of it makes it crystal clear to me, YES, a form of national control if get a chance. 

Look, wrap your mind around fact this is same group that now that Supreme Court has given rulings they don't like, they are attacking the Supreme Court itself, making statements of how it needs to be changed, reduced in power etc.. That's CRAZY talk but it's happening, now. 

Canceling student loan debt, 0 precedent for it, 0 authority, they did it anyways. And when legally challenged, they didn't step back, they just kept working the angles. 

Yes, i could see manipulations of various price gouging regulations in place, to try and cap what such could ascend. And when start stepping into that, well it's a dam breaking on gov over-reach, it set's it's own precedent to cap new unit price, auto, you name it it's a slippery-slope that opens a flood-gate of governmental control of business and free commerce. 

Remember this is the same group who has called the constitution a problem, an obstacle.... No I didn't hear someone say this was said I heard it with my own ears, it was just ignored at the time just as Bidens statements on rent controls were ignored. 

Consistently "we the people" do nothing when such insanity is said because "oh, that can't be right, they must be mistaken". And then when things get pressed on it we say "oh, that will never happen" until it does.... Over and over this sheeple generation just sits and placidly watches the disintegration. 

I take them at there word because I MUST, I don't feel I have the comfort of playing ostrich and just hoping all comes out better. 

Notice there has been NO correction or clarification by Biden administration has there? Yeah, that silence is a statement in and of itself. 

Common sense is definitely not common.

And the most amazing part is that property tax increases isn't even mentioned as reasons for rent increases. Insurance increases due to regulations. Repairs increasing due to cost of labor and materials.

They also mention taxing assets, including property and stock market. The push-back has noted that stock market gains aren't realized until a stock is sold, and gains can easily and quickly be lost.

But real estate is already taxed on unrealized gains. They adjust based on the perceived increase in value. That value hasn't been realized, unless you refinance, or get secondary loans, and doesn't guarantee future value.

Also burns me up when they pass a bill and say they know it is unconstitutional, but they'll let the courts sort it out. Doesn't sound like they're paying any attention to their oath to uphold the constitution.

Quote from @Kevin Sobilo:

Quote from @John Clark:

The federal government imposed nationwide rent control during WW2. The federal government also regulates interstate commerce, so if it were to find that rent increases were having an effect on interstate commerce (not just people moving from state to state, but in general), it could regulate rents. 

Stupid to do so? Sure, but if stupidity was a crime, we’d all be felons.

Also, the federal government has authority to regulate interstate commerce NOT things that affect interstate commerce. This goes back to when the states acted more like individual countries and didn't play well with each other. If you go back far enough states even had their own individual currencies.

Originally the Commerce Clause was created to stop states from passing laws restricting interstate commerce. Such as banning products from other states.But it has changed to allow them to regulate almost everything.

A rancher was threatened with fines because he grew grain to feed his cattle. The government swooped in and told him he couldn't do that because he was bypassing the market and that was affecting commerce.

The recent SCOTUS ruling on Chevron dealt a blow to the out of control regulations that allowed the agency to determine the legality and scope of regulations they create. Before this, the judges just deferred to the opinions of the agencies involved.

And how many investors will be put out of business if they enact rent controls, until the laws are deemed unconstitutional? And there is no guarantee of that.