All Forum Posts by: Tony Severino

That is not correct... The folks who sent this (me included) are wrong. I will be talking tonight about the bill, and how it can affect us, and possible options around it... (assuming that you roll over and not let your rep in congress know how you feel)

The problem isn't the bill, its the people in the house and senate who we put in their....

If you think I like government interference in my business... that isn't me, I hate the government dictating to us how to run our business ( they have done so well with social security so far huh).... But I digress.

Tonight we will be talking about HB 1728 and how it can affect your business.

If You have not read it, you can find it HERE

Pay Attention to Section 101(3)(e).

Join us TONIGHT on the weekly teleconference call where will talk about the basics of this bill and how it can affect you and I.

The call is scheduled from 7 to 8:30 CST.

The phone number to call is 712-432-0800

and access code is 958028#

Remember, unless you want to join in the conversation, please be respectful to others and use your mute button. If you don't have a mute button on your phone, you can hit *6 on your phone to mute your self in and out.

See you tonight!

The Call is recorded

Tony Severino

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Now an update from Bloomburg

Option ARMs Threaten U.S. Housing Rebound as 2011 Resets Peak

http://www.bloomberg.com/apps/news?pid=20601109&sid=aQ_ZgC75Zfyw

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Jeff, every successful investor I know of at one time was a wannabe. Wannbe's bring new ideas and money into the business. They are a great asset to the business.

This bill even if it passes, it is not something that can hinder anything a creative investor does. We can still do business daily without any issues.

Death is not imminent. Not even a blimp in the pulse rate.

Here's a simple solution even without putting too much thought into it yet... the bill refers to owners.

Each property I have is owned by an separate family trust. Each trust has a different name. One may be the Smith family trust, one may be the Jones family trust, They are merely names, to help me identify the original sellers.

So since each property is owned by a separate trust, you have a simple way around the proposed choke hold.

Now Trusts are super cheap, LLC's and Sup S corps a bit more, with way more IRS crap. However each one can be an individual owner (hmmmm idea time!!!)

Once this Bill goes through the motions, fail or pass, it really doesn't matter. Creative investors who finance their own property will turn the creative juices on and find a way to legally and morally grow their business within the limits of that Congress and The Anointed one push down our throats.

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Kel

We use L.O's almost exclusively, in three states, Illinois Indiana, and Mich. We average about 1 per week. Last year we did 83, but this year I am toning ot down a bit. I am looking for higher equity properties. Buying less, but buying better

Lease Options are a great way that we generate a nice amount of cash upfront. It is common for us to receive 3-5% as the option deposit.

This is not "equitable interest" as someone suggested, because this is not a Purchase deposit, it is applied to the Option. Look at it this way, I can put an Option to buy a stock of Google. If I choose to exercise my option, my deposit is applied. If I pass on my option, I loose the deposit. The same with L.O. on houses.

The tenant buyers, also take much better care of the property. Inour Lease Option, the tenant takes care of 100% of the repairs. We guarantee the property for 30 days, to give them a level of comfort that they are moving into a quality property and not some piece of crap.

I have both given them rent credit, and also have not. If they ask for it, we give it. If they don't I am not offering it. If you offer it without them asking, you maybe just giving them money right out of your pocket.

Now, what I offer them if they ask, it to amortize the payments, just like they would get if they got a traditional loan. Another sense of ownership. I know other people give them 100 bucks or whatever makes sense for the deal. Do what you feel comfortable with.

Also, try to remember this. Most of your tenant buyers will not cash out. Last year, I evicted 11, and 6 walked away at the end of their lease.

My terms are always 1 year long. You are "married" to the tenant buyer during your lease term, once that ink hits the paper, your committed. If the Tenant buyer does what they agree to, pay on time etc, then I will quickly continue the lease for another year. If though we have to pull teeth every month, I will hesitate to renew the lease. If you give them a three year term, and they are always late, you have a three year marriage. The divorce is always the worst part.

The lease and the option are separate agreements. I would not recommend referring to one in the other.

If eviction time comes and it will, you evict on the lease, not the option. Been there, several time.... Your lease is the reason for the eviction, and the option has no bearing on the eviction.

Hope that helps!

Tony

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I posted this under the heading HR 1728 = Death to Investors . re posting here

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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 questionâ€¦ 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 sellersâ€¦ 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.