Last Chance to tell HUD to preserve Seller Financing
The DEADLINE is TOMORROW, March 5th, for comment regarding HUD's Proposed Rules that could eliminate seller financing and it is imperative that members of the Real Estate Investment community voice their concerns with the current proposal.
Click on the link below to visit HUD's comment page and offer your concerns. Don't miss this opportunity to have a positive impact on your business and the businesses of your colleagues across the country.
http://www.regulations.gov/search/Regs/home.html#submitComment?R=0900006480a6b033
Below you will find an excerpt from the letter sent to U.S. Department of Housing and Urban Development Secretary, Shaun Donovan, which specifically addresses the necessary amendments that would need to be made.
§ 3400.103 (e) (4) and § 3400.103 (e) (5) should be amended to exempt from licensing individuals who:
"--Provide financing to a buyer pursuant to the sale of real property that the individual owns."
Whereas, §3400.103 (e)(5) does exempt those who would provide financing pursuant to the sale of the seller's own residence, it does not provide the same exemption for an individual who may seek to provide financing pursuant to the sale of property that they own, but in which they do not reside.
In other words, the proposed rules should make it clear that individuals would not be required to become licensed loan originators in order to sell any real property that they own.
In a current economic climate in which real property inventories are heavily inflated, and where stringent lending policies have made the "American Dream" of home ownership nearly impossible for many would-be buyers, this exemption would provide increased opportunity at a time when an estimated 6 million Americans own a property other than their primary residence, which they could presumably sell.
Requiring an individual to become a licensed loan originator in order to sell one's own interest in real property with owner financing or terms would diminish the existing property rights of that individual/owner.
To view a copy of the Proposed Rules please visit the National REIA Library or CLICK HERE.
A PDF copy of the letter to HUD can be found HERE.
Also, National REIA's Day on the Hill, scheduled for April 21-22, is coming up fast and priority registration ends tomorrow. Don't miss your chance to educate the policy-makers on Capitol Hill about the vital importance of real estate investors in every community across the United States.
WHILE IN WASHINGTON, D.C.:
-Meet face to face with your representatives and teach them the importance of real estate investing to the nation's economy.
-Hear first-hand updates from Washington insiders about the current state of politics and why it is imperative to be involved, NOW more than ever.
-Learn the key issues facing real estate investors (including HR 1728, HR 3440), and how to conduct effective meetings with your local, state, and national representatives.
-Explore legislative trends around the nation as you network with other real estate investors from all over the country.
CLICK HERE TO REGISTER
Click here to Download Application
Please don't hesitate to contact HUD and ask them to preserve Seller Financing, and REGISTER NOW to accompany National REIA members from across the country to speak to legislators about the need to protect the Real Estate Investing Industry.
A Small Business Finds a Catch in Federal Aid
When Barbara Wright learned last year of a federal program to aid struggling small businesses like her South Side uniform company, she jumped at the chance to apply for the Small Business Administration loan.
"I thought I could use the loan to help my cash flow," the soft-spoken Ms. Wright said as she pointed toward racks of uniforms at The Wright Fit, her store at 1805 West 95th Street. "You know you have to pay for this, and when your customers are taking 30 to 120 days to pay their invoices, things can get tight."
Read More
Entrepreneurs Weigh Credit-Card Options
Small-business owners who rely on their company's credit card to purchase big-ticket items or finance day-to-day operations won't see any benefits from this month's federal credit-card reform—unless they put those expenses on a personal card.
The new law, which was passed last May and becomes effective Feb. 22, protects consumer cards against arbitrary interest rate increases, over-limit fees and clandestine term changes. But the reforms don't apply to the business cards used by many entrepreneurs, which may tempt some small business owners to give up those cards in favor of a consumer card.
Chinese Investors Snag Properties
HONG KONG—As some of Wall Street's biggest real-estate investors weigh their next step in China after a bruising downturn, a rush of domestic players are filling the void, raising money and snapping up trophy properties.
The latest proof: Shanghai Forte Land Co. agreed last week to pay $328 million to a real-estate principal investment arm of Goldman Sachs Group Inc. for 100% of a luxury gated residential community called Shanghai Garden Plaza.
Read More
Plenty Of Credit, But Slow Sales Keep Small Firms From Loans
Banks won't lend to small businesses. If only they would, hiring would take off. That's politicians' recession-fixing mantra.
Read More
Federal rescue misses most homeowners
In March, President Barack Obama launched a sweeping plan to save potentially millions of homeowners from the same kind of financial collapse that, just months earlier, had brought the world's economies to their knees.
Read More
Does Social Sell?
For all the excitement about social media, there's a specter hanging over its use by companies. Is all this tweeting, blogging and Facebooking paying off? For some proponents, the question is irrelevant
Read MoreWell Beyond a Over Hyped Trend - Housing Data Report for September 2009
The American housing market appears to be recovering rapidly as indicated by this data. It is beyond just a theoretical trend in a leading indicator. Pending sales and closings are validating this standing inventory absorption. Looking back over this data it clearly reaffirms when transactions (Q'2 2008) and then home values bottomed (Q'2 2009).
Prices are rapidly stabilizing in the $50,000 to $250,000 market as new home buyers, but more importantly canny investors, buy up available inventory. This is not going to change with continued Government interest in maintaining buyer tax credits. Price points in markets above $350,000, $500,000 and $1,000,000 are still in flux and will not see firming in the near future, unless individual opportunities make holding or trading sense.
The two fundamental elements are loan availability within FHA lending caps, and at these price points, rentable properties delivering positive cash flow. Fundamentals mean there is better than normal money to be made in rentals. Future appreciation, tax benefits and inflation proofing your portfolio with rental real estate are bonuses.
Investors who can read between the lines have a significant market advantage as they are not driven by media misinformation or skepticism in these numbers. The general media is stirring but they are normally late to economic news. You can take advantage of this as the general market is still shy of real estate.
At Autumn Leaf Investment Association, we work diligently to aid entrepreneurs and businesses to reach their financial/business goals. This is our mission. Everything we do reflects this mission and the values that make it possible.
Our Declaration of Interdependence
Autumn Leaf Investment Association is a dynamic leader in the investing & wealth development field. We are a mission-driven organization that aims to set the standards of excellence for investing. We are building an organization in which high standards permeate all aspects of our organization. Quality service to our Membership and clientele is a state of mind at Autumn Leaf Investment Association. We proudly participate in organizations that strengthen the community and protect the consumer.
As markets change so to does Autumn Leaf Investment Association. Standing still is not an option so Autumn Leaf Investment Association has developed and rolled out several services that Members and non-Members can use to help them sway with the market.
Live Weekly Tuesday Night Conference Calls
Dial 712.432.0600, use access code 1020366# to join in.
Notes from the CPA
Bette Jo Benner
CPA
McLean, Rotherham & Co., CPA's
Losing real estate? If you're losing - or under threat of losing - your home or other real estate in a foreclosure, let's get together. as hard as it may be to understand, you can end up with a big tax bill after losing a home or rental property. Fortunately, there are tax strategies that may help to aviod that. The same applies if the lender reduces the amound of your loan.
Read More...
Real Estate Industry Watch
Commercial Lending Heading for another Credit Crunch?
Posted: 28 Jul 2009 11:56 AM PDT
An article in the Wall Street Journal is saying that when it comes to the commercial real estate market, history may be repeating itself based on the latest earnings reports from many U.S. banks. Mounting losses from loans for office space, housing complexes, strip malls, etc are heading towards record levels.
The current trend is reminiscent of the saving and loan crisis under the Reagan/Bush administration. According to RBC Capital Markets, late stage delinquencies on commercial real estate loans peaked at 6% at the height of the S & L crisis. And only a little more than 2% of outstanding loans became losses. Currently banks that have a significant portion of capital tied to properties in hard hit foreclosure areas are feeling the pinch in their portfolios.
With so many banks on the edge of trouble, commercial financing may be harder to come by. Some banks have already started to reduce their exposure in the market, while others are just starting to experience trouble in their commercial accounts. Could this be the start of a self imposed credit crunch in the commercial market?
Real Estate Industry Watch
