Array Management Group

The End of Creative Financing?

Congress is trying to greatly restrict seller financing. This is a taking of our private property rights. The US House recently passed HR 1728 which limits you as an individual to sell real property using seller financing to only once every 36 months (HR 1728 Sec 101 Definition (3)(E)).

HR 1728, which you can view in its entirety here: http://www.govtrack.us/congress/bill.xpd?bill=h111-1728

Here are the types of transactions that you would be restricted from doing more than once every 36 months:

·        Selling YOUR OWN HOME using a land contract or owner-held mortgage so that you can get a quicker sale, higher sale price, or better rate of interest than is available in other investments

·        Carrying back owner-held second mortgages on investment properties that you sell
 

·        Doing any kind of installment sale on residential properties including homes, condos, mobile homes, and even raw land that is zoned residential

There will be creative ways to get around this but in will definitely eliminate a significant portion of investors.

I’m not sure if this will pass now but eventually it will happen. It will be revisited by different politicians until someone brings it home.

I’ve been preaching for over a year about how the government will try to eliminate the small investor. Now more than ever investors need to become educated about this country’s financial system. Also it is important to invest in updated relevant information pertaining to your career. Look beyond what the gurus are saying and do your own research.

“That’s food for thought; you do the dishes”

The The Government vs. Small Investors….Let The Games Begin by Array Management Group, unless otherwise expressly stated, is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 3.0 United States License.

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