A Petition You Should Sign – Fix the E2 Visa Problem

Immigration Is an issue that is hotly debated in the US and rightly so, illegal immigrants cost our taxpayers billions of dollars cast a shadow over the whole issue of immigration.  There are many legal imigrants who come to the US and are a benefit to this country.  Only recently have some of the stranger aspects of US immigration policy come to my attention as the result of challenges some of my friends are facing.

In one case the parents of a 22 year old daughter who have green cards have to send their daughter back to England because she is too old to stay in the US and it could take two years for her to receive approval even though she has a job available to her which she desparately wants to accept, though her current 60 day visa does not permit her to work.

I have other friends who have legally entered the US and invested in businesses, created jobs and pay taxes who have to renew their E2 Visa’s every two years and risk being declined and having to leave the country on 30 days notice.  There is a petition that needs 5,000 signatures by October 25 in order to be considered by the White House.  Granted that is only a first step but a necessary one.  I invite you to participate in supporting a common sense solution to a rather de-humanizing problem. The language of the petition is below.

Allow E2 Treaty Investor Visa holders, who have brought investment and created jobs in the US, to apply for Green Cards

E2 Treaty Investor Visa holders are required to bring in foreign investment to buy or start up a US business and create jobs for US citizens. To our knowledge this is the only visa that asks for a substantial investment without leading to Green Cards. Legal permanent residency would give these small business owners more stability to expand their businesses, thus leading to even more jobs.

There have been 2 Bills in the last 2 Congresses which have not been successful and we are actively working to have a new Bill introduced in this Congress. However we realize that this E2 Visa is relatively unknown and hope that is the reason why reform has not taken place thus far.

We are LEGAL Immigrants, who are helping the US Economy at a difficult time.

We urge the White House to consider this.

Go to the link below and sign the petition, you’ll be glad you did.

Email this link to your friends and family: http://wh.gov/4TP


Profits Without Ownership: Sandwich Lease Options


You may be asking yourself, “What’s a sandwich lease option?” It’s an incredible financial instrument for creating profits without ownership. Let me  explain.

It gets its name for the way everything is structured between the seller, you (the investor), and the tenant-buyer. You step in and negotiate a long-term option agreement with the seller, which gives you the right (but not the obligation) to close on the property within 1-5 years. Often, you also negotiate in the ability to assign the contract, and to let someone else other than you live in the property.

You then go find a potential tenant-buyer, perhaps someone who is a good person that has had a few financial knocks. Individuals who don’t qualify for traditional financing are prime clients for this sort of transaction. Often they will make ideal homeowners, but simply need a few years of documented on-time payments to help repair a spotty credit record. You then place them in the property with your own option agreement. If you structure it correctly, you can earn a spread on both the sales price and monthly payment amounts that you make to the original seller.

This is, of course, a highly simplified explanation of sandwich options. But my intent it to show you how it is very possible for you to start earning money through sandwich options.

By targeting areas with “pretty” houses in good neighborhoods, you will vastly increase the potential number of buyers you can attract. Since you don’t actually own the home, finding properties that are already in good condition is paramount. To make the most of your investment dollar, you will want to spend most of your money on marketing rather than repairs and clean-up. Additionally, properties in nicer neighborhoods minimize your risk exposure, as you won’t have to worry as much about vandalism or depreciating home values.

Sandwich options are an ideal strategy for the new investor because they carry limited risk and great upside potential. Further, they are an ideal match to the current market conditions. Motivated sellers and potential buyers with damaged credit are much easier to find. This technique of options has the potential to earn you a nice sum of money, but it does require work. Steve Zehala will be sharing with you a few other techniques that leverage sandwich lease options on October 23-24 at the REI Rainmaker Retreat. As with any investing technique, you need to find the right strategy that works best for you, learn it inside and out, and most importantly, TAKE ACTION!

A Ground Floor Opportunity

You can help build our next program…are you ready? You know I have a win/win philosophy for deals, and that’s what I have for you today! I want to work with up to five small groups to gather feedback on my current program “Buying Without Cash or Credit“, so I can evolve it into “The Ultimate Creative Financing System.” I am currently in the process of taking my home study programs to the next level, and gearing them for a national audience. And the best way I can think of to improve the content is to get feedback from you!

What Do I Get?

You will receive a 50% discount on “Buying Without Cash or Credit“, which retails for $697, and includes both audio CDs and DVDs that will be shipped to your home. You’ll receive a copy of “The Ultimate Creative Financing System“, which will retail for $1497, for FREE as my way of saying thanks for participating. Additionally, you will have access to a one-day exclusive training on my favorite subject, Creative Financing. Others may get to participate for $497, but honestly, I haven’t decided if I’ll invite anyone else. Either way, it’s yours as my way of saying thanks.

What Is Required Of Me?

I ask for your frank feedback to help me serve you and your fellow investors better. You will be required to purchase “Buying Without Cash or Credit” with your 50% discount code. Over the next 45 days, you must listen to the audio and view the videos of the current program at least three times, and make notes on the following:

  • Examine each technique and comment on its clarity and ease of understanding
  • Comment on how each segment can be more effectively communicated to make it user-friendly
  • Ideas on tools which would make the program more beneficial

In addition, there will be two mandatory online surveys, which you will be required to complete in order to receive your free copy of “The Ultimate Creative Financing System“. There may also be a conference call (or two).

Is There A Deadline?

Yes. The new product must be ready for delivery by November 1st, so time is of the essence! Due to the many questions I’ve received, I wanted to give people a chance to learn more. Therefore, I am extending a deadline to get involved to Saturday, August 28th at midnight. After that, we will start working with those who stepped up to participate.

I’m Interested. What Should I Do Now?

Add a comment to this post below, and include your email address. Don’t worry, we will keep the information private! Only we will see your request, and we’ll send you a discount code and URL to purchase “Buying Without Cash or Credit“. You’ll be on your way to earning over $2,300 in bonuses as my way of saying thanks!

Seller Financing and Your Rights – H.R.4173 Revisited

On July 21, 2010, the Wall Street Reform and Consumer Protection Act, H.R 4173 was signed into law by President Barrack Obama. According to the U.S. Chamber of Commerce in Washington, the act will require federal agencies to develop 520 rules, conduct 81 studies and issue 93 reports.

The Treasury Department will have to set up a Federal Insurance Office while the Federal Reserve Bureau will form a Consumer Financial Protection Bureau, which will include an Office of Financial Protection for Older Americans and an Office of Financial Literacy. Other reforms created by the legislation will impact bank and hedge fund regulation and formation of the Financial Stability Oversight Council.

The revised version of H.R. 4173 includes some improvements over the initial version challenged by the National Real Estate investor Association, the National Association of Realtors, and you our readers; members of the real estate investing community and property owners across the country. Rather than limiting seller financing to a single transaction every 36 months, the version signed into law allows for up to three seller-financed transactions in a twelve-month period. There are a number of requirements that must be adhered to. American property rights are still under attack and it is incumbent on every citizen to continue to voice our concerns and remain ever vigilant.

The key element affecting property owners who seek to assist homebuyers by providing seller financing is section 103 (2) E in the definition of Mortgage Originator. Mortgage Originators, under the Residential Mortgage Origination Standards section of Subtitle A, “does not include, with respect to a residential mortgage loan, a person, estate, or trust that provides mortgage financing for the sale of 3 properties in any 12-month period to purchasers of such properties, each of which is owned by such person, estate, or trust and serves as security for the loan, provided that such loan—
‘‘(i) is not made by a person, estate, or trust that has constructed, or acted as a contractor for the construction of, a residence on the property in the ordinary course of business of such person, estate, or trust;
‘‘(ii) is fully amortizing;H. R. 4173—763
‘‘(iii) is with respect to a sale for which the seller determines in good faith and documents that the buyer has a reasonable ability to repay the loan;
‘‘(iv) has a fixed rate or an adjustable rate that is adjustable after 5 or more years, subject to reason- able annual and lifetime limitations on interest rate increases; and
‘‘(v) meets any other criteria the Board may prescribe;”

In addition to the three transactions per year limitation we must be watchful of E(v), “meets any other criteria the Board may prescribe. That gives the Board carte blanche to make changes without the will of the people being considered. These are not people that can be voted out of office, they are political appointees. We came very close to losing control of our own property with this legislation. As it is our rights have been diminished and many people’s futures jeopardized.

What do you think? I’d love to hear your opinion?

Two Separate Bills Passed S 3217 to Become HR 4173

Last night the Senate officially passed their financial reform bill, S 3217 Restoring American Financial Stability Act by a vote of 59/39.  According to reports they changed it into an amendment to the House’s bill HR 4173.   There are now effectively two different versions of the same bill.  One passed by the Senate and another passed by Congress.  In order for this bill to become law the House and Senate have to convene a committee to assimilate the two versions into one.  It will then still require the signature of the President.

I urge every American property owner, real estate investor and tax-payer to contact your Congressmen and Senators to seek amendment of the seller-financing portion of this 1000+ page legislation.   Main Street is not Wall Street and individuals aren’t the cause of the financial collapse and shouldn’t be held hostage because of corporate malfeasance.

Protect property rights and the right to negotiate and sell your own property without government interference. Please help spread the word by sharing this post.  For more information see our earlier post https://creativerealestateinvestingguide.com/2010/04/26/protect-your-property-rights-now

What can we say to our elected officials in Washington?

We have made huge strides in raising awareness on why Congress needs to de-couple seller financing from HR 4173, and why the Senate needs to de-couple it from S 3217. These bills are designed to protect individual consumers from big companies who are misleading the public. The current language endangers the very consumers it seeks to protect.

You can help enlighten Washington by calling, emailing and writing to your Senators and Congressional Representatives. If enough Americans raise their voices before these bills find a co-sponsor then it is possible that an amendment can correct a great injustice before it is voted into law.

I’ve received many questions asking, “Augie, I want to help but don’t know what to say!” Below you will find a letter template that you can copy and paste into an email, or download and modify, to send to your representatives. Please share this link with everyone you know so that they can use it as well. Together, we ARE making a difference!


Contact Your Washington Representative Today!


To the Honorable __________________

Dear Congressman/Senator ______________

I am very concerned about two pieces of legislation and a set of rules for implementing a law which will involve the possible loss of every American’s right to sell their own real estate without using a bank.

HR 4173 (Wall Street Reform and Consumer Protection Act)

Sponsor: Congressman Barney Frank (MA-4) introduced 12/02/09

Co-sponsors (none)

Latest Action: Referred to Senate Committee on Banking, Housing and Urban Affairs

S3217 (Restoring American Financial Stability Act of 2010)

Sponsor: Senator Christopher Dodd (CT) Introduced 4/15/2010

Co-sponsors: (None)

Latest Action: Placed on Senate Legislative Calendar under General Orders, Calendar No. 349

If either of these two bills becomes law as currently written, a new Consumer Financial Protection Agency will be created. Among other things, it will incorporate new mortgage reform and anti-predatory lending regulations (previously introduced in HR 1728). Many of these are good ideas and necessary. But, what is not obvious in the title of either bill is the restriction of the very individuals and small businesses (including investors, home builders, and just Grandma and Grandma) it seeks to protect from financial disaster. These individuals and small businesses will be prohibited from offering to accept payments when they sell their own properties. In addition to helping sell properties and avoid foreclosure for many, seller notes are the only option for many homebuyers who can’t qualify to purchase a home using traditional financing. Seller financing is used in tens of thousands of sales every year between private individuals as it has since the early days of our country. These sales would essentially be eliminated because the homeowner would now be required to be licensed as a mortgage originator, and these licensing laws are very strenuous.

Why seller financing is needed:

  • These rules would prohibit even partial financing – i.e. a “seller second” – literally millions of transactions every year.
  • Bank loans are not available on some types of properties (millions of mobile homes, land, properties in disrepair, properties in flood plains, etc.)
  • The tight lending climate has made bank financing “out of reach” for many who are self-employed, small business owners, contract employees, and others. Most affected are the lower income, elderly and those trying to enter the market as first time homebuyers.
  • The federal tax incentive allowed first time home buyers to receive this credit for seller financed properties…but these initiatives would outlaw that credit.
  • There are hundreds of thousands of vacant homes. Seller financing is often the method builders and homeowners used to sell these houses.
  • Seller financing is an “age old” tradition based on private property rights.
  • According to HUD’s “Residential Financial Survey” in 2001, roughly 40% of all non-farm residential properties in the US are owned free and clear.
  • An estimated six million Americans own a property other than their own primary residence.
  • An estimated 4.5% of Americans own three or more properties, many purchased solely as investment properties.
  • 40% of non-owner occupied residences are mobile homes for which bank financing is unavailable.
  • Approximately 5% of homes in the US are for sale or lease…seller financing may be key to liquidating this inventory and bringing back the real estate market in many distressed areas.

Summary: We don’t believe seller notes should be any part of these regulations because they are not loans of funds. This is similar to when someone wants to sell a house. If they are selling their own house, they don’t need a license. But, it they want to sell someone else’s house for a fee, they will have to follow licensing laws. We think using your own equity should be the same way. We are not loaning money, we are selling our personal property and receiving payments in exchange for equity.

What we want: We would like to see “seller financed” transactions exempted from the bill so that Americans are free to sell their own properties.

The SAFE Act – Proposed rules for Implementation

The SAFE Act itself never mentions private homeowners at all. The legislation was clearly directed toward those in the business of providing loans for a living. But, the implementation of these rules will completely eliminate all seller financing for properties which are not owner occupied (including land, investment properties, inherited properties, etc.).

The SAFE Act was passed to prevent mortgage banking fraud, but is now set to require cumbersome licensing of several groups of government employees, non-profits, and private homeowners who Congress never intended to include.

After releasing their rules HUD posted them for comment on the site www.regulations.gov. The public comments total over 5100 with the vast majority addressing the inclusion of seller financing and non-profit housing assistance agencies.

Without question, HUD has acted independently and created a mess. Mortgage industry leaders themselves have commented in opposition to the rules as have Fannie Mae, Freddie Mac, and related industry associations across the country.

Again we’d like to see Seller Financing excluded altogether from the HUD rules as it was never intended to be a part of the SAFE Act.

Thank you.