Forums Welcome to NABPM Real Estate investors and President Trump
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  • #1073 Reply
    Lance Thompson
    296 Posts

    Good People,

    Now I want to make it clear from the outset that there was no way in Sam Hill that I was ever going to be able to bring myself to vote for Donald Trump for President. I voted for Barack twice and also for Hillary. So I did what I felt was right…………but now that it’s over and done, and now that Trump has won, instead of stewing over it, let’s look at the bright side. President Trump is already showing signs of being extremely good for real estate.

    As I sit here on Thursday, December 22nd, 2016 checking the value of my 2 properties in both Temple Hills, Maryland and in Baltimore, Maryland you can see below what both properties were valued at 8 months ago when the real estate market was “very sure” that Hillary was going to be our next President……….vs. what they are both now valued at today:

    Temple Hills property value back in April, 2016 – $55,000

    Temple Hills property value now in December, 2016 – $85,000

     

    Baltimore property value back in April, 2016 – $31,000

    Baltimore property value now in December, 2016 – $80,000

     

    There’s no accident to that. That’s “The Trump Effect” on real estate which tells you that the real estate market is “extremely excited”, or better yet “elated” about him coming into office. For you young people who weren’t at least 18 years old back in 2000 when George W. Bush came into office, allow me to explain to you exactly what to expect when Trump takes office in January, 2017. Many of our nation’s inner cities are going to become much whiter. As you’re in the city where you live you’re going to notice a number of “used to be all black” neighborhoods that are going to be turning much more white & yuppie in their demographic makeup. What’s the attraction for them to “the hood”? Much less expensive property, that’s what. Houses out in the suburbs are very expensive. Houses in the hood sell at inexpensive prices. Because what’s taking place is that term that Furious Styles was teaching his son Tre and his friend Ricky in the movie Boyz In Da Hood…………..Gentrification. It’s when your young white professionals move into the hood………buy the properties at low prices……..drive the value of those homes up by their mere presence in the neighborhood AND by the expensive renovations that they pay for to fix up those properties………they then drive the value of those properties up up UP………..then sell those properties 3, 4, 5, 7 or 8 years later for double, triple and in some cases quadruple or 5 times the prices that they bought them for. Gentrification kicks into “high gear” whenever you have a Republican President in the White House. Now “some” black people………some, NOT all have a problem with gentrification. I always get “mixed feedback” whenever I talk to people about how they feel about it. The general response is this:

    -Black people who rent hate it. Because it’s going to drive up the rent that they’re currently paying in the hood. When property values go up? So do the rents!!!

    -Black people who OWN love it. Why? YOU KNOW WHY. Cause many of them are just dying to sell their homes for a pretty penny so that they can “retire” in many instances, OR, take the profit from the sale of their homes in the hood and move out to the suburbs, or to another much less expensive city Down South or wherever.

    So a black man or black woman’s feelings about gentrification depends on “who” you’re talking to.

    -Black people who rent will be cursing like sailors as their new white neighbors move in next door, across the street, and down on the next block.

    -Sheeeeidddd……….Black people who OWN will be taking their new white neighbors a cup of sugar, a nice peach cobbler that the wife just made, a bucket of freshly cooked rotisserie chicken, a pot of a homemade squash casserole with melted cheese and a gallon of lemon ice tea to wash it down………….just so they feel “comfortable” and “welcome” in their new neighborhood. And will walk in the door with all that food with the biggest grin on their faces…………..”Well hello Mr. & Mrs. Breitenbach!! How are you today?? It’s very nice to meet you!! Just wanted to stop by and welcome you to the neighborhood!!!” Haha!!!  🙂

    So your attitude about it all depends on your “perspective”. The main thing that is going to work to your benefit as a property owner is that they just announced on CNBC last week that the 1st item on the agenda once Trump gets sworn in on January 20th is Dodd-Frank Banking Law overhaul which is going to be a regulatory easing of the laws to make it MUCH MUCH MUCH easier for real estate investors to buy rental property. THAT is something you should be excited about. I would imagine they should have that done by March, 2017, and the minute it passes and gets signed into law, you all are going to see real estate begin to sell like HOTCAKES. So get ready black real estate investor………it’s about to go DOWN!!!

    #1086 Reply
    Lance Thompson
    296 Posts

    The latest as of Friday, February 3rd, 2017. As a rental property owner, what is your concern? Your concern is what will be the new down payment requirement to purchase a rental property. Prior to the Dodd-Frank Law you were allowed to make a down-payment for as low as 2% of the total purchase price………after Dodd-Frank was signed into law banks and loan institutions were mandated to require a 20% down payment from buyers for a rental property. It remained low for owner-occupied properties but that 20% down payment requirement for rental properties was devastating to the real estate market. Under the new law it is expected that the down payment mandate for banks will go from 20% back down to between 0 – 2%, WHICH IS EXACTLY WHAT YOU WANT. Pay attention to the news, keep your eye on what's happening, and stay in touch with your realtor to find out what the new down-payment requirement for rental properties is going to be…………….

     

    http://www.usatoday.com/story/news/politics/2017/02/03/through-executive-orders-trump-takes-aim-financial-regulations/97431284/

    #1087 Reply
    Lance Thompson
    296 Posts

    Okay good people, looks like we're going to have to wait until Summer, 2017 for the highly anticipated Dodd-Frank Overhaul to pass. We'll continue to keep an eye on the situation.

    https://morningconsult.com/2017/03/01/luetkemeyer-sees-house-passing-dodd-frank-replacement-summer/

    #1092 Reply
    Lance Thompson
    296 Posts

    The latest,

    According to Texas Republican Congressman Jeb Hensarling the Dodd-Frank Overhaul will pass through the House without too much resistance. The Senate on the other hand? Well that's a whole other ballgame there. The Overhaul will face a steep uphill climb in the Senate. Stay tuned………………………………….

     

    http://mymixfm.com/news/articles/2017/mar/22/key-house-lawmaker-dodd-frank-overhaul-remains-a-2016-priority/

    #1095 Reply
    Lance Thompson
    296 Posts

    Now that's what I'm talking about……the 1st draft of the Dodd-Frank Overhaul Bill is projected to be rolled out at the end of April, 2017. Good………………………

     

    http://money.cnn.com/2017/04/11/news/economy/gop-dodd-frank-overhaul-bill/

    #1097 Reply
    Lance Thompson
    296 Posts

    Okay……the Dodd-Frank Overhaul legislation which has been named The Financial CHOICE Act 2017 is set for a Congressional committee hearing on Wednesday, April 26th, 2017. It is now more than just talk…….this is where we see some action, some movement on it.

     

    http://www.housingwire.com/articles/39908-get-ready-congress-fires-up-dodd-frank-cfpb-overhaul

    #1098 Reply
    Lance Thompson
    296 Posts

    Okay,

    Happy Monday on April 24th, 2017 good people. Here’s the latest that I’ve read according to an article on USAToday.com on the Financial CHOICE Act…………

    While it is anticipated to easily pass in the House, as of right now the legislation appears unlikely to gather the 60 votes in the Senate in its current form. So it looks like President Trump plans to attack the Dodd-Frank law from the other angle by:

    #1) denying funds to enforcement agencies

    #2) appointing banking-friendly regulators

    #3) easing back on Dodd-Frank enforcement

     

    Guess there’s always more than 1 way to skin a cat. I have heard whispers on CNN though that if Republicans can’t get Democrats to “play-ball” that we may see a change in Senate rules in order to get legislation passed…….i.e., they may change the rules to make it where Republicans in the Senate only need 50 votes or more in order to pass legislation. If that happens then the Financial CHOICE Act will definitely be passed and signed into law seeing that Republicans currently hold 52 seats.

    So my prediction is that what will likely happen out here across the U.S. is that banks will begin offering much more investor-friendly loan packages that require much lower down-payment percentage requirements for rental properties whether the Dodd-Frank law remains in-place or not because as far as the law being enforced, the attitude will be “Who’s gonna stop us??”

     

    Keep your eyes and ears open.

    #1103 Reply
    Lance Thompson
    296 Posts

    Here's the videoclip of Wednesday's entire Financial CHOICE Act 2017 Congressional Banking Committee hearing. It's about 4 and 1/2 hours long so be sure to view it when you really have some time on your hands.

     

    #1104 Reply
    Lance Thompson
    296 Posts

    In addition to the vote on Trumpcare this afternoon, this took place on the House Banking Committee………so from here it heads to the House floor………………………..

    https://www.usnews.com/news/business/articles/2017-05-04/gop-moves-closer-to-long-sought-goal-of-dodd-frank-overhaul

    #1112 Reply
    Lance Thompson
    296 Posts

    A statement just put out by Republican Senate Majority Leader Mitch McConnell yesterday. He may be dead serious, or he may just be “playing politics” while Republicans are secretly negotiating behind-the-scenes with Senate Democrats. You never know what’s going on “behind closed doors” on Capitol Hill. Quite often Congresspeople or Senators are saying 1 thing in public but saying something totally different in private when they meet with their colleagues. At the end of the day, if they come up with a “compromise bill”, it still has to be a bill that President Trump is willing to sign and won’t veto. So even if they put together a bill, it may get the veto 2 or 3 times before they put together a bill that Trump will agree to. Anyway, check out the article at the link below………………….

    http://thehill.com/policy/finance/333623-mcconnell-not-optimistic-dodd-frank-reform-will-happen

    And be advised that if the Senate never passes a banking bill “ever” which I think is highly unlikely…….(I mean they’ve got to pass SOMETHING in an effort to show American voters that they are assisting the duly-elected President in achieving his agenda, otherwise they may pay a heavy price in the 2018 midterms)…….even if the Senate never passes a banking bill, President Trump and his banking-friendly appointed regulators will still be attacking Dodd-Frank from the other end by holding back on enforcement of the Dodd-Frank law and by starving the government agencies that enforce Dodd-Frank of any funding. There are “many ways” for a sitting U.S. President to weaken a law that he doesn’t like.

    #1117 Reply
    Lance Thompson
    296 Posts

    Okay good people,

    Just had a conversation with my realtor this afternoon regarding the climate between banks and real estate investors with this new banking-friendly regulatory environment under President Trump. As I suspected she told me that with the assault on the Dodd-Frank Banking law by the White House with the "easing back on enforcement", with the withholding of federal funds from the government agencies that enforce the Dodd-Frank law, and with the appointment of banking friendly government regulators, that realtors ARE beginning to see banks come up with creative ways to "get around" the 20% down payment requirement for the purchase of rental properties mandated by Dodd-Frank.

    She hasn't told me how "much" lower than the 20% requirement she's seeing, whether it's 15% down, 10% down, 5% down, 3% down or less but I do hope to find that out soon. I would imagine that your CREDIT SCORE would probably have a lot to do with how much you can negotiate a lending institution to lower the requirement…….but the good news for US is that we are beginning to see banks change their policies on down payments.

    That's outstanding news for all of us.

    Lower down payment requirements means more properties that you can buy and rent….outstanding news indeed.

    #1119 Reply
    Lance Thompson
    296 Posts

    This had been predicted by one of the talking heads on CNN and it looks like it's about to be a real possibility in order to pass legislation. I have no doubt that this option will be on the table in order to pass the Financial CHOICE Act 2017……..(which is fine by me).

     

    https://www.yahoo.com/news/trump-change-senate-rules-changed-immediately-pass-gop-plans-155809610.html

    #1130 Reply
    Lance Thompson
    296 Posts

    Okay,

    It has been passed in The House. Now comes the hard part. The Senate coming up with a bill, or with a series of smaller bills that make their way to President Trump’s desk and that he likes enough to sign and not veto. We’ll see how it goes………………

    https://www.usnews.com/news/articles/2017-06-08/house-passes-jeb-hensarlings-financial-choice-act

    #1133 Reply
    Lance Thompson
    296 Posts

    Republican Senator Mike Crapo has predicted that we're looking at January, 2018 before we'll see a comprehensive, bipartisan bill that makes its way to President Trump's desk.

    Stay tuned, and keep up with the headlines of the Financial CHOICE Act 2017 in the news.

    #1238 Reply
    Lance Thompson
    296 Posts

    Hello All,

    Hope that everybody is doing well these days. Below is the link for an article to bring everyone up to speed on what’s going on with the banking deregulation bill working its way through the Senate. The good news? The good news is that this bill has bipartisan support from both Republicans AND Democrats in the Senate. In fact, there are enough Democrats who have broken ranks with their own party that the bill now has the 60 votes needed to make it filibuster proof! This is extremely good news for real estate investors. Once it passes it has to go back to the House who then has to pass the Senate’s version of the bill. After that’s all done and it’s signed into law by Trump, keep your eyes & ears open to the new laws for real estate investors because it will be extremely important for you to know how the new law affects you.

     

    https://www.vox.com/policy-and-politics/2018/3/6/17081508/senate-banking-bill-crapo-regulation

     

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