Does It Seem Like Everybody Hates Real Estate Investors?

It’s probably the biggest understatement of the year to say that real estate has been hard hit this year. Some investors got out at the right time and others had enough cash to carry them through the tough time. Those are the people who are jumping back into the market with both feet.

Others didn’t have it quite so well and are trying to find ways to recover or maintain.

And now here comes the next round of problems for real estate investors. First, let’s start with the financing change by Freddie Mac. Effective 8/1/08, you cannot refinance your conforming loan undewritten by Freddie Mac if it’s been titled in an LP or LLC for anytime during the past 6 months. For more information on this, please visit my site www.TrustSandwich.com. There is a free teleseminar and two special reports on what’s happened and the solution.

And meanwhile, quietly in the background, the IRS has been planning the next attack against real estate investors. In this case, they are challenging, very strongly, the real estate professional status. I’m working this weekend on new strategies if you’ve claimed the real estate professional status in the past. And what to do NOW before the IRS shows up (and there is a good chance that they will show up).

So, in both cases, TaxLoopholes is responding to the new threats to real estate investors.

But, what else can we do? On the forum, a group has begun to try to get NAR (National Association of REALTORS) involved with the real estate professional issue. This clearly impacts their membership. But what else? Anybody want to do a grassroots level through real estate investment clubs? I’d love to get ideas here and we’ll start compiling for the next step.

On one hand, we have Congress working to create incentives to stabilize the real estate market and on the other hand, we have the quasi-governmental agencies (Freddie Mac) cutting off funding and the IRS targetting investors. The only way I see for the country to get back quickly is for a concerted effort of all groups working together. Anybody else in on this? Let’s get back on track.