Get Closer to Your Asking Price


By Dave Miller

Is the real estate market getting stronger? Here is a graph that would support that claim. This either supports it or tells us a whole other thing. This could mean that the sellers are being more realistic with their asking price.

This graph is Lancaster County home sales for the last year. It is saying the average home is selling at 93% of the asking price vs 90% in Feb of 2012.

Published in: on July 16, 2012 at 7:35 am  Leave a Comment  
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Owner Financing is Legal Again – PA Allows Owner-Occupied Residential Mortgages


by Dave Miller

What was illegal has been reverted; you can once again borrow money from your rich uncle to buy your house. In Pennsylvania, you can participate in private financing deals again.

Our government in its normal state of exaggeration and misappropriation deemed it necessary to make a law regarding mortgages. This was after Wall Street, Fannie and Freddie all really screwed up in the mortgage world. True to form our government went into complete overkill and enacted the S.A.F.E. Mortgage Licensing Act of 2008. This Act states that an individual who takes a mortgage application and negotiates a residential loan is breaking the law.

This meant that if you asked your rich uncle to loan you $200,000 to buy your house, you were a law-breaker. If you asked the seller to keep money in the house you were buying, that was breaking the law. Residential mortgages were a strict no-no. This was only being regulated for about a year but was creating quite the uproar.

Our government had enacted this law saying they were protecting the people. What they missed was that the people weren’t asking for protection. Besides this law actually did the opposite. When the people wanted money they went to the banks, and the banks were not in the lending mood so they didn’t lend. In times past the people would ask friends, family or the seller for assistance. This kept the bankers in check until their statesmen cronies helped then out by making it illegal.

I’ll try to break this down:

Secure and Fair Enforcement for Mortgage Licensing Act 2008. I’m most certain it’s not fair and secure but they picked the title, not me.

The key here is “loan originator”. They define it as anyone that takes, offers, or negotiates a residential mortgage.

This applies to “residential mortgage loans”. Owner occupied or as they state “personal, family, or household use” is prohibited.

As far as I can tell, commercial mortgages and private loans or any other non-owner-occuppied residential mortgages are legal.

Owner occupied real estate with a mortgage is what is at stake here.

Now the good news.

This month the Pennsylvania Department of Banking has released a letter to clarify what a “mortgage originator” is. Here are the highlighted areas of the letter with my comments:

As a general matter, the Department will begin interpreting the provisions of the existing MLA regarding the definition of “mortgage originator” to the extent possible in a manner consistent with the HUD Regulation.

Comment: the department is interpreting the definition of “mortgage originator”

the Department will not take exception to an individual making or brokering three (3) or less mortgage loans in a calendar year without being licensed as a mortgage originator,

Comment: the department does not view someone as a “mortgage originator” if he is involved in less than 3 residential owner-occupied mortgages.

sellers of dwellings or residential real estate by means of an installment sales contract who engage in such business in a commercial context and habitually and repeatedly are required to be licensed as mortgage lenders and have their employees appropriately licensed as mortgage originators under the MLA.

Comment: installment sales are mortgages.

You can read the entire letter: Click here

 Now I’m not a lawyer or anything close to it so don’t take my word for it. Ask an attorney that can bill you $225 an hour. I spent around 5 hours researching this subject, it’s too bad I can’t bill at that rate.

So here is my take:

You can once again be involved in owner-occupied residential mortgages as long you do not exceed 3 per year. So go ahead and borrow from your rich uncle to buy your home.

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Choose What You Want To Learn in Real Estate


We, at Shepherd Real Estate LLC, are offering a few FREE classes this fall.

Our class-room style lectures are structured around real estate investing. The Shepherd Team consists of professionals in Lancaster, PA with experience in real estate. We are investors ourselves and want to help you succeed in your endeavors. The Shepherd Team has a wealth of knowledge to share. In house we have an attorney, a CPA and Realtors all ready to help you.

 We need your help in deciding which classes to offer. Our goal is to give you what is of most value to you. We are conducting a survey to choose to the topics.

Please click through to the survey to make your choice.

Click here to take the survey.

Your response will help us pick the best topics.

Here is a breakdown of the options:

  • Investment Analysis

Crunching the numbers

  • Building your Power Team

Realtor, attorney, insurance agent, consultant, property manager

  • Assets Protection

Entities, insurance

  • Improving Cashflow

Proper management for better cashflow

  • Taxation of Real Property

Structuring your investments to avoid excess taxes

Click here to take the survey.

Thank you for taking the time to complete the survey.

Email me if you want to be notified when we schedule these FREE classes. They will be held at a location to be announced in the Lancaster PA area.

realstreet@frontiernet.net

Warren Buffet – Just Shut Up


by Robert Ringer

As much as I dislike being harsh to my elders, sometimes you just can’t control yourself.  That said, though I mean no disrespect to the man, I have to get something off my chest that I’ve wanted to say to Warren Buffett for at least two decades:  Warren, will you please — PLEASE — shut up!

I’m tired of hearing about how you’ve lived in the same modest house since 1958.  I’m tired of hearing about how you plan to give away 99 percent of your fortune, primarily to the Bill and Melinda Gates Foundation.  And, most of all, I’m tired of hearing your pleas for millionaires and billionaires to pay more taxes.

I found it sad that when you finally bought a private jet (through Berkshire Hathaway) in 1989, you were so guilt-ridden that you named it “The Indefensible.”  Sorry, Warren, but when I was in the real estate business in my late twenties, I bought a private jet, and I found it to be indispensable. What a great moneymaking tool a private jet is for a high-flying (excuse the pun) entrepreneur.

Don’t be embarrassed about your jet, Warren.  Enjoy it.  You earned it.  And, best of all, it helps you make more money, which in turn creates more jobs and helps grow the economy.  The only private jet I know of that does not do any of these things and is truly indefensible is the one your pal, the White House Whiner, flits around on.

Speaking for millions of Americans, we don’t want the government to have any more of anyone’s money.  Boehner & Friends have already screwed us yet again and given our make-believe president the right to print trillions of additional paper dollars and thereby reduce the value of what money we have left.

And what will that additional funny money be used for?  Not to pay down the debt, for sure.  The debt will not, and cannot, ever be repaid.  Let’s stop the let’s-pretend games.

The money will be used by BHO to start and expand more government agencies, hire more government workers, give Jeffrey Immelt and his other sugar daddies more government subsidies, increase his record-breaking food-stamp binge and other welfare programs, and promote his reelection campaign.

There is a misconception about money and morality, money and intelligence, and money and common sense.  Buffett clearly has a genius for making money without dirtying his fingernails.  For that, I tip my hat to him.  But it says nothing about his common sense or knowledge in other areas of life.  I’d venture to guess that he has never read Ludwig von Mises … or F.A. Hayek … or Ayn Rand … or Murray Rothbard … or Harry Browne … or even Ron Paul.

What Warren Buffett needs to do is educate himself on history, morality, philosophy, and ideology in time to bring about a deathbed conversion.  Does anyone really believe he has ever thought about the basic question of whether it is moral for the government to take people’s property by force?  Does anyone really believe he has ever given any thought to the concept of Natural Law, which gives rich people the same rights as poor people?

Until and unless you do, Warren, I again urge you:  Please, shut up!  Write the government any size check you feel is necessary to soothe your neurotic guilt feelings about your success, but, please, leave everyone else alone.

If you want to pay more taxes, I call your attention to the fact that there’s a place on your tax return that gives you the right to do so.  If you don’t feel that the nearly $7 million you paid on your taxable income in 2010 was enough, there’s absolutely nothing to stop you from paying more.  All you have to do is do it.

Copyright © 2011 Robert Ringer
ROBERT RINGER is the author of three #1 bestsellers and host of the highly acclaimed Liberty Education Interview Series, which features interviews with top political, economic, and social leaders. Ringer has appeared on numerous national talk shows and has been the subject of feature articles in such major publications as Time, People, The Wall Street Journal, Fortune, Barron’s, and The New York Times.

To sign up for his one-of-a-kind, pro-liberty e-letter, A Voice of Sanity, visit: www.robertringer.com


Published in: on August 20, 2011 at 5:38 am  Comments (1)  
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We Need More Christian Billionaires


by Dave Miller

  “We need more Christian billionaires, let’s be Christian billionaires.” my friend said. At first I brushed the comment off without any farther thought. But a day later the comment was still ringing in my head. Was there more to that line than I was giving it credit for? Was there a deeper truth I was ignoring?

  I started asking additional questions. How would society benefit by having more Christian billionaires? How many exist?

  The more I looked at it I realized once again it was not the money that made the man. The wisdom and experience would outweigh the money. In order for a person to gain that amount of financial savvy he must immerse himself in knowledge and good judgments. 

  What are deeper ways to benefit society?

  • Philanthropic efforts – This is first thing that most people think of. Even though I think it’s deeper than that, this is still a way to impact people. As always it is risky, because finding avenues that contribute to society in a healthy way is tough. So often money or food is given to poor people and it encourages that society to expect a handout. Nevertheless with a little research good missions can be found.
  • Political clout – People with money have influence. In 1776 this was the case and our foundation was built. Just as the left does damage with its money to expand its agenda, so can a Christian.
  • Betterment to society with experience – We are better off if we can learn from experience, our own or others. Who better to learn from than a Christian? A person with the fortitude to make a billion dollars could contribute to society in incalculable ways.
  • Jobs that have a healthy atmosphere – The work place has a huge impact on people’s lives. If that area can have a Christian vibe to it then it will filter into their personal lives.
  • Wealth building through job creation through efficiency – Better work ethics, which I think Christians (especially of Protestant descent, create better efficiency which equals more competitive prices. This means more business coming your way, and then you hire more employees creating more jobs, thus equaling more wealth. Wealth building is more than having a job, its learning to do a good job.
  • R&D – Research on solar, wind, gas, ethanol or other energy, should not be subsidized by the government. When a private enterprise does the R&D it is usually viable. And if it’s viable, well, then it’s worth doing. If the government gets involved they attempt to create a market in areas that are not viable. They subsidize it and this puts supply and demand out of balance. A mess is created. Again, ethanol is a prime example. Let the private enterprises do the R&D.
  • Educational advancement – When people have money, they like to put it to use in a way that satisfies their worldview. Education is an example on this. A lot of money has been spent on education in the last 150 years. The worldview of these advancements has devastated our educational system. By having money and a good worldview this decline could be reversed.

  Far greater than having a Christian with a billion dollars is the influence and contribution he can make to society. The means of getting there, the knowledge retained, and the intellectual value far outweigh the money in the end.

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