Few industries are as profoundly impacted by the political machinations in Washington as the real estate industry. Whether it's old legislation like Jimmy Carter's Community Reinvestment Act or Barack Obama's massive mortgage bailouts, the U.S. political machine has a huge impact (usually bad) on the business of real estate.
Ideally, we could ignore politics. But here at the Bryan Ellis Real Estate Letter, we insist on seeing the world with clarity - including the reality of Washington's aggressive involvement in every facet of our business, from mortgage lending to real estate sales license; from loan modification regulations to appraisal requirements... every piece of our business is profoundly impacted by politics. So rather than stick our heads in the sand and ignore reality, readers of the Bryan Ellis Real Estate Letter choose to be informed and prepared.
Few things change more rapidly than the mortgage market, and with the increasing dominance of GSE's Fannie Mae and Freddie Mac over the mortgage business, it's more important than ever to keep up. Here are a few recent mortgage news updates:
Bryan Ellis is an Atlanta-based real estate analyst and publisher of the widely read newsletter "The Bryan Ellis Real Estate Letter". With over 200,000 subscribers - including real estate investors, agents, brokers, appraisers and other real estate professionals - the Bryan Ellis Real Estate Letter is among America's largest sources of unbiased coverage of politics and public policy for the real estate industry.
Bryan Ellis serves as editor in chief for the Bryan Ellis Real Estate Letter and is assisted by an extraordinary staff of writers, researchers and editors who are each real estate experts in their own right and who assure that the news we report is well researched, factual, and highly relevant to today's real estate industry.
Bryan is very happily married and has two wonderful daughters. He makes his home in the suburbs of Atlanta, Georgia. You can contact the team at the Bryan Ellis Real Estate Letter here.
Your Obama video is BS. First of all, I love the way you Republicans like to use Obama’s middle name when you speak of him. Doesn’t John McCain have a middle name? Or do you think that you can subliminally plant a negative image in people’s heads by referring to Barack Obama as Hussein? That’s pathetic.
Second, I won’t be basing my vote on who is going to allow me to pay less in taxes. There are soldiers dying in Irac, people losing their homes, people without jobs, people without health care, and I could go on. My point is that there are so many more important things to focus on, than how much of my money can I keep in my greedy pockets.
That’s the problem I have with Republicans. You are so self-centered and paranoid, it’s sickening. All you care about is keeping what you have, and keeping other people in their places. This country does not belong to you, and you don’t have rights that supereed the rights of others, regardless of how much money you make.
Stop worrying about holding on to what you have, and start trying to help someone that doesn’t have what you have. Yes, this is American and everyone supposedly has the same opportunites as everyone else. But the problem is that not everyone starts out on the same level. If you grow up in a poor neighborhood, you’ll likely go to poor schools and get poor education. If you grow up in the suburbs, you’ll likely go to a good school and get a good education. Who do you think will have the better life?
As an American, a Christian, and as a man, I take it as my responsiblity to carry the load for others that need a helping hand. No one wants to carry the load for people that are too lazy to help themselves, but I assure you those people don’t make up the majority of people that need our help. Most people just want the same things that most of us have: a good job or business, a decent place to live, a decent school for their kids. They just don’t have the knowledge or the means to obtain those things.
In closing, Republicans please stop acting like someone is trying to steal your last cookie. There is enough to go around for everyone.
Anthony from Chicago
Anthony – since your primary concern is clearly helping others, it may be instructional for you to consider whether conservatives or liberals give more money to charity. It may also be instructional to learn who is more effective at helping the needy: the government or private charities. Your heart is clearly in the right place, and I think seeing a slightly wider frame of reference will be really great for you. — Bryan Ellis
PROFIT is not a dirty word! With out profits more jobs can not be funded! As for more jobs STOP the illegal workers that bring down the hourly rate & take jobs from all Americans. With no jobs here for them the illegals will go back to their home country & stop the drain on all our taxes to support them. Just think with 12 million illegals getting benefits from the government till we could spent that money on health care for every American…
For someone who wants to portray themselves as an expert you show both your political and your real estate ignorance. First, if you do a deal in 1 year it is NOT dealt with as capital gains, but regular income. The only way you can possibly “do a deal” is to buy and sell. Capital gains only come into play when you sell. You set the guidelines and your examples don’t even pertain to capital gains.
I’ve done many multi-year deals. You’re making an assumption that wasn’t stated. In fact, nearly all real estate deals last longer than a year. And therefore, by the current tax code, those deals would be subject to capital gains tax. — Bryan Ellis
Second, if you look at Obama’s position papers from his web-site it shows you that he wants to NOT DOUBLE capital gains, but ELIMINATE them for both start-up and small businesses. Real estate investors are small business. So in fact he would CUT capital gains by the amount you claim he would raise them.
Really? To what are you referring exactly? I’m basing my opinions on the fact that Obama has stated he’d like to raise capital gains tax. And for your benefit, please don’t believe me about it. Here’s the video:
You claim your video was not political. What BS. OF COURSE it was! AND it was just plain wrong. The most serious part of being wrong was that you, as a self proclaimed real estate expert, should be giving ways to avoid capital gains to your readers. There are plenty of legal ways. Roth IRA, 1031 exchanges, etc. But you use your forum for politics of the lowest level.
We’ll have to agree to disagree, but I’m confident that every point you made in this comment was quite effectively debunked. If I’ve misunderstood you, you’re welcomed to clarify. And I’m no real estate guru. Just a guy whose done enough deals to have a good idea of what makes sense and what doesn’t. — Bryan Ellis
Bryan Ellis,
I understand your concerns about capital gains taxes for real estate investors. It is a proposal and as such it should be taken seriously.
Before the Bush Administration, we had a huge surplus. Now we have a record US debt problem and of the 9.5 trillion dollar deficit, over $1 trillion of it is held by China…for a war that just about everyone agrees was nothing more than a transfer of governmental wealth to the hands of greedy and often obnoxiously corrupt and primarily TEXAS contractors in Iraq. The point is this: we can’t upset China or our dollar could plunge further. Bush recently “kowtow-ed” the China by going all the way over there for the Olympics. Pathetic. More evidence that the US is losing control.
Why aren’t we focused on Afghanistan?
Bush’s policy has made us weak. Now Russia snubs us in Georgia, knowing that Bush can only use words and no action. We have lost our power and influence in Georgia and soon it might be Ukraine next. Russia actually threatened a NATO country (Poland) yesterday with invasion!!! Are you reading the news? Bush is clearly not in control. He has lost control. His politics of fearfulness continues to antagonize our global standing. And interestingly, Russia is implementing the same regional policies that Bush attempted in Iraq – unilateral military movements that are contrary to international law. And as a weak US, our dollar is weak. Bush’s policies to pave huge highways in China has spawned a runaway demand for new cars (currently 26,000 per month) in China and now competes with us more fervently than ever for oil – not only in Saudi Arabia but of course Iran where our tap is long ago tempered. We pay more at the pump due to policies such as these. For example, as a permanent UN Security Council member, China is not interested in offending Iran – its oil supplier. And China has leverage over the US due to the debt it holds over our heads. We have no leverage over Iran due to our foolish policies in the Middle East, and now that our military is over-extended, we have no leverage in Central Asia (former Soviet countries) either.
Our country needs change. On camera McCain and his hawkishness declared that Al Qaeda is training in Iran. What an ignorant politician! Wow! Lieberman, behind him and on camera, quickly reacted, whispered into McCain’s ear that he was wrong and McCain retracted his statement. After all, Sunnis and Shiites are not on the same side of Iran’s revolution. They would sooner kill each other than be friends.
Hmmmm…I think our foreign policy has depleted the US of its power, wouldn’t you agree? And the policy has centered foolishly on Iraq. As a result our economy is in shambles…or do you disagree?
Wasn’t it Barak Obama – IN 2002 – who declared that the US should not be going to Iraq and he gave all the valid reasons back then that we know now to be true? Wouldn’t you prefer a leader who is intelligent enough to have the correct foreshadowing conclusion on a war that has devastated this country? With that kind of thinking we might have averted the Iraq mistake…instead we might have focused on Afghanistan where the Taliban is gaining power once again, and had leverage over Iran and Central Asia….and Russia.
Your focus on capital gains taxes is fine. But it is one small part of a real estate investor’s concerns when holding real estate and determining the “crystal ball” of speculation and profits. We also have to be aware of what our leaders are doing to put the US in a good (or bad) position internationally – as well as domestically.
Why is it that Bush just mobilized tens of millions of dollars of US tax payer money to Georgia but failed the people of ensnared by Hurricane Katrina? What kind of a leader is a man who can’t take care of his own citizens? I guess he is just spending more money he doesn’t have leaving the mess for the next guy. Perhaps he is trying to make sense of his presidency. Who knows? He just keeps on spending and spending and spending….!!!
We don’t need more Bush-like political behavior. WE need a leader who can turn this country around, raising the value of the dollar and the US, in turn raising the value of real estate as a whole. Right now Russian, Asian, and Middle Eastern business people are snatching up our real estate coast to coast because everything has dropped in value. Our own citizens have to watch idly as the invasion of foreign capital and investment and property ownership continues to make a mark on the US landscape. As a conservative, is this something you enjoy observing? No true American could.
I have briefly touched upon a much more complicated analysis of what might be better for this country. Determining a candidate is never as simple as focusing on a very small part of a possible agenda. I do appreciate your attempts to bring a very important issue before your network of people. But I strongly disagree with your “lesser of two evils” approach. I suggest you open your horizons and view things a from a macro perspective. We are in a era of global transformation…good for profit taking with the right leader to steer the US and the world in a more cohesive direction. I think most Americans would agree. Good luck trying to convince others that you are not being political! I trust that you will print this email in it entirety. I look forward to an intelligent response.
Sincerely,
Ted Thornton
Good words Ted. The numbers tell the story. In addition to inheriting a budget surplus and turning it into a deficit Bush DOUBLED the national debt in just over 4 years. The debt that he inherited when he first sat in the White House took over 60 years of Republican and Democrat administrations to accumulate. Fiscal conservatives my rear, he doubled it in just over 4 years with virtually nothing to show for it either. This is why the price of oil it up, not just oil producers and oil company greed. If higher tax rates are necessary then so be it. To expect our grandchildren’s great grandchildren to be born into the debt we leave behind and to pay it off is just another description of slavery. Gobama!!
Ken Lovisa
For all the people reading and watching this video, beware – I am an expert tax preparer and what you are informing people about capital tax gain is totally incorrect – I have been preparing and screening corporate and individual taxes for over 20 years – I am also a real estate agent/CPA – your video is an example of what wrong with the economony right now – too many people wanting to be slick and greedy – most investors debunked because they were trying to be slick – shoddy properties, poor workmanship on flip properties and scams and just disgraceful acts commited – not all investors are like this but there were quite a few – the banking situation is note to this act. Read your tax rules before you inform people on such a wide scale.
BCHamilton
Hi “expert tax preparer” BCHamilton: (What is an “expert tax preparer”, anyway? It’s certainly not a CPA, is it?) Obama stated during one of the presidential debates that he wants capital gains taxes to return where they were at the start of Clinton’s adminstration, which is approximately double what they are right now. That’s not so difficult to understand, is it? — Bryan Ellis