By Rebecca McLean, Executive Director, National REIA

For real estate investors, achieving financial independence is often the ultimate goal. However, the path to this form of wealth is not solely about accumulating properties or even a bigger bank account. It is about attaining a level of independence that allows you to make decisions based on your desires and goals rather than financial pressures. Valuing independence, leveraging the freedom it offers, and aiming for a fantastic life are key to real estate investors and local real estate investor associations (a REIA) can play a significant role in supporting investors toward these goals.

1. Valuing Independence as a Real Estate Investor

For real estate investors, valuing independence means prioritizing autonomy over mere financial gain. It’s about building a portfolio that not only grows in value but also provides the freedom to pursue the life you envision. Independence in real estate investing is achieved through strategic acquisitions, diversification, and the smart management of assets to ensure a steady flow of passive income. This income stream enables investors to step back from the day-to-day grind and make choices that align with their personal and professional aspirations. Joining a local real estate investor association can be a pivotal step in this journey, offering access to resources, education, and a community of like-minded individuals who prioritize financial freedom.

2. The Liberty to Live on Your Own Terms through Real Estate

The most incredible freedom that real estate investment offers is the ability to live life on your own terms. Financial independence through real estate means not just the accumulation of assets but the liberation they provide. This includes the freedom to choose your projects, the flexibility to set your schedule, and the opportunity to work with individuals who share your vision and values. Local real estate investor associations play a crucial role in this aspect by providing networking opportunities, partnerships, and mentorship programs that open doors to new ventures and collaborations, making the goal of living on your own terms more attainable.

3.  Achieving a Fantastic Life through Independent Investing

For independent real estate investors, living a fantastic life is intrinsically linked to achieving financial independence. This entails creating a lifestyle where your investment portfolio supports your personal dreams, be it traveling, pursuing hobbies, or contributing to your community. A fantastic life is built on the foundation of independence, where your financial security is not tied to a single job or income source. Engaging with a local real estate investor association can significantly enhance this aspect by offering insights into market trends, investment strategies, and personal development opportunities that contribute to a well-rounded and fulfilling life as an investor.

4.  Leveraging Local Associations for Independence

Embarking on the path to financial independence as a real estate investor involves more than savvy investments; it requires a supportive ecosystem that fosters growth, learning, and collaboration. Local real estate investor associations provide this ecosystem, offering a platform for education, networking, and advocacy that is invaluable for both novice and experienced investors. Through workshops, seminars, and events, investors can gain the knowledge and connections needed to navigate the complexities of the real estate market successfully. Moreover, associations advocate for the interests of investors, ensuring a favorable investment climate.

Financial independence for real estate investors transcends the traditional metrics of success. It’s about achieving a level of independence that allows for a life lived on one’s own terms, supported by a business that provides both financial security and freedom.

Local real estate investor associations are instrumental in this journey, offering the resources, community, and support needed to realize this vision of independence. By valuing autonomy, embracing the freedom of investment, and striving for a fulfilling life, real estate investors can truly achieve the ultimate wealth: independence.  To find a National REIA-affiliated real estate investor association near you, click here.

Rebecca McLean is the Executive Director of National Real Estate Investors Association

By Rebecca McLean
Executive Director, National Real Estate Investors Association

There is no doubt about the critical need for affordable housing in America today.  Affordable housing allows families to have a stable home, offering countless benefits to children by helping families stay connected to the communities they choose where they have found medical care, churches and schools.  Stability helps keep families together.  However, there is another benefit of providing affordable housing; it becomes a pathway to homeownership, a way to build financial security.

Members of the National Real Estate Investors Association work every day to improve neighborhoods, one home at a time, doing our part to provide safe, affordable housing to Americans at all income levels.  Whether it is rehabbing an older distressed home or providing rental housing, our members are on the front lines of this important issue.

However, there are some concerns about housing in general that need addressed.  Well-intended regulations often drive up the costs of rehabbing older housing and building new housing.  In some areas the opportunity for developing affordable housing is so diminished it is non-existent.  What little housing that gets built tends to be higher-end where the profit-margins are greater and the costs more easily recouped.  Often this creates a disincentive to develop affordable housing.

With the best of intentions, lawmakers often respond to the lack of affordable housing by passing more laws and regulations.  Each new law starts the cycle of unintended consequences.  It makes for good press conference soundbites, but it’s not that simple.

In reality, America actually has a huge supply of affordable housing, though much of it is in rough shape.  That’s where our members play a vital role.  In many communities across the country, deferred property maintenance has taken a heavy toll – especially on older homes.  Whether it was because of neglect or a lack of resources from the owner, a lot of homes are in dire need of rehabilitation.  This causes legislative knee-jerking in the form of punitive property maintenance codes and regulations.

We like to say neighborhoods can be improved one home at a time and it is certainly true.  National REIA members often seek out and identify distressed properties in neighborhoods that no one wants to touch.  They rehab those properties and add value not only to the community (removing blight, abandonment, etc.) but strengthening the local tax-base as well through increased property values.  Families looking for starter homes (to buy or rent, depending on their situation) are then able to find quality, affordable housing in a neighborhood that meets their needs in a location of their choosing.

This is a big deal for those in lower income communities especially when it comes to accessing good paying jobs and quality schools.  Many families also want to put down permanent roots.  Buying a home allows them to build financial security while providing stability for their family.  It is a win-win.

Finally, there is one item on the horizon that will potentially have an incredible impact on the supply of affordable housing – Opportunity Zones.  As part of the Tax Cut & Jobs Act of 2017 (now law), these zones have the power to have profoundly impact distressed communities across the nation.  We believe the tax incentives provided by this new law will spur a wave of redevelopment that will not only provide a steady supply of affordable housing, but embody the old axiom of a rising tide lifting all boats.

After all, a diverse housing stock providing affordability at all levels of income is key to helping Americans attain the American Dream – whether it is homeownership or a comfortable rental home, National REIA members are helping families make that possible….one home at a time.

Rebecca McClean is the Executive Director of the National Real Estate Investors Association.  National REIA is federation of local associations or investment clubs throughout the United States that represents local investor associations, property-owner associations, apartment associations, and landlord associations on a national scale. Representing the interests of approximately 40,000 members across America, they are the largest broad-based organization dedicated to the individual investor.

Click here to learn more about National REIA or to find an affiliated group near you.

This essay was also published on Media Planet in March, 2019 as part of exposé on Affordable Housing.

By Rebecca McLean, Executive Director, National REIA

Are you new to real estate investing, or just looking to step up your efforts? The following tips might help improve your focus.

1. Treat real estate investing as a business

One of the biggest mistakes I see new investors make is to treat real estate investing as a hobby instead of a profession. If you’re counting on real estate investing to provide income now and retirement income later you must treat it like a business. Real estate investing is now your profession. Treat it like one.

Advertise, devote time to it, show up for appointments on time, act professionally, do your paperwork properly and treat your clients professionally.

This is not a get-rich-quick scheme. It takes time to build client lists and credibility, partnerships and associations. A well-grounded business is built over time unlike “overnight sensations.”

2.  Learn about the business and stay informed

“If you think education is expensive, try ignorance.” – Former Harvard University President Derek Bok

You can lose more money making a mistake than you can learning how to avoid one. Even if you have been at this business for years, you need to keep up with current trends and laws.

Some investors honestly believe that there is nothing else that they really need to know to be successful, then a law changes, the market turns, or a new strategy begins to be used.  They either miss changes coming in their community that will affect their profits, put themselves in a position of liability, or miss out on time- and money-saving tips because they just didn’t take time to stay informed.

In the real estate business, like everywhere else, knowledge is power and for investors it’s profit too.

3.  There are many profitable strategies in real estate 

Most new investors get into real estate investing after hearing about one specific strategy. They have a friend or family member that has participated in real estate investing, they saw a TV show or infomercial or they went to their first REIA meeting and heard a speaker that made them want to pursue a specific investing strategy.

After a new investor has any success with one strategy they often develop the idea that other strategies are less profitable, more difficult to execute, and generally inferior to the one they are using. Suddenly they develop a certainty that their particular strategy is the supreme strategy so there is no reason to even consider anything else.

Following one particular strategy can be extremely valuable for the overwhelmed new investor since it allows him to really learn how a particular technique works. The downside of being so narrowly focused is that it limits the new investor’s opportunities.

Don’t get so stuck in a mindset that you can’t see good investment opportunities if they are out of your comfort zone. That being said, you can’t try to participate in a dozen strategies at once…see number 4.

4. Have a plan

All businesses need a game plan. You can’t just wander aimlessly hoping to find an investment.  You also can’t rent an office, decorate it and then sit behind your desk waiting for the phone to ring. It just doesn’t happen that way. You need to decide upon a strategy, learn what you need to do, set your goals and make it happen!

Have a plan. Pass out 50 business cards a week (or whatever goal you decide is appropriate). Talk to 50 people by phone, spend $100 a month on advertising – set your goal, make it happen every single week – day in and day out.

5. Surround yourself with like-minded people

• Attorney – preferably someone who’s familiar with the needs of a real estate professional.
• Insurance agent – you need one who also understands your strategy and investors in general.  Make sure the insurance products they sell are right for investors.  We have needs that are far different than your average home owner.
• CPA or accountant – find one that’s a real estate investor. You could potentially lose thousands of dollars in deductions and tax breaks without a professional who knows the most up to date tax law as it applies specifically for investors.
• Contractor – you need a reliable professional that shows up on time, completes the job within budget and knows how to make suggestions that will save you money.
• Mortgage broker, private money lender, hard money lender or other money professional – find one that’s experienced with investors, knowledgeable and creative.
• Mentor – someone with experience and who understands real estate investing.
• Title or escrow company – find one that caters to investors.  Make sure they understand double closings, land contracts, etc.

Your local real estate groups may be able to assist you in building your team of professionals.

8. Don’t waste time with unmotivated sellers

This is possibly the most common mistake new investors make. Some beginning investors waste time talking to sellers who are only marginally motivated.  Even worse, they drive by the house and look for comps without even talking to the seller first.

There’s a difference between being persistent with a seller or buyer who hasn’t yet made up their mind about what they want to do and dealing with a seller who really has no intention of selling anytime in the near future. Don’t waste your time if the seller falls into the latter group.

9.  Never forget that real estate is really about people

In the end, real estate isn’t about the land, the house, or even the money.  On a practical note and an altruistic note, it really is all about the people.

Many investors make offer after offer, receiving rejection after rejection, never bothering to ask the seller what they want, assuming they already know. Making offers on the properties because you think you understand the value is far less effective and far less profitable than making an offer that provides the seller an option they didn’t know existed, a solution to their problem.

The moral of the story: if you listen, and I mean REALLY listen, and try to solve the seller’s problem you will likely make more money than if you try to just apply your cookie cutter approach.

Zig Ziglar used to say, “You will get all you want in life, if you help enough other people get what they want.” This business, at its core, is about people. We provide housing, we provide solutions, and sometimes most importantly, we provide options they didn’t know were available.

Rebecca McLean is Executive Director of the National Real Estate Investors Association.

Congress Must Extend Housing Short Sale Tax Relief

In late 2007 as Americans began to feel the crushing weight of the housing crisis, Congress passed the Mortgage Forgiveness Debt Relief Act. The legislation protected homeowners opting to cut a deal with their lender to sell their homes at a discount, through a process called a “short sale”, from debt cancellation tax being levied by the Internal Revenue Service.

The decision to enter into a short sale is made by homeowners and lenders, and is a recognition that it is simply the best option available for all parties. Classifying the debt forgiven during a short sale transaction as taxable income demonstrates a fundamental misunderstanding of the circumstances of the borrower and the lender. Levying draconian tax on distressed homeowners may not only drive them into bankruptcy, it also hurts struggling communities and the broader housing market.

Congressional passage of the Mortgage Forgiveness Debt Relief Act facilitated a crucial option for distressed homeowners, and recognized the reality that the government could not modify its way out of the housing crisis. In 2008 short sale activity nearly tripled with approximately 400,000 homeowners utilizing this vital transaction every year. The short sale tax break expired in 2013, and this year has seen short sales plummet nationwide to no more than three percent of existing home sales annually.

Short sales provide an opportunity for homeowners who are behind on their monthly payments, underwater, and facing hardships like being unemployed to walk away from their homes without suffering all the negative consequences of a foreclosure. The classification of the homeowner debt cancelled during a short sale as income allows the IRS to levy a hefty tax bill against Americans who were unable to pay their mortgage, thus burying them in further debt and making the use of the short sale transaction prohibitive.

Distressed homeowners are not the only casualties of the failure to extend this tax break. Communities hit hardest by the housing crisis bear the brunt of Congressional inaction as well. Many of these properties are abandoned or in disrepair, and thus do not fit into the models of many institutional real estate investors and are not a priority for real estate agents either. Thus the homes remain abandoned and broken down, hurting housing valuations in neighborhoods, denying state and local governments much needed tax revenue, and often lead to spikes in criminal activity.

Distressed properties are highly sought after by non-institutional private residential investors, and short sales are a crucial tool for these investors as a means to purchase the property, conduct the necessary repairs, and re-sell or lease the property to a qualified candidate. The threat of a massive tax penalty levied against struggling homeowners has prevented these investors from performing the essential work of re-building devastated communities one home at a time.

Another rarely mentioned yet important aspect to this issue concerns the “shadow” housing inventory. Estimated to be roughly 1.6 million homes, these are distressed properties where the homeowner is seriously delinquent or the property is abandoned, but the homes are not in active foreclosure or listed for sale. Institutional buyers have made a dent in the shadow inventory, as have government modification programs. Short sales are another powerful tool that can be used to normalize the shadow inventory numbers and return stability to the housing market.

The debate over extending the Mortgage Forgiveness Debt Relief Act comes down to providing assistance to homeowners, allowing devastated communities to recover from the housing crisis, and providing an essential tool to facilitate a full housing market recovery. Some may raise the issue of lost tax revenue. The revenue generated by taxing distressed homeowners utilizing short sales pales in comparison to the potential tax revenue from home sales and property taxes that will be realized through the execution of more short sale transactions. Also, the distressed homeowners didn’t have the money to pay their mortgage, therefore they also do not have the money to pay the tax bill since the bill is based on “phantom income.”

Congress cannot undo the damage to homeowners and communities already done in 2014 because this tax break is not available to distressed homeowners. However, extending the tax break through 2015 and making it retroactive to cover all of 2014 would be a good start. Congress should follow the leadership of Senator Debbie Stabenow (D-MI) and Senator Dean Heller (R-NV) and move immediately to extend the bipartisan Mortgage Forgiveness Debt Relief Act before more damage is done.

Here’s a link to the published article: http://www.housingwire.com/blogs/1-rewired/post/31738-congress-must-extend-housing-short-sale-tax-relief

Existing Home Sales Data: August 2014

• Existing home sales increased 2.4% in September 2014, up 2.4% in August and down 1.7% from September 2013;
• Median existing home prices in September 2014 were $290,700, 5.6% higher than September 2013;
• All cash purchases: 24% of purchases in September 2014 were all cash, down 1% from August and 9% from September 2013;
• Individual Investors: Individual investors purchased 14% of existing homes in September 2014, up 2% from August 2014 and down 5% from September 2013. 63% of these purchases were all cash;
• Distressed Sales: Foreclosures and short sales comprised 10% of all existing home sales in September 2014, down 2% from August 2013. 7% were foreclosures and 3% were short sales.
• Distressed Sales Discounts: Foreclosure discounts for September 2014 were 14% (same as August 2014). Short sale discounts for September 2014 were 14% (up from 10% in August 2014).

National REIA’s lobbying arm in Washington, D.C. along with National REIA Board Member Tom Zeeb continued meetings with Congressional leadership staff in Washington during the month of September. The meetings concentrated on restoring the short sale tax break, raising the profile of National REIA as a partner with members of Congress and staff, and discussing the Congressional housing agenda for 2015.

Based upon more than three dozen meetings over the course of the last several months, National REIA’s lobbyist in Washington believes there is a very high probability that the short sale tax break will be extended when Congress returns after the election. Potential obstacles to passage would be an international crisis or a “poison pill” amendment to the legislation, but other than that the package of tax extenders which includes the Mortgage Forgiveness Debt Relief Act will be scheduled for votes in both the House and Senate and the votes are there for passage.

Passage would mean all homeowners who utilized short sales in 2014 would not be subject to taxation on “phantom income” from the debt forgiveness involved in the transaction, and that relief would extend through 2015. We would expect to see improved numbers on short sale utilization when the January 2015 existing home sales report is released in late February 2015.

Existing Home Sales Data: August 2014

• Existing home sales declined 1.8% in August 2014 after four consecutive months of growth;
• 05 million existing homes were sold in August 2014 v. 5.14 million in July 2014; 5.33 existing homes were sold in August 2013;
• The decline is attributed to a decline in investor activity;
• Median existing home prices in August 2014 were $219,800, 4.8% higher than August 2013;
• All cash purchases: 23% of purchases in August 2014 were all cash, down from 29% in July 2014 and the lowest since December 2009;
• Individual Investors: Individual investors purchased 12% of existing homes in August 2014, down from 16% in July 2014 and 17% from August 2013. 64% of these purchases were all cash;
• Distressed Sales: Foreclosures and short sales comprised 8% of all existing home sales in August 2014, down from 12% from August 2013. 6% were foreclosures and 2% were short sales.
• Distressed Sales Discounts: Foreclosure discounts for August 2014 were 14% (down from 20% in July 2014). Short sale discounts for August 2014 were 10% (down from 14% in July 2014).

National REIA Board Member Tom Zeeb will be in Washington, D.C. this week with National’s lobbyist meeting with the office of the subcommittee chairman with oversight of Fannie and Freddie to discuss a variety of housing issues as well as the role of residential investors and National REIA’s leadership of the industry.

One item on the agenda will be the extension of the Mortgage Forgiveness Debt Relief Act, a bill that prevented distressed homeowners from taxation on phantom income when utilizing a short sale transaction. Mr. Zeeb, in concert with National REIA’s lobbying arm, has prepared an editorial on the matter that will be shared with the media and members of Congress. National’s lobbyist has spent the last few months working on this matter and reports to National that the prospects for getting the extension, which will be retroactive for 2014 and extend through 2015, are extremely good.

The passage of the short sale tax break extension should revitalize the use of the transaction. Short sales gained a tremendous boost in late 2012 when National’s lobbyist worked with the Federal Housing Finance Agency on the National Standard Short Sale Program, but the failure to extend the tax break into 2014 has caused a dramatic reduction in the utilization of short sales to save distressed homeowners and revitalize communities. National REIA’s lobbying arm in Washington, D.C. will prepare a briefing for members when the tax extender package is passed in Congress, which we expect will be after the November election when Congress returns. Senate Majority Leader Harry Reid has committed to getting the package (which includes the short sale tax break) to the floor of the Senate for a vote before the end of the year. The measure appears to have very strong support in both the Senate and the House, and President Obama supports the tax extender package as well.

Upon passage of this crucial measure for the residential real estate community, National REIA will work with its Washington, D.C. lobbying arm to prepare an agenda for 2015.

Summary of July 2014 Existing Home Sales Report

• Single family home sales were up 2.4% from June 2014, and down 4.3% from July 2013;
• Existing home inventory was up 3.5% from June 2014 to 2.37 million homes;
• Distressed sales (foreclosures and short sales) comprised 9% of all existing home sales. 6% were foreclosures, 3% were short sales. The overall distressed sales figure for July 2014 is down 15% from July 2013. This month marks the first time distressed sales comprised less than 10% of existing home sales since the housing crisis.
• Average distressed property discounts: foreclosures sold at a 20% discount while short sales sold at a 14% discount.
• Investor Activity: Individual investors comprised 16% of existing home sales in July 2014. 69% of investors paid cash. Short sales average time on the market is 93 days, foreclosures on average stay on the market 58 days, and non-distressed properties remain on the market for an average of 45 days.

FHFA Takes Lead on Mortgage Finance Reform Effort

The failure of Congress to agree on a comprehensive housing reform bill this year does not mean housing reform is not happening. The Federal Housing Finance Agency (FHFA) has seized the opportunity to reform the mortgage finance industry in the absence of Congressional action. Ultimately, Congress will pass a housing reform bill, but by the time they get around to it most of the critical decisions will have been made by FHFA. Currently on the agenda for FHFA are the following issues which National REIA’s lobbying arm in Washington, D.C. will monitor:

• Common Securitization Platform: Fannie and Freddie use outdated technology and engage in duplicative activities in the mortgage securitization process. FHFA is working on creating the common platform and a common security to lower costs for consumers and reduce risk pricing distortion.
• Credit Availability: FHFA recognizes that borrowers with less than excellent credit and small down payments are having difficulties getting loans. Current FHFA leadership has placed credit availability as a top priority for the agency, and as important has de-prioritized the goal of reducing the scope and size of Fannie and Freddie. Action on affordable housing goals and expansion of credit availability will take place at FHFA in the near future.
• Mortgage Servicers: FHFA is considering placing capital requirements on non-bank mortgage servicers to reduce their potential risk to the housing market given their rapid growth. The Consumer Financial Protection Bureau has already passed regulations governing servicers designed to improve their performance in serving consumers, and additional regulations, including requiring a plan on how to service each mortgage in a portfolio before the rights are sold, are in the works.

The annual Federal Budget debate and the vote to lift the Federal Debt Ceiling will dominate the Congressional agenda this fall. We can expect a large part of the House budget debate to center on compromises in exchange for the defunding of the Affordable Care Act, a process that will not go anywhere. One key budget issue pertaining to landlords will be the expected increase in funding for HUD’s Private Enforcement Initiative, part of the FHIP program. This funding provides grants to eligible non-profits to conduct what amount to sting operations on landlords to ensure compliance with discrimination laws. Currently funded at approximately $46 million per year, a House amendment shifting money around internally at HUD will fund the program at $56 million in 2015.

Formerly a perfunctory vote, the Federal Debt Ceiling debate always has the potential to cause issues between Congress and the White House. The White House is firmly entrenched on the matter so it does not appear Congress has much maneuvering on this unless without resulting in larger and negative consequences for the broader economy, specifically the U.S. credit rating.

Congress is also expected to take on No Child Left Behind Reform, the non-Agricultural portion of the Farm Bill dealing with the food stamp program, and immigration reform. In every election year, Congress takes on controversial issue it knows will not be settled before November as a talking point for the election, and this year immigration reform will be that issue. The Senate has settled on a bill, but the House will likely take immigration reform on in a series of measures, most likely starting with border security and citizenship for children.

As all this is taking place, National REIA’s lobbyist in Washington will continue to work to garner support for the post-election vote on the Mortgage Forgiveness Debt Relief Act. If National can convince Congress to extend this important tax break on short sale transactions, it will boost the use of the transaction and build momentum for National REIA to take on additional issues crucial to our community in 2015.

National REIA’s lobbying arm in Washington, D.C. continued to meet with offices of members of the U.S. Senate and relevant committee staff attorneys to discuss extending the short sale tax break through 2015. Representatives for National REIA met with the sponsors of the measure earlier this month, and are now focused on one goal: securing enough votes in the Senate to pass this important tax break for distressed homeowners and the residential real estate investing community.

National REIA’s Washington lobbyist will continue to hold Senate meetings through the summer and into the fall until the measure comes up for a vote. Our expectations on the timing of a vote have not changed. All of the intelligence gathered during meetings with Senate offices indicates a post-election vote on the short sale tax extension. The vote should take place during the brief time period after the November election before 2015. The language of the measure extends the short sale tax break through 2015, and makes it retroactive for 2014. Getting this measure to the President’s desk before 2015 should dramatically increase the utilization of short sales in 2015.

In addition to its work in the Senate, National will begin lining up votes in the U.S. House of Representatives in September. National REIA’s lobbyist along with National REIA Board Member Tom Zeeb are scheduled to meet with the office of the chairman of the subcommittee governing Fannie and Freddie, a key office to secure to ensure a successful vote result post-election. National’s lobbyist does not anticipate much opposition to the short sale tax extension in the House.

June Existing Home Sales Data Summary

Existing home sales rose 2.6% over May 2014

• June 2014 sales pace was 2.3% lower than June 2013
• Existing home inventories are higher than they have been in more than one year, suggesting a continued rise in sales over the coming months
• Median existing home price was $223,000 (4.3% higher than June 2013)
• Distressed sales comprised 11% of all existing home sales in June 2014. This is down 15% from June 2013. Foreclosures accounted for 8% of sales, short sales accounted for 3% of sales
• Distressed property discounts June 2014: The average foreclosure discount was 20%, the average short sale discount was 11%

Over the course of the first two weeks in July, National REIA’s lobbying arm in Washington, D.C., in concert with National REIA board member Tom Zeeb, has met with the key sponsors of legislation to extend the short sale tax break retroactively for 2014 and through 2015. The extension of this tax break, which prevents the IRS from taxing cancelled debt during the utilization of short sales, is critical to restoring the use of short sales. Since the failure to extend the Mortgage Forgiveness Debt Relief Act into 2014, short sales have fallen dramatically since the passage of the tax break implementation in 2008 to 2013 and through the passage of FHFA’s National Standard Short Sale Program, another product of National REIA’s lobbying arm.

National’s lobbying arm and Mr. Zeeb met with the offices of Senator Debbie Stabenow (D-MI), the primary sponsor of the bill, along with the office of Senator Dean Heller (R-NV), one of the top Republican supporters of the bill in the Senate. The team also held additional meetings. The meetings produced three positive results.

First, National REIA’s team gathered importance intelligence about the prospects for passage and timing of passage of the short sale tax extender. Second, the offices provided National REIA with a blueprint for helping the bill pass before the end of the year. Finally, the meetings established National REIA as a valuable player in this process and one of the driving forces behind helping distressed homeowners and opening up more opportunities for investors.

Based upon its meetings on Capitol Hill, National REIA’s lobbyist is confident that the short sale tax break will be extended. As it stands today, the most likely scenario in terms of timing for passage will be after the election in November and before the new Congress convenes in January. National REIA’s lobbyist will continue to meet with every Senate office through the election to gather additional support for the passage of the tax break extension.

At this time, National’s lobbyist has this issue firmly under control, thus National does not believe that any grassroots contact or meetings without the presence of National REIA are necessary as our current effort is well-organized, the same message is being delivered to every Senate office, and prospects for passage look solid. National does not want to confuse the issue with potentially mixed messages especially as we are potentially six months away from a significant victory.