Wednesday, January 25, 2012

Open Letter To All Virginia Senators and Delegates Asking For Help

I am writing you regarding an issue that is very important to small business owners across the state.

As I know you are aware, the Water Authorities in Virginia have recently been billing landlords for tenants unpaid water bills. Apparently this has become such an issue that the Virginia Housing Commission hosted a conference with the following associations in an attempt to develop a solution to the issue.

The Apartment and Office Building Association
The Home Builders Association of Viginia
The Northern Virginia Apartment Association
The Virginia Apartment and Management Association
The Virginia Association of Realtors.

Unfortunately they invited associations that aren’t directly impacted or are impacted in a very limited manor regarding this issue to the conference. Real Estate Investor Associations (REI’s) are all across this state. There are REI groups in most cities in Virginia. REI groups consist of single family to small multi family property owners. These large apartment complexes that the apartment associations represent do not typically have their water split up with individual meters on each apartment so this issue does not affect them as they pay the water bill, not the tenant.

REI groups across the state are very concerned with the new proposed legislation HB 567 that the Housing Commission and Associations that have no stake in the issue have suggested.

Us small property owners simply can not afford to guarantee any portion of a tenants delinquent water bill along with all of the other costs involved with running our businesses. We are also fearful that this legislation will be the last nail in the coffin allowing new legislation to be passed where the property owner will be guaranteeing all utility bills including gas and electricity. The power company in our area is already attempting to tell property owners that they will also not allow the power to be turned on unless the previous tenants delinquent bill is paid.

Quite frankly we do not feel it is moral or ethical for a third party to be responsible for a product or service that we had no beneficial use of.  This is a violation of contract law and if this violation is continued to be allowed our rights will be dramatically impacted.

A landlord does have the ability in Virginia to collect up to 2 months security deposit however during these trying times people quite simply don’t have it. If we are able to get one full month of security deposit that security deposit is most often gone anyway because tenants often like to skip out on the last month of rent and there are almost always damages that have to be taken care of to get the property back in good condition.

I see no reason why a small property owner with single family or small multifamily properties should be responsible for someone else’s actions. Peoples accountability for their own actions is a very important thing in our society. And the Water Authorities accounts receivable should be collected strictly by the deposit they receive when the tenant contractually agrees to set up an account with them and their special ability that they presently have to collect directly from their tax return if they have not paid.

I would like for you to strongly consider voting against HB 567 or any package of bills that it is in.

Here is a brief overview of items we object to within this bill:
-    New requirement for a landlord to send in a written authorization allowing a tenant to put the water in their name in an attempt to show that the tenant had no previous right to use the water in a property without a landlords written consent. This new provision legally positions the Water Authorities in a manor that they are not breaking contract law as the service is provided as a benefit to the landlord and not the tenant. By using this form we are signing our rights away.
-    The Water Authority has been given the right to shut off the water after one month of non payment and 2 additional months. After 3 months total they can put a lien on a landlords property if the tenant doesn’t pay. Tenants are already starting to figure out that they can move out and not pay their bill and it will go on the landlord. The Authority has the right with this bill to add 20% to the lien to the landlord.
-    The Water Authority with this new bill will no longer have to file a judgment against the tenant. They can simply go directly after the landlord. And landlords will have no way of determining whether or not a tenant they are renting to has previous delinquent water bills as we check tenants credit and if there is no judgment than we have no way of telling.
-    The Water Authority does not have to collect a deposit from a Section 8 tenant and still has the right to give a landlord the full lien.
-    If there is an existing lien from an unpaid tenant bill the Water Authority has the right to shut off the water at the house essentially shutting down our small business.

Please stand behind the small business owner by voting against HB 567 as this is an issue that is very important to us.

Please feel free to contact me if you have any questions or concerns.

Best Regards,

Dallas Powell
CMO - Real Estate Investors of Virginia

Rental Inspection Programs, Unconstitutional When Inspections Are Done With No Probabe Cause. YOU HAVE 4TH AMMENDMENT RIGHTS THT THE GOVERNMENT CAN NOT TAKE AWAY FROM YOU!!!



Minnesota Supreme Court Rules for Property Owners/Renters In Red Wing Challenge

WEB RELEASE: December 28, 2011
CONTACT: John Kramer (703) 682-9320

 Red Wing, Minn.—Today the Minnesota Supreme Court handed down an important victory for Red Wing property owners and renters and for citizens across the state of Minnesota. The court allowed a property rights case to go forward that had been tied up by procedural hurdles for more than five years. The case challenges Red Wing’s rental inspection program, under which the city can enter and inspect people’s homes without any evidence that a code violation has taken place. The decision, which seriously examined the facts of the case and the practical impact of the law on plaintiffs’ rights, is a model of judicial engagement.

Nine landlords and two tenants from Red Wing, Minn.—who are represented by the public interest law firm the Institute for Justice—object to Red Wing’s rental inspection law.  Many cities across Minnesota—including Minneapolis, St. Paul, Duluth and Rochester—have local laws like Red Wing’s that allow government officials to conduct housing inspections of all rented homes in the city, even if the tenant refuses to consent to the search and even if the government has no reason to believe there is a problem with the rental home or even with the building.  The unusual alliance of landlords and tenants sued the city to prevent government inspectors from violating their rights.

“Red Wing’s unreasonable and unconstitutional inspection program allows government inspectors to poke around in practically every nook and cranny in your home—even closets and your bathroom,” said IJ Senior Attorney Dana Berliner.  “Our clients sought to test the constitutionality of this law before it is used to illegally enter their homes. Now, thanks to the Minnesota Supreme Court, they will get an answer to that question. The courthouse door remains open for our clients.”

As the Minnesota Supreme Court pointed out, “The City has actually begun enforcing the rental inspection ordinance against appellants.” Therefore, there is a real dispute that affects plaintiffs’ rights, and the courts can go forward to address whether the law is unconstitutional.

Until today’s ruling, the city had announced its plan to continue to try to enter the plaintiffs’ homes without their consent and force the plaintiffs to engage in piecemeal litigation to protect themselves. With the ruling, the plaintiffs can settle the constitutionality of the law once and for all.

Landlord Robert McCaughtry, a plaintiff in the case, has had enough of the city’s inspection program. He said, “I’m not against the city having housing standards, but it’s wrong for the city to force its way into peoples’ homes without any evidence of a problem or code violation. I’m grateful that we’ll finally get our opportunity to show that this program is unconstitutional.”

“Increasingly local governments use ‘administrative warrant’ programs to skirt the protections of the Fourth Amendment and force their way into people’s homes,” said IJ Minnesota Chapter Attorney Anthony Sanders. “The Fourth Amendment, and the similar provision in the Minnesota Constitution, was intended to protect people’s property and privacy rights, and its standards—requiring probable cause of an actual violation of the law—are entirely reasonable and not something the government should be allowed to ignore.”

The court remanded the case to the Minnesota Court of Appeals to decide the issue the plaintiffs have been fighting for all along: whether the Minnesota Constitution allows inspections without probable cause.

“The Minnesota Supreme Court has regularly interpreted the Minnesota Constitution to provide greater protection for individual liberty than is provided by the U.S. Constitution,” said Berliner.  “We believe this is an excellent opportunity to ensure all Minnesotans are free from unreasonable searches of their homes and properties.”

Watch Your Debt, Know what you are doing when you take risk by leveraging money


Friday, January 20, 2012

The Latest News on Mortgages

USDA turn times for loan closings-Sellers beware!

As a result of the political climate RD was forced to offer early retirement to many of its staff and Virginia was one of the hardest in the Nation with these reductions.  So they centralized their operations and submission centers that began on December 5th.  With the holidays and through the adjustment to the implementation of this new process they have gotten so far behind that they were working on files from December 14th as of late yesterday with the goal to get to 15th today.  He did say that they hoped to catch up more quickly now that they didn’t have any more holidays for a while and that some of the days in December towards the end were Holidays and files were not received. He told me also that they have been given strict orders due to discrimination concerns they can’t pull one file and move it in front of another no matter what the reason is so.  He assured me all lenders are receiving the same treatment and no one is getting better turn times nor service.  They are not allowed to work over-time and have not been given Congressional authority to hire additional people…So it is what it is at this point.

The good news is that he said that they believed that they would begin to be able to get the turn times down gradually over the next few weeks and that they are lobbying hard for Congressional hiring authority.  He said we could do our part by letting our Congressmen know the budget cuts affect on Rural Housing.

He seemed sincere in turning their problems around but was honest that it was going to take time and patience from everyone.  The only thing we can control on our end is the communication to our Realtors, Clients, and how we prepare for our closing dates, locks, etc.  I would recommend for setting 60 day closings with 60 day locks until it gets better.

Here's another one for the band wagon!!!!

As a result of the Temporary Payroll Tax Cut Continuation Act of 2011, effective base pricing to accommodate the increased loan guarantee fee (G-Fee) for all Conforming Conventional (including High Balance) you will begin to see pricing adjustments next week from nearly all investors and an increase in rate lock extension fees..some of these will range from 25 to as much as 50 basis points….so if you have clients floating loans be careful…and watch your extension costs.  The pricing will be adjusted in the rates so there will e no need for further manual adjustments to the prices you get through Nylx, but you do need to be aware of this additional price that will be “baked in” thanks to our Government starting next week.  This only affect loans backed by either Fannie or Freddie so it does not apply at this time to government loans.

Yes that’s right..for a 2 month extension of the Payroll tax cut of 2% for all Americans…they decided to pay for it by Fannie Freddie charging servicers additional fee’s.  This ofcourse gets’ passed all the way through the channel to the consumer.  But no one’s raising taxes right?

Call your Congressmen and let them know that even though consumers might  not realize this is a cost to the housing market that you are fully aware of it and it was a spineless way to pay for a cost for a 2 month (yep only 2 months for a fee that has no limit on how long it may continue) extension to a payroll tax.  If you want the housing market to revive ask them why they put another tax on it?

Have a Nice weekend

Jamie Bailey
Branch Partner
Alcova Mortgage
cell 540-556-0994
fax 540-266-3830
office 540-772-3877

Rock Bottom: Housing May Have Already Hit It

On Strategy January 17, 2012

Key Points

  • A comprehensive (read: long) and chart-filled update on housing suggests the bottom may largely be in.
  • Pricing may have more downside and real mortgage rates need to decline further, but most other metrics are flashing green.
  • New themes: housing becoming "local" again, and for now, renting is trumping buying.

Housing: no longer ARMed and dangerous

I'm honored to be in my 10th year as Schwab's chief investment strategist, and over that time have written countless reports. One of the most widely read and quoted was my "Housing: ARMed and Dangerous" report in late 2006. It represented my broad thoughts on housing at that time, which were quite dour, as longer-time readers might remember. It was one of those times I wished I had been off-base with my concerns.
Fast-forward to 2012 and it's time for a fresh look at housing. My conviction level does not match that in 2006, but I do think the tide is turning for housing and that the bottom is largely in. That said, one of the key characteristics of housing going forward brings us back to one of its key characteristics historically, save for the bubble period: housing is becoming "local" again.
During the real-estate bubble's inflation and subsequent bursting, housing could be analyzed nationally and somewhat monolithically. The rising tide was lifting all (house) boats, and when the tide went out, it took everything with it. But what we're beginning to see is a broadening of conditions, with a widening spread between the have and have-not regions of the country. Another theme of the real-estate recovery is rent versus own, with a sharp bias recently toward the former.
There are many reasons for my budding optimism about housing:

Hedge-fund buying/homebuilders outperforming

Although a recovery in housing is by no means consensus yet, there have been some notable adherents to the view. A recent article in The Wall Street Journal chronicled a number of large hedge funds that are starting to "wager on housing." Hedge funds run by Caxton, SAC, Avenue, JHL and Blackstone have been upping their housing-related investments, while formerly bearish research firm Zelman now predicts a housing rebound, as does Goldman Sachs.
The stock market appears to agree, with homebuilding stocks—as measured by the S&P 500 homebuilding index—up 78% since the market's early-October 2011 lows (through Jan. 13, 2012). The fourth quarter of 2011's outperformance by homebuilders was the largest in a single quarter since the third quarter of 2008 (which occurred mostly before the Lehman Brothers meltdown in mid-September of that year).

NAHB index

Recently reported was the fourth consecutive increase in the National Association of Home Builders (NAHB) index, taking it nearly back to its pre-Lehman peak, and achieved without the "artificial" support of the homebuyer tax credit. As you can see in the chart below, the index is now signaling a much higher pace of home sales. Assuming the relationship between the two remains connected, we could see sales increase to a level not seen (without tax policy support) since the pre-Lehman days. Caveat: this would still be well below the boom peak of more than eight million.

Housing Index Signaling Higher Sales

Housing Index Signaling Higher Sales

Sales picking up/lending environment improving

As you can see in the chart below, sales of existing homes have already rebounded from their 2010 lows, while sales of new homes have leveled out over the past couple of years.

Existing Sales Rebounding

Existing Sales Rebounding
And pending home sales have really accelerated, a key leading indicator for future activity. It's also encouraging that National Association of Realtors (NAR) data show that the bulk of the recent rise in existing home sales has been driven by first-time buyers. This strength is likely partly due to banks starting to lend a bit more freely.

Pending Home Sales Surging  

Pending Home Sales Surging

Construction activity rebounding

Construction has been trending higher, with both single-family and especially multi-family building permits up since early 2009. And, as you can see in the two charts below, housing starts appear to be bottoming for single-family homes and have started a sharp V-shaped recovery in multi-family units.

Rental Demand Driving Starts

Chart: Single-Unit Housing Starts, 3-month moving average

Chart: Multi-Unit Housing Starts, 3-month moving average
Overall, starts remain well below their peak, but the "law of small numbers" means the percentage increases are significant and will continue to be. Record-low mortgage rates, an improving jobs picture, greater credit access and rising demand for apartments are all driving starts. In large part due to the strength in housing, ISI recently upped its fourth-quarter 2011 gross domestic product (GDP) estimate from 3.0% to 4.0%.
As I noted in the introduction, the recent bias toward renting over owning has been a huge support for the multi-family sector of housing. The severity of the prior collapse in home sales and prices, coupled with a serious squeeze in mortgage loan access, have pushed many people toward renting instead of owning. In fact, nationally, the rental vacancy rate has dropped from a record high of 11.1% in the third quarter of 2009 to 9.8% in the third quarter of 2011. There remains downward momentum in this rate, which suggests the turn we've seen in multi-family units has legs going forward.

Renting hot now ... could drive buying later

The rent versus own is borne out in the data seen in the chart below. Not since the early 1980s has the number of renter-occupied units exceeded owner-occupied units. But don't equate rentals solely with multi-family housing. More than half of all rentals are in buildings with four or fewer units, including one-third that are single-family homes.

Renting Takes Over From Buying

Renting Takes Over From Buying
Why rent? Renting doesn't require a down payment, there's no need to qualify for a mortgage, it provides greater mobility and maintenance is pushed to the landlord. But vacancies are falling and rental rates are rising, so the rent over buy will not last in perpetuity.
Unquestionably, this can be seen as the slow fade in the "American Dream," which is sad in many ways. But when the ownership rate was peaking alongside the bubble's peak, it was artificially supported by absurd lending practices, bubble prices, limited-to-no down payments and questionable loan documentation. We're now erasing those excesses, and that's good for the long-term health of the housing market.
There are presently about four million potential foreclosures in the pipeline, with Ned Davis Research estimating another 2.5 million people losing their homes. That would take the homeownership rate back to 64%, in the range that prevailed from 1985 to 1994. No surprise is the fact that homeownership rates have fallen most precipitously in those states with the largest housing busts, and with younger households having taken the biggest hit.
A longer-term story about rent versus own is that rising rents will eventually push would-be buyers to purchase homes—a process could begin sooner than many expect.

Fading American Dream

Fading American Dream

Some states strong again

Staying on the subject of states and local economics, we're seeing housing conditions revert back to the "old normal" when the spread of results around sales and pricing was wider and driven by the local economics, including of supply and demand.
Based on the Case-Shiller 20-City House Price data, there are five major cities now with rising prices: Denver, Washington DC, Charlotte, Tampa and San Diego. Bringing up the rear (in order from bad to less-bad) are Atlanta, Detroit, Minneapolis, Las Vegas and Chicago.
Looking forward, employment is a leading indicator for improvement in housing, and the top five states for job growth are Mississippi, Oregon, Nebraska, Tennessee and Alaska. Employment growth is weakest in Louisiana, Washington DC, Rhode Island, Utah and Washington (state).
In terms of equity, the five states with the lowest share of mortgages in negative equity are New York, North Dakota, Oklahoma, Alaska and Pennsylvania. The states with the highest share of mortgages in negative equity are Nevada, Arizona, Florida, Michigan and Georgia.
Finally, we can look at valuation of housing. According to Federal Housing Finance Agency (FHFA) data, which measures house prices to personal income per capita, the five most-undervalued states in terms of housing are Nevada, Arizona, Michigan, Georgia and California. The most overvalued in terms of housing are Washington DC, Alaska, Alabama, New York and Wyoming.

Inventories coming down

"Visible" inventory has fallen sharply, as you can see in the chart of months' supply of homes below. In fact, the drop has brought this measure back down to its 30-year average. Caveat: there remains a multitude of homes in "shadow" inventory (homes in foreclosure pipeline or vacant but not-for-sale).

Supply Plunging

Supply Plunging

Mortgage rates low/housing affordability high

The continued decline in home prices and the drop in mortgage rates to record lows make the affordability environment quite exceptional. Freddie Mac's measure of the average 30-year fixed mortgage rate is now less than 4.0%. They'd be even lower were it not for an elevated spread over the 10-year Treasury yield, reflecting concerns about the eurozone debt crisis and its impact on the lending environment.
When combining record-low mortgage rates with flattish income growth and lower prices, you have record-high affordability, as you can see in the chart below. In fact, the burden of new mortgage debt has never been lower.

Record-Breaking Affordability

Record-Breaking Affordability
According to Capital Economics, the monthly principal-and-interest payments on a mortgage used to buy the median-priced home with a 20% down payment were 12.8% of the median income in November 2011. To put this in historical perspective, that's down from nearly 40% in the early 1980s, when mortgage rates were in the double-digits.
However, it's not all good news for housing:

Real mortgage rates still too high

As noted above, mortgage rates are at record lows. But (and it's a big but), what matters more to prospective buyers is often the "real" mortgage rate. The real mortgage rate, seen in the chart below, is the nominal 30-year fixed rate minus the rate of appreciation/depreciation in home prices. On that basis, we probably need to see a greater drop to really stimulate demand.

Real Mortgage Rates Not Low Enough

Real Mortgage Rates Not Low Enough
As you can see above, although we've come a long way from 22% real mortgage rates at the bottom of the housing market (when prices were imploding), we're nowhere near the bubble peak, when real mortgage rates were deep in negative territory (when prices were exploding).

Prices still falling

Unfortunately, the rate at which home prices have been falling accelerated toward the end of last year. However, that rate is unlikely to be sustained now that activity is improving. In fact, as seen in the chart below, with total home sales having rebounded and their tendency to lead prices, the likely path of least resistance for prices should soon turn up.

Home Prices Still Suffering

Home Prices Still Suffering
The year-end 2011 weakness in prices was probably a lagged response to the very weak economy and home sales in the first half of last year. Of course, since then the economy has staged a notable re-acceleration. The balance presently between supply and demand is consistent with prices stabilizing by about mid-year 2012, only about six months from now.
In terms of magnitude of possible additional price depreciation, it appears we're only less than 10% away from a pre-bubble average based on the FHFA Purchase-Only House Price Index.
One can also compare the prices of existing and new homes. As you can see in the final chart below, "used" (existing) homes have become extremely cheap relative to new homes. Presently, used homes are selling for less than three-quarters of the price of a new home, which is the widest gap since records have been kept (1968).

Cheaper to Buy "Used" versus New

Cheaper to Buy 'Used' versus New
When foreclosures have moved further through the pipeline and the excess supply of existing homes finally recedes, prices will begin to move back to the cost of a replacement home. And remember, the excess inventory doesn't have to be completely eliminated; it just needs to recede toward normal levels. Ned Davis Research estimates that the excess supply will be largely absorbed between the end of this year and the beginning of 2014.
As for housing's impact on US GDP, 2011 was the first year since 2005 when residential investment was not a negative contributor to GDP. The consensus is for it to be neutral in 2012 and a positive contributor in 2013. But, the contrarian in me thinks we could be pleasantly surprised this year and see a positive contribution. Given where the expectations bar is presently set, it would be very pleasant indeed.

Thursday, January 5, 2012

Who Really Owns The United States And It's Real Estate?

Federal Reserve "NOTE"
The Federal Reserve: History of Lies, Thievery, and Deceit
by Dr. Ken Matto
Former Congressional Candidate, 6th District N.J.
"I place economy among the first and most important virtues, and public debt as the greatest of dangers. To preserve our independence, we must not let our rulers load us with perpetual debt."
-Thomas Jefferson

Did You Ever Wonder Why The National Debt Keeps Going Up and Up?
One of the most ungodly and fraudulent institutions ever perpetrated on the American people and the world, is the Federal Reserve System which through deceit became the central bank of the United States in 1913. The idea came about on a meeting in Jekyll Island off the coast of Georgia in 1910. The bankers in this country, especially J.P. Morgan, created a currency panic in 1907 in order to get the American people to accept the idea of a central bank.
A central bank already existed in England from as far back as 1694. The Rothschilds completely dominate the banking system. It is estimated their wealth goes into the trillions.
Baron Nathan Mayer Rothschild boasted:
• "I care not what puppet is placed upon the throne of England to rule the Empire on which the sun never sets. The man that controls Britain's money supply controls the British Empire, and I control the British money supply."
The idea of a central bank is to so enslave the people of the country to a debt money system that you continue to collect taxes continuously which just covers the interest. The duped people of the United States are paying about $400 billion dollars per year to the IRS which is the collection agency for the Federal Reserve. By the way, the Federal Reserve is a privately owned bank with 10 private members. The Chase Manhattan Bank is a member which is owned by the Rockefellers who are Rothschild Agents.  I will list the ten member banks at the end of this article..

At this point the citizens of the United States falsely owe these lemmings over 13 trillion dollars. Have you ever asked the following question?

History of Lies
During the time of the Babylonian captivity of Judah, a man named Jacob Egibi became the founding father of modern banking. While Judah was in captivity, Jacob began a business of loaning out money for a rate of interest. During the Reign of King Kandalanu of Babylon (circa 648-625 B.C.) a new phenomenon appeared on the scene which Jacob Egibi played a major part, and that was the invention of private banking. There were 2 prominent families at this time, they were the Egibi family and the Iranu families. These 2 families are not a figment of imagination as their names have appeared in many cuneiform tablets discovered by Archaeologists. It is believed that the Egibi family was taken with the first captivity into Assyria and then later migrated to Babylon. At the time of the 70 year captivity, Jacob Egibi already had an ongoing private banking business in which he collected large sums of interest. Now we have secular insight as to why many of the Jews did not want to return with Nehemiah to rebuild the temple at Jerusalem.
By the time of the end of the captivity, many of the others who were in captivity with the Egibi families learned this evil business practice and began to set up shop. A good example of this are the moneychangers which the Lord Jesus Christ threw out of the temple. As a friend of mine said to me many times, "Christ drove the moneychangers from the temple and was crucified 4 days later."

During the time of the Persian period, loan sharking became a business where interest rates of anywhere from 30-50% were charged. As time went on, the writings of the Roman historian Tacitus, tells us that during the reigns of Caesar Augustus (27 BC - 14 AD) and Tiberius (14-32 AD) records of the Roman empire reveal deposits, withdrawals, brokers fees and loans. When the western Roman Empire fell, banking continued to thrive in Egypt, Byzantium, and the Arab nations of the Red Sea.

When the Christian era began to take hold and the church became a powerful entity, she returned to the Old Testament Edict of not charging usury and this idea continued up until the time of the Renaissance when banks began appearing across Europe. To show you how some kings despised usury, I offer 2 quotations:

...if any man is found taking usury, his lands will be confiscated, and he will be banished from England...
Alfred the Great, King of England; 849-901 A.D.

...If a man is found taking usury, his lands will be confiscated. It is like taking a man's life, and it must not be tolerated...
James 1, King of England; 1566-1625 A.D.

With the rise of international trade which commenced at the end of the medieval period, many of the banks were allowed to coin money for their transactions. At that time, there was no such thing as national money and when the banks minted coins, they were all of different value which created a dilemma for international trade. The first "Christian" gold coins were struck by Emperor Frederick II in 1225 A.D. Then came the "ducats'' of Portugal, the "florins" of Florence, the "agnels" of France, and the "sequins" which became the official coins of Genoa and Venice.

Europe then progressed from the Feudal system and with this came trade between different nations which resulted in foreign moneys accumulating in the various cities in Europe.
1694: The Year which Doomed the World's Economies
The government of King William III was in desperate need of money. When learning of this situation, a man named William Patterson put together a cartel of wealthy men, of which he was the leader. Patterson and cronies agreed to loan the King 1,200,000 pound sterling which would have been approximately 6 million dollars at 8% interest per annum on the condition that the king would grant 2 things:
1) He would grant Patterson and his associates a charter which would name them "The Bank of England," and

2) This bank shall have the "sole and exclusive right" to issue notes to the fullest extent of its capital.

The people were having a problem with their gold and silver coins of which the bankers quickly came to the rescue. The solution is aptly described by Professor Carroll Quigley in his book, Tragedy and Hope:
• ...for generations men had sought to avoid the one drawback of gold, its heaviness, by using pieces of paper to represent specific pieces of gold. Today we call such pieces of paper "gold certificates." Such a certificate entitled its bearer to exchange it for pieces of gold on demand, but in view of convenience of paper, only a small fraction of certificate holders ever did make such demands. It early became clear that gold need be held on hand only to the amount needed to cover the fraction of certificates likely to be presented for payment; accordingly the rest of the gold could be used for business purposes, or, what amounts to the same thing. A volume of certificates could be issued greater than the volume of gold reserved for payment....Such an excess volume of paper claims against reserves we now call bank notes. In effect, this creation of paper claims greater than the reserves available means that bankers were creating money out of nothing...
The King literally granted the Bank of England the legal right to print all the money that would be used in commerce by the people and the government. In other words the Bank of England became the sole money source of any currency that was used in English commerce by either the people or the government. If they needed more money, they simply printed it. It is said that by 1698 British government owed 16 X 10 to the 6 power pounds sterling to the Bank of England. Keep in mind this was only 4 years.
1773: The Second Date of Infamy
In 1773, a wealthy goldsmith and coin dealer named Mayer Amschel Bauer (1743-1812) summoned 12 wealthy and influential men to his place of business in Frankfurt, Germany. His purpose for the meeting was to impress upon these men that if they pooled their resources, it was possible to gain control of the wealth, natural resources, and manpower of the entire world. He then outlined a 25 point plan on how to accomplish it.
The plan was put into operation and evidentiary information exists that Bauer aligned himself with Adam Weishaupt who was the founder of the Illuminati whose aim was and still is world domination. Bauer later changed his name to Rothschild which means "red shield." He took it from the red sign which hung outside his place of business. The eagle was clutching 5 golden arrows in its claws. It was supposed to symbolize his five sons. Presently the red shield represents the official coat of arms of the city of Frankfurt, Germany.

Later on each of the five sons were dispatched to a major city in Europe to establish a branch of the Rothschild banking firm.

Son #1 - Amschel - Remained in Frankfurt and propelled Germany to financial success under Bismarck.

Son #2 - Salomon - Went to Vienna, Austria. he became a leader in the Austria-Hungary Empire.

Son #3 - Nathan Mayer - Went to England where he took control of the Bank of England.

Son #4 - Carl - Went to Naples where he became the most powerful man in Italy through his banking skills.

Son #5 - James Jacob - Went to Paris where he established the central bank. He was credited with dominating the financial destiny of the nation of France.

By 1850, the House of Rothschild represented more wealth than all the families of Europe. Shortly after he formed the Bank of England, William Patterson lost control of it to Nathan Rothschild and here is how he did it:
• Nathan Rothschild was an observer on the day the Duke of Wellington defeated Napoleon at Waterloo, Belgium. He knew that with this information he could make a fortune. He later paid a sailor a big fee to take him across the English Channel in bad weather. The news of Napoleon's defeat would take a while to hit England.
When Nathan arrived in London, he began selling securities and bonds in a panic.
The other investors were deceived into believing that Napoleon won the war and was eyeing England so they began to sell their securities too. What they were unaware of is that Rothschild's agents were buying all the securities that were being sold in panic. In one day, the Rothschild fortune grew by one million pounds. They literally bought control of England for a few cents on the dollar. The same way the Rockefeller's went into Japan after World War 2 and bought everything 10 cents on the dollar. SONY=Standard Oil New York, a Rockefeller Company.
Frederick Morton wrote in his book, The Rothschilds:
• "...the wealth of the Rothschilds consists of the bankruptcy of nations."
There were other wealthy families in Europe and America which were allowed to join "the international banking club" such as John D. Rockefeller and John Pierpont Morgan.
Early American Wisdom 

The Americans had won their political independence but their financial independence was in jeopardy. The international bankers had an agent in place and his name was Alexander Hamilton who wanted a central bank. Thomas Jefferson lobbied vehemently against the central bank stating it was contrary to the Constitution. However, a central bank was formed in 1781 known as the Bank of North America which was patterned after the Bank of England. 
The colonists wanted nothing to do with it so it folded in 1790. The international bankers countered the closing of the Bank of North America by gaining a charter for the Bank of the United States which was chartered on February 25, 1791. The Bank of France desired the formation of the US Bank also and it was chartered for 20 years.
In 1826, the second bank's charter was soon to expire and presidential candidate Andrew Jackson campaigned strongly against a central bank which was owned and operated by the international banking element. Here is Jackson's opinion of those bankers:
• "You are a den of vipers. I intend to wipe you out, and by the Eternal God I will rout you out...If people only understood the rank injustice of the money and banking system, there would be a revolution by morning."
In 1836, the charter did expire but that was not the end of the international banking influence in this country. The Civil War was planned in England as far back as 1809. Slavery was not the real cause of the Civil War. The Rothschilds (who were heavy into the slave trade) used the slavery issue as "a divide and conquer strategy" which almost split the United States in two. The Bank of England financed the North while the Paris branch of the Rothschild bank funded the South. In 1863, the National Banking Act was passed despite protest by President Lincoln. This act allowed a private corporation the authority to issue our money.
Enter 1913 

In November of 1910, some of these vultures came together at the Jekyl Island Hunt Club on Jekyl Island, Georgia. What were they hunting? The biggest prize of all, the absolute and complete control of all the money in America which means control of all America and with it the power to make slaves of all the people.
Those who attended were: Senator Nelson Aldrich (Nelson Rockefeller's maternal grandfather); A. Piatt Andrew, Economist and Assistant Secretary of the Treasury; Frank Vanderlip, President of the National City Bank of New York; Henry P. Norton, President of Morgan's First National Bank of New York; Paul Moritz Warburg, a German who was partner in the New York banking house of Kuhn, Loeb Co.; Benjamin Strong, an aid to J. P. Morgan.

Paul Warburg was credited as the architect of the bill which was passed by Congress and signed by traitorous Woodrow Wilson. It was entitled the Federal Reserve Act of 1913. 

America once again had a central bank but this time they had placed America under an absolute dictatorship. President James Garfield had insight into this situation:
• "It must be realized that whoever controls the volume of money in any country is absolutely master of all industry commerce."
The Federal Reserve was incorporated in 1914 and has been creating a completely unnecessary national debt ever since. In simple terms, the Fed creates money as debt. They create money out of thin air by nothing more than a book entry. Whenever the members of the Fed make any loans, that debt money is our money supply.

The United States went bankrupt in 1938 because of this system. It took the Fed only 25 years to bankrupt the USA. Can you imagine how little time it would take these vultures to bankrupt a developing nation? The American people are paying about $300 billion dollars a year in interest to this phony organization. When you look in the Washington, D.C. phone book, you will not find the Federal Reserve in the Government section as they are a private concern.
The national debt is increased about $1.71 billion dollars every day (as of October 12, 2004) . Have you taken a look at your money? It says "Federal Reserve Note" which means it is an instrument of debt. There is no real money in circulation.
The Assassination of President Kennedy
One of the greatest coverups in history was the Killing of the President. If you believe the Mafia did it, then I have ocean front land in Kansas for you to buy. President Kennedy was murdered over money, $4 billion dollars worth. You see, he had printed $4 billion worth of non-interest bearing money which meant he began to chop at the profits of the vultures. 
Interest free money means the national debt is eliminated and the power of the international banking element is broken. So to prevent Kennedy from abolishing the illegal Fed, he was assassinated. Coincidence? As soon as the traitor Johnson was in office, he recalled all the debt free notes and continued our country in the same path of ruin. There, the mystery of the killing is over. Just follow the trail of the money.
Now that the Federal Reserve was firmly in place, schemes had to be constructed to get the government to borrow so a continuously growing national debt would happen. So here are some coincidences: The Federal Reserve is created in 1913, then in 1914 we have World War 1. Right at the end of World War 1, we have a depressed economy especially in the Weimar Republic where 2 billion marks could buy a loaf of bread. In 1917, we had the Bolshevik revolution in Russia. A man named Lord Alfred Milner was a front man and paymaster for the Rothschilds in Petrograd during the revolution. He later headed a secret organization called The Round Table which was dedicated to a one world government run by wealthy financiers under socialism.
Then, lo and behold, in the 1920's we see a little known corporal with 12 men meeting in a beer hall in Munich while in America the Roaring 20's were in progress until October, 1929. 

Then the Federal Reserve withheld money from circulation so bills could not be paid, while simultaneously they were calling in all their loans which caused the stock market to crash. By 1932 the price of stocks had plummeted 80%. When the bankers plunged this nation into a depression on that fateful day in October, at the New York Stock Exchange was a visitor, his name was Winston Churchill who stated after the crash of '29, "Now I know who wields the real power."  The key to understanding the Great Depression is to realize that when the Federal Reserve had contracted the money supply, there was not enough money in circulation to pay bills, to hire people, to pay back loans, etc.  The crash of the stock market was the symptom but the cause was the Fed restricting the money supply.  This is their weapon which is used today.  When they flood the country with money, this causes inflation. 
Then we come into the 1930's and the rise of Hitler. Hitler was also funded by Wall Street through the Industrialist I.G. Farben. Let's test the theory of follow the money. Here is a little known corporal with no money meeting in a beer hall in Munich with only about 12 men. In a seriously depressed and defeated country, there begins to rise another military dictatorship. 

By 1934 the Nuremberg Rallies were in place and Germany was rebuilt. In that countries' economy who had that much money to rebuild Germany into a powerful country which marched across Europe and almost defeated Russia in the first 24 hours of Case White (The invasion of Russia)? The answer is the bankers of the USA and England. In fact, a banker named Bernard Baruch was President Roosevelt's personal advisor during World War 2. 

Baruch made $200 million dollars as a result of World War 2. During WW2 the Rockefellers were selling oil to the Germans from their Standard Oil concern in Argentina.

The Council on Foreign Relations (CFR) was formed in 1919 in Paris, France by Colonel Edward Mandell House who was known as Woodrow Wilson's alter ego. The CFR was and still is dedicated to the one world rule under a new world order. In fact, every war has been planned by the CFR. Every American President since 1919 has had their cabinet filled with CFR members. Also our traitorous Presidents fill their cabinets with not only CFR members but those of the Trilateral Commission, the Bilderbergers, the Yale Fraternity of the Skull and Bones (George Bush was a member of this).

These members insure that the will of the bankers are done, even if the President is not a member of any group. After WW2, was fought another war was created known as the Korean War (which was started by a phone call from John Foster Dulles), then the Vietnam War. 

During the Vietnamese War, the Rockefellers had a metals processing plant going full blast in North Vietnam. The Rockefellers have the blood of thousands of Americans on their hands because of their supplying the Russians with weapons and metals. The North Vietnamese received their weapons from Russia. The only reason these rats are never indicted for treason, is because since WW2 there has never been a declared war which means if we have no official enemy, there can be no aiding the enemy AKA treason.

Presently we have skirmishes such as the Gulf War of 1990 which was an experiment by the New World Order crowd to see how fast they can assemble an army in case a country does not choose to obey the dictates of the banker bosses. Of course funding for the gulf war came from borrowing money from the Fed. Wherever you hear of a limited war, or some type of political destabilization, think of the money trail. Wars are started in foreign countries, then our President goes there and gives millions of dollars of borrowed money which normally goes into the pockets of the dictators. Nowhere in our Constitution is it written that our government is to borrow money and give it away.

At this point I want you to click on the following web site and see the reality of the death of America:
Final Thoughts
The American economy has been sucked dry by the Federal Reserve System. Americans think they own property but the truth is the entire United States has been mortgaged to the bankers. The Rothschilds and Rockefellers become richer while the peoples of the world become poorer. The International Monetary Fund and the World Bank are also designed to loan money to developing nations with the understanding that they will never be able to repay so with every loan made to a country, it becomes their death knell. The entire world has been plunged into a debt economy which means 6 billion people are in debt to about 250 men. But keep in mind that all their wealth is phony because it is created money without any gold backing.
I really laugh when Wall Street bows down to Ben Bernanke who is nothing more than a boot licker of the International Banking element who takes his orders by phone too. So many people rejoice when the Federal Reserve has a policy meeting and no interest rate increase happens. The truth is that we should never have a Federal Reserve to begin with. They print money, loan it into circulation, and the American people are strapped with more debt. 

I remember leaving materials on the Federal Reserve at a meeting of Concerned Women for America. The next day I went back and not one copy was taken. The reason given me was because it was not approved material. Groups like Concerned Women for America and the Christian Coalition and Rush Limbaugh are something known as controlled opposition. They are allowed to exist as long as they do not bring up the real issues. If they stick to the created liberal Democrat Vs. conservative Republican agenda, they can exist and the bankers will even make them famous. But you will never hear a Beverly LaHaye, Tim LaHaye, Jim Dobson, Billy Graham, Gary Bauer, or any other famous Christians ever tackle the real issues like the illegal Fed which causes all the poverty in every country. If these people would think for a minute that if $350 billion dollars a year was not being sucked out of the economy and was used for the people in this country, we would surely have enough to help other nations and our own problems. Crime would almost be non-existent with a monetized money system. The Great Commission would also be funded without worrying if there will be enough left over to feed the children.

All owned by the Rothschilds
Rothschild Bank of London
Warburg Bank of Hamburg
Rothschild Bank of Berlin
Lehman Brothers of New York*
Lazard Brothers of Paris
Kuhn Loeb Bank of New York*
Israel Moses Seif Banks of Italy
Goldman, Sachs of New York
Warburg Bank of Amsterdam
Chase Manhattan Bank of New York
*In 1977 Kuhn Loeb and Lehman Brothers merged to create Kuhn Loeb, Lehman Brothers, Inc.

Now ask a question - Where is the Federal Government of the United States listed and how much does it get? I will answer it for you, it is not listed because the Federal Reserve is private and it receives nothing.



A Warning to the bankers and their sycophants!
There is a God in Heaven which you have spurned and ignored and He has allowed you, in His plan, to pull this Fed scam on the stupid and indolent American people. There is coming a day, and very soon in which all of you will stand before Christ and be cast into an eternal hell. Every secret deal you made, every war which killed innocent children and young men and women, you will give account for. You will have no power nor excuse. Many of your colleagues are awaiting the judgment right now and they will weep, as you will, realizing that for a few years of luxurious living, an eternal hell is awaiting. That is the interest you will pay.
For an excellent presentation on the entire history of usury leading to the illegal Federal Reserve System, go to:

"The Creature from Jekyll Island" by G. Edward Griffin is probably the best book on the Federal Reserve and the banking system of the world.  He covers what a bailout really is?  He covers the International Monetary Fund and the World Bank.  He also covers the reality of how Socialism ruins a country and destroys a countries' economy by removing wealth from the wealthier countries and giving it to the poorer countries.  These poorer countries use the money to boost the size of their government and the reality is that the people never see one penny of the money which is given to these dictators in small countries.  The International Banking system is designed to reduce the wealth of our nation and reduce our living standard.  This book will help you understand what is really happening at the present time.  It is not chance but a planned destruction of the United States to bring it into the New World Order as a reduced third world nation.  If you don't think this is happening now, then go back and watch your sports.

Wednesday, January 4, 2012

Roanoke City Real Estate Assesments Are Down by 1.6 Percent

Well it is that time of the year. Property Tax Assessment Appealing Time....

And the government research is done. Even though the former president of the Realtor Association, Richard Limroth, says that we have taken about a 20% hit in value to Roanoke Properties since the bubble popped and REI of Roanoke says this hit was substantially larger in many areas, the city has decided otherwise against the views of professionals in the industry.

Listen to thy loving government as they always know best. Your loving government never has ulterior motives because they are a shining example of moral and ethical behavior.

Roanoke City has determined that since the bubble popped Roanoke City has had a 1.6% drop in property values. Great News For All Of Us!!! That means that this whole housing bubble thingy didn't ever happen here. YAY!!! It's good to know that no one is or has experienced any problems with the sale of their house at the price that they want for it... Well... they have to take a 1.6 percent cut but that's nothing.

And Roanoke City has told the citizens of Roanoke the good news that this 1.6 percent decrease in value to some areas of the city is only going to require them to lose about 1 million dollars. They are not worried about it though because they are getting it back threefold from other income streams. IE: Highest meals tax in the country @ 12%.

Let me ask you a question. If the real estate values have dropped by a minimum of 20% as experts such as REI of Roanoke and Richard Limroth have suggested, and the city only cuts your real estate taxes by 1.6%, and continues to tax a much higher property tax value than it is really worth, IS THAT THEFT?

OK, we all know why they are doing it. They don't want to cut the size of the local government.  Well, don't let anyone tell you that there is not room for massive cuts.... especially to things such as entitlement programs.

So I can tell you from personal experience that the junker areas of town went down by approximately 5.5 to 6.5 % by their projections.  The city told the Roanoke Times that NW Roanoke was hardest hit. But I have reason to doubt that considering the fact that I have houses all over the hardest hit areas and from what I see SE Roanoke was the hardest hit. A little research I will be doing and this will be confirmed.

The reality is that these low income area properties are being sold off the MLS for 50% of their tax assessed value every day. And you have the right to appeal your tax assessed value whether you believe it is too high or too low. Mine are all too high. It's funny how I buy a 5 plex house on Patterson for 21K and get two lots next door to it for free right off the MLS. Its funny how it was sitting on the MLS for over a YEAR and what I paid isn't fair market value? NOPE, Fair market value in their eyes is $87,100.00. Maybe they will be willing to buy all of my properties for fair market value. Whohooo, I'll be rich!!!


Don't miss the deadline. Not that hard to do. All you have to do is to get your Realtor to do some comps on all of your properties and bring them down there to the Real Estate Valuation Office. Facts don't lie.

And those of you who are selling, get on down there and get those tax assessed values back up. They hurt you pretty bad by knocking your values down. They got me good on 2 of mine that I'm trying to sell.

And throw a few bucks to your Realtor for helping you out. Contingent on success.... No worries, I have been told that they are willing to look at hard evidence of properties values and in the end will do the right thing.

Sooo, another money saving or making tip from REI....  It's real important for these tax assessed values to be accurate. They have over 40,000 houses in Roanoke City to look at and it's easy to make mistakes with that many properties.

Real Estate Investors of Virginia. Copyright 2009 All Rights Reserved