Real estate thread
- Thread starter Roosh
- Start date
That is an interesting way to describe how hostile Chicago is to small business. If I understand correctly, they reclassified his rental apartments from residential to commercial and that caused the massive spike.
My city has had the "lightning" tax adjustments in recent years, with big re-assessments right after the property sells or has a code-inspected upgrade of any kind. One guy built out a $2M home, somehow under the radar, but was paying taxes on the original assessment of a small 140k house that he bought decades ago. Somebody reported him and the whole neighborhood got re-assessed! Tax man cometh for thee.
My grandfather in the 1950s saved up for two years to buy a cottage on a 1/3 acre block 30km from the CBD all in cash.
Even up until the start of the 1980s, one could save up a 50% down deposit on a house in the outskirts of a major city. A lot of Italian migrants saved and brought along full suitcases of cash to buy newly built homes.
What is the attraction to the buyer of that loan if there's no more money to be made off it?
And why can't the mortgage company continue to make money off the points?
I think it's just the nature of the mortgage business that local lending companies originate new mortgages, then sell them.
I think the mortgage originators prefer to sell the mortgages to free up their capital. As for the mortgage buyers, once a mortgage is created, it is like a bond, a long term interest paying security that can be bundled with other mortgages to form a vast pool of capital paying a modest but steady interest rate.
I have never used a local mortgage company to originate/shop for a loan for me (only banks I already use). Once, I used Quicken loans. They were in fact quick, to close the deal, but I found out later I was paying about 1.5% higher than necessary. That cost me several $K before I refinanced.
Have you guys used local, mom&pop originators? Do you think they were good to you?
Have you guys used local, mom&pop originators? Do you think they were good to you?
I think it varies by state, based on the local regulations. Even with Quicken Loans, I would not be surprised if they sold it. When I've had new mortgages after a house purchase, or have refinanced, I usually had an initial payment book that I received at closing, and then about two months later, I got a letter saying the mortgage was sold, and I would now pay such and such company. It's been Wells Fargo every time but the most recent. My current mortgage was sold to Chase bank.
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I overlooked your question if the Mom & Pop originator was good to me. I would say they were very good, anxious to be helpful and come up with a solution that fit my circumstances. The company I used to buy my current property was recommended to me by my realtor, and then I used them again for the refi. This kind of repeat business is exactly what they shoot for, so they make every effort to please.
Try to find a local credit union or small bank. They have better service and tend not to resell their loans.
If you have to pay property taxes, period, you don't own that property. Also, if you convert property taxes into time spent acquiring that money, people are working in excess of 100 hours a year just for the right to live in the house that they own, which really highlights the crime going on here. But on a more fundamental level we actually do not own anything. Everything in “our” possession is loaned from God.
The feudal system never ended. They just rebranded it "property taxes".
I think we are living in full blown Bolshevism.
The moment you have to pay for the things you own. Then you don't own a thing.
Like a vacuum cleaner the state is slowly sucking up all the assets and land.
The Real Lender on Your Mortgage Could Be the Federal Reserve
The Fed is scarfing up a large share of all newly issued mortgage-backed securities.
www.bloomberg.com
In Europe also many states are co-financing mortgages for people making them the owner of many properties.
This state is getting way way to powerful. Literally no-one has effective power anymore vs the state
No citizen, no trade union, no small business, no big business, no church.
We are now in a phase that people are not even daring to criticize this state expansion anymore. As so many are dependent on it. Criticizing the megastate means you're right wing and a nazi nowadays.
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You can get your properties off the tax roll, but you have to fight for it.
The entire system runs on assumptions surrounded by legalese.
The county/state/municipality assumes your property is taxable, so they add it to their ad valorum tax roll when you purchase the property. The system keeps on rolling because no one ever questions/fights it.
If you're not running a business on your property, it is not taxable according to their own code (you'll need to find all the definitions in the state's code).
According to their own code, they require (state code is based on federal code):
1. A return filed (by you) on the property that was used to ascertain the amount of the assessment.
2. A signed assessment for your property.
They will not have either of these documents. If they do, they are falsified since you never filed a return on your property and you never let an assessor on your property.
You'll send them a few notices/letters, which they will ignore or give you standard BS responses, then you will need to take them to court.
They have obfuscated so much of the law that no one bothers fighting anymore and they just roll over.
I don't think this is true. This sounds like sovereign individual kind of stuff, where you announce that they have no authority over you and you won't pay taxes, then the police come and put you in jail. Then you sit in jail saying they can't put you in jail, when it's self evident they can and did.
In what way is this different? I don't think it's a reality at all that you can take them to court and force them to accept that your property will be off the tax rolls. I think if you don't pay your property taxes, they will seize the property by force and sell it at the tax auction.
It's not sovereign citizen stuff. It's just reading the code they claim to be following and making sure they are following it. 99.99% of the time they are running on assumptions and add your property to the tax roll when you register your deed.
I didn't say don't pay the taxes if you're on the tax roll.
You need to get your property removed from the county/municipal ad valorum tax roll so there will be no tax bill. It took me 2 years to get 1 off, and that's just a random piece of land. Still working on my personal residence.
All you're asking from them is the documentation required according to the tax code to put a property on the tax roll.
You are simply following their own code and making them follow it. Sometimes you need to sue them or file criminal complaints in order for them to follow their own code.
Find your local tax code and read it! I can almost guarantee your property does not meet their requirements to be taxable.
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Given we're stuck against our will in this ungodly monetary system, I'd rather be in the second scenario. Tax writeoffs on higher interest will be higher. Also you can refinance your interest rate but you can never go back and change what you paid for the house.
Can you share more details? How much were the taxes, how long have you gone without paying them? Why do you have/need/want a random piece of land?
Why aren't tax attorneys making businesses around this? If you could get out of property taxes, everyone would want in on the strategy, fast.
Taxes were only $1000 a year. It's a piece of land in western US I bought on a whim that I can camp on. This upcoming year will be year 2.
It's cheaper to pay the taxes than to hire an attorney for the amount of time it takes plus retainer for all the petty bs the county/municipality will constantly do to you. Bar member shysters set up the system in the first place. An attorney who files criminal complaints against judges/their own club will be attacked. They start fighting this and their whole illusory system they set up to arbitrarily apply all code to regular people collapses. It's their livelihood they would be fighting.
If you're actually interested in learning more, learn the basics of fighting for yourself first, including litigation, drafting motions/complaints/etc. Very useful for traffic cases as well (https://www.howtowinincourt.com). Having a searchable copy of american jurisprudence is essential for research. Next look up steve emmerson. There are more people actively fighting this in this telegram group as well (https://t.me/AlphonseFaggiolo).
I pay ~$400/month for one of my properties and ~$200/month for the other.
Mine both cash flow as rentals in different ways, so both require local licensing. It sounds like that might conflict with the Steve Emerson strategy video. I also claim depreciation, expenses from rentals, etc.
But, I don't intend to rent my primary residence out forever, hopefully starting a family in the next few years. That'd be a great time to be free from property tax.
The whole repeated-taxation scheme is brutal. Taxed on my income, taxed on my property. Then a 6% short-term rental tax. Then of course the remainder of the short-term income becomes part of my regular income, so is also subject to income tax. Once you start gaining assets and significant income, taxes become your primary obstacle.
Either way, fascinating topic, and thank you for bringing it up!!
Yes, those property taxes are unfortunately legitimate since they are income properties which would fall under the code.
Income tax is last on my list. Very difficult and you'll be dealing with the biggest shysters of all, the IRS. Plus, I'm still on W2 income, so no way around filing a 1040.
Do you house hack on your primary?