Political Influence: The Right (and Wron...

politics As I am waiting for the responses from my initial round of meetings on Capitol Hill in January (you can review past articles to see the progress the Distressed Property Coalition has already made in 2013), I thought I would take an opportunity to address an issue that comes up quite often: the merits of online petitions as a means of influencing lawmakers and national policy.

Full disclosure, I started working in D.C. a month after graduating from Johns Hopkins back in 1995, and the majority of those years I have worked as a lobbyist or some form of consultant for hedge funds, investment banks, and of course real estate interests and Real Estate Mogul.

So one could conclude that it is in my interest to dismiss any other forms of advocacy other than direct lobbyist. And they would be correct. However, I also have history on my side.

The Way It’s Always Been Done

For decades, investors have primarily lobbied via petitions, canned letters to politicians, and the like.

I heard one story about an investor group trying to deliver a bunch of letters directly to Congressional offices. The obstacle they faced was that the letters were sealed. Anyone who visits Congress as often as I do knows that you can’t even enter with a bunch of sealed envelopes (remember the anthrax attacks?).

These campaigns resulted in very little if any tangible progress.

I am not questioning the intentions, but results speak for themselves, and the results generated by these efforts are blatantly silent.

By contrast, DPC’s first two years of direct lobbying resulted in a complete overhaul of the short sale transaction and significant reforms that created stability and certainty for investors.

The Petition Illusion

I understand the appeal of the online petition. They pile up numbers of signatories, they are quick to fill out, they are free, and they are immediate in the sense that your voice is allegedly being heard immediately by lawmakers.

But allow me to address why everything that makes them appealing is actually a weakness.

The fact of the matter is, while these online petitions may generate thousands of signers, the numbers tend to mean very little to a politician.

First, are they registered voters? If one has a lobbyist and clients, the lobbyist can convey specific information about registered voters supporting the effort.
Second, are they fake? There is no doubt many of these online petitions are smoke and mirrors and contain names of people who do not exist. There is a term for this in D.C. – it is called “Astroturf” (rather than “grassroots”) lobbying.
Third, are they being specific enough? These petitions are quick to complete and their messages are often quite concise, but also notoriously unspecific. I saw one recently asking people to sign a petition to make sure that Fannie and Freddie act “responsibly.” But, what does that even really mean? Would it be responsible to pay back taxpayers and shut their doors? Would it be responsible to expand their scope and help more people own homes?

The Power of Having a Seat at the Table

political ecard My point is simple: a petition is not a plan.

A direct lobbyist can provide lawmakers a path to how things should be, rather than a complaint about how things are. This is my chief aim and purpose as Real Estate Mogul’s direct lobbyist.

These online petitions cost no money to complete. But as the saying goes, you get what you pay for.

Finally, as for whether politicians listen to online petitions, I find myself in a difficult position to respond.

There is no chance a politician will ever openly say that they don’t matter – that would be crazy. But as someone who has worked Capitol Hill for 15 years, I do know that without a direct lobbying component, these petitions alone provide no real guidance for policy makers. While they provide the appearance of influence, their actual impact is minimal unless in concert with a broader campaign.

Perhaps my biggest issue with these petitions is that they leave people with the feeling that they have “done their part”. Again, this is not an insult but rather an issue of political reality.

There are no short cuts in my line of work, no easy fixes. Campaigns ebb and flow, sometimes everything looks great, and sometimes goals seem hopeless. If someone wants to make a real difference, really be in the arena, it takes more than taking five minutes to sign a petition.

It takes having some skin in the game, that earns you a legitimate seat at the table. That's what the Realtors do (NAR has a poweful lobbying presence). But their interests aren't always in light with those of the real estate investment community. And that's where I come in.

Obviously, as Real Estate Mogul’s direct lobbyist, I’m working tirelessly, passionately and effectively on your behalf and on behalf of the entire real estate investing industry. I’m your “dog in the fight” – it’s what I do.

I also think DPC’s Membership is an exceptional way for investors to make a real difference. You get educated and keep informed on a tactical level, you have some skin in the game in terms of a modest monthly payment, and you know you have an advocate on the ground in DC with a proven track record.

Outside of DPC, here’s the best advice I can give if you really want your voice heard.

First, find out who your representative in Congress is at www.House.gov and submit your zip code on the site.

Second, write a personal, handwritten letter to the office. I know how stunning that may seem, but it will distinguish you from the litany of “Astroturf” moving through their email accounts and faxes every day.

Finally, once you address your concerns, politely ask for a direct response to your concerns. My guess is that you will get one, rather than a form letter from the office.