REI & Uncle Sam: Are We Sinking Or Swimm...

uncle sam Anyone who reads the newspaper, online news, blogs, or simply sticks their head out the window realizes that these are difficult times in Washington.

Arguments over the budget, taxes, spending, guns, healthcare, and entitlement reform dominate and will continue to dominate the headlines for the foreseeable future.

This reality begs the question: How can investors expect to be heard in the current political climate?

As the Washington lobbyist for the leaders in the residential real estate market, it’s my job to see that the voices of real estate investors are not drowned out amid the sound and fury of modern American politics.

What I am about to share is not about whether lobbying works – that question was decidedly answered during our first two years working on Capitol Hill, during which time we amassed a series of noteworthy victories and shaped national housing policy more effectively than any other group in Washington.

Rather, as the year closes and we look toward the future, I wanted to take this opportunity to explain how we do what we do, and why it is so important.

While many of the aforementioned issues capture national headlines, other policy work continues in the corridors of Congress. Recently our organization, the Distressed Property Coalition, met with a top Congressional leader and outlined our policy agenda for 2013.

Starting in January, I will hold no less than 50 meetings on Capitol Hill to further this agenda.

A Proven, Three-Part Strategy

Garnering attention, and ultimately action, of lawmakers and federal agencies is always difficult regardless of the political climate. Fortunately, DPC has mastered the strategy to accomplish our goals regardless of which party is in charge or what issues they are fighting about.

Our strategy is actually comprised of three distinct and essential components:

Philosophy
Substance
Execution

Our philosophy at DPC recognizes private businesses as the engine of the American economy, embraces private market solutions to an economic crisis, and rejects the notion that taxpayers should pay for governmental and private industry failures.

We recognize home rehabbers as the true front line defense against the disintegration of our communities, investors as the risk-takers fueling the housing market and its recovery, and true educators as the minds who will provide these creators with the tools they need to grow their business and create jobs.

During my meetings on Capitol Hill, I present my clients in the context of this philosophy. The substance of our arguments is consistent with our philosophy.

DPC spends months meeting with clients and seeking input from newsletter subscribers to identify any and all obstacles curtailing investor profit and growth. These policies are placed into a comprehensive white paper, and I personally present the paper to members of Congress and staff. Our specific legislative and regulatory recommendations are designed to liberate our community from those seeking to interfere with our growth in furtherance of their own agenda.

Even with a sound philosophy and a litany of substantive policy recommendations, no effort can succeed without sound execution. In the lobbying world, sound execution combines creating a working relationship with lawmakers and regulators to convince them that the policy recommendations will work, and providing them with sound political arguments they can take to their constituents to explain why they support our agenda.

An Example of How It’s Done

DPC’s support and ultimate execution in creating a national standard policy on short sale transactions provides an example of our strategy.

In taking on Fannie and Freddie, we boxed them in philosophically as institutions solely dependent on taxpayer largess. I argued vehemently that by taking taxpayer money, they forfeited their standing to dictate national housing policy. In short, failed institutions have no right to tell investors how to run their business, and furthermore try to engage in a taxpayer-funded campaign to convince the press that investors were committing rampant fraud.

Our policy recommendations were designed to liberate those in the short sale industry from Fannie and Freddie. And through proper execution DPC received relief on short sale response time, valuations, flipping restrictions, and anti-fraud oversight of investors.

Eyes Ahead

As DPC heads into 2013, we feel that despite the headlines proclaiming gridlock and the conventional wisdom that nothing ever gets done in Washington, our policy objectives will continue to move forward.

We are actively working on:

Improvements to the short sale program
Creating a better environment to prosper in the REO market
Pushing for fewer flipping restrictions

…and a myriad of other policy objectives that will allow investors to make money.

If the philosophy outlined in this article reflects your beliefs, than we are proud to be partners with you, and DPC is your home. The leaders in the residential real estate arena fund this effort because not doing so is equivalent to consent.