that day, plus one more. In most places across the country elected officials not only need the support of their “reliable base” voters, but also independents. If you can show them how their proposed legislation could really hurt them with the indepen- dent voter, they are far more likely to listen and make changes to their proposed law. NO. 5 Avoid “my way or the high- way” thinking. In some cases, the public out- cry is too strong to derail a piece of legislation, even if the legislation is wrong and harmful. Rather than storming out, it is better to point out the challenges of implementing a law (as drafted) and instead for the elected official to make changes that not only mitigate some of the fall out, but also might make it easier for the elected official to get it through. In the case of what happened in Mary- land there was no way the proposed protection of homeowners in fore- closure law was going to be stopped. Instead, our member worked closely with the legislator to make chang- es that do provide some protections for homeowners in distress, but still allow investors to participate as a buyer, provided investors follow state guidelines instituted by the law. Half a loaf is better than no loaf when you’re facing a public outcry that could have been a disaster for all. •
mittee writing the law, and about 30 being people who wanted to testify. All but one testifying in favor of the new law. Turns out, our member was the only one who showed up that day to advocate for investors. He made points that had not been considered, and most importantly, clearly demonstrated the negative impact to homeowners who, by the new law, could not sell their homes to investors. His testimony was so well thought out that the sponsor of the law sent his staff member over, asked for his contact information and then requested that our member meet with him to rewrite major sections of the law that did away with making it illegal for an investor to purchase the property and in the end, pre- served the rights of the homeowner to sell their home to whomever they pleased, even an investor. The member who went to testify that day is of course Bruce Norton, known as Dr. Pre-Foreclosure. He is one of the most sought-after inves- tors on the topic of foreclosure invest- ing and how to comply with state foreclosure laws designed to protect homeowners like the one in Mary- land. The elected official, Brian Frosh, is now the State’s Attorney for the State of Maryland. Although their pol- itics are as far as “East from West,” today they still maintain a friendship and open lines of communication. Five lessons learned from this case study: NO. 1 Stay informed and be ready to step up. While what happens at the federal level in Washington, D.C. rarely goes unnoticed, at the state and (especial- ly) local level there is far less scruti- ny over what is being drafted for new laws behind closed doors. As inves- tors we need to stay diligent at all
levels (local, state, and federal). Join your local and state associations and even more importantly, connect with local elected officials and tell them you want to know about anything that impacts real estate investors and landlords, no matter how (seem- ingly) minor. The best way to know what’s happening on the inside is to connect with insiders. NO. 2 Be friendly, especially if your politics do not align. Do not expect to be in political alignment with every elected official you interact with, including people who represent you and your busi- ness. Being friendly and respectful means that you can have your phone calls returned, even if “you didn’t vote for me.” NO. 3 Don’t be afraid to point out the harm the legislation will cause. In addition to being friendly and respectful, be prepared to clearly demonstrate how their proposed legislation will negatively impact the people in their district. Most elected officials are hype-focused on the people who put them in office, not their opposition. As a result, their early drafts of proposed laws can be myopic. By demonstrating the negative aspects of their proposed legislation, you help them see the side of an issue that was probably never discussed by their constituents or even their staff. NO. 4 Help elected officials from being embarrassed, especially in front of key constituents. If possible, meet privately to share why their proposed legislation could cause more harm than good, and how it could embarrass them, espe- cially with the increasingly key swing voters. To be elected to an office, a politician needs to get the votes of 50 percent of the people who voted
Sherman L. Ragland has decades of experience in the real estate investing industry. He earned his MBA from the Wharton School and isPrincipal Broker of Realinvestors® Real Estate Services, LLC. A FORBES® Real Estate Council Member andEXPY® Award Winner For “Broadcast Excellence,” Ragland is also a best-selling author and has been coined”America’s Real Estate Mentor” by Inc. Magazine.
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