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Path: utzoo!linus!philabs!cmcl2!lanl!unm-la!unmvax!nmtvax!wildstar
From: wildstar@nmtvax.UUCP
Newsgroups: net.invest
Subject: Re: Re: M-L CMA info request
Message-ID: <865@nmtvax.UUCP>
Date: Tue, 12-Nov-85 16:06:24 EST
Article-I.D.: nmtvax.865
Posted: Tue Nov 12 16:06:24 1985
Date-Received: Sun, 17-Nov-85 06:38:44 EST
References: <1723@akgua.UUCP> <109000007@ima.UUCP> <178@cadsys.UUCP> <>
Reply-To: wildstar@nmtvax.UUCP (Andrew Fine)
Organization: New Mexico Tech, Socorro
Lines: 31
Summary: 


     I have a question concerning the various television and newspaper 
ads ( i.e. "Special Report" at midnight on Ch 7 Albuquerque would be
a good example ) about investment methods that manipulate mortgages and
other real-estate vehicles by buying with "other people's money".  I have
questions about the legality of the procedure.

1) Does it violate Security Exchange Commission laws because of the
required leverages involved?

2) Has the IRS condemned the method as an abusive tax shelter, or as
abusing tax loopholes?

3) Does it violate various laws on mortgages, such as Fannie Mae regulations
on what you can and can't do with FNMAE's?

4) If it is not already illegal by the above or any other criterion, I have
heard that Congress is about to drop a 40 ton axe on it anyway because of
fairness issues involved. Is that rumor true?

5) Does the Alternative Minimum Tax render the method ineffective by taxing
profits no matter where the source?

I and probably many other would like to see this "nothing down" craze laid
to rest one way or the other. If I am allowed to use it, fine, but otherwise
I want to know how much of a scam it really is.

Thank you.

Andrew Jonathan Fine