Is Caffeine a gateway drug to Heroin? :)

6 Nov

It might be – if you’re a Realtor… right about now.

It’s me again… That “Corten Crusader on a Metal Mitzvah…” clad in several mils of oxidizing steel, seemingly “courting disaster… while courting your conscience.”

Try saying THAT three times fast… It’s harder than trying to choke down your Bubbeleh’s awful latke’s… without hurting her feelings!
(That’s “Grannie’s terrible pancakes” to you Gentiles out there!!) 😉

For the last 18 months, my family has been traveling down that rock-strewn road that will ultimately lead to finally having a safe, affordable, and sustainable home for our family.

Now, in our case, most of the rocks and pitfalls have come in the form of “authority,” as in… “NO! You can’t do that here, you idiot!”

It seems that ISBUs – Shipping Containers (and the use of alternative materials in general) is a topic vastly misunderstood in Mississippi.  This in a State pioneered by folks who built shelter with anything they could find.

I mean… there are houses within a few minutes driving distance of my home that have old billboards used for roofing material…

Admit it, you’ve seen all those “historic record” type movies… How ironic!

So, since I have no problem beating people to death with facts, I’ve taken up the banner and I’ve marched boldly into the fray (like Joan of Arc, but with far hairier legs), to get bloodied, so that you’ll have somebody to laugh at! 🙂

This blog is evidence of that on-going battle.

And while I’m demonstrating that these steel boxes can indeed become a part of your own affordable housing solution, I get bombarded with questions.

OY VEY! Do I get questions!

Now, admittedly… most of them are “mental health” questions and questions about the safety of my family – “whose ship is quite obviously being piloted by an idiot…” if I’m to believe what I read.

… but I have thick skin, and a delete button (which is just about worn out!), so…

Where was I? Oh yeah…

I keep getting asked;

“Ronin, why should I even consider building when houses are available, and money is cheap, now?”

Argh! Here we go again…

Okay… Look… It ain’t as good as you think… Housing slumped again, in September, and it’s looking grim for October, too…

You only have to examine all that data lurking behind the figures to see that “things are not good at all in Bedrock.”

The $8,000 “first-time homeowners” tax credit boosted sales numbers temporarily, but the “money cops” (the IRS)  are now saying that there were approximately 100,000 investigated cases of fraud:

Check out this article in the Wall Street Journal.

Later circulated reports have put that fraud number at closer to 200,000.

How long do you think it will be before those homes end up in foreclosure, the way things are going?? House prices haven’t stabilized. These are young folks with first homes. Who loses jobs first? Young folks not all that high up on the feed chain.

I’m afraid that once again… the idiots in Congress have demonstrated that they’ve learned nothing from the sub-prime mortgage crisis.

So what if the home buyer tax credit succeeded in (artificially) boosting demand. This led to an uptick in home prices which (with high unemployment and frozen lending markets) leads to that much less affordability going forward. That’s just brilliant!

And frankly, I find it ironic that politicians assail businesses for having a ‘short term, gotta get that quarterly profit’ view while those same politicians are just as guilty of such nearsighted vision! After all, they’re the ones passing bone-headed legislation for short term political gain… at the expense of long term recovery and prosperity. Duh!

Who’s the idiot NOW? Hmmmm? See? I’m not so dumb… I’m just “slow.” 🙂

Look, the “Cash for Houses” program (in other words, the “first timer” tax credit) is just another way of bailing out the banks. It really has nothing to do with soothing the ills of families across America. I’m not sure how many readers realize this.

“Cash for Housing” is nothing more that yet another attempt to artificially support housing prices so the banks don’t have to mark down the values of these “assets.” Hello?

But wait, there’s more…

Some of you email to tell me that in your neighborhoods… home prices are going up. Okay? But WHY are they going up?

Here’s why “some” of it happens:

The crooked bankers are at it again by “artificially inflating” demand and prices.

Here’s how they do it;

There are literally thousands of bank owned homes available for sale, that have been “held in inventory.”

Here’s the game (the way it was described to me);

* Bankers take the homes out onto the market one at a time.
* They lower the price until at least two buyers come in.
* After they get the offers… they go back and force the buyers to start bidding against each other.
* And if one buyer decides not to play, the second buyer basically bids against himself…

Those Jerks! But where did they learn it?

Well… some unscrupulous Real Estate agents have been doing it for decades!

It’s unethical, but it’s hardly “new.” It’s been going on since the beginnings of the Real Estate market.  Now, not all Realtors do this… Nuh – uh!  Mind you, it’s just the greedy ones!

(Now if know a Realtor like this, just email me his/her address. I’ll have one of my “minion” put a flaming paper bag full of  poop on their doorstep! It doesn’t matter what “market” they are in… cuz’ “I’m Everywhere!” Muwahahahah!)

That’s how “some” home prices are going up. There is the potential for an incredibly large home inventory on the market right now. But, how do you protect it, and keep it profitable? Well… bankers can inflate the home and their stock prices, so people are forced to pay more than the current market value.

But intelligent home buyers with at least enough brain cells to rub together (thus starting a fire) won’t fall for it, because they acted diligently, did a good market assessment, and then developed a buying plan from there. Anyone dumb enough to overpay for something because they think that somebody might be bidding against them is an idiot, and they deserve what they get. Says Me.

Will this activity help “inflate” a local market?

Yes. But, it’s not anyone’s fault but the buyers. The rubes…  Remember that old tune?

“LET THE BUYER BEWARE!”

(Let him/her be SMART… too.)

Here’s something else to think about, though;

Banks don’t have control over all of the houses out there that can be put up for sale, so there can’t possibly be a monopoly, right?

While the economy is in the crapper, there are still people with enough money to buy housing. Let’s face it, if you have the money and enough brain cells to start a fire… NOW is a really good time to spend it on real estate.

Evictions are still happening, and they’re just as likely to happen to people who still have jobs and money, whose homes are “under water” (a condition that occurs when a home is no longer worth the existing balance on the mortgage) – so they  just pack up and walk away.

There are plenty of facts to justify price increases during a recession even without any monopoly players – that’s simply Economics 101 (or maybe Economics 102… I forget which)… and it does add up.

But there’s another pair of icebergs looming in the water. They’re called “Alt-A & Commercial real estate.” These two pools are much bigger than the sub-prime market that is hemorrhaging now.

And… that wave of foreclosures is just beginning. Analysts are saying that those foreclosures won’t end until late 2012 or early 2013.

“But Ronin? What the heck is ‘Alt-A’ financing?”

Alternative-A (Alt-A) financing is basically loans for people who have better credit than subprime borrowers…  but their credit may not qualify them for the best loans and the lowest rates. Or, to put it simpler… Alt-A borrowers may have solid credit, but they may want financing which is more risky than conventional mortgages.

Why would anyone want “risks” at all, associated with their mortgage? The Nimrods… 🙂

But, soon… that tsunami will break on the shores of “broke and desperate beach” and…

… then I guarantee that all hell will break loose. If you think the market is bad now, just wait… Realtors and developers will be throwing themselves off the top of those skyscrapers, right and left…

realtors_leapMan, if they could just grab hold of a lawyer, or better yet… a politician…  before they jump off… then… um…er… never mind! Just kidding…. sorta… there aren’t enough hands to grasp enough politicians… mumble, mumble… 😉

Look, like anything else, you just have to use common sense, and think for yourself. That’s what marks the difference between a guy like Warren Buffet and that chump brother-in-law of yours, who consistently loses all his rent money.

Look, if you HAVE the money… I’m not saying that you shouldn’t buy real estate. Just use a reputable Realtor, understand that prices will continue falling, and negotiate  your purchase accordingly.

However… if you don’t have money, or you’re trying to get a loan to buy a house, you may have a tough road to hoe.

And then… what we are doing with these ISBUs may look like a really good idea.

It’s all up to you… Your Mileage May Vary.

Stay tuned.

The Renaissance RoninOkay Clark… Lemme have it… 🙂

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One Response to “Is Caffeine a gateway drug to Heroin? :)”

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