From the bible, several histories have taugh me how to handle property, money and life. The book of LEVITICUS even describes what you should and should NOT eat, or do... I think Finances is not just about money, but the administration of your TIME...
Therefore, on top of having that book as a guide, I ask my grandmother how to live with NOTHING, after all, she managed to have 25 kids, not go insane, survive the deaths of some of them, raise them well (they all fight and look like a reality show) but none would steal, or kill or something mayor that may involve jail or something, and the best/worst part is... SHE WAS A COMMON PEASANT MOST OF HER LIFE, with absolutely NO MONEY, and my grandpa even had to go hunting once a month to eat a WHOLE animal... I cannot imagine being nine or ten years old, living in a small house with more than 12 people in 4 bedrooms...
If she managed, and she is still alive and kicking, we all can... The point is, everyone helped, she teached her skills to everyone from the eldest to the youngest, and they all included TIME managment and PREVENTION... They grow some fruit trees, and they all learned how to improvise and do the best, with whatever they got, and my grandma at some point decided to study to become a teacher, and she managed that as well!!!! Which is what I want to do now... Only I am 29 and I do not want children, yet...
Our brains are the best tool we have to manage our finance, our life and our time, if we can slow down to determine what game are we playing, where is the ball, and while we are at it, keep the eyes on the ball at all times...
I once even heard the story of how my AUNT, which was a teen at the time, delivered my uncle in their own house because they did not have a car, and the hospital was too far away (there were no phones available whatsoever)... Again, our brains and keeping a common goal is key for success... If you have people who would not participate or who would create more problems and expenses, then, you are all gonna fail... COMMUNICATION AND ORDER (i think ORDER is more important) IS KEY. MY GRANDMA TAUGH ME THAT. Not only that, I think if you are lucky and have an elder member of the family, I am sure they will show you how to live SIMPLER, because thay probably do not even know how YOU can be SO COMPLICATED... Do you even have that answer?
If you hadn't noticed, we're in the middle of the biggest housing crisis in the last 60 years. A good percentage of those who own homes are seriously underwater - owe more on the house than its worth. NO ONE is flipping houses in a few weeks!!! NO ONE.
One thing will stop the crisis: foreclosure. Sure it's painful but what you're doing is exchanging those owners who can't afford the house with those who can afford the house. With foreclosure, the natural market bottom of the market is quickly achieved and we can go forward.
All these cockamamie ideas hatched by our government are prolonging and deepening the crisis. But because we are a nation of financial illiterates ruled by financial illiterates, the problem will fester for years.
Has anyone noticed that the FDIC, the federal department insuring your bank deposits, is now out of money? That should really worry you.
This wouldn't work for a lot of reasons, especially with one company assuming all the risk. Like you said, it's the LARGEST person most people make in their lives which means your're dealing with larger amounts of money and risk. Now, let's say there are two seperate entities involved. One company who builds, one who flips. You could get those brother's in Texas they show on TV to do the flipping.
Thank you so much. I am only solvent in DA 58 days today after many relapses,excuses. It is hard. I have to cut up my remaining card. I am afraid. Today - I am not using it.
I also am not of fan of how some food tastes after being cooked, then frozen and then prepared again. I will do odds and ends of beef or chicken to be added to soups. I also will thinly slice leftover roast beef and freeze it. I use that with some nice aujus and hardrolls.
My family are big fans of anything italian! Every fall I can sauce; usually 40 quarts. This amount feeds us for close to a year, and I share with friends. The recipe I use is from an old Italian friend of the family. It must cook for a minimum of 6 hours. Now, I tried freezing it one year. What a waste of some awesome sauce that was. It becomes watery upon defrosting. It might take longer to can it, but with a good sized canner, I can do 7 quarts at a time, but that time invested canning the sauce versus freezing it is so worth it. Again, the one time I did freeze it both family and friends asked if I did something different to the sauce----they said this not in a good way!
I live in Alabama and I recently lost my job due to the economy, I have been there for 4 1/2 years. My boss is a great person and during the time he asked me to find a job to help me out, well I did thru a staffing service, I worked the job about 3-4 weeks and there was some racial statements made and the boss was very unprofessional and I told the staffing service about this and they said they have had the same complaints before, so they told me not to go back. I filed for my unemployemnt and I haven't heard anything yet, does anyone know how long this takes and if I might even qualify?
Why do that to my skin? Like a person would do that on purpose...I was outside for 2 hours with a 65 sunblock on and burnt to a crisp...sometimes things happen that you don't plan maybe if you have nothing helpfl to say you shouldn't say anything at all!
The issue is who you are moving the work to... the "dealer". Homes are expensive, immobile, un-recycleable, and complicated legally and financially. you assume that a builder could sell a house in weeks and not spend 10% of the homes value in transaction/ marketing costs. The other part is the risk for foreclosure, if you are upside down and already need a new house that is risky behavior. Are you sure you can afford an even larger payment? If foreclosure is needed will they be able to recoup after the next sale? Inspections, appraisals, repairs, insurance, taxes, titles, deeds, home owners associations, maintenance, and that doesn't get into actually reselling the property. I don't know any bank that is going to give you a decent rate on a -10% to -20% equity loan. If it was profitable I'm pretty sure someone would be doing it.
If I am a builder, the last thing I want is to take out more debt, and then be stuck with properties for an unknown period of time. I am sure that people will choose to trade in houses in places where the market is not hot, and would otherwise take months to move the house. It is a great idea, but in reality it would be a rather poor business practice. I personally would not buy stock in any publicly traded company doing something like this. Simply put, too much risk.
Keep in mind that not every home is "flippable." Besides the cost buying back the old house, you would also have to pay for an inspection, legal fees for the ownership change, insurance, utility bills, plus realtor fees once it came time to sell the property.
Not to mention the risk associated with real estate. Cars are much less risky and dealers don't always make a profit on trade-ins anyway.
Dollar for dollar, it is probably more effective for the builder to do what he does best: build homes.
Not sure that it would work. Who then would take the old home. Would this not just put a new glut of homes on the market if people could easily trade in? I think we have to work through inventory first, then talk about trading up. With cars, you can send them to scrap heap - not so with homes.
The amount of risk and overhead associated with such a venture is the brick wall. In addition automobiles are far more "liquid" in the sense that they can be moved to different markets or easily sold as scrap, if necessary, with little expense to the dealer. Apples to oranges here people. Why can't I trade in my brown bag lunch at Mcdonald's for a Big Mac and fries.
I very recently confronted my *actual* debt situation. And it was painful. So painful, I had to do it in stages. Tally-ing up *all* of the credit card debt was the first part. Then, a month after adjusting to the reality of my credit card debt, I confronted the student loan debt. It is now all in a spreadsheet titled, "The Big Picture" and includes the good parts (my growing savings account!) and the bad parts (my debt). But at least I know where I stand. Now I'm figuring out how to turn things around. For me, knowing is better, even though it was startling to admit to myself just how irresponsible my spending has been. Now, I'm more in control and have the beginnings of a plan.
I look forward to reading this series as I tackle my own debt issues.
This is an interesting concept, but the reality is... there is nothing stopping a builder from doing this right now.
The problem is new home builders (especially the smaller ones) are just as limited in their financing as the average home builder.
Essentially, the builder would need the credit to sustain two mortgages for each house they intend to build (not to mention the risk tolerance).
If the builder was in the process of building 3 homes, he would have 6 mortgages to worry about. The prospective buyer might come across hard times and need to declare bankruptcy, etc...
That would be a lot of risk.
On the other hand, this business model might be attractive to a larger builder who could offord to carry these loans on their own...assuming they wanted to take a risk on the home, when the market is already FLOODED with units for sale....
I will almost certainly not be the only person to mention his name, but it was stumbling across The Simple Dollar that first interested me in the lifestyle and culture of frugality. I am lucky in that I have no debt, but I can't take much credit for that. A combination of scholarships and my parents saw me through college. The time I spent reading The Simple Dollar has almost completely formed my attitude towards money - namely, one of respect. I appreciate Trent's thoughtful, philosophic, and kind attitude towards both money and life. He is an absolute role model.
From the bible, several histories have taugh me how to handle property, money and life. The book of LEVITICUS even describes what you should and should NOT eat, or do... I think Finances is not just about money, but the administration of your TIME...
Therefore, on top of having that book as a guide, I ask my grandmother how to live with NOTHING, after all, she managed to have 25 kids, not go insane, survive the deaths of some of them, raise them well (they all fight and look like a reality show) but none would steal, or kill or something mayor that may involve jail or something, and the best/worst part is... SHE WAS A COMMON PEASANT MOST OF HER LIFE, with absolutely NO MONEY, and my grandpa even had to go hunting once a month to eat a WHOLE animal... I cannot imagine being nine or ten years old, living in a small house with more than 12 people in 4 bedrooms...
If she managed, and she is still alive and kicking, we all can... The point is, everyone helped, she teached her skills to everyone from the eldest to the youngest, and they all included TIME managment and PREVENTION... They grow some fruit trees, and they all learned how to improvise and do the best, with whatever they got, and my grandma at some point decided to study to become a teacher, and she managed that as well!!!! Which is what I want to do now... Only I am 29 and I do not want children, yet...
Our brains are the best tool we have to manage our finance, our life and our time, if we can slow down to determine what game are we playing, where is the ball, and while we are at it, keep the eyes on the ball at all times...
I once even heard the story of how my AUNT, which was a teen at the time, delivered my uncle in their own house because they did not have a car, and the hospital was too far away (there were no phones available whatsoever)... Again, our brains and keeping a common goal is key for success... If you have people who would not participate or who would create more problems and expenses, then, you are all gonna fail... COMMUNICATION AND ORDER (i think ORDER is more important) IS KEY. MY GRANDMA TAUGH ME THAT. Not only that, I think if you are lucky and have an elder member of the family, I am sure they will show you how to live SIMPLER, because thay probably do not even know how YOU can be SO COMPLICATED... Do you even have that answer?
If you hadn't noticed, we're in the middle of the biggest housing crisis in the last 60 years. A good percentage of those who own homes are seriously underwater - owe more on the house than its worth. NO ONE is flipping houses in a few weeks!!! NO ONE.
One thing will stop the crisis: foreclosure. Sure it's painful but what you're doing is exchanging those owners who can't afford the house with those who can afford the house. With foreclosure, the natural market bottom of the market is quickly achieved and we can go forward.
All these cockamamie ideas hatched by our government are prolonging and deepening the crisis. But because we are a nation of financial illiterates ruled by financial illiterates, the problem will fester for years.
Has anyone noticed that the FDIC, the federal department insuring your bank deposits, is now out of money? That should really worry you.
Green shoots, my ass.
This wouldn't work for a lot of reasons, especially with one company assuming all the risk. Like you said, it's the LARGEST person most people make in their lives which means your're dealing with larger amounts of money and risk. Now, let's say there are two seperate entities involved. One company who builds, one who flips. You could get those brother's in Texas they show on TV to do the flipping.
Thank you so much. I am only solvent in DA 58 days today after many relapses,excuses. It is hard. I have to cut up my remaining card. I am afraid. Today - I am not using it.
I also am not of fan of how some food tastes after being cooked, then frozen and then prepared again. I will do odds and ends of beef or chicken to be added to soups. I also will thinly slice leftover roast beef and freeze it. I use that with some nice aujus and hardrolls.
My family are big fans of anything italian! Every fall I can sauce; usually 40 quarts. This amount feeds us for close to a year, and I share with friends. The recipe I use is from an old Italian friend of the family. It must cook for a minimum of 6 hours. Now, I tried freezing it one year. What a waste of some awesome sauce that was. It becomes watery upon defrosting. It might take longer to can it, but with a good sized canner, I can do 7 quarts at a time, but that time invested canning the sauce versus freezing it is so worth it. Again, the one time I did freeze it both family and friends asked if I did something different to the sauce----they said this not in a good way!
Jonathan at http://www.mymoneyblog.com/
I live in Alabama and I recently lost my job due to the economy, I have been there for 4 1/2 years. My boss is a great person and during the time he asked me to find a job to help me out, well I did thru a staffing service, I worked the job about 3-4 weeks and there was some racial statements made and the boss was very unprofessional and I told the staffing service about this and they said they have had the same complaints before, so they told me not to go back. I filed for my unemployemnt and I haven't heard anything yet, does anyone know how long this takes and if I might even qualify?
Standardized pricing. Used cars have standard blue book values to start from. Houses have way more factors that go into their price.
Why do that to my skin? Like a person would do that on purpose...I was outside for 2 hours with a 65 sunblock on and burnt to a crisp...sometimes things happen that you don't plan maybe if you have nothing helpfl to say you shouldn't say anything at all!
The issue is who you are moving the work to... the "dealer". Homes are expensive, immobile, un-recycleable, and complicated legally and financially. you assume that a builder could sell a house in weeks and not spend 10% of the homes value in transaction/ marketing costs. The other part is the risk for foreclosure, if you are upside down and already need a new house that is risky behavior. Are you sure you can afford an even larger payment? If foreclosure is needed will they be able to recoup after the next sale? Inspections, appraisals, repairs, insurance, taxes, titles, deeds, home owners associations, maintenance, and that doesn't get into actually reselling the property. I don't know any bank that is going to give you a decent rate on a -10% to -20% equity loan. If it was profitable I'm pretty sure someone would be doing it.
If I am a builder, the last thing I want is to take out more debt, and then be stuck with properties for an unknown period of time. I am sure that people will choose to trade in houses in places where the market is not hot, and would otherwise take months to move the house. It is a great idea, but in reality it would be a rather poor business practice. I personally would not buy stock in any publicly traded company doing something like this. Simply put, too much risk.
Sign me up! I would love to get out of my house since I ca't get it sold after over a year on the market.
This plan sucks for the builder, great for the buyer. Would never work.
Keep in mind that not every home is "flippable." Besides the cost buying back the old house, you would also have to pay for an inspection, legal fees for the ownership change, insurance, utility bills, plus realtor fees once it came time to sell the property.
Not to mention the risk associated with real estate. Cars are much less risky and dealers don't always make a profit on trade-ins anyway.
Dollar for dollar, it is probably more effective for the builder to do what he does best: build homes.
Not sure that it would work. Who then would take the old home. Would this not just put a new glut of homes on the market if people could easily trade in? I think we have to work through inventory first, then talk about trading up. With cars, you can send them to scrap heap - not so with homes.
The amount of risk and overhead associated with such a venture is the brick wall. In addition automobiles are far more "liquid" in the sense that they can be moved to different markets or easily sold as scrap, if necessary, with little expense to the dealer. Apples to oranges here people. Why can't I trade in my brown bag lunch at Mcdonald's for a Big Mac and fries.
Enjoyed the post. Tiny Tim should have made the cut!
Like anything else. Once you can admit to yourself you have an issue, you will be able to begin fixing it, especially with debt.
Well done Adam! I shared a similar experience when my first daughter was born!
Thankfully I my family and I have been very diligent in our efforts to pay off our debt and we are now debt free (except for the mortgage).
Following a few simple debt reduction techniques we were able to pay off over $90,000 of consumer debt!
It wasn't easy, but believe me! It was one of the best things that my family and I ever did!
Good luck to you and yours and you are absolutely right! Admit that you have a debt problem is a bold first step!
I would have to say JD Roth at GetRichSlowly
I very recently confronted my *actual* debt situation. And it was painful. So painful, I had to do it in stages. Tally-ing up *all* of the credit card debt was the first part. Then, a month after adjusting to the reality of my credit card debt, I confronted the student loan debt. It is now all in a spreadsheet titled, "The Big Picture" and includes the good parts (my growing savings account!) and the bad parts (my debt). But at least I know where I stand. Now I'm figuring out how to turn things around. For me, knowing is better, even though it was startling to admit to myself just how irresponsible my spending has been. Now, I'm more in control and have the beginnings of a plan.
I look forward to reading this series as I tackle my own debt issues.
This is an interesting concept, but the reality is... there is nothing stopping a builder from doing this right now.
The problem is new home builders (especially the smaller ones) are just as limited in their financing as the average home builder.
Essentially, the builder would need the credit to sustain two mortgages for each house they intend to build (not to mention the risk tolerance).
If the builder was in the process of building 3 homes, he would have 6 mortgages to worry about. The prospective buyer might come across hard times and need to declare bankruptcy, etc...
That would be a lot of risk.
On the other hand, this business model might be attractive to a larger builder who could offord to carry these loans on their own...assuming they wanted to take a risk on the home, when the market is already FLOODED with units for sale....
I will almost certainly not be the only person to mention his name, but it was stumbling across The Simple Dollar that first interested me in the lifestyle and culture of frugality. I am lucky in that I have no debt, but I can't take much credit for that. A combination of scholarships and my parents saw me through college. The time I spent reading The Simple Dollar has almost completely formed my attitude towards money - namely, one of respect. I appreciate Trent's thoughtful, philosophic, and kind attitude towards both money and life. He is an absolute role model.
for a few weeks, while they flip the home. Seems like a small price to pay, and it could be done easily.
My favorites are jd at getrichslowly.org, trent at thesimpledollar.com, sharon at frugalduchess.com, the freemoneyfinance.com guy.
For what it's worth, I always check Get Rich Slowly first.