Getting Our House in Order

                                            A picture of how the Federal Government works




                                          We Have a Problem Houston

      America is in deep doo-doo.  Is their a way out of it? Yes there is.  It requires getting our house in order.  The first thing that requires is acknowledging we have a house and with that comes the reponsibility to keep it liveable.  If you buy or have a house it is not enough to just make the payment and pay the taxes.  You have to maintain it.  If you do not, buy the time you pay it off it will not be liveable.  That is not a problem if you are hoarding your money and have some other place to go which is better.  However when there is no other place to go and you are broke with a falling down house you have a problem.  Especially if you are in debt up to your eyeballs. Having creditors creates a problem.  You have to make a dollar to pay them, but then you still have to make another dollar to actually live on.  You can live on the borrowed money and put off facing the problem, but sooner or later you do not have enough money to make ends meet.  That is the predictament America is in today.  We are accumulating debt at the rate of 1.2 Billion dollars a day.

     Debt is something I definitely know about.  Four times in my life I was in a situation where my debts exceeded my income.  Only once did it become a problem I could not handle.  Bankruptcy really sucks, especially when you are playing the game by the rules.   Playing by the rules does not matter when forces you have no control over take away your means of making a living.  When that happens it is twice as hard to deal with.  The movers and shakers that make things happen screw up. When they do the consequences fall on the average individual.   Mr. Joe Average contends he had nothing to do with creating the problem he is facing.  However that is not totally true.  If he did not vote or did not actively express his views through the political process he is partially at fault.  The fact that America is in debt to the tune of around $40, 000 for every man, woman and child in America did not just  happen overnight.  Mr. Joe Average's indifference allowed the system to get in the condition it is in.

      The only way it is going to get better is when all the Joe Averages's get together and realize the status quo is not working.  America needs a third party that is focused on solving the problems facing America.  A party that demands government runs the same way the Average American has to live.  That is within their means.  That demands government follows the Constitution.  That demands the government does not mess with programs that every American pays into.  The first priority is protecting our country and military payroll, including pensions should be the first payroll paid.  Next should be those who have already paid their dues by supporting the system till they retired.  If we need to fix that system and make it more solvent so be it, but it is not part of the budget money.  Third comes the people on disability.  After these are taken care of the government can spend the rest of its funds as it sees fit.
 
   The medical system needs repaired also.  Every citizen should be entitled to health care.  It should not just be 80% of the bill either.  It should pay all of the bill.  As I approach 65 (I will be 72 this year)and daily recieve junk mail from all the companies who want to insure me for that 20% not paid I realized something.  Insurance companies are definitely part of the problem.  We need to modify the system so Doctors, Nurses and Hospitals do not need malpractice insurance.  Exempt those who are in business to save lives.  If they fail to perform safely remove them from the system by pulling their license.  Institutions sworn to save lives should not be liable.  Is their a risk?  Yes just like their is of crooked cops and politicians and bankers.  However those just mentioned do not have to have malpractice insurance.  It is time to kick the lobbyists off of Capitol Hill and return it to the people.  Lobbyists do nothing that is not going to benefit them in some way or another.  It is usually at the cost of the taxpayers.  It is ime to get back on track.

   The recent budget debate solved nothing.  It just wants to kick the problem down the road.  Of every dollar America spends 40 cents is borrowed.  While Congress is making token payments and wants to show their good faith by paying a few billion over ten years.   It has not addressed the problem.  With fourteen trillion dollars in debt we have to pay off over 5.6 Trillion dollars over ten years,  Please note that, that amount only keeps us even.  It would take close to 600,000 billion a year to reduce it any at all and that is presuming they make no new debt. Yes it will take almost 6 Trillion in cuts over ten years to make a difference. Cuts of that magnitude are more than America can absorb and remain a viable country.  That means a way of generating income has to be created.  Having bailed myself out of debt several times I know cuts alone do not do the trick.  You need to make more money to defeat the problem.  Just like the old business adage, "You have to spend money to make money"   The trick is how do you get the money you spend.  Certainly not from borrowing more.  You can not borrow your way out of debt.

      Once you have created a way to get the money you have to keep it out of the hands of those who created the problem in the first place. That requires that the Federal Government can not have access to the money.  They have proven their incompetence beyond the shadow of a doubt.  The states do not do much better.  What is needed is a program where the money goes straight to the states and they manage it.  The Feds role would be only to make sure the money is used for what it is designated for. That would be repairing infrastructure.  It should not be used to pay state debts and salaries.  That would defeat the purpose.

      So how does this work?  As I said earlier we need to get our house in order.  A permanent program to fix America's infrastructure needs to be put in place.  How do you pay for that?  Why  taxes of course, but not one that is handled by the Fed.  It needs to come from a measurable source and provide sufficent revenue to do the job.  America uses fourteen million barrels of oil a day.  That equals roughly five hundred eighty-eight million gallons a day.  Over the period of a  year that would be over a couple hundred billion gallons.  If it was taxed at one dollar a gallon it would create a fund to pay for the infra-structure repairs.  The jobs it would create would generate taxes on payroll that would go to the federal government.  This solves two problems it creates lots of jobs. In just a couple of years it should get almost everyone of the unemployed Americans back to work.  All the jobs would not be construction.  Their would have to be steel for bridges and reinforcement, machines to prepare the sites and do the work.  This creates factory jobs and as those people spend their wages it pushes things forward.  Secondly it creates payroll taxes that generate income for the Fed to pay its debts.

    Another source of income could come from decriminaliztion of pot.  Hemp is a perfect crop for making bio fuel from, also hundreds of other products that would easily create a couple trillion dollars worth of income and jobs. Removing the incarcerated potheads from jail and making them feed and take care of themselves would save billions of tax payer dollars. Most states are getting on that bandwagon whehter the Federal Government likes it or not.

     While a balanced budget amendment sounds nice, it does not necessarily solve the problem.  What is needed is additional income to pay off the debt.  That is not addressed by balancing the budget. You can have a balanced budget and still be broke. 

     This may be simplistic? Maybe.  However it addresses a perpetual problem, with a real solution.  Taking care of infrastructure is a long term and on going problem.  It is one that needs to be addressed.  If you agree with this idea forward it to a friend and do not forget to send a copy to your favorite politician.  Your comments and opinions are apprecitated.  Both positive and negative.  Thanks for taking the time to read my blog.

One for America...A Job Plan

      Now that the debt ceiling is behind us.  Hopefully things will get better. All the news was bad news the last few days.  Now China has lowered our Financial Rating.  It does not mean they can raise interest.  At least I do not think so, but they can stop lending to America and that would be just as bad.  America depends on loans for the 5.6 Trillion dollars we spend above what we take in.  Just the daily interest on that amount is over 1.2 Billion dollars.  That amount could create 30,000 jobs that pay $40,000 a year.  Over a year that would be around 10,900,000 jobs.  Just two years of that money would create more than the 14,000,000 jobs that need to be made just to get the unemployed working.  That is why we need a balanced budget. We need the money spent here.  Not paid out in interest and foreign trade deficits.  Especially to oil countries that not only hate us, but that support the terrorist that attack us.  We use 14,000,000 barrels of oil per day.  That works out to about 588,000,000 gallons of oil.  If oil was taxed at $1.00 a gallon it would be enough money if spent on infrastructure to create 14,700 jobs at $40,000 a year every day.  Over a year it would create 5,365,500 jobs which would creat tax revenue to help the government balance the budget.

       I know these are rough figures but this program would be moving America toward a solution.  This program does two other things.  It creates a permanent infrastructure fund and a permanent job program.  It   does not require government funding as it is self supporting from the fuel tax. The tax would be paid by those who use the oil.  Those who use little, pay little.  Those who use more, pay more.  That is a fair way to do it. The ones who drive gas guzzlers would pay more.  A person driving a vehicle that gets twelve miles per gallon and drives 50,000 miles per year would pay $4166 dollars.  A person driving a forty mile per gallon car for the same 50,000 miles would only pay only $1250 dollars. That equals about a $100 dollars a month and it puts America back on its feet.  Raising the minimum wage 62 cents and hour would make the cost neutral for a person driving a forty mile per gallon car. A small price to pay.  That is quite a savings.  As America changes to the high mileage cars our dependence on foreign oil would fall tremendously.  That money staying here, could create jobs here.  Anyone driving a 60 mile per gallon car could be made exempt from the tax.  Of course the people driving alternative fuel vehicles would be exempt till a method of making a fair tax on renewable energy can be developed.

      The trick is making sure the money goes to the states for infrastructure repairs and salaries to do the work. Keeping Federal and State fingers out of the money in the important part.  Rules have to be put in place that the money can not be used to pay for other state and federal programs.  At leat I am thinking on the issue.  I have a half dozen or so other energy saving ideas that can work and are proven to work.  As for me I prefer and air powered car.  They already make them in France.  Just put in air powered cars in France and  a site will come up.  You got ideas I would love to hear them....

Debt Ceiling....Republi-can'ts Don't Get It.

   With the market in a slow slide it is anybody's guess at what point the thin ice will break and take down the whole system.  They say it can't and won't happen.  If the whole  economic collapse in 2008 was triggered by the Lehman Brothers collapse.  What does it take for the Republi-can'ts to open their eyes.  They certainly are not looking at Republican history.  If they are they are not getting it. Ronald Reagan raised the debt ceiling 18 times while in office. He also raised taxes 11 times.  His successor did not get re-elected because he raised taxes.  He did not get re-elected because he lied to the American people. "Read my Lips" will probably be on his headstone. Quoting Mr. Reagan, " Congress consistently brings the government to the edge of default before facing its resposibility.  This brinkmanship threatens the holders of government bonds and those who rely on Social Security and veterans benefits.  Interest rates would skyrocket, instability would occur in financial markets, and the federal deficit would soar. The United States has a special responsibility to itself and the world to meet its obligations."  That quote I got form the Vincennes Sun-Commercial editorial page and was used by Dana Milbank of the Washington Post.  Reagan was the Republicans, Republican and he understood the dangers involved.  The Tea Party advocates better do some more research and figure out a better way to balance the budget than default.  In 1932 at the bottom of the depression in Chicago unemployment was over 40% for white males, minorities, the elderly and youth was at even higher rates.  Think about this while pondering this big problem.  Back then it was banks and business that were failing.  The government was solvent.   This time it is the government that is insolvent and there will be no one to bail it out.  If the economy is pushed over the edge, the fall will be farther, longer and deeper than the Great Depression.  Saying government can not fail is comparabable to the Titanic, which is about where the bottom will be if the Republi-can'ts let this happen.  They doubled the national debt in eight years and passed no bills to pay for it.  They need to man up and pay for the stupidity they created.  If they do not the Republi-can'ts may be no more by the time of the 2012 election.  I do not know a lot but I bet President Obama will beat the horse they are riding right into the ground.

Swatting Flies With Sledge Hammers and 9/11

       Today President Obama announced plans to draw down the troop strength in Afghanistan.  That is nice and it may help the budget process, but the real question is why are we there to start with.  My opinion is that it is Bureaucratic Incompetence.  Had the leadership of the United States put half the thought, planning and time into retaliating for 9/11, that the hijackers did we would not be in the mess we are in.  It also could not have been used as an excuse to attack Iraq.   While getting rid of Saddam Hussein was worthwhile it was and is not justified the way they did it.  Had they done it as part of the Gulf War it would have been provoked and acceptable.  The only goal of government was to show that they could react to a situation.  The outcome was not as important as the impression "something" was being done.  Swatting at pesky flies with sledge hammers is the standard practice of the government.  A little sugar will concentrate the flies so you can get several with one smack of a fly swatter, with much less collateral damage.

     Had the government planned, imbedded spies and taken the time to learn the habits and weaknesses of the enemy one good clean strike could have taken care of the problem.  The recent killing of Bin Laden proves that it could have happened.  Knowing who you can trust in an area where no one trusts a foreigner can be a painful lesson to learn.  If we had waited two, three or even four years and then launched a successful strike it would have been cheaper. Also more effective in the long run.  Was the point to send a message?  If so be glad I was not in charge.

    If I had been in charge.  I would have taken one jet and one nuclear bomb and melted the side of a mountain.  It was in almost total wilderness.  The collateral damage would have been minimal, but it would definitely shown we meant business.  The statement would have been clear.  It might have encouraged our allies to do some of the cleanup themselves.  The message would have been clear,  We are going to get even. Deal with it."  A side effect of the Bin Laden operation is that it showed us the true sympathies of our supposed "Allies."   The question is not when but how long will it be before a nuclear weapon leak happens.  The terrorist are not really serious about terrorism.  It is to easy to build a bomb.  If they were serious they could come here.  If they started blowing up shopping malls, high school ball games and any other senseless act of violence they can dream up.  Who is going to stop them.  Almost any person can go into any store and buy the ingredients for a bomb.  All it would take is the will.  Who stopped the Columbine Massacre?  Nobody but the terrorists by committing suicide.   What about Oklahoma City?  Was McVeigh a terrorist or a psychopath.  Probably a little of both.  The point is our government feeds on our fears and tries to increase its control over our lives. 

     The war on drugs is the perfect example of incompetence in action.  I do not do drugs, other than prescription ones, but I would bet I could acquire some if I so desired in almost any city in America without to much effort or risk on my part.  The government has not put a dent in the supply of drugs.  Prohibition proved you can not legislate morality, but you can tax the heck out of it.  If they legalized it tomorrow it would destroy the drug trade, especially if you could grow your own.  There would be no money in it.  No money equals, no drug dealers.  OH!!!But if they legalize it everybody will become junkies.  Did everybody become Alcoholics when prohibition ended?  No, they did not.   I do not smoke, drink or do drugs and I am not about to start because some idiots in the government say I can.  That concept is assinine and survives only by feeding on peoples fears.  That is the governments biggest weapon.

    What proves the incompetence of the government is what is happening around America.  Many states have approved medical marijuana laws and allow the sell and growth of certain amounts of drugs.  Colorado has even created a system to inspect, set up guidelines and tax pot.  All of this in the face of Federal laws that say it is illegal to do so.  Cracking down is not the answer.  We need to take a new look at the whole drug problem and how America is dealing with it.
   President Roosevelt said, "We have nothing to fear, but fear itself."  The government has been using it to control the citizens every since that time.  It is time for a third party that will take that system apart and give the power back to the people.

America's Coming Economic Collapse, A Possible Solution

      Collapse is not probable, it is inevitable.  Many people are trying to make a big deal about the economy and trying to make out like it is going to magically recover.  The housing markets recent slide tells the true story. It is not rocket science to figure out what is pushing it down.  The almost fourteen million people who are on unemployment are quickly becoming 99er's.  They are running out of the only resource that helped them keep ends together.  Simultaneously gas prices have spiked again just as they did three to four years ago.  People living on the edge have to make decisions.  When it comes down to eating, keeping the car or paying the house payment it quickly becomes a no brainer.  People are going to eat and they are going to keep their mobility.  It will not turn around till the government comes up with a job program that puts millions of people to work.  It must also help the states to pay their bills.   As people go to work they pay taxes, when they get laid off they do not pay taxes.  Something has to give. 

     Unless bold action is taken, and taken immediately America is going to slide into a major depression that makes the Great Depression look like a cakewalk.  National Debt, Jobs, Infrastructure, Health Care and Social Security all are related.  The recent tax break given to American tax payers was done by borrowing against the future.  The government cut Social Security deductions to put more in people's paychecks.  What they did not say is this will cause a shortage in Social Security funds down the road.  Peter and Paul no longer have anything to take from each other the government has taken it all.  With a national debt that equals more than $40,000 dollars for every man woman and child in America, we have a problem.  The median income in America is onlyu $34,000.  That means if half of everybody gave all they have to the government they would still be $6,000 dollars in debt.   Who is this going to fall on.  Not this generation, and not the baby boomers,  it is going to fall on our children and grandkids.

      Right now there is an opportunity for a solution.  A year or more down the road it will be to late to make a difference.  President Obama supposedly put in place a "Paygo" program that requires all new expenditures to be paid for by budget cuts or tax increases.  Yet his present budget package asks for an increase of the national debt limit by 16 % over what it is now.  It America is to maintain its credibility it has to be done, but it should be done conditionally.  It should reguire the 2013 budget to be no more than the 2012 budget and the 2014 budget should require a reduction of the same 16% that it is being raised this year.  That gives time and room to solve some of the budget problems.  One condition should be the bringing home of all American forces overseas.  All means all, and includes the ones in Germany, Japan and Korea where our troops spend billions of dollars that could be spent in the American economy. 

      A permanent tax should be assessed on gas.  This tax should be strictly for rebuilding America.  While it is a tax, it is not going to the federal or state governments who have proved to be to incompetent to do the job.  Each state will have to appoint a commission to adminster and manage the funds.   My opinion would be around $1.00 per gallon.  That money would go to the states it is collected in for infrastructure repair and renewal.  Twenty percent of that money should be dedicated to upgrading our energy infrastructure and reducing our dependence on foreign supplies.  This system should be ongoing and permanent.  Infrastructure is the backbone of America.  Without roads, bridges, dams and waterways just to name a few things, America will cease to be able to compete on the world markets.  One restriction should be placed on the tax money from the gas tax.  The state and federal budgets should not be able to access the funds.  The states and feds will benefit as they will no longer be required to budget for infrastructure.  The funds will be restricted to taxes collected.  This will in the long run help restore soundness to the system.  It should be called the America First program and as it creates jobs the economy should turn around.  It will buy time to get the rest of the budget in order.  If it is not done and quickly the consequences will be dire. 

     If America defaults on its debt it will lose the faith and trust of the whole world.  The saying will not be "Buy American,"  It will be "Buy Anything, But American." and that will hurt.  The first thing that needs to be addressed after the jobs situation which this tax takes care of is the Health Care System.  There are solutions but they require tough choices.  The problem is Americans do not like tough choices, but if they are not made now.  Tougher choices will come later and we will not be living in an America as we know it now.

2012, Or Sooner, Or Later, Whenever, Whatever, Endtime Gloom and Doom

    People seem obsessed with the endtime thing. It does not really bother me as I am pretty sure I have my eternal destiny lined out.  The media is hyping that the Judgement Day will be the 21st of May.  The Bible says no man knows the day nor the hour of the end time.  It implies that we will be able to discern we are in the time near the end, but the date is not to be known.  If it happens to be the 21st, it will be coincidence, and not accurate predicting, supposedly the one making this prediction made a similar prediction back in the 90's
     In the Bible a verse in Matthew twenty four verse seven Jesus said, " For nation shall rise against nation, and kingdom against kingdom: and there shall be famines, and pestilences, and earthquakes in diverse places." Yet it says these are just the beginnings.  The Bible has a lot to say on the matter and in Luke and Revelation it says there will be a time of tribulation like there never has been on earth and an earthquake like as has never been since the time man appeared on the earth.
    Earthquakes do seem to be a big part of the endtime scenario.  They seen to get larger and more frequent. The day of Pentecost this year would be June 2, which is forty days after Easter and the timeline at which Jesus appeared to his disciples. It definitely seems to me that we must be getting close to something. I recently pulled up the site for the U.S. Geological Survey and their chart on earthquakes and it goes back to 1970. It may be that I gave it that cut off date, but the chart shows the total number of earthquakes above 5.0 per year and it is kind of scary. There was a couple years that they got up to the 1700's in 1976 and 1977, but they usually stay in the 1300's to 1400's. However since 2004 when there were1672 it has gone steadily up. 2007 there were 2270 and in 2010 there were 2117. Buy the end of March this year we had, had 659 and if that continues you could expect 2600+ this year.  If you would like to look at the site it is easy to access at http://www.johnstonsarchive.net/other/quake 1.html and it should give a graph from 1970 forward. My studies suggest it could happen at anytime, but I would expect it by late 2017 if the Bible is consistent with past dealings that God has had with mankind.  There were at least three, five hundred year periods that had several consistent events that happened in each five hundred year period.  As the Bible says of God, I am the same yesterday, today and forever, therefore it might be expected he would deal with mankind in the same manner in this five hundred year period, if we are in one.  If we are not, just the fact that the Lord said he would return and that there would be an end to time, the circumstances are favorable.
If I get any responses, questions or comments I will go into more detail, but it is not my intent to push what I believe on those who are not interested.  Just the fact that the number of earthquakes has increased is interesting.   The Bible also says the earth will be turned upside down.  Recent news events suggest the magnetic pole is moving about forty to fifty miles per year and it has moved enough they had to change the compass heading for the Miami airports main runway.  Anybody that knows anything about magnets knows when you try to push like poles together they repell each other.  Could the increased movement of the poles be causing the core to shift thus creating the increase in earthquakes.  If that is the case then the gravitational and galactic alignment predicted for December 2012 could bring about the forces to flip the core if not the surface and the number of earthquakes would increase exponentially.  There was a planetary alignment in 1982 and leading up to it from 1975 to 1978 there was significant increase with a lull and then another increase 1982 till 1986 followed by general average increase.  The average hit a low in 1998 which is roughly the middle between the alignments or when the alignment was not an issue.  However it is building in intensity again.  During the eighties period Mt. St. Helens went off and several other volcanic episodes. Coincidence?  I do not know.  The recent volcanic activity in Iceland the south Pacific and South and Central America do raise questions and possibilities.  All we can do is wait and see what happens.  Scientist in the right fields should be able to tell us how far poles on magnets can shift before they trigger a major shift.  The laws of physics are pretty constant, but they are not my area of expertise.  Anybody reading who knows the right kind of scientist could send him a copy of this and ask him the possibilities on my being right.  Enough rambling I am curious how many people are interested in this subject.  Thanks for reading.

MONEY: Finding A House, Working Smarter, Not Harder

       How do you work smarter and not harder, make your money work  for you and stay out of debt.  The next paragraph is from an E-mail to my niece.  I think the advice could apply to anyone trying to find a home. The second part has more details on buying a piece of property at tax sale.
   

     Hi Again, Thought I explained enough in the blog, maybe I need to revue it.  Basically take the time to drive around on country roads or pay attention when you happen to be out in the country.  Your looking for houses that look like they are not being kept up, mowed or look abandoned.  Stop and ask the neighboring houses what they know about the house.  Sometimes out of state people buy farms for investments and never go visit them.  To them it is a tax thing.  Other times it belongs to a local person or farmer and they are living elsewhere for whatever reason.  Sometimes it was a family members house and they don't want anyone to live there because of the memories.  You can usually turn this type around if you mention all the hard work the person put into building it and that it is sad to let it go.  

     Anyhow once you find out who owns it, then you try to cut a deal.  Maybe you can cut yards, or feed livestock, fix fence, drive a tractor, basically try to sell it as a deal that you can work out the rent.  Make sure you pay yourself good.  Figure $15 to $20 an hour and guess what the rent would be.  If it would be like $500 a month, then you agree to work 30 to 35 hours a month. That is just six to eight hours a week to have a place to live.  The rest of the time is yours to do with as you please.  You need to also have time tp make money so you have independence. If they include the utilities give a little more.  Basically it takes being bold enough to ask.  Most will say no, but your only looking for one to say yes.  You can run a classified saying you want a place in the country and will work for rent.  Just whatever you agree to, make sure you give 120% on your end.  Make them happy and it can last a long time.  Sometimes they just need somebody to take care of it temporary till they can find a buyer for a deceased persons house. If the people like you and that you take care of the property you may be able to turn it into a nothing down contract.  Do not be pushy, but if you decide to turn it into a contract.  Make sure it is in writing. 

      I recently finished paying off a contract that was done on a handshake.  I had my receipts and tax papers, but no written contract.  When we agreed to the contract we were in our late forties and going to live forever.  Randy, my friend, moved out of the area, divorced and remarried and moved again.  Then he came down with cancer.  His wife at the time he died was very nice in honoring the contract.  The local lawyer made me produce paperwork to prove we had an agreement.  Remember it was his word and mine and he was dead.  Fortunately I had copies of all our correspondence and the fact was clear that I had agreed to pay it off, but had problems following thru because of his illness.  It was a stupid thing to do, but we did it.  We had been talking how in the old days things were done on a handshake and so we agreed to do it that way.  Let me say this, I was lucky to be dealing with reasonable people.  It could have turned out bad, very bad.  

     You can find them in town the same way.  It just takes being bold.  Just make sure they have your name and address in case they change their mind, or think of somebody who might be able to help you. Make sure they know you are not destitute, that you have a property, but you just need to get on your feet so you can fix it up.  If they let you have a garden space you can make some good money and cut your food bill.  It takes being motivated enough to pursue it and don't forget to ask the Lord to prepare your path, and open the hearts and doors.  It can work believe me.  Read Joshua 1:8 in the King James.  Who does the Lord say will make things happen.  You will, you have to get up and do it.  Hope that helps....Keep me informed how it goes.

    If nothing else you could then get a renter who can fix the house on Bates for their rent.  When they are done you can start getting some rent or move back in yourself.  As far as your house you should talk to some habitat for humanity people. Being a single mother of four can open doors.  See if they can do anything they to help you.  It is a thought.  Later, pray it works for you, Turtle

     That letter helped her get started in the right direction, but she ended up dealing with a person who ripped her off.  Another way to get a house cheap is to get one at a tax sale. Different states and local laws vary, but basically you make a bid on a property and pay any back taxes that are owed.  At the end of a year, two years in some states. The property becomes yours if the original owner fails to come forward.  That is free and clear and no liens on the property.  Some are in good condition and some are falling down.  Your job is to do the research required.  You can go to the auditor or assessors office and usually find out the name of the owner.  Then you can get on the computer or go door to door in the neighborhood and find out what you can about the home.  Try to find one with no mortgage on it.  The bank usually waits till the last minute and then exercises their lien.  The neat thing is that in most states you get back the money you paid with interest and you can usually add on a small administrative fee for your work.  The trick is to find the property that you have no competitors on and that no one is going to contest the sale with you.  If they do redeem the property your usually not out anything.  You just have to find another property at the next tax sale and start over.  If you can find a property of an old person, who is deceased, with no heirs, which is more common than you would think. My daughter bought a house and all the furniture and everything the deceased lady owned was still in the house. You may get a house for a few hundred dollars or under a thousand anyhow.  You are the one who has to do the detective work and find out the information. 

     Once you get a house, you can fix it up, move in or sell it.  Whichever is the most beneficial to you.  It is a neat way to get started in the property rental game.  You can rent properties for years and then sell them.  The rent is your income and the sales money can become your retirement fund.  My daughter usually starts a contract with a renter for an extra months rent.  They agree on a price, the interest and the term of the loan and draw up a contract.  The neat thing about doing this it that the renter is then the buyer.  Any maintenance, taxes and other upkeep become the buyers reponsibility.  If you have virtually nothing in the house and sell it for a profit at the local market value it does not take many house to generate a comfortable income.  A couple houses into it and you can hire the work done instead of doing it yourself. 

     The main thing is you need to learn how and what to look for when buying a property. How to do a good inspection or a reasonable person to do it for you.  You do not want to buy another persons headaches.  Remember I am writing this mainly for the person who is unemployed and needs a place to stay, but it can be turned into a business by about anybody who is willing to put in the effort. The down side of renting is that when something goes wrong you are the one the renter calls.  So you need to make sure you are able to meet the responsibility.  How much you can do yourself and save money depends on the local zoning board and rules.  Small towns in the country tend to be more liberal and let you do more.  However property values are also usually less and it may be harder to get renters for houses.  The trick is to make money but offer a good enough deal that people prefer to rent from you. Your renters will find you renters if you are and do.

  

  One last option which is tricky, but can get you into a home cheap is find someone who has a house they want to unload cheap.  Especially someone who just wants out of their situation.  This usually works for a person who has a job and can afford the payment, but you have to be very careful and you have to make arrangements for the payments to get to the bank or loan holder.  I have seen people get in a house this way and then get thrown out on their ear.  They were paying the person they made the deal with, but the person they made the deal with just pocketed the money and ran out on them. Being careful is the key word.  You can help yourself, but you can burn yourself also. 

  Any comments, questions and opinions are welcome and will be answered to the best of my ability. Thanks for taking the time to read my blog, I hope it helps you.