Land Prices and No Banks

This is a rewrite of the original blog post on this website but it has never been more true than today.

What if we solved the housing crisis ourselves – without the banks, that”s right – no banks, without the corporate homebuilders and without the high prices? Who says you need to beg for a mortgage to buy a cookie cutter house that the Homeowners Association won’t let you touch and then be a slave to all of the above for the next 30 years!

Let’s be done with that model of home ownership. Without getting too deep into macro economics it is common knowledge that the national debt has just topped $17 trillion, our entitlement programs, Medicare and Social Security are in trouble because of the aging population and the banks are just not lending money.

And why should they when they can borrow from the Feds for next to nothing and then turn around and purchase government backed securities yielding several percent more making their profit on the difference. Sounds pretty safe doesn’t it so why should they lend to you and I?

But with every problem comes an opportunity. And now, right now, you are presented with an amazing opportunity. Did you know that you can buy a lot, right now, cheaply or for only a few hundred dollars down without any credit checks and no lengthy forms to fill out and no banks. That’s right, no credit check and no banks.

Who cares about a FICO score or bad credit!

Land is still on sale right now allowing you to buy it cheaply, and later, build your own house when you can. In fact some counties have even lowered new home construction impact fees possibly saving you up to $10,000 or more. And labor and material costs are still low as well. The good news just doesn’t stop.

So, start with a plan for your dream house. Talk to a local architect.

1. Have him/her get it permitted with the local authorities;

2. Bid and install the underground utilities;

3. Then install the concrete slab and foundations and the hard part is done.

Frame it up and finish it when you can. Then you own everything free and clear with no payments, no debt and no banks.

See short video on the home page at the bottom of the right hand column to see a house get built.

So it takes you a few years. That’s a lot better than 30 years and you get exactly what you want. If enough people follow this model the industry will respond to this new need – architects, designers, builders, etc. Let’s reshape the housing market from the ground up instead of being sneered at and dismissed by the banks.

And yes, this will take a few bucks – that’s understood. But what better place to put your money to protect against inflation when it kicks in. And how are your other investments doing anyway? And what about the future of your retirement accounts in light of the facts outlined earlier. How safe are they. Did you also know that under certain circumstances retirement money can be used penalty free for a home purchase?

This plan might not work for everyone but certain ideas within it might. And if you can pull it off, think how happy you’ll be in your own free and clear home. There are small homebuilders all over the country that are just waiting for your business. In fact, in some places they say they can build a new home for less than an existing home because land, material and labor is still relatively cheap.

And they also say, they are very, very busy!