RANT: I Bet You Only Know of Two Ways to Buy a Home

RANT: I Bet You Only Know of Two Ways to Buy a Home

It pisses me off that the american public is so miopic that they have bought into the brainwashing that you cannot buy a house without a bank. I happen to be a real estate investor and my team only buys houses without banks, i.e. cash, direct from sellers. We can buy seller notes, carry notes for people that want to buy from us, or just outright buy houses.

You should NEVER go into debt to buy a house. Some people don’t learn until they are out of money completely.

51% of all transaction of home purchases in Vegas for the past 2 years has been in cash. Way back when, think grandparents, nearly everyone bought their house with cash.

The banks have tried to attract people to take out loans to buy homes and cars on credits for decades now. Even at 0% interest rates, still 30% of the country, before the housing bubble collapse, bought houses in cash. And, we’re not talking rich people. People saved their money and bought houses, as it should be, and should have always been.

As far as ponzi schemes, you’re talking about fractional banking, where a bank has only $1,000 in reserves, but can lend out $10,000 in “loans” based on money they do not have. To keep this working, the lendee is afraid that if he doesn’t pay up he’ll ruin his credit. However, the interest rate he pays BACK to the bank has to come from thin air. So the bank writes a bad check to you, on money that comes out of thin air, and you pay back the bank on money that comes out of thin air. So as you pay back the bank $15,000 dollars, he then turns around and lends out $150,000. And so on.

What really makes it a ponzi scheme is that the people paying back the interest have to take money OUT of the system to pay back the loan.

Let’s pretend that we could actually have a stopping point in time, to this game:

  1. you go to work and make a table
  2. your employer sells the table to john
  3. your employer gets money from john
  4. your employer pays you a salary
  5. you put your money in the bank $1,000
  6. john takes out a loan for $10,000 for a home improvement
  7. John pays back $15,000 from money he gets from work
  8. the extra $5,000 isn’t even in the system and before john can pay it back he runs out of money
  9. the bank did not have $10,000 to lend out in the first place so
  10. the wood john bought doesn’t get paid for
  11. the nails john bought doesn’t get paid for
  12. the paint john bought doesn’t get paid for

So after about a  year the system collapses from fraud. The only real money in the system was the $1,000. And, that is a ponzi scheme BY DEFINITION.

Madoff did the same thing, just with fewer steps and with less cooperation from banks.

  • He got the first round of investors to invest.
  • Here comes the second round and he pays off the first
  • the first reinvest
  • here comes the 3rd round and he pays off 1 and 2
  • by the 50th round, he cannot pay off 30% more than 1-49 have invested and runs away with millions, because it’s paper money and fake returns that they all keep reinvesting.

This is exactly what the banking system does. They keep making loans every hour and people pay off the loans every hour.

The government is in on it, because they have to pump money into the pool every hour, by the millions. By them pumping millions back into the pool of money, it means your 2 dollars is now only worth 50 cent, because it takes 4 dollars now, to buy what 2 dollars could buy before.

Madoff = ponzi
bank = ponzi
government = ponzi
social security = ponzi
income tax = ponzi

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Don’t Complain About Being Broke When You’re 100% in Debt

Being 100% in Debt

Fact: you can save money, and purchase a house with cash.  Fact: you can save money, and purchase a car with cash.  Fact: you can save money, and furnish your entire house with cash.  Fact: you do not need to move out of your parents house… EVER.  Fact: you do not need to buy a car every 3 years.  Fact: you do not need the latest iphone.  Fact: you do not need a credit card.  Fact: you do not need to go into debt or take out a loan… EVER.

I bet you never hear that.  I bet you only see or hear people say what the “American Dream”™ is.  The truth is the “American Dream”™ has been overtaken and redefined by corporate america. I bet you only hear, that living in a house and taking out a mortgage is “normal”.

Imagine if noone had a mortgage?  We wouldn’t have had a housing bubble to burst.  Imagine if all notes on homes were carried by the owner of the house, without any bank interruption.  Instead of being upside down in a house with outrageous interest rates, you’d be in a much better house, that you’d take legal possession of from day one, with a very low interest rate, if any.

But, people buy into the lie that is the current Consumer Economy™ and think that they have to put their neck on the chopping block and live the Lifestyle.  What’s worse, is that people buy into this lie and then complain when they figure out that they cannot afford it.

You have only yourself to blame:

  • when you buy a car every 3 years. 
  • when you take out a loan to buy a house
  • when you take out loans to purchase major appliances
  • when you take out a loan to furnish your house
  • when you buy the latest iPhone
  • when you buy the latest video game
  • when you buy the latest laptop
  • when you buy the latest fashion
  • when you eat out daily
  • when you buy ready made food
  • when you waste water and electricity
  • when you do not help less fortunate than yourself
The US is not in a recovery.  The government is feeding you a line to make sure you stay in line, purchasing.  The government is  feeding you a line, to make sure you vote them back into office.  The government is feeding you a line, to make sure you vote republican / democrat.  The government is feeding you a line, to make sure you don’t revolt at them unconstitutionally sending troops into a country’s civil war.  The government is controlled by wallstreet and you are being fed line after line to believe in the government.
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