HOW EVEN A HOMELESS PAUPER CAN AFFORD REAL ESTATE OF HIS OWN!
We lower income people are programmed into thinking we’re unlikely to ever own property and that we’re doomed to be poor. The truth is, renting is the sure way to be poor forever. Instead of wasting a huge sum of cash every month to pay the landlord the HIGH RENT he asks and never getting any of it back--- instead of NEVER having a piece of land all your own—study the FANNIE MAE method for owning a house and land and becoming wealthy in real estate.
Don’t give in to POVERTY CONSCIOUSNESS and hopelessness. We live in a country where increased joblessness and inflation make becoming HOME-LESS a reality. With Social Security going down the drain, nobody is going to take care of you but yourself.
There is no better way to save cash and end up being comfortable and having something left over to give your kids a head start than owning property.
Rethink your SURVIVAL strategies. Let in new input. Get off your old prejudices, nihilistic thinking, and your sense of hopelessness. Take 1 minute to hear an idea that will make you a homeowner, landowner and a wealthy person.
In this difficult era, where many of us are a single check away from the alleys and corporative, mass firings have reached an all-time high, we look anew at the huge amount we must spend on monthly rent. It just goes down a drain, and time and time again, we think I have no down payment, ‘there’s no way I could begin to afford a single family house. True but that doesn’t mean you can’t own property.
You have a large group of acquaintances and an extended family. They could be of great help. The FED is currently giving low loan rates (3%down), to poor people for 1st time ownership on 1-4 unit residential. That means you and your family could be living in a four-unit apartment building (shared with three other families who live in the other units) or you could buy a large house that several families would live in and own.
The central idea of this NEW method for skinning the Real Estate Horse is co-operative real estate ownership. Your father’s huge rent check will qualify him to co-own the property with you. Get half the down payment from him. If he doesn’t want to move out on his rental, let him stay there. But tell the FANNIE MAE that he’s moving in with you.
You don’t have to co-own the property you plan with family members either. We are a human family. Anyone can be your bosom buddy and if not roommate, at least co-owner of a four apartment building. Look around you for three other families to co-own that building. There are many working (so-called) poor: janitors, landscapers, painters, roofers, and don’t forget immigrants, hardworking people who earn a lot of cash and spend a LOT on landlords/ apartments/ yet YEARN to own a property. LOTS of people who EARN cash—and a LOT of it— HIDE their earnings from the IRS. They have no credit. They rent expensive apartments and literally show no earnings. They usually bank in their CAR trunk. Frequently they earn a solid, steady blue-collar income. Many poor families have several workers. They’ve seen serious trouble back home so always, both mates and all the children have jobs. These people want to achieve HOME OWNERSHIP, but believing they cannot buy property because they have no credit, they waste their money on toys instead of making land ownership a family goal. They could have been saving that money until they had the 5k it takes to buy an apartment building. 5K is not a hard thing to do. And the funny thing is, when you do a Fannie Mae Community Loan, and the official there, (not part of the government, this is no longer an arm of the gov, it is bankers as it was privatized,) asks you where you got your down payment, you are legally allowed to answer, "it was mattress money.’ Meaning, I just had it around, I’d saved it." No further questions will be asked. They don’t suspect you of dealing dope or furtive tax practices. Really, they don’t. Not in the 5k or l0k amounts you’ll be showing up with.
YOU CAN certainly find three other family groups among the dozens of people you know, who’d hear this method of achieving 1st time property ownership and be inspired to get together that small sum of cash.
Not only could your friends who are currently renting achieve property ownership with this idea, but lower income people can also achieve condo-ownership this way. Here are the details. First, as I said, find 3 families with a few working members, (yours is the 4th). Remember, here’s the good part, none of you need credit. Doesn’t matter if credit card companies have TURNED YOU DOWN. Fannie Mae’s are very easy to qualify for WITHOUT credit. All the government wants to see is how much rent you’ve been paying. So save all your rent checks. Right now, pay your mother’s rent and your own. She can put her money in your account, you pay it. Or, if your mother is going to come in on the property with you, don’t pay her rent. The high rent she pays makes her a great co-purchaser.
Next, find an old 4-unit, inner-city, fixer-upper bldg, (low price) that’s up for sale & hasn’t moved—what with real estate being real dead since the IMF raised the Prime rate. We pick 4 units because with four families there, all of them in on the loan, it’s obviously not INCOME property and that’s what the Fannie Mae requires. That you live there. If your people live there, they can purchase the land with a down payment as low as 3% if you have credit or l0% if you go for the ‘proof of rent paid-plan’, so it all depends on the F.M. program you use.
With interest rates high and real estate sales low now, you can get a bargain on the price—even ask owner to assume ½ the closing costs. You can also ask a solid third off the asking price. Let’s say they want 350k for the bldg, you get them down to 325k.
If you do the 3% plan, each family needs $2,400 for the down payment and half the closing costs, about $625. 3 grand each family, for each unit. That’s not bad. That’s do-able. The monthly payment for each will be $800 a month. Hey, that’s a lot less than you were paying for rent!
If you want a condo apartment for yourself, FIND 3 apt dweller pals who want to own their own, too. Arrange to split downpaym’t 4 ways. On the 3% plan, all the Fannie Mae requires is one person with good credit, (perhaps already having property) co- signing on the loan. This person requires an inclination to help his relative or friend who is in one of those four units, by doing the CO-SIGNING. You need somebody with GOOD BANK CREDIT. I don’t know if it’s good news or bad, but that person will by default INHERIT the co-op if any of the 4 can’t pay his payment. If you look at that as an asset, the kindly friend or relative who puts this building purchase in motion can’t lose. He does good for 4 families, helps bring into creation a wonderful, Utopian do-gooder project that’s easy to pull off, and he could end up with a condominium all his own. So he might end up sharing in the profits big time years down the line when that unit is sold. This idea is so sound that you could attract any businessman who hears it. If there is a wealthy co-signer behind the four families, it becomes even easier to do with the 3% Fannie Mae plan, which DOES require someone on the title with credit. So look around you. You have resources.
The co-signer doesn’t have to be a relative, it can be a stranger, a friend, or a close relative of one of the four families. Whoever it turns out to be, this person cannot lose. If someone goes ankles up, he gets their condo unit, which he can sell or rent and hold on to as an investment. Worst case scenario is the rich man would end up being a slumlord with a huge, renovated apartment bldg and I’ll tell you what a wealthy black man told me. Slum real estate rents for just as high as the nice part of the city, but it costs half as much. Those who are buying ghetto properties to rent always make out well. I tried this idea out on a friend of mine, a local L.A. millionaire. I said, if I could find four families, would you co-sign. He said he liked it, he was up for it; said go find the building. You come up with the downs, my credit will give you a much better interest rate. If anyone defaults, I get that condo." Then I asked a local mortgage banker; he said it’s a CO-OP. This kind of bldg is also called a Public Utility Development or PUD as they share l utility box. Each family has a deed and a proprietary lease. And they’ve been doing them for years on the East coast. If the four lst time owners have some credit, they don’t need a co-signer. They can go another way: pay a higher down payment, l0% and qualify for the COMMUNITY LOAN Program, which requires no credit whatso-ever, no co-signer, but demands each buyer show cancelled rent checks that prove he was able to pay 600-$1,000 a month or whatever equals the payment you’ll be paying now.
You’re in the co-op as long as you pay your monthly payment. Your co-dwellers can only get kicked out if they fail to pay monthly payment. Then they go thru eviction which can take 3 months, meanwhile, THEY (the other 3 families) have to pay the defaulter’s share of the paym’ts. So he said select your 4 people very carefully. But here’s an extra fillip: at start, the 4 marginal-income families will sign on to ‘totally and personally, with their own labor, renovate the bldg,’ strip down to lath if needed, put in new drywall, new wiring if required, plumbing fixtures, (sinks, toilets, tubs,) then paint entire inside and outside of building. Next, in a single day, cut back all of the weeds, digging out their roots, and spread yard clippings (and vegetable trash) in a corner to make compost. Another way to resuscitate bad soil is to make the entire yard a compost pile for a year. Grow a crop of high nitrogen plants like peas, beans, and clover in the yard which you will disc in when it’s a foot high. Or go for a stand of alfalfa whose 30 feet long roots bring minerals up to the top layer of soil. Peas fix nitrogen doing miraculous things for the soil. Either way, this will give you a great, fertile yard. AUTUMN, when you disc in the green manure, add barnyard manure, chicken hay, barn cleanings. Wet it down, turn all this garbage once a week all autumn, winter. SPRING, soil will be fluffy and black. Plant your veggie gardens and bare root trees. You’ll have an orchard. Put in your green houses made for free of dead tree trunks of saplings... Staple-gun on plastic. Start those early summer vegetables and fruits.
On the building itself, install window boxes with bright geraniums or year-round flowers, up and down entire bldg, and in front on sidewalk, rent a jackhammer, knock wide holes for more fruit trees up and down the sidewalk with your homegrown black soil, then install apples, oranges, so the whole neighborhood gets a rainfall of fruit.
Then find all nearby vacant lots and get city to let you make them into CO-OP VEGIE GARDEN/ORCHARD to inspire the entire neighborhood to exercise their green thumb. Hold summer arts and crafts festivals, Street parties. Create a private outside dining room for your four families in the back yard with a gazebo, again made of saplings you find in the countryside. Create flower beds on all four sides of the garden. Build walls with free boulders found in some rural area. With the GROUP working together on the property, you could have something glorious which would double in value, gentrify your neighborhood. Inspire others, and make the decayed, inner city a charming Greenwich Village. Sell your unit a few years later, you and each family in this building will make enough money to create a down payment for a big private home in the ‘Burbs.’ So look around you. At barrio properties. At relatives or people you know. Emerson said ‘the greatest lord of all is use.’ USE ingenuity, things, people. Use relatives who have credit already to co-sign. So, where do you start? You could start by just hanging little ads in slum supermarkets, hair salons, to find people who want to sell a slum building. Discard your prejudices that being a ghetto owner is immoral or dangerous. God must have loved the poor, he made so much of them. This is a no-lose idea to help them acquire land.
In fact, someone smart should start a data bank to match up families. Call it C.A.S.A maybe—Co-operative Aquisition SOCIETY of AMERICA. Then rich and poor alike could register at some central data bank to find 3 families to live with. And wealthy people who want to get started in owning ghetto condos, would also register their names as potential co-signers who’d get their name on the title of the building. As I said, I already approached a rich man and he said go ahead, find the property! This says to me that the idea is viable. Spread the idea. Talk to your bank which has loads of foreclosures. The enterprising soul who creates this no-fee ‘no-charge’ central data bank and runs it as a charity, will almost certainly attract federal funding---and newspaper space. When people know about the CASA, it will be like HABITAT and attract donations, lumber, linoleum, carpeting, bunk beds, tables, bookshelves, couches, t.v’s. garden sheds, tools, etc. The data registry is nothing but a phone mail box, 5$ a month, and someone who takes those messages and enters it as data onto a computer file each night. And phones the four families and introduces them.
As there’s such a huge need for help in getting, furnishing homes, there’s no limit as to the availability of personnel to run or use CASA, nor limit to the growth and expansion that would probably burst out of such a concept once it got its start. If you were in real estate already, (which takes two months of study to pass a state test,) implementing this idea could make you a million in real estate commissions because you’d be out, talking motivationally to poor window washers on the street and getting them to join with other blue collars and follow this easy path to riches. Each sale that you negotiated, would make you a commission. You would be scattering wealth and—as instant good karma,--achieving it yourself.