Real Estate Investing

Concept houses can be really interesting.   We have tiny houses, storage buildings converted to houses, cave houses, tree houses, and now…. now we may be getting airplane houses.  The idea was conceived by an entrepreneur right here in my own community - an airplane converted to a house.  But not just any airplane house, according to World Net Daily - one that can withstand hurricane force winds.

Simply put, Bennington is looking to plant a Boeing 727 on a fixed bearing 15 feet above the ground, allowing the plane to rotate 360-degrees into the direction of the wind. The 1,200-square feet of interior space would be decorated with any luxurious furnishings according to the taste of the owner. 

In addition to living quarters (once stripped of all the seats and overhead storage bins, there could be lots of room), the plane could serve as a radar station during questionable weather.  Tom Bennington, the inventor who has a patent on the design, said,

…the first aircraft/residence/weather vane would gain massive media attention, and news and weather crews could even broadcast from there during hurricane season.

I hope it does get massive media attention because I’d love to see the plan(e) in action.

Photo from World Net Daily.

While buyers today are finding they have to actually need to come up with money for down payments costs rather than writing an earnest money check for as little as $100 or $200, the credit score remains king.  Without at least a 620, you won’t be buying that house.

Now there may be independently owned banks that will allow for a lower score, but they are few and far between.

What impacts your score?

• Have you paid your bills on time?  How many 30 days or later pings are there? Bills will include everything from phone to credit card to electric to student loans.
• How much open credit is available to you?  If you have a credit card that has a $0 balance, but a limit of $5000, this could be negative because you have the POTENTIAL to impact your debt to income ratio.
• What is your current outstanding debt?
• What’s your credit history?  Has it only been a month or two since you’ve had a credit card?
• How many inquiries have there been in the last 12 months?  If there have been a lot of people looking into the score, that’s not good.

There are many other factors to be considered … click here for more details.  If you’re financial house isn’t in order, you need to get on it.  Work with creditors to make payment plans (and then make the payments!).  If your income is less than your expenses, find that extra job if you can.  Avoid compulsive spending.  Write menus to buy groceries.  Don’t buy things without planning ahead to buy them.

Be vigilant.

My pal Les Jones - always on top of the economy, watches the feds, and has some great pics of his kiddos - did it again.  He linked to a site that I love.  Called Curious? Read, the site offered The Top 10 Things We’re Glad the Recession Killed.

In addition to the $5 cup of coffee, bling, and high gas prices, we also celebrate the end of ridiculous housing costs:

When a fifty-year-old, three-bedroom shack located in a bad neighborhood in Los Angeles is valued at over $1,000,000, something is obviously really friggin’ wrong. And when mortgage prices go up, so does the price to rent those properties.

So now that pretty much all real estate across the country has lost nearly a third of its value over the last two years, some of us can go back to fantasizing about someday actually owning a home.

I tend to agree that prices were out-of-control.  It was always amazing for me to talk to people moving to Tennessee from California because one of our 1200 square foot homes would run about $120,000 to $150,000 - depending on the location.  There, the house would cost ten times that amount which made me shudder and KNOW that I could never afford to live in California.

What else has the recession killed?

• It’s killed a lot of business for builders. We hear every month about the latest one to declare bankruptcy.
• It’s killed a lot of jobs for people.  Even Realtors.  A colleague told me this week that they haven’t made their mortgage payment yet for August.  It’s the 27th.
• It’s ruined the trust people generally feel for government. Oh wait… that happened a while back.  (Just kidding, Mr. Fed. Don’t come after me!)
• It’s VASTLY slowed commercial and retail growth.

The good things the recession has killed?

• Overeating in some cases because people can’t afford to go out, splurge.
• Excess spending … I don’t drive as much, I turn off all the lights when I don’t need them, I drastically limit my shopping.
• I drive more safely.  I can’t afford a speeding ticket!

What’s different where you are?