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Discussion in 'Florida Lawn Care Forum' started by Landscape Poet, Nov 23, 2011.
I figure in less than a year we will have someone new to ***** about.
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Wow did I hit nerve or what. It just goes to show you how our county is falling apart.
I mispelled that bafoon of a presidents name on purpose.
It will not matter much if the party numbers stay similar and they continue to work against each other and us.
Another thing that IMHO must be addressed is the housing market - I do not for see the market rebounding or consumer confidence being great, until the average homeowner which is underwater with their mortgage through no fault of there own in a lot of cases, is assured that it is best not just to walk away from their home, hence creating a further decline.
Here is a example that I not afraid to share. My home at the time of purchase was $287,000 roughly. I put 20% down without issue as I could and still can afford this home without a issue. But here is the problem. Because of all the failed mortgages - my home is now accessed at roughly $167,000 to $187,000 depending on whos numbers you use.
With that said I have no intention of leaving my home and defaulting on my mortgage as I stated I can make the payments and enjoy my home. However, here is the problem. I am continuing to make a payment on a $187K home in the amount of a $287K home payment. From a business standpoint this simply does not make since. If I was looking at it from a business standpoint only - this investment would be cut. Here is were it gets interesting. In the my community/subdivision which has maintained itself well through this and foreclosure are not generally on the market once actually put on the market, I know several people who have entered foreclosure on their properties. The avereage time it takes the banks to actually have them removed and leave the property from the date they stop making a payment of any kind, 2.5 to 3 years.
Now, not all people would view this as a business deal as I do, and many more will share the value in honoring ones debts as I do as their mentality towards this is rather a old school form of thinking I believe.
For those that look at it in a business form they have a lot to think about. If I were to stop making payments on my home today - I know that it will on average take 2.5 years for them to remove me from my property because the banks are so back logged, in many cases they are not even sure who owns the property because of the pure volume on the market in FL especially.
So know I know I am living 2.5 years for rent free no house payment if I walk away. Some of my living expenses that are home based do not change as it is is unlikely that I will not use less electric than I currently do, I will most likely not change my cable program selections, my taxes for property however, well why would I pay them, the state can fight the bank for that out of my 20% plus deposit I put down if they like. I am not paying HOA dues - there is another $1600 a year in my pocket. Why the hell would I water the turf - I do not own this property - savings on the light side $25 a month and most would save much much more. Property improvements or repair upkeep - ummm not giong to happen.
So now that we have some of that covered - guess what - since I view this simply as a business venture - I bank all that savings from not doing this things or making that payments/dues. So I am putting lets go conservative and say $3K a month into a savings account.
Two and half years later.....many other people finally figured out there home is essentially just another business venture in life and did the same thing I did. The market value of the same style home I was living at in my community is now $129K because of the inventory on the market and the banks are overwhelmed. All hell as broken lose in the FL marketplace and I will benefit.
You see by saving that 3K a month while living rent/payment free - I have saved $108K without doing anything extra. Yes my credit history is flawed because I defaulted on my mortgage ...but guess what. The bank simply does not give a Sh*t when I walk in with $108K cash down on a $129K property. Hell they are still to this day giving lawn turds without a lick of business since 0 down loans on brand new $40K trucks to pull there lawn trailer with, you think they will not give me a loan for that house?
Moral of this part of the story - somebody fix the housing market or we are all going to be f8cked as it will not be long before many more will essentially figure out what I have known - being a honorable guy is not always profitable and if they choose not to be and simply do "business" we will see another wave of inventory on the market.
So now that we know what the first issue is - lets move on to the second issue.
Imports - How will we ever create jobs here again for our growing population if we continue to be in competition with other populations that are willing to work more than 40 hours a week in unideal conditions for $2K a year.
We have to find a balance in trade tariff (sorry Tea party folks) so that it balances out the differences or some other solution. If not we will continue to see decline there is no other way about it. I know many many of you will say simply buy American which sounds great...but the product selection has to be available to be purchased from a American producer first. We just expereienced "Black Friday" - which is a huge consumer day in the market place. Guess what most of the big ticket items were. Electronics. Guess what there is a very limited selection to purchase from American Made companies - that is right Electronics. Essentially - we just had a holiday of sorts where we gift wrapped a huge pile of cash with a ribbon - sent it to asian countries were people are happy to work for $2K a year. Merry Christmas to them.
Lets face it - the quality is most likely not going to last as long for example on a TV -the life expectancy of a modern TV is 7 to 8 years according to some statistic I recently heard. At that cost you are spending less than $100 a year in many circumstances on your TV...so when your American Repair man comes to fix it on year 7 - he wants to charge you 6 hours labor at $60 a hour and $200 in parts for a total of $560...the choice is simple ....you simply go to the store and replace your asian made TV with another Asian made TV for a few more hundred if that at this rate for less and the cycle will continue.
Last but not least - Petro prices.
This economy runs on it, lives on it, gobbles it up, can not make it with out it. Every one of us as business owners should be able to see the cost increase we have faced in the last 4 years - let a lone the last 20 when we were buying a gallon for roughly $1.
Now at first thought you may say yes gas is a important part of my business but not that much in the scope of things. But think deeper - every aspect of your life has increased a cost of living/doing business in recent years because of the rise in petro cost. From fertilizers, to the cost of your parts at the mower shop, have your tried buying tires for your truck (which I might add are most likely made outside the states now or by a foreign company). Hell my milk prices have increase significantly at home in the last 3 years, same goes for just about any other consumer good in the market place, and much of the cost increases were brought about from either actual needs or perceived cost increases in business supplying those goods. This is one of the things that frustrated me a little when everyone is worked up over taxes alone. My taxes suck - but they are only part of the issue here- the price of gas, my real estate situation, my grocery bill - those are issues I see everyday and am concerned about more. IMHO these need to be addressed.
One last concern - Got sick this past week. Have insurance. Nobody wants to confront the high cost of medical care anymore. My wife also got sick. Me bronchitus and her a head cold with swollen throat to the point it hurt to eat.
Cost are as follows.
Office visit deductible = $50 X 2 = $100
Cost of Medication AFTER insurance = $60 X2 = $120
$10 X 2 = $20
$45.63 X 1 = 45.63
Total visit cost for us with quality insurance = $285.36
Again this is with insurance. I know that my income is a quality one that many households do not have and can only imagine the impact that a unexpected office visit like this could have on others household budget, especially this time of year when cash outflows are swift and great it seems.
Now my point of this. The medicine that cost $60 each after insurance for a 30 day dose. Retail cost was $186.00. I am for a profit margin in all business buy all means - but this cost seems a little extream. I mean a weed farmer in Mexico can deliver a dime bag to me for - well a dime. So my question is why can this Mexican grow his product from start to finish, travel thousands of miles, pay labor to do all the processes from harvest to delivery.....and my local big pharma dealer can not seem to do this? There is profit - then there is greed if you ask me and Big Pharma does need a reality check.
To support my opinion here. My next door neighbor works for Merck. Reps three drugs. His monthly lunch allowances are well over $2k each month. He gets a new ford car every year, brand new, at no cost to him which he is also allowed to use for personal use as long as no other passagers are in the car other than merck employees. Nice business practice I guess but one I know most likely contributed to my $185.36 in prescription bill yesterday. My point about this rant- political figures on both sides of the aisle are not representing you and I as much as they are Big Pharma these days nor have they for awhile. Why is that? That is one of the few things that most of them can agree on these days, they like political money. While there, how come most politicans are allowed to use sensitive inside information they gain access to from their position in the market place and essentially legally inside trade?
So the point of this whole rant - It is not Obama - not alone at least. Both sides of the aisle are screwed up and as a result - so are we. It does not who arrives in office next if these types of behaviors continue and these type of issues are not addressed IMHO. As I can almost say for certain if they are not we will all be sitting here debating the same kind of stuff and blaming someone, the difference is that some of us may be doing so from a old dial up line as that is all we can afford after our bills, others of us might be doing so from a new home, and some of us could potentially doing so extreamly sick or ignoring our symptoms as we can not truly afford the prescription cost and medical office visits.
Thats just my two cents....
Wow, give you a pot of coffee, a keyboard and look what comes out. My neighbor pulled a good one. Got his house for 250 in 08. Never made a payment. Saved his payments like you said. 3 yrs later at the last minute he agrees to a short sale. His father inlaw takes the money that was saved and buys the house outright for 56k. Quit claims it back to his son in law. He never moved. Risky? Yes. Timing was everything.
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Price of 08 Home = $250,000
Price of using your father-in-law and your noggin = Priceless
Where is MY "stimulus" check?
All I do is write them to support politicians, overpaid government workers, slackers and illegals.
I thank GOD I still have work and some money left over... for now.
This is America, we don't re-distribute wealth, we earn it!
But tell us how you REALLY feel Michael...
I usually do tell you all how I feel, might be pent up for awhile but it usually will make its way to the board in some shape or form !
As far as the redistribution of wealth - there appears to be plenty to go around I guess. I went black friday shopping with my wife over the weekend. We went to one of the outlet malls here and I keep seeing people walking around with these bags from a store called "True Religion". I had not heard of this place and inquired with my wife. She had not heard of it either so we went to inspect why all these people were carrying merchandise from this store, there must be something going on that a simple lawn turd like myself could afford there since so many people were carrying abundent amount of these bags. We arrived at the store front several hours after the opening of the stores - there was still a line way the heck outside of the store! Interesting but I am not waiting to see I tell my wife...I am good on jeans. She heads down yesterday to check out some other stuff, stops in to this store. They sell jeans for $328 a pair. That is right, that is not a typo. For this weekend only you could get them for half off. Now I am not saying that I am the most loaded lawn turd on this board but I would say I make a very comfortable living and I sure as hell would never pay $160 for a pair of jean let alone $328 - not going to happen
Someone needs to redistrubute some of these idiots wealth my way. I guess I should of handed out business cards to these folks - they would surely see the value in a $900 pallet of sod I would think or paying $35 a K for my L and O guy
That place is crazy. You can also get a 175 dollar belt to go with them. C'mon Mike all the fashionable lawn turds will be sporting them. You gotta keep up image even as people continue circling the drain.
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I will keep my $10 khaki cargo shorts from wal-mart and bank the other $165