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The Housing Trap


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2012 Sep 18, 8:53am   211,265 views  261 comments

by Patrick   ➕follow (61)   💰tip   ignore  

http://www.amazon.com/Housing-Trap-Buyers-Captured-Yourself/dp/1479156213/?tag=patricknet-20

It's $12.50 so that if you buy two (makes a great gift!) then you don't have to pay any shipping charges.

Here is the table of contents:

Trapped! 8

  Can't Sell 9

  Can't Pay Off Mortgage 10

  Must Keep Obeying Boss 10

The Conspirators 12

  Your Agent 12

  Your Mortgage Broker 18

  Your Bank 18

  Fannie And Freddie 19

  The Federal Reserve 20

  Newspapers 21

  The NAR 23

  Congress 24

  The President of The United States 25

  Current Owners 25

  Your Boss 26

  Your Parents 27

  Your Wife's Parents 27

  Your Wife 27

Fallacies and Fantasies 30

  Appreciation 30

  Building Equity 32

  Renters Throw Money Away 34

  Tax Deduction 37

  Real Estate Is Local 39

  So Little Supply 40

  So Many Buyers 40

  Foreigners 41

  House Prices Don't Fall To Zero 41

  Supply And Demand 42

  Land Shortage 44

  Fundamentals Don't Matter 44

  Commissions Don't Matter 45

  Agents Don't Care What You Pay 46

  My Neighborhood Is Different 46

  You Have To Live Somewhere 47

  Rentals Not Available 48

  Rentals All Suck 48

  Owners Can Remodel 49

  But The Newspapers Say... 50

  But The Appraiser Said... 51

  Home Sweet Home 52

  Status 53

  Affordability Is Good Now 53

  Owning Limits Your Monthly Payment 54

  People Buy On Emotion 55

  Baby Needs House 55

  I Just Want It 56

Scams and Dirty Tricks 58

  Realtors® Claiming They re "Free" 58

  Claiming That You Need An Agent 60

  Showing You The Ugly Dogs First 61

  Underpricing 62

  Missing Price 64

  Missing Address 64

  Renting Property Without Permission 65

  Straw Buyers 65

  Faking Comps 66

  Faking The Dimensions 67

  Faking The Sale 67

  Erasing Price History And Relisting 68

  Faking Higher Offers 69

  Hiding Your Low Offer 69

  Taking Bribe To Hide Your Offer 70

  Hiding Offer To Get Double Commission 70

  Hiding Offer To Get Seller To Take Loss 71

  Photoshop 71

  Advertising Agent Instead Of House 71

  Kickbacks 72

  Bribes 72

  A Trick Of Your Own 73

What Should You Do? 75

  Be Paranoid 75

  Never Sign Any Agent Agreement 75

  Never Reveal Your Price Limit 77

  Hire Your Own Independent Inspector 78

  Favor FSBOs 78

  Do Not Rush 80

  Do Not Overpay 81

  Deliver Offer To Seller Personally 83

  Pay Cash 84

  Long Term Lease 85

  Walk Away 85

  If You're A Realtor® 87

Calculating Fair Price 88

  Two Kinds Of Rent 89

  Borrowing Does Not Help 91

  Downpayment Doesn't Help Much 91

  Conventional Mortgage 92

  Deduction Doesn't Help Most People 93

  Appreciation Is Uncertain 95

  Taxability Of Gains 96

  What About Leverage? 97

  What About Inflation? 98

  Rules Of Thumb 99

  Anything else? 101

Long-Term Solutions 102

  Call Housing Inflation What It Is 102

  Help Correct Reporters 103

  No Public Guarantees For Private Debt 104

  No Mortgage Interest Deduction 105

  Public Bids On Housing 107

  Legally Binding Offers To Sell 108

  Eliminate Comps As Meaningless 108

  No Empty Houses 109

  Publicly Financed Elections 110

  End Proposition 13 In California 111

  The Georgist Land Value Tax 112

  Spread The Word 113


Comments 1 - 40 of 261       Last »     Search these comments

1   MAGA   2012 Sep 13, 12:51pm  

How about releasing it in Kindle format?

2   Patrick   2012 Sep 13, 12:52pm  

No Kindle yet. I like the idea of it being something that can't just go poof, and that can be loaned to other people. How do you loan a Kindle book to someone else?

3   MAGA   2012 Sep 13, 12:56pm  

Kindle does not have the loan functionality, Barnes and Noble Nook does.

4   taketheplunge   2012 Sep 13, 1:00pm  

Kindle has added a lending library for Prime subscribers.

http://www.amazon.com/gp/feature.html/?docId=1000739811

5   JodyChunder   2012 Sep 13, 1:00pm  

jvolstad says

Kindle does not have the loan functionality, Barnes and Noble Nook does.

But in a pinch, you can't wipe yourself with either...well, maybe once.

6   MAGA   2012 Sep 13, 1:10pm  

taketheplunge says

Kindle has added a lending library for Prime subscribers.

http://www.amazon.com/gp/feature.html/?docId=1000739811

Cool. I did not know about this.

7   LarryPatrickMaloney   2012 Sep 13, 4:00pm  

Awesome! Congrats Patrick!! I'll refer all my friends who are thinking of buying a house.

8   raindoctor   2012 Sep 13, 6:06pm  

Ordered 1. I will get it by Monday. I think we all should write reviews on Amazon, so that the book can get placed on the top of the list if one searches there.

9   curious2   2012 Sep 13, 6:41pm  

Bought one, I look forward to reading it and/or giving it to a friend who has been looking to buy a place in the Bay area.

10   colins   2012 Sep 13, 11:39pm  

Love this, don't forget to do an Audible copy.

11   Patrick   2012 Sep 14, 1:56am  

Thanks, I had not considered an audible copy. You mean just sell an mp3 that people can listen to in their car or on their iPod?

12   Goran_K   2012 Sep 14, 2:21am  

Patrick! Congrats. Man, you work fast.

Is this self-publish deal a lot better than the O'Reilly deal you told me about over e-mail? (royalty percentage, etc)

13   Patrick   2012 Sep 14, 2:26am  

Squatting in East CoCo says

Ordered. $16.49 with shipping.

Thank you! Damn, that shipping cost is too high. Don't know what I can do about that, though if you ordered two splitting the cost with a friend, it would be $25 total and you'd pay no shipping because that just barely hits the Amazon free shipping threshold.

Squatting in East CoCo says

I hope you get a big cut of the proceeds.

I should get $5.26 per book sold.

Goran_K says

Is this self-publish deal a lot better than the O'Reilly deal you told me about over e-mail? (royalty percentage, etc)

Yes! Far far better. My O'Reilly book retailed for about $40, and I would get only $1 from that. On the other hand, O'Reilly has great editors and distribution channels, so they do provide value. For my own book, I had to do pretty much everything myself, except for the cover, which an excellent artist who happens to be a Patrick.net reader created for free for me. If I make any money from this I will be sure to send him a cut.

14   colins   2012 Sep 14, 2:33am  


Thanks, I had not considered an audible copy. You mean just sell an mp3 that people can listen to in their car or on their iPod?

.
.
.
.
You could do an mp3 copy, but you open the door to Piracy. I would use this http://www.audible.com (it probably more secure) I would also have a kindle copy.

.

15   joshuatrio   2012 Sep 14, 2:41am  

Patrick - could we order from you directly? You could make a few more bucks ?

16   leo707   2012 Sep 14, 2:44am  

Just put in my order as well.

With the prospect of having 4 parents/in-laws needing nursing home care within the next 5-15 years I got free shipping by ordering elliemae's book with it:
http://www.amazon.com/gp/product/1463592604/ref=ox_sc_act_title_2?ie=UTF8&smid=ATVPDKIKX0DER

17   Patrick   2012 Sep 14, 2:45am  

I'd make about $6 if I sold it myself, but then I'd also have to deal with the sales tax issues and shipping, so the extra dollar doesn't seem worthwhile.

Amazon does make me slightly nervous though. How can any author ever tell if Amazon and the printer are reporting the right number sold?

18   Patrick   2012 Sep 14, 2:47am  

leo707 says

Got free shipping by ordering elliemae's book with it:
http://www.amazon.com/gp/product/1463592604/ref=ox_sc_act_title_2?ie=UTF8&smid=ATVPDKIKX0DER

I highly recommend elliemae's book if you're ever in the situation where you need to arrange a nursing home for someone. I helped her edit it after she helped me with very good advice about the system when my mom had to go into a nursing home because of a brain tumor.

That whole situation also opened my eyes to how everyone is in danger of financial ruin from our medical system all the time, insured or not, because our laws are so corrupted by bribes from the AMA, big pharma, the insurance companies, etc. In no other industrialized country are people so openly robbed to pay off ridiculously overpriced medical care.

19   leo707   2012 Sep 14, 2:48am  

raindoctor says

I think we all should write reviews on Amazon, so that the book can get placed on the top of the list if one searches there.

I agree. A good review is worth much more than the $5/book.

20   FortWayne   2012 Sep 14, 2:49am  

Bought one for my wife and I today. Looking forward to reading it.

Thanks Patrick.

21   leo707   2012 Sep 14, 2:52am  


I highly recommend elliemae's book if you're ever in the situation where you need to arrange a nursing home for someone.

Yeah, hopefully my need for the book is several years out, but it has been on "to get" list for a while. Also, it seems like the kind of stuff you should know before needing it.

Seemed like a good way to get free shipping.

Well...other than ordering another one of your books.


I helped her edit it after she helped me with very good advice about the system when my mom had to go into a nursing home because of a brain tumor.

Sounds like you should write a review for her book ;)

22   Patrick   2012 Sep 14, 2:55am  

leo707 says

Sounds like you should write a review for her book ;)

Good idea! Will do.

Darrell In Phoenix says

Did you chronicle the housing whores here and their lies?

I think you'll really enjoy the "Scams and Dirty Tricks" section.

23   epinpb   2012 Sep 14, 3:02am  

Just bought on in appreciation of all the work you have put into this site.
Thanks for spreading the TRUTH!

24   raindoctor   2012 Sep 14, 3:08am  

I paid 0 for shipping, since I have Amazon Prime membership. FYI: "Amazon.com Inc. said it now ships more items under its Amazon Prime
membership program than under its free Super Saver shipping option."

Amazon Prime paid off itself for me, as I bought few stuff there like brake pads, timing belt, etc.

25   🎂 RentingForHalfTheCost   2012 Sep 14, 3:09am  

Wow, you are quick. Just ordered 2. I'll leave one sitting on the coffee table in my next open house I check out in the BA. ;)

26   crazydesi   2012 Sep 14, 3:10am  

Bought one. I have prime so free shipping. Today is the last day for no tax on Amazon for CA residents.

Keep up the good work Patrick.

27   🎂 RentingForHalfTheCost   2012 Sep 14, 3:10am  

raindoctor says

I paid 0 for shipping, since I have Amazon Prime membership. FYI: "Amazon.com Inc. said it now ships more items under its Amazon Prime

membership program than under its free Super Saver shipping option."

Amazon Prime paid off itself for me, as I bought few stuff there like brake pads, timing belt, etc.

Wanna secure your future? Become a locksmith!

You just need to have a kid and once you sign up for Amazon diapers you are automatically upgraded to prime. Kind of a shitty way to get there though. ;)

28   Goran_K   2012 Sep 14, 3:20am  

Darrell In Phoenix says

Mr. Patrick,

Did you chronicle the housing whores here and their lies?

Darrell, you should have written a guest chapter "Inventory is growing. Prices are falling."

29   FunTime   2012 Sep 14, 3:25am  


How can any author ever tell if Amazon and the printer are reporting the right number sold?

Pick your worries.

Congrats on the book. I'm buying one for my wife. Think she'll take it as the missing anniversary gift from this year?

30   raindoctor   2012 Sep 14, 3:32am  

Patrick,

You should let users preview a few pages of the book on Amazon. Searching for some phrase will help one to see your book. If some one is searching for "Realtor(r) scams", one can see your book right away.

31   Patrick   2012 Sep 14, 3:56am  

Yes, I've applied for the Amazon "Look Inside" program. I'm kind of surprised it wasn't automatic. Waiting for Amazon to reply about that.

32   curious2   2012 Sep 14, 4:14am  


How can any author ever tell if Amazon and the printer are reporting the right number sold?

Perhaps I'm gullible but I wouldn't worry too much about Amazon there. Secret sales were a problem in cash businesses with little tracking, for example certain rock concert promoters were notorious for printing and selling extra tickets for cash and then not paying the performers for those secret tickets; savvy artists learned to station their own security guards at all entrances to double-check tickets and to count manually with clickers to see how many tickets arrived vs how many they had been paid for. In contrast, Amazon has electronic records, and the shippers have records, and the credit card companies have records; all of these are available via subpoena if a whistleblower alerted a copyright owner or class action attorney.

A larger issue is managing the shelf life of your book. Copyright has become ever longer (due to Disney lobbying) but books aren't just about $, there can be a tradeoff between revenue and relevance. Sometimes you might want to promote sales for financial reasons, other times distribution for relevance and exposure, which might drive more sales or something else. Occasionally certain Harry Potter books were sometimes given away to promote the other books or the movies, for example. You might want to read about the strategy of when to offer an electronic edition, and how much of it to make free.

33   Patrick   2012 Sep 14, 4:21am  

Yes, Amazon is probably OK. Just thinking about all the scams in real estate makes me paranoid in general.

I'm ambivalent about copyright. I'd be pissed if other people copied my book to make money from it, but if people want to propogate the ideas in the book because they believe in them, then I'd be flattered. I give explicit permission to copy 1,000 words to any website as long as it has a clickable link back to Patrick.net.

I just got a book out of the library on book promotion. I'm sure I have a lot to learn.

34   Robber Baron Elite Scum   2012 Sep 14, 4:44am  


except for the cover, which an excellent artist who happens to be a Patrick.net reader created for free for me.

ApocalypseFuck, could have also created an excellent cover for you as well.

Let's wait for ApocalyspeFuck and see what he has to say about this release. I'm sure he would be very excited and happy to see this book available.

I wonder what the National Association of Realtor®'s reaction is going to be. The expression on the Realtor®'s face when they see this as the #1 seller in the housing market section at Amazon and eventually in book stores.

Let's hope this book insitigates Neo-Nazi Cannibal Anarachy on Realtor®'s and mortgage brokers.

http://www.youtube.com/embed/3LjMNW3f1P4

http://www.youtube.com/embed/WywDQkxXf8Y&feature=related

?w=227&h=300

35   Robber Baron Elite Scum   2012 Sep 14, 4:48am  

Will the National Association of Realtor®'s try to sue Patrick for bogus accusations of slander, libel and defamation against their Realtor®'s and Brokers?

The attempted censorship of this book will be because of the ensuing Neo-Nazi Cannibal Anarachy that will be imminent against Realtor®'s and Brokers.

36   curious2   2012 Sep 14, 4:58am  

Robber Baron Elite Scum says

The attempted censorship of this book

...is why I bought a printed copy ASAP.

38   Robber Baron Elite Scum   2012 Sep 14, 5:06am  

Patrick curious2 says

...is why I bought a printed copy ASAP.

Good. Because Adolf Hitler is pissed off after he read the book.

Hitler has just officially declared Neo-Nazi Cannibal Anarachy against Realtor®'s and Brokers.

THEY WANT TO EAT REALTOR® MEDIUM RARE STEAK FOR DINNER TONIGHT!!!

39   Robber Baron Elite Scum   2012 Sep 14, 5:12am  

?ts=1347649455

40   Robber Baron Elite Scum   2012 Sep 14, 5:16am  

?w=500&h=727

?w=500&h=358

?w=500&h=387

?w=500&h=373

?w=500&h=352

SHIT HIT THE FAN INTO REALTOR® NEO-NAZI CANNIBAL ANARACHY!

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