Weekly Survival Real Estate Market Update

Doubling Up Before the “Crunch”
This is a unique time in survival real estate. Never before have we seen so many people actually wanting to purchase a family retreat for the coming hard times, but as last week’s update alluded to, most people are struggling to complete their purchase due to the lack of capital, usually because a current real estate asset has yet to sell.

These times call for more purposeful thought and planning in order to come up with a solution. One idea is to bring two or more like minded families together in order to increase their buying power and their odds of survival when the retreat is activated. Although the monetary side of such a deal is delicate, it can usually be worked out with simple terms and conditions put down on paper, it is the personality issues that become exponentially diverse and could pose a major problem that may lead the parties to regret such a partnership.

One solution for someone who cannot immediately move and has a trusted friend or family member who is like minded is to purchase a retreat and move that person onto the property as a caretaker. This person(s) would have their ‘rent’ reduced such for such activities as ground maintenance/improvement, receipt/inventory and storage of supplies shipped to the retreat (off site delivery is recommended), building of additional structures and emplacements and a myriad of other daily activities to keep the retreat in tip top shape. A spin-off of this would be two or three families purchasing a larger retreat and move the caretaker (who may or may not be one of the buyers) onto the property for services rendered.

In today’s world of reckless abandon it is an idea that some will consider absurd, but it is a solution that with careful thought and planning can be a life saver in the future. There are many parcels that are out of reach for the average buyer, but with several families in concert together they can purchase more acreage, many with multiple dwellings or a single main house that will someday become the retreat’s ‘lodge’ once everyone builds their own home on the land.

For example, there are several parcels for sale northwestern Montana in great locations that have good acreage and are already set up for two families, having multiple dwellings with plentiful water, sun exposure and defensible terrain but run above $750,000. That is out of reach for the average buyer, but perfect for two or more families willing to ‘double up’ for the hard times.

So, logistically this solution is fairly easy to coordinate and pull off. Now, to tackle the issue of ‘who’ do you choose to double up with and how. Most preparedness minded people are low key and may not have friends that share similar views so they will be stuck trying to find someone in the dark. Well, the best advice is to find another person or family that shares similar views on critical issues, especially moral and ethical values. As to where you would meet them, who knows, maybe you have overlooked some folks at your local fellowship or home school group, give it some careful thought and put it to prayer, God will lead you. – T.S.

Odds ‘n Sods:

From The Independent: Only £4.4m left to protect UK’s bank deposits

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There is an interesting topic posted over at The Mental Militia Forums (formerly called The Claire Files), about the tremendous gains in the price of Rhodium in the past five years. Obviously, somebody made a lot of money. (FYI, it wasn’t me. I was very conservatively invested in silver and gold.)

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Pets being slaughtered in meat-starved Zimbabwe. Zimbabwe is now truly in crisis. 80% unemployment. An average life expectancy of just 37 years. The inflation rate is continuing to increase–some analysts predicts a 100,000 percent annual rate by the end of 2007.

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Courtesy of RBS, from U.S.News & World Report: Bozeman, Montana Locals Worried About Wealthy Newcomers

Note from JWR:

I recently had the opportunity to do some on-site consulting with a client that owns an elaborate retreat in Eastern Oregon. I really like the region, since it is wonderfully remote. The upper elevations have copious timber and wild game, and fairly plentiful water.

Half of the fun of my Oregon trips is poking around county history museums and graveyards. I’m distantly related to David Lawson Shirk, one of eastern Oregon’s early cattlemen. (See the book “The Cattle Drives of David Shirk.”) Shirk was involved in a much-publicized range war with cattle baron Pete French (of the famous “P” Ranch), in the Steens Mountain country–in the southeastern corner of the state. The whole affray started with a quarrel over the affections of a young lady, Miss Frances Crow. (She was my great-great aunt.) David Shirk won the lady’s heart, secured his stock watering rights, and a few years later he won a gunfight with one of Pete French’s hired men. (Later, Pete French died in an unrelated gunfight.) One could conclude that for serious social interactions–involving ladies and lead–that there are no second place winners.

Letter Re: Running Chainsaws on Ethanol & Home Alcohol Production Stills

Hello,
[As a follow-up to the letter about running gasoline engines on alcohol:] In case you don’t know it, most gasoline engines will also run on kerosene. No jet changes, all you have to do it adjust timing. Many small engines like generators and such made by Kohler and Briggs and Stratton have an adjustable timing ring. Many have markings for [setting] use to for gasoline or kerosene. It works well. Now to tell you the truth, I never tried it in a car engine. Though generally what works in small engines should work in a car, and yes, you still need the spark plug to ignite it.. I’m not sure what the power loss is, though something safer then alcohol. and fewer permanent modifications..You can store a lot of kerosene [more] safely then gasoline and alcohol. – ka3ffy

JWR Replies: From what I’ve read, only low compression gasoline engines will run on kerosene without considerable modification. Coincidentally, the following is a snippet of from the oral history of my grandfather, Ernest E. Rawles, recounting his experiences when he works as a surveyor for the New Cornelia Copper Company in and around Ajo, Arizona, early in the last century. Note that a 1916 Ford truck would have had a low compression engine:

“To get there, [to Hat Mountain] we went on Mr. Gibson’s truck. It was a delivery truck. a Ford, stripped down. It was hard to get gasoline in Arizona in 1916. He used to run it on kerosene, if you can believe that. As long as he could keep it hot, he could get it started all-right. Once he got it started, he kept it started.”

Letter Re: Information Security Considerations When Selling a House with “Special Features”

Mr. Rawles-
I truly enjoy and appreciate your site and hope to soon be able to express that with a [10 Cent Challenge] commitment.

Perhaps one solution to the marketing of property with “special features” would be a multi-layered approach to advertising and responding. First present the property with a limited description such as general location and non-specific amenities using descriptions such as “special”, “hardened”, if appropriate and perhaps a philosophy statement and pricing that would lend a sense for the property without risking over-exposure. Interested parties could pursue a phone interview or email exchange to determine actual depth of interest, still without disclosing critical specifics. Truly interested parties would then be requested to sign a non-disclosure agreement for any further detailed information or before a visit, with a remedy statement in the event of inappropriate disclosure. This would serve to filter the less-than-serious, serving both parties and help protect both the seller and prospective buyers from over-exposure. It’s not foolproof, but it could help provide some protection.

I don’t think anyone serious about such properties would mind the extra steps and anyone unwilling to sign is unlikely to be a safe prospect anyway. In fact, this could be a way to do business in this kind of real estate on a larger scale. Using such buffer instruments could be a requirement to participate in any 2nd or 3rd tier prospecting for any properties listed as retreats. This could save everyone, including the list or, some legal headaches if a buyer or seller wished to get picky about a transaction gone bad or a revealed retreat. While I must admit I haven’t the faintest idea about the SOPs of your listing process, I would have concern that this could get sticky and would hate to see you or anyone acting in good faith get hurt. Indemnification of you and those taking the risk of listing or presenting is merely prudent and, I think, not at all inappropriate.

Keep up the good work. Best Regards, – Randy G

Odds ‘n Sods:

US Dollar Trades Near Record Low Against Euro Before Durable Goods. When I checked last, the US Dollar Index was down to 78.56. Some analysts suggest 75 or perhaps even 72 as the next support level.

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Dr. Gary North asks: Has the Fed Lost Control Over Money?

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From The Boston Herald, by way of SHTF Daily: Despite Fed cuts, mortgage rates rise

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Stephen in Iraq sent us this: Subprime Panic Freezes $40 Billion of Canadian Commercial Paper

Jim’s Quote of the Day:

"The real trouble with this world of ours is not that it is an unreasonable world, nor even that it is a reasonable one. The commonest kind of trouble is that it is nearly reasonable, but not quite. Life is not an illogicality; yet it is a trap for logicians. It looks just a little more mathematical and regular than it is; its exactitude is obvious, but its inexactitude is hidden; its wildness lies in wait." – G. K. Chesterton

Note from JWR:

I’m planning to have a table at the Great Falls, Montana Gun Show this coming weekend. (September 28-29-30, 2007). It is a very long drive for me, so I hope that it is worth the expense. (High gasoline prices have curtailed my travel schedule considerably.) I will be bringing lots of books and some full capacity magazines. For a list of most of what I’ll have with me, see: my catalog page. The show is at The Four Seasons Arena. To spot my table: Look for a blue table drape and a stack of copies of my novel “Patriots”, as well as the usual implements of liberty. I hope to see some of you there!

Letter Re: Information Security Considerations When Selling a House with “Special Features”

James
May I give an anecdote about being very careful about the hidden value/risk of shelters and other preparations when selling a property.
In Portland, Oregon a person I know purchased a property which after closing was revealed to have a medium sized manhole entry type fallout shelter in the back yard. This person was quite annoyed to have what he considered a dangerous hole and had it filled in by a cement pumper and the doors and frame broken away and sodded over, after documenting the total costs he filed a lawsuit against the seller for reducing his property value by not disclosing the shelter. The buyer was raised in a British Commonwealth country and considered survivalist preps to be an American illness. You can expect many Americans to share this opinion and they may consider you strange or paranoid. So, for some buyers, you might unfortunately see your expensive preparations become liability when selling a property. – David in Israel.

Letter Re: Peace of Mind Through Systematic Preparedness

Dear James and SurvivalBlog Family:
Thank you for this tremendously vital preparedness forum. It has been the direct impetus for me to seriously prepare to survive various natural disasters that could assail the New England area, but more importantly, to be prepared for the inevitable TEOTWAWKI situation, which I expect, we will face within a decade, as soon as the oft-predicted Winter Solstice of 2012–Which still leaves us plenty of time to prepare, if we only make that crucial decision to begin (or to enhance) our preparations and remain steadfast in our intentions to survive whatever may come our way.
For the newer SurvivalBlog readers, and those just becoming interested in survival and preparedness activities, I say, do not be overwhelmed by the enormity of that which you feel you need to do to be get yourself reasonably “prepared” or anywhere near as prepared as others that have been preparing for a long time. Make the decision to prepare for survival and methodically acquire the basic food, water and equipment you will need to handle any emergency situation, short or long-term.

I am a charter 10 Cent Challenge SurvivalBlog subscriber and I enclose two $5 rolls of silver dimes to cover years two and three of my subscriptions (2007 and 2008). In addition, I have enclosed a boxed silver round medallion that commemorates the 1975 Bicentennial of the Battles of Lexington and Concord . Paul Revere is featured on the medal’s obverse with the words “American Revolution Bicentennial” and “The Shot Heard Round the World”. Please accept this coin as a token of my appreciation for all you have done for me and your other readers, in the name of survival and preparedness—for your tireless, Christian efforts as a true American Patriot–an honorific you have so justly earned. Keep up the good work and may God bless you and your family!
I have been an avid reader of SurvivalBlog for over a year and a half and have learned a tremendous amount of valuable insight from [Mr. Rawles] and the many outstanding contributors to SurvivalBlog. Not a week goes by that I do not receive valuable preparedness advice and tips to add to my store of knowledge.
I am proud to say that I have made a deep, personal commitment to change my life’s focus from a wasteful, spendthrift mode, bent on acquiring so many useless things and squandering cash on drinks, gambling and other frivolous entertainment, to a conservative mode, investing the bulk of my discretionary income in durable goods, firearms, ammo, long-term bulk food, silver and gold coins, a generator, and the like.

At the beginning of 2007, I resolved to eliminate all discretionary purchases that were patently unnecessary. Socks and underwear are okay, no CDs or movie rentals. Less fast food and daily coffee’s, and no impulse eBay buys, etc… Rather, I have been earmarking (budgeting) a substantial portion of my discretionary income for stocking my “pantry” and procuring key survival supplies and equipment. Having recently finalized my child support and alimony commitments (ensuring that my ex-wife could keep the house), I have had been fortunate to have a significantly larger amount of money to “invest” the past six months and now going forward.

Each month, I buy at least $200 worth of silver or gold coins (mostly silver). I have amassed nearly $750 in face value junk silver coins (although I do not consider them “junk” by any means) and nearly 5 ounces of [fractional] gold coins (mostly American Eagles, Maples Leafs and Krugerrands).
Each pay period I add another $100 in reserve food stores and other basic survival gear. I have a half dozen cases of #10 Mountain House cans and will continuously add to that store a few cases a month with a goal of two dozen cases by the end of 2008.

I am pleased to have finally exercised my 2nd Amendment constitutional right to purchase and own firearms. I had never been a gun owner before 2006 as my father was never a sportsman and would not (still does not) allow guns in his house. Since I do not hunt, there was never a need for a gun or guns. That 20th century mindset has changed and I now know just how crucial firearms are in this present age of uncertainly and fear. I keep the knowledge of my guns to myself (and to my two adult sons) and am now fully comfortable to own several guns and will be buying more on a regular basis.
I have respect for my firearms and keep them safely stored (but strategically loaded). If fact, I keep a loaded .40 caliber Glock in my laptop computer bag in a secure, zippered pocket. No laptop, just files and the Glock. My bag is always with me, either in my car, office or at home ensuring that I will always be close to a weapon in the event of an emergency. While I have no concealed carry permit (and am leery to obtain one), I think I will continue to look askance at my state’s laws that prohibit one from having a loaded handgun in their immediate possession without a concealed carry permit. I’ll just risk the consequences. I’d rather be safe than sorry.
I have been averaging a firearm purchase every two months or so to include two (2) Glock 23 .40 pistols, four (4) .22 pistols, six shotguns (a Remington 870) for home defense and five Mossberg 500s for home defense/target/game, and two new Ruger .22 rifles (since I must have accumulated some 20,000 rounds of that ammo so far). I will continue to buy shotguns on a regular basis so that I am able to arm as many able bodied sons, daughters and other family members as possible (with two guns each).

Here are a few of my SurvivalBlog“Pearls”:
1. Stock up on: beans, bullets, and band-aids!
2. Live by the Golden Rule, Treat others as you would like to be treated…
3. Buy two or more of everything!
4. Pray for peace and thanksgiving
5. Buy silver (pre-1965 [US 90%]) and gold coins; an excellent way to preserve wealth for the recovery period); Take physical possession of all precious metals
6. Stock that pantry! You can never have enough food! Check those expirations dates! Rotate your stock! Donate almost expired food items to the local food pantry.
7. Buy guns, ammo and multiple magazines for every firearm! You can never have too many guns, ammo, or magazines. Try to standardize weapons and ammo.
8. Pack several bug out bags (one for each person)
9. Buy “survival” presents for your family and friends (flashlights, batteries, first-aid kits, camping equipment, sporting goods (guns) bugout bags, etc…)
10. Buy a (bio) diesel pickup truck and a small SUV for a G.O.O.D. vehicle (and consider a used U-Haul (or the like) too; also buy a bicycle for everyone)
11. Exercise, get fit, go for long walks (also food for the soul)
12. As the Boy Scouts say, “Do a Good Turn Daily” and it goes without saying, “BE PREPARED”.
13. Life is unforgivingly short! Live for each moment; get the most out of life,
14. Don’t hold grudges. Forgive everybody and give thanks to God!
15. Oh yeah, please give blood!

I plan on buying several more firearms and the next several purchases will be a mix of shotguns and a series of 9mm weapons: four 9mm pistols (Glocks) and two (or three) KelTec 2000 folding rifles (super-sweet) that use the 33 round Glock magazines (which are available for a bargain at $25.99 each at Natchez Shooters Supply). I figure a dozen 33-round mags will be a good start to outfit this part of my arsenal. Those high capacity mags work in the Glock 9mm pistols too.

[Since originally writing this letter in July, I’ve bought one KelTec 2000, one Glock 19 (9mm) and one 20 gauge shotgun]

Finally, I will look to acquire two AK-47s and two then two long-range rifles. I figure this part of my plan should take another two years to accomplish, one gun per month or two.
I consider my cache of firearms as an extremely valuable store of wealth in the face of the inevitable economic collapse. These guns and ammo will be worth as much as I paid for them, or likely even more in the future. Guns and ammo are like money in the bank (except better) and will make tremendous items for barter in a post TEOTWAWKI society.
I have stocked several “But Out” bags (for my two sons, dad and I), thousands of rounds of ammunition ($100/per month at WalMart) and many other suggested items. I have been chipping away at my extensive list and ply eBay and yard sales for many of the items that I deem essential. At present, I am prepared to withstand a month or so without power, and am primed to protect my investments, but I am not so confident about surviving a really long-term societal collapse as predicted by so many learned prognosticators. My next level of preparedness will be to survive fully three months off grid, with an eye towards a more complete ability to survive any SHTF circumstance by 2012.

I live (rent-free) with my elderly dad and am committed to staying with him in a quite pleasant coastal New England town. I work for the state in a good-paying civil service position. I have no monetary resources to relocate to a tsunami resistant, easily defensible retreat in the mid west (or abroad) and am committed to my dad who was born in this community, owns his home outright, and has absolutely no inclination of moving. Further, I run into an elderly parental mindset when I suggest basic survival activities such as drilling a simple well or installing a wood stove (forget about voice mail or a dishwasher).
I have gotten away with my ostensible preparations for a hurricane (high New England possibility) but when I expound on the potential collapse of the US economy (due to any of several likely scenarios), dad disregards my exhortations. Since I am the “baby” of the family (even though I’m 50) and am the only family within 400 miles, he accepts my advice as if I were a teenager. Therein lies the actual predicament for me.

Retreat Considerations
I need to prepare for a short, medium, and long-term siege in my existing locale. I expect that most SurvivalBlog readers find themselves in a similar, structurally restricted situation. All of my family, and my fiancé’s family reside along the East coast from New Hampshire down to South Carolina . As a result, I hope to secure a farmland retreat that will be strategically located such that immediate family members could get to the retreat by bicycle or on foot in a worst case scenario. I’ve been thinking about northern New Hampshire or the northwestern quadrant of Pennsylvania .
A topic that I have yet to see discussed in SurvivalBlog is the bugout in the Atlantic region of the country. I understand that there is nowhere along the East Coast that one can escape the fallout from a nuclear detonation in the New England or middle Atlantic region but there will many people stuck along the Atlantic coast in the event of some type of cataclysmic event. I would greatly appreciate hearing from other readers about places in rural New York/New England or anywhere along the Atlantic coast that would be suitable in the occurrence of TEOTWAWKI.

I know that the world is headed for a day of reckoning and that the United States is teetering on collapse due to decades of financial and administrative malfeasance. As a student of history and social sciences, I have always been an ardent patriot but as of late, I have come to the tragic understanding why most people in the rest of the world distrust us, and in many instances, hate us. The current administration’s brainless deficit (and mostly pork-barrel) spending, the spiraling national debt, our sole world super-power mindset, insatiable consumer demand and burgeoning trade deficit will surely land this once great nation in the scrap heap of history’s supercilious, bankrupt empires. I’ll be ready, however. Thanks, JWR and loyal SurvivalBlog contributors!

At least our forefathers were insightful when they insisted that our (appropriately silver and gold-backed) monetary instruments be inscribed with the dictum, “In God We Trust”. My one suggestion would be to go back to silver and gold coins and add the alliterative phrase “…Glocks and Gold” after the word “God” to aptly symbolize our current plight.
As it was in the story of the tortoise and the hare, slow and steady wins the (preparedness) race.May peace be with you all. – David J. (in a blue New England state)

Odds ‘n Sods:

Tim P., “C3”, and AAP all mentioned this article about a former Titan missile base for sale, near Moses Lake, Washington.
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For the “In Case You’ve Been Wondering Department”: The List of Foreign Governments that Hold US Debt. As Senator Everett Dirksen put it so aptly many years ago: “A billion here, and a billion there, and pretty soon you’re talkin’ about real money!”

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An emerging threat in the long term: China Build’s World’s Largest Navy. OBTW, the current news about the scrap iron and steel shortage–since China is buying everything in sight–has an eerie similarity to what Japan was doing in the 1930s.

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S&P: US Home Price Decline Accelerates–Steepest Price Drop in 16 Years

Note from JWR:

An unusually dry summer has created a hay shortage in much of the western US that is bordering on “severe.” In our area, just plain grass hay is fetching $250 per ton in the field. I’ve noticed that the local classified ad paper is chock full of ads for inexpensive horses. We are blessed to have some good pastures here at the Rawles Ranch, but we still need to supplement for winter feed–for when we have snow on the ground. With hay prices like these, our beloved saddle horse Money Pit is starting to live up to his name.

Two Letters Re: Lantern Battery Disassembly

Jim:
On Saturday 22 September 2007, you posted a web link from T.A. in Indiana for a video on how to take apart a lantern battery and get 32 AA batteries out of it.

I tried that with a heavy duty Ray-O-Vac and it had four cells approximately the diameter of C cell batteries but longer. Before people stock up on 6-volt lantern batteries thinking they will break down for AA batteries, they need to disassemble the brand they intend to buy to see how it is put together. The battery in the video appeared to be a bargain brand and that may be the difference. – Bill N.

Sir,
This is a hoax. You cannot fit 32 AA cells inside a lantern battery, they are slightly too tall. What you will find inside a 6V lantern battery are 4 large 1.5V cells tac-welded together in series (they look like elongated D cells). Here is another video for you.

Note: When possible, always assemble cells with the current rating needed in series for the desired voltage. Having battery cells in parallel leads to power flow in-between them during discharge. Unless the cells are exactly the same, differences in capacity make the strong cells feed the weak ones, and so the capacity of the total battery is less than what it is rated. If you have to connect cells in series/parallel for needed discharge amperage, disconnect them as soon as possible, and do not charge in that configuration. This is especially true for sealed or non lead-acid cells.
My battery knowledge is from working as an engineering/research tech for a battery firm. – JB

JWR Replies: My apologies for posting the link without first trying this “hack” myself. From what I’ve read recently, the battery configuration varies, depending on the maker and vintage of the lantern battery. Traditionally, they used four Type “F” cells, which look like extra-long C-cells.