As most of you know, the Senate & House have both agreed on an economic stimulus package. Here is the Washington Post story.

As most folks know, this package will send rebate checks to anyone who earned at least $3000 in 2007. Individuals will receive $300. Couples will get $600. Each child will add $300. There are limits on income. Those earning $3000 or less will get $300. High income folks will have their rebate reduced. Rebate checks will begin arriving in May.

The plan provides incentives for business investment.

Also, the plan boosts the size of loans that can be offered by FHA, Freddie Mac and Fannie Mae, which should reduce the cost of many jumbo loans.

Set aside the merits or downsides of this plan. It will be signed by the President tomorrow.

Let's discuss a simple question: How can you use this package to boost your business over the next few months?

i will buy 600 bucks worth of stamps :-)

According to the news article, my family would get $2100.

Damn.

Sounds too good to be true, but if it is true, it'll go to pay off a credit card, and maybe buy some gas.

We're planning on a spring road trip into SoCal/Baja... this will help pay for the camping, fishing, hiking, and gas for the Land Cruiser!

-jeff

I suspect that this will be a hard proposition. As indicated above this money is already spent by most. Families that do not utilize this money for some extracurricular activities will most certainly pay off debts. And those who don't pay off debt will save it for a rainy day fund. The market is too volatile right now

In my opinion, due to the sagging economy it would be a waste of time and bear no fruit to try and solicit those rebate checks.

just my 2 cents
Sean

Actually, I may use what's left after the credit card to purchase some good quality printed materials (actually I'll create them, just get quality printing) and postage to send out some stuff to expireds.

If my husband agrees, that is. hee hee

Some ideas . .

* Distribute flyers to apartment complexes with the theme: "Use your tax rebate to buy a home!"

* If you are in a more expensive housing market, send flyers to your farming neighborhood with this message: "The price of buying the average local home has just dropped $XXX a month. If you are looking to sell, more buyers will shortly be out. Let me reach those buyers for you!"

* Send your sphere of influence postcards with the message: "You'll be receiving a cash rebate of $600-1200. Why not use it to get into your dream home?"

* Get a list of potential home buyers (go to a list vender like http://www.infousa.com and select your zip code, renters, age 25-29). Send postcards trumpeting your local first-time home buyer program: "Use your tax rebate to get into your first home!"

Steve, great ideas. You know, the down payment assistance programs here for Georgia first time home buyers (<- Key phrases Google!) would allow buyers to buy homes for those amounts toward closing provided the seller contributes 3%. But I'm still working with legal to determine how to say that without getting in trouble with the truth in lending folks. Once done, I'll be contacting some apartment complexes myself.

I will stick it in the bank and sit on it.

I will probably mail mine to the IRS to pay for my self employment taxes!

Not saying I'll do this- but if we all had a concience, we'd stick it in an account and give it to our kids in 15 years. It's them we are borrowing it from.

Pretty pathetic, really. When there's some medicine to be taken, we, as a society, choose to go once more to the well of borrowing from the future.

-jeff

We won't get one. But if we did, first I'd ask Steve:

"Where can I buy a home with $600 down?"

And then I'd start praying that no one called ME asking about buying a house with the President's rebate money.

DueDiligence,

Many states have grant programs that allow a first-time buyer to buy with very little into the transaction.

An example:

In my state, a buyer purchases a $110,000 home (3 bedrooms, 1.5 bath, built in the 1940s, 1 car garage, about 1600 sq. ft.).

They can, if they meet the income requirements (which, in my area go up to 85% of median income) obtain a grant of up to $3,000 towards downpayment and closing costs. Using an Idaho Housing Finance FHA loan, here's the costs to close:

Downpayment: $3300
Closing costs & prepaids: $2000
Total costs to close: $5300

Buyer gets IHFA first-time buyer grant: $3000
Buyer gets seller to assist with closing costs & prepaids: $2000

Buyer puts in $500 as the earnest money and gets back $200 at closing + plus the tax proration.

We do these all the time.