Short Sales Versus Federal Stimulus Package: Which is Better

Real Estate News & Commentary by Chris McLaughlin, February 18, 2009
http://www.shortsalesriches.com/welcome.html

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“How to Exploit a Little Known Flaw in the Stimulus
Package for a Six-Figure Payday!” (But it’s only
good for the next 14 months…)

I don’t know why people haven’t caught on to this yet.
Because with this, you can forget fearing this recession,
and use it to your advantage instead!

I’ll show you how this Thursday night, and it’ won’t cost you a cent.

But there IS a catch – we fill up early, and there’s no
wait list. And at last count, we only had 25 spots left.

Go and grab one of these last openings NOW, or miss out.
https://www2.gotomeeting.com/register/495733452

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Great news! The stimulus package is now law but before you rush out to spend it all in one place, you might want to find out if it was worth the wait.

After all, watching the big banks spend their bail-out dollars looked like a lot of fun but don’t plan on laughing all the way to the bank…in fact, you might want to think twice about driving to the bank if you would like to have enough left over from the first installment of the big bail-out “consumer style.” Decide for yourself what is the best plan of action for the regular working “Joe” or “Jane”…investing in short sales and REOs to create a future for yourself and your family or waiting around for Uncle Sam and Big Brother to do the job for you. Keep reading for a few of the decidedly underwhelming aspects of the “American Recovery & Reinvestment Act of 2009” that was signed into law yesterday.

Money in your pockets: $400 per person or $800 per family if you work for a living…but don’t expect it all at once. In fact, forget about a lump-sum. Instead, you get to put an extra $13 per week in your pocket at the end of each week beginning in June and ending in December. By January of 2010 that amount will fall to roughly $8 per week or roughly enough to afford a drive through the fast food window….unless you make more than $75,000 at which point – tough.

Does anyone really think $13 a week is going to do anything to stimulate the economy? This is like filling a lake with a teaspoon. Yeah, Congress cuts the homebuyer tax credit from $15,000 to $8,000 and puts in this $13 a week tax credit. I like to call them Morofs … because they are too dumb to be called Morons.

Non-Workers have no fear, you will still get $250 per person check in the mail with the added benefit of not having to wait or spread it out over 18 months.

More on the First-Time Buyer Tax Credit: If you make less than $75,000 and are planning to purchase your first home then you may be eligible for an $8,000 tax credit as long as you close on the home prior to December 1s, 2009 and live in the home for a minimum of three years; otherwise, you will need to pay it back. You will also have to pay back the current $7,500 plan if you were unfortunate enough to purchase your first home between April 2008 and December 31, 2008. Investors, short sale buyers, retirees and others seeking to take advantage of the “big bail-out” plan are plum out of luck.

High income earners and those able and willing to begin buying homes in order to fix-up distressed properties and turn a profit will find no help from the “stimulus” package. Sorry Charlie, but consider it a blessing in disguise. Going it alone is a sure-fire way to keep the money (and profits) to yourself later down the road.

New Car Tax Deduction: If you have been contemplating the purchase of a business vehicle or other new car then this might actually help offset a little on your taxes by deducting the interest on the loan as well as taxes. Just keep it less than $49,500 and be sure to watch the household income limits. Other miscellaneous provisions include enhanced deductions for computer equipment, extended unemployment benefits and other “benefits” that combined, are likely to put far less than the profit potential of one short sale deal…at a lower tax rate than the typical “earned income”.

Still not excited? Keep reading…we suspect many red blooded Americans will find their blood pressuring going through the roof over these (not necessarily in a good way):

· $2 Billion to ACORN, an activist group that has been accused of irregularities in the past and covers everything from education for STD’s to voter registration.

· $54 Billion to state governments that are facing bankruptcy due to out of control spending – despite ten years of increased taxes and some of the largest property tax increases in history taking place within the last decade.

· 1.5 Trillion to expanding social service programs including Head Start, Food Stamps and other entitlement programs over the next ten years. Hey great idea, but stimulus? Give me a break.

Savvy real estate investors should realize the current economy is not “labor friendly”; higher taxes, more work and fewer benefits are the name of the game. Search for ways to reduce your earned income while maximizing your ability to take advantage of low capital gains taxation rates and hold tangible assets to preserve your purchasing power during these tough economic times.

Buy real estate, because the economic effects of this “stimulus” package will depress the stock market for years to come.

Remember, you create your own opportunities. You create your own bailout. Now go for it!

See you at the top!

Chris McLaughlin

http://www.shortsalesriches.com/welcome.html

P.S.

Don’t miss this awesome webinar replay right here…

http://www.webinarwizards.com/custom/index.cfm?id=170879

P.P.S.:

Go and grab one of these last openings NOW, or miss out.
https://www2.gotomeeting.com/register/495733452

http://www.shortsalescoach.com
http://www.shortsalesriches.com/welcome.html
http://www.youtube.com/shortsalesriches
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Finally, a blog for Real Estate professionals
that want up-to-the-minute news, & how it impacts
us and our market…

http://www.shortsalesriches.com/blog
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About the author:

Chris McLaughlin is widely known as America’s top
Real Estate Attorney and Investment Consultant.

    * As the top Florida foreclosure and pre-
      foreclosure expert, he oversees more than
      100 short sale & REO closings each month

   * Long-time authority on real estate investing
      and rapid flipping of distressed homes. Owns
      portfolio of nearly 100 high-value, high-profit
     properties

    * Owner and Supervising Broker of one of Florida’s
     largest Real Estate firms, running 4 different
     offices, supporting nearly 450 agents, uniquely
     positioning him to help thousands of investors
     make money in the biggest market opportunity ever!

     * Highly sought-after speaker, consultant, and
      seminar leader for current trends and hot topics
     in Real Estate Investing, Entrepreneurship, and
      Wealth Building

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Short Sales Versus Federal Stimulus Package: Which is Better

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