Dear Mr. President:

This is my fourth recession in 30 years as a sales and marketing consultant in the new homes industry. I have an idea. It is written from my heart, not at the direction of any party or group.

I am one among millions pulling for your success.

If I could offer you a plan that will

• Put thousands of people to work fast

• Stimulate wholesale buying

• Stimulate retail buying

• Put a face and sound on the improving economy

• Lift the morale of the country and

• Give you more time for your plan to work

Would you be interested? I hope so. Because here is the plan and how it could work

WHAT IS PROPOSED

• Provide a “build now” special credit to preconstruction home buyers.

• Provide a “sell now” mortgage for buyers of the homes preconstruction buyers may need to sell.

• Call it the “build now, sell now” program for new construction buyers.

RATIONALE

1. The sounds and the sight of new homes under construction will do more to visibly to put a face on the recovery, and it can happen fast. Car sales and resales purchases cannot do it.

2. Preconstruction sales put people to work immediately.

Your resales programs are fine, but extremely limited in terms momentum building economic benefits and public awareness.

Example:

The following services are paid when a resale or spec home is sold. Not one new job is created.

1. Mortgage company

2. Real estate broker

3. Title company

4. Home inspector

5. Appraiser

6. Attorney

7. Sellers may or may not make a profit.

8. Add those not on the list.

Only those involved know it occurred.

Here is a partial list of those who earn paychecks a when a new home is constructed.

Subcontractors

• Site preparers
  
• Electricians
  
• Plumbers
  
• Painters
  
• Roofers
  
• Carpenters
  
• Landscape architects
  
• Block masons
  
• Inspectors
  
• Payroll clerks
  
• Administrative Assistants
  
• General labor workers
  
• And more.

But there is more great news when a new home is constructed and sold.

Subcontractors BUY PRODUCTS from vendors and others, such as:

Paint
Wood
Concrete
Wallpaper
Wiring
Sheetrock
Air Conditioning and heating units
Plumbing
Refrigerators
Ovens
Cabinets
Carpet
Curtains
Tile
Fireplaces
Pools
Decks
Dishwashers
Washers and Dryers
And more

And when those who made and sold these products bring home paychecks, what do the families do?

They buy clothes, TV's, computers, cars, vans, trucks, take vacations, pay off credit cards, and get their living and self esteem back.

This program will stimulate every level of home builder from the production builder, small home to the high end custom builder.

THE AIM

1. Make single family preconstruction sales the symbol of the recover.

2. New cars can't do it. New housing can. The public can hear and read new car sales reports once month on the nightly news. But it can hear and see new homes being built all week long.

THE MARKETS

1. First time home buyers - Have four to five months during for lease to expire.

2. Buyers with no contingencies – No problem.

3. Buyers with a 'home to sell first' contingency. – must be targeted and helped.

The constraint: 'I can't buy yours until I sell mine.”

Offer a “build now” credit for preconstruction of single family homes only. Keep it simple. Keep it focused.

Offer special “buy now” financing - A two for one (build now, sell now ) mortgage

FINANCING STRATEGY

1. New construction buyer with home to sell takes out a construction perm loan with strong incentives.

2. Lender approves a special mortgage for the qualified buyer who purchases the new new construction buyer's home.

This gives the new construction buyer four to five months to sell his home so he can close on the new one.

MONITORINIG AND ACCOUNTABILITY

This concept might be a good start:

1. New construction buyer must list their home with a Realtor at market price.
   
2. If house isn't sold within 60 days, buyer will reduce price as recommend by Realtor. If the seller does not agree with Realtor price, home seller can bring in their own appraiser and use their number.

This will take more thought, but the mortgage programs can be worked out.

SUMMARY

• Special incentive for preconstruction homes buyers.

• Four-to-five month building period gives economy time to continue to improve.

• Special financing for seller's home makes it more saleable.

• Builds Realtor, Lender, Title Company, Home Inspector and Appraisers businesses.

• Puts subcontractors and vendors to work.

• Helps 'move up' market sell its homes.

• Give many 'slow' businesses confidence to purchase again.

• Changes the 'psychology' of the market in many ways.

I cannot help but think that the sound of hammers and saws would be a sweet music to millions of Americans, whether they bought a new home or not.

There is something about the sounds and sight of residential construction that says “things are getting better.”

Politically, you would have helped Realtors, homebuilders, subcontractors, vendors, and retailers improve their bottom line or in some cases, survive.

More important is you are helping families keep and find work while improving their lifestyles.

Thank you, Mr. President, for your consideration of this proposal.

The entire country is pulling hard for you and your team including the thousands of those who have suffered long and been hit hard, those who make their livings building single family homes.

God Bless America!

Published: September 7, 2009

Use of this article without permission is a violation of federal copyright laws.

David Fletcher has been a Florida licensed real estate broker and new homes sales and marketing consultant for 30 years. Along the way, he has sold more than $3 billion in new homes and condominium products for developers and builder/developers. He has been broker of record for 16 rental conversions and marketing consultant in 29 lender workouts for major communities and condominium projects, a featured speaker at the National Association of Realtors, and chaired the Florida Home Builder Association's Sales and Marketing Council. In 2008 he was named a 'Lifetime Achiever' by Keller Williams Realty's International Division. You may contact him at or call him at 407.234.2349.