Rental Property Investor · Portland, ME · Member since 2019 · 160 posts · 231 votes
Attention!!!!
Landlords / rental property owners in affected areas of the Covid19 pandemic
The SBA Economic Injury Disaster Loans (EIDL) are available for rental property owners if your state has already made the application to the federal gov.
I know Connecticut, Massachusetts, Maine, New York all have. Expect all states to eventually apply.
These loans will take a minimum of 3 weeks to get to you so start now! There will be a overload of applicants and this is first come first served. Be prepared and submit a complete package! Details outlined at the link above!
Rental Property Investor · Manteno, IL · Member since 2009 · 2k+ posts · 2k+ votes
6y
I just submitted my application. The website is struggling. It wouldn't let me upload the files for certain things they require because the upload feature wasn't working. I even tried on internet explorer (somehow that was their preferred brower). But this loan may be huge for landlords with a lot of properties. I have 82 houses. If 50 don't pay the rent, that would be a loss of roughly 70k a month. That'll eat thru my reserves awfully quick.
But I saw on the front page of the loan request app that they spefically state that landlords with rentals can get the loan and they even give us the direct instruction as to some selections we need to make (i.e. economic injury - just as David mentioned in his initial post).
To me, I look at it as though they should be able to make some projections as to losses. Maybe a worst case of 50% collections for a period of 6 to 9 months? And then offer a loan up to that amount. Again, how they come with their numbers will determine how useful the loan will be. A 10k loan is going to do nothing for me. A 100k loan might be the difference in keeping all my payments with the banks current and still having enough money for repairs and the like so I don't lose my houses.
Honestly, a worst case scenario of this going on for 9 months and say 50 percent collections and no option to sell the homes because we couldn't evict the tenants could cause me to lose everything. Its just not a scenario we can plan for. I've always said that there could come a time when there simply weren't enough renters because everyone was able to buy again. Well, that would mean house prices would be huge and i"d just jump on the bandwagon and sell and take my profits.
But how in the world do you account for something like this? Little to rents coming in. No ability to evict the tenants to sell the property as an exit? That just doesn't exist.
But thats why I really believe the sba is going to be super aggressive in these landlord loans. If I can get thru this with all my payments being kept up and the only hit to me is a new loan/debt of say 200k at 3.75%..... guess what, I'll be tickled pink. I can factor that in as the cost of doing business and then show these banks how I was able to survive in one of the worst debacles ever seen.
One of our properties is owned by two trusts, and there are 3 beneficiaries. I am one of those beneficiaries and also the trustee. Is it possible to receive to apply for the grant using the EIN of the two trusts?
And if I have a separate LLC (with it's own TIN/EIN) that owns other property, would I receive another grant for those properties?
Title Representative · Morgantown, WV · Member since 2019 · 42 posts · 3 votes
6y
Has anybody received their loan yet? I applied Sunday and chose to request the advance. I saw some of you had applied over a week ago it looks like? I'm quite confused now since I just watched the president's speech wherein he spoke about the paycheck protection act loans which will begin April 3rd! Not sure if I have to apply to that as well as the economic injury? Anyone know more? I plan on calling tje help line again tomorrow
Financial Advisor · Duluth, MN · Member since 2012 · 157 posts · 194 votes
6y
Heads up to all the people that asked, I did not receive an e-mail from the SBA confirming submission. I saved the document with the confirm number. Let’s see what happens.
Investor / Syndicator · Austin, TX · Member since 2015 · 367 posts · 220 votes
6y
I think it's wise for smaller landlords to apply for this, even if you think your residents are performing well for April. I'm not betting on a V-shaped economic recovery. You may have some workout agreements with your residents in the next several months.
Investor / Syndicator · Austin, TX · Member since 2015 · 367 posts · 220 votes
6y
@Jodi Marsh My understanding is that the Paycheck Protection Act, or PPA is a different program. What's being discussed here is the SBA loan program for small businesses. The PPA application, per Trump will be ready on April 3rd. If you have employees, that will apply.
Pompano Beach, FL · Member since 2017 · 23 posts · 7 votes
6y
What about rental properties not in an entity? Do they still qualify for an SBA Loan? Or since the properties are not in an entity, is this not considered a business?
i tried to start the application what do i put on the trade name and business legal name since I am sole proprietor landlord. Do i just put my name? Thanks much for your help.
i tried to start the application what do i put on the trade name and business legal name since I am sole proprietor landlord. Do i just put my name? Thanks much for your help.
The first section is where you put in the name of your business if you have one. They ask for your name and address on page 3.
Woodbridge, VA · Member since 2017 · 122 posts · 44 votes
6y
Just a quick question:
Is the questionnaire supposed to be only a few pages? I mean it's quite brief or is their a lengthier or detailed version to apply for the actual loan? I could not find any other information at SBA website relating detailed application. Any advice?
i tried to start the application what do i put on the trade name and business legal name since I am sole proprietor landlord. Do i just put my name? Thanks much for your help.
New to Real Estate · San Jose, CA · Member since 2017 · 91 posts · 23 votes
6y
Have an SFR that I fully own under my and wife's name. Do I need to own the property through an LLC to be able to apply this loan or can I get a loan on my SFR?
Can I get a loan of 80% LTV with this program?
Also, what does use loan for working capital mean?
Seabrook/Galveston · Member since 2018 · 274 posts · 178 votes
6y
I applied yesterday. Did I miss or forget the section where it asks how much you are applying for? Only thing sort of relevant was the “lost income” part. Based on what I read, I thought it was only looking at March/April, but it seems some are assuming 6 months.
I own mutiple residential and commercial RE in MA. I applied for the 10k immediate assistance but I am confused if I apply for the 7a or 7b loan. I own all properties in LLC's which then pay a management fee up to my S Corp which I am the sole owner. If someone can shed some light into this that would be so helpful. My commercial tenant is struggling as are a few bar industry tenants residentially. I dont think the PPP loan applies to me but any feedback is super helpful! Thank you!
Hi Heather, the EIDL loan/grant is likely the best option for your situation as it is eligible for rental property owners.
The PPP loan is unclear whether it is eligible for rental property owners, my thoughts are it is not, as typical 7a loans are not. Also, even it you were eligible, the PPP loan is based off of a calculation of your average monthly payroll costs for the prior year X 2.5. It is really designed for businesses with a lot of employees.
I feel stupid asking this, but where do you start/find the paperwork for the second step? I applied for the $10k yesterday
I own mutiple residential and commercial RE in MA. I applied for the 10k immediate assistance but I am confused if I apply for the 7a or 7b loan. I own all properties in LLC's which then pay a management fee up to my S Corp which I am the sole owner. If someone can shed some light into this that would be so helpful. My commercial tenant is struggling as are a few bar industry tenants residentially. I dont think the PPP loan applies to me but any feedback is super helpful! Thank you!
Hi Heather, the EIDL loan/grant is likely the best option for your situation as it is eligible for rental property owners.
The PPP loan is unclear whether it is eligible for rental property owners, my thoughts are it is not, as typical 7a loans are not. Also, even it you were eligible, the PPP loan is based off of a calculation of your average monthly payroll costs for the prior year X 2.5. It is really designed for businesses with a lot of employees.
I feel stupid asking this, but where do you start/find the paperwork for the second step? I applied for the $10k yesterday
Hi Bruce, no need to feel stupid! The application process has changed a couple days ago (things change rapidly these days). Currently, it looks like you only need to do the streamlined application, in which you request the $10k, and then an SBA representative is supposed to follow up with you for next steps, likely via email, though it looks like some other BP members got calls.
The application asks for loss of rental income. So far it has been only for the month of February and not much. There is no column that asks for how much loan you are looking for. How do they know the requested loan amount?