Rental Property Investor 路 Portland, ME 路 Member since 2019 路 160 posts 路 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 路 Manteno, IL 路 Member since 2009 路 2k+ posts 路 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.
Rental Property Investor 路 Member since 2018 路 4 posts 路 1 vote
6y
Thanks @David Hulit for your valuable insight into this somewhat complicated process! I just submitted my application via the streamlined website version. I initially started the process Sunday (3/29) using the downloadable form. The streamlined version seemed much more straight forward. My submission is solely as a rental property owner/investor, and I used an estimated rental loss amount - 6 months worth. I'm sure the loan details will be ironed out once the SBA begins processing my application.
Buy and Hold Investor 路 Commack, NY 路 Member since 2008 路 353 posts 路 33 votes
6y
@David Hulit Thanks so much for posting this. I'm planning on applying for two entities I own. One's a Corp that does ecommerce among other things and the other is an LLC that deals with my SFR rentals. Hoping to get two $10,000 grants.
Developer 路 New York City, NY 路 Member since 2015 路 812 posts 路 718 votes
6y
@David H., is the SBA or Treasury dept. should hire you as their marketing rep. for small business on this program. A+ on your knowledge, patience and ability to help the community.
I also applied yesterday and will share what I did. In hindsight, I wished I would have done 3 apps. I have 3 LLC's with several properties in each. I used one LLC name and the corresponding EIN for that LLC on the app. I used numbers from all 3 for my projections. It was my hope that when I actually got into the process I could then explain that there was actually 3 different LLC's. This was probably a mistake on my part and I may go back and apply with the other two separately. My loss was based on all property income for 12 months/2. I also put 0 for COGS which looking back, should probably be your operating expenses. Streamlined app. is very short and easy and it covers the grant also. Just check the box. I'm hoping any mistakes made on the app can be straightened out once a real person is involved and any incorrect info. will not affect the outcome. Thanks to all for the info. on this thread. I would not have known about this if not for BP.
Chicago, IL 路 Member since 2017 路 17 posts 路 0 votes
6y
@David Hulit. Hi I am a landlord. The property is not in a business name its in my name. What do I put down as my business legal name? My address to the property as the business name or use my name.
Also under organization Type should I put independent? Sole proprietorship? Other?
Rental Property Investor 路 KY 路 Member since 2013 路 1k+ posts 路 537 votes
6y
I have my 5 SFRs in my single member LLC, which has its own EIN. My SMLLC is also disregarded entity for tax purposes. Do I file as sole proprietor or a business with less than 500 employees (which is just me)?
Rental Property Investor 路 Portland, ME 路 Member since 2019 路 160 posts 路 231 votes
6y
@Andrew DeWeerd
Hi Andrew, I asked the SBA district office that question yesterday and they stated that landlords with that structure could apply. I agree though the application doesn鈥檛 make it look applicable.
That being said, the districts have been known to mix it up sometimes. If you would like to ask the SBA directly I find the New Hampshire 9am and 2pm EST call a great way to actually talk to a human there.
The conference call number for the SBA in NH is 2O2-765-I264 entry code is 522409519#
I suggest all with nuanced questions to give these conference calls a try. They usually last 20 minutes then they open the line for questions
I have to say that was suspiciously simple. Other than some categories obviously not being designed to consider landlording, that's the most "streamlined" government form I've ever seen.
I agree. Why didn't i get asked the projected loss? Is that another form? Or get asked the term of the loan i'd prefer?
Rental Property Investor 路 KY 路 Member since 2013 路 1k+ posts 路 537 votes
6y
Joined the NH SBA call this morning at 9:00am and asked my question about landlords that own properties in SMLLC and whether or not we need to choose business w under 500 employees - even if it's just us and it's a disregarded entity for tax purposes (NOT sole proprietorship). I believe her name was Rachael from the NH SBA. She stated that we choose BUSINESS WITH UNDER 500 EMPLOYEES.
Round Lake, IL 路 Member since 2015 路 1 post 路 0 votes
6y
On the SBA loan application I chose "Applicant is an individual who operates under a sole proprietorship" and now it's asking me for a Business Legal Name. I just file using a Schedule E. Any suggestions on what to enter?