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.
Investor · Chester, VA · Member since 2013 · 1 post · 0 votes
6y
So, I file my properties with my SSN, no EIN as I have not established any LLC's. The site is asking for a EIN, (XX-XXXXXXX). Has anyone ran into this?
Investor · Charlotte, NC · Member since 2014 · 2 posts · 0 votes
6y
This may be a silly question, but I have an LLC for my rental properties. The owners of that are an LP and an S Corp (for myself and my biz partner). So those are the owners of the LLC. When I check yes, that my business is owned by a business entity, it only let's me fill in info for one entity. It will let me add a second individual owner/agent but that only allows personal info. What am I missing?
Investor · Boston, MA · Member since 2014 · 232 posts · 165 votes
6y
FYI for those experiencing long hold times checking your status... apparently they're adding 700 reps to the call center this week so hopefully that makes a decent dent
Investor · Skagit County, WA · Member since 2016 · 1k+ posts · 807 votes
6y
@Michael Ablan I just applied through that link. That seemed way to easy and didn't really ask much about the nature of my business or how I came up with amount of lost rents, I just used a 6 month period assuming 100% of renters can't pay.
FYI - I applied 4 days ago and yesterday I got an email, that said "status changed to 'Received in Review'.
Did you get an e-mail right away? I submitted mine 3 hours ago. I haven't received anything but I wrote everything down and took a picture of my number.
For those states that are not listed yet, is it best to get the paperwork in now to be first in line or do you have to wait till your state has declared?
Rental Property Investor · KY · Member since 2013 · 1k+ posts · 537 votes
6y
Just applied for EIDL. Took about 30 minutes. Got a submission screen with an Application Number upon completion. Wasn't 100% sure on some of the questions, but filled it out as completely and truthfully as I could with some reasonable assumptions.
I chose the business w under 500 EEs option, used my SMLLC name, its FEIN, and had to put my personal info / SSN on the owner page. Used past 12 months gross rents per PM reports and COGS as expenses on PM reports (including PM fees) + PITI payments. For lost rents due to disaster, I used gross rents x next 9 months of 2020 to arrive at that figure (who really knows?). I checked the box to be considered for the $10K and entered my business bank account info. We'll see what happens.
Investor · Hayward, CA · Member since 2013 · 122 posts · 65 votes
6y
I just applied. The website did not ask for any uploaded documents. "COVID-19 ECONOMIC INJURY DISASTER LOAN APPLICATION". There was a line in the app asking about gross rents, so I guess it applies to landlords. I suspect this is not the "final" app, but just an information-gathering pre-application.
Investor · Vancouver, WA · Member since 2017 · 67 posts · 18 votes
6y
Hi all, hopefully everyone is doing good and practicing good social distancing. I applied via my iPhone, it took no more than 20 minutes. Within an hr after completion I received a calendar invite to speak to a SBA associate. Is anyone receiving these invites too?
Mcallen, TX · Member since 2017 · 92 posts · 72 votes
6y
I was able to get a hold of SBA customer service with no wait this morning. The reps advice was to fill a completely new application with any changes you need to make and email customer service informing them of the new application and changes. I had only listed my lost rents thus far on my 1st app. The two changes I made were
1) Listing lost rents at 100% x9 months
2)listing my business as under 500 employees instead of sole proprietor.
Rep confirmed lost rents can be a projected amount. Hope this helps guys!
So, I file my properties with my SSN, no EIN as I have not established any LLC's. The site is asking for a EIN, (XX-XXXXXXX). Has anyone ran into this?
Below that question there's an option to change to Sole proprietor and then i was able to put my social and it took it.
If you’re unsure whether you checkmarked the box for the $10k at the end, how do you edit, or what do you do? TIA for advice. (This is what I get for filling out paperwork at 2 a.m.)
I was able to get a hold of SBA customer service with no wait this morning. The reps advice was to fill a completely new application with any changes you need to make and email customer service informing them of the new application and changes. I had only listed my lost rents thus far on my 1st app. The two changes I made were
1) Listing lost rents at 100% x9 months
2)listing my business as under 500 employees instead of sole proprietor.
Rep confirmed lost rents can be a projected amount. Hope this helps guys!
What about in the business section where it asks you again for Organization type. Did you put Sole Proprietor or Independent?
Investor · US · Member since 2017 · 71 posts · 80 votes
6y
I have only read the first 7 pages of this thread so forgive me if this has been asked. I started applying and came to a point that says using funds for ineligible uses will result in serious fines. This article shows some ineligible uses: https://www.sba.gov/sites/defa...
It seems the money is not able to be used for repairs or further investment and cannot be disbursed to an owner other than for services provided to the company.
If an investor does not have much in the way of mortgage debts, how useful is this loan? Maybe it can pay taxes, insurance, a fair rate for property management provided by the owner.. but it is maybe not so useful in supplementing all the anticipated lost rental income used for living. Thoughts?
FYI - I applied 4 days ago and yesterday I got an email, that said "status changed to 'Received in Review'.
Did you get an e-mail right away? I submitted mine 3 hours ago. I haven't received anything but I wrote everything down and took a picture of my number.