Why is the mortgage still due during COVID-19?
The mortgage is still due. Why?
1 - Investors should have saved 'reserves' in place - so if they are already worried about rent payments coming in April, just a few weeks into this, they have decided not run their venture in the appropriate manner. Owning rentals involves volatility in cash flows, if the investors can’t figure out the best way to deal with COVID-19 while paying all their bills, then they don’t deserve to have rentals.
2 - There are options available to Investors: They can always put it on a credit card, which really already has a payment plan set up for them with their terms... an investor can quite literally just pay the minimum until they get back on their feet, not suggesting anyone just make the minimum on a CC but that is an option, just like it is an option to put food, utilities and anything else on a credit card, investments are no different.
3 - There are loans available to Investors: Applying for temporary or unsecured loans to make ends meet are available and even more so now - and before anyone says you won't qualify - there's only one person to blame for getting yourself overleveraged in some vanity fueled quest to reach x number of doors and yes... a CC is a type of loan when used - so if you have a CC... you can access to borrowed funds with a re-payment system.
4 - Why does an investor have to own their current rentals? - As if there aren't options...Like selling. If an investor was so focused on cash flow and getting “$X/month” and they didn’t have the self discipline/ financial acumen to save cash and instead put all their cash flow into getting more doors, they should not be in this line of work. Sell the asset and pay the bank back.
5 – Why can’t the investor get another job to make up for the cash flow short fall? Wal Mart and Costco are hiring. I’ve seen you guys post on Instagram motivational quotes like “Rise and Grind” That applies to things other than taking selfies at your 10th door, which you got through creative financing.
6. Why does the investor need to live in their big house? Why can’t they sell their personal residence---- everyone does need shelter just like everyone does need food and water, yet the baffling question is... why do they need to pass the buck onto the tenant, who is the customer, for what is in reality their inability to meet a commitment they made? For years investors have been living high on the hog, borrowing money from the banks at 3-4% and buying assets that cash flow 5-7%, not to mention appreciation and rent growth - hypocrisy at its best. It is high time they reap what they have sowed.
Most that pass the blame onto their customers as it stands RIGHT NOW... only a few weeks into this situation... are unwilling to take on the responsibility for themselves onto their shoulders and find it just easier to put it onto someone else...
The mortgages that the banks have given investors are held in pension funds and retirement accounts. Americans who worked for years to provide for their family and build this nation rely on these payments to live their last days in relative comforts. And you, as a group have the audacity to try and pass the buck along to another group of hard working Americans, the nurses, truck drivers, the sanitation workers, who are doing all they can during this time of crisis to keep this great nation afloat. The gall!