Got the EIDL money. How are RE investors using it as “operating”

[Angela Yan]

Hi guys!

I was lucky enough to get that EIDL money but the loan docs are a bit sensitive. I am wondering what are some of the tricks RE investors are handling their money so they are creative enough to abide by the rules. You are not suppose to just take it and put down on buying another house so how are people creatively funneling their money to be legit. I own Multi and SFR and Air BnBs so i started a separate bank account and i work with PMs. Now what?

[Account Closed]

Originally posted by @Angela Yan:

Hi guys!

I was lucky enough to get that EIDL money but the loan docs are a bit sensitive. I am wondering what are some of the tricks RE investors are handling their money so they are creative enough to abide by the rules. You are not suppose to just take it and put down on buying another house so how are people creatively funneling their money to be legit. I own Multi and SFR and Air BnBs so i started a separate bank account and i work with PMs. Now what?

I think that really needs to be answered by a CPA, accountant, enrolled agent, or 1031 exchange pro. They seem to track these kinds of things. I suspect that if you asked something like "does the EIDL affect my taxes, can I deduct it" or "can I use EIDL in conjunction with a 1031 exchange" or " does EIDL reduce my write offs" one or more will chime in.