All Forum Posts by: Kase Knochenhauer

We've been approved for an EIDL Loan for our rental portfolio and flipping company.

After the funds cleared I've been trying to determine how these funds can be used. Here are a two real situations that I'm having trouble determining:

1. paying off short-term hard money when commercial financing was delayed  -- this seems permissible since it's not long term debt
2. performing improvements on rental properties -- these were planned but delayed due to COVID-19 has put these on hold.

Any tax pros or attorneys here than can better assist to what is and is not permitted use for our EIDL loan?

Thanks for the assistance.

Here you are!

Generate your own list here:


https://www.huduser.gov/portal/datasets/fmr/fmrs/FY2020_code/2020summary_sa.odn

@Bjorn Ahlblad bad tenants? ;)

@John Lutkenhoff - we moved to Spring Lake but I own a few properties in the tri-cities area.

We don't cash flow well there since rents don't meet the property values well. There are a few opportunities, but my money is allocated to lower cost segments with stronger rental opportunities: like Grand Rapids, Muskegon & Lansing areas.

I agree with a NNN lease option. Find a good commercial agent to locate a corporate backed industrial lease and you should be able to obtain a 7+ cap in the midwest with a 11+ cash-on-cash return.

I considering opening a solo 401(k) for our new long term rentals. 

Why aren't more people talking about this and instead refer to a Self Directed IRA instead (even though it seems leveraging a Solo(k) offers more opportunity, larger annual limits, and lower operational costs).

The company we are looking at is solo401k.com since they charge only $399 to open and a fixed $99/annual fee.

Anyone have experience with this retirement account or company?

@May Zhang - I don't think that this virus will have any noticeable impact on the national real estate market. 

However, if a significant outbreak occurs (say in Seattle) we may see a temporary slow down of home sales locally - but likely not nationally. 

When everyone runs away from an investment - it's often the very best time to buy. So even if prices change temporarily, your long term valuation shouldn't be impacted. :)

@Bryant Brislin - sounds to me like you are speaking with sellers who don't have the motivation to sell quickly.

My suggestion is:

1. Talk to more people
2. Ask more questions to further dive into their motivations to sell
3. Rephrase your walk through to make the seller more comfortable (while also being honest)
4. Followup relentlessly

@Jonathan Rivera - I recommend using both in series to increase conversion and conversation rate.

There's not really a reason to only use one.

@Chyniece Cox - real is estate is cool. It's probably as cool as John Travolta.