All Forum Posts by: Alin Dev
Alin Dev has started 0 posts and replied 10 times.
Post: Security Deposits - can bank set up happen virtually?
- Quincy, MA
- Posts 10
- Votes 0
checkout https://www.zdeposit.net/ this is a subsidiary of Leader Bank. I have been using them since early 2018 and have been a happy customer so far.
Post: EIDL Use of Funds and Real Need?
- Quincy, MA
- Posts 10
- Votes 0
Originally posted by @Bob Norton:
@Alin Dev The EIDL loan is to your company, not to you, so paying your personal taxes probably doesn't qualify. My understanding is that the intent of the loan is to help your business make it through the slowdown due to the pandemic. Covering operating expenses for your business from the date you received the loan going forward definitely qualifies, whereas reimbursing yourself for prior expenses is unclear. If you have the funds and revenue to repay yourself and you were holding these funds for future operations, then you should have no problem repaying yourself from these funds and using the EIDL loan proceeds for present and future operating expenses.
Thanks Bob for clarifying. I am planning to open a new checking account to house the EIDL and spend for future expenses from there. If I can use the loan amount to pay for past expenses (still during the pandemic), I can build up some capital for down payment on a property down the line.
Post: EIDL Use of Funds and Real Need?
- Quincy, MA
- Posts 10
- Votes 0
Originally posted by @Bob Norton:
@Chris McHaney The EIDL loan is for working capital to help your company to get through the pandemic. So, you can use it for any operating expenses as a landlord, including mortgage payments. If requested by the SBA, you will need to provide receipts of your operating expenses to prove that you are in compliance with the loan provisions. So, make sure that you are keeping all of your receipts and other documents that you can use to prove what you spent the funds on.
Question on the use of funds - if I get the funds from EIDL in mid July, can I use part of the loan amount to reimburse myself for the past operating expenses that occurred between Feb and July (like mortgage, insurance, taxes etc.)? Or can I use the funds only for future operating expenses that will occur after the loan amount is deposited in my account?
Also, I have to pay some income tax when I file on or about 7/15. I file Sched E (passive income, no LLC). Can I pay part or all of the taxes with the EIDL? I saw that IRS debt is one of the acceptable uses of the fund. Not sure if regular income tax payment qualifies as an IRS debt.
Post: What can you use the EIDL loan for?Downpayment for new properties
- Quincy, MA
- Posts 10
- Votes 0
Originally posted by @David R smith:
It could effectively be used by buy properties, as you could pay off existing mortgages (acceptable use) and use that equity to acquire new ones. I own 8 properties currently and was approved for a $3k loan, so unless you have a huge portfolio your probably not getting much.
Question on the use of funds - if I get the funds from EIDL in mid July, can I use part of the loan amount to reimburse myself for the past operating expenses that occurred between Feb and July (like mortgage, insurance, taxes etc.)? Or can I use the funds only for future operating expenses that will occur after the loan amount is deposited in my account?
Also, I have to pay some income tax when I file on or about 7/15. I file Sched E (passive income, no LLC). Can I pay part or all of the taxes with the EIDL? I saw that IRS debt is one of the acceptable uses of the fund. Not sure if regular income tax payment qualifies as an IRS debt.
Post: Attn: SBA Disaster Loans for Landlords
- Quincy, MA
- Posts 10
- Votes 0
Question on the use of funds - if I get the funds from EIDL in mid July, can I use part of the loan amount to reimburse myself for the past operating expenses that occurred between Feb and July (like mortgage, insurance, taxes etc.)? Or can I use the funds only for future operating expenses that will occur after the loan amount is deposited in my account?
Also, I have to pay some income tax when I file on or about 7/15. I file Sched E (passive investment, no LLC). Can I pay part or all of the taxes with the EIDL? I saw that IRS debt is one of the acceptable uses of the fund. Not sure if regular income tax payment qualifies as an IRS debt.
Post: Attn: SBA Disaster Loans for Landlords
- Quincy, MA
- Posts 10
- Votes 0
Originally posted by @Bud Gaffney:
The loan officer reached out to me via phone to confirm SSN and sent an email asking for proof that the business existed as of 1/31.
Post: Attn: SBA Disaster Loans for Landlords
- Quincy, MA
- Posts 10
- Votes 0
Originally posted by @Bud Gaffney:
Any status updates/insight? My application has a confirmed amount, with just the closing documents left. I’m crossing my fingers. “Your application is being processed” in a green box. Does this mean the loan is approved?
I am on the same boat. Spoke with the loan officer yesterday - he said the a Sr. Underwriter would review the application and documents as the next step, and should have an answer by the end of week.
Post: Attn: SBA Disaster Loans for Landlords
- Quincy, MA
- Posts 10
- Votes 0
I received a call and an email from a loan officer from SBA to provide documentation as "Evidence that your business existed prior to the disaster (Ex: Schedule C on Tax Return)". I file Schedule E... Passive investors that file Sched E, have you been asked for proof of your business? What proof have you provided?
Originally posted by @Nat C.:
Originally posted by @Alin Dev:
I wonder how the city's or the neighboring owners' stance would change if your property became an eye sore? You know - boarded up doors/ windows, graffiti, loads of needles lying on the ground, frequent 911 calls reporting overdose etc..
If those things were to happen, would they be willing to work with you to keep the community safe?
Alin, your thinking is unique and funny! What you are describing with properties falling into disrepair and blighting the community is not uncommon. What I have seen happen, in this case, is the City will issue violations to the owner until the dollar amount in liens is higher than the property value itself. Then they will foreclose on the property and demolish it.
True, but if your city is not letting you pull permits to do work at your property, how do they expect you to maintain safety of the property?
I wonder how the city's or the neighboring owners' stance would change if your property became an eye sore? You know - boarded up doors/ windows, graffiti, loads of needles lying on the ground, frequent 911 calls reporting overdose etc..
If those things were to happen, would they be willing to work with you to keep the community safe?