All Forum Posts by: Justin R.

@Cody L. general information found on Small Business Administrations website, see below

https://www.sba.gov

Overview

In response to the Coronavirus (COVID-19) pandemic, small business owners in all U.S. states, Washington D.C., and territories are eligible to apply for an Economic Injury Disaster Loan advance of up to $10,000. This advance will provide economic relief to businesses that are currently experiencing a temporary loss of revenue. Funds will be made available following a successful application. This loan advance will not have to be repaid.

This is an immediate injection of socialism. I am all for helping the consumers and tenants. Incentivizing people to not go back to work (or pay taxes) by giving free rent and checks above their work rate is not ideal.

Thank you @Bob Norton. Exactly what I was looking for. Thanks for putting it in perspective!

This is a good time to get educated. Read books, Learn your market, decide your niche, and analyze. Once you have a system YOU will know when it is a good time for your position. Best of luck!

@Andri Grullon Banking rules were tightened several years back which now makes it more difficult for banks to call LOCs due. Because of this, they are making requirements harder.

Something to definitely think about in regard to moving your HELOC is taxable interest, and not interest payments. For example you will have to pay tax on the interest received from your bank, but you can NOT right off the interest you are paying for your HELOC once it is draw. With the new tax law you have to source your HELOC expenditures and 1099 Int is not foregiven. Im far from a CPA, so check with yours.

I just received the latest email from my application and wanted to share it with everyone....

Dear Applicant,

On March 29, 2020, following the passage of the CARES Act, the SBA provided small business owners and non-profits impacted by COVID-19 with the opportunity to obtain up to a $10,000 Advance on their Economic Injury Disaster Loan (EIDL). The Advance is available as part of the full EIDL application and will be transferred into the account you provide shortly after your application is submitted. To ensure that the greatest number of applicants can receive assistance during this challenging time, the amount of your Advance will be determined by the number of your pre-disaster (i.e., as of January 31, 2020) employees. The Advance will provide $1,000 per employee up to a maximum of $10,000.

You may be eligible for another loan program, the Paycheck Protection Program, which is available through participating lenders. Below is a comparison of the two loan programs:

Paycheck Protection Program Full EIDL Loan

Yes. The question is how long will the recession last, and what economic drivers will take the biggest hit.

Primary concerns...

1. Peoples health

2. Potential long term of rental forbearance 

3. Fiscal distress of economy/unemployment

4. Hopeful for opportunities, and a much needed increase on commercial cap rates.

Personally I would rather have a syndicator hold my distributions for a few months than come calling for funds later down the road.

Although passive, these are still investments and carry an associated risk. You can't blame them for wanting additional capital reserves. 

Lots of people have been repeating Warrens famous line. The problem with that line at this current time is people are fearful, yet the stock market and RE market hasn't truly reflected the current crises which we are in. Let the conditions find its new status quo, and that will be in short time.

With that being said, nothing stops anyone from being assertive and making offers and using the volatile economy to your advantage. Just be sure you have enough equity on the bone for anything that comes our way.