All Forum Posts by: William Coet

Are landlords without employees getting burned?

Many commercial landlords do not have full time employees and use contractors as needed which prevents them from receiving the PPP funding
Some Retail tenants are withholding rent. 
Is there financial relief other than the EIDL which is a loan and must be repaid?  The EIDL grant of $1,000 is inusufficient to cover expenses.

Do no forget:   This proposed bill is theft and is an unprecedented attempt to take by politicians seeking votes.  It requires that someone provide a service and a product for free for three months.  If you do the maintenance on your own properties you are working for free. If you hire maintenance done, there is no reimbursement for their costs.  If the housing provider pays the utilities, they are not being reimbursed.  There is no forgiveness/cancellation of the multitude of high property taxes that New York housing providers pay. There is no reimbursement/cancellation of insurance costs.

It provides no reimbursement for the majority of the providers expenses, and zero reimbursement if there is no federally backed mortgage (which many housing providers don't have and is only one of several bills a housing provider is responsible for).

This is a great advocacy group in New York State called Under One Roof Coalition.  They have been responding to some of the eviction moratorium and proposed rent cancellation efforts.

They have created a few good videos and you can find them on you tube by searching for "under one roof ny"

Give them a look and support if you choose.

This post is in reference to the previous one:

 This entire thread is in reference to a New York State Bill that was proposed over one month ago.  You are obviously not familiar with the bill. 

It did not reimburse the housing provider for the majority of their costs. It gave them a break only on a federally backed mortgage which many housing providers don't have (if a housing provider didn't have a federally backed mortgage they received no break).  It did not remburse for the myriad of other property owner costs including school and other property taxes, insurance, and maintenance budgets (regularly scheduled maintenance contracts, long-term maintenance budgets, and unexpected repair budgets). 

Many of your other points are inaccurate, including suggesting the NYS bill was different than requiring a grocery store, restaurant, or service provider to give their product away for free.  It is exactly what the bill proposed.  When you are ready to provide your services for free for three months, then you can lecture to housing providers who have to answer to tax collectors, mortgage providers, insurance companies, and maintenance contractors.

Any time a government program is mandated it provides reimbursement to the provider of the good or service, whether it is health care, food, or housing.  This bill did not do that.  It was theft.

This is a question to those who are familiar with the current refi market.

For a rental property owner who is in a 10-20 year mortgage and facing non-payment issues, it is likely a much better option to refi to a 30 year mortgage than to request forbearance.

Are refis slowing these days?

Thanks!

Housing providers need to get informed and contact their representatives.  Similar to what was proposed in New York State, there is now a federal bill to "cancel rent".  It includes the possibility of the federal government taking control of property if the housing provider receives certain federal payment assistance.

Get informed and take action by contacting your representatives.

If a rental business with no employees is facing losses/vacancies due to covid 19, are loans the only option for financial assistance? 

Seasonal rentals, student rentals could be hit very hard by vacancies...

I'm looking at a sfh house with a tenant in place.  The seller has stated they have a balloon payment due to a hard money lender and they don't have the funds.

Is there any to purchase this with little money down?

Thanks!

Is this a shared home or are they in a separate apartment?  If separate apartments I wouldn't worry about it.

Originally posted by @Joe Splitrock:

@Jay Hinrichs

I listened to his podcast for a year and I have read two of his books. He has good ideas to offer around informational sales and going big on goals. Of course he has an obnoxious personality and he is poster child for excessively displaying wealth. 

There is no question he is a marketing genius. His use of social media and technology has been extremely effective. He invests in multifamily in excellent locations, so I believe long term that is a good strategy.

As far as the layoffs, it is important to point out that not every business is laying off people. Many businesses are choosing to pay employees, even when they are not working. Some business owners are funding that from their own personal savings. Grant Cardone is not. 

There were many stories during the great recession of businesses who survived by paying all their employees, at the peril of business profit. Those businesses rebounded faster and inspired employee loyalty. 

Here is the bottom line. If Grant Cardone wasn't self absorbed and self serving, he would not have put out that bankruptcy video. INSTEAD he would have put out a video talking about how unfortunate it was he had to lay people off. He would have explained it was financially necessary and he would have stated what he is doing to help his employees. He would have reassured investors that this is short term pain. NOPE he doesn't give a crap. The video was insensitive at best. It isn't funny that he laid off employees and it isn't funny that he isn't paying investors. 

I think Grant Cardone made a big mistake with that video. Anytime there is financial trouble in the economy, people are looking for villains to blame. My guess is that he is going to go into damage repair mode quickly. 

 There is a big difference between laying people off now and in the 2009 Recession.  Because of the enhanced unemployment benefits ($600/week in addition to regular UI) there are people who will be making the equivalent of $50,000/yr on unemployment.  This was not an option during the 2009 recession, and this is having a significant affect on the decisions being made by employers and employees today regarding lay-offs.