All Forum Posts by: Shaun Weekes

@Shaun Weekes we used hard money to purchase and financed 100% of the purchase price with the hard money 

Took the plunge yesterday and now in contract for my first SFH in Sunnyvale:
https://www.realtor.com/realestateandhomes-detail/290-N-Pastoria-Ave_Sunnyvale_CA_94086_M15989-71250

Purchase price is $810,000-- my plan is to expand it an additional 1000 sqft to 3BDR, 2BA and flip.

Any thoughts on this deal? Does anyone have experience dealing with Sunnyvale planning and building dept? What else could I possibly do to maximize value on this property? 

We JUST finished a BRRR and are ready to refinance out of hard money, and then COVID happened and now the product we were using is no longer available. Credit is around 640, plenty of income to support the refinance but due to seasoning a traditional lender will not lend to us.

Is anyone else dealing with this? Found any solutions?

@Shaun Weekes

Hi Shaun,

I don’t believe you can receive the grant more than once.

I’m heading to bed now so I can’t really answer anything more in detail.

My suggestion would be to google search SBA EIDL Loan program webinar. There is a lot of good information out there from the SBA and other partners like the US chamber of commerce and senate committees etc.

Also, daily the SBA in New Hampshire hosts a call at 9am and 2pm EST for free and you can ask questions at the end. I’m sure other states do this to. I’d search the state district site to find these. It’s where I get most my up to date info.

Best of luck!

Hi Sam, 

I think you are mixing up the two SBA loan programs available right now.

The PPP loan program for payroll is administered by banks who will likely make money, yes. But as a banker working on this program, I can tell you we are not happy and struggling to make structure an entire program and remain in compliance over night. 

The EIDL Loan which I shared on this forum is funded directly by the SBA, NO BANKS are involved with the EIDL.

The EIDL loan program right now offers a $10k grant that does not need to be paid back as well. So your advice right now is to forgo a free $10k in the hopes of pressuring Congress to invent a new program through HUD?

Also, the EIDL loans are DISASTER LOANS, which this is, and are historically for businesses affected by hurricanes. This is a unique situation where many landlords will need help with working capital as their tenants fail to pay rent. It is an option that is being presented that is real. Unless you have a real concrete option that is available today, I wouldn't knock it.

Please help me get the word out and send this to every person you know on BP.  That is what BP is for.

The wrong department is running the "solution"

It is much easier to modify an existing program being run by the correct federal department than to run a program thru the bank.  

Yes, I am not talking about the "normal" rules for section 8 qualification of property or tenants.

Yes, this is an emergency but it can be set up to be run online with very little effort.

This would run parallel to the current section 8 program.

You would only have people qualified for a few months while they are unemployed.

@Shaun Weekes So it's really just Quicken (and possibly others) but I'd be as likely to find someone charging less in either a conventional or private company? I'll definitely reach out to Jerry tomorrow. Thanks!

Someone needs to call the White House and each Governors Office and stop this SBA insanity.

Landlords don't need "Loans" they need payment vouchers.  

Housing and Urban Development is the correct way to manage the rental issue.

This is the correct and efficient way to manage this at the Federal/State level.

This is as simple as it has to be.

Landlords register their properties from their Schedule E from their 1040 with Section 8 online.  

Tenants who have been approved for unemployment are automatically authorized Section 8 vouchers with online verification

At the end of the year landlords will receive a 1099-MISC for each property for the amount of rent received which is totally subject to depreciation.

At the end of the year tenants will receive a 1099-MISC for the amount of rent paid on their behalf and subject to their tax bracket.

This can all be set up online, is totally verifiable, and efficient.

When you no longer qualify for unemployment, you lose your section 8 and landlords only qualify for rentals that have unemployed tenants and not those with the ability to pay.

Again this can all be done online and is simple for both the Landlord and Tenant to understand.

It is also the correct way to do it by the Internal Revenue Code.

This SBA Loan program is a complete sham and is being run by the BANKS under guise of the DEPT OF TREASURY.

I would get a lawyer opinion before I would do this, because not only are you going to go bankrupt you are going to wind up dealing with the bank secrecy act and treasury regulations in addition to the IRC.

WARNING LANDLORDS YOU ARE PLAYING WITH FIRE IF YOU GO THIS ROUTE.  This is the worst way to do this.

You have to ask yourself why didn't congress or the executive branch think of doing it this way?

I will tell you why.  BANKS.

This is a way to run more money through the Federal Reserve and the Banking System.

This SBA sham is a way to bail out the banks and have Landlords on the hook.

I am totally confused as to why the Department of Housing and Urban Development isn't all over this.

I believe this isn't going to be what landlords think it is.

Hi all,

So we're trying to cash-out refi our first duplex, but the first lender we contacted (Quicken) told us we do not qualify for any type of refi because of the state limit on points and fees. The mortgage will be roughly $200K and property is located in Georgia. Is anyone familiar with this type of situation? We're just looking for some direction before wasting a bunch of time calling other lenders. Is this something we'd run into with other conventional mortgage companies and banks, or perhaps just Quicken? Should we be looking at private lenders instead? Any and all advice would be appreciated.

Nick