How do you Deal - All tenants Rent Default - COVID Situation

[Pratap Koppula]

The property is for sale and in the rent roll forward, all tenants rent is past due. How do you deal this, practically replacing all the tenants does not appear viable solution down the line with COVID eviction restrictions?

Putting down payment plus additional working capital until we see the sunshine, hopefully next summer is few months away.

How Banks would react to lend on a typical situation like this.

Please guide and share your thoughts if the cheap is a better case here.

[Greg Dickerson]

Originally posted by @Pratap Koppula:

The property is for sale and in the rent roll forward, all tenants rent is past due. How do you deal this, practically replacing all the tenants does not appear viable solution down the line with COVID eviction restrictions?

Putting down payment plus additional working capital until we see the sunshine, hopefully next summer is few months away.

How Banks would react to lend on a typical situation like this.

Please guide and share your thoughts if the cheap is a better case here.

 This will all depend on the size property, your experience and your financials. There are commercial banks and Credit unions that will lend to you on property like this if you are strong enough financially and have the expertise to handle a property like this. You can also raise private capital but you do not want to go with hard money on a deal like this as it will be too expensive. Hard money is for short term flips or turn arounds and with a deal like this it may be hard to nail down a time frame.