Got the EIDL money. How are RE investors using it as “operating”

[Angela Yan]

Hi guys!

I was lucky enough to get that EIDL money but the loan docs are a bit sensitive. I am wondering what are some of the tricks RE investors are handling their money so they are creative enough to abide by the rules. You are not suppose to just take it and put down on buying another house so how are people creatively funneling their money to be legit. I own Multi and SFR and Air BnBs so i started a separate bank account and i work with PMs. Now what?

[Angela Yan]

Yeah. Reaching out to my accountant and will update with his recommendations. One is not suppose to use this money to acquire real property and real estate is real.  However, as RE investors i think that should be operating expenses.  I was also in a refinancing situation until a fire accident happened in one of my unit during appraisal.  Yeah really. Then Covid hit and everything came to a halt. My contractor still can’t complete his work and the time ran out on my conventional offer.  So no more money to go buy more deals.  But then i got this EIDL money and really can’t use it to get another deal.  This situation is so dam if you take it and dam if you don’t touch this money.  Hmmmmm....