All Forum Posts by: Alvin Uy

@Jared Wilson. Yeah i have the actual note too. I just haven’t signed it. I have until September to decide.

@Mark H. Porter by the way, did you get the full sum all at once?

@Mark H. Porter thanks for your response. Do u know if salary (to self/owners) is considered qualified use of funds? The language is unclear to me. I know bonuses, vacation pay and such are not allowed.

Yes...  I've actually gotten on the phone and verified its SBA.    And it does require collateral if over $25k (but only limited to what the biz owns - equipment, inventory, etc... not RE collateral).  Personal guarantee requirement for sure. I have enough in reserves to cover this so its not a huge concern.   I don't plan on going out of bounds on use of funds.  But the language about audits and maintenance of records requirements (at my expense) is one of the things concerns me... sounds like a pain.   

By the way, Do you know if salary (to biz owner) is within use of funds?  That part isn't clear to me.  

@Mike Cumbie interesting perspective. Definitely something I worry about and has crossed my mind. The note and disclosures do state specific use of funds. If they change anything on the fly, wouldn’t that be breach of contract?!

@Dawn A. I applied through my design biz months ago through SBA website portal... along with PPP. Missed the window the first time on EIDL because they ran out of funds ... but i got approved for $25k PPP. Last week I got an email last week saying i got approved for $150k EIDL.

So I just got approved for $150k SBA EIDL under my design biz (not real estate related biz).  Terms are 3.75% interest rate w/ 30yrs to pay.  $731/mo (P/I)..  First payment does not start until after 12mos from disbursement date.  Sounds too good, but there's limited use of funds. I'm still receiving $10k/mo salary through my biz so this will help because I need to maintain my W2 so I can still qualify for loans to buy real estate.  But not sure where my design biz will be for the next 30yrs... it is a slow crawl right now due to COVID19 and almost feels like i have to start all over.   Of course, my mind goes straight to finding ways to use funds and invest in RE somehow... but I don't think I can take the draw all at once. That said, it's been a week since approval and offer... but I still haven't pulled the trigger to sign the note.  

What would you do if you were in my shoes?  If you have gotten the EIDL, I would love to hear your thoughts and perspective.

@Sowmya Kumar in that case, window ACs are not very expensive. You should supply them.... especially if youre not paying utility bills.

In my lease agreements, i would add an addendum to such request that loss or repair/damages unless due to normal wear and tear will be tenant responsibility.

ADU's are such a new thing and city requirements are constantly changing... The challenge right now is the costs to build vs the value you get after the build or conversion. I spoke to a couple of appraisers (in Los Angeles) who said the most they can give ADUs at the moment is $50k value... while build costs ranges from $75-150k. Since there are NOT too many comps, appraisers may not give you the value you are expecting.

That said, the value with ADUs right now will be in the potential for instant cashflow it will create from the get go (which is a big deal in SoCal). Just check with your city to make sure your ADU doesn't require main house to be "owner occupied" to be rented. Requirements change from city to city. Im actually in the middle of a ground up project in Los Angeles... waiting for city to approve my plans to build a duplex with an ADU + a JrADU.

its always interesting to see how rehabs are done in different parts of the US.  Thank you for sharing.   

I've done that corner shower with curtains before... and ended up with a lot of water damage because the curtains will never keep that water in.  I recommend enclosing that corner shower with glass or something instead. Trust me!