All Forum Posts by: Joseph B Lively

Well, Dan...That is sure good news.  I applied on 3/31, a day behind you.  So, maybe they heard an outcry of the 'Zero employee' group and tossed us a $1,000 bone.  It would sure help with this months expenses.  

Joe

Thanks, Justin.  That's the same one I got as well.  Seems like they started coming out yesterday for the early appliers.

Ok, I think this makes sense.  What Sharon said above as well.  If your wife listed 5 employees, she most likely would have gotten $5,000.  But, myself, like you, didn't put any employees (which is the most accurate response) and didn't get anything.  So, hopefully, yes, we are still eligible for the loan and it's processing, but just not the immediate advance.  If that's the scenario, then I think we owners can still get some relief.  I just don't think filling out the PPP as a single house renter is the right way to go.  It seemed like a forgivable EIDL was made just for us.  I hope that's still the case, and only the (rapid 3-day) advance is what we are not eligible for due to no employees.

So as a single owner, with no employees, does that mean we would qualify for $0 dollars?

Well, I was "denied" my EIDL loan. Just got an email back saying, they are basing the EIDL loans on the amount of employees you have. So, it's basically turned into another PPP. Dang it...how are SFH owners who don't have a mortgage suppose to get any help at all? I have all the bills still, utilities, lawn, taxes, maintenance, etc...but no rental income....

Here is the text in the SBA email...

Dear Applicant,

On March 29, 2020, following the passage of the CARES Act, the SBA provided small business owners and non-profits impacted by COVID-19 with the opportunity to obtain up to a $10,000 Advance on their Economic Injury Disaster Loan (EIDL). The Advance is available as part of the full EIDL application and will be transferred into the account you provide shortly after your application is submitted. To ensure that the greatest number of applicants can receive assistance during this challenging time, the amount of your Advance will be determined by the number of your pre-disaster (i.e., as of January 31, 2020) employees. The Advance will provide $1,000 per employee up to a maximum of $10,000.

EDIT:

AND to top it off, my PM group, who I'm still paying $150 a month just sent this little nugget:

As of now with the passage of the CARE ACT a landlord cannot charge a late fee, serve a notice to vacate or an eviction notice for 120 days from Friday, March 27th 2020 when the CARE Act went into effect. Based on that combined with the CA landlord laws that means the first business day after that date, which would be Monday July 27th, we can serve a 60 day notice to vacate which means the tenants would have to be out by September 25th, 2020.  With the expected flood of evictions in California, it's realistic to not have the renter out until November or December of this year.

I have that guy.  Before it became common place, just two day ago, I offered him a 'sweetheart' of a deal.  Told him I would give him 50% off his rent the next 3 months if he got current with his back Feb and March rent/Utils.  I had my PM send over a agreement letter that he would only be liable for $1000/month though June 2020 IF he paid the back items.  Otherwise, it would be normal rent.  The next day, my PM got a check for $3600 for the back stuff.  

His lease is up in June 30th, so I'll end up removing him then (if the moratorium is lifted) but for now, I hope that the rent reduction helps him for 3 months and I got my back rent to help make it though. He's been late 6 of the 8 months he's been in.  

Just an update...

Earlier I had posted that I had an renter who skipped Feb and March rent, and was already served 3-day notice before the moratorium went into place.  Had a talk with him last night and offered him 50% rent reduction for the next 3 months to help with the conditions we are in as long as he got current with his back Feb/March rent.  This morning I got a call from the PM that there was a check from him for $3,600 dollars in the drop box!

He's not the best renter at all..always late, always excuses.  But at the end of the day, we are just people who are trying to figure our way though this.  I think he appreciated the offer of reduced rent, and not going the other way of starting the eviction and responded in kind.  

This was truly not expected, but now I'll be able to make my nut over the next 3 months by subsiding with vacancy and capex reserves.

Good luck out there.  I know they won't all end up like this.  Maybe the Govt will freeze Mortgage payments and Interest accruing.  Who knows.  But a lot of owners I know are not going to be able to make their payments after 2 months of non-rental payments.   

I have a SFH in Rocklin, CA. The renter, who is sketchy to begin with, called my PM and said, "I'm not paying rent for this month (was due on the 15th) or any other month, because the news I was just watching on TV told me not to. The guy has been late 4 of the last 7 months anyways, and I know he is using this as a reason for not paying. I've served three 3-day notices on him already.

My PM said even if we don't have a hold on evictions yet in Rocklin, it's coming soon, as it's in San Jose already.  He would NOT recommend starting it, as it's just gonna get put on pause anyways.  I have 8 months of vacancies saved and Cap buffers...but I think it feels totally unfair that tenants can claim CV as a reason for non-payment and I have to eat all my funds for it.  It just feels powerless as a owner right now, as our mortgage payment will keep on coming...