All Forum Posts by: Kevin Mitchell

First National Bank of Hutchinson

I am leading the PPP program with our bank and we have not heard of a $5K per employee retention bonus. You loan amount is derived from a monthly average of your total (taxes, unemployment ins, insurance etc.) x a 2.5 multiple. So long as you can support the payroll data with documentation and you certify honesty; and subsequently use the funds to continue paying your employees, the same amount you are listing on the application, then your loans will be forgiven.

I am working this SBA - Paycheck protection program for our bank. There are minimal qualifications. If you can prove the loan amount by providing actual payroll data; then up to this point you qualify. If I were you I would apply for the loan and utilize it the correct way. This will leave your company in even better shape after this assuming things bounce back like everyone is expecting. I for one don’t think we bounce back, back that is for another conversation. 

@Joe Cassandra Purely my thoughts, but if you wait until the VIX is at 35 you will have likely missed a decent rally....

@Frank Wong Hey Frank- not all companies lining up for a bailout are in a cash crunch. A lot of them are seeing other industries get virtually “no strings attached” piles of cash and are thinking “I want a slice of that $2 trillion piece of pie”. Just FYI

@Jaden Adams

Stay in school and borrow a **** load of money in student loans. Then invest it in real estate while you are in school. If you do it right you could end up with a number of houses before you graduate

@Shawn Ziegaus I would absolutely agree it’s situational. If you don’t mind the foregoing a percentage of your cash flow and reducing the headaches associated with managing the property yourself then a PM might be the route for you. For us, we don’t use a PM, have 6 properties and closing on our 7&8th houses in November. Given our current “9-5” jobs we have flexibility to manage our own properties but if we keep growing I will happily “buyback” my time via a PM to reduce the head aches and time commitments to manage a growing rental portfolio. Figure out what works for you and let’Er rip. Good luck

@Kerry Baird why do I have to pay for the speed of the transaction if the collateral is the same? Think we differ on that. My rate was around 10.5% I think vs. sub 4 at local credit union

@Kyleigh Morgan

This is not so straight forward as some people proclaim. It varies by individual circumstances and personal preferences. For instance, some banks have different financing requirements if you are financing via an LLC or holding in personal name. Amortization schedule, rates, etc can all vary widely.

From a liability perspective it can also depend. We have properties in our personal name survey no LLC and help protect us with an umbrella insurance policy. We choose to mitigate risk this way vs. insulating ourselves via an LLC. Is that the correct way for all? Maybe not, but based on the financing we wanted to make our deals work, that's what we chose.

It's really up to you and what path you want to take. If I'm not mistake, From a tax perspective the LLC income is being passed thru to your personal tax return so it will be taxed at your personal tax bracket anyway

@Sadie Bynum

I didn’t quite read thru all the posts, but if you are using a bank for financing, you should ask them not to approve your funding. The square footage is a huge determinant in the appraised value. Surely they would have the same logic as you in that a 1000 sf difference is a significant reduction in value.