All Forum Posts by: Will F.

I'm looking for new property management referrals for fort lauderdale I have 17 units there

I agree, big business is getting a larger cut of this stimulus check.  Small landlords and businesses are not getting even though the majority of the economy is made up of small businesses/sole proprietors like landlords and small investors.

We need to organize and be proactive

Here are some more resources:

Some Apartment Association resources, Petitions, and how to easily contact local government and representatives:

Los Angeles Apartment Association

https://aagla.org/

Apartment Owners Association

https://aoausa.com/index.php

AOA Petition to Governor Gavin Newsom

https://www.aoausa.com/magazine/aoa-petition-mortgage-tax-deferment-relief-for-property-owners-during-coronavirus-crisis/

Apartment association of Greater Los Angeles ://aagla.org/



https://caanet.org/?campaignid=370269636&adgroupid=33488653813&adid=196901338764&gclid=Cj0KCQjwm9D0BRCMARIsAIfvfIbh3r1vcnG7MApNCLb7RN9vYzlO4E2fmXDqAIFkmgjNf7tv2ooQq2MaAgQmEALw_wcB

California Apartment Association Resource Page

They're really handing us the bill.  A lot of tenants will defer rent until the eviction moratorium is lifted and end up owing landlords $12-15k then they'll just move out

We need to get organized and proactively contact our representatives to fight this.  

Some Apartment Association resources, Petitions, and how to easily contact local government and representatives:

Los Angeles Apartment Association 

https://aagla.org/

  

Apartment Owners Association 

https://aoausa.com/index.php

AOA Petition to Governor Gavin Newsom

https://www.aoausa.com/magazine/aoa-petition-mortgage-tax-deferment-relief-for-property-owners-during-coronavirus-crisis/

Apartment association of Greater Los Angeles ://aagla.org/



https://caanet.org/?campaignid=370269636&adgroupid=33488653813&adid=196901338764&gclid=Cj0KCQjwm9D0BRCMARIsAIfvfIbh3r1vcnG7MApNCLb7RN9vYzlO4E2fmXDqAIFkmgjNf7tv2ooQq2MaAgQmEALw_wcB

California Apartment Association Resource Page 

Also I recommend these resources:

https://www.naahq.org/ National Apartment Association
They have forms for fontacting representatives to help the housing industry. Apartment Industry Advocats


https://www.naahq.org/advocacy/policy-issues/rental-housing-providers-need-immediate-relief

Hi Gary any updates from today?  It seems like none of the big banks are actually taking applications. 

I was wondering the same thing. I am pretty sure what ever profit you have as an LLC or sole proprietor could be considerd your 'payroll' as a real estate landlord but I'm not certain. Any more news on how a sole proprietor or LLC would apply for PPP

It seems that a lot of the government's response has been to 'pass the buck' to landlords instead of equally distributing any hardship. Remember 'tough times don't last...tough people do.' I'm letting this whole virus and gov shut down situation be a 'wake up' call to retweek and fine tune my business and personal life.

There's a lot of discussions about helping renters or 'rent forgiveness and eviction blocking laws ' where there's not much to do about our expenses as housing providers. We have mortgages, insurance, repairs, improvements, maintenance, vendors, utilities, and of course property taxes. I definitely feel bad for our society collectively, but I also don't think they should stigmitize us as landlords--who are really job creating entrepreneurs and small business owners.

Us landlords are probably going to be the last ones that government and society will think to need help or assistance.

The government is puting protections which can drastically 'cut' our income as property investors, yet doesn't have any plans of subsidizing all of our expenses. There are some discussions about mortgage deferement or forebearance, but that doesn't cover the other half of my expenses.

In the long run, I believe a lot of politicians and the government will use the social programs to implement more of their agenda taking away property owner rights. This historically has backfired, often making the wealth gap increase...and housing less affordable.

Let these unprecedented times be a 'Reset' to rethink, or finetune your goals and priorities in your RE business. Think long term and zoom out. This will just be a 'blip' in the path to RE and life success. 

Stay positive and be proactive. Action is the solution to every 'problem'. We'll get through this and anyone who does will be stronger.




Here are some resources mainly about the Coronavirus Tax bill "CARES ACT


https://taxfoundation.org/care... National Apartment Association



https://www.hud.gov/coronaviru... HUD guidlens on Coronavirus


https://caanet.org/ Check out California apartment association Disaster Guide - Updates on Gov Newsom and COVID related to apartment industry

https://www.sba.gov/funding-pr... SBA Disaster Assistance - for Sole proprietor (landlords) LLC S Corps 3.75% loans under 25k without collateral or 3.75% for + $25k loans with collateral (like your real estate)


https://disasterloan.sba.gov/e... SBA Personal Home Assistance

https://www.gibsondunn.com/sen... More on CARES Act

The CARES Act is a retroactive amendment to the bonus depreciation rules, which should allow taxpayers to claim 100% bonus depreciation for “qualified improvement property.” Real estate owners who previously would have qualified for the 50% bonus depreciation provisions, would now potentially qualify for the 100% bonus depreciation for qualified improvement. Taxpayers who may have made expenditures during calendar year 2018 and who have already filed U.S. federal tax returns for 2018, may be entitled to tax refunds based on the retroactive application of this amendment.

 How's the local residential real estate market in anderson now?

How about the downtown area?  If I did invest there I'd probably pick up 6+ houses or buy a 12 unit multifamily in the urban downtown area.'

Is there any growth in terms of jobs economy in Anderson?

Any other local areas that have better investment outlooks?

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $460,000
Cash invested: $150

Contributors:
Amaury Zambrano

This is a fix in flip purchased under 75% ARV and looking to resell in late February or early March depending on changes in the scope of work.
ARV is approximately $610,000
Private Loan is $400k the rest is my own cash invested.
So my initial personal cash was apx $60k I will put in $45k construction $10k holding costs, $15k closing costs. Approximation.
approximately 50% return on investment depending on how long I hold this.

What made you interested in investing in this type of deal?

Improving properties through major renovations.

How did you find this deal and how did you negotiate it?

Network

How did you finance this deal?

Network and friends.

How did you add value to the deal?

Major improvements to layout, bath, exterior, kitchen gut, floors, wood work, roof, repipe, new electric

Lessons learned? Challenges?

Making bold moves and pushing self past prior 'limitting beliefs'

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Yes

Thanks to all the above.  I've been in business 15+ years and finally have checked my Duns. I forgot that I had called in and created a D&B/ Duns # about 10 years ago.  I'm just not sure if it has helped or not.

I've done commercial loans up to $1.1m and have a few in the high 800k and 900k for commercial properties. I don't recall any banks or credit unions asking for my DUNS number.  The only time I've had to provide a DUN Number was when I applied for state and local grants for improving my commercial properties and I highly doubt paying those $1000-$1500 Duns an Bradstreet monitoring services would help in the slightest.

I don't use Home depot commercial accounts but I suppose I could open one if it will help my DUN D&B  score.  I have Capital One Spark business credit cards which I believe report to D&B.  Does anyone know if Chase Ink Business cards report to D&B/ DUN

Will