All Forum Posts by: Sam Cherry

Yes share it I am trying to get the word out that we as landlords should be seeking to use the correct government office to provide us relief.  

This is why I keep saying this is being run by the wrong department.  It is being run by banks.  The real solution for Landlords is with the Section 8 program.

Read here about the SBA program.

https://www.zerohedge.com/econ...

You are expecting banks to willfully do something they aren't set up to do.

They will dither arguing about interest rates and not knowing if you qualify.

Housing and Urban Renewal runs the Section 8 program which is set up for landlords.

We need to get Congress and the White House moving for Landlords now through an emergency Section 8 program.

Read more here.

https://www.biggerpockets.com/...

Again, if I am wrong I am wrong, but the application I reviewed was loss or revenue and cost of goods sold.

I am not saying this will not be of assistance, however the Federal Government needs to help landlords in another fashion.

If people understand how government works then they will understand how to propose solutions that are viable.

I hope this works for people, however based on my personal experience you may be expecting something that isn't help at all.

I know people are going to experience a loss.  

This is why others are asking for the "loss of use" provision to be opened to this "disaster" to be paid under their insurance policy and then the Insurance Company is re-imbursed by the federal government.

There are various solutions proposed.

The SBA is the only game in town, however I am proposing a solution that is Landlord centric.

Internal Revenue Code (IRC) 101

To understand what Department of the FEDERAL GOVERNMENT provides relieve you must understand the IRC.

SCHEDULE C (Employers) are the responsibility of the Dept of Commerce and therefore the SBA. This is why the Treasury Secretary and President keep talking about Employers keeping EMPLOYEES on the payroll.

SCHEDULE F (Farmers) are the responsibility of the Dept of Agriculture. Farm aid is doled out by that agency.

SCHEDULE E (Landlords) are the responsibility of the Department of Housing and Urban Development.

This is why the SBA Loan application doesn't make sense.

As landlords we deal with Gross Rents not Cost of Goods Sold and Gross Revenues.

You need to call your representative and tell them to get the Department of Housing and Urban Development to make emergency changes to the Section 8 program.

That is how it is done for Landlords

Internal Revenue Code (IRC) 101 

To understand what Department of the FEDERAL GOVERNMENT provides relieve you must understand the IRC.

SCHEDULE C (Employers) are the responsibility of the Dept of Commerce and therefore the SBA.  This is why the Treasury Secretary and President keep talking about Employers keeping EMPLOYEES on the payroll.

SCHEDULE F (Farmers) are the responsibility of the Dept of Agriculture.  Farm aid is doled out by that agency.

SCHEDULE E (Landlords) are the responsibility of the Department of Housing and Urban Development.   

This is why the SBA Loan application doesn't make sense.  

As landlords we deal with Gross Rents not Cost of Goods Sold and Gross Revenues.

You need to call your representative and tell them to get the Department of Housing and Urban Development to make emergency changes to the Section 8 program.

That is how it is done for Landlords.

No one seems to understand that the SBA is for SCHEDULE C businesses.

Landlording is a is a different business.  It is a SCHEDULE E business and Housing and Urban Development is the Correct Department to handle landlords.

Just like Farms are a SCHEDULE F Business and the US FEDERAL DEPARTMENT of AGRICULTURE provides relief to Farmers and not the SBA.

PEOPLE YOU NEED TO UNDERSTAND THE CONSTITUTION AND HOW FEDERAL DEPARTMENTS WORK,

Again more proof of the prediction that this will be the SBA relief that wasn't (at least for landlords).  

If you have ever done this before (I have during hurricane Floyd) 

The SBA wasn't any help for a small business.   I watched what the non-help of the SBA was for my fathers (1 employee-himself) operation.

The SBA help keeps being touted for EMPLOYERS.  Landlords are not EMPLOYERS.  We don't pay FICA on our Schedule E.  

The SBA is set up to help SCHEDULE C businesses this is why no one can understand the application.

If you want help that is directed at landlords then I suggest you go here and call your congressman immediately.

https://www.biggerpockets.com/...

Everything is fine until these renters move in mass to other states.  Good luck in getting your rent in arrears then. 

Tenants pay when it is due unless the Landlord and Tenant agree to a forbearance.  

Government doesn't have the power to change the terms of a contract entered into freely.  What should be said is tenants can cancel their lease without penalty and move. 

The landlord tenancy laws in the country and especially in the NE are anti-landlord.  

The lesson is everyone and especially tenants should have been saving so they have a cushion.  

If the whole country was fiscally responsible we wouldn't be having this discussion right now.

Aaron F. New to Real Estate from US

replied about 4 hours ago

I have only read the first 7 pages of this thread so forgive me if this has been asked. I started applying and came to a point that says using funds for ineligible uses will result in serious fines. This article shows some ineligible uses: https://www.sba.gov/sites/defa...

It seems the money is not able to be used for repairs or further investment and cannot be disbursed to an owner other than for services provided to the company.

If an investor does not have much in the way of mortgage debts, how useful is this loan? Maybe it can pay taxes, insurance, a fair rate for property management provided by the owner.. but it is maybe not so useful in supplementing all the anticipated lost rental income used for living. Thoughts?

I am warning you you need a lawyer.

You have to understand the fine print of what you are signing.

this help may cost you more than you think.

This is better option if congress would just do it.

https://www.biggerpockets.com/...

Yes but it is a direct payment to the landlord.