All Forum Posts by: Salvatore Trapani

@Benjamin A Ersing
I have not accepted the loan, just yet.
I received an email from an "Attorney Advisor" from SBA requesting an update on whether or not I would be signing/accepting loan docs.
Since I had a direct person to ask, I questioned the use of the funds and certain terms in reference to sale of company assets.

I'm still contemplating the use of these funds.

Here was the response I received:

"EIDL funds usage is limited to the daily operating expenses of business and aren’t for investment or improvement purposes. Regarding payroll, you may use funds to compensate those individuals for their services in the ordinary course of business.

The SBA UCC filing reaches all business assets to the value of the loan. It’s a general, blanket UCC filing that doesn’t prohibit the acquiring or transfer of assets in the ordinary course of business.

A loan amount of $25,000 or less is unsecured, and removes the Security Agreement and UCC filing, but loan proceeds usage requirements remain in place."

As others have mentioned, I too received a sizeable approved loan and have been hesitant to accept. I have about a week to go before it "expires".

I use my S-corp for fix and flips, but wasnt able to acquire any properties during lockdown. I'm also a Realtor and was essentially my income was impacted 2-fold.

My question would be if I accept the loan, should/could I simply open a separate bank account and pay myself and/or other employees a wage/salary.

I was going to give myself a wage this year, but since I didn't have any deals, prior to the lockdown, I didn't apply any (therefore also lost out on PPP).

As others have mentioned, I too received a sizeable approved loan and have been hesitant to accept. I have about a week to go before it "expires".

I use my S-corp for fix and flips, but wasnt able to acquire any properties during lockdown. I'm also a Realtor and was essentially my income was impacted 2-fold.

My question would be if I accept the loan, should/could I simply open a separate bank account and pay myself and/or other employees a wage/salary.

I was going to give myself a wage this year, but since I didn't have any deals, prior to the lockdown, I didn't apply any (therefore also lost out on PPP).

In NYC, the listing agent must dictate on MLS whether a property is an REO or Short Sale listing.

Shane's initial post mentioned 'auctioned off', so I took it as foreclosure auction.

Whomever is negotiating the short sale should determine if there is a scheduled auction sales date to accurately assume what that March sales date is.

I have to disagree with Minna. The lender is not 'powerless' in a short sale. They absolutely hold ALL the power. They are under no obligation to approve a short sale and therefore can and will proceed with the auction/foreclosure if they don't agree to the terms and offer.

A seller and buyer being under contract on a short sale transaction does not eliminate a potential foreclosure action. It may postpone the process while it's under review.

A foreclosure auction cannot be superceded by an executed contract.

If you do not receive an approved short sale from the lender and do not close and submit all documents and funds to said lender prior to the auction date, you'll probably be out of luck.

Typically a lender will postpone (or remove) a scheduled foreclosure sales date (auction) if there's an active approved short sale.

@Noami Chaudhary What are you trying to find out with the information provided? As Bill stated, how is it a single unit condo and multi-family? 

You have some conflicting specs.

Wholesaling a property, seeking some advice on a consulting fee/finders fee agreement in terms of what to include/exclude from the agreement and whether it should be a basic document or more thought out and complex agreement with specific terms and conditions?

Anybody have any example or templates?

Hi William,

I've negotiated short sales since 2008, but have yet to negotiate a reverse mortgage. That being said, it is required that the homeowners sell the property at a loss for the bank (or in this case HUD) to accept the lower offer, hence "short sale". I'm assuming that's still the case with HUD.

If so, your family would have to relinquish rights to the property via an Arms-Length Transaction (Non-family member). Do you have a buyer lined up?

As far as reducing the previous value accepted, I've recently had a lender require a short sale at $650k, reduce and approve it at $475k with proper and adequate Market Analysis. 

Feel free to message me to discuss further.

Hi Jinyu,

I'm a Realtor and Property Manager located in Bayside, Queens. Would love to meet and discuss your current scenario.