Author Topic: Coronavirus Stimulus Aid Package  (Read 25434 times)

Offline churnbabychurn

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Re: Coronavirus Stimulus Aid Package
« Reply #195 on: March 29, 2020, 11:44:52 AM »
Up to 500 employees
SBA has separate definitions of a small business. Are you sure those don't apply here?

Offline churnbabychurn

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Re: Coronavirus Stimulus Aid Package
« Reply #196 on: March 29, 2020, 11:45:46 AM »
Huh? Every property is a small business, we have payroll interest and utilities to pay, why would real estate small business be excluded??
I meant specific to real estate. The industry is receiving the opposite of a stimulus.

General payroll credits or loans apply.

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Re: Coronavirus Stimulus Aid Package
« Reply #197 on: March 29, 2020, 12:55:19 PM »
Huh? Every property is a small business, we have payroll interest and utilities to pay, why would real estate small business be excluded??

If you have small units each owned by an LLC, how do they each have payroll?
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Offline YesThatsMe

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Re: Coronavirus Stimulus Aid Package
« Reply #198 on: March 29, 2020, 12:59:18 PM »
I meant specific to real estate. The industry is receiving the opposite of a stimulus.

General payroll credits or loans apply.

Actually the new depreciation schedules in the bill are awesome for a typical Heimish multi-family owner.

Hotels got a nice exception with each property in a portfolio being considered independent.

Every property is itís own small business.

Biggest costs in real estate are interest, payroll, utilities. R&M can usually be fit into payroll & utilities as well. BTW contractors are considered payroll for the sake of these loans. So if these get turned to grants itís free money.

I actually think real estate did very well here.

Macro-wise- there are many aid and charities setting up now to help people pay for the 3 necessities: Medicine, Food, and Housing. So theyíll be more rents coming in than expenditures to non-essentials. The people getting enhanced unemployment will easily be able to cover rent, in fact many are gonna be making more money. And the stimulus checks will also get used on rent.

Yes the moratoriums are terrible but Iím gonna keep a nice list and evict anyone who took advantage of us, Iíll know who still has a job etc.

Iím not planning on asking for any forbearance at this point, on the contrary, Iíd rather accelerate some interest payments and prepay utilities which will then be counted as grants.

Offline YesThatsMe

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Re: Coronavirus Stimulus Aid Package
« Reply #199 on: March 29, 2020, 12:59:54 PM »
If you have small units each owned by an LLC, how do they each have payroll?

Each property has 150+ units with its own staff.

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Re: Coronavirus Stimulus Aid Package
« Reply #200 on: March 29, 2020, 01:05:40 PM »
I have an "umbrella" entity that manages a bunch of buildings. Each building however is under it's own corp/partnership.

Can I fill out just one loan app for the whole whammy under the management entity? (All my payroll is run through the management entity, but all utilities and mortgage payments through the individual buildings).

If someone can point me to a good article on this stimulus specifically for Real Estate portfolios owners and managers it would be very very helpful.

I think only the management entity can get the "Payroll Protection Loan" because the max loan amount is 2.5x your 2019 average monthly payroll.

Offline zale

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Re: Coronavirus Stimulus Aid Package
« Reply #201 on: March 29, 2020, 01:09:48 PM »
If someone with knowledge can post a wiki about how to get:

Unemployment from state and federal:

-as an employee
-as a 1099 contractor (Self employed)

Small business loan:

-as a business with employees
-as a business with no employees

Along with links where to apply

You would be helping out a lot of people in a real, tangible way.

Offline cgr

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Re: Coronavirus Stimulus Aid Package
« Reply #202 on: March 29, 2020, 01:10:32 PM »
Each property has 150+ units with its own staff.
If every entity is its own company with it's own payroll, an office, utilities (office utilities) etc then you should file for each entity for up to 2.5X that entities eligible expenses. If you keep all your staff on til June it will be forgiven.

Offline cgr

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Re: Coronavirus Stimulus Aid Package
« Reply #203 on: March 29, 2020, 01:11:57 PM »
If someone with knowledge can post a wiki about how to get:

Unemployment from state and federal:

-as an employee
-as a 1099 contractor (Self employed)

Small business loan:

-as a business with employees
-as a business with no employees

Along with links where to apply

You would be helping out a lot of people in a real, tangible way.
I'm working on a write up for this now (I can't post here but check back earlier posts for my link) but while a lot of details are becoming clearer, there is no system set up to actually apply yet. That will hopefully be available within the next week or two.

Offline churnbabychurn

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Re: Coronavirus Stimulus Aid Package
« Reply #204 on: March 29, 2020, 01:18:06 PM »
Actually the new depreciation schedules in the bill are awesome for a typical Heimish multi-family owner.

Hotels got a nice exception with each property in a portfolio being considered independent.

Every property is itís own small business.

Biggest costs in real estate are interest, payroll, utilities. R&M can usually be fit into payroll & utilities as well. BTW contractors are considered payroll for the sake of these loans. So if these get turned to grants itís free money.

I actually think real estate did very well here.

Macro-wise- there are many aid and charities setting up now to help people pay for the 3 necessities: Medicine, Food, and Housing. So theyíll be more rents coming in than expenditures to non-essentials. The people getting enhanced unemployment will easily be able to cover rent, in fact many are gonna be making more money. And the stimulus checks will also get used on rent.

Yes the moratoriums are terrible but Iím gonna keep a nice list and evict anyone who took advantage of us, Iíll know who still has a job etc.

Iím not planning on asking for any forbearance at this point, on the contrary, Iíd rather accelerate some interest payments and prepay utilities which will then be counted as grants.
How did real estate do well if you're collections are going to drop at least 20% for the next few months??

Which new depreciation schedules are in the bill? ?

Offline churnbabychurn

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Re: Coronavirus Stimulus Aid Package
« Reply #205 on: March 29, 2020, 01:21:36 PM »
I believe SBA small business for a multi family rental business is max 30m in revenue. They also have very strong affiliate rules so possibly most multifamily owners are not eligible for the loan with forgiveness.

Management companies should be able to get it if they are under 8m revenue

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Re: Coronavirus Stimulus Aid Package
« Reply #206 on: March 29, 2020, 01:44:46 PM »
Each property has 150+ units with its own staff.

Legit payroll then, why not (unless thereís a specific RE exception. This should be something a tax lawyer/accountant can advise on.

Biggest costs in real estate are interest, payroll, utilities. R&M can usually be fit into payroll & utilities as well.

What about things like heating oil, insurance, legal fees, compliance overhead?
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Offline ltttc

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Re: Coronavirus Stimulus Aid Package
« Reply #207 on: March 29, 2020, 01:49:03 PM »
If every entity is its own company with it's own payroll, an office, utilities (office utilities) etc then you should file for each entity for up to 2.5X that entities eligible expenses. If you keep all your staff on til June it will be forgiven.
Anything for real estate if their isn't any management staff and tenants pay their own utilities??

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Re: Coronavirus Stimulus Aid Package
« Reply #208 on: March 29, 2020, 02:19:31 PM »
I believe SBA small business for a multi family rental business is max 30m in revenue. They also have very strong affiliate rules so possibly most multifamily owners are not eligible for the loan with forgiveness.

Were these rules changed for these loans? I know that Shuls were excluded in the past, but can get now.

Offline YesThatsMe

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Re: Coronavirus Stimulus Aid Package
« Reply #209 on: March 29, 2020, 02:29:07 PM »
How did real estate do well if you're collections are going to drop at least 20% for the next few months??

Which new depreciation schedules are in the bill? ?

What does the 20% collection loss have to do with the bill? Thatís the viruses fault. 80% collections is awesome in a time like this. Remember this bill was written in mind for business that went to 0%, like restaurants.

https://www.businessinsider.com/wealthy-real-estate-investors-get-tax-cut-in-coronavirus-stimulus-2020-3