This program allows a lender (such as a bank or credit union) to provide small business owners with a loan that then is "forgiven" when you show that you spent the money on "qualified expenses."

• Loans can be for up to two months of your average monthly payroll costs from the last year plus an additional 25% of that amount. The loan amount is capped at $10 million. AS OF YESTERDAY: The payroll calculation no longer includes 1099 contractors in the formula
• Loans will be forgiven up to the loan amount for a borrower's payroll, rent, mortgage, and utility costs incurred and paid during an eight-week period after a loan is originated.
• Loan forgiveness will be reduced to the extent of a) any reduction in employee headcount during this period (as compared to the prior year), and b) any reduction in pay of an employee by more than 25% (as compared to their prior year compensation). Borrowers that rehire workers will not be penalized for p
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There is no doubt a national crisis upon us when it comes to health, work and our homes. Millions of Americans are faced with joblessness amidst the current pandemic. With the loss of income and/or the loss of health, a domino effect has occurred and has impacted almost every area of our lives.

Currently we all are experiencing tension in the face of an uncertain future. Whether that be health, career or home, we all have something at stake. When it comes to the housing market, there are several points of impact, from the renter to the investor or landlord.

For landlords, renting out property is a means of revenue. For some, this is their only means of income. Renters and landlords are both facing dire circumstances from either side of the spectrum.

Thankfully, there are organizations getting involved and working hard to see that individuals on all sides are being represented. Under One Roof Coalition as well as FFREIA are  pushing forward to help both tenants and property owners. Through the National Apartment Association, we are asking Congress to help renters & property owners to recover from COVID-19 and the housing issues it’s caused.

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These days are moving VERY quickly, and we are working VERY hard to get communication out to our blog readers, clients, and friends. One huge break is the extension of filing and payment tax deadline to July 15, 2020.

You probably already heard that the CARES Act (the mammoth 880+ page disaster relief bill) was signed over the weekend, and help IS indeed on the way.

But there are so. many. rumors. flying around out there that I wanted to reach out to clear up some confusion. (I've even seen some accountants charge frightened business owners over $2K for filling out these 5-minute forms.)

First things first (and before I give you any more details):

The SBA EIDL online application is BACK up and running.

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Landlords that rent out their properties for off-campus housing may be facing a bind. The COVID-19 pandemic has caused world-wide disruption in countless ways, creating economic issues. The housing market is no exception.

When it comes to student loan housing, landlords face the present challenge ahead. Some college students have left to be with their families and others have lost their jobs that pay for rent. This causes a dilemma for landlords that house off-campus students across the nation.

While students are trying to get out of contracts early, this creates a situation for the landlord. How will landlords bridge the gap?

For landlords that count on the rent to pay the monthly mortgage on the rented property are in a tough spot.

There is certainly compassion for students and landlords stuck in this quandary. If students are released early from their contracts, landlords bear the financial brunt of  the truncated agreement. 

“As the student housing industry grapples with how to respond to the pandemic, there is much uncertainty with how this will impact markets and leasing velocity,” says Christian O’Lone, regional property manager with DMG Investments. As stated via stud
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How are you holding up? If you haven't yet done so, please do shoot me a quick note to let me know how your business is managing.

Thanks to those readers who responded this last week. Seems all are doing well.

Depending on the situation, I have lots of ways to help ... some of which I'll give you details about today.

I will continue to be posting here more updates than normal, as there are rapidly unfolding NEW credits being considered (even as I type) by Congress, as well as a bunch of emergency actions done by various departments under the executive branch ... all designed to help YOU.

I do believe that we will get through this. This isn't a medical or epidemiological opinion (neither of which I'm particularly qualified to offer), but rather a statement about the confidence I have in my readers, my clients, and our communities, and the businesses they represent.

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The name of the game is to pivot, the vacation rental industry is not what it was 10 days ago. If you are not sure you want to work crazy hard, staying in this industry may not be for you. In the last 10 days I think we have worked harder as a company than ever before, and probably made far less proportionally as well. I’m not sure the accuracy of the stats but 80% of existing reservations were cancelled, with an estimated greater amount where the reservation was kept because a refund could not be awarded. Airbnb’s cancellation policy override has crushed many hosts, but we are seeing now more than ever there are NEEDS for flexible housing options.

I love what we do as a property management company, especially now that we have the opportunity to provide housing for those that desperately need it. Lives depend on medical workers and necessary staff in many industries, we can house those staff and others. If you want to stay in the industry the time is now to pivot or take a break. 

Here are entirely too many ideas to keep your units occupied, you choose which ones work for your units, markets and situation. 
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New York State, among other states, has taken action to halt evictions during the current pandemic. New York’s Chief Administrative, Judge Lawrence Malks, stated in a memo that starting Tuesday, eviction proceedings and pending eviction orders will be suspended statewide until further notice.

The White House also issued a press-release stating HUD, Freddie Mac and Fannie Mae will suspend foreclosures to the end of April. If the health crisis continues at this level, that won’t be enough. 

That’s roughly one monthly mortgage payment for some mortgages. 

If evictions are postponed indefinitely, but mortgage lapse has a time limit until the end of next month, the gap is concerning. Landlords, rightly so, worry that if renters  are unable to pay longer term, then how will the property owner pay their lender? Small-scale proprietors making up the difference isn’t a solution, another adjustment will have to be made in the near future.

Are there additional actions that can be made in the longer interim? Comment below with any beneficial thoughts, opinions or solutions.

*Because of the fast-changing pace of information during this time, all details above
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No, this is NOT just another "here's what we're doing about COVID-19" message.

The time for that was last week. Every brand and their brother sent out those messages, and they lost their usefulness -- right now, it's a marketplace expectation that we're all taking serious steps.

Regardless of what you feel about this situation, or the governmental response to it, it's time that we recognize that the ground has already shifted under our feet.

You can waste your (precious) breath to rail against that, or you can get productive.

But more about that in a moment.

For now, you don't need any medical advice from me, nor would it be beneficial for me to share with you my "work from home tips" (though those will be coming sometime soon).

Instead, I'm going to stay in my lane, and get real with you about your business r
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Is the spread of coronavirus cause for concern when it comes to investing in real estate?

Although we shouldn’t take this turn of events lightly, there is no need to be over-alarmed. Panicking disrupts versus constructively approaching the issue with a level head. As investors, it's important to have a beneficial conversation about the potential impact.

We want to hear from you, what are your thoughts and opinions? Please share in the comment section below.

Here are some resources to read and consider:

https://www.fool.com/millionacres/real-estate-market/articles/how-the-coronavirus-could-impact-the-american-real-estate-market/
https://www.curbed.com/2020/3/6/21163523/coronavirus-economic-impact-housing-market
https://azbigmedia.com/real-estate/the-coronavirus-impact-on-the-real-estate-industry/
https://www.kirklandreporter.com/business/real-estate-coronavirus-mortgage-rates-and-inventory/

Imagine this scenario… 

You find a good piece of real estate that you decide to buy. 

You have little money to buy it, but you decide to use whatever money you have as part of your down payment. 

You get qualified for a 90% LTV loan. 

You call around and you are able to raise the remaining money you need for the down payment from your close friends and family. 

You promise to pay them a generous interest rate of 8% for lending you their hard-earned money. 

The following month, you find another good real estate property that you want to buy.

You have no money to buy it, but you know you can raise the money. 

You have great income and credit and once again you get qualified for a loan with 90% LTV.

You call around and you are able to raise some of the money from your close friends and family. Again, you promise to pay them a generous interest rate of 8% for lending you their hard-earned money. 

This time, you remember about a line of credit you have, and so you decide to use all of it to close the deal.

You’ve now raised
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