Login | Join Our FREE VIP Investor Group

REALTY411Guide.com

Serving the Real Estate Industry Since 2007

coronavirus

Breaking: Demystifing CARES Act and Other COVID-19 Resources for Investors

By

By Stephanie Mojica

The $2.2 trillion CARES Act is the largest economic relief program in the history of the United States and has two primary programs to offer — the Paycheck Protection Plan (PPP) and the Economic Injury Disaster Loan (EIDL).

These programs, offered through the Small Business Administration (SBA), provide unprecedented economic relief for entrepreneurs, according to Rony Marootian. He is the Marketing Operations Manager for the Los Angeles-based tax preparation and financial consulting firm Robert Hall & Associates.

PPP loans are based on the average monthly payroll expenses of a business, multiplied by 2.5 and capped at $10 million, according to Marootian. They are intended to cover expenses for a business during any eight-week period between February 15, 2020 and June 30, 2020. PPP funds can be used for payroll costs, rents, mortgage interest, and utilities. If a business owner maintains a certain level of payroll expenses and employee numbers during that eight-week period, the loan is 100% forgiven; as employee numbers fall below those levels, the forgivable amount is phased out.

While business owners can get both the PPP and the EIDL, both loans cannot be used for the same purpose, Marootian said in a recent email interview with Realty411.

According to the U.S. Chamber of Commerce, “if you are able to secure a PPP loan, the $10,000 grant will be subtracted from the forgiveness amount.”

EIDLs (also known as emergency advance grants) are to be distributed within three days of a business’ application; however, the PPP program does not have deadlines for lenders to disburse loans, Marootian said.

“However, the purpose of these new programs is to get funds to small businesses struggling to stay open and keep employees paid due to COVID-19, so the CARES Act has provisions to reduce burdens in the processes and increase efficiency,” he added.

SBA PPP loans are disbursed by SBA-approved lenders. Due to the circumstances of the COVID-19 crisis, the SBA has given the U.S. Department of the Treasury and the SBA the ability to grant temporary SBA-lender status to lenders that do not currently participate in the program; this will allow more loans to be approved and disbursed as quickly as possible. The SBA does not issue PPP loans, but instead guarantees them to the lender. However, the SBA directly administers EIDLs.

“Based on our experience, we’ve not seen the government provide such a rapid response to help small businesses,” Marootian said.

“The purpose of these new programs is to keep small businesses afloat and get funds to small businesses who are struggling to continue to pay employees, so it was imperative that they responded quickly.”

According to the CARES Act, a small business is any business that operates with 500 or fewer employees. In some industries, the size may be expanded by the SBA. Self-employed professionals, independent contractors, and sole proprietors also qualify, according to Marootian.

“The SBA does not currently have an industry size standard for employee numbers for real estate brokerages, property managers, appraisers, or other activities related to real estate,” Marootian said.

Sole proprietors and “gig economy” workers will have to provide documentation to prove eligibility, including payroll tax filings to the IRS, Forms 1099-MISC, and income and expenses from the sole proprietorship, according to Marootian.

Marootian emphasized the importance of not pursuing any financial programs or making any business-related expenditures without some level of professional guidance.

“With so much uncertainty, be sure to speak to your accountant and financial advisor to review your options before you spend any money during this time,” Marootian added.

To find more information about the PPP loan program, please visit: https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/paycheck-protection-program-ppp

To find more information about the EIDL, please visit: https://covid19relief.sba.gov

Robert Hall & Associates is currently offering complimentary consultations about taxes and other financial concerns. For more information, call 818-242-488 or email [email protected].

Breaking News: This Week’s Historic Stock Surge Calms Investors

By

By Stephanie Mojica

After weeks of bad news, there is plenty of good news for real estate investors and realtors alike. On Wednesday, March 25, U.S. President Donald J. Trump as well as Senate and Congressional leaders reached an agreement on a $2 trillion stimulus package to hopefully stave off any recession due to the myriad problems caused by COVID-19.

The day before, Dow had its best day since 1933, according to The Los Angeles Times. Dow’s index increased by 11.4%.

Standard & Poor leaped 9.4%, which was the third-best day for gains since the 1940s. Because Standard & Poor is particularly important for 401(k)s, which impact an estimated 50% of American workers, according to CNBC.

Nasdaq jumped 8.1% as well.

According to Forbes, the unprecedented stimulus package will do the following:

• send $1,200 checks to most Americans;
• increase unemployment insurance benefits;
• set up a $500 billion loan program for small businesses in trouble;
• provide $130 billion for hospitals;
• inject $150 billion into state and local stimulus funds;
• loan $50 billion to affected airlines; and
• create a $500 billion fund for industries, cities, and states.

Yesterday’s latest statement from President Trump indicates he set Easter as an optimistic date for businesses to resume to full operation. These positive signs from Wall Street and the executive branch are increasing investor confidence in both the stock and real estate markets.

What To Do When You Are On Lockdown

By

Nothing is a waste of time if you use the experience wisely
-Rodin

On Thursday Governor Gavin Newsom announced a shelter-in-place order for California residents. This proves to be difficult for many people who are used to being on the go and getting their hustle on every day.

While 16 critical sectors remain open, most businesses are closed. This leaves a large part of Californians sequestered at home. Of course, this is a necessary evil if we want to reduce the spread of the Covid-19 virus.

So the question is what can you do at home during this time of uncertainty? There is always so much to do. Here are some ideas for you to consider:

Learn more about your business

Whatever your business is there’s always something to learn. Take this time to study in-depth, the ins-and-outs of your business. If you are in real estate, for example, catch up on continuing education. Study your competition. Learn the different facets of your business that you may not have had time to learn previously. Research. Learn. Grow.

Spend time with your family

The stay-at-home order is pretty much forcing you to spend time with your family. But are you really spending time with them? In this day and age of cell phones and computers, people can put themselves in a bubble and be oblivious to what’s going on even in their own homes. Consider unplugging! Pull out board games. Make family meals together and enjoy them around the kitchen table. Make memories even if they’re in your living room. Pick a big bowl of popcorn and Netflix and chill. NO! Not that kind of Netflix and chill. The family PG version is what I’m talking about. Just talk to each other. Learn more about each other. Unite.

Get an education

I know most of you would rather watch paint dry then go back to school. But a cure for boredom could be expanding your horizons by learning something new. There are many online courses that are now offering free training. Here are just a few:

Coursera

According to Quora, Coursera is a free online learning tool for everyone who has an account registered. Account registration is also free of cost. All courses offered by Coursera are “accessible for free”. Each course includes short video lectures on different topics and assignments to be submitted, usually on a weekly basis.

Stanford Online

It’s Stanford University. It needs no introduction. There are classes that you can audit.

Edx

According to the definition on Wikipedia, edX is a massive open online course provider. It hosts online university-level courses in a wide range of disciplines to a worldwide student body, including some courses at no charge. It also conducts research into learning based on how people use its platform.

Learn a new hobby

Learning a new hobby will surely pass time. Have you ever wanted to learn to crochet? Or how about learning to play the piano? The internet is chock-full of how-to videos. So just type in YouTube in your search bar and find the hobby that suits you.

Get some exercise

The shelter-in-place order does mean you have to be completely closed off. You can still go for walks. Just make sure you stay six feet away from the next guy. Walk away from cabin fever!

Whatever you decide to do this during this coronavirus pandemic; make it count! Use this extra time wisely. Whether it’s reading a book, budgeting your checkbook, cuddling with loved ones, or just catching up on sleep; appreciate the break, look on the bright side and be thankful. Very thankful. Stay Safe!

Holly Lynn

Experienced Owner with a demonstrated history of working in the real estate industry. Skilled in Team Building, Television, Leadership, Marketing, and Digital Marketing. Strong business development professional who graduated from San Francisco State University, College of Business.

The Queen of Capital, Holly Lynn specializes in helping people with their real estate needs. She is a creative and results-driven resource who can help investors at every level.

Her authentic, personal relationships with both lenders and investors coupled with her vision, work ethic and endless desire to make the deal work position her as a sought-after, leader in the industry.

Holly Lynn can help you with hard money, private financing and other funding for your investments and projects.

She is a self-taught deal maker who has always had a keen business sense. She works with investors and syndication across the board who are looking for real estate investments that produce passive income streams.

She built B.A.M.F into the single most recognized name that is designed to build strong relationships and invest in multifamily projects to create massive cash flow and wealth. B.A.M.F monthly meetups in San Francisco, San Mateo, Fremont, San Jose and those conducted through webinars are open for everyone. As the multifamily properties continue to be an investment megatrend, She gives everyone an opportunity to learn about multifamily property investments and opportunities that would only be otherwise available for top dealers and those who met the qualifications by SEC. But through B.A.M.F, you can meet with experts and deal organizers who can provide you with great investment options.

Holly’s reputation has been earned one transaction at a time with no substitute for hard work and honesty. Take advantage of her deep proven experience in the real estate and investment market by joining her events and mixers. Mixers that are organized by B.A.M.F is sought after by reputable individuals in the investment and finance field. It is your chance to learn and grow.

“I have always believed that your money is waiting for you, but you have to keep yourself open to receiving it.”

– Holly Lynn –

COVID-19 Continues to Impact 2020 Economy – Experts Share Insight

By

Coronavirus 2019, often called COVID-19 or simply the coronavirus, has had a clear negative impact on 2020 real estate transactions and financial markets in general, according to some experts. They also have predicted that more bad news is on the way. 

“New commercial (real estate) transactions will likely decline because of the preference of Chinese investors to visit a property in person at least once before a deal closes,” Jacky He, CEO of DMG Investments, the U.S. subsidiary of the China-based developer DoThink Group, said in a recent interview with Yahoo! Finance. 

Gena Lofton, a real estate investor for over 20 years and a resident of Ladera Heights in Los Angeles County, said in an email interview with Realty411 that “real estate is not immune from the coronavirus.” 

Lofton, also an author and speaker, gave the following examples of how COVID-19 could impact the real estate industry. 

  • A possible reduction in purchase/sale transactions; 
  • The owners of warehouse properties may have empty shelves as a result of supply chain disruption(s); 
  • Tourism and hospitality properties may have lower occupancies, resulting in a reduction in NOI; 
  • Retail and restaurant tenants may have less customers, causing margin pressure that could impact their ability to pay rent; and 
  • Multi-family property owners could see a spike in late payments and vacancies in the event employers miss payroll, delay hiring, and/or begin laying off workers. 

When asked if the coronavirus is the biggest crisis she has seen during her two decades in real estate, Lofton said, “Yes.” 

“I have never seen anything like the coronavirus crisis,” she added.  “It’s different due to the fact that a) it is deadly; b) it can be transmitted in the air, thus (it is) unable to (be) contained; and c) a vaccine will take time to develop, perform clinical testing, and commercialize. 

“I have heard a normal vaccine development process typically takes two to five years and the development of this vaccine could be accelerated to 18 months.   

“Thus, it’s the unknown of how long we will need to live with the status quo and the damage it will cause in the interim.” 

People with protective suits and mask respirators outdoors, coronavirus concept.
Image: 123rf.com

Some experts disagree with these assessments, at least in part. 

Heidi Learner, chief economist at the London-based global real estate services provider Savills, said in a recent interview with Yahoo! Finance that she believes commercial real estate transactions will not be dramatically affected by COVID-19.

Also, Learner said she does not believe investors will sell their properties unless the coronavirus becomes a more significant problem. She noted that any reduction in real estate transactions is “largely going to be a short-term reaction.” 

“I think if you think of real estate as a long-term asset, (then) losing income… for the next six months shouldn’t really affect long-term valuations,” Learner added. 

Lofton noted there is at least some good news when it comes to how COVID-19 could affect the real estate industry. 

“The good news is that the 10-year Treasury dropped below 1.3%, thus it is at historical lows and a great time to source cash out refinances and secure low interest, long-term debt,” Lofton said.”  

“Also, if you are an owner of a data center property, you should be fairly immune/protected.”   

However, there is more bad news to share when it comes to general financial markets — especially the stock market — according to Lofton. 

“A decline in global trade and travel will negatively impact earnings and economic growth,” she said.  “The risks to earnings may be underestimated in current stock prices, moving us into a bear market and causing a recession. There is a potential of no earnings growth in 2020.” 

“As a result of (the) Just in Time (JIT) inventory, plant closures will result in global supply chain disruptions — causing inventory shortages. For example, the Port of Los Angeles cargo (was) expected to have a 25% reduction in February.” 

As of February 28, the stock market had fallen for the seventh day in a row, according to The Washington Post. The week-long crash had caused investors throughout the world to lose a combined $4 trillion. 

Coronovirus, 3D illustration – Image: 123rf.com

The outbreak has now sickened more than 107,200 people worldwide, according to the New York Times latest update this morning citing official counts.

In the United States more than 400 cases and 19 death have been reported, again according to The New York Times latest report, “The Coronavirus Outbreak”, posted 37 minutes ago. Several countries, including China and Italy, are now on “lock down” in an effort to contain the spread of the virus, according to global news sources.

CBS News reported 16 minutes ago that a Grand Princess cruise ship is scheduled to dock in Oakland, Calif., with confirmed infected passengers. The New York Times reports that the 21 infected passengers will be taken to quarantine facilities.

CBS News is now reporting 20 deaths in the United States with one in California, 17 in Washington state, and two in Florida. The virus has been confirmed in cases in 32 states, plus Washington, D.C.

Although COVID-19 is severely impacting tourism, trade, securities and other markets, Realty411 events are continuing and safety measure will be taken before and during the events.

A special report from our company will be released soon detailing tips on how to stay safe at your home, work and at public events, including Realty411‘s upcoming California expos on March 28th in Irvine, Calif., and Santa Clara, Calif., on April 4th.

Please check back regularly for further updates on how COVID-19 is impacting our readers, industry, and world.

SOURCES:

https://www.washingtonpost.com/world/2020/02/29/coronavirus-live-updates/

https://www.cbsnews.com/live-updates/coronavirus-outbreak-death-toll-us-infections-latest-news-updates-2020-03-08/

https://www.nytimes.com/2020/03/08/world/coronavirus-news.html

This error message is only visible to WordPress admins