When it comes to the response to COVID-19, it turns out we are not all in this together.
Meet John and Susie, they both have worked for the same firm for the past 10 years, they have the same position and earn the exact same amount in salary and benefits. Susie contributes to her 401k plan, has a good savings account and even invests in stocks and bonds. Susie is financially secure and doing well. John also contributes to his 401k, has good savings and also invest in stocks and bonds. John is financially secure and doing well. John also bought a rental property to supplement his future retirement income.
Meet Fred, Fred has a good job too but chooses not to contribute to his 401K retirement plan. Fred likes to travel, he drives an expensive car and only makes the minimum payment on his maxed-out credit cards. Fred is living paycheck to paycheck.
In early 2020, the COVID virus pandemic hit. John and Fred got laid off from work. John had savings and a little income from his Investments. He knew he could make financial ends meet if he just tightened his belt a little. Fred was Broke. When Fred couldn’t pay his rent, he complained, a judge saw how much money John had and ordered John to take money from his savings and help Fred pay his bills John also had to loan Fred money at zero interest with no collateral and no late fees and did not think this was fair. He worked hard and sacrificed, now, he is being forced to pay Fred’s bills, too. and what about Susie? Why doesn’t Susie have to help pay Fred’s bills too after all she has the same financial net worth as John.
The reason is it’s the law, you see the combination of the CARES act, executive orders from the governor, local ordinances and assembly Bill 828 all result in this situation. The difference between John and Susie is John added real estate to his Investment Portfolio. Since John is a landlord. He’s singled out and forced to pay Fred’s bills. John is unhappy, Fred is happy and Susie is confused about the situation and so that’s where the line California currently stands.
Real Estate Investors like John are being treated unfairly. If you agree, please help us in our fight against the California legislators who are making these laws.