Podcast appearances and mentions of wendy sweet

This episode explores how to thrive in business when menopause hits by embracing physical & emotional changes, gaining knowledge, & redesigning your business & lifestyle to support long-term wellbeing.Let's have a heart-to-heart ❤️If you're a middle-aged woman in business who's suddenly finding it all… a lot harder, you're not imagining it. You're not broken. You're not lazy. And no, you haven't lost your edge

Dr Wendy Sweet PhD is a menopause educator, fitness specialist and healthy ageing expert for women. In this episode, we talk about the right type of exercise, lifting weights, how much protein is ideal and is creatine essential for you?And despite the well-meaning messages out there lifting more and more weights, eating more and more protein and taking creatine may not be right for you. It's different strokes for different folks. In this episode, we talk about:00:00 Introduction01:04 About Wendy05:42. Wendy's story10:44 Exercise and depression10:52 Understanding the importance of vitamin D14:23 We aren't our mother's generations16:15 Should women be lifting heavier and heavier weights? Is there a best choice of exercise?28:58 Exercise assumption, ageing and menopause33:40. American Heart Association Guidelines37:02 Recovery and blood work40:10 Your muscles are ageing and changing44:32 Do we need to be taking creatine?48:30 Fat gain and meno belly57:05 How much (and what type of protein should non-athletes be eating?59:52 The Keto diet and menopause01:01 The Mediterranean diet and menopauseWould you rather see our smiling faces? Subscribe to our YouTube channel here Episode Resources:Follow Wendy on Instagram hereFollow Wendy on Facebook hereMy Menopause Transformation newsletter hereAmerican Heart Association Guidelines hereWomen On Fire® is sponsored by MenoMe®Follow MenoMe® on Instagram hereFollow MenoMe® on Facebook hereVisit the website hereSubscribe to the YouTube channel to watch the interviews here We're honoured you've joined Women On Fire® and hope you enjoyed this episode. If you did, we would be grateful if you would leave us a 5-star review wherever you listen to your podcasts or subscribe to our YouTube channel. That way, we can reach as many women as possible with Women On Fire®.Hosted by Ausha. See ausha.co/privacy-policy for more information.

There is a lot of information available about dealing with menopause - some of it confusing and some of it contentious. In this episode, we invited Menopause expert, Dr Wendy Sweet, back onto our show to talk more specifically about exercise and menopause - what happens to our bodies when we exercise during menopause and what type of exercise should we be aiming to sustain? Dr Wendy Sweet is the founder of “My Menopause Transformation,” where she works with women globally to support them through the menopause transition. Wendy is a former registered nurse and was one of the early drivers of personalised training within the fitness industry.  She went on to do her Masters in Lifestyle Behaviour and a Ph.D. in nutrition and healthy aging. As part of her Menopause Transformation programme, Wendy has developed a range of personalised programmes for women going through perimenopause and menopause – acknowledging that every woman is different and will approach these years with different health states and different levels of knowledge about what their bodies are going through and the changes they can make to make life easier. https://www.mymenopausetransformation.com/  @MyMenopauseTransformation @my_menopause_transformation  Zestt Wellness: https://zesttwellness.com

While no business can be 100% recession-proof, you can become recession resistant and wildly successful in most markets. Bill Fairman and Wendy Sweet run a family business that includes owning short-term rental properties, self-storage facilities, and buying and selling certain properties. But their main thing is... lending. As private lenders with years of experience, they share their real estate expertise on how to protect and build your income with smart investing strategies. You'll enjoy the different ways to get creative with investing! Wendy & Bill's Website: https://www.carolinahardmoney.com/ Email To Contact: Bill@carolinahardmoney.com

Can you invest like the bank by becoming the lender instead of always the borrower? What investment strategies can we learn from banks to apply to our situations? My special guest with Carolina Capital, Wendy Sweet, will share how YOU can become the lender and take advantage of higher interest rates.

Welcome to episode 9 of the Nurtured by Nature podcast. Today I'm delighted to be joined in conversation by the fabulous Wendy Sweet. Wendy lives in the hills of County Mayo in Ireland. Alongside her husband Steve, they have created an oasis for nature and started their business Woo in the Willows. During this inspiring episode we explored how a closer look at the ingredients list on the back of a skin cream, led Wendy to question what she was putting on her skin and ultimately the creation of their beautiful range of natural botanical skin creams and products. Wendy openly shares both her passion and depth of knowledge about the healing properties of plants and herbs, from the diverse range of lavenders to the powerhouse that comes in the form of the humble little daisy. I learn how, inspired by Mary Reynolds' We Are The Ark in just a short time they have helped nature begin to reclaim their patch and how everyday we have the opportunity to learn and be amazed by the world around us and that by simply quietly taking our own journey we can unexpectedly inspire others, which can lead to changes we couldn't have planned.  Learn more about Wendy:  Wendy (Woo) Sweet is a Horticulturist, Garden Designer, Creator and Company Director of Woo in the Willows. In 2015 Wendy and her husband Steve, came across the 2-acre plot, Steve was totally bewildered by Wendy's insistence that the almost derelict house and ravaged patch of land could become their dream home. They have planted trees and wildflowers, encouraging wildlife and pollinators. Then set about producing as much of their own organic herbs and vegetables as they could. In 2020,  the concept of ‘Woo in the Willows' was born. Wendy was using commercial moisturisers when it dawned on them both that some of the ingredients were potentially harmful, particularly to a cancer survivor like Wendy. Over the lockdown days and nights, they researched organic, vegan body products and formulated the recipes that have become the basis for their body products, which they are proud to have passed their safety certification. They made the hard decision to temporarily give over the majority of their existing vegetable garden to make space for the wonderful varieties of lavenders until new beds could be established. These along with organic herbs and flowers are used widely in their beautiful body products and more recently in culinary oils, vinegars and salts. With sustainability in mind their aim is to use as many of their home-grown botanicals and herbs for all their ‘Woo in the Willows' products as is possible.Website: https://woointhewillows.comInstagram - https://www.instagram.com/woointhewillowsFacebook - https://www.facebook.com/woointhewillowsOther useful links from this episode:Find out more about the We Are The Ark Movement: https://wearetheark.org/ We Are The Ark Facebook Group: https://www.facebook.com/groups/80496844986Thank you for being a part of this journey with me, please Subscribe to make sure you don't miss our future episodes, and share with your friends to help these messages ripple out across the world. More information about the Nurtured by Nature Podcast and our host Fiona MacKay: Fiona Mackay Photography WebsiteConnect with us and join the conversation on social media:Instagram @FionaMacKayPhotographyFacebook @FionaMacKayPhotographyTwitter @FiMacKay

Bill Fairman (00:01): Hi, folks. This is the time of the year that you hate. It's called Setting Your Goals for 2023. We're gonna have more about that right after this.   (00:33): Thank you for joining us on the Real Estate Investor channel, hard Money for Real Estate Investors. We are Carolina Capital Management private lenders in the Southeast for real estate professionals. If you have a project you'd like us to take a look at, go to carolina hard money.com and click on the Apply Now tab. If you're a passive investor looking for passive returns, go to the accredited Investor tab. Oh, and you must click it as well. Don't forget the like, share. So subscribe. Hit the bell, sit there and look at it. , don't forget, Wednesdays with Wendy. Wendy sets aside 30 minutes per person to talk about anything real estate related. On Wednesdays, there's a link to get on her calendar. She's typically booked up pretty far in advance, so get in while the giddings. Good.   Wendy Sweet (01:36): excuse me. So Wendy, you had the Quest Con thing, and I'm pausing, I feel like the president when I'm reading a speech pause here,   (01:59): .   Bill Fairman (02:01): So tell us about it. How'd it go?   Wendy Sweet (02:04): It was a great, it, the whole event was incredible, but the panel was terrific. I was just so honored to be with the two panelists that I was on there with, that their, their brains are incredible. What was really cool is that were all three lenders and we all three underwrite a little bit differently. And, and that's really what we talked about were the, the different things that we look at. So you can still buy a recording from that event, so it's worth it. If, if you do that, it's well worth it.   Bill Fairman (02:40): Is there a URL that you know of where people can   Wendy Sweet (02:43): I'm sure there is one, but No, I don't know of it. But if you get on Quest Con Live 2022 on the, of course the internet Googles it, as we say. Well,   Bill Fairman (02:56): I'm, I'm pretty sure it'll materialize   Jonathan Davis (02:58): In our comment section.   Wendy Sweet (03:00): That's exactly right. . But that'll, and, and then you can buy it at a discount too with Carolina 15, I believe is what we had that I'm sorry,   Bill Fairman (03:11): I said sweet. Yeah,   Wendy Sweet (03:12): That's   Bill Fairman (03:13): Me,   Wendy Sweet (03:13): Not you. Sweet . Well, I, you know, it, it pains me to see you guys with that background of, you know, the beautiful   Bill Fairman (03:23): Tropical, tropical   Wendy Sweet (03:24): Plant. Sure. Yeah. It's cold here.   Jonathan Davis (03:27): It was, it was really tough to set out there this morning.   Wendy Sweet (03:32): I feel bad for you   Jonathan Davis (03:32): Guys barefoot while, you know, the sun, you know, was just beaming over the water.   Wendy Sweet (03:38): Just amazing how you guys constantly just take it for the team.   Bill Fairman (03:41): ,   Wendy Sweet (03:42): ,   Bill Fairman (03:42): Those who don't know, we're in Fort Lauderdale at the family office event. Yeah. It's called the Family Office Club. There's ultra high net worth individuals office here. Yeah. there's institutional investors as well as people that are trying to raise capital and people who are trying to deploy it.   Jonathan Davis (04:01): One of the great things, if, if you are interested in learning how to talk to or approach family offices, this is a great event because there's many panels with the, the managing partners of those family offices, setting there, telling you what they're looking for and how they look at things. So it can give you an insight into how to approach a family office, which is, which is is a great resource for a lot of people when you're looking f to, you know, a little bit more than buying or selling one or two loans, you know, kind of scaling.   Bill Fairman (04:35): Yeah. Quick tip. One pager and a one liner on what you do. They don't wanna see a whole blown out email your slide deck and all that. They're not gonna look at it to get inundated with stuff.   Wendy Sweet (04:46): Awesome. To explain just for a quick second, what a family office is, because many people may not know.   Jonathan Davis (04:53): Yeah. Family office is just it's a aggregation of family a family or multiple families. and they typically have a minimum of 10 million net worth.   Wendy Sweet (05:07):  well jump change.   Jonathan Davis (05:08): Most of them are probably closer to the a hundred million plus smart, but minimum of 10 million to kind of make the metrics work to start a family office. And it basically just helps you propel your wealth forward through multiple generations so that you can create a legacy. I mean, that's really it.   Bill Fairman (05:29): Well, most, most people that are in a family office or at start one, they want the money to last at least five generations. Mm-hmm. and unfortunately ultra net, high net worth families tend to run outta money in three . So it takes planning,   Jonathan Davis (05:52): A lot of planning, a lot of money, but yeah, no, it's, it's great to, to be here. we've enjoyed a lot of the connections and conversations and, and really the insights, I mean, on how to capital raise and how these, you know, we, we sat in on a panel with six different family office members, and they were judging and rating the one liners and the one pagers that were submitted. And it's so, you know, it's so interesting because you would get ranged from, oh, a scale of one to 10. Someone would give it a three, another person would give it a nine. Huh. And it's, and it's, and it's because it's just knowing who you're talking to because like, a family office isn't a family office isn't a family office, they're all different and they're all looking for different things. So it's just knowing who you are, knowing your voice and setting it for that. and, you know, that's, that's really it. And just being clear and concise. Yeah. Like Yeah. Oh, a one-liner should be a one-liner, not a one paragraph or .   Bill Fairman (06:50): It was funny, they were judging this one that took up the whole freaking slide and it was supposed to be a one line. Yeah. And it just went on and on and on. And the, the guy's holding up a three, he goes, yeah, you could have stopped after the first four words.   Jonathan Davis (07:06): . Yeah. So it's, it's, it's been insightful. So really good, you know, and the weather makes it a little more enjoyable. Yeah.   Wendy Sweet (07:14): four guys.   Bill Fairman (07:15): Yeah. Here's how I suffered. I had to come here and get into a t-shirt because I had already soaked through my dress shirt. Had to take off my sport coat because it was so hot walking over here. . Wow. Yeah. Isn't that awful? Yeah.   Wendy Sweet (07:28): That really is.   Jonathan Davis (07:30): Well, and to, to segue this, you know, a little bit into what we're talking about goals. So one of our goals is to, you know, partner up or source more capital from mult or from family offices. So that's why we're here to learn how, you know, how they think, what they're looking for. Right. Because that's part of our long-term goal.   Bill Fairman (07:50): Right. Right. Good, good segue. Yeah. All right. Before we get started with goal setting, however, we do have a little bit breaking news talk about, and when I say a little bit, I mean a little bit haven't been keeping up with the news much this week, but I did see that the consumer price index, CPI and the ppi, that's the producer price index, all came in this week. And I'm not giving you exact numbers, but I can tell you that they were less, a little less than expected mm-hmm. , which is better   Wendy Sweet (08:37): Than expected.   Bill Fairman (08:38): Yeah. Less inflation than inspect than expected. Right. And it, it's kind of given us an indication that maybe we've kind of hit the, the peak and hopefully it's going down from there.   Wendy Sweet (08:54): Can only pray fairly,   Bill Fairman (08:56): Excuse me, fairly certain that the Fed raised the rate another 50 basis points today mm-hmm.   Jonathan Davis (09:05): , and you know, it's not, you know, I, I got a nice little headline. what is it? The, the, the buying sentiment. So people who believe like now is a bad time to buy has reduced, it's reduced from 80% of people think it's a bad time to buy down to 79   Bill Fairman (09:27): to buy what?   Jonathan Davis (09:29): To buy real estate single family, like they're primary residents. Yeah. Yeah.   Bill Fairman (09:34): Well, also it has to depend on people, you know, what are they doing with their next house?   Jonathan Davis (09:40):  well, yeah. The people who wants to sell, and   Bill Fairman (09:42): If they're, if they're moving up or they're having to change jobs and or they don't have any choice if they're changing jobs and they have to move. Yeah.   Jonathan Davis (09:50): Well, the, the, the sentiment of selling, the percentage of respondents who said it was a good time to sell increased from 51 to 54%. So 1% people think it's or, you know, there's, you know, better time to buy and 3% think it's a better time to sell. So maybe it's starting to move in that in a good direction.   Bill Fairman (10:12): I think it's, prices come down a little bit, that'll change, but it, it's really all gonna be reflected in how much can I forward per month. So it really has a lot to do with interest rates. Interest rates come down   Jonathan Davis (10:25): $900 more per month is what it costs   Bill Fairman (10:28): You. Yeah. So we, we've already proven it doesn't matter how much the house cost, it's how much can I forward a month? Mm-hmm. .   Jonathan Davis (10:34): Yeah.   Wendy Sweet (10:34): What's, what's the cash flow too?   Jonathan Davis (10:36): Well, on the assessment side. Yeah. What's, you know, what's, you know, what's the house produce. Yeah. So, I mean, and that's, you know, we, we, we beat it into the ground all the time, but it's, you know, it's not what you sell the house for. It's what you buy it for. So yeah, there's still good deals out there. You just have to find the right motivated buyers and or Right. Motivated sellers rather. And, you know, apparently there's being a few more of those popping up.   Wendy Sweet (11:01): Well, as a matter of fact, I, I've had deals literally dropping in my lap just this past week. and it's just a amazing how it really just flipped and flipped so quickly. That's amazing and exciting. And I mean, and they're deals, they're,   Jonathan Davis (11:20): You're getting these from wholesalers who have had, you know, someone fail to close or, or how are, how are you sourcing these, or how are they dropping in your lap?   Wendy Sweet (11:27): Well, you know, when you're in the lending business, you kind of hear about deals first. And when people are backing off of them and don't want to buy them, you know, they're wholesalers are just reaching out to anybody else just so they don't lose the contract. Yeah. so, so, you know, a lot of that tends to, tends to occur pretty quickly. but just people, I know, people I've been talking to saying, Hey, if you wanna sell it, I'm interested. And it, it's amazing how that's, how, how it's really changed. Like, I have three of 'em sitting here for, for this week that that I'm pretty excited about. And Don Harris says he's a hundred percent ready either way. I love that. .   Bill Fairman (12:13): So we, Don's always that way.   Wendy Sweet (12:15): Yes, he is. And he is al he's always ready to go and ready to perform. We love Don Harris.   Jonathan Davis (12:22): Oh, well.   Bill Fairman (12:23): So let's move on into our segment for this week. it's best time of the year when you wanna start setting up your goals. you know, we'll have our annual meeting in January mm-hmm. , but, and each year we, you know, we're setting up goals for the, for the upcoming year and, and you need to do that. Mm-hmm. , I know. It's, it really is a pain. People hate it. Well, most people hate it. There are people that love setting goals. I'm not one of 'em .   Wendy Sweet (12:55): I like it.   Jonathan Davis (12:57): I like it too.   Wendy Sweet (12:58): I like having a target.   Jonathan Davis (12:59): I mean, so, I mean, I'll, like last, last year when we set the goal of, we wanted to fund 50 million in, in loans, and we set that in, when did we set that? Jan? It was right around January. Mm-hmm.   Wendy Sweet (13:13): the beginning.   Jonathan Davis (13:14): And we're like, and yeah. Remember, do you remember that meeting? I   Wendy Sweet (13:17): Thought you were   Jonathan Davis (13:18): Nuts. You, you were like, you, you and everyone else were like, oh, this is crazy. We're not gonna hit,   Wendy Sweet (13:22): There's no way. Why are we setting it up so high?   Jonathan Davis (13:24): Because the, the, that year prior, we had just closed out at 33 million I think it was. That's right. 3 million. That's right. And they're like, we're, we're not, like, you're not gonna increase by 50%. Come on now. so, you know, it was like, you know, we'll, we'll set it. and then we're closing out this year right. At 80 million.   Wendy Sweet (13:42): Yeah. That doesn't suck.   Jonathan Davis (13:44): Yeah.   Bill Fairman (13:45): So we were sandbagging   Wendy Sweet (13:47): . Yeah. Jonathan, what were you doing, ? Well, the thing is, is, you know, and, and we should, you know, we're talking about this, but we should let people know we had an additional stream of income through a long-term product mm-hmm. that we didn't have the previous year. We were actually had just started a previous year, and that's really what we were thinking or what you were thinking when you came up with that 50, 50 million to be funded. So that did occur mm-hmm. and did make a big difference. But the over and above didn't come from that. It came from really a different portion or a different segment of an asset that we really got much more into. And that's the small commercial type loans that we were doing.   Jonathan Davis (14:34): So, you know, to, to break it down, we've, you know, we did 30, 33 million last year in total originations. And if we break it out for this year, of that 80 million, 45 million is our short term construction fix and flip, small balance commercial. It's not the, the long term loans that we added. So we almost hit 50 million with just what we do on the short term side. Right.   Wendy Sweet (15:05): Right.   Jonathan Davis (15:05): Phenomenal.   Bill Fairman (15:07): And if rates hadn't gone up in the middle of the year, we had really blown it out of the water.   Wendy Sweet (15:11): Yeah. That's,   Bill Fairman (15:12): That's it really slowed down that that revenue stream because everybody kind of paused on, you know, longer term stuff Yeah. Thinking it was gonna go down, or I don't know what they're thinking.   Jonathan Davis (15:24): . Yeah. Well   Wendy Sweet (15:25): That's, that's one of the things that a lot of, some of the other companies, other, other hard money lenders or private money lenders are running into that we're depending on those long-term D S C R products to grow. You know, they did really well this past year too. A good majority of them are now out of business because those programs have been pulled. So I mean, that's a great example of, you know, be careful what you're concentrating on. You have to have the multiple streams mm-hmm. of income to be able to, to, to turn that ship when it, when it needs to be turned. And, you know, I'm, I'm very interested in seeing what's gonna happen, especially in the first quarter coming up because it, it, from how it looks to me is we're just actually getting back onto the normal track of what it was two years prior, which is, you know, it's gonna slow down in the winter, the middle of February, light turns back on and things start to sell again. So I'm interested to see if that's the path that we're back on. It appears to be, but you know, our, our site is so short in front of us at this point that it's really a week to week. We don't know what's really gonna go on, but that's kind of what we're planning on. That's what we're hoping on and planning on.   Jonathan Davis (16:46): Yeah.   Bill Fairman (16:47): And just to make sure that we keep with some additional revenue streams. I run down to the stoplight in front of our office at lunch, and I clean people's windshields.   Wendy Sweet (16:57): got that big cup that says raising funds, , we'll work for Food .   Bill Fairman (17:05): We're, we're trying to grow that part of the business. .   Jonathan Davis (17:09): Yeah. I mean, but you know, part of, you know, our goal setting and part of our, just our overall goal is that we want to be as much as we can be in control of our destiny and in control of the returns to our investors. now, you know, Wendy alluded, you know, these people who are going out of business on these DSCR R loans and other, other brokering, they're dependent on somebody else to say yes or to, you know, here's the funding, here's your line of credit, what have you, you know, warehouse facility, whatever it is. when you, like, for us, when we run it through a a fund model, we are in control of those funds and how they're allocated out, which also allows us to control the returns back to our investors. So, you know, while these people are dropping on the D S C R programs and either other, other short term programs, we're still able to keep moving forward lending and while also getting outsized double digit returns to our investors.   Wendy Sweet (18:17): Right.   Jonathan Davis (18:18): So it, like, that's one of our goals and always has been. And that goal has, and I think a lot of people's eyes made us s kept us smaller than other people. Mm-hmm. . Mm-hmm.   Wendy Sweet (18:32): .   Jonathan Davis (18:33): But right now, I'd rather be smaller. I   Wendy Sweet (18:35): Smaller and solid . That's, that's the key. You know, the other thing too that I think will pertain to a lot of people that are listening is, you know, not only only are we pretty vanilla in our lending category, but but solid in that. But personally, our, our personal investments with the self-storage mm-hmm. and single family long-term rentals are, you know, we've been building that as well. you know, all of us individually, whether it's 30, 60, 90 days or long term or, or you know, Airbnb, whatever, whatever those models are, and we do all of those. it's, it's important too that we stay diverse in that market as well because you have to jump from what's hot to what's not   Jonathan Davis (19:33): Mm-hmm. . Well, and you have to, you have to be able to move, but all within the scope of what you're, of, of your expertise and your lending, you don't want to just be jumping from place to place. you know what, what Wendy's saying is, you know, you wanna move, you have, you have a couple different buckets that you have, and sometimes you fill one bucket, you know, halfway, and sometimes you fill the other one up all the way, and you just move between those, depending on what the market's doing, they're both your inside your wheelhouse. You're not just trying to go find a different bucket that you've never done before.   Wendy Sweet (20:05): That's right. Right. You know, I, I'd like Scott's question over here, you setting weekly, monthly, annual multi-year goals? And the answer to that is yes. Absolutely. we, we meet quarterly to change to, to evaluate and change any goals or adjust goals that we may have. We also meet monthly, you know, for, for our financial and our dashboard to see what's going on there. And absolutely, we go multi-year. We have a three year target. We have a one year target, we have a three year target, we have a five-year target. And, but that target's always moving because we have to adjust with what's going on in the market.   Jonathan Davis (20:47): Yeah. And, oh, bill,   Bill Fairman (20:49): I was was gonna say,   Jonathan Davis (20:50): I can fill him, just,   Wendy Sweet (20:52): It's amazing. He hasn't talked ,   Bill Fairman (20:54): , I'm learning. So you have to get, you can get very granular with this too. So, you know, take that year end goal and then break it down into 12 months, what you have to do to achieve that, that goal. And it's easy to go backwards once, once you set the goal, then figure out in smaller segments what you have to do to achieve that number. Mm-hmm. , I, I want to talk about the, the book the Gap and the gain. And I'm sorry, I didn't have the author pulled up right in front, but while I'm doing this the, the basics of the book, the gap in the gain is that not enough people celebrate the smaller achievements. They'll set a goal, and I'll give you an example. Let's say your goal is to walk to the horizon. Well, we know you can continue to walk to the horizon and you're never gonna get there, but when you turn around and look behind you, you've seen the progress you've made so far, and you need to celebrate those wins. thank you Scott . So Dan Sullivan and Benjamin Hardy,   Jonathan Davis (22:09): I would, you know,   Bill Fairman (22:10): I, funny enough, Benjamin Hardy was the, the keynote speaker at CG this past couple of weeks ago.   Jonathan Davis (22:18): I was just gonna say my commentary on, you know, setting the goal for the horizon and looking back to, to appreciate all, you know, that's actually, you know, setting an unattainable goal and looking back and seeing how you can never get there. Like you just saw all your failures when you look back,   Bill Fairman (22:32): , , no, because you have progressed quite a bit. It, it just hadn't gotten to you that particular goal that you have. But this is a, a great short read, and I recommend it highly if you are into audible, like I am. It's a couple of trips to working back .   Wendy Sweet (22:52): Yeah. Well, you know what I like too, Jonathan, that you brought up failures. I hate to use that word failure. because really it should be something that's a learning lesson. And so many people think that failures are, are bad.   Jonathan Davis (23:12): No, they're   Wendy Sweet (23:12): Great. They're a great opportunity to learn and to move forward and to be more cautious. you know, we had, we had issues from December s 2017 through the entire year of 2018, having to take back a bunch of houses and all the disposition. And Don Harris was a big help in, in making that happen for us in on the good side when we were recovered . But it, it's it's been the best lesson that I walk with every day, you know? Really, really I, I refer to it every day in my brain, you know, how, what, what did I do then that we need to change now? Mm-hmm. and, and so, so when you have these meetings, going back and looking at, at your, at your wins is important, but looking at your losses and scars are really important because that's what will make you so much better. It's like shooting for the stars and coming up short, but you hit the moon. I love that.   Bill Fairman (24:17): Good job, Ron. that's why we call it failing forward. Yeah.   Wendy Sweet (24:21): Yeah.   Jonathan Davis (24:22): I mean, every, everything is what you make of it. I mean, you know, every experience that happens, you get to choose how that shapes you. It can be your destruction or it can be a per, like propulsion forward. Just what do you want to, what do you want? How hungry are you? how, how important is that goal? you know, and one of the things that, that we do and I think a lot, I hope a lot of people do, if you don't start, is when you set those, like, know what you're like, we'll talk about lending or, or real estate investing. Know what you want to invest in and don't deviate from that. Right. Right. You know, like, like put it, you know, put it on your whiteboard, whatever you need to do to help it stay in front of you. Like keep it there because you don't want to deviate from that. Because as you start to deviate, not only do you, you lose your goal inside of your goal and achieving it, you also find yourself in riskier unknown waters. So stay, write your goal down. Write what the asset you're after or, or the mechanics of that asset and how you want to achieve it, and then keep it in front of you every day.   Bill Fairman (25:30): , there was a, a panelist today that was asked the question in, in real estate investing, there's so many things you can get into and clogs your brain. And you guys stay on track. And the one guy said two letters, N and o learn how to use 'em together. Yep. .   Wendy Sweet (25:52): That's exactly right.   Bill Fairman (25:54): So said. it's important to set goals. If you don't set goals, guess what? You'll never achieve any of them. The map   Jonathan Davis (26:04): . That's right.   Bill Fairman (26:05): You do need a rudder. we highly recommend the EOS system for those who are in business, even if you're just one person or a three person shop. Mm-hmm. , it helps you set up matrix that you can follow KPIs. So you know, when you've you know what data to look at and see how you're achieving your goals.   Jonathan Davis (26:29): What's KPI mean?   Bill Fairman (26:32):  I forget   Jonathan Davis (26:33): Key performance. Thank you. Indicator.   Bill Fairman (26:35): I   Wendy Sweet (26:36): Knew it was, and then, and then that book to learn about EOS is by Geno Wickman, and it's called Traction. Yep.   Jonathan Davis (26:43): Yeah. Traction. Very good stuff. Yeah. I mean we would love to know kind of your all's goals if you wanna set 'em in the comments or, or, or shoot 'em to us directly. We would love to know that because we would love to be a part if there's a way, you know, your goals helping us achieve our goals.   Bill Fairman (27:01): Mm-hmm. . And by the way, with that yep, there   (27:05): It is. We can help hold you accountable if you, if you send them out to us and we put 'em out here in the ether then you have to keep up with them, right.   Wendy Sweet (27:14): Or you sign up with the Wednesdays with Wendy. We can talk about your goals and Yep. And you   Jonathan Davis (27:21): Get together all the time, don't   Wendy Sweet (27:23): You? All the time. Yeah.   Bill Fairman (27:24): Yeah. So we talk about be Hags, which is your big, hairy, audacious goal.   Wendy Sweet (27:30): That's right.   Bill Fairman (27:31): Let's hear what your be ha is and we'll, we'll make sure to help hold you accountable to 'em. All right.   Wendy Sweet (27:38): Awesome.   Bill Fairman (27:39): You good?   Wendy Sweet (27:40): I'm good. Are you good?   Bill Fairman (27:42): I'm, I'm, I'm really good.   Wendy Sweet (27:44): . You're better than me. You're in 80 degree weather. .   Bill Fairman (27:49): Yeah. I'm not coughing as much, so that helps.   Wendy Sweet (27:51): That's good.   Bill Fairman (27:52): All right, now I said   Jonathan Davis (27:55): That, that Uhhuh.   Bill Fairman (27:58): All right. folks, thank you so much. hope this was helpful. we are what are we,   Jonathan Davis (28:07): Carolina   Bill Fairman (28:07): Capital Manager. Yeah, I know. I'm trying to do the, damn, what do you call it? No, I'm not doing that one. Thank you so much for joining us on the Real Estate Investor, show Hard Money for real estate Investors, . Now we are Carolina Capital Management private lenders in the Southeast for real estate professionals. If you would like us to take a look at one of your projects, go to carolina hard money.com. Sorry, I didn't mean to mess you up, Scott Carolina hard money.com. Click on the Apply now tab. If you're a passive investor looking for passive returns, click on the accredited investor tab. Don't forget to like, share, subscribe, hit the bell. See you guys next week.   Wendy Sweet (28:47): Thanks.  

Your 2022 In Review! Visit our website: https://www.CarolinaHardMoney.com Join Bill Fairman, Wendy Sweet, and Jonathan Davis, LIVE! every Thursday at 12 pm ET for the Real Estate Investor Show - Hard Money For Real Estate Investors! As 2022 is nearing its end, the Carolina Capital Management team takes a look back at the relevant real estate events that occurred this year. What have you learned and accomplished this year? What are the preparations you need to look out for in order to survive the ever-unpredictable real estate market? Be up to date, be informed. Be educated. Learn the numbers and data. Discover the best niches of the real estate business where you should invest.

Dr Wendy Sweet is the founder of “My Menopause Transformation,” where she works with women globally to support them through the menopause transition. She is a former registered nurse and has a Ph.D. in nutrition and healthy aging and has developed a range of personalised programmes for women going through perimenopause and menopause – acknowledging that every woman is different and will approach these years with different health states and different levels of knowledge about what their bodies are going through and the changes they can make to make life easier. Zestt Wellness: https://zesttwellness.com Zest Wellness USA: https://zesttwellnessusa.com  

Join Bill Fairman, Wendy Sweet, and Jonathan Davis LIVE! every Thursday at 12:00 PM ET for the Real Estate Investor Show - Hard Money For Real Estate Investors! Brett Sims, the Head of Growth of Renovo Financial, joins the Carolina Capital Management team to talk about the current market updates, especially the DSCR loans. Renovo Financial: Their story begins in 2011, at the Starbucks on Sheffield and Armitage in Chicago's Lincoln Park neighborhood. It's here where Co-Founders Kevin Werner and Daniel Rosen met to discuss founding a new real estate investment company. But this company would be different. They wouldn't simply throw money at clients and expect them to figure out the rest. No, they would take the time to assist their clients through the entire process, never sacrificing service to make a quick buck. With the help of Granite Creek Capital Partners, the initial equity firm that back Kevin and Daniel, they were ready to start growing their new company, Renovo Financial. With support from Granite Creek and caffeine in their system, Kevin and Daniel began slowly and carefully lending in Chicago and building their team of rockstar real estate lenders. For the first five or six years, they focused solely on the city of Chicago. Today, however, Renovo is rapidly expanding across the country with local lenders in more than 10 markets stretching from San Diego to Boston.

Today's Market and the Non-QM Loan Join the Carolina Capital Management team LIVE every Thursday at 12 pm ET for the Real Estate Investor Show - Hard Money For Real Estate Investors! This week, Bill Fairman, Wendy Sweet, and Jonathan Davis are joined by Bryan Maddex of AmeriFirst Home Mortgage to discuss Non-Qualified Mortgage Loans! With over 20 years in the financial industry, Bryan used his experience and insight to help get financing and loan products for his clients, many of whom are first-time homebuyers and real estate investors. One of his top priorities is providing consistent and frequent communication. His team ensures that the buyer knows exactly where they are in the mortgage process, as well as their agent and listing agent. Amerifirst works with many clients who have not been successful in getting loan approvals from other lenders. They take the time to educate their clients on overcoming prior obstacles to achieve success as they navigate the steps to homeownership, including the pre-approval process. It is not unusual for Bryan to work with his customers for a year or more to help them get their credit mortgage ready, and for him, it is especially gratifying to share in his client's joy on closing day. Amerifirst offers a full line of flexible loan products including FHA, VA, USDA Rural Development, renovation, and conventional mortgages. They also offer a range of non-traditional products such as Investor Cash Flow Loans and Bank Statement Loans. Bryan is proud that his Amerifirst team includes his wife, father, and brother, and they feel truly blessed to be able to serve their clients as a family.

The complete and utter unknown of what’s going on in the market is crazy but we have to be ready for it. So today, we talk to Carolina Capital Management’s Wendy Sweet and Bill Fairman about surviving high uncertainty, volatility, fear over some kind of recession, and adjustments they’re making to operate in this space. [...]

00:00:01 Greetings, everyone. Welcome to the show. We are going to talk about capital raising and why it's important to your deals right after this.   Wendy Sweet 00:00:34 That's funny. That's like a so funny when you see people on the news doing a news set and they say something and they just wait for stuff to happen and they wait for stuff to happen, it's,   Bill Fairman 00:00:45 Well, just so you guys know, half of our, our crew is in another country, so it's occasionally there.   Wendy Sweet 00:00:52 Two different countries.   Bill Fairman 00:00:53 Yeah. There, there's occasionally a little bit of lag time when we talk. So that's, that's really it.   Wendy Sweet 00:01:00 So the whole show's coming from three different countries. That's true. Actually. That's pretty   Bill Fairman 00:01:03 Cool. And technology amazing. It anyway is, thank you so much for joining us on the Real Estate Investor Show Hard Money for Real Estate Investors. We are Carolina Capital Management and we are private lenders for real estate investors in the Southeast. If you'd like us to take a look at one of your projects, go to carolina hard money.com and click on the apply now tab. If you're a passive investor looking for passive returns, then click on the accredited investor tab. Don't forget the like, share, subscribe, Hit the bell. And don't forget about Wednesdays with her.   Wendy Sweet 00:01:38 Woohoo. Awesome.   Bill Fairman 00:01:46 Wendy devotes like 30 minutes per person, right?   Wendy Sweet 00:01:50 Yep.   Bill Fairman 00:01:51 Every Wednesday, but she's booked out a couple of months in advance, so get on her calendar   Wendy Sweet 00:01:57 That, And I actually got this idea from our guest that's coming on.   Bill Fairman 00:02:01 That's right. It was Tuesdays with Jeff,   Wendy Sweet 00:02:05 Whatever, whatever day anybody could get in with Jeff that, that's the big thing.   Bill Fairman 00:02:09 So, So anyway, the link is right there and also in our comment section, which is on the right side of your screen or underneath, depending on the platform you're viewing us from. Anything else to add?   Wendy Sweet 00:02:21 Well, I just want to say this, you know, we always talk about, you know, if you're interested in passive investing to go in and, and click on our pass our investor tab. But I, we've got some bragging rights. We've, we've had, we've had a phenomenal year. Our trailing 36 month is really good, but I, I mean our, our last quarter we were at 10.76   Bill Fairman 00:02:46 And this is not a solicitation for selling of any type of security. Do your due diligence, your mileage may vary, blah, blah, blah   Wendy Sweet 00:02:56 Ppm. Yes, it's very important to do that. But we need to, I mean we need to talk that, cuz it's been, it's been really great. It's been over, well over 10 for the   Bill Fairman 00:03:04 Year. The, the real estate business. While it sounds like it's really going downhill, if you listen to the news, it's still way outperforming the   Wendy Sweet 00:03:13 Stock market and it's adjusting to normal. Yeah. Which is really nice. We, we all need a little normal.   Bill Fairman 00:03:19 All right, real quick, some breaking news. Good Lord.   Wendy Sweet 00:03:42 It, So now the news isn't breaking anymore. It's, it's old already.   Bill Fairman 00:03:46 It's, it's old news now. So the Fed raised the rate another 75 basis points.   Wendy Sweet 00:03:55 That's right.   Bill Fairman 00:03:56 It's like there's, it's like 3% height now since they started, or at least close to it.   Wendy Sweet 00:04:02 I can't wait to hear Brian Maddox talk about it tomorrow on our sunrises meeting that we have every Friday morning at 7:30 AM   Bill Fairman 00:04:10 Yeah. And I'm sure we'll have a link to that over here in the comment section   Wendy Sweet 00:04:13 As well. Yeah, yeah. It's, we, we'll talk in depth about that. That's, that's good stuff.   Bill Fairman 00:04:17 Yeah. There it is right here.   Wendy Sweet 00:04:18 Yeah. Awesome.   Bill Fairman 00:04:19 Sweet. Thank you. Sha   Wendy Sweet 00:04:21 We, we also know that when the Feds hike the rates like that, that it really isn't your mortgage rates that are going up 0.75. A lot of people assume that it's completely correlated and it is attached a little bit, but really   Bill Fairman 00:04:40 Historically, the Fed is always chasing the market, right?   Wendy Sweet 00:04:43 That's right.   Bill Fairman 00:04:44 If you, if you, well, you have to know people that have the graphs, but they're always behind the curve. Yeah,   Wendy Sweet 00:04:51 Always. Yeah, for sure.   Bill Fairman 00:04:53 They're trying to destroy the housing market and they're working on it pretty well. Yeah,   Wendy Sweet 00:05:01 We're not gonna let 'em do that   Bill Fairman 00:05:02 Though. What   Wendy Sweet 00:05:04 Else? So I was reading this morning on a newsletter that I follow called Essa, S T E S S A. They always have some good information, but they were really talking about the rent and apartment complexes versus single family residential, which I thought was really, really interesting. You know, apartment apartments have been going up and up. The rents for apartments have been going up and up. The vacancies have been going lower and lower, which it's been very, very strong and it will continue to remain strong. However, what we're seeing is that one and two bedroom apartments are for the first time in a very long time going down in price, which I thought was really interesting. And you brought up, because people are getting roommates to, to   Bill Fairman 00:05:59 Probably having higher vacancy rates. So they're bringing their rates down a little bit. Yeah. Try and fill 'em, but it's because people can't afford to live on their own   Wendy Sweet 00:06:07 Anymore. Yeah, yeah. But the whole point of that article is really to talk about single family rentals and how strong the rent is for a single family home. And, you know, it's a great day to be in the buy and hold business. It's always a great day to be in the buy and hold or the build and hold business. It's, it's,   Bill Fairman 00:06:32 But it happens. If you can't afford mortgage payments, you have to rent. You   Wendy Sweet 00:06:36 Get cold.   Bill Fairman 00:06:37 Yeah. You have to rent. Yeah. So there you go. For sure. Or if you can't buy a house, you can rent one until the rates come down. That's right.   Wendy Sweet 00:06:44 Right. That's exactly right.   Bill Fairman 00:06:46 Or you can find one with a lease to own kinda deal as well.   Wendy Sweet 00:06:49 That's exactly right.   Bill Fairman 00:06:50 All right. So enough Gibber, Joe.   Wendy Sweet 00:06:52 Well, I wanna talk about, just a quick point too, for the sunrises for our meeting on sunrises. Tomorrow at seven 30 is on Zoom and that link is right there in in the chat box. We are going to be talking about subject to real in, in real estate, in the real estate business, which is basically taking over a property subject to the financing in place. So I'm really excited about us talking about that   Bill Fairman 00:07:20 One thing, that   Wendy Sweet 00:07:21 Particular type.   Bill Fairman 00:07:22 I have a quick question before we move on. I'm always concerned about how you get the person that has the mortgage to agree to take over that mortgage when they're ultimately responsible for it.   Wendy Sweet 00:07:35 Well, you need to turn tune in tomorrow and because that's the topic we're gonna talk about   Bill Fairman 00:07:41 For that would be my biggest fear is letting somebody else take over my mortgage, even though I'm the one that's on   Wendy Sweet 00:07:47 The Yeah. And there are ways around that. We're definitely gonna gonna talk about that tomorrow.   Bill Fairman 00:07:51 It's a great way to do it because you know, obviously you're not gonna take over a, a loan with a high rate.   Wendy Sweet 00:07:56 That's right. Not these days.   Bill Fairman 00:07:58 That's right. That's   Wendy Sweet 00:07:59 Right.   Bill Fairman 00:07:59 And they don't have any more non qualifying FHA loan assumptions out there anymore.   Wendy Sweet 00:08:04 Nope. Long gone. So folks, we are really, really excited about our guests today. You'll, you may have noticed if you've been watching for the past, what, four weeks? Three weeks? Four weeks. We have been talking about raising capital and raising capital from your financial friends, which could be your family and friends, people that you know, like, and trust. And we really wanted to end this theme with a dear, dear friend of ours, Jeff Johnson, who is the bomb. And he's really, really good at raising capital. That's how he runs his business. So folks,   Bill Fairman 00:08:48 And, and by the way, he's also known for packing more than one belt with him when he travels. So thank you for that.   Wendy Sweet 00:08:54 Evidently he pulled you out.   Bill Fairman 00:08:56 I forgot to pack my belt.   Wendy Sweet 00:08:59 So here's our friend Jeff Johnson. Jeff, welcome, welcome to the show my friend.   Jeff Johson 00:09:05 Hey guys, how are we doing?   Bill Fairman 00:09:07 Great. Wow. You look like you're like doing a reality show.   Jeff Johson 00:09:12 Well, this is a house that I just finished and is going on the market tomorrow. Is that right? Tomorrow.   Wendy Sweet 00:09:17 Wow.   Jeff Johson 00:09:18 Look tonight at that   Wendy Sweet 00:09:19 Beautiful, beautiful kitchen.   Bill Fairman 00:09:21 That's gorgeous.   Jeff Johson 00:09:22 Yep. So there you can get a little, a little vision, a little view of what's going down.   Wendy Sweet 00:09:27 That is gorgeous. Okay. Tell us a little bit about, Oh, look at that fireplace. Oh my goodness. Tell us about this house. Where is it? What's the price? What, what's the deal?   Jeff Johson 00:09:39 Okay, so this is one of four houses that I built up in Oakhurst, which is 28, 2 5 in Charlotte   Bill Fairman 00:09:46 Live there. My first house was in   Jeff Johson 00:09:48 Oakhurst. Yeah, yeah, yeah. So I bought a, I bought a lot and you guys saw Shannon, my realtor, actually Shannon helped me get this lot, but bought this lot from the guy. There was a single house on it. We ended up splitting it into four lots. So I built four houses down the, down the road here. And so this is the first one that's going on the market. So let's see, I paid 4 65 for the lot. So what is that? A little over a hundred thousand dollars per building lot. Yeah. Not too bad.   Wendy Sweet 01:10:21 Not in that area.   Jeff Johson 01:10:23 Yeah. So my build cost in these is right around three 50 I think. So this is a 2,700 square foot house, this one. And this one's going on to market tomorrow or tonight for 7 99 9. So not too bad.   Wendy Sweet 01:10:37 Wow. Wow. That is awesome. Okay, I'm so glad you're throwing those numbers out. So Jeff, how did you finance this? What, where'd you get the money? What'd you do to raise it? Tell, tell me about what that looks like.   Jeff Johson 01:10:51 Well this, this actually was a combination. So I actually did an partial owner finance. So the lot was 4 65 and the owner actually gave me a $300,000 owner carryback. So I only had to come to the table with 165 grand.   Wendy Sweet 01:11:09 Wow. Nice.   Jeff Johson 01:11:11 And then he, he subordinated his loan to a bank loan. So I actually was able to do all this construction with a bank loan. But that, you know, that's taken me years to get to that point and build my business to a point where I can go in and get a, you know, $1.5 million loan to build four houses. So.   Wendy Sweet 01:11:26 That's awesome. And what kind of a bank is it? Is it a local bank? A a credit union, a regional bank?   Jeff Johson 01:11:32 It's a, it's a local bank. Yeah, it's a local bank that I've had a relationship with for probably seven years now. They've financed several homes for me over the years. So we've got a, you know, ongoing relationship.   Wendy Sweet 01:11:45 That's awesome. That's awesome.   Bill Fairman 01:11:47 You know, you're, you're throwing those numbers out there and I told you my first home was in Oakhurst. I paid 23 5 for a 14 year square foot two story house on Commonwealth Avenue.   Jeff Johson 01:12:00 Don't, don't you wish you, I built one on Commonwealth too. Don't you wish you would've kept that?   Bill Fairman 01:12:04 Yeah. Oh my gosh, no doubt. Absolutely.   Wendy Sweet 01:12:07 He even had his motorcycle in the living room. I remember that. It   Bill Fairman 01:12:11 Was never in the living room. It was in the foyer.   Jeff Johson 01:12:13 Nice, nice.   Wendy Sweet 01:12:16 So are you nervous at all about being in that price range in these dark times that we're living in?   Jeff Johson 01:12:26 Well, sure. I mean, everybody's a little bit nervous. I mean, you know, I think part of the problem was, is we all got used to things selling in 35 minutes and now it's kind of back to normal the way it was before Covid. So, yeah, I mean this is, I started my business in oh nine, so I was used to, you know, two months, three months to get something under contract. So this is not something I haven't experienced before, but I think a lot of people who just got started are probably a little bit freaked out because it, you know, they didn't figure in holding onto their properties for three months or six months. They didn't figure that into their costs. Plus, you know, everything got so expensive there for a little while that, that everybody just assumed that they were gonna make their money on the back end. You know, I always say you make your money when you buy the property, just like I did with this property. I made my money when I bought this property. If I'd have paid a million dollars for this, I'd be super nervous.   Wendy Sweet 01:13:19 Yeah. Yeah. I actually had a call this morning from someone that we did a loan for. She's still in it eight months into it, you know, the contractor didn't really do a right. She had to let him go. So she's working with a new contractor, but unfortunately her, you know, our appraisal subject to appraisal when she bought it came in at 2 65, 8 months ago. Right. And her agent told her she could easily get a little over 300 for it. So I, you know, I, and, and, and so she's been moving forward in her head, putting her own money out instead. Yeah. Because we're only gonna fund from the numbers we run. And now she's sitting at a place where, you know, she'll be probably getting what the appraisal originally said it would be worth. And she's, she's not gonna make any money on this deal. I mean, that's the difference between somebody new and somebody that's experienced.   Jeff Johson 01:14:20 Right. Well I think, I think a lot of what you're seeing is people who, you know, way overpaid because they wanted, they just wanted to keep growing or they wanted to get more property. I actually really, I kind of stopped buying rehab property the last few years because I saw what was happening with the prices and I knew it couldn't last.   Wendy Sweet 01:14:39 Right.   Jeff Johson 01:14:40 So I sort of tapped out, kept doing new construction and cuz I can add the most value doing new construction. Sure. And there's less unknowns, you know, once I, once I get the foundation outta the ground, there's really not a whole lot of unknowns when it comes to cost.   Wendy Sweet 01:14:53 Right.   Jeff Johson 01:14:54 So, so   Wendy Sweet 01:14:55 Jeff, talk a little bit about really how you started raising funds and what kind of people you were approaching to lend you money. How, how did you get started and all that? Cause I, I think you are just so superb at having a good tool bag full of financing opportunities.   Jeff Johson 01:15:23 Well, it's a, I mean it's a, it's a long story but a short story. I mean, I I, I started, you know, rehabbing in oh nine and I was in a, I was actually in a men's group with our church and I used to drag my trailer to the men's group cuz I'd be, you know, that was my Fridays as the days I'd go do my real estate. And I was doing it all with, you know, hard money loans or whatever. And, and one of the guys in my small group said, Hey, what's with the trailer? What are you doing? And I started to explain to 'em and I had just taken a class on borrowing money from people's self-directed IRAs. And so this was a friend from, from my men's group. And so I used all the tools. I just had, I had just learned and said, Hey, you know, if you want to invest with me, you can lend me money from your 401K and I can pay you a return.   Jeff Johson 01:16:16 And I think that the stock market had tanked at that point. So he was very unhappy with his stock returns. So I ended up borrowing I think $50,000. We ended up changing his IRA over to his self-directed ira and I ended up borrowing, I think $50,000 from him to help with one of my projects. And then I returned his money and then he said, Well now I have a hundred. So I, I'm, I'll lend you a hundred pretty soon. He, he had basically liquidated his entire regular 401k with his jobs. He worked for Bank of America and, and had put it all in a self-directed RA and, and, and lent me every penny that he had in his retirement account. And he still does. So that was in 2009. So what is it now? 2022. So he is been lending to me for 13 years and I think we've tripled, I've tripled his money since he started as he started lending to me.   Wendy Sweet 01:17:08 That's awesome. Now is, is he, are you doing the same kind of deal with him that you did in the beginning or has your, have your ch terms changed   Jeff Johson 01:17:19 Any Nope, same exact same exact terms. We haven't changed anything. It's been the same interest rate since day one. I have not changed it one bit. It's, you know, it, in my mind I wanted to give my lenders a return that was good enough that they wouldn't go anywhere else. And that, you know, once we build that trust relationship that they know that, that they're gonna get a great return and they're gonna get their money back to me because what, I don't buy any crappy deals. And then, but I didn't want it to make it too much to where I couldn't actually deploy the capital. Right. You know, I think that's part of the problem is you get a lot of private lenders, they want these crazy interest rates and it's, right now it's almost impossible to deploy the capital, which is as, as expensive as it is to rehab properties and build. I mean, gosh, my build costs went from, for these houses I used to probably maybe $120 a square foot. I'm $175 a square foot.   Wendy Sweet 01:18:18 Wow. Wow.   Jeff Johson 01:18:20 And that's in two years. Wow. So, so that only took two years for that change to happen. So it's gonna get harder to deploy expensive capital in this market. So   Wendy Sweet 01:18:30 Now is, is he lending Yeah. You know, in a secured position or are you, is he just lending to your llc?   Jeff Johson 01:18:39 Okay, so he's, right now he's lending us about a million dollars total and he's probably got about half of that inec secured loans. And then the other half is in unsecured, you know, loans to the llc. But one of the things we don't do is just have that money floating around in the Ethereum. We actually have it assigned two properties. So it does have an as it does have assigned property that it is loaned on. Right. But we just don't have a deed to trust on it.   Wendy Sweet 01:19:10 Gotcha. So, Gotcha. So, so how has he helped you if, if at all, raise more capital?   Jeff Johson 01:19:20 Well, he was very stingy at first cuz he didn't want me to go borrow money from anybody else cuz he, you know, he wanted to keep his capital working. But I, I told him, I said, I won't go borrow any more money until I'm sure that I can keep your capital work in. That happened like year two. So I met another guy, bought a, another crazy story. I bought a inversion table for my back off of Craigslist and it was a trailer both times that got me, this got me this money, which is funny. So I had my trailer to go pick up the, the inversion table and the guy said, Hey, you know what's, so what do you do? You get a trailer? And I told him, you know, I i I flip houses. And he's like, Oh, I'm really interested in that. So I ended up sitting down with him and having lunch.   Jeff Johson 02:20:01 So what, what I did between my first and second lender is I actually put together what's called a credibility package where I took all of the deals that I had done and I listed them out what I paid for 'em, how much my rehab was, how much I sold them for, and then how much my investor got paid. My, my lender got paid and I think at that point I had maybe 12 or 13 properties that I had done. And so I was able to give them this, you know, 10 page credibility package and show 'em like, here's the listings, here's the price I paid, here's how much I made, here's how much my lender made. And that was, that made it so much easier once I had that credibility package to start having those conversations. So once I got that done and I had that second lender, I just started meeting with other people and I started, actually, I didn't really solicit, but you know, you, you can make posts on Facebook and you get people who are interested in what you're doing and then you're ha starting to have these conversations. And I started beating people for lunch and for breakfast and taking 'em to my properties and showing 'em what I was doing. And you know, it just unlocked all sorts of doors with money cuz you, I mean, it would blow your mind how many people have money sitting in an IRA or a 401K that's not doing anything.   Wendy Sweet 02:21:15 Right.   Jeff Johson 02:21:17 Lots of people, it's just sitting there, they don't know what to do with it. They're afraid to put it in the stock market, but they don't know how to invest it in real estate and they don't want to, they don't wanna actually own any real estate or flip real estate cuz they know that that is a, you know, not passive investing. So I just started having those conversations and then, and then of course, you know, I wrote that book a few years ago and now if somebody's interested I just send 'em a copy of the book and say, Here, read this and then let's talk when you're done reading it. So I don't even have to explain the process anymore. It's all in   Wendy Sweet 02:21:48 The book. That's awesome. What's the name of that book, Jeff?   Jeff Johson 02:21:51 It's called Retirement Returns With Real Estate. And I actually wrote it for other investors to be able to use. So I have people all the time that will send that copy of that book to a potential lender and say, Here, read this book and then let's have a conversation and it just saves you, you know, three or four lunches or breakfasts of Yeah. Explaining how it all works. And then the questions are just like, okay, what's, what's the project and how much do you need? That's what I want to get to before I even have a conversation with somebody. I want them to feel comfortable enough that I know what I'm doing. That they're just asking me, Okay, what's the project? Right. What are we talking about here?   Wendy Sweet 02:22:28 So, so here's what I think is so super cool of what you've been able to do. Number one you put together, and I love the name of it, your credibility package. Yep. You're, you're showing people what you do because you're, you're going after two different personalities. You've got the engineer person that wants details and numbers and that kind of thing. And then you've also got pictures and graphs and things for the other type personality that wants to see the summary and hear the stories. That's, that's perfect. Yep. The other thing that I love that you did is you put together a book. You're teaching them how they can become wealthy.   Jeff Johson 02:23:09 It's Exactly education I think is so important. I mean, and, and I think the other thing too is, you know, I ran a, I ran a, a subgroup for the local R for a long time for about six years. And I used to do education in that group for potential lenders. There was no no pitch. I wasn't trying to actually raise money, I just wanted to teach people about how to use private money. And so I ended up getting, you know, a lot of people that had private money come to that meeting and then ended up creating a relationship with them and borrowing their money. So it's really been sort of of organic the way it's all happened. But the funny thing is, once you push, start pushing that 600 pound boulder, once it starts rolling, it's hard to stop it because, you know, then you have people throwing money at you and you're like, Hey, I need to hold on. I need to get some more projects and some more things. That's right. So I can, you know, that's a good problem to have cuz you in, in real estate, you almost al you always have either a money problem or you have a house problem.   Wendy Sweet 02:24:06 Right.   Jeff Johson 02:24:07 So you either have too much money, not enough houses, or too many houses, not enough money. Yeah. I'd rather have the too much money, not enough houses problem. Yeah,   Wendy Sweet 02:24:15 Yeah. You and me both. You and me both.   Bill Fairman 02:24:17 So you go back to your original lender   Jeff Johson 02:24:20 Yeah.   Bill Fairman 02:24:21 Bank of America. And you   Jeff Johson 02:24:23 Well he worked, he worked for Bank of America. Yes. Right.   Bill Fairman 02:24:26 Yes. But you know, he has the opportunity to get with b of a wealth management so he could put all of his money. I mean, they're very well known for all their wealth management stuff. I wonder how much he would've made if he would've stuck with the traditional way of earning in his   Jeff Johson 02:24:43 Farm. Definitely not. The returns that he got from us. Not even close. Right?   Wendy Sweet 02:24:47 That's right.   Bill Fairman 02:24:48 Isn't it? Isn't it weird how that works? The people that actually are in the financial industry finally get that light going off, What, what am I doing here?   Wendy Sweet 02:24:59 Yeah. Yeah.   Jeff Johson 02:25:00 Well the other cool thing too is, you know, he's been a, he's been part of my growth. So every year when we, when we, you know, look at our profit numbers, I always send him, I send him an email or we go have lunch or breakfast or whatever and I say, you know, I could not have, I literally could not have done this without you trusting me with your money.   Bill Fairman 02:25:18 Sure. That that's awesome. No, he appreciates it.   Wendy Sweet 02:25:21 What a gift.   Jeff Johson 02:25:22 Yeah, no, absolutely. So he's been part of my journey. Every lender's been part of my journey. And then when we started Better Path Homes and really started to grow, I think we're, I think we have 70 some odd houses being built right now. We have, you know, dozens of lender partners that have come alongside of us and we've been able to help them build their wealth and they've watched us build our business. It's been a really wonderful partnership.   Wendy Sweet 02:25:43 That's awesome. And you lend your money too. You're, you're self   Jeff Johson 02:25:47 An IRA money? I, yes. I led to you   Wendy Sweet 02:25:51 Fact.   Jeff Johson 02:25:51 I put my money where my mouth is.   Wendy Sweet 02:25:53 I'm gonna get some more here shortly too. So,   Bill Fairman 02:25:57 So you know Chris Miles? Yeah. We had him on the show a little while back and he was telling us a story about his dad because, you know, Chris' is used to be a financial advisor, he's now the anti financianal advisor. And his dad wanted to retire. He'd had a 401k, all of his, you know, working adult life. And he asked Chris to take a look at it and asking kind of where he was. And Chris said to him, you know, you've done all the right things, you've done everything that is expected of you in a 401k. Your only problem is you have to die in five years.   Jeff Johson 02:26:36 Right. Cuz you can't afford to live any longer than that.   Wendy Sweet 02:26:38 Right. Yeah, that's for sure. I, I, I'm just, I'm telling you, Jeff, I've known you for such a long time. You're a dear friend, an awesome human being, and I'm, I'm just blessed to have you in my life, but, and I'm so excited to have, have watched you turn into this incredible successful real estate investor and builder in, in the, the time that I've known you. Just watching you grow has just been incredible and learning from you. And you know, I, I steal all these great ideas that you have and I appreciate that you allow me to do that. It's, it's just, it's been a pleasure and, and I can't wait to see what you have in the future. And, and we're so grateful that you came and Yeah, absolutely. And shared this information with us that I think it's important that people know that everybody can do this.   Jeff Johson 02:27:32 Yes.   Bill Fairman 02:27:33 How can people get ahold of your book anyway?   Jeff Johson 02:27:36 It's on Amazon. You can just look it up. It's Retirement Returns with Real Estate. Jeff Johnson's the author and I, I have it, I have it priced, you know, so cheap that you can just send 'em to your friends and family, whoever you want to talk to about Awesome, awesome. Investing with you. So that was the whole point was to be, you know, give others a tool, a very specific tool so it's very specific to our industry so that they could have start having those conversations with people.   Wendy Sweet 02:28:02 Right, right. Awesome.   Bill Fairman 02:28:04 Well, Valerie just made a comment saying that she can't wait to read your book. Thank   Wendy Sweet 02:28:08 You. So yeah. Oh look, there, there it is.   Bill Fairman 02:28:11 See, see how quick our staff is. Yeah.   Jeff Johson 02:28:13 Bam. Look at that. There you go.   Wendy Sweet 02:28:15 There you go.   Bill Fairman 02:28:17 That's   Wendy Sweet 02:28:18 Awesome.   Bill Fairman 02:28:18 So the first time I met Jeff, he was working on the house right next to me, which was kind of funny. I won't get into that story, but it was a good one. It has been, it's been quite the journey since then, hadn't it?   Jeff Johson 02:28:30 Yes, it has. It has. That was a, that was a funny story.   Bill Fairman 02:28:33 When we have an, when we have an additional hour, I'll,   Wendy Sweet 02:28:36 I'll tell.   Jeff Johson 02:28:37 Yeah. Okay. Deal.   Wendy Sweet 02:28:39 Jeff, thank you so much for coming on. We really, really appreciate your, your, your story and, and your, your desire to share with, with everybody. Thank you so much. Yeah,   Bill Fairman 02:28:50 We're   Jeff Johson 02:28:50 Gonna thank you guys.   Bill Fairman 02:28:50 Green room for just a second while we close this thing out so we can thank you properly, if you don't mind.   Jeff Johson 02:28:58 Okay. Thanks guys. Thanks   Bill Fairman 02:29:00 Jeff. Folks, thank you so much for joining us on the Real Estate Investor, Show Hard Money for real Estate Investors. We are Carolina Capital Management. We are private lenders in Southeast for real estate professionals. If you'd like us to take a look at one of your projects, go to carolina heart money.com, click on the apply now tab. And if you are a passive investor that doesn't wanna give money to Jeff, click on the accredited investor tab. Don't forget to like, share, subscribe, and hit the bell. Don't forget about Wednesdays with Wendy. See you guys next week. Bye.

Bill Fairman 00:00:02 Greetings. It's another week,   Wendy Sweet 00:00:05 Ola.   Bill Fairman 00:00:06 Lovely time in the, in the city. The big, big city of Rock Hill. South's, right? Carolina, Excuse me.   Wendy Sweet 00:00:12 Poor guy.   Bill Fairman 00:00:14 Today we're going to talk about investing with family and friends, and we will get to it right after this. Hello win. Thank you for joining us for another episode of Real Estate Investors Show.   Wendy Sweet 00:00:45 We forgot the name again. That's what happens when you're over   Bill Fairman 00:00:48 Hard money for real estate investors, we are Carolina Capital Management. We are private lenders in the southeast for real estate professionals. If you have a project you would like us to look at, please go to carolina hard money.com and click on the Apply Now tab. If you are a passive investor looking for passive returns, go to the accredited investor tab. Don't forget the like, share, subscribe, Hit the bell. And don't forget about Wednesdays with Wendy. So every Wednesday, Wendy gives up 30 minutes of her time to folks that would like to have a real estate conversation. The link to her calendar is over in the chat, which is to the right or underneath your screen, depending on the platform you're viewing us from. She's usually booked up a couple of months in advance, so get on now.   Wendy Sweet 00:01:50 Sometimes I just come into the office. Yeah, well that's what happened yesterday. It was awesome.   Bill Fairman 00:01:56 So apparently since I don't allow people to talk here much, Wendy has to go out of town to do most of her talking. So we have a few events coming up right after this.   Wendy Sweet 00:02:15 Boy, that was quick. Yeah, it's short, Short and sweet.   Bill Fairman 00:02:17 So where, where is it? Where are you going? What are   Wendy Sweet 00:02:20 You doing? Where's Waldo or where's Wendy? That should be it. Right? So the, I think the first one is actually this Saturday Best Her love that name. It's a great, it really, really is her, how you spell her. That's right. And it's in no confidence in spelling that one on, on the tv. It's, it's gonna be this, they're, they're actually having the event this Friday and Saturday, which is what's, what's the weekend this 29th and 30th? Yeah.   Bill Fairman 00:02:51 Yeah. It'd be this weekend   Wendy Sweet 00:02:52 Or maybe it's the following weekend. 29th and 30th is this   Bill Fairman 00:02:56 Weekend. Halloween is on Monday, correct.   Wendy Sweet 00:02:57 Oh gosh. You know what? I forget the days. I, it is the following weekend.   Jonathan Davis 00:03:00 We've really prepared for these shows.   Wendy Sweet 00:03:02 I have to look at my calendar. I'm sorry. But anyway, it's, it's gonna be really good. It's, it's, it's, it's for invest her, it's for the chicks, but the guys can show up too, cuz you'll be able to learn great stuff. And that's gonna be in Winston Salem.   Bill Fairman 00:03:16 You pointing at me personally?   Wendy Sweet 00:03:18 Yeah. And then the next one is   Bill Fairman 00:03:26 Quest Con.   Wendy Sweet 00:03:27 Yeah, Quest Con. So we love Quest Iron   Bill Fairman 00:03:30 And this is about the future. So you have to have your crystal ball.   Wendy Sweet 00:03:33 That's right. And here's an opportunity for you to save $15 on the event. It is online. They call it a live event because it's gonna be on Zoom Live, but you will be able to get a discounted ticket to get on there. It's, it's gonna be great if you attended the Quest event that just occurred, you know, what was it? A couple, maybe a month ago? Yeah, it was fantastic. Great group of people. Almost a thousand people were there. Yeah, the speaking was incredible and it's gonna be similar to that but online. So I'm really looking forward to it. I don't think they've done one similar to this one. I   Bill Fairman 00:04:13 Still want it to be all about me.   Wendy Sweet 00:04:14 Yeah. But I'll be speaking on a panel called Be the Bank. Ah, thanks. So that'll be really good.   Bill Fairman 00:04:21 And,   Wendy Sweet 00:04:23 And   Bill Fairman 00:04:23 Do we have any other,   Wendy Sweet 00:04:29 Oh yeah, I forgot about that one too. Yeah,   Jonathan Davis 00:04:31 No, State Korea Millionaire.   Wendy Sweet 00:04:33 The Upstate Korea is, that's upstate, that's the Greenville Spartanburg Real Estate Investor Association meeting. And they do this millionaire panel, but they invited me to be on it anyway. And it's really just talking about how you got started, you know, what's the worst thing that ever happened and, you know, how'd you get out of it. So it's, it's good stories about scars, which I always think is really excellent. Yeah. And then there might be another one. Yeah. Is there another?   Jonathan Davis 00:05:06 Nope, don't think so.   Wendy Sweet 00:05:08 Nothing that we have online. It's back to your show. I do have a couple more, but we, we'll talk about those later. I, I don't remember the exact,   Bill Fairman 00:05:16 You didn't remember the ones we had listed. I   Wendy Sweet 00:05:18 Know, I know. Oh, I'm speaking at the Raleigh Real Estate Investor Association tria in January. And I'm, I'm really excited about that too. I think that's the 23rd of January. All   Bill Fairman 00:05:28 Right, sweet. So there's a lot going on in the fall and almost early winter.   Wendy Sweet 00:05:34 Well, now's the time to learn, get networking, make sure you understand what's going on. Cuz it changes week to week.   Jonathan Davis 00:05:41 I wanna, yeah, I wanna rescue a word that I think fell off a little bit after a couple years ago in these unprecedented times. It's really good to plug yourself into local areas and, and masterminds and, and people who are in real estate. Yeah,   Bill Fairman 00:05:56 I was kind of, of hoping we had gotten rid of that for a while, but it is coming back. Okay. Little bit of breaking. Okay. This was a nice little headline on, on Fox Business and the headline was that prices, home prices were gonna drop 20% the next year. And this was Alan Shepherdson, which is a Ian. Oh, she, Oh, Alan, yeah, Ian. She, I was confused with the last name.   Jonathan Davis 00:06:41 No worries. You want me to read it   Bill Fairman 00:06:43 For you? No, Chief economist of Pantheon Microeconomics said in an analyst note published last week that really for the first time since 2001, because interest rates have gone up to 7%, he anticipates that home prices will plunge 15 to 20% next year. So, and I thought about that and first I was a little ill because I thought that was kind of dramatic, but   Jonathan Davis 00:07:12 Yeah, well, I mean, get quite clicks, doesn't it?   Bill Fairman 00:07:15 No, that's true. And this was actually on the Fox Business channel too, so it was just taken from one of their segments. But I did a little research, and I'm sure Don can attest to this as well, our upcoming guest, by the way, who we haven't mentioned yet. So I've spoiled the surprise You just did. I went and I looked at my home at the peak of 2018. Yeah, 2018, the highest point at 2018. And then I went all the way to what it's valued now, and I reduced that value by 20%.   Jonathan Davis 00:07:55 It's still higher than   Bill Fairman 00:07:56 20 and it was still 40% higher than it was in 2018.   Jonathan Davis 00:08:00 Yeah, that's, that's, that's, yeah, that's not a   Bill Fairman 00:08:03 Bad fault. And if I take the five years now, let's say we lose 20%, and I take the five years where it's still up 40%, that's an 8% year appreciation for the last five years, which is   Jonathan Davis 00:08:16 Still average, The average   Bill Fairman 00:08:16 Appreciation since the fifties has been three and a half.   Jonathan Davis 00:08:19 It's almost three   Bill Fairman 00:08:20 Times ago. So it's okay to look, listen, there are some people that are gonna feel pain from a 20% reduction, like the person who just bought the house last week   Jonathan Davis 00:08:29 And needs to sell. Yeah,   Bill Fairman 00:08:30 Right. That said,   Jonathan Davis 00:08:33 I'm not sure I subscribed to that, but   Bill Fairman 00:08:35 We need to, we need to have a correction because what we had was unsustainable. And even if it does drop 20%, we're still 40% ahead in most, And   Jonathan Davis 00:08:44 Of course it has to do with the market. There's yeah, there's too many variables. I mean,   Bill Fairman 00:08:47 Like, I'm just saying it's not as bad. Like   Jonathan Davis 00:08:50 What we're seeing right now is like the, the lack of inventory is increasing prices, but the rates are, he like, it's, it's like a tug of war right now and they're still appreciating. Yeah, I mean, I think we're between eight and 9% on appreciation still. It, I mean, unless inventory increases or rates, you know, jump to 14%, I mean, yeah, I think you're gonna have to have something a little more extreme than what we're experiencing right now.   Wendy Sweet 00:09:18 And that's year over year through the end of September, October. Once we get those numbers out, I think we're gonna see a little difference. But not much. Not a   Jonathan Davis 00:09:26 Whole lot. And Brian Max, even if the market does drop, you don't lose money unless you settle. There   Wendy Sweet 00:09:30 You go, buddy.   Bill Fairman 00:09:33 Excuse me. Or unless you're trying to get a big cash out refi and now you're not getting as much money as you thought. That's right. Anyway,   Wendy Sweet 00:09:40 It's getting gone in here. I don't wanna miss out on him. Yeah, I only got   Bill Fairman 00:09:43 15 minutes. Okay. So introduce him.   Wendy Sweet 00:09:46 I I would love that. So folks, not only is this guy just incredible in his industry, he's a real estate agent. A real estate investor. He   Jonathan Davis 00:09:57 Got me out of a problem,   Wendy Sweet 00:09:58 A lender. He's a lender as well. He is just a stellar standup human being. And a dear, dear friend, and I just wanna welcome Don Harris to the show.   Bill Fairman 01:10:10 Welcome, Don.   Don Harris 01:10:17 Hi guys. Good to join you.   Bill Fairman 01:10:20 Yeah, you had, you had your own intro video.   Jonathan Davis 01:10:24 Hey, you're, you're lucky most people don't get on the show until at least 20 minutes in, so   Wendy Sweet 01:10:28 That's right. I had to get Billy to pause.   Don Harris 01:10:31 Yeah. Yeah. Well the good thing about that, it doesn't leave much time for me to stumble on myself, so,   Jonathan Davis 01:10:37 Oh, don't worry. You know, it's, it's a change of pace you stumble on yourself as opposed to Bill doing it.   Don Harris 01:10:44 So,   Bill Fairman 01:10:45 So Don, I our, our theme has been this month a couple of things, but we're kind of focusing in on investing with family and friends. I I understand that you're doing investing with your kids, your wife, other, other friends and, and you're, you're you basically helping them with their ira investing through real estate. Can you give us an idea of what it is you're doing with that?   Don Harris 01:11:12 Yeah, I'll try to give the Readers Digest version of that. But, but that, that is what we're doing. I'm a real estate agent by day and then I'm an investor by night is typically how I say that. And an investor, I strictly loan money as a private lender. Now sometimes we do that in conjunction with like your company and we partner on a note with you, but most of the time it's family and friends. We have a b a lending opportunity. And so my wife and I, we have six different self-directed IRA accounts and we cobble those accounts together. And in the last two years, my, I've introduced my daughter to this lending as investment in a self-directed ira. And many times she will be involved in our lending as well.   Wendy Sweet 01:12:23 Awesome. Now, I've been blessed to be one of your borrowers for my personal investments as well involving your, your wife and your daughter. And what I really, and, and I've been bragging on you to so many other people is what I really love about you is that you don't let your money sit idle in between deals. You have the next one queued up when you know you're about to get paid off on, on on the one you're already in. And h how, how are you keeping up with that? What does that look like for you?   Don Harris 01:13:03 That's a great question. It's the same story that Sue was saying last week, that idle money is not working money. And the good thing about investing is lending is that your money's working for you 24 hours a day while I'm sleeping. It's still earning interest. And so I don't like for, I don't like lazy money that's not working. So we are, you know, I network a lot of the same events that you all do and talking to investors who are building new homes or flipping homes or a buy and sell opportunity that you're helping another family with. And so I've always got my feet on the street listening to opportunities and then qualifying the people that I may potentially invest with. And then when they have a transaction, typically I'm being pitched transactions on a pretty regular basis. So if, if the same that I've heard you say, you need to have a kind, a handful of lenders that you work with, especially if you're dealing with private lenders.   Don Harris 01:14:19 And then you can use capital, Carolina Capital Management as well to where you've, you're always have access to capital if you're the borrower. If you're the investor. Because if you come to me with a transaction opportunity, I may be a hundred percent loaned out at the, at this particular time you said I try to be, but I also anticipate when a note's going to be paid off. And that's when I start having more conversations with people who are about to close on a deal. And so we just try to time it close to when money's in the self-directed IRA and when money needs meets opportunity.   Wendy Sweet 01:15:03 So, you know, there are so many people that wanna do what you're doing, but they have a great fear of how do I really qualify not only the deal, but the person that I'm lending to. What are some of the things that make you say no,   Don Harris 01:15:22 No skin in the game. And I would say no experience, but you can overcome ex lack of experience with skin in the game. So if someone's willing to risk a whole lot more than what they're asking me to do than, and the numbers, the metrics of the transaction work, then we can consider that transaction. But it's mostly the character of the folks that you're doing business with.   Wendy Sweet 01:15:58 Awesome. You know, that's something that's still important to us with the size of the fund that we're dealing with, the number of borrowers that we're dealing with. Character is still number one for us as well.   Don Harris 01:16:12 It's always character number one. And then, then you look at the transaction and you know, it turns out to be repetitive people, right? The good people borrow money, do a transaction, make a lot of money, pay a little bit of interest, and then do it again. And so that, that, that's the majority of our transactions. It's, it's on rents and repeat. And then so have you go ahead here. Here's something else though. When if I don't personally generate a transaction or an opportunity, then I've gone to Carolina Capital Management and asked if you guys have any notes that you would sell, you know, the whole note or part of a note any times I've invested in notes with you guys and that takes capital that is sitting on the shelf and puts it to work, you know, instantly. And that's, that's where somebody who wants to start, that's a great place for somebody without any experience who wants to lend, is to take a piece of a note that you guys may have.   Wendy Sweet 01:17:28 Awesome. Thank you for mentioning that. We we love doing that. That's, Jonathan works on that hard.   Jonathan Davis 01:17:34 Yeah. And you know, just pointing out one thing, it's, you, you, you mentioned it idle money and like when you combine notes or have deals like you can hold out and try to get that perfect situation where you think you're gonna get 12, 14% or you can put your money to work. Now if you wait three months to find that, that situation, you might find it that's three months of idle money that you weren't making anything. So your 14% isn't 14. That's right. You know, so it, it's getting it working and, and you know, sometimes work, I mean, not sometimes all the time working money is better than not working money. So we completely agree with you on that.   Don Harris 01:18:15 And if I can, and what a new investor who wants to, who's just opened a, a self-directed ira, they don't have the experience in lending. They don't know how to qualify a deal yet. They don't know how to qualify a buyer yet. They don't know how to do the paperwork yet. They don't know how to collect the money. They don't know how to even fund the transaction. And so you guys are a good entry ramp into someone who wants to get into that space.   Wendy Sweet 01:18:46 Awesome. I have one more question for you and then I'll let other people talk. I am really curious about how you handle any loans that you've done on your own. Like that people are afraid. What happens if I have to take it back? What happens if I lose money? Has that happened to you and how did you handle it?   Don Harris 01:19:06 You're, you're starting to sound like my wife now   Wendy Sweet 01:19:12 Donna and I are tied.   Don Harris 01:19:14 Yeah, yeah. You, you know Donna real, real well actually we don't do a transaction loan unless we do talk about it. And you know, that's always the question. Well what if they don't pay a properly underwritten loan if it doesn't pay and you end up getting the property back either through, through them de it back to you or through a foreclosure action, you should come out whole or okay. And yes, I've had, I've had multiple transactions that have gone backwards over the years and some of those we've made money on, some we've broke even and some we've lost on. And with all types of investing, you cannot be willing to make the gain if you're not willing to take some of the loss. And you just have to be right. Most of the time you're not gonna be right all the time and you mitigate your risk by not putting all of your eggs in one basket. You spread the risk along as many transactions as you can and you know, your underwriting is probably along the same lines as mine. We're looking to be into a, an investment at no more than 65 or 70% of its after repair value. So if you do get a property back then you still should be in, in the property back of what its actual value is.   Wendy Sweet 02:20:49 Hmm. Now when you say you've lost money in some deals, can you give us kind of a round percentage of what that investment might have been that you lost? I mean, you, you lose it in the stock market. It's bye bye forever. You lose it on real estate. What, what is a common percentage on something that you may have lost funds on?   Don Harris 02:21:14 The most we lost on one was probably 40% and it was a, we just got duped by a repeat person, however. Wow. But we got duped by this person and yet, you know, you learn from it and you moved on from there. Another one early in my lending experience very early on, one of the very first people that we loaned money to, we, we ended up getting the property back. But the, the real problem with the transaction was our paperwork was bad. We got, we got a bad note from our attorney that un closed the, the transaction Wow. And actually collected on their insurance malpractice insurance for part of the shortage. And so we, that's the one we broke even on. So from then I hired John Hier to write a note for me for what we were attempting to accomplish. And at that point in time I was doing equity participation loans. And I remember asking John about that at a conference 10 or 12 years ago and he said, That is an intriguing idea. Send me what you're trying to do. He investigated it, did the research, wrote the note, and then sent me the bill for writing that note. And then since then, you know, on his trails around the country, sold that idea and sold that note hundreds of times.   Jonathan Davis 02:22:58 You didn't make any money off that, those transactions though, did you? I did no   Don Harris 02:23:02 Commissions the residual check, but I did well enough on the notes that we participated in over the years we've built houses with builders around Charlotte, you know, with equity participation notes. That's and just shared in the equity win lose or draw. Right. So if you are willing to make it, you've gotta be willing to lose it. That's right. And so when you do equity participation, it's win lose or draw.   Wendy Sweet 02:23:28 Well said. Well   Jonathan Davis 02:23:29 Said. Well it seems a shame to have him on here, not ask him what he's seeing in the local market. Yeah.   Wendy Sweet 02:23:36 Cause you are now in tune.   Jonathan Davis 02:23:38 So kind kind of give us a, you know, give us your crystal ball, your current Yeah. What are you seeing out there, and then your crystal   Don Harris 02:23:44 Ball. Yeah. Yeah. As a real estate agent, I was kind of cringing when Bill was going through that 20% drop in the market that he was explaining there. I don't, I don't see that happening in the Charlotte market. There may be some markets that are extremely overpriced and have bad politics and have bad economies as a result of that, that people are fleeing from and their prices could very well drop in the Charlotte area. Our job growth is still so strong and is projected to be so strong to where the rate of increase has drastically reduced. But I still think we will get that three to 6% year over year increase in value. We're just used to, you know, we got really spoiled with the 10 to 20 in the last couple years. That was a unique period of time. Sure. And so that's probably ne never going to happen again in our lifetime. But if we just get, you know, 3% year over year as the standard, what is historically done in real estate, then that's a great return. You know, we're approaching the $400,000 range for an average price. Now that 3% is on the $400,000. So even if you've only put, you know, 10% down on the property, 40,000 and it goes up 3% next year, what's a $12,000 return on a $40,000 investment?   Jonathan Davis 02:25:32 Pretty good.   Don Harris 02:25:34 I might have to take my shoes off to do the math, but those are pretty good numbers. And people forget that the, the rate of return is on the whole pie. You know, un unless you're just a cash investor and you're doing a cash on cash calculation,   Jonathan Davis 02:25:50 Isn't it? Right.   Don Harris 02:25:51 And see, let me figure that out. I'm optimistic, I'm, the business has slowed down, but I'm optimistic with the current interest rates has slowed the market down. But next year, you know, people still have to do real estate transactions due to life, diapers, diamonds, death, divorce, default, all still happen.   Jonathan Davis 02:26:15 And   Don Harris 02:26:15 So that's still, those alone will be four plus million in transactions next year. Yeah. And then you add on people who just want to move.   Jonathan Davis 02:26:28 I and I, and I have to say, I had to explain this to someone the other day when these people are talking about 10 or 20% plunges, I, there's a lot of people that are like, if I list it for X and I get 10% less than what I listed it for, the market's falling 10%. No, no. That's, that is not, that is not the definition of a plunging market. That is the definition of, you know, buyers having more power in the market in a market, you know, you know neutralizing. Like, just because you list it for something and you get 10 or 15% less than what you listed for it as an offer, that's not a plunge. That's right. So just wanna make sure people understand that.   Bill Fairman 02:27:04 It's nice that people are able to actually negotiate now. Yeah.   Jonathan Davis 02:27:08 It's a good thing.   Don Harris 02:27:08 Right, Right. It's it, the, the market is balanced back to the buyers and the buyers favor more favorable. The buyers have been abused the last two years   Wendy Sweet 02:27:20 To say the least. And   Don Harris 02:27:21 Most real estate agents are glad to see the, the market balancing out. Yeah.   Wendy Sweet 02:27:26 Yeah.   Don Harris 02:27:26 And so that's my day job. And then lending money and, and investing is my night job.   Wendy Sweet 02:27:32 Well, not only are you an incredible lender, but you are a kicking real estate agent as well. Real estate broker. We, you've sold several houses for us over the past few years. That   Jonathan Davis 02:27:46 One in Concord, I mean, he saved me on   Wendy Sweet 02:27:48 That one. You you really are, you know, there's people that are, are real estate agents and there's people that, that take it seriously and really understand their market and really care for whoever their buyer or whoever their seller may be. And you take it to the extreme and I just, I cannot promote you enough on that. So folks, if you wa you do South Carolina now too, or just the north? Of   Don Harris 02:28:15 Course. Yeah. No, I do not. You   Wendy Sweet 02:28:17 Do both states. So, you know, there's the, there's his email address, Don Harrison, donHarrison@myjamesonhomes.com. It's, he's,   Jonathan Davis 02:28:28 We can't, we can't recommend anymore cause we use him. Yeah.   Don Harris 02:28:30 Thank you very much. That's,   Bill Fairman 02:28:33 Well see, this is another benefit of market slowdown. There's been a lot of part-time realtors getting into the market when it was really big. Yeah. And it has, unfortunately, they're not as experienced and they've made some mistakes and it gives realtors a bad name and when the market slows down, that's when the professionals are are still there. That's   Wendy Sweet 02:29:00 Right.   Don Harris 02:29:01 It's still a complicated transaction. Yes. And I never appreciated what a realtor could do for someone until I became one.   Wendy Sweet 02:29:10 Right.   Don Harris 02:29:11 And I had bought hundreds of properties prior to that point and yet I was clueless. And so I, I do know it's a valuable service and yeah, I have a good time doing it, enjoying doing it with family and friends like you guys. So thank you very   Wendy Sweet 02:29:25 Much. Well, there, there's a lot that can go wrong and you are so great at nipping things in the bud to keep things like that from happening and, and you know, we're grateful to you for, for what you've done for us not only as a real estate agent, but also as a lender. So keep that coming.   Don Harris 02:29:45 You can picture me on a show anytime if you're gonna brag and talk.   Wendy Sweet 02:29:48 That's right. Well the truth is the truth.   Bill Fairman 02:29:52 I did, I have to mention this, I did see a post on Facebook that you put up about if that customers that work with you are, have more money or better looking and are much smarter than the average person based on a survey by yourself. Yeah.   Don Harris 03:30:10 That is my survey. And those are the facts.   Bill Fairman 03:30:15 Thank you so much for joining us on our show today, Don. We really appreciate it.   Wendy Sweet 03:30:19 Yeah, enjoy it. Good stuff   Bill Fairman 03:30:21 Folks. Thank you so much for joining us on The Real Estate Investor Show. Damn, I forgot   Wendy Sweet 03:30:28 It again.   Bill Fairman 03:30:31 Hard money for real estate investors. We're gonna show the side of Wendy here as I'm   Wendy Sweet 03:30:35 Doing this, my profile.   Bill Fairman 03:30:37 We are Carolina Capital Management. We are lenders in the southeast for real estate professionals. If you would like us to take a look at a project that you may have going on, go to carolina hard money.com and click on the apply now tab. If you're an accredited investor, click on the accredited investor tab. Don't forget to like, share, subscribe, hit the bell and Wednesdays with Wendy. Have a great week.

Bill Fairman 00:00:02 Hello, everyone. Welcome to the show. Our whole theme. This month has been about financial freedom and we are going to discuss this, to discuss what financial freedom is for each of us, Jonathan, Wendy, and myself, right after this greetings everyone. Bill Wendy, Jonathan. We are Carolina capital management. And thank you so much for joining us on the real estate investor show hard moneyed, real estate investors. What   Wendy Sweet 00:00:48 We've been running up the steps. You can't get your breath.   Bill Fairman 00:00:51 We have been running around a lot. We're getting   Wendy Sweet 00:00:52 Ready to leave   Bill Fairman 00:00:54 For the quest expo. So we're trying to put all our stuff together. So where was I? Who   Wendy Sweet 00:01:00 Are we and where, what we do?   Bill Fairman 00:01:01 We are here, Carolina, capital management. We are lenders in the Southeast for real estate professionals. So if you have a project that you would like us to take a look at, go to Carolina, hardman.com and click on the apply. Now tab, if you are a passive investor, looking for passive returns, click on the accredited investor tab and get all the information you want there. We would also like for you to like share subscribe,   Wendy Sweet 00:01:27 Tell all your friends, hit the bell, the bell liking the bell.   Bill Fairman 00:01:31 Anything else?   Wendy Sweet 00:01:31 That's it Wednesdays with Wendy? Yeah. Yeah.   Bill Fairman 00:01:33 Nope. Nope. Not yet. We have a question and answer thingy on the side or underneath. Oh yeah. If you'd like to talk to us during the show and after the show and leave wonderful comments.   Wendy Sweet 00:01:46 Cause we do monitor it bad ones and we answer questions. So it's yes we do. Yeah.   Bill Fairman 00:01:52 Oh, excuse me. Don't forget about when.   Wendy Sweet 00:01:56 Yeah. Now he says, now you're good. That was   Bill Fairman 00:02:09 Cool. We won't go there. But that was a neat little graphic. Wasn't it? Yeah, it was, it was, as I was saying earlier, we're on our way to   Wendy Sweet 00:02:19 Questex quest   Bill Fairman 00:02:20 Quest expo.   Wendy Sweet 00:02:22 Yeah. Which is in Houston, right?   Bill Fairman 00:02:25 Yes. I was waiting for the final quest expo graphics.   Wendy Sweet 00:02:31 So ETT Smith will be there. I'm excited about that. I really like him. He's he's pretty awesome.   Bill Fairman 00:02:36 Yeah. I got to meet him about five years ago at another conference. He's been, I'm not about that. He a real estate investor for many, many years. So he's not just there because he is a pretty   Wendy Sweet 00:02:44 Face. He's not just a pretty face. He's a smart guy too. That's   Bill Fairman 00:02:47 Awesome. By the way, the Wednesdays with Wendy, you can get on her calendar because she's usually booked up a couple of months in advance and it's gonna be over there in the comment section. So just click it on and get on our calendar there. Yeah. Yeah. So if you haven't got your tickets yet for quest expo, I'm sure you can get 'em at it. It's   Wendy Sweet 00:03:08 Not too   Bill Fairman 00:03:08 Late at, at a discount with using our code. Yeah. But your airplane, ticket's probably gonna be pretty expensive.   Wendy Sweet 00:03:15 Yeah. Unless you're already in Houston because for   Bill Fairman 00:03:17 Close by. Yeah. Or you could drive there. Yeah. All right. So let's get the breaking news.   Wendy Sweet 00:03:44 The, the sky is falling.   Bill Fairman 00:03:45 How many of you have surround sound on your device that you're listening to us? Rob?   Jonathan Davis 00:03:50 I was gonna say, you know,   Wendy Sweet 00:03:51 The sky is falling. Stocks are falling.   Jonathan Davis 00:03:53 The, the fed raises are up the fed raised at 75 bases points. Volker is proud. Vulgar is gives the chairman from the early eighties.   Wendy Sweet 00:04:08 Voker yeah.   Bill Fairman 00:04:09 Yeah.   Wendy Sweet 00:04:09 It's   Bill Fairman 00:04:10 Been a while. So here's to sum up our breaking news rates are high stock market low   Jonathan Davis 00:04:16 To, to, to sum rates are normal. Yeah. Yeah. For answer normal. They're not high higher. They higher than, than the historic low of 1.9. 5%. Yes.   Wendy Sweet 00:04:28 Yes. But, but, and people need to remember that when the fed raises the rates, mortgage rates usually drop a little bit. So,   Jonathan Davis 00:04:37 Well the average just crossed the 6% to 6.02. Oh, I know. Well, I mean, it's up from 1.95. So you're, you're sitting at like, yeah, right at six and you   Bill Fairman 00:04:50 Know, so the fed chairman and this comments and press conference afterwards basically said, we're gonna have another 75 basis points to raise in January. They'll at that point, they're gonna let the data, see where it goes. But frankly,   Wendy Sweet 00:05:11 Prices come down on everything. Yes.   Bill Fairman 00:05:13 But they're looking at 2025 before they think, right. We will be out of a recession, so to speak. They, they keep saying, they don't know whether it's gonna be a recession or not, but it's gonna take until 2 25 to work this through the system. They want to have a higher unemployment rate and they want,   Jonathan Davis 00:05:36 We're not sure if it's a recession, but if it is, that's what we want. It'll be 20, 25 before it's over. Yeah. But we're not saying it's,   Bill Fairman 00:05:43 It's, it's gonna take a while to move all this thing through the system. Yeah. That said they   Wendy Sweet 00:05:47 Want prices to come down. That's bottom   Bill Fairman 00:05:49 Line. I'm pretty old. And I have lived through many, a downturn. I remember before I even got my driver's license sitting in the gas lines, I bought my first house when Jimmy Carter was president.   Jonathan Davis 00:06:02 Oh, I thought they were on steam at that point.   Bill Fairman 00:06:05 But my pretty much my, my whole point to this is it's not the end of the world. You just have to manage your expectations. Gotta   Wendy Sweet 00:06:13 Roll with the changes should   Bill Fairman 00:06:15 Be something. And there, there have been real estate investors when rates are high, the real estate investors, when rates are low, when prices are high and when prices are low, that's the thing about being a real estate investor is that you're a problem solver. That's right. And there's always gonna be problems.   Wendy Sweet 00:06:32 That's right.   Jonathan Davis 00:06:33 Right. I don't know. Sometimes I feel like I'm a problem survivor.   Wendy Sweet 00:06:37 It does feel that way. Sometimes   Bill Fairman 00:06:39 You're a problem creator.   Jonathan Davis 00:06:42 Well,   Bill Fairman 00:06:43 But if you know how to create him, you know how to fix him. Right.   Wendy Sweet 00:06:46 He's just, practicing's putting on practice for himself. That's   Bill Fairman 00:06:48 Right. So our theme this month has been, you know, financial freedom, how to get there. Your   Jonathan Davis 00:06:55 And members go ahead. Before, before we get there, just, just to give a little more backstory or not backstory, a little more data. Like for the inflation numbers we are using inflation is, is measured year over year. So it's, you know, August of this year to August of last year. Well, we didn't cease inflation above 3% until October of 2021. Right? So this October, when we can compare those first inflationary numbers to the year over year, that's gonna give us a better idea. That's gonna give the fed a better idea of what's going on. Right. Is it, is it, is it staying around seven to 8%? Is it nine? Or is it, is it two? You know, and if, if those numbers come out and they're a lot lower, then that that rate probably won't happen. That rate rise won't happen in January, but with what three and a half percent unemployment, 11 million jobs still unfulfilled, you know, everyone's fighting for talent and over, I'll use the word overpay   Wendy Sweet 00:08:03 That is everybody doing for work? I don't understand. Yeah. Where did all the employees go?   Jonathan Davis 00:08:10 Well, and so everyone's fighting for new employees or the, the higher and they're overpaying and now will, and it is   Wendy Sweet 00:08:16 Overpaying. Oh yeah, no doubt.   Jonathan Davis 00:08:17 And that is one of the key ingredients to inflation. Yeah. And that's one of the key ingredients to the inflationary numbers and why they're so high is the, the income, or I guess the, you know, the average salary or monthly, you know, wage has increased dramatically in a short period of time,   Wendy Sweet 00:08:35 $15 to flipping a hamburger. That's pretty strong.   Bill Fairman 00:08:39 Well, to me, it's the energy that's what's causing inflation. Energy is a part of every single piece of our economy. Well,   Jonathan Davis 00:08:50 Gas is going down bill   Wendy Sweet 00:08:52 Way down. That's,   Jonathan Davis 00:08:53 It's not $5 anymore.   Wendy Sweet 00:08:55 I just paid for 4 29 a gallon this morning.   Bill Fairman 00:08:59 But if we continue to try and listen, I'm, I'm in awe of the above, but you can't just cut one off and start another. Right. Because right now the other is not very reliable and it's not inexpensive to operate. Yeah.   Jonathan Davis 00:09:15 Yeah. And the question, I think Scott said, well, wages drop. Yeah. The question is when, cause   Wendy Sweet 00:09:22 You know, as soon as we have an Bundance of employees, well,   Jonathan Davis 00:09:24 It's, it's that, but you know the cause what, what is that doing with those higher wages it's causing the cost of goods to, to go up,   Wendy Sweet 00:09:32 Continue and shipping costs too. I mean, that adds a whole lot to it. That's gonna be hard to reverse that. I   Jonathan Davis 00:09:38 Think, yeah.   Bill Fairman 00:09:39 I disagree with you. Okay. I think love it. I think, I think wage point counterpoint wages, wages are sticky. You can't even say, and you can't once you've you can't put the toothpaste back into two.   Wendy Sweet 00:09:50 Yeah. That's true. However,   Bill Fairman 00:09:51 They can find other ways to be more productive so they don't have to pay as many people. Does that make sense? Like more,   Jonathan Davis 01:10:00 I would agree with you if we, if we passed a law federally that the new minimum wage is $15 an hour, if that had happened, I would agree with you. However, that has not happened. And wages are dependent on where you are. Yeah, no agree. And the federal mandate is seven and a quarter still or the seven and a half. Right. There are at seven. So is it sticky because it's double what the minimum wage requirement is. I'm not sure I'd use the word sticky   Bill Fairman 01:10:33 Again. That's good. It's a lot like real estate it's location.   Wendy Sweet 01:10:38 Yeah. It is location driven.   Bill Fairman 01:10:39 And when, when you, when we end up and what the fed is hoping for is that we have a higher unemployment rate. Sure.   Jonathan Davis 01:10:46 Yeah.   Bill Fairman 01:10:46 Because you're, they're trying to take demand and get rid of it or at least lower it. And that's how they cure their, the inflation. Yeah. That's a sticky   Jonathan Davis 01:10:58 Question. Thank you.   Bill Fairman 01:11:00 But they're trying to do demand destruction right now and that's gonna cause unemployment rates to go up, which means fewer people will have jobs, which means there won't be as high a demand on increasing wages. Yeah.   Jonathan Davis 01:11:16 At   Bill Fairman 01:11:16 That point.   Jonathan Davis 01:11:17 And to clarify, no one, no employer is going to say, oh, now instead of paying you $15 an hour, we're gonna lower you down to 12. Right. Right.   Wendy Sweet 01:11:25 That're just gonna,   Jonathan Davis 01:11:26 That doesn't happen either. You have you a turnover and that person leaves or you help them leave. Right. Yeah. And then you hire in, at a lower   Wendy Sweet 01:11:35 Wage, right?   Jonathan Davis 01:11:36 Yeah. Or the other side of it is the wage appreciation just becomes stagnant. And that way it allows, you know, the cost of goods to catch to lower, which   Wendy Sweet 01:11:48 May be the 20, 25 number might   Jonathan Davis 01:11:50 Be, you know,   Bill Fairman 01:11:51 You get back to contract employees. That's where, where a contract employee started anyway, as wages were going up. And I, I don't wanna single at any particular company, but go ahead. Bank of America used to do that all the time. Yeah. They would eliminate certain departments or eliminate people in departments. They would lower 'em but then they would end up no same people would get jobs with contractors that were doing the same jobs they were doing before. But now they're working with another company who was under contract with bank of America, making less money. Yeah.   Jonathan Davis 01:12:22 Yeah.   Bill Fairman 01:12:23 And they didn't have to pay 'em benefits. And that kind of,   Jonathan Davis 01:12:25 I feel like you just proved my point. Well,   Bill Fairman 01:12:27 He I'm saying wages are sticky, but there's other ways to make 'em less expensive for the   Jonathan Davis 01:12:33 Less, less sticking.   Bill Fairman 01:12:35 Yeah. Less.   Wendy Sweet 01:12:36 I wonder too, what, how higher education is gonna come out on this? You know, because you know, to go to college, now you have to take out a loan. It's pretty sad. But, but it's, it's almost imperative that, that you borrow money to go into college unless your parents have been able to save money for you or you've worked to make that happen   Jonathan Davis 01:12:58 Or you don't   Wendy Sweet 01:12:59 Go that's right. And, and you know, I hate that they're considering this $10,000 or they might have already proved it. Reduction on what's owed on, on college education. I hate that they're doing that. We're teaching people not to be responsible, but I, I, you know, the college college tuition should come down. I don't know that it will, but I do believe there are a lot of people that will be coming out of high school learning trades rather than paying those high college prices.   Bill Fairman 01:13:34 There's a Senator. I hope that it is introducing a bill that wants the colleges to pay half that bill and also be more open about the income that their students, after they graduate are earning and that type of thing. And one of his comments was that he's tired of the universities charging extortion amount for tuition while teaching stupid stuff that has never happen. Like men getting pregnant.   Wendy Sweet 01:14:06 Yeah. That's a good one. Now. I don't   Bill Fairman 01:14:09 Know. I don't know how, how far that will go through, but at at least they're bringing it to the attention. All right. So we we're,   Wendy Sweet 01:14:18 I know we're close. We gotta keep moving.   Bill Fairman 01:14:19 We've been, we've been rattling on about the breaking news now. Yeah. For almost the entire session. Yeah.   Wendy Sweet 01:14:24 We're gonna solve the   Bill Fairman 01:14:25 World's problems. What's financial freedom to you, Jonathan.   Jonathan Davis 01:14:28 What is financial freedom to me, man? That I can, yeah, just up in it is appreciation depreciation and cash flow. Like that is what financial freedom is to me. What do I mean by that? It means I was, I was having a conversation with friend today and you have friends.   Wendy Sweet 01:14:52 I do have friends one at least one.   Jonathan Davis 01:14:54 Yeah. They'll never admit to it. But we were talking about how the credit unions are being saturated with more and more money because now the savings accounts are paying over a percent.   Wendy Sweet 01:15:08 Woo.   Jonathan Davis 01:15:08 What they're paying over percent. Wow.   Wendy Sweet 01:15:10 And   Jonathan Davis 01:15:11 You know, that's one of the things, you know, I think I use the word stupid money, but yeah, no, I, I still I'll keep with it. The stupid money.   Wendy Sweet 01:15:19 Yeah.   Jonathan Davis 01:15:19 Puts all their money there. Cuz I can make 1%. It's been paying 0.2, five before, but now can make   Wendy Sweet 01:15:25 1%. That's right. That's right.   Jonathan Davis 01:15:26 And inflation is how much, like you are losing at an eight, a negative eight one rate ratio. Right. So how about don't do that because you're giving them free money to lend out which well, you know, on the, on the lending side, people love it because that's what we were talking about. Like friend, he, you know, he would use their money to buy multifamily, but I guess I'm getting a long way. Like don't put your money there, put it in an asset that appreciates over time allows you to depreciate on your taxes for capital expenditures and then also gives you cash   Wendy Sweet 01:16:04 Flow. That's right. Like   Jonathan Davis 01:16:05 If you can, if you can cover all of those things, you will outpace inflation. You will outpace the stock market and you will be financially free. Now it's not an easy road. I was having dinner with a, with a guy the other day and we were talking about how expensive it can be, especially right now to own real estate and stay in it and not just sell or, or become a whole seller or   Wendy Sweet 01:16:31 What have you. Yeah. Taxes are up.   Jonathan Davis 01:16:32 Taxes are up all, you know, they've reassessed all the values when you know, they won't be reassess. Well they have to do it every five years. Yeah. It'll be a while. They won't be doing it at any time soon. Yeah. Right. So us taxes are gonna stay high. Yeah. So it is expensive and it is, it is difficult and it's not the easy path, but it is the one that leads to financial freedom.   Wendy Sweet 01:16:52 I agree. I agree. So for me, financial freedom is one sentence. My money working for me instead of me working for money. Yep. That's that's the bottom line and which is really what you're talking about. Yeah. I, I, you know, I will never retire and I let me knock on wood. When I say that I have no intention to ever retire and walk away from working. I enjoy it. You know, I I've got like a serious, you like having you around, well, I, you must want something. So I love real estate. I have a serious passion for real estate. All that entails real estate notes, you know, rentals, self storage, apartments, whatever it is. I love everything about real estate. It's just a passion for me. I don't ever wanna stop learning more and being involved in the art of the deal, which is my favorite part of real estate. I don't ever wanna stop that. But what I do want is the opportunity to say, I don't have to do this if I don't want to. Right. You know, I want my money to work for me. I wanna be able to go to sleep at night and know that I've got money. That's being deposited into my account. You   Jonathan Davis 01:18:09 Know? And, and you mentioned the art of the deal. I mean, that's one of the pieces of financial freedom is that when, when you do have that knowledge base and that drive and that, that determination to do deals and that desire, like you need the space to be able to do so. So part of that freedom is having the space to analyze deals, to look at them, cuz you can't analyze and look at deals and close 'em. If you're out there scrubbing toilets or cleaning up your   Wendy Sweet 01:18:36 Rentals. That's exactly right. So that's exactly right. And you know, a lot of people will say that part of their financial freedom is being able to lead their children a legacy, but they   Jonathan Davis 01:18:46 Can build their own legacy.   Wendy Sweet 01:18:47 I that, and you know what, I think I must be a terrible parent cuz I don't feel that way at all. I mean, sure. I would never want my kids to suffer, but my legacy to them is teaching them what I know, teaching them, what I do and their relationship with Jesus Christ is, you know, the number one legacy I'd love to, to leave with them so that they're always seeking him in what they do. But you know, I don't wanna leave a bucket full of money for them.   Jonathan Davis 01:19:13 We, I go back to, you know, Scott Patton who's, you know, running the show for us. One of the things that he said was, it's a saying, I think in Canada, short sleeve, long sleeve, short sleeve, and you know, the short sleeve is the guys out there working in the fields or, or what have you do a manual labor. And then they're, they, they build a legacy and then their sons become long sleeve. They, you know, work in an office, they get, you know, soft whatev what have you. And then the next generation of short sleeve again, because they had a soft generation prior. Yeah. So yeah. Good point. You want to instill more than more than you wanna hand out dollars to your kids or assets. You want to hand out,   Wendy Sweet 01:19:52 Give more fish and pole,   Jonathan Davis 01:19:53 Give em work ethic and the ability to, to do   Wendy Sweet 01:19:57 Things. That's right.   Bill Fairman 01:19:57 All right. So for me,   Wendy Sweet 02:20:00 We're out of time too   Bill Fairman 02:20:01 Close. Well   Wendy Sweet 02:20:05 That's airport   Bill Fairman 02:20:06 Financial freedom for me is doing what you want with whom you want when you want and not have to worry about where you're doing it. You know what I mean? At the   Wendy Sweet 02:20:18 Bar, you   Bill Fairman 02:20:19 Can go anywhere. You want to go and not have to worry that you're not being able to maintain that same lifestyle. Right. And with real estate, well here right   Jonathan Davis 02:20:29 Now, here's, I've heard transient people say they do that.   Bill Fairman 02:20:33 The, the stock market game right now, if you're a stock market person here's on now that the market is dropping here is the defensive play I'm gonna get into treasuries because the person that loses the least is the winner.   Wendy Sweet 02:20:50 Yeah. Now   Bill Fairman 02:20:51 How is that? How is that investing that is just grasping on to not losing when you're in real estate, you have an asset that continues to go up in value and it's paying you an income. And your whole goal there is to have essentially a balance that increases in value that you can live off of at the same time and keep that same lifestyle. Right. Right. And you wanna do it as passively as possible. So you can do what you want with whom you want when you want and where you want,   Jonathan Davis 02:21:22 You know, just finished up a, a book called mandals. And it's about, was   Bill Fairman 02:21:27 It a look about Dennis?   Jonathan Davis 02:21:28 It was not, you know, it was their actually their last name, not their, not their job, but   Wendy Sweet 02:21:35 What was it called   Jonathan Davis 02:21:36 Again? The mandals. So   Wendy Sweet 02:21:37 The mandals. Yeah, the mandals. Yeah, the   Jonathan Davis 02:21:40 Mandels okay. And it's, it's a dystopian book, very well written around economics. It's a lot of, you know, you get on professors, our characters in the, in the book, but basically it takes you, it's taking you through kind of what we're going through now. And then, you know, extrapolating that to like the worst case scenario. Yeah. Like the, the fall of, you know, our economy. Wow. Which in the book is, you know, because of some external forces as well as internal forces. But the thing that struck me in the book was with 30 and 40% inflation rates that they're, you know, talking about in the book on groceries and what have you, the only winners, or I don't even say you can say winner. The only people who survive at a semi comfortable rate are those who own real estate and those who own energy and those who control the produce. Interesting. Those are the only people who are doing okay. And just, okay. But again,   Wendy Sweet 02:22:45 So I got the chickens and the, the real estate covered. Yeah.   Jonathan Davis 02:22:50 Well, cause you   Bill Fairman 02:22:51 Just need to get the energy part that's right. Figure it out   Wendy Sweet 02:22:54 Really well.   Jonathan Davis 02:22:55 It's, it's a really good book. I've been listening to it on audible. I was actually, I listened to it, a good portion of it driving six hours. And I remember like, it sucks you in so well, it makes you feel how poor and awful things can be. I remember stopping at a gas station after listening to it. And I saw that the gas was like three 90 something, a gallon. I was like, I can't afford this. How am I gonna do this? And they're like, wait, wait, no, I'm, I'm not there. I'm here.   Bill Fairman 02:23:24 I'm not the book. All right. Folks. We were hitting out to. All right. Yeah. We gotta ask the question. Yeah. Our question for this week is would you like   Jonathan Davis 02:23:40 To take yeah. Yeah, sure. So with the stock market in, let's say turmoil cause it's right there. Yeah. Turmoil, tumultuous, tumultuous time is your money management in alignment with your goals? We we'd love to know that. I know a lot of people who have talked we've bill, Wendy, and I we've all talked to people who are moving money out of the stock market, which, you know, I understand, you know, six months ago would've been better, but you know, they feel that way too. Yeah. You know, what, what are, what are your goals? And you know, are you moving money outta stock market? Are you keeping it in? Are you moving into other assets? Which we'd love to know. Yeah.   Bill Fairman 02:24:24 You can't, you can't win when you're trying to time the market. Not too many people do. Right. Same thing with real estate. You don't time real estate. You get in it and you get in it at a price that makes sense for the numbers. Yeah. Same thing with the stock market. It's you get in with the numbers. Make sense. Yeah. But you certainly are gonna have less fluctuations and you're gonna have an asset that continues to grow in value in, in real estate. So folks, I'm gonna switch you over here to nothing about everything about me. Anyway. It was great. Having you on the show. We are Carolina capital management. This was the real estate investors show hard money for real estate investors. Like I said, we're Carolina capital management and we are private lenders in the Southeast for real estate investors. If you have a project you'd like to take us, you'd like for us to look at, go to Carolina, hard money.com and click on the apply. Now tab, if you're a passive investor and you wanna   Jonathan Davis 02:25:25 Get outta the stock   Bill Fairman 02:25:26 Market, looking for passive returns, go to the accredited investor tab. Don't forget to like share, subscribe, hit the bell. Hopefully we'll see you guys in Houston for quest expo this weekend. Don't forget about Wednesdays with Wendy. See you next week.

Bill Fairman 00:00:00 I don't even see it up there. Oh, hi folks, bill Fairman here. We are going to talk about what freedom financial freedom actually means to you right after this greetings from the grand downtown rock hill, South Carolina. Woohoo. We are Carolina capital management. Thank you so much for joining us on the real estate investor show hard money for real estate investors. Wendy reminds me. I have to smile.   Wendy Sweet 00:00:57 You can do it. You can talk. At the same time.   Bill Fairman 00:01:00 We are Carolina capital management. We are private lenders in the Southeast for real estate professionals. And if you have a project that you would like us to take a look at good Carolina, hard money.com, click on the apply. Now tab. If you are a passive investor looking for passive returns, then click on the accredited investor tab. Don't forget to like share subscribe, hit the bell. And don't forget about Wednesdays with Wendy. Wow. That   Wendy Sweet 00:01:35 Was cool. And short and sweet. And it matched my junior high school school colors. That's   Bill Fairman 00:01:40 Right. Very nice. So Wendy donates 30 minutes of her day per person on Wednesdays to talking about real estate. She's usually booked up a couple of months in advance. So there's the link. It will be over in the comments and questions side, which is either gonna be on the right hand side of your screen or underneath, depending on the platform that you are viewing us from. Well, since we teased it last week, this show is recorded.   Wendy Sweet 00:02:08 That's   Bill Fairman 00:02:08 Right. So we don't have any breaking news because that would've been last week's news.   Wendy Sweet 00:02:12 That's right. We don't know. We can't see into the future. Although sometimes we claim that we do, but we really can't.   Jonathan Davis 00:02:18 I mean, when it works out, you have any   Bill Fairman 00:02:19 Additional commentary you'd like to add for the fake breaking news for   Jonathan Davis 00:02:23 The fake breaking news.   Wendy Sweet 00:02:24 Yeah.   Jonathan Davis 00:02:26 No, but no breaking news, but you know, we are, we, we would where we're at, like the first month in 17 months where homes are selling under asking price. Oh   Bill Fairman 00:02:38 Nice.   Wendy Sweet 00:02:38 Yeah. Yeah. That's so amazing.   Jonathan Davis 00:02:39 The first time is 17 months homes are now selling under asking price.   Bill Fairman 00:02:43 It must be a crash.   Jonathan Davis 00:02:45 That's what they would have you believe. Yeah.   Bill Fairman 00:02:47 Do you remember back in the day when people actually negotiated price?   Jonathan Davis 00:02:52 No one knows what negotiation means anymore.   Wendy Sweet 00:02:54 Well, we do now and that's, you know, that's something that investors really need to, especially wholesalers. And rehabers really need to understand that because if you're using cops from six months ago, they're not real, are they? They're real. They're just not relevant. Yeah, that's right. You need to use the ones from, from very, very, you know, past 30 days or less, or from the future, you know,   Jonathan Davis 00:03:15 You can do that,   Wendy Sweet 00:03:17 Which is what we do   Bill Fairman 00:03:19 Kind of our point here is that you don't wanna hear, you don't wanna listen to the noise. The noise is just that it's noise. We were not in a normal market. We haven't been in a normal market and several years. Yeah. It has been crazy out there. And all we're doing is we're coming back   Wendy Sweet 00:03:34 To reality,   Bill Fairman 00:03:35 To a normal market. And we're still above the, the normal market. Yeah. Yes. I mean, we really need 60 to 90 days on market for homes and we still don't have that yet.   Jonathan Davis 00:03:46 I mean, the, the average home value, I think is like 3 75 now, which is way more than it was two years ago. Yeah.   Bill Fairman 00:03:52 And listen, I don't see the days on market slowing down an awful lot. I mean, it's gonna come down. I get it. But we, we still, yeah, but   Wendy Sweet 00:04:02 We change, sorry. We had this   Jonathan Davis 00:04:04 Conversation the other day and it really got me   Wendy Sweet 00:04:06 Stop limit me around.   Bill Fairman 00:04:08 We still have a housing shortage out there. We're about 5 million behind on new homes. Yeah. And we still create households. People still need a place to live.   Wendy Sweet 00:04:16 Rents are going up.   Bill Fairman 00:04:17 All right. So I'm going to pause right now for another fancy David Phelps moment.   Jonathan Davis 00:04:32 I just took a deep breath, man. That's how I feel when I'm around David. So yeah, that's really, really relevant.   Bill Fairman 00:04:38 David has been gracious enough to give us two shows. He's an awesome guy, great friend of ours. Let's bring him on. Thank you so much for joining us. David   David Phelps 00:04:49 Brush off the beach. I'm here.   Wendy Sweet 00:04:51 You get a sunburn from that.   Bill Fairman 00:04:56 So one of the great things that you do is you teach people, mainly private professionals,   Wendy Sweet 00:05:05 Doctors, dentists, but,   Bill Fairman 00:05:06 But anybody that wants to learn, cuz you have a lot of books out there about this too, is about being financially independent and, and free. So what does it mean to be financially free?   David Phelps 00:05:20 It's to have enough income, enough cash flow that's produced by investments. I like, I like asset based investments. So asset based income that will produce the cash flow that you need for your essential lifestyle, whatever that lifestyle is to me, that's financial freedom. And we'll go into more depth on what that, what that allows people to have, why I think it's important, but essentially financial freedom gives you choices and options. If you don't have to go to work or keep the business running or operating the way you've been doing it or putting up with certain people or clients or whatever it is you think you have to do when you have, when you're financially free, you can change the model. You can try things, you can test things, you can take new ideas on it. And that's that's I think the, the real goal in being financially free, it's not to do nothing.   David Phelps 00:06:11 It's not to be on that beach that you guys stuck me on for the last week. That was great. I don't, I don't, no, I can't live there forever, which is nice. I, I, I need to be doing something, but I wanna do it the way I wanna do it. I wanna work with people that I choose to work with that. I think we have some, some values in, in, in common that I can actually provide a service or a product that, that they actually appreciate. And there's an exchange for services. It's about the money, but it's at that point, not all about the money and that's what changes your whole mindset about always trying to, you know, eat out enough money to pay the bills and have a nice vacation. And maybe you get a better car. That's just the, the common we call the treadmill last week or the hamster wheel. Jonathan said that too many people are on. And it's just, it's just changing the mindset about how money works that can really change the lives of, of people at any, any dimension in their, their life, whether they're modest income earn, moving their way up or middle income or, or even higher income, which typically they have the hardest problem. High income actually have the harder problem with this than people that are a little bit lower on the scale.   Bill Fairman 00:07:20 Hmm. Interesting. Is, is that, do you think that's because they had that mindset of, they don't know what enough is yet.   David Phelps 00:07:28 Yeah, I think, I think, I think not knowing how much is enough. And then I think also there's that tendency to elevate one's lifestyle because as you earn more money, because you're more proficient efficient, better at what you do, better products or services. That's, that's great. We should all aspire to do that. As the income goes up, then typically it's like, well I need nicer things and there's nothing wrong with that. It's just, don't let that get out of hand. I, I, I'd rather see people make investments that can then provide for the nicer things that they choose to have.   Wendy Sweet 00:07:59 Well, one of the things that, that I think is so important that you teach through freedom founders is you, you allow people to have the fear removed what's gonna happen. If I stop, if you know, highly paid professional is, you know, their business is running great, as long as they're there, but when you're no longer there what's gonna happen. If I stop, how can I stop? I have this great fear of doing that. And you have just done an incredible job of teaching people that they can throw that fear out the window because alternatives, right?   David Phelps 00:08:41 Yeah. And it's, it's not even just to stop Wendy it's, it's just even to, to cut back a little bit or let's just be very pragmatic. It's getting home in time to actually have dinner and maybe go to your kids' soccer games. I hardworking people who just feel like they have to grind to your point. Don't know how much is enough. Feel like that they'll miss the opportunity. If they don't get all they can while they're young and energetic, but they miss out on the very thing that they can regret later in life. When they get to a point of quote retirement, don't like the word, but you know, retirement, but then where are the kids? Kids are gone. It's like, oh, but now I have the time I have some discretionary money. I could actually live my life that you missed out. And so giving permission back, removing the fear that people have by not having to grind and actually take some extra time off.   David Phelps 00:09:32 That's the biggest thing that, that showing people, how investments in alternatives, particularly real estate provides that sustainable passive income that can start to replace the need for the person, the hard worker to have to grind as hard as they grind. So you can start to taper it back. I've got docs that are, you know, in their thirties and forties, you've met many of them. They don't have any, any idea of, of giving up, you know, what they do anytime soon. But they just like the fact that they can actually take, you know, a full day off during the week or maybe a day and a half, or, you know, get it down to three days a week and not feel compelled to have to keep at that grind because everybody else is. And that's like Harrison factor that doesn't serve. Absolutely. That's pretty well at all.   Jonathan Davis 01:10:15 Yeah, no, you know, touch on, on financial freedom. It reminds me of a few episodes back. We had Chris miles on here and Dr. Phelps, I know you watched it, so I'm not gonna tell anything you don't know, but you know, he was on there. He's telling about, you know, the financial freedom model that everyone is prescribed in America. And the world abroad is invest, you know, put money into your 401k, you know, put money in savings. And he gave this, you know, description of his father retired and you know, was gonna draw on his 401k. And he wanted Chris to look at it. And Chris did and said, well, you're gonna have to die in about five years because that's all this is gonna last you. And like, and that was like the wake up point for him and, and his dad apparently too, but like that's not financially free. So, you know, that model of what we're prescribed, doesn't seem to work your model. David, can you kind of, I know you've kind of tiptoed around him, but can you kind of give us a little more of the nuts and bolts and the nuances of what you are telling your people, how to build this financial freedom and that, that maybe isn't 401k.   David Phelps 01:11:27 Yeah. The 401k, the traditional financial retirement model, as you describe it, Jonathan is an accumulation model. It, it is about discipline and discipline's important. That's taking money and, and putting it in a vehicle, this, this case, an IRA or a 401k, that's basically invested by somebody else. Who's gonna choose stocks, mutual funds, bonds, whatever. It might be kind a mixed financial portfolio. And, and that's supposed to just, just, you know, sit in those accounts and, and grow over over the years. Well, they grow. And then of course, then we have a market downturn and, and it, and it drops back down and, and back to contribution level this up and down what retirement requires, or let's just say removing yourself from active income, what it requires is cash flow, not at accumulation. It requires cash flow. The traditional model that we're talking about, the 401k does not provide for cash flow.   David Phelps 01:12:19 The, the whole game there is well build up as much as you can. And then you ask a financial advisor today. Well, how much should that be for, you know, any one person just, they can't give a really clear answer? Well, of course not because the, the, the variability in the economics today with inflation factors and, and all the volatility, they can't really. So what they tell people is just, well, as long as you can keep working, keep working, you know, well that's cause they wanna manage more, more the capital. There's a little bit of a incentive in there for, to keep, you know, keep managing their money. But the problem is they accumulation models based on you have so much. And they try to run these algorithms with this fancy software to say, okay, well, based on how much you've got here, we're trying to forecast, you know, another 25, 30 years down the road, how can they forecast the economic models?   David Phelps 01:13:03 Could they, could they forecast COVID could they forecast all the helicopter money we've had? Can they forecast? No, they can't forecast any of that. How do we do it with cash flow? Well, it's the fundamentals of real estate. As we know them very well is in as real estate keeps pace with inflation. So I don't think it's very healthy for our economy to be running it eight and a half or 9% inflation. The CPA CBI rate that we have now, that's not healthy, but you know what our assets, and you've already talked about it earlier, reds, go up the values, go up. So at least we can keep pace financial model, not, not the case. You start having to deplete that financial model, that accumulation model depleted over time and try not to run out of money. Chris miles talking about his father was looking at that saying, yeah, dad, you, you need to take out this much every year or two pay for your burn rate because there's no cash flow in this model.   David Phelps 01:13:50 It's just, you just stacked it up as high as you could get, but you only stacked up enough to last you five more years. You look at inflation rate today and let's just say, let's just, let's just P it at eight point half percent or even 8% to I do the math in my head, use the rule of cutting two every nine years with an 8% inflation rate, the purchasing power of your dollar or your a hundred thousand dollars or your million dollars, whatever you have is cut in half, cut in half. So you thought you had a million dollars. It was me. That's gonna work really well for me for the next next number of years. Oh, but gee, in nine years it's only gonna be worth half a million dollars. And then in another nine years, it's worth a quarter of a million dollars. How's that gonna work out when you've not attached your, your plan to a vehicle that actually keeps pace with inflation?   Bill Fairman 01:14:35 Very well said very well said. Yeah. And when, when you, when you look at that model as well, it has a lot to do with timing. I, I know our mutual friend, Ryan Parsons and Chris miles. I, I had discussions about this when you use that accumulation model, when you're using the 401k, putting money in the stock market, especially with the 401k we have. And then this is anecdotally, I don't have actual statistics on this, but everyone that I've known that   David Phelps 01:15:05 I'm surprised you don't,   Bill Fairman 01:15:08 That I know that has had a 401k over a period of 20 years, they end up with about the same amount of money yeah. That they had for their contribution and their employer's contribution. They made no more or no less, pretty much in that same ballpark. So having it in the stock market, really, for the most part over that long period of time, all it did was hold it in place.   David Phelps 01:15:32 Well, it's, it's, you know, it's it's wall street, wall street is a, you know, billions and billions of dollars, trillions of dollars platform, major marketing marketing platform, and essentially wall street indoctrinates the majority into thinking that's the plan. And so it's, it's just trying to change people's mindset to say, there is another way to do it, right? It's not as easy as cooking a mouse. It's not as easy as just, you know, having money pumped into your 401k. But if that plan's not gonna work, then I tell people, shouldn't you be considering something different, even if it means you have to do a little work and do get a little education to figure out how this is gonna happen. Doesn't that make sense for you? Otherwise, you're gonna be in a very nebulous place when you want to actually take your foot off the pedal of that active income and actually go into some transition to maybe some kind of retirement model. Whenever that might be, you can't do that with the accumulation model. It's just, it's not, not, it's not there.   Wendy Sweet 01:16:28 Yeah. Well, and just as inflation changes, so does your financial number, you know, depending on what age you are and you know, what's happened all around you, you know, how do you keep up with that change in what your number is? How often should people reevaluate where they are and where they're going?   David Phelps 01:16:52 Well, I think relatively often, and, and most people don't, you know, we talk about in businesses and I think you mentioned earlier, you know, Wendy about, about having, you know, a with, with a business, you know, you have a regular monthly, you know, financial meeting and you go through, you know, the expenses and, and the, the revenues and look at profit. And I think you've gotta do that on the personal side too, whether you do that yourself and you're using a QuickBooks, or you have a, you know, have a accountant or somebody can help you. But I think you've gotta look at it on a regular basis because there is creep even without high inflation there's creep. So you add inflation into the normal creep and, and, and things can get out of hand. So you've gotta keep a real eye on what that creep looks like and realize that, that it, it does increase over time, unless you really are judicious about, about removing the things that are no longer need to be part of that burn rate that we talked about   Bill Fairman 01:17:46 Something you okay, you're always taking a breath. I'm not sure. Well, the good, the good news is I'm taking breaths. So I, I know we all preach diversification in our real estate portfolios, and everyone has different goals with their freedoms, freedom. Some of it is traveling a lot. Some of it is, you know, making sure I have a legacy that I can pass on spending time with the grandkids. Yeah. Good causes that you wanna participate in. Do you feel like it's more important to own actual assets or to be a part of more passive invested in investing syndications funds? Yeah. And again, I, I know it probably depends on, on each person and what their goals are, but we'll just talk about you in your opinion, because of your lifestyle, what you wanna do. Are, are you more in the passive stuff or more in the property holdings? It's extravagant lifestyle driving around that 1996 Toyota. Yeah. Right. It's more of a, it's a Honda accord because they are the most   David Phelps 01:19:07 Reward.   Bill Fairman 01:19:07 It's expensive to operate over a period of time.   David Phelps 01:19:12 I, I think your answer is right. It depends. And it, it it's changed in my life. So when I'm younger and I have much more time than I have money or capital to invest, then it makes sense for me to put the time in and, and really own the specific assets. Like that's what I did. I started buying properties, rental properties. I got into understanding the, the note side or the debt side and, and, and financing properties and carrying paper or buying paper. But basically I was, I was involved in the operational aspect of, of locating, acquiring the, managing the, the, these particular assets when I was younger. And that made sense where I'm in my life today. No, I don't want, I don't wanna talk to another tenant. I I'm done. I'm done with that. I'd rather have somebody else managing my assets. And that's what I call, you know, one degree of separation from your money.   David Phelps 02:20:06 Now, if I'm managing my own stuff, then I'm, I'm, I'm fully engaged with that. I get to call the shots. And so that's control and control's good, but then control also requires time. I want more time back in my life. So I can, I, I can be one degree of separated, separated from my money by investing my money in Carolina capital, because I know bill Winnie and Jonathan, I, I, I get to know you, I meet with you. I break bread with you. I'm inside kind of inside like the boardroom of what's going on with how you're managing my money. That's as best I can get without doing it myself on wall street. I could never do that. I maybe I get some financial reports, but I never actually get to talk to the people, the principals who are actually running operations to really know what's going on inside the culture. You're very open and transparent. You, you talk to people all the time. You have Wednesdays with Wendy and you're you do these shows. And I can really get to know you and decide, you know, are these people that I really know, like and trust. And, and I want to be a past investor in this point in my life. So I think it just mattered depends upon where you are in building your, your game plan, your wealth plan as to how active or passive you might want to be.   Wendy Sweet 02:21:14 And it, the networking is so important in, you know, being involved in a community that has the same values and goals. People that are like-minded that networking is so very important. You know, we we'd love everybody in the world to put their money in our fund, but we also have friends that operate funds and syndications, and that we're happy to refer to other people because we know those operators as well. So, you know, you find one good one, you know, ask them, you know, who else would you recommend? Because we all kind of think alike. We, those of us that think alike stick together, and you've done such an incredible job of doing that through freedom founders, the, the, the group of people that you have chosen not only as trusted advisors, but the people that are coming in as members of freedom founders, it's, it's just amazing how you've been able to pull just the right matchup of people.   David Phelps 02:22:25 It, it is important to surround yourself with people that are like mine have similar, similar values and are on a similar path of, you know, again, in this case, you know, creating freedom, different ways to do that different definitions, but with the same mindset of, of, we don't have to follow the herd. You heard mentality the group, think of you do the 401ks. I mean, it's one of the first things that happened when people come, you know, to our group, right? Is, is they typically have, have the 401ks and they've done all that, but they really recognize very quickly that in a place where they are networked and associated with like-minded people that there is a no like, and trust element to it, that they can go off in a different path and be much more successful as their own financial advocates and not just advocating it to, you know, a platform like wall street.   Wendy Sweet 02:23:13 So, David you've, you've said this before, if your, your, your current self was talking to your younger self, what advice would you give yourself in starting off investing your, your 25 years old? What, what advice would you give yourself?   David Phelps 02:23:34 Well, I, I started about then at that age. And so that was a good thing. I got started. Just make a decision get started. So that's number one. What I, what, what I, what I could have done better. And maybe it wasn't my fault, but I, I, I would've found mentors like local mentors more quickly. And, you know, we didn't, this is back in the dinosaurs where we didn't have smart phones. We didn't have internet, we didn't have Facebook, we didn't have up groups. There probably was some kind of real estate group that, but you know, how do you, you know, I didn't know how to find them. I just, you know, just, I didn't know today, it's so easy to get connected. So I'd say, make the decision get started, but surround yourself, find somebody a group, or, you know, a mentor. What I have found is that, you know, I've been a mentor now to mentees in the same regard that I wish I would've had, where I have deployed capital.   David Phelps 02:24:32 And you do the same thing when you deploy capital with somebody who is, you know, boots on the ground investor, rehabbing houses to fix and flip or hold as a portfolio asset. They they'll, they'll ask you for advice. I mean, the smart ones will, the smart ones say, and of course you're not gonna loan money, unless you think the, the, the business plan is, is relevant, but no, you're there not only to deploy capital with them and help them with that aspect. But also you've got all these years of advice. Why not access that while you're building your plan?   Wendy Sweet 02:25:02 Exactly. That's, you know, that's what I try to tell my kids too. I try to remind them, remember, I've got 61 years of experience. So I, through all that stuff that you're, you're trying to avoid,   Bill Fairman 02:25:15 That's what you're thinking. You're just old.   Wendy Sweet 02:25:17 Yeah, that's true. That's   Bill Fairman 02:25:19 True. I don't need to be listening to them.   Wendy Sweet 02:25:21 It's it is tough. I often say I was never as smart as I was when I was 21. That's   David Phelps 02:25:27 All downhill.   Bill Fairman 02:25:28 Well, David, let's talk about your book inflation. I, I want to plug that, but I also, there's another one I wanna plug. As soon as we're done here, we'll have the link to the Amazon in the chat as well. Let, let's talk about your newest book first.   David Phelps 02:25:47 Yeah. The inflation book we published in April this year, I sort of saw the T leaves of what was probably coming. And so we got, got with it and wrote this book to give people a sense of what, what does, what does this mean in a time of inflation, which we haven't seen in 40 years, really, since the seventies in early eighties, did we not have inflation of this level? And what does that mean to the financial markets? What does that mean for people's retirement plans? What does that mean for, you know, all the financial plans that people put in place, there's gotta be some changes there. And so the book creates a lot of the economic backdrops of how, how this came to be, how we got to here. But most importantly, like what do we do going forward as our own financial advocates? So the books there, thanks for putting the link up.   Bill Fairman 02:26:29 Oh, absolutely. The other one, since we're talking about financial freedom, I want to talk about own your freedom. It's another book that is fairly recent. And you want to talk a little bit about that as well?   David Phelps 02:26:42 Yeah. Own your freedom. I co-wrote with one of my mentors, Dan Kennedy, who has, who I've spent a lot of time with. And so we co-wrote the book we had. We, we outlined it. So didn't really be a lot of the fundamentals of how, how money works, the mindset of money. We each wrote separate chapters, but they, they, they, they cross pollinate each other. So you get to hear two different voices, different experiences. I'm very pleased with that book, cuz I think at a, at a very high level, it has something in there for everybody, no matter where you are in your life, what age you are, there's concepts that it's really a book of concepts. I'm not giving specific strategies about how to go out and you know, flip houses or you know how to invest your money per se. But it's a lot of key concepts that I, I wanna make it an evergreen book that would be kind of a, a really a staple in somebody's library if they chose to, to utilize it.   Wendy Sweet 02:27:35 Well. And then your other book too, I have to talk about this. When we talked about the next gen and what you would say to your younger self, what's the book that is good for your teens and young twenties,   Bill Fairman 02:27:49 The apprentice   Wendy Sweet 02:27:50 Model. Yeah. The apprentice model. That one, I, I gave that to both my kids and both my   David Phelps 02:27:57 Sons. Well, yeah, yeah. Oh, thank you. There. I was looking for it. I should be on a shelf here somewhere close by. Shouldn't have funny how that works. The apprentice model. Yeah. That's a book I wrote a few years ago really to, to focus on next gen younger generation. And, and you know, some of the concepts we talked about today about, about, you know, getting started early and realizing there's different pathways to get to freedom. You don't have to get degree after degree after degree in college or graduate school. It's not, it's not a requirement at all. Now. I'm not saying it's not something for some people to do, but I think there's better pass. And the defense model is really based on a mentor, mentee experience, find people in business or investing or real estate that, that are good people that you value who they are as a person and their values and that they also have some business or investing sense. Just go work for them. I don't care what you make. You know, that's not the important part. It's just go work for 'em for six months a year, get the experience. It's the best thing you can do as a young person before you get out and get kind of roped into to a, a career path, you'll have a much bigger exposure to the world and really what's important for you.   Wendy Sweet 02:29:07 Yeah,   Bill Fairman 02:29:08 Well frankly, that's the way the trades all used to work. Yeah.   Wendy Sweet 02:29:12 The   Bill Fairman 02:29:13 That's why we have a shortage. Tradesmen is because you don't have that apprentice model anymore. And the guidance counselors at all, the high schools pushed you into a four year college and it's   Wendy Sweet 02:29:26 Almost like they get a kickback, isn't it?   Bill Fairman 02:29:28 Well, here, here's the thing. If, if you are, if you have any business acumen at all and you follow an apprenticeship model yourself, you can be in business for five years and then open up your own place and make tons of money   Wendy Sweet 02:29:45 Easily and be happy in what you   Bill Fairman 02:29:46 Do. Yes, absolutely.   David Phelps 02:29:48 David. So yeah. There's I was gonna say there's, there's, there's so many skill outside of a technical expertise skillsets that are transferable sales, communication, marketing, just understanding the operations of the business. Anybody can take those degree or no degree and go run with that. And I think those are important skill sets that, that are missing badly today.   Wendy Sweet 03:30:09 Absolutely. Absolutely.   Bill Fairman 03:30:11 Listen, I, I appreciate you being so gracious. Yes. Thank you. Coming on and spending all this extra time with us,   Wendy Sweet 03:30:19 It's been great.   Bill Fairman 03:30:20 It's been an awesome show. I know it's be beneficial to a lot of folks out there and can't wait to see you in October. Yeah. Weeks, but it's a little more in a few weeks, but it's close enough.   David Phelps 03:30:34 Well, I'm back to the green room, the beach and the Mar   Bill Fairman 03:30:40 Food going now.   Wendy Sweet 03:30:42 Are you gonna be at quest? You're gonna be at the quest event.   David Phelps 03:30:44 I'm not gonna be able to make that one. I can't.   Wendy Sweet 03:30:46 Oh, I hate we're gonna miss you there. Yeah,   Bill Fairman 03:30:49 Well it's okay. It's hot and humid.   Wendy Sweet 03:30:50 That's right. Well who lives there?   David Phelps 03:30:53 Not the hotel, the hotel.   Bill Fairman 03:30:59 So anyway, thanks again for joining us. Thank you, Dave folks.   David Phelps 03:31:04 Good. See you.   Wendy Sweet 03:31:11 Yeah.   Bill Fairman 03:31:11 Okay. So I forgot something, which is our question of the week. What is your financial focus? Priorities values is your money management in line with all of that. And you can leave a comment in the comment section and we will get to the answers on the following show. Since we're doing all these in advance, it's hard for me to keep up with them. Anything else we need to put?   Wendy Sweet 03:31:40 Yeah. Just say, bye.   Bill Fairman 03:31:41 Okay, bye. So, oh, we're back. They're gonna mess with me now. Thank you so much for joining us on the real estate investor show hard money for real estate investors. We are Carolina capital management, private lenders in the Southeast for real estate professionals. If you have a project you'd like us to look at, go to Carolina, hard money.com and click on the apply. Now tab, if you are a passive investor looking for passive returns, click on the accredited investor tab. Don't forget the like share subscribe, hit the bell. And don't forget about Wednesdays with Wendy.  

Bill Fairman 00:00:01 Hi folks greetings today. We're gonna talk about your burn rate. What's important about it. Does it change over time? We will get that and more with our special guest, Dr. David Phelps, right after this Wendy's Hasling me because I wasn't smiling enough. So I'm just gonna talk like this, the rest of the way. Greetings. I am bill Fairman Wendy sweet in the middle and Jonathan Davis, over there to the left. We are Carolina capital management. And thank you so much for joining us on the real estate investor show hard money for real estate investors. Like I said, we are Carolina capital management. We are a private lender in the Southeast for real estate professionals.   Wendy Sweet 00:01:04 If you're unprofessional, won't, don't call us.   Bill Fairman 00:01:07 If, if you'd like us to take a look at one of your projects, go to Carolina, hard money.com and click on the apply. Now tab, if you're a passive investor, looking for passive returns, click on the accredited investor tab, don't forget to like share, subscribe and hit the bell. And don't forget about Wednesdays with Wendy, Wendy donates 30 minutes per person on Wednesdays to talk about anything real estate related or faith. If you'd like to discuss faith, she's really good about that. She only makes fun of you sometimes. Just kidding. She's always booked up though. So here's the link to get on her calendar.   Wendy Sweet 00:01:58 Awesome. And what was really cool? The last Wednesday happened to fall on a couple months previous, I had done a special talking event with some of the kids from freedom founders. Oh cool. And I'm saying this cuz of course David is with us today and my calls all last Wednesday was all freedom. Founder, children of freedom, founder people. It was really cool.   Bill Fairman 00:02:24 Nice. Yeah. Well we do have a question and comment section on the right hand side of your screen or the bottom, depending on the platform you're viewing us from, you can also get all the links that we're sharing over there as well. So we have, we don't have any, there's nothing breaking this week, right?   Wendy Sweet 00:02:43 Broken. We had a little   Jonathan Davis 00:02:44 Bit of commentary in before we go into the burner. Yeah.   Bill Fairman 00:02:48 Okay. Well, in that case, I'm gonna surprise SHA cuz I said we had, no,   Wendy Sweet 00:02:53 You should ask your cohos breaking   Bill Fairman 00:02:55 News. So I'm gonna say I'm giving I'm talking over longer so she can have plenty of time to queue up the breaking news. When will it end? I feel like I'm on a mission and possible said anyway that awesome. Thank you SHA for jumping right in there and taking over. So yeah,   Jonathan Davis 00:03:35 Well we're, we're gonna talk about burn Ray, which we're gonna let Dr. David Phillips explain exactly what that is, but kind of to build into that, you know, just last month we received reports that consumer spending and consumer debt rather is a lot higher than it has been in fact way higher in, in 20 years. Yeah. People   Bill Fairman 00:03:56 Living off their credit card.   Jonathan Davis 00:03:57 Yeah. Well that's, that's the thing. It, I think year over year rose a hundred billion dollars in credit card usage. Wow. A hundred billion dollars. So that is more people stacking up consumer debt and we can let Dr. David Phelps tell you how that'll affect your burn rate. Also we're seeing, you know, slowing down in the appreciation of homes, we're continu, I think we're four or six, four to six months of continual slow slowing down in that, which is good. We needed it. It's getting to normal. It's down to 18 now. Yeah. Woo. That's great. Down to 18, you're seeing more, you know, more inventory lingering on the market. Hopefully, you know, people will lower prices and we can start moving things and get a little bit back to normal, whatever that means for the time period that we're in. The only thing that is still rising are rents. Right? They are. Thank you Lord. Going up. Yes. That's great. Which it, it was, the report came out for the highest rent appreciation, I suppose, in the nation and by percentage. Right. Do you know what city that was? Hopefully Charlotte, no, no Lexington, Kentucky where I'm from really. Wow. Interesting is the highest I got, you know,   Bill Fairman 00:05:21 Because it started off so low   Jonathan Davis 00:05:22 It's exactly. Yeah, exactly. Yeah. Lexington, Kentucky is number one, followed up by Corpus Christi in Texas. Now on the list on the top declining markets in rents are Irving, Texas and Plano, Texas, really? And number four and five. Huh? Chicago's number three. Huh? Yeah. But interesting. So, you know, Corpus Christi, Cincinnati and Columbus, Ohio. So basically what you're seeing is affordable places that have been historically affordable yeah. Are rising again because people are seeking out that affordability. Yeah. That makes sense. Yeah. That makes sense. You know what I   Wendy Sweet 00:05:57 Thought thought was really interesting too. You were talking about how, how sharply consumer debt has increased when, you know, two years ago, you know, COVID COVID time, you know, and, and as a, a, a friend of mine, who's speaking on sunrises tomorrow, Jordan Nabb, he's an attorney. He said when the helicopter was flying around dropping money on everybody, the not only was consumer debt really low, but savings was really, really high.   Jonathan Davis 00:06:28 I, I didn't put the chart up and I'll, I'll make it available to everyone. But yeah, you can see in 2020, when you know, extra surplus money was made available to everyone, it was a negative 17% year over year. Wow. Wow. Which means people just crush their debt down just, and then now since then we're up at, oh gosh, where we're at. Nope. 12.6%.   Wendy Sweet 00:06:53 Wow. Year over   Bill Fairman 00:06:54 Years. And it's the fed continues to raise rates. Then those cards are costing you even   Wendy Sweet 00:06:59 More that's right. That that's right. That's right. Exciting news.   Bill Fairman 00:07:03 O okay. So that was some great breaking news.   Jonathan Davis 00:07:05 Hey, you know, builds for Mr. David fell. Our Dr. David helps Rather's   Bill Fairman 00:07:10 For sure. David's gonna get bored sitting over here in the green room. So I'm gonna bring him on in just a second, but we have a special visual treat for him first that that's where we all wanna be right now, David,   Wendy Sweet 00:07:30 That you   Bill Fairman 00:07:32 And   David Phelps 00:07:37 The room looked like God, it was close. It was close. So thank you for that. Thank you for having a nice place for me to rest and relax before I on your,   Bill Fairman 00:07:49 You left some snacks for others later   David Phelps 00:07:52 With a little umbrella. Yeah. It's all there.   Bill Fairman 00:07:56 So, so our, our first burning question for you is what is a burn rate,   David Phelps 00:08:04 Burn rate? Yeah. That's, that's overhead, that's a cost of operations. And that can go for one's personal life, personal overhead, personal burn rate. Certainly if you have a business that you run, you've got an overhead or a burn rate in your business. And you know, within that, there's fixed in variable costs, but we all need to know what our burn rates are, you know, personal line business, because, well, I'm probably leading the witness here, but burn rate burn. Rate's very important. I'll let you get, let you take 'em there. I'm not interviewing you. You're interviewing me. So I'll give it back to   Bill Fairman 00:08:33 You. No, listen, we love that. You can take a question and just go with it. We always love the interviews that we have with folks that will go yes.   Wendy Sweet 00:08:42 That's it.   Bill Fairman 00:08:45 Or no.   Jonathan Davis 00:08:48 So   David Phelps 00:08:49 You're gonna give like essay questions. Is that what you're saying?   Wendy Sweet 00:08:53 Your own words? My   Jonathan Davis 00:08:54 Own words.   Bill Fairman 00:08:56 So what's, what's the importance of getting your burn rate and we'll say under control or at least knowing what it is.   Jonathan Davis 00:09:03 Yeah. What does it even mean? It's just, what does it mean, basil?   David Phelps 00:09:07 So, so, so I'm, I'm gonna focus on the personal side. Remember there's burn rate for personal and business. Both are important. I'm gonna focus on the personal side burn. Rate's important because I talk a lot as we all do, because we love real estate. As a vehicle, as an investment real estate provides, you know, cash flow. So if I want to gain freedom in my life, then I need to somewhere start replacing my burn, my personal burn rate with something else that doesn't require me to go to work now, nothing wrong with going to work. We all start there. We need to work. We get an education. We get training in something, get a career, or be an employee somewhere. We, we earn money to pay for our burn rate. But if our burn rate starts to escalate over time, which often it does, because the idea is is you travel through life, your education you're experience, your skillsets, allow you to earn more money.   David Phelps 00:09:56 That's a good thing. But what happens to too many people is they let the lifestyle burn rate also escalate. Now I'm not saying it's bad to aspire to have a, a nicer home, bigger home, maybe a better car than which you started with when you were just getting outta school, which that's nothing wrong with that. But if we focus on what's my real burn rate and how quickly here's the question, how quickly with a plan in place, could I start to replace the cash flow? The income required to fund my burn rate with asset based income? How quickly could I do that? That's what I call a freedom number. And that's why it's important to understand what's my burn rate. Cause we don't have any goals set on that. It can continue to escalate forever. And that's where people get on that treadmill. The treadmill of I earn more, earn more.   David Phelps 01:10:44 It's all good. It's all good. I'm living out a bigger life, a nice life, great life provide for my family, but I'm on this treadmill and where do I ever get up? Get the treadmill even a little bit, even drop the incline a little bit. Right? I mean, you guys go to the gym, you know what I'm talking about? You know, at some point you just can't keep that incline up here, running it in higher RPMs. You've gotta drop it down. Well, in real life, once you're on that trim, it's, it's hard to turn it back down again.   Jonathan Davis 01:11:09 Yeah, yeah. You know, it's makes me think of hamster on the wheel. I mean, yeah. That will, can only go as long as that hamster's running and once you step off, it's done. So, you know, to kind of illustrate the point, you know, we need something that's moving that wheel even when we're not on it.   Bill Fairman 01:11:27 And I don't wanna lead the question, but I'm going to already know the answer, but I'm gonna, I'm gonna ask it anyway.   Jonathan Davis 01:11:39 You know, I've found that when people say that most often they don't know the answer.   Bill Fairman 01:11:48 Is it easier to lower the burn rate than it is to increase the income?   David Phelps 01:11:54 I think it's easier to increase the income personally. I, now you can do both. You can do both. And I think people should do some of both to look hard at the burn rate and say, where could I potentially cut back? But I would say it's easier or probably most focused should go on increasing the income, the cash flow.   Bill Fairman 01:12:15 And, and, and that's something that, you know, we all want to do is take that active income and turn it into passive income. And we're gonna talk about that on our next week's show is about our freedom number and how to get there and the best way to get there. And the, in my opinion, the, the, the best class of assets to get there with.   Jonathan Davis 01:12:37 Can I jump in real quick? Absolutely. So, you know, when you said increasing the income is the easier path, I would, I would probably assume that most people watching this would've thought decreasing your expenses, cuz it kind of like fits into that. Like, you know, Dave Ramsey mindset, like, like to be wealthier, to be successful, to be free, there has to be suffering involved. Like you have to, you have to take away. And I love that you came in and said, no, like it's easier to add income, right? I mean, when you, well,   David Phelps 01:13:12 We're, we're all about suffering here. Are we not? We're we're suffering each other right now. No, we're not. We're enjoying this, but, but yes, Jonathan look, there's, there's a sacrifice period. Unless you were born with a silver spin in your mouth or a trust fund baby, there is a sacrifice period. We have to go through it. Working hard, being dedicated, persevering at whatever is in front of us, whatever our goals are, task career path business. Yes. We have to sacrifice to an extent. So if you wanna call that suffering, maybe there's a little bit of suffering. I think we all had jobs, you know, as we were growing up that maybe you look back, you know, that was suffering, but it was a good for our character building. All right. So get beyond the suffering though. And let's get to a place where we can be more strategic and leverage our experience, leverage collaboration with other people, which is a lot what we're doing right now today.   David Phelps 01:13:59 What you, you all do so well, there's ways to enhance your income, even if it's it's part of your business plan or also as we'll talk about, I'm sure on the, on the passive side, you can do both more easily than you can on the quote suffering side. So I don't want people to think about suffering, but yes, I think I talked to young people and, and Wendy, you were talking about, I'm so glad you were able to connect with, with our, our, our young next, next gen from freedom founders and sewing to them. You know, if I could go back and, and talk to my younger self or talk to these kids as we do, it's, it's like, don't lift your lifestyle escalate too quickly. You know, stay in that mode where, you know, you, you've had to kind of, you know, eek it out and, and, and don't ramp it up.   David Phelps 01:14:46 I was talking to a, a doctor just this last week, you know, he, he does quite well, but he's, he's kept his burn rate low. And I said, I said, how have you been able to do that? Because most people, as they escalate, their income goes right up. And he said, you know, my wife and I just got used to the fact that when we got outta school, we had student loans to pay off. And that required us to, you know, to live modestly. And he said, even after we got our student loans paid off, we decided to know happiness and joy doesn't come from necessarily elevating our, our lifestyle. So we've kept our burn rate low. Well, that doctor today has, has, has a son and a daughter ages four and eight. So he's, he's under 40 just giving you a little bit of character. He's under 40. And, and he's got a lot of flexibility in his life. A lot of flexibility to, to, to do different things. Even with his technical expertise in dentistry, he does different things. He's not, he's not anchored down to one schedule, one place to go, you know, four or five days a week, like so many are. And so he's built that freedom and by keeping his burn rate modest,   Wendy Sweet 01:15:45 You know, it's funny when you're talking about that, it really reminds me of my two sons. I have a 19 year old son and a 21 year old son. And they are like rich, but dad, poor dad, you know, one is, is, you know, saves his money. He works hard. He, he, he almost bought himself a boat and he asked my opinion, mom, should I do this? When I I'm really interested in buying a house, that's my big goal. And he's 19. And I said, well, how does buying a boat help you get a house? And he said, that's all I needed to hear. And he walked away from that desire. Now had I said that to my, well, my 21 year old wouldn't have even asked me, but you know, had I said that to him, he'd be flying around in a boat. Yeah.   Wendy Sweet 01:16:35 You know, as fast as he could on the lake. So, oh, I was getting ready to say, that's, that's pretty incredible that he could fly on the boat. Yeah. It's an near boat, but it's, it's, you know, I loved when we were at your last freedom founders event and you were talking about burn rate and you, you, with this group, you went through all the things you really need to look at. And question, is this something you really need now? Do you really need the big house? You know, do you really need the fanciest? You went down that list. And if you could talk just a little bit about just really giving people an idea of things they really should be looking at to decrease that burn rate.   David Phelps 01:17:22 Well, house living quarters is certainly one of the big ones, whether you rent or, or own, you know, the larger, the square footage, the more utility cost you have just to heat and cool, right. Property taxes are higher. Insurance is higher, just maintaining a certain square footage, interior and exterior has a cost factor to it. So even if you have a free and clear house, which is a great goal to have, but if it's large, then it's gonna require a certain overhead or a burn rate just to sustain that large capacity house. If you rent, I mean, same thing. You're gonna pay proportionately for the size. So do you need all of that? Right? I think so that that's a big one. I think other aspects would be. And I, I just look at vehicles, I, for me, a vehicle or car is just something that will securely and reliably get me, you know, from here to there where whatever my, my transportation needs are, I'm not judging people who want to have nice cars at all.   David Phelps 01:18:20 I'm just saying, it's just look at, I, I just always buy used cars and I just drive. 'em a lot of miles. That's just that's me. It is. It's like, it's almost like a badge of honor for me. And I think I got that from my dad. My dad was the same way. So like father, like son, you know, I just, I just drive. But you know, I just feel good about that because going back to your point, Wendy, about your two sons, I've always looked at the additional discretionary dollars I have by not having those, you know, inside of my burn rate, having to put fund my lifestyle. If I can cut that back, I've got more dollars I can put into investments. The ones I like that will produce, you know, additional income. So when I do want to enjoy something more, like rather than buy a boat, I would just tell your son rent, go rent the boat.   David Phelps 01:19:03 You can rent a really nice boat for a weekend or a week or whatever you wanna do. And then just give it back. See, I think that's the way to do those nice things. People like to have vacation homes again, not judging, but I think it's better personally to, well, you'll like this Wendy rent, Airbnb, you go where you want to go rent the air and B for in the weekend, the week, whatever you can go to different places and people, oh, well you you're just wasting your money. No, actually I didn't have the extra expenses, the, and, and the hard costs and, and the mortgage and everything else on that. Airbnb. Now, if you run it as a business, different ballgame, but I'm just saying people that like a vacation home, why don't you just get the extra money, invest it in something, an asset they'll produce. And then you can go have, have vacations all over the place when you decide to do it.   Wendy Sweet 01:19:46 That's right. And if you go to sweet spots, stay vacations, you can find any kind shameless blog shameless.   David Phelps 01:19:56 I hear that to you just about right. Was that about the right letter? Yes.   Wendy Sweet 01:19:59 Thank you. The other thing too, I, I think little things make a difference as well. And people don't think about this. How much are you really paying for your cable TV that you really need it? Like, even, even us as a company, every time we have our financial meeting, once a month, we still go through all of our credit card statements. We look at all the auto, automatic payments that are being made here and there, those little things, the first time we ever did it, we saved $16,000.   Jonathan Davis 02:20:28 And that was nothing big. That was all just like little, little things here and there that were just tacked on. I mean, we, you know, all the time it   Bill Fairman 02:20:36 Was outdated. We weren't using it. Like we should have it wasn't efficient,   Jonathan Davis 02:20:40 But I mean, David hit a, a great point and, and I don't want it to be lost on people. It's like, you know, your, your burn rate can increase, but do it in conjunction with your assets producing income increasing. Absolutely because that, that's the, that's the first piece, get the assets producing. Then you can increase over here, cuz these assets are, are supply that which is counter to most Americans who've added a hundred million or a hundred billion in instant gratification. Yeah. In instant debt.   David Phelps 02:21:14 Yeah. To me, to me, to me having asset based income quote, passive income in, in the right investments is, is like the best insurance policy. Sure. When, when I have the benefit and the blessing to, to work with couples and again, these are, you know, educated couples, typically one, one of the others, a professional practice owner, oftentimes not always, but oftentimes the spouse who, who is the spouse, who is the matriarch, the then I call the, typically the nurturer, the protector of the family. And, and they do a great job of that. We have to hand it to the, the moms and our wives who, who, who they function at much higher degree than we do typically in that regard. So they look at everything from the standpoint of, of, you know, investment or expense and most things are in expense to them. Cuz they're trying to again, protect the family, protect the family.   David Phelps 02:22:04 What I realize is, is in talking to a lot of these couples, the high income earner who goes out and you know, works, works outside the home is, is thinking well, you know, sky's the limit, you know, I can, you know, keep earning and keep building and she's thinking security, security, okay. Well guess we have insurance. We have life insurance and disability insurance. And, but that's not enough. I want to know if something happened to his or her income capabilities, what's there besides an insurance policy that would keep some kind of cash flow coming. And what I realized is when I showed them that you don't need to be able to just replace hi his or her income, if you can just replace your burn, rate your lifestyle burn rate with that asset based income, that's like the best security in the world because now, and, and I see the, the stress come out of their faces. They don't have to understand all the financial machinations of how real estate works and all that. They just wanna say, you know, are there checks in the mail or ACH, you know, that are coming in, that I can actually see and they're coming from not his or her work it's coming from this investment that we made and that's producing and sustainable is predictable. That's what, that's what so many of the women I see that are these protectors and nurturers, they wanna understand that part.   Bill Fairman 02:23:16 Right. Right. Well, I, I did wanna touch on one little thing before we wrap up this segment, you still have a motion that gets involved with that home that you've been in for probably 20, 30 years raised your kids in even, you know, if it's free and clear and, and in my opinion, that's, that's a way to downsize take that extra money and use it to invest in something that is gonna create some cash flow for you. But you, you know, you still have that emotion. When I first started originating mortgage loans, as soon as the wife started talking and I'm sorry, it's usually the wife. I don't mean to, yeah, don't be a bigot. But   Wendy Sweet 02:23:59 Usually   Bill Fairman 02:23:59 When they're already talking to me about, you know, they've picked up or picked the curtains for certain rooms, I knew this transaction was going through. Yeah. Because it's about the emotion. How do you overcome that emotion or, or do you,   David Phelps 02:24:13 Well, I don't think, I don't think you overcome it. I think, I think that that, that plays into part of everybody's lives to some extent. And so if you're talking about the, the sentiment of a family home, that you've raised all your kids in, but look, I think we have to, at some point, let go, you can, you know, you can always take pictures, I take pictures,   Wendy Sweet 02:24:36 Take pictures.   David Phelps 02:24:37 And, and then when you get together at Wendy's Airbnb and you call this great memories you had there, but yes, John effectively, you got the money working better for you. So   Bill Fairman 02:24:50 Yeah. You remember when aunt SU kept tripping over that step? You wouldn't fix there.   David Phelps 02:25:00 Memories, bad memories there, the book you don't keep those.   Bill Fairman 02:25:05 That's   Wendy Sweet 02:25:06 Awesome. We wanna also bring up his book, right? Yeah. Let's talk about your book, David.   David Phelps 02:25:11 Sure. All right. Well, I, I published the book. I published the book get's behind me, but I, I actually have a yeah. Copy there. And I think it's there's so it's inflation inflation, the silent retirement killer. You all were talking about a little bit on the front end of, of the opening of the show today is that yeah, we are in different times than this country is seen in really four decades. And we're seeing, you know, heavy headwinds of inflation and what the fed is trying to do to offset that and what, what that may cause as a, as a down line situation with recession correction. So we just, yeah, we, we put together this book and, and it's a there's there's history and, and fundamentals and economics in it, but there's also, you know, what you can do. I mean, part of this show today is like what people can do to protect and hedge themself against inflation, the high costs, and then protect against, you know, downside risk protection in, in the markets. I'm talking about like financial markets that are very, very volatile typically. And that's why we like real estate because there's much less volatility in real estate, much more predictable.   Bill Fairman 02:26:13 So you can, we   David Phelps 02:26:14 Got, you can pick. Yeah. You can pick that book up off of Amazon and thank you for putting the   Bill Fairman 02:26:20 Oh, absolutely. Absolutely. We, we have a, a direct link to the page over there in the chat and we will, well, that will stay on there so you can just click it on and go right to it. David has a lot of books and he does a really nice job of explain, taking the complicated and making it simple to understand. And   David Phelps 02:26:39 I like, I like the idea of, of how to outwit the fed that's Jerome Powell. Don't you wanna, everybody wanna outwit Jerome Powell? I kinda do. I wanna outwit him. So we have a prior attack on how to outwit Jerome Powell. I'm not, I'm not saying he's a bad guy. I'm just saying let's just outwit him. Right. He's   Wendy Sweet 02:26:56 Shouldn't be too hard.   Jonathan Davis 02:26:57 And   Bill Fairman 02:26:57 I may just comment last week, the real estate space in the right space. It it's a defensive play that continues to grow. So you can still get growth over time. You get, you can get some tax benefits as well. And, and it's still a, a defensive play. Although if you read the headlines and they talk about the real estate crashes, those are the people that aren't investing.   David Phelps 02:27:21 Yeah. Well, headlines are click baked. I mean, they just, they, they have to always make hype everything. Everything, everything is is, is extreme, extreme, right. Everything today. And so yes, if you're, don't, don't watch that the, we know from our experience decades, decades of investing in real estate, that real estate is much less fault. Yes, it is affected, but we there's lag time. There's plenty of time to position yourself the right way. And, and that's what I love about real estate. I don't have to be a trader in fact, watch the market every day and see what's happening. Go, oh my gosh. You know, I just lost 20% on my, my account. Nope. That didn't happen in my real estate. Nope. Didn't happen. Right.   Wendy Sweet 02:27:57 That's right. That's   Jonathan Davis 02:27:58 That's, that's the point I was gonna bring in the stocks. You worry about actual principle loss often. And in real estate, you very rarely have to worry about principal loss. Right? Right.   Bill Fairman 02:28:09 David, thank you for being so gracious and being on our show. I wanna mention that David will be on next week's show. So if you see all of us in the same close,   David Phelps 02:28:18 Because   Bill Fairman 02:28:19 We're recording this right after this one,   David Phelps 02:28:22 Just one question. Do I have to go back and sleep in the green room for the next week?   Jonathan Davis 02:28:26 Yeah. You   Wendy Sweet 02:28:27 Hope you send yourself some green. M and Ms.   Bill Fairman 02:28:32 Thank you so much, David. Thank   David Phelps 02:28:34 You guys.   Bill Fairman 02:28:35 Jonathan, would you like to ask the question of the   Jonathan Davis 02:28:38 Week? The question of the week is this one right here? That's right.   Bill Fairman 02:28:41 We're fancy have Monica   Wendy Sweet 02:28:48 It's right there on the screen.   Bill Fairman 02:28:49 Scott told me to pause.   Jonathan Davis 02:28:50 I, that picture looks like I have way more white hair than I don't. I dunno. Makes you look smarter. Okay. All right. All right. So the question of the we guys we want to know is what is like, well, I mean, money mindset is a precursor to spinning behavior. What is your money mindset right now? Is it positive? How do you think about and relate to money? We wanna know. I mean, this on the heels of talking about burn rate, what you can do to, you know, increase income. Also consumer spending is higher than it's ever been in 21 years. So just kinda wanna know what your mindset is. And   Wendy Sweet 02:29:23 You can answer right here on our chat. Yeah. Whether it's live or not,   Jonathan Davis 02:29:26 You can below side, I don't know. Wherever it is on your, there might be a be you ring. I don't know.   Bill Fairman 02:29:33 And yes, it's an essay question because it's like don't   Wendy Sweet 02:29:36 Pal question.   Jonathan Davis 02:29:37 Yeah. We won't accept answers less than two paragraphs.   Bill Fairman 02:29:41 We upcoming quest and you, you can still get 30% off by using the code. Fairman 30, which is also over in the chat bar. Yeah. It's a great way to network with folks and learn all about ways to invest your self-directed IRA who see you there.   Jonathan Davis 03:30:18 One of my fun personal games is to count the second I, that it takes you to realize that you've been muted and something else is playing, but you're still talking.   Bill Fairman 03:30:28 Listen, I never stopped talking three. Okay. Thank you so much for joining us on the real estate show hard money for real estate investors. We are Carolina capital management, private lenders in the Southeast for real estate professionals. Like I told, look at a project of yours, go to Carolina, hardman.com and click on the apply. Now tab, if you're a passive investor, looking for passive returns and click on the accredited investor tab. Wait a minute. Okay. Don't forget. Delight, share, subscribe, and hit the bell. And don't forget about Wednesdays with Wendy C next week.   speaker 1 03:31:14 Hey.  

Jonathan Davis 00:00:01 Hi everyone today we're discussing risk mitigation. And what are some of the risks that you may not be thinking about while investing right after this?   Jonathan Davis 00:00:35 So I'm stepping in for a bill today. He usually gets through the, the whole intro, but just, you know, bear with me here we are. This is the real estate investor show. We are Carolina capital management. We are investors and lenders for the real estate space. In the Southeast. We are private lenders for real estate professionals. And if you would like to invest into real estate or get a loan, go to Carolina, hard money.com and click on the apply. Now tab, we also have a fund for credited investors. So if you are interested in receiving passive returns and getting outsized passive returns, then go to the accredited investor tab. Don't forget to like share, subscribe and hit the bail. And then also Wednesday with Wendy,   Wendy Sweet 00:01:42 They   Jonathan Davis 00:01:43 Were quick. I like it. Yeah. I know Wednesday with Wendy, Wendy donates all of her Wednesdays to help you in anything to do with real estate or business. She's a great resource. She's booked out usually several months in advance, but go ahead and it's a Calendarly or it's a HubSpot meet up. There you go. Just click on that link and you can schedule a time to talk with her and, you know, just kind of dive into everything that is business and real estate.   Wendy Sweet 00:02:10 You know, what was really cool this past Wednesday, which was yesterday as far far as I know, I do five calls a day and all five calls were faith-based. You know, how do you balance your business and your relationship with Christ? It was majorly cool that all five people, that was their intention. So it was kind of a Jesus best. It was neat.   Jonathan Davis 00:02:37 That's awesome. That is awesome. Quick though. Before we bring on our guest today, I do want to just some quick news,   Wendy Sweet 00:03:08 We're giving CNN a run for their money. Aren't we,   Jonathan Davis 00:03:12 I know right before I get into the news, I just have to say how concise and moving forward this show seems to be compared to bill.   Wendy Sweet 00:03:24 What do you mean?   Jonathan Davis 00:03:25 Yeah, no. So, so I, I do wanna discuss a couple things. The first being, you know, mortgage applications, mortgage originations, the volume of mortgage is at a 22 year low, not, you know, anything groundbreaking. We know that when the rates have, you know, doubled in the last, you know, year and you know, housing prices haven't really come down. Yeah. It's, it's hard to afford a house and volumes will go down. So that's not terribly surprising, but it is a 22 year low. The other piece is BlackRock, I believe has just now finalized their 30 billion fund to take advantage of the upcoming months and years of what they anticipate to be a lot of opportunity in the real estate space to buy at, you know, high volume to get great discounts. Mm. So that is a signal I think, to everyone else, it's like be patient, keep some powder, dry, do your due diligence and also understand risk mitigation. Understand it. So without further ado, when we wanna talk about what is risk mitigation and what can we do about that? I want to bring on Rob Napolitano. He's a friend of ours and he has been working in the NPL space, which is the non-performing loan space, the insurance space, you know, gosh, pretty much everything that has to do with, with real estate. So I wanna go ahead and bring Rob on,   Rob Napolitano 00:05:10 Hey guys. Thanks Wendy. Jonathan. Thanks for having me. I really appreciate the, the time we're spending together today.   Jonathan Davis 00:05:18 Absolutely. No, we appreciate you being on. Yeah,   Wendy Sweet 00:05:22 Billy's listening. So we can't make fun of him. We highly respect him. We love him. He's my brother. I have to love him.   Rob Napolitano 00:05:31 What, what are the subtitles coming across saying? Don't believe anything Wendy is saying I'm   Jonathan Davis 00:05:41 Oh yeah. That's good. Well, again, thanks for, for coming on. I you've just recently made a, a big move from the Northeast down to the Southeast, right? That's   Wendy Sweet 00:05:53 Correct. To the dark side.   Rob Napolitano 00:05:54 That's correct. Yeah. I, I, I, I not only am a man of many words, but I'm also a man of action and I voted this year with my feet and picked up my family and moved out of the Northeast where I was just tired of the, the loss of freedom that I was experiencing. Mm. Yeah. So yeah, I'm   Wendy Sweet 00:06:17 Outta there. You less people there.   Jonathan Davis 00:06:21 Excellent. Excellent. Yeah. Well, we're glad to have you down in the Southeast, you are one of the many who have, have made that move smartly. We like to think, but, but now   Wendy Sweet 00:06:31 We, and you're like really a neighbor, like you're in our town and stuff like that. That's really cool. It's good to have you down here.   Rob Napolitano 00:06:37 Yeah. I'm not officially anyone. Should I start talking and saying y'all, but I haven't gotten   Wendy Sweet 00:06:41 Her yet. That too shall come. Or it'll   Jonathan Davis 00:06:44 It'll sooner than you think   Wendy Sweet 00:06:46 Sooner. Bless your heart. Yeah.   Jonathan Davis 00:06:50 Well, I, I, I, I want to give you an opportunity, Rob, to kind of tell everyone a little bit about your, your background, how you got into the space and where you are now, before we start getting into, into the meat of what we wanna talk about.   Rob Napolitano 00:07:05 Yeah. For great. And I, I appreciate you having me come on and talking about this, but I wanna say one thing first, what the hell is risk mitigation? Risk mitigation is the term that common people don't use. That's what big banks and, and people use. But although we do it every day and part of my story talks about risk mitigation and what risk mitigation is, is just keeping what's ours, right? It's what we accumulate. What's ours. And then kicking somebody's butt. If they try to take it, it's all it is. And coming from the Northeast of New Jersey, you know, actually that's part of where my story starts. I was always that kid in the, in, in, in grammar school, that was always in detention because I was always caught in a fight in the schoolyard because the bully was always beaten up on the kid that couldn't defend themselves.   Rob Napolitano 00:07:46 So I ended up always being, you know, getting inside of a fight, defending somebody else who couldn't defend themselves. And there's some risk mitigation, right? Like me and it, it, it ended up, it ended up, you know, maturing throughout my career. As I started in real estate investing many years ago, 20 something years, I've been investing in real estate. And I went through the normal course that everybody does. You go take a course, you pay the money, you buy a couple properties. You, you, you get some mortgages and you take all the risks that you want. Then you don't know everything. And you learn as you go, it's a school of hard knocks. And I ended up getting caught up in the, the 2008, 2009 financial crisis. At that point, actually, I had gotten into the mortgage business a few years prior. I was doing writing loans, learning about the banking industry, started my own mortgage bank, doing some private lending.   Rob Napolitano 00:08:41 The sub subprime mortgage crisis happened, caught me off guard as well. And so personally I went into a chapter 13 bankruptcy, and I had to learn how to get myself out. I, I, I actually hired an attorney. And at that point I was so interested in what was going on with the crisis that I actually went to law school, become a paralegal and learned more about how the mortgage backed securities and the securitization process all worked. And I started a legal litigation support services, where we were helping attorneys to help homeowners stay in their homes. Because a number of those foreclosures going on back then were being done illegally, hence forth the bully coming in on the homeowners, me stepping in trying to beat up on the bully. But I found that was a hard way to actually make a living. And at that point I had just started my new life as a new husband and father.   Rob Napolitano 00:09:34 I need to actually make a living as well. And so we did that and I learned, learned the legal system, how it all worked, got involved, a number of, of, of cases. Matter of fact, one of my briefs decided in the state Supreme court of Massachusetts and, and what I've learned is taking on the bank's head on was a Herculean task. And what I wanted to do is, okay, so if these banks own these loans and you know, they have problems processing and paperwork, and they didn't want to do all the heavy lifting of trying to modify loans. I wanted to be in that business. So we started a fund in 2014, buying loans raised a bunch of money doing it. And one of the things that I found in my experience and going through what I went through is that all the banks were always covered.   Rob Napolitano 01:10:22 And they always had this insurance on their bets that they made not to get too technical, but they were, you know, credit, default swaps and different ways that they covered their losses. And I said, wow, there's no real insurance for the risks that we take as actual real estate investors. How do we get that covered as well? And so I found another product and I started a second fund of, of, of buying life settlements with partners there as well. And we used the life settlements as a way to cover and, and absorb some of the risks that we take on the buying of the notes that we buy. So now we're buying notes, doing private lending and also buying distress life insurance policies as a suite to cover ourselves and mitigate simple, let's say keep a lot of the money that we're making through the insurance pot.   Rob Napolitano 01:11:12 So we kind of self-insure ourselves, but that came through, you know, my experience of what I went through. I had to go through, you know, the doldrums and it was a very lonely place going through bankruptcy and long story short, I ended up coming outta that bankruptcy suing two of the big banks to the major institutions. They ended up paying off all my creditors, paid my bankruptcy state, paid all my attorneys, and I actually walked away with a profit outside of my bankruptcy. Wow. So it's a very rare case. And, but yeah, I had to go through all of it. So I, I, I learned how to get to the very bottom, find out how it all works and then build upon something upon that as well. And it's not, it's not nice what these banks and these financial institutions do to people. So I've always been now that advocate of helping people to generate their wealth.   Rob Napolitano 01:12:02 However they choose to do it. I think real estate's one of the best ways to do it, but it doesn't come without risk without failure, without pitfalls. And you, you're never gonna know everything because there's always outside forces involved as well, but there are certainly ways to protect yourself. And, and, and I'll give you maybe as a, as, as, as, as an anecdote to it, it's like playing any professional sports. I mean, we're here in the United States. There are gonna be people elsewhere listening outside the United States, but let's use American football. As an example, we have an offensive team and we have a defensive team. So in that scenario, if we are playing in the super bowl and we're up by three points with two minutes left to go, how do we protect ourselves? How do we protect lead? How do we protect that trophy?   Rob Napolitano 01:12:52 That's right in front of us all relies on the defense. And when we talk about this risk mitigation, it's just about financial defense. How do we protect ourselves from the risk and risk is nothing more than the potential of something going wrong. And the probability of that happening, we live in risk, right? So it's always there. So how do we protect that probability and work on the defense and nobody ever talks about defense, right? The super bowl it's, you know, the quarterback was great. And did you see that play, that wide receiver caught that not running back, did that great. Never talks about the defense. Right. And so it is in, in, in our financial side and no one talks about the defense, how do we protect ourselves? But it's important. It's important.   Wendy Sweet 01:13:40 Yeah. You know, I think, I think that's probably the biggest mistake that people make is they don't put the defense into place. You know, the thing that I lo the part of your story that I love the most is the scars. Yeah. That, that you've acquired. And, and you're not afraid to tell people, Hey, here's what I went through. Yeah. And that's, I would much rather invest in people that have been up against the wall that have felt the pressure of, of being at the bottom that understand, because that makes you so much more risk aversive. I mean, you're, you're really looking, you're really looking to make sure that doesn't happen again.   Rob Napolitano 01:14:26 Absolutely. No, I listen. It's absolutely. I mean, and I, I I've said that to people as well for too, you know, when they try to compare, well, you know, we like to see people's historical track record. Why that's gonna happen again? What do they always say after historical track record, past performance, not an indication of future future   Wendy Sweet 01:14:44 That's right.   Rob Napolitano 01:14:46 Basically saying, I'll show you the numbers, but don't believe any of this B BS that I'm about to show you because I may screw up moving forward. So it's, you know, it's, it's a forward looking thing, but you're absolutely right. No one knows it's gonna happen moving forward. It's a risk that we're taking, but don't, you want to be with those that have been through the DLL drums already so that no matter what comes forward, no matter what happens, no matter what's in front of us, we want to be with the people that have been there already, because it is scary. Right? We're not about this stuff. So having the right partners, having the right people, that's why I love doing stuff with you guys. Okay. You guys have been through the worst of the worst as well. You know, you guys understand this stuff. The, the three of us here, we don't know everything, but we know how to get through everything.   Wendy Sweet 01:15:31 That's the key.   Jonathan Davis 01:15:32 Well, and that's, you know, that, that's one of the things that talk to tons of people about, and it's, it's like, you know, everyone wants to say, you know, the, if we talk about real estate, it's, you know, it's cyclical things, you know, things keep happening over and over that are similar. Sometimes, almost exactly the same, but there are never caused by the same thing. And that's what risk mitigation is. It's knowing that there is going to be a loss of some kind. And the mitigation is how do I position myself in my investments, in a place that reduces the amount of loss for the unknown thing that's going to occur that I know is going to occur. I don't know when, and I don't know what it's gonna be, but it will occur. So how do I position myself in that best place?   Rob Napolitano 01:16:22 Yeah. Absolutely.   Jonathan Davis 01:16:23 Position the assets in the best place. So, yeah. I mean, that's, that's all we like, we know it's coming. We just don't know what it is.   Rob Napolitano 01:16:30 Well, let's, let's look back at the football game. Right. Does anybody expect to win a super bowl without ever letting the opposition ever score any points against us?   Wendy Sweet 01:16:41 That's   Rob Napolitano 01:16:42 Right. No, that, that, that, that's just totally ludicrous to have that expectation. Of course the other team is gonna score. The idea is to obviously score more than them or slow down how potent their offense is. So they don't score more than us, but don't have the expectation they're not gonna score.   Jonathan Davis 01:17:00 Yeah, exactly.   Wendy Sweet 01:17:03 You know, the other thing too, I think that's really important for people to understand whether you are an investor or whether you are lending. You need to have a healthy fear, but you can't live in fear. No doubt finding that balance of, of, you know, here's your plan a, but here's my plan B my plan C and my plan D you know, you, you try to make sure that plan a is gonna work, but you have to have the risk mitigators in place to be able to follow up with plan B, C, and D, and make sure that what's the worst thing that can happen. Can you live with that?   Rob Napolitano 01:17:52 So I call that awareness very simple, right. I have a 12 year old daughter, and we're in the conversations now of my 12 year old daughter and, and dealing with drugs, not that she's dealing with drugs, but we're making, we're telling her, she's   Wendy Sweet 01:18:07 Dealing drugs again.   Rob Napolitano 01:18:08 Yeah. You tell her, stop touching my drugs now. So we talk about, we talk about drugs and at, at her age at 12, and in the next couple of teen years, she's gonna be experiencing that and she's going to be exposed to that. Right. And we show her some of the things that can happen with drugs. We talk about it. We talk about things that, not that I'm trying to be doom and gloom, not that I'm trying to scare her. Cause some of these things are scary. And I tell her this, this is not to scare you. This is not to stay, stay away from people that you don't know or, or, or, or, or all your friends. Cause you can come from anywhere. Okay. But it's to make you aware that as you go out into the world, this exists, you can have friends relationships, you can go out and you know, other people's houses, parties, and, and other events and stuff and everything enjoy life, but be aware and be in tune that these risks are out there as well and act accordingly and be prepared for it.   Rob Napolitano 01:19:04 So by being prepared, it's not necessarily a doom and gloom thing or out there to try and scare it. But it's a matter of awareness. And honestly, that's, that's, that's part of the distinction between winners and losers in this business, right? I mean, being aware, being able to absorb the risk, embrace the risk, embrace the loss, embrace the failures and know how to move forward from there is a key difference and anybody can do this. I mean, anybody can accept a failure. Anybody can, you know, take the right mindset and move forward and move through things. Anybody can do that. So anybody can make money in this business or any business really. There's no real secret to it. You can do it. That's   Wendy Sweet 01:19:43 Right.   Jonathan Davis 01:19:44 No, there's, there's, there's good risk mitigation and good timing. And that's, that's probably about it.   Rob Napolitano 01:19:51 Timing. I think timing only really applies in, I forget what the second thing was, but the first thing was sex was timing. And the second thing I guess, was racing. I thought it was sports, sports and sex. And we know two things that timing was really important, but I don't know, someone else told me that earlier today and just stop whatever, but you can't time a market that you can't do.   Jonathan Davis 02:20:15 No. It's it's time timing. Yeah. I mean, it's just coincidence.   Rob Napolitano 02:20:20 Yeah. You know, you know what just, you said before Jonathan too, is that, you know, you see these things happening over and over again. This is so we're going through right now. And, and, and in not only here in our country, but in the world, we're going through one of the greatest wealth transfers that our time has ever seen right now. But just because we haven't seen it before, doesn't mean this hasn't happened before empires have grown and fallen all throughout the course of, of history and humanity. Okay. We just happen to be on the downside of a, of a falling empire going on. When you say, when you say transfer of wealth, what are you referring to? There's always when, whenever, whenever, so a couple of things going on here, I don't want to get too overly, hyper technical with it, but many times we'll keep it real simple for principle purposes.   Rob Napolitano 02:21:09 I know we're limited on time, but many times civilizations rise and fall based on consumption and debt and, and, and money and the use of money. And, and, and, and, and, and the control of money gets to a point where gets outta control. It. It's like, it's like keeping your own credit card and your own house and order your own balance. You know, you get two outta control, you end up in a bankruptcy, right? Cause you, you have to take too much debt. You don't have enough income and it's just, you know, regular economics, 1 0 1 and economies go through that. And, and, and world powers go through that as well. And we're at a point now where we've taken on, not just here, but around the world, too much debt with not enough consumption. And we're seeing the loss of, of power in purchasing power, the, the us dollar as a world reserve currency.   Rob Napolitano 02:21:53 But again, I don't wanna get too macro, but the point of it is that when you, when that happens, it's similar in real estate. When people take on too much debt on their real estate and they go into foreclosure, okay, the debt has to get restructured either has to be cut in half, not half, but it's gotta be cut, take a haircut and it's gotta be resolved and it's gotta be unlevered. Okay. And when that happens, there's not many people that know how to do that, to understand the money and how the wealth occurs. You set it before that BlackRock is, is, is, is, is ramping up to, you know, pick up all these distressed homes. Okay? Perfect example. They're getting ready for the wealth transfer to take homes from people who can't afford it into their own portfolio and their investors. It's the same thing with debt.   Rob Napolitano 02:22:36 We're gonna see a lot of transfer of, of wealth and financial assets and real estate coming. And we're gonna see a great opportunity to, to grab some of this piece of apply for ourselves. Okay. We're gonna, I mean, there's, opportunity's gonna be tremendous. Everybody should be getting involved one way or another with the right partners. Because remember, while there's always one party that's winning on the other side, there's always another party that could be losing too. So who you pick as your partners and who you go through this with is very, very, very important. And people must be doing, doing this. The challenge that I see with, with, with, with investors out there, and I'll come back in real, into real estate, but I'll make it more generic is that people agate the responsibility of building their wealth to financial advisors, traditional financial advisors that want build into traditional stocks. And guess what, maybe before inflation that worked, but that doesn't work anymore, right? That model is gone. People need to take back responsibility for building their own wealth for their own family and make their own decision and stop abdicating that out to some other financial advisor. Who's gonna put you into something where he's betting against it, that you're gonna lose. I mean, that's part of the game. Part of the game is they put you into things and they bet against it. You're gonna lose. Okay. Yeah.   Jonathan Davis 02:23:53 That's, that's just like we had Chris miles on here a week or so ago. And you know, his father, you know, did the whole stock market, had a financial advisor. He retired. And then he met with, with, with him and said, you know, how much time do, how much runway do I have? And he was like, well, dad, you you've gotta die in five years. Cause that's, that's all you got. And it's like, and he is like, well, where did I go wrong? He's like, you didn't, you did everything that you were supposed to do, everything that you were told to do. Yeah. And that's because that model doesn't work. Yeah. Yeah.   Rob Napolitano 02:24:31 And I think people need to look at, look, I talked to a lot of people. I think the real issues out there today is, you know, now we're in the aftermath of a multi-year pandemic that affects different people, different ways, right? Whether we're going into a session, depending on how you wanna define a recession, you know, people are in a recession. People are not in recession the way you are. We have runaway inflation. Taxation is going off. The rails mortgage rates are going up. Crypto is crashed over 50%, right? We get massive layoffs. We're getting scarcity and resources and supply chains. We're getting energy crisis wherever we are. And then you got all this increase in violence and social stability. This all has to do with money. This all has to do with, you know, survival of the fittest financially. Okay. And going into stocks, look at where that's gotten us, look at where we are, right. Doing it personally for yourself, with real estate, with the right partners and taking responsibility for yourself is what people have to do. Which goes back to what I said, four, I did it with my feet and I picked up my family. I moved them elsewhere, mitigating the risk of living up there because of taxation, number, other reasons, but because of taxation as well, it's part of the risk mitigation, part of keeping what you've earned.   Wendy Sweet 02:25:43 That's right. And you know, you also talked about being with the right partner. Bill, put a statement in, I don't know if he's actually in the air now and he can't hear us anymore, but he, he wrote in the comment section in the right real estate space, your investment can be both growth and defensive. And I think what people need to understand is there's different ways of protecting your wealth. You have a fund, we have a fund. When, when you put your money into a fund you're you're with other people, you are mitigating your risk by being spread out of that's right. A number of loans or don't number of notes.   Rob Napolitano 02:26:22 That's right.   Wendy Sweet 02:26:23 One goes bad. You're not, you know, when the toilet, if you're one on one, you're in the toilet, that's   Rob Napolitano 02:26:29 Right. All your eggs are in one basket at that point. Right. And that's why I'm a big advocate, especially, you know, so that's diversification, right? You wanna diversify your portfolio, right. You wanna diversify as best and as, as granularly as you can. And so your point there is that when, when someone invests in a fund you're diversifying and spreading your risk across all the assets inside their fund and not just one particular asset that's right. So yeah, that's, that's absolutely a good move to do for diversification. That's   Jonathan Davis 02:26:57 Right. Yeah. I mean, we, we, we talk about, you know, geography, diversification, asset diversification. I mean, there's many different ways to diversify also wanna point out there are many ways to over-diversify. Yes. So, you know, pick the things, diversification in the places and things that, you know, best, not just everything and try to shoot a shotgun pattern, you know? Yeah.   Rob Napolitano 02:27:24 Yeah. And that's why the cookie cutter portfolio stuff doesn't work. Right.   Wendy Sweet 02:27:28 Because   Jonathan Davis 02:27:28 This is perfect. It's shotgun. Yeah.   Rob Napolitano 02:27:30 It's, it's, it's, it's, it's, it's personal. Everybody's, everybody's in a different stage of life. Everybody has different dreams and aspirations. Everybody, you know, has, are on a different path to have different types of successes in their life. Okay. When's the last time a financial advisor, you know, other than coming over to pick up a check, actually sat and, you know, talked with your children and wanted to know what they wanted to be when they grew up. Right. Had that intimate with your kids. Yeah. I haven't seen that happen.   Wendy Sweet 02:27:59 Yeah, you're right. We are over our time limit already by really fast   Jonathan Davis 02:28:07 It's time flies when you're having a good conversation. It's good stuff.   Rob Napolitano 02:28:10 I just started slowing down my speech. I just started catching my breath, flowing up.   Jonathan Davis 02:28:14 Just got settled in.   Wendy Sweet 02:28:17 We're gonna self destructive. We don't close it up.   Jonathan Davis 02:28:20 Well, before we do wrap up, I do everyone out there. Our question of the week. I wanna go ahead and throw that out there. I guess we're not gonna have a graphic for that's. Okay. How do you mitigate risk? We want to know. I mean, there's all kinds of ways to mitigate risk. We mentioned, you know, diversification through assets, through geography. What do, what do you do? So we would like to know, know that   Wendy Sweet 02:28:48 And that they can go right online. And even the recording, you can respond to that question on this recording. We will see your answers on this. And Rob, you have been just a wealth of information. We'd love to have you back.   Rob Napolitano 02:29:03 Oh, I, this is, this is a lot of fun.   Jonathan Davis 02:29:06 I, I told him already, we're gonna have to have a part two so that, that that's gonna have to happen.   Rob Napolitano 02:29:12 All right. We'll have to have part two. Okay. Fine.   Jonathan Davis 02:29:15 Twist your arm. Well, all right guys. Well, thanks so much for joining us on the real estate investor show. We are Carolina, hard money, Carolina, capital management. If you are a rehaber or a real estate investor, you can go to Carolina, hard money.com and click on the apply. Now tab, if you are an investor and seeking outsized, passive returns, you can click on our credited investor tab and don't forget to like share, subscribe, hit the bail and join us next week. We'd love to have you.  

Bill Fairman 00:00:01 Hi everyone. Bill Wendy and Jonathan here. We're gonna talk about rich dad. Poor dad. Who's your daddy. Once again, greetings. Thank you so much for joining us on the real estate investor show hard money for real estate investors. We are Carolina capital management lenders in the Southeast for real estate professionals. If you would like us to take a look at one of your projects, please go to Carolina, hard money.com and click on the apply. Now tab, if you're a passive investor, looking for passive returns, go to the accredited investor tab and   Wendy Sweet 00:00:59 Send us some money.   Bill Fairman 00:01:00 That's right. Don't forget to like share most importantly subscribe, and then you can hit a bell too. If there's one available Wednesdays with Wendy it's. So unlike me to be so busy talking, I forget about   Wendy Sweet 00:01:26 The grand page. Yeah.   Bill Fairman 00:01:28 Anyway, Wednesday with Wendy is a volunteer thing that Wendy does to donate her time to anybody who wants to talk about real estate. She gives everyone 30 minutes, but get on the list, her calendar she's booked out all the time.   Wendy Sweet 00:01:47 Not all the time.   Jonathan Davis 00:01:47 All there's times available.   Wendy Sweet 00:01:49 Yeah.   Bill Fairman 00:01:51 Get it while it's high.   Wendy Sweet 00:01:52 Yeah, that's right.   Bill Fairman 00:01:53 Am I leaving anything out? Quest expo?   Wendy Sweet 00:01:56 Yeah, that's coming.   Jonathan Davis 00:01:59 There's a graphic for that.   Bill Fairman 00:02:14 It's coming up soon. Anyway. It is a great opportunity to meet like-minded people. You can get a 30% discount by using Fairman 30 and it's September the 23rd through the 25th. I highly recommend it.   Wendy Sweet 00:02:30 Great networking opportunity. Absolutely great opportunity to learn about all the different opportunities to invest your money. Yep. Right? Absolutely. There's a lot of stuff.   Bill Fairman 00:02:41 So do we have a, a question of the week by the week?   Jonathan Davis 00:02:45 Yeah. So the question of the week, and we'll, we'll follow it up later in the show as well, but in your opinion, you know, what is the difference between being rich and being wealthy? Hmm. And, you know, kind of a, you know, a caveat off of that is what are some strategies that you employ to build wealth now we'd, we'd love to talk about those next week. So anyone that puts it in the comments, we will be discussing it. And   Wendy Sweet 00:03:14 We'll actually be talking about that over the next few weeks. So yeah, there's, we've got a lot of great speakers and, and topics lined up to where we're really addressing building wealth versus getting rich because there's a big difference in the two and, and rich dad, poor dad is what came to mind when, when we were coming up with this and yep, absolutely great book. If you haven't read it and you've been living under a rock, if you haven't, but it's, it's a great book. Rich dad, poor dad by I think that's key.   Bill Fairman 00:03:49 So for breaking   Jonathan Davis 00:03:52 The news,   Bill Fairman 00:03:53 Breaking news,   Wendy Sweet 00:04:06 When was the last time your home was rated?   Bill Fairman 00:04:10 Last time I used bug spray. Yeah,   Wendy Sweet 00:04:13 That's good.   Bill Fairman 00:04:14 So the producer price index came out today for the month of July. That's basically what manufacturers pay for their goods before they're manufactured and then passed on to the consumer. It was slightly below what expectations were. But when you strip out food and energy, food is way up there. Yeah. Energy dropped and we all know that gas prices oil came down.   Wendy Sweet 00:04:48 Not much. We're still above where we should be.   Bill Fairman 00:04:50 Right? No, I get that. Yeah. But the point to this is that it's still into 9%, almost. It was 9.8%. They were expecting 10 something. So it's still high. They're still gonna manufacturers still have to push their cost increases forward. So we're, we're gonna be in inflation territory for, for quite some time. And unfortunately,   Wendy Sweet 00:05:14 If you wanna call it inflation   Bill Fairman 00:05:17 And the fed don't   Jonathan Davis 00:05:18 Call it recession. I mean,   Wendy Sweet 00:05:19 We're not,   Jonathan Davis 00:05:20 It is not a recession.   Wendy Sweet 00:05:21 That's right.   Jonathan Davis 00:05:22 Don't vote this November for not in a   Wendy Sweet 00:05:25 Recession donation. That's right.   Bill Fairman 00:05:28 So, you know, the fed is gonna continue to, to raise rates until they, I, I, I heard the chairman of the Minneapolis fed say that they're getting down to 2%, no matter what. So they will continue to raise rates until they get the inflation rate down to 2%, which means they're gonna continue to raise rates   Wendy Sweet 00:05:49 For a while. Yeah. Yeah.   Bill Fairman 00:05:51 I did wanna touch on the general mortgage outlook what's been going on. So I got this article from the mortgage news daily, and this is, this is based on refinancing. And I said last week it has picked up refinance index was up 3.5% from the previous week. It's largest gains it's June, but it was 82%, less than last June at this time. Just   Wendy Sweet 00:06:22 A little bit different.   Bill Fairman 00:06:25 We, we had Brian on a couple of weeks   Wendy Sweet 00:06:28 Ago, Brian Maddox.   Bill Fairman 00:06:29 And you know, if you're in the mortgage industry and you weren't paying attention to your purchase money business, you're in a world of hurt right now. Excuse me. I   Jonathan Davis 00:06:40 Don't know. You're up three and a half percent.   Bill Fairman 00:06:44 No, you're down   Wendy Sweet 00:06:45 82%. It's all on how you look at it. I was, I was at the airport at 4:00 AM this morning. That's a whole nother story. But while I was sitting there, I was reading about loan Depot, big company. They had 11,500 employees. They've laid off almost half of 'em.   Bill Fairman 00:07:08 Wow. Well, I didn't hear about half.   Wendy Sweet 00:07:10 Yeah. And they expect 900 more. Yeah. I hear they're going to be laid off. Yeah. So they're and they're stopping their wholesaling, which I thought was interesting. Yeah.   Bill Fairman 00:07:19 Well, they're not gonna have too many retail businesses that are gonna be using   Wendy Sweet 00:07:25 Them. Yeah. That'll be selling 'em now, you know, they're finishing out their pipeline, right. They're not leaving anybody hanging. Like it happened back in, you know, oh eight. But, but they're making some big changes.   Bill Fairman 00:07:36 Now, purchase applications decline 1% week over week, but they're, they're just down 19% from a year ago, which is still bad, but that's better than 82. If you're in the mortgage business, that's where you're gonna get your right. You know, your, your workflow from your cash flow. Now I thought was interesting was the size of the mortgages grew from now, these are refinances 378,000 to last, last week. It was 374 or no 374 7 is they've gone up, you know, $4,000. Almost obviously people are taking advantage of still having equity in their house. And in my opinion, if you're refinancing, now it's not rate and term it's, it's cash out. Refinances. People are hoarding a little bit of cash. Yeah. Or they're spending a bunch of their money with credit cards to pay for food and shelter and gas. Yeah. With their cards and they, they need more cash.   Jonathan Davis 00:08:47 Well, I mean, it could be rate term, probably not. I mean, you probably have some five, one and seven one arms that are coming due that are, you know, people have   Bill Fairman 00:08:54 To, if you, you had a five, one or a seven one arm in the last three or four years, you're on moron.   Wendy Sweet 00:08:59 That's crazy. Yeah. Crazy.   Jonathan Davis 00:09:01 Well, well, you wouldn't come due in the last three or four   Wendy Sweet 00:09:03 Years. Yeah, that's right. You would've been, you would've five years ago.   Jonathan Davis 00:09:06 Well, seven years ago.   Bill Fairman 00:09:08 My point is, why wouldn't you have refinanced before then? I mean, you couldn't qualify   Jonathan Davis 00:09:13 Well, remember in 2018, you know, mortgage rates were in the fives. Yeah. I mean, just that's four years. Guess   Bill Fairman 00:09:19 What? I mean, as soon as they got down below three. Yeah. Why wouldn't you have been refining?   Jonathan Davis 00:09:23 Well, I'm saying, so you'd be, you'd be refinancing from 2015 to 2018. Yeah. And yeah, I wouldn't, your rates would be pretty comparable to where they are now   Bill Fairman 00:09:32 Or higher, but that just means they're, they're going to an adjustable and yeah. You might wanna go to a higher fixed rate and be stuck with a higher adjustable and not knowing where it's gonna go. I get that. But I think again, unless you couldn't qualify, you should have already done that. So you're still more on or not paying attention.   Wendy Sweet 00:09:53 Do you have a graph that you wanted to show no online or that's just for us to look at. Okay.   Bill Fairman 00:09:59 That's that's going into our next segment. Oh, gotcha. But thanks for reminding me purchase mortgages prices rose to 416,300 from four 13. So we still have prices that are going up   Wendy Sweet 01:10:15 A little bit and that's nationwide too. So it's gonna be different depending on where you are located. Sure,   Bill Fairman 01:10:22 Sure. So average interest rate for a conforming loan was, you know, between it was 5.47 compared to 5.43, which is not a big deal. Here's what really surprised me though. Jumbo 30 year fixed the rate was 5.9% since when is a jumbo more expensive than   Jonathan Davis 01:10:45 5.09.   Bill Fairman 01:10:47 Yeah. Yeah.   Jonathan Davis 01:10:47 Okay. Yeah. 5.09.   Bill Fairman 01:10:49 Yeah. What did I say? 5.9. Yeah. Okay. 5.09. So barely a tick above five. So since when is jumbo rates lower than conventional rates?   Wendy Sweet 01:10:59 Yeah. Amazing. Huh?   Jonathan Davis 01:11:00 Because most loans are jumbo now with, you know, 4, 4 16 being the average loan   Wendy Sweet 01:11:05 Size.   Bill Fairman 01:11:07 And that really shocked me. Yeah. That is that's crazy. And it, this, this article, and again, it was in mortgage news daily, yesterday, you can get the whole thing, but they were showing these rates with, you know, some points, a little bit of points, but the points were basically the same. Yeah. For all of these, I'm just, I'm just shocked that the jumbos   Wendy Sweet 01:11:29 And the key to all this is how is that really going to affect real estate investors when they're trying to fix and flip properties, you know, how are the sales gonna change if they're, they're going to change. We still through all of this, have a shortage of housing. Yeah. You know, we're, we're still low on the housing. So, you know, things are still gonna be moving along.   Bill Fairman 01:11:53 Well, the, the one thing I want to add to this is that unless you're in California or certain areas of the country bubble units, you're not gonna be getting, if, if you're an investor, you're not getting a jumbo. So if, if those houses are, are moving, it's gonna be for more than likely people that are owner occupied. Sure. Yeah. In smaller units that are gonna have a lot of investors in. So as people are getting priced out of the market, the market will come back to them. Eventually wages still aren't keeping up with inflation, but at some point wages will, as inflation starts to come down and then prices on, on homes will, I don't wanna say flatten, but they'll get more realistic.   Jonathan Davis 01:12:42 Yeah. Yeah. Everything will adjust.   Bill Fairman 01:12:43 You keep beating the same drum here that this appreciation rate is unsustainable   Jonathan Davis 01:12:50 And it's a great time to be a landlord. Yeah. Yeah. That's a great job. Rent have never been higher. That's right. Rent's never been try.   Bill Fairman 01:12:57 All right. So we are going to talk about wealthy versus rich,   Jonathan Davis 01:13:05 Wealthy versus rich.   Bill Fairman 01:13:07 So what I'd like to talk about is the difference between getting rich in the stock market and getting wealthy in real estate. You have any thoughts on that?   Jonathan Davis 01:13:19 Do I have thoughts? I have a lot of thoughts on that. I mean, I'll focus more on the real estate size. That's more of my, my wheelhouse. There are so many different ways to invest in real estate and there's. And so you can be diverse between asset classes be between geography. You can, you know, have cash flow. You can have appreciation. We were just talking about unsustainable appreciation, but you can also have depreciation, which is a tax advantage. You can even hypothecate if you want. So, you know, it's just pledging an asset without conveying title. So there's all kinds of ways. And, and the thing to remember, I think for real estate is where the shiny object syndrome happens in, in stock market. My cousin put, you know, 10,000 in, on this stock and it blew up and he, now he's a millionaire that, you know, that's great.   Jonathan Davis 01:14:24 But the chances of that occurring are so minimal. Like it it's, it's it? Yeah. It's so tiny, but in real estate, you don't get that quick fix that everyone like, you know, like, you know, it's a headline, everyone just wants the headline. I made a, I made $400,000 when I sold this house. It was fantastic. Like that's not typical. It's, it's, it's not, it's a, it's a long process. Yes. And it's a long game that you have to play and you have to diversify yourself. But that long process is the wealth. That is where the wealth is generated. In that process. You can, you can get, become a millionaire in stock market overnight from some anomaly happening that you had no control over. It could have gone a thousand different ways, but it went this way for you. Congratulations. Now, what do you do with it? I suggest take that money invested in real estate, but you   Wendy Sweet 01:15:19 Know, yeah. Yeah. Plus, I mean, you talked about assets and all of that, you know, different classes, but not only that, but you can also choose to be active or passive in investing in real estate, whether you're funds syn syndications, or are you investing in individual people that, you know, are you buying notes? You know, there's   Jonathan Davis 01:15:43 Yeah.   Wendy Sweet 01:15:43 Are, are so many different things   Jonathan Davis 01:15:45 You're buying and selling notes. Are you buying performing assets? Non-performing assets, reperforming assets, commercial, residential, you know, mixed use, raw land, whatever, you know, what have you, I mean, there's so many different avenues you could do. You can do seller financing, you can create a note and then sell that note or sell a portion of that note, sell the first half of it and retain that the second half. Like there's, there's so many options. And again, I'm only speaking from the real estate side that I know, but I don't think you have that many, well, you have options in, in stock market, but I don't think you have, it's not the control tied with an asset.   Wendy Sweet 01:16:26 Right.   Jonathan Davis 01:16:26 That's, that's what we   Bill Fairman 01:16:27 Like. If you're confused about all the different ways and how to do this, how, how many people that are invested in the stock market know all the different ways to invest in the stock market. That's   Jonathan Davis 01:16:39 Right. Probably none of them,   Bill Fairman 01:16:41 Most of them just have money managers that they can say, okay, that sounds good to me. I did. I read an article yesterday from JP Morgan chase advisors and the, in the article, it was stating that the average investor after inflation ends up with about a 2.9 to 3.1% return. Wow. Over the 20 years, because they always buy it the wrong time. They sell it the wrong time. They pay too high of fees, all that stuff, taxes. Yeah. All, all that is involved because they, they don't know. They trust other people to manage it for 'em and if they try to do it themselves, they, they make even less money.   Wendy Sweet 01:17:28 Yeah. They run scared.   Bill Fairman 01:17:30 So through, if you'll put up that graph that shows the home prices versus the stock market since 1900. So it's the, here's the appreciation. And, and let's talk about, and, and I, I couldn't find one that went beyond 2010, really, that would show a long term in the market. So this is since the 1900 stock market versus home appreciation basically. So the red line is the stock market. And as you can see, they run fairly parallel through from 1900, all the way to 2010. So the values are basically the same. Yeah. The prices are basically,   Jonathan Davis 01:18:20 The only difference is you don't have steep losses and gains in the housing. As you do in stock.   Bill Fairman 01:18:27 Housing is, is pretty steady until you get to, you know, 2008 and eight where it went down, but it, you know, it recovered fairly well. Just like the snack market did in 2008. I mean, it dropped two. Yep. But here's a little difference in building wealth versus getting rich. Could you put that back up again, if you don't mind with that, the housing, those prices are the same, but the value is not in the price. The value is in the income that those properties pay. You let's switch over to that graph where I have the, there, there we go. And I know it's kind of hard to read this. This is the 30 year and the 20 year history of the S and P 500. And these are the returns for 30 years. The average return was nine point. I can't read   Jonathan Davis 01:19:24 That 9.84.   Bill Fairman 01:19:25 Yeah. 9.8, 4%. And then adjusted for inflation. It was 7.15. Now this is in price, right? If you're, if you own real estate and you're getting rental income from real estate, do you think you're gonna get somewhere in the seven to 9% return on those investments?   Jonathan Davis 01:19:48 I think most people that we work with get somewhere between seven and 12% on their   Bill Fairman 01:19:53 Investment. Okay. Now that's on the, we'll call it the dividend part on the real estate. Yeah. You're not gonna get a dividend like that in the stock market, your typical dividend paying stocks, number one are not going to follow that same trend line as far as pricing goes. And your dividend typically is gonna be between, depending on the company two and a half to 4% return. Yeah. Okay. With the housing market. We'll, we'll just say in single family, I'm not gonna talk about anything else right now, because the graph is based on single family housing, you are getting a seven to 9% increase over time, every single year with a few exceptions, but over time. Yeah. You're, you're getting that same appreciation as the stock market, but you don't get paid in the stock market until you sell. Right. Well, with real estate, you're getting seven to 9% returns. And then you get DEP profit. When you sell, if you decide to sell, plus you also get the tax advantages. Yep. With, with depreciation. Now, a lot of people are gonna say, well, yeah, that's fine and dandy, but I don't, I don't wanna be a landlord. That's a lot of trouble to get what   Jonathan Davis 02:21:12 Property management companies   Bill Fairman 02:21:14 Are for. That's right. You don't have to do it yourself. You can invest in funds that do the same thing that are that's right. Backed by the same assets. Yeah. Or you can get the same tax advantages that you can buy owning real estate because you essentially do own the real estate because it being an equity partner in a fund, you are one of the owners. Right. And you get those, those same tax benefits.   Jonathan Davis 02:21:37 Yeah. And you say all of those things that are included into the real estate and building wealth, and we, you know, sometimes get overlooked, but the amortizing loan, like you get to buy a property or, you know, or, or refinance or whatever you do with it, with to, and pay that loan in today's dollars for the next 30 years. Like the value of that is immense.   Bill Fairman 02:22:05 Let's touch on. Yeah. Leverage. So you can do the same thing in the stock market. You can leverage, you can get loans to buy more stock and you have money to buy the stock with. Yeah. But what happens if the price of that stock goes down? Oops, what is your lead forage happen? What happens? You either you have to sell   Jonathan Davis 02:22:24 Called. Yeah.   Bill Fairman 02:22:25 You either have to sell, or you have to put up more money because that leverage is based just like on a house, a percentage of the value. So if the value drops, you have to bring your percentage back up again by either adding cash or selling the asset. Yeah.   Bill Fairman 02:22:41 And the housing market, it doesn't matter if the price of the house drops, they're not calling your loan or making you put up any more money. No. The only time you would have to put up more money is if you had to sell for some reason and you owed more than, you know, what the mortgage before, or, or yeah. You couldn't sell it for what the mortgages were. Yeah. And, and again, and I'm gonna continue to quote this until the day I'd die, because it's a great quote from David Phelps, the house doesn't care what it's worth.   Jonathan Davis 02:23:11 That's right.   Bill Fairman 02:23:12 It's still producing an income. Yeah. And even in down times, recession periods, people still need a place to live. They still need to eat. And in real estate, you're providing them with a place to live. Now, there is very important. Sure. If you're in certain states, they may, the government may come in and say, I'm sorry, these people can't afford it. And we're not gonna let you a victim.   Jonathan Davis 02:23:41 Yeah. Yeah. That's why we don't like to do business in those states. So you have to be,   Bill Fairman 02:23:46 You know, due diligent about where you buy your real estate.   Wendy Sweet 02:23:50 Right. Right.   Bill Fairman 02:23:51 Very important. So that does happen.   Wendy Sweet 02:23:55 But not in most places. Yeah. That's not happening in most places.   Jonathan Davis 02:23:58 Yeah.   Bill Fairman 02:23:58 And most people wanna pay their rent. You are gonna get people that play the system. But in most cases, you're gonna get people   Wendy Sweet 02:24:06 That wanna pay. You know, another thing that I think we should touch on too, is, you know, when we talk about building wealth, you talk, we were talking about all the advantages you get when you're in real estate versus being in the stock market. Well, if you, when you're getting into real estate, that be careful about how, what dollars you're taking money from, you know, are you investing with a IRA, 401k, or are you investing with cash knowing that if you're owning property, you don't really wanna use your IRA to own the property because then there's so many other advantages tax advantages that you're not gonna get using your IRA.   Jonathan Davis 02:24:51 Yeah. The   Wendy Sweet 02:24:51 Depreciation ver versus using cash for that. So, or   Jonathan Davis 02:24:57 Someone else's   Wendy Sweet 02:24:57 Money. Yeah. So leverage, so make sure you, you, you are investing from the right pool, buying the right things from the right pool. Does that make sense? Yeah.   Jonathan Davis 02:25:08 Yeah. Absolutely.   Bill Fairman 02:25:09 There are rules you have to follow with self-directed retirement accounts. And we've always found that if you're investing your retirement account, be a lender in a business that does is not tax advantage. Then that's where you put your IRA in. Yeah. If you're investing in something that is tax advantage, you're not getting that advantage because you're already using money. That's tax deferred or tax   Wendy Sweet 02:25:38 Exempt. And it's not a bad investment. No, it's just not as, Wise's not,   Bill Fairman 02:25:42 You're not utilizing your, all the benefits. Yeah. All the benefits entitled. Yeah. I have one other thing I wanted to talk about on this subject, but I'm old and I forgot   Jonathan Davis 02:25:53 Why I'm thinking about it. Let me share the, the question of the week again. So we, you   Wendy Sweet 02:26:11 Type fast. I know, right?   Jonathan Davis 02:26:13 We want to know, in your opinion, what is the difference between being rich and being wealthy and then what do you do to achieve being wealthy? We assume that's what you want.   Wendy Sweet 02:26:25 Yeah. So how can people answer this question? You can do it right online watching this.   Jonathan Davis 02:26:30 Yeah. You can believe in the comments and we'll, we'll pull it from the comments,   Wendy Sweet 02:26:33 Whether we're live or recorded. It doesn't matter. We're still gonna see it. Yeah.   Jonathan Davis 02:26:37 We're pull it in. Glad   Bill Fairman 02:26:38 You didn't say dead.   Jonathan Davis 02:26:40 We're gonna talk about it next week. Cuz we're interested to see what other people are doing. Yeah. What, what strategies you all are employing to build wealth or get rich. I don't know what, whatever you wanna do.   Bill Fairman 02:26:53 Excellent. So   Wendy Sweet 02:26:55 Nothing wrong with both.   Bill Fairman 02:26:56 Does anyone have a last word?   Jonathan Davis 02:27:00 So last word. I don't know. Like   Wendy Sweet 02:27:09 Hypothecate yeah, that was a good one.   Bill Fairman 02:27:13 That's it?   Jonathan Davis 02:27:14 Hypothecate hypothecate do it if you can, because you do not have to convey title   Wendy Sweet 02:27:20 And then for next week.   Jonathan Davis 02:27:22 So we're gonna, we're gonna close out here. It's been great. Hope. It's been entertaining and hope. You've learned something next week. We're going to have Dean Rogers on with us and we're gonna be talking, you know, former   Wendy Sweet 02:27:36 FF N NFL football player. Oh, turned apartment. Yep. Fish a good one.   Jonathan Davis 02:27:44 Yeah. So, so we're gonna talk about building wealth versus getting rich. It's kind of a thing that we're going with here. And again, we'll have Dean Rogers with us. So guys it's been great. If, you know, remember we are Carolina, hard money, Carolina capital management, go to Carolina, hard money.com and you can click on the investor tab. If you would like to invest into our fund, a passive investment that gets outsized returns. You can click on the borrower tab and fill out an application if you would like to borrow money for fix and flip new construction, short   Wendy Sweet 02:28:15 Term and long term, right? Yeah.   Jonathan Davis 02:28:17 Multifamily. And we do long term rental loans as well. So it anything else to add guys,   Bill Fairman 02:28:23 See you next week.  

Bill Fairman 00:00:03 Greetings folks. So, you know, we love self storage. We love 'em so much. We ended up buying some. So in this episode, we're gonna talk about lessons learned right after this. Thank you for joining us on the real estate and investors show hard money for real estate investors. We are Carolina capital management, private lenders for real estate professionals. So if you're looking for us to take a look at one of your projects, go to Carolina, hard money.com. Click on apply. Now, if you're a passive investor looking for passive returns, click on the accredited investor tab, and don't forget to like share subscribe, hit the bell. And don't forget about Wednesdays with Wendy is just a shadow of herself. Apparently our lights are not focused in properly, but Wendy does, excuse me, 30 minutes per person on Wednesdays. Anything you wanna talk about real estate. She donates her time to do this. So sign up on this link and we have one over in the chat, which by the way, we have a chat, it's either gonna be on the right side of your screen or underneath, depending on the platform that you're viewing us from. So if you wanna leave any comments, nasty or not can put 'em there,   Jonathan Davis 00:02:02 You know, bill, this is the most excited I've seen you in a lot. Yeah.   Bill Fairman 00:02:05 I'm getting ready to leave.   Wendy Sweet 00:02:06 Or I thought maybe it was cuz I was back. Yeah,   Bill Fairman 00:02:08 That   Wendy Sweet 00:02:08 Too. We had some great calls on Wednesday yesterday too. Wow. Five excellent, excellent calls. I just, I'm always amazed at the different topics and just really, really good stuff. Really good   Bill Fairman 00:02:23 Stuff. That would be a good way to take a couple of questions and then we can yeah. Do 'em here on the show and answer them. You don't have to say who asked them, but yeah, it might be good topics for,   Wendy Sweet 00:02:35 Well, I'm actually putting together a book from them that we'll talk about just all the different topics, cuz it's just so vast. It's, it's amazing all the, all the options in real estate. In fact, we talked about that yesterday. I, I don't remember which one I was talking to, but that, you know, you get into real estate and you think that it's, you know, fix and flip, right. You know, that's what you think it is. But my goodness, everything gets really broken down into a multitude of different options. And then when you choose that option, there's a multitude of different options for that. Right. You know, the layers are, are definitely, it just goes on and on doesn't it it's depending   Bill Fairman 00:03:14 On market timing, there's all kind of different ways to,   Wendy Sweet 00:03:18 And that's the key. My bro is figuring out what's going on. My green bro. That's and he is green today, but it's, it's, that's the key is really figuring out what's going on around you. And what can you do to go into that toolbox and use? What's gonna work for what's happening in that market.   Bill Fairman 00:03:41 Neat keeps real estate so interesting is exciting, constantly changing and evolving, but you know what? It's still the same. It's all that's right about the numbers. It's just different ways of tackling it based on different right   Wendy Sweet 00:03:54 Markets, basically the same, that's the   Jonathan Davis 00:03:56 Similar conversation that we, we had, I think at the last employee luncheon learn or whatever that we had talking about, you were saying the market is cyclical and you know, it's just all these things. And while that's true, the things that throw it, the occurrences that throw it back into that cyclical motion are never the same,   Wendy Sweet 00:04:18 Right? Like   Jonathan Davis 00:04:19 So good point. It, it keeps happening, but it's never the same thing that, that   Wendy Sweet 00:04:23 Pushes it over there. Trigger pushes   Jonathan Davis 00:04:24 It back. So that's the exciting part is we know it's cyclical, but we never know what will cause that cyclical motion.   Wendy Sweet 00:04:30 Yeah. Yeah. Great point.   Bill Fairman 00:04:32 That is true. But the, the majority of the time it's rate related,   Jonathan Davis 00:04:40 But what causes the, we had the same, but what causes the rate? It's never the same thing.   Bill Fairman 00:04:45 That's   Wendy Sweet 00:04:46 Right.   Jonathan Davis 00:04:46 We don't say the fed or the fed responding.   Bill Fairman 00:04:49 We, we know that the fed doesn't cons doesn't control   Wendy Sweet 00:04:52 Mortgage rates.   Bill Fairman 00:04:52 Yeah. The fed is always behind it's the market that controls rates.   Wendy Sweet 00:04:56 Yeah.   Bill Fairman 00:04:57 So   Wendy Sweet 00:04:58 Really good stuff. We do   Bill Fairman 00:04:59 Have a little bit of breaking news. Speaking of rates, breaking news, the average 30 year fixed rate mortgage dropped to 4.9, 9% for the week.   Wendy Sweet 00:05:21 Really? I don't know   Bill Fairman 00:05:22 That. Not from 5.3. Oh all the way down to 4 9, 9. Wow.   Jonathan Davis 00:05:27 And it was at five, five. What didn't they? Yeah.   Wendy Sweet 00:05:30 Brian Maddox said that would happen,   Bill Fairman 00:05:32 You know, excuse me. Keep in mind. It's still gonna fluctuate for a while, depending on slow downs and that type of thing. But a lot of people were pulling money back over in stocks and it worked out well. Yeah.   Wendy Sweet 00:05:46 Yeah. That's, that's   Bill Fairman 00:05:47 Good. At least for some of those folks that have been kind of sitting on the fence and hoping that they wouldn't spend half their life paying their mortgage off. All right. So let's, let's get this show on the road. Yeah. So a while back we were fortunate enough to purchase some self storage. She hasn't told the story. So because it could be fortunate or unfortunate. I'm not sure yet because we, you know, we land in that space and we love the space, you know, why don't we own any yeah. You   Wendy Sweet 00:06:23 Know what I mean? Why don't we own   Bill Fairman 00:06:24 Everything? So we're, that was cause we couldn't afford it. We're we're dipping our toes always can and, and Wendy is taking the lead on   Wendy Sweet 00:06:31 This. Yeah. Taking the lead and the middle and the behind on it. But you know, that's what I said I would do. And that's what I'm doing because the team here is so awesome that I don't even really have to do anything in the loan on the loan side of life anymore, which is sad, but also very exciting. But it opened me up to be able to do this. And you know, our mom, she might not be online now, but she will watch this. And she has seen me all my life. I don't just bite things off to chew. I bite them off bigger than they really need. It's an elephant at every opportunity for me. And,   Bill Fairman 00:07:10 And we, we call that jumping in with both   Wendy Sweet 00:07:12 Feet. Yeah. Yeah. And, and I always ask myself, why in the world are you doing this? And, but I always land on my feet, thanks to God. And you know, the same thing has happened here. We didn't just buy one storage facility. We had to buy two. And, and I'm so glad that we did though, because they've really been very different in the approach. The reason why we bought them were for really two different things. You know, one, one was a little bit bigger. One was, you know, that one's located closer to us. One's located farther away. It just, it's amazing how the two have reacted differently to what we're doing. And I'm kind of doing the same due diligence for both. But one came out to be a whole lot easier to work with, which is the one we didn't think would be than the one that we thought would be the breeze has turned out to be extremely challenging. Let's   Bill Fairman 00:08:17 Let's, let's talk about two. One is more of a conventional way of looking at cell storage all in one   Wendy Sweet 00:08:24 Land. Yeah. That's the one in Crossville, Tennessee.   Bill Fairman 00:08:27 And then the other one in Mexico, Missouri.   Wendy Sweet 00:08:29 Yes. Always wanted to go to Mexico, but not in Missouri, but is,   Bill Fairman 00:08:33 Is several parcels,   Wendy Sweet 00:08:35 Several parcels. And it's in a downtown neighborhood like it's downtown, but it's split up into four different parcels that are all within a block or two of each other. It didn't have a fence around it. They were painted brown and we'd gone in and were camouflaging them. They were camouflaging 'em they're, you know, not, no good lighting the weeds growing up everywhere. And, and so we we've done the rehab side of that almost complete for, for the most part, you know, with the new gravel and drainage and gutters and painting it. And it, it looks like a completely different place and it's now a hundred percent full. So now we're getting in starting to raise the rates and cuz you don't really wanna be a hundred percent full. You wanna be in the mid nineties   Bill Fairman 00:09:33 When this is recorded, we'll leave a link through some before and after   Wendy Sweet 00:09:37 Photo shots. Yeah. I forgot to send Scott some pictures of that and   Jonathan Davis 00:09:41 You don't wanna be a hundred percent full because if you are, you're   Wendy Sweet 00:09:43 Not charging enough. That's exactly right. I'm competitive in the market. Yeah, that's exactly right. It's, I'm glad that I have my hospitality background being in the hotel business and of course have a short term rentals as well because there's things about self storage that are really similar to the hospitality industry. D a little different than your regular long term rental, but very much like your short term, you care about occupancy, you know, driving up the rates on a daily, weekly or monthly basis based on what your occupancy is and what your competitors are doing. When I was in the hotel business, we had one particular hotel in Montgomery, Alabama and comfort in quality in there was a Marriott courtyard and a, a Fairfield all on different corners. And each, each, you know, we were the first ones comfort on that corner. And as everybody built a new hotel, you know, our occupancy was going down.   Wendy Sweet 01:10:42 So we would send the other, we knew nights that that other people were gonna fill up first. So we started sending their front desk people pizzas and say, Hey, we have rooms. So I say that because it's important to understand your competition. Yeah. And what they're doing and be on a friendly basis with them because there are plenty of the newer self storage facilities out there that are full. They, or they don't have the sizes that people need and you want them to recommend, you know, us. Yep. You know, cuz I don't mind being number two. It's okay. You know, we can still number two yeah. Or walling in it. So, so that's been, it's been really unique to me in that it's so much like the hotel business and, and the automation from it is really exciting too, because self storage is exploding. So, so all of the vendors that have to do with self storage, you know, they too are exploding and growing and what they're doing, where, you know, you, you can book a unit on your phone and you're key to get in is on your phone. You tell   Jonathan Davis 01:11:52 Like you can buy, buy like automated drones that when someone like security drones, when someone's on the property, they will circle and go to that's. Right. Like it, it gets   Wendy Sweet 01:12:01 Pretty high tech that's right. It does. Now they're running about $32,000 a pop. So we probably won't be getting any of those anytime soon. Well, but some of the bigger storage, but if you're   Bill Fairman 01:12:10 Hanging out around our facility for no reason, you never know, we may have   Wendy Sweet 01:12:14 One, you hear that buzz above you. Yeah. That's what we're looking for. But it's, it's, it's just amazing how automated it is. And you know, and another thing too, in self storage, you definitely wanna do that. Cost segregation study and take advantage of the, the, you know, tax opportunities that you're gonna have to be able to do that. So, so it has, you know, sell storage has so many different real estate types that are related to other segments of real estate that you're in. And they kind of all come into this one spot, which is really, to me, it's really exciting. I think   Bill Fairman 01:12:53 It's neat. So if you're doing fix and flip and other things and you're having trouble finding contractors and supplies, is it the same for self storage?   Wendy Sweet 01:13:03 It's similar, but not as bad, you know, I'm looking for people who can install fences, I'm looking for a painter, I'm looking for masonry guy that can repair that roofers.   Jonathan Davis 01:13:16 The things that are really like backed up are windows lumber,   Wendy Sweet 01:13:20 Trusses appliance   Jonathan Davis 01:13:22 Appliances. Right.   Wendy Sweet 01:13:23 So I'm not feeling all that you   Jonathan Davis 01:13:26 Concrete slab block and metal   Wendy Sweet 01:13:27 That's right. That's exactly right. And even like, you know, our Crossville Tennessee property had T one 11 siding. I had   Bill Fairman 01:13:37 No   Wendy Sweet 01:13:37 Idea what that is. Well, it's like fake panel. It's like the paneling from the seventies, but it's for the outside of a building. So it's, it's on the, the, you know, where the Eves come to the end. So it's really just on the ends of the building and it's all rotten. It needs to be replaced. And my goal or thought pattern was just to replace it with the same thing. But you know, my roofer comes in and goes, you know, we can replace that siding with metal rather than T one 11. Well, heck yeah. I'd love to have it replaced in metal. It's custom cut. And it's actually a little bit cheaper for us to do it that way and it'll last a lot longer. So, so I'm really, really excited   Bill Fairman 01:14:17 By that. So they using the same materials they would use for a metal roof.   Wendy Sweet 01:14:19 That's exactly right. And we're getting roofs put on, on some of the   Bill Fairman 01:14:23 Building. So corrosion resistant.   Wendy Sweet 01:14:24 Exactly. Exactly. So it works. So, but you know, the first thing I did before we bought these is I immersed myself in first of all, the North Carolina self storage association, a dear friend of mine Wende long invited me to accompany him to go. And it was, you know, just one of the best things I ever did. I'm so grateful that he, he directed me to do do that. And then I went to a bigger self storage convention in Las Vegas. You know, my favorite town, everybody knows I hate Las Vegas, but it's called inside self storage. And that was, you know, really, really good with all of the, the classes, the seminars, the vendors, there were, I don't know, 3000, 4,000 people there. It was really big, but very, and it was interesting to see too, who, who, who, who the owners are, you know, who is it? 52% of the people that own self storage is mom and pop, you know, real, similar to single family, burnt out landlords, you know, and that's who you wanna buy your properties from. So   Bill Fairman 01:15:34 Smaller multifamily too.   Wendy Sweet 01:15:36 Exactly. Exactly. And then you've got, you know, a few co corporations that have, you know, hundreds of facilities and are just doing really, really well.   Bill Fairman 01:15:47 And, and a lot of those are now developing new versus trying buy old. Cause it's cheaper to develop than it's to purchase.   Wendy Sweet 01:15:54 That's exactly right. And what was, and it   Bill Fairman 01:15:57 Functions more like they want it to   Wendy Sweet 01:15:58 Function. That's right. And go ahead, Owen,   Jonathan Davis 01:16:01 To build on that, you know, looking for, you know, those old box stores where they, you know, I think when we were talking with Fernando angel Luci, you know, they to self storage exclusively, I think you said it saves almost six up to 60% of build costs. If you can just get one of those shells at a decent price and go inside there. So you've seen a lot of people do that.   Wendy Sweet 01:16:24 Well, and that's, what's another, you know, we   Bill Fairman 01:16:26 Say, so start looking for coals. Yeah.   Wendy Sweet 01:16:29 Because they're going down. I'm just kidding. No, no, we love go.   Jonathan Davis 01:16:32 But I mean, like I swear, every Kmart is every old Kmart I think is   Wendy Sweet 01:16:36 Yeah. Self support. That's so true. That's, that's very true. And the other thing that, that we talked about when we first started this conversation, excuse me, was we talked about how like, its, if you go into fix and flip now, you know, it can be, get broken down into so many different types of things that you're gonna focus on. Well, self storage is the same way you're gonna have, you know, the self storage that doesn't have the fence around it. It's located kind of in a neighborhood it's, you know, low key a C class is what I would call it. Right. Then you've got your self storage that are a little more uppity. They have the fencing and they're really nice. And that kind of thing. Then you go to your, a class, which is your, you know, five, six story, temperature control, you know,   Bill Fairman 01:17:26 There's like an office building.   Wendy Sweet 01:17:28 Yeah. Yeah. So, so there's variations of that. One of the things that we're really pushing though at this inside cell storage, they really were just starting to talk about RV and boat parking. And you know how you can, if you have solar on the top of your RV cover, you know, if you're gonna build a cover for it, you get a 30% tax abatement for that, that if you're not putting walls on that building, it's not really an improvement.   Jonathan Davis 01:17:54 So it's not tax it doesn't add value to the assessment.   Wendy Sweet 01:17:58 So you don't, don't have to pay more taxes for that. So there's all kinds of little things that you can look for there. But one of the things that I have really learned when I'm looking at new properties is to really search for properties that have land or, or space a certain amount of space. And you need to understand what you need. Like you're gonna have to have 30 feet all around that space for turnaround and back in and that kind of thing. So you wanna make sure that you have space to be able to add our van boat parking and you don't have to have a cover on it. You just, you know, show 'em where they can park and, and you have no overhead for that, but   Bill Fairman 01:18:36 Gravel. Yeah. And that's one of the benefits of not having the big bucks, right. That you're doing or the new development, because they're paying a lot more for the land and they want to utilize it with we'll call it dwellings. Right. But if you're buying a, you know, a mom and pop that's out a little bit, the land was already cheaper. Right. And if they have land there, then you can either have portable units that you can put in there or you can turn it in the boat and RV and   Wendy Sweet 01:19:03 Yeah. And the cool thing about the portable units is portables are just that they're portable. So you can put those units in places where your local zoning won't allow you to do any kind of a permanent structure. So you're allowed to add additional space by having those portable units. But really when you sit back and look at the cost of the portable unit, why not turn it into just parking   Jonathan Davis 01:19:30 Spot? Yeah. The parking spot. I mean, yeah. It'd be beneficial if you have zoning that has like, you know, you know, offsets that are, you know, extreme, like, you know, like in some places it could be like 50 foot. Yeah. It's like, well, you know, 50 feet's a lot. Well, he can get a lot of portable units and 50   Wendy Sweet 01:19:45 Feet. Yeah. So   Jonathan Davis 01:19:46 That, but you know, that, that might be an   Bill Fairman 01:19:48 Opportunity gets back to work with what you have. Yeah. Based on the market conditions. That's   Jonathan Davis 01:19:55 Exactly right. I saw where some someone said we've seen a lot of seller financing for the smaller self storage facilities on the note side. I mean, yeah. I mean, makes sense. I mean, most of those on the smaller ones are, like you said, owned by mom and pop they're already paid for, they either built to themselves are paid it off or inherited it or whatever the case may be. Right. And they're just looking   Bill Fairman 02:20:15 And they're used to the cash flow.   Jonathan Davis 02:20:16 Why not continue cash flow?   Wendy Sweet 02:20:18 Well, and they're smart enough to know that if they, if they get all that money, they're gonna have to pay uncle Sam right off the back, you know, why not taking in increments? And if, you know, push comes to shove and they're not paying me, I just take the facility back.   Bill Fairman 02:20:33 If you go in and improve it and raise the rents. Yeah. And you're not paying, they they've got a place that's worth more money.   Wendy Sweet 02:20:39 Yeah. That wouldn't be mad. So, so some of the, the piles of number twos that I stepped in was, but this one turned out to be a good one was I didn't walk the property properly before we closed do that. How do you   Jonathan Davis 02:20:57 Walk it   Wendy Sweet 02:20:57 Properly? Well, you need to go inside units when you're there. And you should have a map of the units with you when you're doing that. And look for dead space. Like our prop, the property in Mexico, Missouri had 13 more units than we thought. You know, I always love when that,   Jonathan Davis 02:21:20 That that's a good, yeah,   Wendy Sweet 02:21:21 That's a benefit. They actually didn't have doors on 'em that it was just a building that was empty and it looked like it had doors, but it didn't. So, so that's a, that, that was a plus. But the other thing that it, that it hurt by not walking that property is, you know, when you're looking at a property you're looking for damages and things that you're gonna have to do to, to replace, but by not going into the units, I wasn't able to see the terrible job they did by putting a roof and a ceiling and how some of them were leaking. And there was a lot of masonry things on just the insides of the doors that I would not have noticed. I would've noticed had I opened up those doors and, and walked in. So, so   Jonathan Davis 02:22:07 Look at every single unit,   Wendy Sweet 02:22:09 I, I would do everything possible to get, get my eyes on every one of 'em. If I could,   Bill Fairman 02:22:14 Of course, that's hard to, do you have locks from the owners on those doors? You can't get in to see   Wendy Sweet 02:22:18 All yeah, that's true. I mean, it, it takes planning ahead to be able to do that, but plan to be there two or three times to be able to, to stick your head in there. And I know   Jonathan Davis 02:22:27 That I talk with Fernando. I mean, they usually, when they go look at a facility they're, it's like a one or two full   Wendy Sweet 02:22:34 Day. Yeah. They do a good job of due diligence, Fernando and Luci, their company does a great job, job title wealth. Yeah. They do a great job of due diligence. I, I just love what they're doing. The other thing that I can tell you was a real challenge and it still is. I don't quite have my arms around. It is the property in, in Missouri had a software program in place already called web storage, which isn't one that we stayed with. But the other one Crossville, Tennessee was run by the epitome of good old boy. And they literally kept everything on a sheet of paper. Like when somebody pay, they hand write, 'em a receipt, zero, zero software whatsoever. And it has, it has taken a long time to get all of that uploaded correctly. And they weren't even taking debit cards or, or any kind of credit card. They would take cash only. And I think a lot of that had to do with that under the table thing, but we kinda got that. It's amazing track.   Bill Fairman 02:23:44 They have multiple facilities. So if they're doing   Wendy Sweet 02:23:47 Multiple, yeah, yeah. That company that we, that would be hard, keep that we purchase that from actually has four other facilities in the area. And they're all being operated the same way. It blows my mind. It's a lot of work. Well somebody's making necessarily work.   Bill Fairman 02:24:01 I don't know, know if you don't have to   Wendy Sweet 02:24:02 Pay taxes on that gas? Well, when, when we closed on that, there were three people that were five years late or longer three that were, that still had stuff in there. Now we cleaned out a total of 33 units since we've had it. And just a few months of people that were were late, but you know, five years or longer, one guy owned owed $8,000 over $8,000 and, and had never been there. What was his monthly rate? I think he was sitting at 45, 40 $5,   Bill Fairman 02:24:34 Takes a while to get to 8,000 balance of   Wendy Sweet 02:24:37 $45. And the rates had not been increased in three years. And I mean, it's, it's, it's definitely work in progress. In fact, Alex is there now cleaning out three more units today. So we're working that one. It's it's coming along. So understanding the software and the books and that kind of thing. I mean, what, what I got was printed out on a sheet of paper, but it was all faults. It was just all fault. So that, that was a kind of a, a disappointment. And then the other thing that I've run into is the local government in Tennessee has not been very easy to work with in getting our corporation set up and, you know, so we can get our banking. You know, we bought it with one of our companies that has the word trust, cuz we bought it in a trust and they don't like that word trust.   Wendy Sweet 02:25:32 So we've really been going around for almost 45 days now, tell 'em we didn't make that word. I know it's for real. So try just trying to get them to respond to that and get it so we can actually deposit the thousands of dollars in payments that we have sitting on the desk waiting to be deposited is, is kind of frustrating. So those are kind of the, the good, bad and ugly items that I've been dealing with at this point. But I'll tell you, I, you know, I'm really excited about self storage. I'm looking forward to buying two more here real shortly.   Bill Fairman 02:26:07 Wait, wait minute. Before you do that, I want to give you an opportunity. Okay. To give the last word,   Wendy Sweet 02:26:14 Oh,   Bill Fairman 02:26:19 I have to use those graphics whenever I can go ahead.   Wendy Sweet 02:26:22 Okay. It's super istic. They SPOC.   Bill Fairman 02:26:28 So if you were gonna wrap it up with your last phrase yeah. Instead of the word, what would you do?   Wendy Sweet 02:26:33Don't be afraid. Don't be afraid.    Bill Fairman 02:26:37 Says the person that jumps in with both feet. Well,   Wendy Sweet 02:26:40 And I'm still here. I'm still kicking. I've messed up more than most people have been successful, but you know what? You learn from everything that you do.   Bill Fairman 02:26:51 It's called earning why you learned. Yeah.   Wendy Sweet 02:26:54 Right? Yeah. The, the thing is, is, you know, you definitely wanna do your homework, but don't let fear stop you. It's just a few more zeros. And I know everybody goes, whoa, but it it's it's it's well worth it. It's exciting. It's doable. Anybody can do this. Yeah. Anybody can do this. You just need to do your homework and hook up with the right people.   Bill Fairman 02:27:17 And it is very recession resistant.   Wendy Sweet 02:27:19 Yes. Yes.   Bill Fairman 02:27:20 It's low maintenance costs. Once you get everything in place and you can automate a whole lot of it, right?   Wendy Sweet 02:27:28 Yeah. Oh, this is funny. So I love this question. Where are you buying last? The last two? I don't know. We're looking and that's the other thing too, is we can doesn't really matter where it is.   Bill Fairman 02:27:38 We would prefer to be in the   Wendy Sweet 02:27:40 Southeast in the Southeast, cuz that's where we are, but it doesn't really matter. But this other question from Alva.   Jonathan Davis 02:27:46 Yeah. Elder, I was looking at a mom and pop storage unit in the market is close to one of the corporate storage companies. Should I be afraid?   Wendy Sweet 02:27:52 No, no. They've already done all the homework. They've   Jonathan Davis 02:27:55 Done the homework, but, and, and again, that's the, the microcosm of what self storage is. It's not a zip code. It's not a county, it's not a city. It is literally a one to three, three mile radius.   Wendy Sweet 02:28:07 And your customer is not the same customer that the big corporate storage company has   Bill Fairman 02:28:12 Keeping in mind, same customer, the, the big companies they're raising their rates every six months. And you're gonna get people that are saying, all right, I'm done with this. I'm moving to someplace. That's gonna be a little bit cheaper. It may not be as pretty as this one, but we bought just more sense.   Jonathan Davis 02:28:30 We bought probably the ugliest storage units. You could   Wendy Sweet 02:28:32 Totally the ugliest. That's not what brown on brown, what   Jonathan Davis 02:28:36 They look like. It's what's the potential for them.   Wendy Sweet 02:28:38 That's right.   Bill Fairman 02:28:39 That's   Wendy Sweet 02:28:40 Great   Bill Fairman 02:28:41 Question. Yeah, no, that, that is, that is a great question. All right, listen, we need to wrap this thing up because we've been   Jonathan Davis 02:28:50 Great advice   Bill Fairman 02:28:53 Going on and on about this, but we have a lot more, we're gonna do some updates on this as we go forward and let you know what Wendy has stepped in. Because again, she's doing all this for us. So   Jonathan Davis 02:29:04 What's the purpose of the last word. If you have it, no matter who gets to,   Bill Fairman 02:29:11 Okay. Jonathan is now being cut off, cuz I'm going to this camera. Now   Wendy Sweet 02:29:16 Let me get out of the shot.   Bill Fairman 02:29:17 Thank you so much for joining us on the real estate investor show. By the way we are speaking in the, at the quest, excuse me, expo in September. We have a link in the chat over there for a 30% discount firm in 30. So check that out once again. Thanks again for joining us on the real estate investor show hard money for real estate investors. We are Carolina capital management. We are private lenders in the Southeast real estate professionals. If you'd like to like us to take a look at one of your projects, then click on, oh, first you have to go to Carolina, capital Carolina, hard money.com. Yes. What they said and click on the apply. Now, if you are a, what is it? An accredited investor looking for passive returns, click on the accredited investor to have, I am sliding out quickly. He's already on the plane. Thank you. Don't forget the like share subscribe, hit the bell. And don't forget about Wednesdays with Wendy. Have a great week and we'll talk to you later. Bye y'all.

Bill Fairman 00:00:00 On the other. Hello, welcome. Oh, look, Wendy has shown up out in the west somewhere. Oh,   Jonathan Davis 00:00:10 Nice.   Bill Fairman 00:00:12 Her campsite. So this is welcome to this week. And as the headlines say, Zillow reports, the sky is falling in well, right after this message.   Bill Fairman 00:00:49 So looking for, I love it. It's like, did their algorithm tell them that? Yes. And we always believe what Zillows is. Excuse me. So thank you so much for joining us on the real estate investor show hard money for real estate investors. We are Carolina capital management. We are lenders in the Southeast for real estate professionals. If you have a project that you would like us to take a look at, go to Carolina, hard money.com and click on the applying out tab. If you are a passive investor, looking for passive returns, go to the accredited investor tab. Don't forget to like share subscribe, hit the bell, all that good stuff. And don't forget about Wednesdays with Wendy. Wow. That was quick. Okay. So Wendy books, 30 minutes per person on Wednesdays, there's a link to her calendar. Checking out. She's usually booked a couple of months in advance. Now it's three because she took a month off, sorta on a vacation. As you can see, she's at her, what do you call that? Campsite? This,   Wendy Sweet 00:02:01 This is a campsite we're in just outside of Sedona, Arizona in a place called Jerome.   Bill Fairman 00:02:08 Oh, I've heard of that.   Wendy Sweet 00:02:10 Yeah.   Bill Fairman 00:02:12 They not. Have have actual vegetation there and it's not desert. Like   Wendy Sweet 00:02:15 It's just a little bit, most of it's, you know, rock and like that kind of thing. I don't know if you can see all that rock, but it's and it's between a hundred to 110. It's not bad.   Bill Fairman 00:02:33 My first question is, does the air conditioner work   Wendy Sweet 00:02:37 Inside? It does. Yes. It works well. Well,   Bill Fairman 00:02:39 I'm assuming inside, well, let me finish this up. We are speaking at quest expo. So let's plug that real quick. Sounds like the music can't catch up with itself. So quest expo, it's a great place to be. If you wanna learn about self-directed IRAs and how to invest it, we have a, a code for discount firm and 30. And how I'm gonna say is you should go. You should go. You should go.   Jonathan Davis 00:03:29 Yeah. Any kind of investing, note, investing, buying real estate. What have you, I mean, even if you wanna look, I think they even have crypto and gold   Bill Fairman 00:03:39 And oil and gas, oil and gas. Of course it's under attack right now, but still oil and gas. If you wanna be in, you need to be in the energy sector right now. That's the one that's gonna have the most growth either way, whether it's clean renewables or awful fossil fuels that are the most efficient you need to be in energy. Okay. So Wendy, how's your vacation going? Can you hear me?   Wendy Sweet 00:04:10 Yeah, you're kind of going in and out for me and I'm sure it's, it's probably my problem. Cause I'm out in the middle of nowhere. I told you.   Bill Fairman 00:04:20 Okay. It's   Wendy Sweet 00:04:21 It's a connection   Bill Fairman 00:04:23 Stare at me. I'll just move on. Okay. Excuse me. So I, I know we did this last week. I, I I've got another person. I don't want, I, I get a lot of questions from our investors, worried about what's happening with the economy. And they keep seeing all these headlines that the sky has fallen in and you know, it, it bothers 'em and I, and I get that, but they need some help understanding what's really going on in the marketplace.   Jonathan Davis 00:04:58 Yeah. We need to make sure we understand sensationalism and headlines and yeah. You know, like Zillow, the, you know, the housing market is crashing. That's a headline   Bill Fairman 00:05:08 And, and, and don't get me wrong. It's a great way to get eyes on your, on your site. It's we call it click bait. Yeah. Cause you see those headlines, people are gonna click it on automatically. So somehow I ran across this particular video from Darrell minor. He's does a lot of videos on real estate investing real estate in general. And he has a, a course there's his YouTube channel. You can check it out for yourself. And while he's a nice guy, he, he does. If you look at his, what do you call 'em little splash images. It's always, the sky has falling in versus there are a few good points on some of them with some arrows going up, but most of 'em are going down. And, and I get that. He's trying to get eyes on the, on the channel, but I, I wanna help alleviate some folks' fear based on some of the data he's getting from Zillow. Okay. So let's, let's play the first clips Scott,   Video Recording 00:06:13 “You waste it in the housing market is continuing, continuing to go down, down and down, but let's jump right into this. It says housing affordability hits 15 year low as prices. Mortgage rates rise May, 2022 market report. We've known that affordability when it comes to the housing situation is getting ridiculous. It's getting ridiculous. It's getting to a point where no one can afford a home because we have interest rates that are ridiculously high. And what is the number? One thing that I always say for every 2% that the interest rate goes up, you lose $200,000 of buying power. Just think of that. Currently you've lost $200,000 or more in buying power based on these interest rates. And no one wants to go down from a $300,000 home to a hundred thousand dollars home. No one wants that mortgage payments are higher than rent and 45 of the 50 largest us metros up from 22 and 2019. What did they just say?”   Bill Fairman 00:07:17 All right. So we're gonna unpack a little bit of that. Mortgage rates are not ridiculously high.   Jonathan Davis 00:07:24 If anything, they're still ridiculously low. I mean, what's, I think what is it? 7.9 is the historical average of mortgage rates and were at 5.5.   Bill Fairman 00:07:35 Yeah. Now when he did this video in may, the rates had climbed up to in the sixes for a short period of time. So I get that, but they they've settled back down a little bit since then, but   Jonathan Davis 00:07:49 Now comparatively, are they high from historic lows of 2.8? Yeah, yeah, yeah, yeah. Sure. But I mean you, if we only look at, at the market from a, a three year perspective, yeah. We can, we can lose sight really quickly of what's going on and we can get, you know, believing that we are in historical highs. But if you look back, I mean, anything under 8% is still on average low. Yeah.   Bill Fairman 00:08:19 And, and we talked about this before, even if you're at 6% over time, you're, you're paying dollars back that are going down in value versus rents that are continued to go up. If you rent.   Jonathan Davis 00:08:34 Yeah. See what he, you know, inflation, if it continues, you're using dollars today's dollars that stay consistent over the 30 year period to pay down.   Bill Fairman 00:08:44 Yeah. And the last thing I'm gonna say about this is my interest rate was 14 and a half percent. I know I've said this before, when I bought my first house, that was the FHA going rate. So I would've been really happy at that rate now. Yes. Prices have gone up and we need that to try and lower the appreciation rates. Wendy, you got anything to add?   Wendy Sweet 00:09:07 I, if I do, it's probably gonna be choppy. Can you hear me?   Bill Fairman 00:09:11 I can hear you fine for now.   Jonathan Davis 00:09:12 We just, I mean, we just love the background, stay there. Cause we just love the background.   Wendy Sweet 00:09:16 Listen, I'd love to stay here. It's pretty awesome. I, I agree. I think that this guy's just way over the top with him talking about the mortgage rates being so high, cuz it really is. It's like 7.81 since 1971 has been our, our average and that's pretty, that's pretty incredible. And it's way lower than inflation, right?   Bill Fairman 00:09:45 Yeah. Yeah. Currently.   Jonathan Davis 00:09:47 Well, and also, so what, what do you all think about? He said he, I think he said, I always say this for every 2% interest rates rise, you lose $200,000 of buying power. Do you think that's true? Or   Bill Fairman 01:10:04 I don't know. I'd have to calculate it.   Jonathan Davis 01:10:06 I, so   Wendy Sweet 01:10:07 I think that's too.   Jonathan Davis 01:10:08 I think that's too simple of   Bill Fairman 01:10:10 If, if it's 2% on this one and then another 2% on top of the 2%, then it went up now it's 4% higher. So   Jonathan Davis 01:10:18 Well, so I, I think it's, that's too simplistic of a, of a, an explanation. I mean you have   Wendy Sweet 01:10:25 Yeah.   Jonathan Davis 01:10:26 Appreciation. So if, if, if interest rates go up 2% at the same time that you have appreciation at 20% on a house in a year that I think that statement might be true if you have, if you, if rates go up 2% and appreciation on homes are back at their average of, you know, one to 3%, I don't think that's true.   Bill Fairman 01:10:50 Well, he's probably talking about a, a snapshot in time and that that's probably credible. All right, Scott, let's go to the next   Jonathan Davis 01:11:00 One. Scott says we rates artificially low. Yes.    Bill Fairman Yes.   Video Recording 01:11:08 “Appreciation is finally starting to slow easing slightly from 20.9% annual growth in April to 20.7% in may. Yes. And why is that going to happen? Because we are inching closer and closer to a recession. And what you don't want is you don't wanna be left with the hot potato in your hand, ah, with a house that you overpaid for, with the high interest rate that is now worth less than what you bought it for. Hmm. So how does that look? You buy a house for 350,000. The recession hits and you overpaid 50,000 for, so it was really worth 300, but now it's only worth two 50. So now you're a hundred thousand dollars under now. We don't know inventory continues to recover from February lows, but it's still 50% below 2019 levels. Well, I expect that. But remember when everyone was saying inventory is so low, the housing market's gonna go 20, 30, 40%. Like it did year over year, over year, over year for the next five years, those people are crazy. There's no way that the housing market keep continued to go up that fast at that continued rate inventory is going to slow because people are”   Bill Fairman 01:12:27 All right. So let's unpack a couple of this, these statements. I love this man. Have you noticed how he, he was concerned that the appreciation rate was dropping from 20.9% all the way down to 20.7?   Wendy Sweet 01:12:44 Woo.   Bill Fairman 01:12:47 Again, our, the average appreciation.   Jonathan Davis 01:12:51 So   Bill Fairman 01:12:51 He over property since the fifties has been like three and a half percent.   Jonathan Davis 01:12:54 Yeah. So I need, I, I didn't watch these videos. I had no clue that he was, but so I, I nailed it 2% with 20% of   Bill Fairman 01:13:01 Yeah, pretty much. Okay. Another thing was owning a home in a recession. It's gonna drop $50,000 or it's gonna drop in value at all. Scott put up that price draft for me. All right. So here's the us price index since 1900, the year 1900. If you look at this graph, you see one place in the entire history. Well maybe two or   Jonathan Davis 01:13:33 Yeah, but a very major, major one   Bill Fairman 01:13:35 Major in 1990, but there's basically only one place where historically dropped a punch. And that was, you know, the crash in 2008, which was caused by housing. This recession has nothing to do with housing. This recession has to do with policy and energy costs being too high, which is also caused by policy. Of course, some of it has to do with the pandemic. I'm gonna give him credit for that. And the what do you call it? The supply chain issues. Yeah. This is not a housing recession that is going to be coming up. And the, the fed really has no tools in their toolbox other than to raises rates. But this is not a housing recession. Your house is not gonna go down in value. It may be harder to afford a house. I agree. Yeah. Because everything else is costs more too. I, I don't argue with any of that stuff, but you're not gonna buy a house now and expect to have it go down in value. What do you guys think?   Jonathan Davis 01:14:39 No, I mean, so there is yeah, one occurrence in 120 years of, of data where, where values went down, even close to $50,000, like his example one time. And like you said, it was due to what we had the subprime market. I mean, we had, you know, we had tranches of securitizations that were falsified or a lot of data. I mean, it was, it was a housing crisis. Yeah. This is not, I don't think that, I mean, will your home lose value? No. Will it, will it not be worth as much as fast as it has? Yeah. I mean, appreciation has to slow down and inventory is picking up for housing, which will hopefully help bring that, bring that down. Interest rates rising will help bring that down. But to, to say that we're gonna lose value at this point. I, I don't subscribe to that. I don't see any data that would point to that, to that result,   Bill Fairman 01:15:47 Wendy.   Wendy Sweet 01:15:48 Yeah. The thing, the thing that's gonna hurt people is the cost of everything else. That's, that's, what's fallen from the sky is right. The cost of everything else. You know, traveling out west, we've had to fill my car up at least twice a day at $125 a pop. Wow. Well   Bill Fairman 01:16:11 That it costs a lot of money to tow your house around with you.   Wendy Sweet 01:16:14 The, the large, that would be getting eight to nine miles a gallon per gallon. But the, the cost of gas that I've seen coming across the country, the lowest I saw, it was 3 86. Believe it or not. And I've seen it over $5 a gallon. So it's been it's those things that are gonna put the serious dent in everybody's wallets, everything else, food, everything.   Jonathan Davis 01:16:41 Yeah. I mean, we, we said this before, I mean, goods and services and commodities like that, like they, they have to come down and value long before your house ever would. I mean, people, people are still like, I'll give you an example. My LLC bought a, bought a vehicle to buy that vehicle. It had to pay a premium over MSRP because you can't get vehicles right now. And they just increas the premium that they're charging for those vehicles over the MSRP. I think it's now like $10,000 over MSRP. Yeah. So those things have to stop occurring long before housing value will ever get touched because people will not buy cars or new cars long before they'll they'll ever say, I don't need a house.   Bill Fairman 01:17:35 Right. People always need place to leave no matter what. Yeah. Okay. Let's move on to the next one. There Scott,   Video Recording 01:17:42 “Go up guys. Incomes are lagging further behind fast rising mortgage costs leading to the most significant and affordable challenges. In the past 15 years, the latest affordability data available from April show's monthly payments taking about 28% of homeowner's monthly income dangerously close to the 30% threshold beyond which is considered a cost burden. Now we know that guys like we know that we, I did a video on that, where I talked about how close we're getting to individuals, getting to that burden cost. That point where we were in 2008, when people just gave up homes, we're 2% close to that number, guys that should scare you guys and know that something is coming around the corner. You see all of these red flags. There is no way that we're coming around the corner and you see 30,000 flags that are all red and they're all in the bucket of housing market. And you still don't think that there's gonna be a recession. Make it make sense. Although rents have soar since the start of 2021, the rapidly rising cost of a mortgage still make rent, a cheaper option. A typically monthly rent in the United States, basically $2,000. Monthly rents are up 15.9%. The pace of annual rent grows slowed for the third consecutive month. Whoa. Look at that. It's slow. Look at that. It's going down.”   Bill Fairman 01:19:07 Okay.   Bill Fairman 01:19:13 On that one. Okay. There's three things. Bill wants to talk about that one. Okay. Number one, he mentions. Damn I've already forgotten it. All right. So I'll go to number two. Wage Scott, pull up that wage graph I put on here. He is correct. Wages are not keeping up with inflation, but wages are not stagnant. Here's a graph right up through December 20, 21. Do you see any wages going down? No, they're all going up and they're actually going up more than the trend line. So they're actually going up higher than they had been previously. That little dotted line is the trend line from 2019. So they actually increased quite a bit in 2021. Same thing with 2022. I'm assuming, but I can't get the data, but they're still not keeping up with inflation. All right. You can drop that if you like Scott. Yeah. The here's the hyperbole.   Bill Fairman 02:20:18 What do what you, he's talking about with getting up to that 30% of housing costs. This is for new buyers. This is not for people that are already in their houses. There's not gonna be a housing crash for people that currently own their house with the ridiculously low rates that we have. These are people that haven't bought the house yet. This is why it's not affordable. And I get it. There are gonna be people that can't afford houses, but that happens in every market cycle. There's people that are new, new home buyers in that range, they can't afford it. They're gonna have to get their debt down in order to do it. And E even if their debt is complete, their debt free and their housing costs are still at 30% of their total income. They're not gonna qualify for a house unless they borrow less money, put more money down, borrow less money, or find a less expensive home. All that said again, this guy is not falling in.   Jonathan Davis 02:21:20 Yeah, no. I mean, I think did he, did he say that rents are higher than the average   Bill Fairman 02:21:28 Mortgage? Oh yes. In a lot of these cities,   Jonathan Davis 02:21:30 That's not true.   Bill Fairman 02:21:31 Rent rent is higher. And then look all, let's talk about that. Well, if your mortgage is stagnant, but they're still higher than rents, do you think rents are going to go up or down over time?   Jonathan Davis 02:21:43 Correct. They're gonna go up, but maybe I'm wrong here, but I'm pretty, I'm pulling from, from my, my brain here from something I read before, but I thought the average mortgage was $1,800. I don't in the United States. Yeah. I   Bill Fairman 02:21:58 Don't know where he   Jonathan Davis 02:21:59 Got. I'll have to go look that up because if he's saying the average rent is 1927, then the average mortgage is not over $2,000. Now, like the average mortgage in the Northeast probably is if you wanna break it down to regions. But I think if we wash it all together, that's that, I don't think that's a true statement, but let me, let me research that and we'll get back.   Bill Fairman 02:22:22 But yeah, if you're telling people that rents are, it's better to rent because mortgage payments are too high. That's only temporary. If you still buy a house and your mortgage payment is slightly higher than the average rent for that area, eventually the rent is gonna be higher than the mortgage payment cuz the mortgage payment is fixed. Correct. All right, Wendy.   Jonathan Davis 02:22:45 Yeah.   Bill Fairman 02:22:46 All right. So she's just nodding.   Jonathan Davis 02:22:49 Yeah, but I mean, so rents have risen very quickly over a short period of time due to a lot of factors that we've already discussed, will they continue to rise at that rate? No, they, they will not. I mean, I think there's a lot of people and, and I'm, I'm one of 'em they've kind of hit their peak for a little while. I don't think we're going to see, you know, 10 and 15% rent and growth. Sure. Over the next few years, I mean, I don't think that's gonna happen. I think it's gonna be way, way smaller. Sure.   Bill Fairman 02:23:21 And rents don't have to go up quickly, but they will. If you're a smart landlord, you're gonna make sure that your good tenants can stay into place. Yeah. And as inflation continues to go up, I mean, there's, there's some costs that can be passed through. There's some costs that can't be. So you may have to have a little bit less of a margin, but the same holds true the value of your property as the landlord is going up and hopefully you've got your loans locked in. Now it depends. If it's a commercial loan and you have to refinance after a certain period of time, then you're kind of outta luck there. But yeah, people don't wanna evict folks unless they're tearing the place up or not paying. Yeah.   Jonathan Davis 02:24:09 You know, I, I saw an interesting, some data on a graph. I think it's a couple days ago it was showing the trend line between wage growth and housing, you know, value, growth. Right. So from 19, I think it went back to 1980, from 1980 up until 2000 and oh Lord, what was it? It was like 2018, 19. They were pretty consistent. It's only after 2019. The, you know, when we have the pandemic, everything where you see it actually separate where housing values are rising at a much higher trend than, than wages. So it's a very new phenomenon. And what we know about new phenomenons is we don't know. Right. Is it gonna be a trend that continues probably not.   Bill Fairman 02:25:05 Well, this is part of market forces correcting themselves. Yeah. And this is something that's ne needed. So I'm gonna summarize today what we're talking about. Don't, don't pay attention to the headlines. They're generally it's noise. You need to get into the meat of the data. We need a slowdown in the market. We have to, because what has been going on is unsustainable. We need to have at least six months worth of inventory. And I think through most of the country, we're still working on one to two months worth of inventory. And that's why the prices went up so high. They will eventually come back down and we   Jonathan Davis 02:25:45 Don't. They already are. Yeah. We we're already seeing soft. Like we're seeing softening in price points that you don't even, we, we didn't, I didn't even expect we're seeing softening in under two 50 price points. Right. Like I didn't expect that. Well,   Bill Fairman 02:26:00 That that's a little unusual. Yeah. But key is getting, I got something for you. What about the last word? This is for Wendy. Did you see   Wendy Sweet 02:26:20 The graph? Let let's hope it. Yeah. That's really cool. Let's hope it comes across so you can, can you hear me?   Bill Fairman 02:26:27 Yes, I can.   Wendy Sweet 02:26:28 Okay. So shoot. I forgot what I was gonna say now. It was really good. The   Bill Fairman 02:26:35 Graphics blew your mind.   Wendy Sweet 02:26:39 No, we did a, a special show last week on sunrises, where we were talking about the days on market and the number of houses available. And we still only have a little over one month supply in the Charlotte area, which is really low. And somebody was on there from Virginia saying the same thing that their supply is the same. It's it's still at one month where it should be six, six is normal.   Jonathan Davis 02:27:08 Yeah,   Wendy Sweet 02:27:09 That's it. And   Bill Fairman 02:27:09 This is why the trend line that Jonathan was talking about has kind of veered off where the affordability based on income is off, off the track because there was not enough inventory. People were buying stuff up. We have to get it normalized in order to sustain this. And, and the market will fix itself. Eventually. Is there gonna be a little bit of slow nests in the market? Is there gonna be a little bit of pain for a first time home buyers? Absolutely. So, but just hang in there. It's not a market crash. This guy is not falling in. I'm not wearing a helmet.   Jonathan Davis 02:27:47 Well, and I, I just wanna say it's, you know, it's something that I tell my, my nine year old daughter, some, you know, when she wants me to give her an answer, instead of her thinking through it, if, if you want someone else to think for you and give you the answer, they always will. They always will. But what we need to do as savvy, I is not get our information from one source, get our information from multiple sources and use people, industry professionals, or friends or whatever, multiple sounding boards and you know, and pull that information through funnel so that we can pull out the important pieces because yeah, you can watch of a YouTube video and think, well, my house is worth a hundred thousand dollars less than it was two months ago. I'm screwed. That's no, no. Look in, you know, find multiple sources and think through these things and align yourself with people like Wendy or bill, you know, to, to sound, you know, to use as a sounding board, Wednesday with Wendy's with Wendy is a great tool. She is a great sounding board for anything to do with real estate. So utilize those.   Bill Fairman 02:29:07 Absolutely. All right. Well, we're running overtime. Thank you guys for so much for joining us. We are the real estate and investor show hard money for real estate investors. We are Carolina capital management. If I can remember our name,   Jonathan Davis 02:29:22 They put it there on the screen.   Bill Fairman 02:29:24 We are lenders in the Southeast for real estate professionals. If you have a project you'd like us to look at, go to Carolina, hard money.com. Click on the apply. Now tab, if you are a passive investor, looking for passive returns, click on the accredited investor tab. Don't forget to share like subscribe hit the bell. And don't forget about Wednesdays with Wendy. We will see you guys next week. Hope you enjoy your vacation, Wendy. She.  

Visit our website: https://carolinahardmoney.com Rising rates? High Inflation? Now is the time to be doing the best due diligence of your life! Join the Carolina Capital Management team every Thursday at 12:00 PM Eastern for the Real Estate Investor Show - Hard Money for Real Estate Investors. In this episode, Wendy Sweet and Jonathan Davis shared their thoughts on what you should be doing to ensure that you are putting your best foot forward on your investments. Timestamps: 0:01 - Introduction 0:52 - https://www.CarolinaHardMoney.com 1:39 - Wednesday with Wendy: https://meetings.hubspot.com/wendy166... 3:57 - Bubble Market Might Lose 20% of their Value 6:07 - Housing Completion Per Year 8:17 - Fannie Mae Expects Housing Purchases To Drop 10:42 - RE Market Is On Unchartered Waters 11:09 - What Is Data Tape? 12:38 - Importance of Due Diligence 13:10 - What To Do As Investor 13:53 - Are They Putting Bad And Good Mortgage Notes Together? 15:04 - Apartment Complex In Detroit, Should We Invest? 16:52 - An Example Of What Good Due Diligence Can Do For You 22:55 - What Is Subordination And Non-Disclosure Agreement? 27:22 - Carolina Capital Management Fund & Loan Programs - https://www.CarolinaHardMoney.com 28:31 - The 3rd Annual Quest Expo - Sept 23, 24, & 25, 2022 - https://www.QuestExpo.com Promo Code: FAIRMAN30 - 30% discount Listen to our Podcast: https://thealternativeinvestor.libsyn... YouTube Channel: https://www.youtube.com/channel/UCYzC... Facebook: https://www.facebook.com/CarolinaHard... https://youtu.be/L6hXoZYNZOw

Visit our website: https://carolinahardmoney.com The Most Important Investment Ever! Do you invest in yourself? Join the Carolina Capital Management team every Thursday at 12 PM Eastern for the Real Estate Investor Show - Hard Money For Real Estate Investors! In this episode, Bill Fairman and Wendy Sweet shared their biggest lessons learned from last week's Freedom Founders Mastermind event. Timestamps: 0:01 - Introduction: Do You Invest In Yourself? 1:19 - https://www.CarolinaHardMoney.com 1:59 - Wednesday with Wendy: https://meetings.hubspot.com/wendy166... 4:09 - https://www.PuntaGorda2022.com 5:09 - The 3rd Annual Quest Expo - Sept 23, 24, & 25, 2022 - https://www.QuestExpo.com 5:32 - Promo Code: FAIRMAN30 - 30% discount 6:08 - Freedom Founders Mastermind Event 6:37 - “How Leadership Actually Works” by Larry Yatch 8:05 - “Inflation” by David Phelps 9:09 - “The Apprentice Model” by David Phelps 9:35 - Entrepreneurialism: Things You Will Never Learn In School 12:00 - What Is Your Freedom Number And How To Achieve It 14:23 - Reduce Your Burn Rate 15:54 - Reduce Your Debt or Mortgage 16:33 - Look Into Your Investment Portfolio And What Kind Of Cash Flow You Are Getting Back 17:52 - QJO Investment Tool 20:24 - Identify The Three Most Important Things You Need To Do For The Day 21:38 - Let The Professional Do It 26:00 - Sonrisers Investment Group - https://www.facebook.com/groups/12438... Listen to our Podcast: https://thealternativeinvestor.libsyn... YouTube Channel: https://www.youtube.com/channel/UCYzC... Facebook: https://www.facebook.com/CarolinaHard... Wednesday's With Wendy: https://meetings.hubspot.com/wendy166...  

Visit our website: https://carolinahardmoney.com Join the Carolina Capital Management team every Thursday at 12:00 PM Eastern for the Real Estate Investor Show - Hard Money for Real Estate Investors. In this episode, Bill Fairman, Wendy Sweet, and Jonathan Davis will be discussing the latest breaking news in the real estate world and what might the future holds for short-term rentals. Timestamps: 0:01 - Introduction 1:10 - https://www.CarolinaHardMoney.com 1:40 - Wednesday with Wendy: https://calendly.com/wendysweet/wedne... 2:27 - The 3rd Annual Quest Expo - Sept 23, 24, & 25, 2022 - https://www.QuestExpo.com 2:46 - Promo Code: FAIRMAN30 - 30% discount 3:03 - How To Put Mobile Homes On Land - June 22 & 25, 2022 - https://www.PuntaGorda2022.com 4:13 - Breaking News 5:18 - Unemployment and Labor News 8:56 - https://www.Stessa.com - Free Management Software 9:50 - Recession Red Flags 12:49 - Top Ten Popular Markets 14:45 - Place Where Home Price Drops In April 2022 18:24 - The Future of Short Term Rentals 19:45 - Common Mistakes when Investing in Short-Term Rental Properties 22:35 - It Always Comes Down To Buying It Right 25:22 - Things To Keep In Mind 26:56 - Most People Travel For Business Not For Fun Listen to our Podcast: https://thealternativeinvestor.libsyn... YouTube Channel: https://www.youtube.com/channel/UCYzC... Facebook: https://www.facebook.com/CarolinaHard... https://youtu.be/0jJAeCQ0FiY

Have you ever experienced Failure? Bill Fairman and Wendy Sweet, sibling principles of Carolina Capital Management, have a combined 35+ years of conventional real estate sales and finance experience. They, along with President/CEO Jonathan Davis, serve as consultants for investors, guiding them to network with other investors and educating them in locating and structuring transactions. We put People and Principles ahead of Profit--always. Listen and subscribe to our Podcast: https://thealternativeinvestor.libsyn.com/rss Visit our Website: https://carolinahardmoney.com Facebook: https://www.facebook.com/CarolinaHardMoney/ https://youtu.be/ZKhpF-i0Eq4

Do I need to have a job and provable income in order to refinance with a broker? Refinance Options? Bill Fairman and Wendy Sweet, sibling principles of Carolina Capital Management, have a combined 35+ years of conventional real estate sales and finance experience. They, along with President/CEO Jonathan Davis, serve as consultants for investors, guiding them to network with other investors and educating them in locating and structuring transactions. We put People and Principles ahead of Profit--always. Listen and subscribe to our Podcast: https://thealternativeinvestor.libsyn.com/rss Visit our Website: https://carolinahardmoney.com Facebook: https://www.facebook.com/CarolinaHardMoney/  

Hard Money Exit Strategies - Carolina Hard Money for Real Estate Investors Bill Fairman and Wendy Sweet, sibling principles of Carolina Capital Management, have a combined 35+ years of conventional real estate sales and finance experience. They, along with President/CEO Jonathan Davis, serve as consultants for investors, guiding them to network with other investors and educating them in locating and structuring transactions. We put People and Principles ahead of Profit--always. Listen and subscribe to our Podcast: https://thealternativeinvestor.libsyn.com/rss Visit our Website: https://carolinahardmoney.com Facebook: https://www.facebook.com/CarolinaHardMoney/

Can I get an example of what the monthly payments would be for a 100k house loaned at 90k with 10k down Bill Fairman and Wendy Sweet, sibling principles of Carolina Capital Management, have a combined 35+ years of conventional real estate sales and finance experience. They, along with President/CEO Jonathan Davis, serve as consultants for investors, guiding them to network with other investors and educating them in locating and structuring transactions. We put People and Principles ahead of Profit--always. Listen and subscribe to our Podcast: https://thealternativeinvestor.libsyn.com/rss Visit our Website: https://carolinahardmoney.com Facebook: https://www.facebook.com/CarolinaHardMoney/  

State of the Industry Visit our website: https://carolinahardmoney.com Bill Fairman, Wendy Sweet, and Jonathan Davis discuss the state of Real Estate investing and Passive investing in Funds. What's going on? Houses sitting on the market longer? Interest rates rising in response to inflation? Timestamps: 0:01 - Introduction: What's Going On In the Real Estate Market? 1:24 - https://www.CarolinaHardMoney.com 1:40 - Wednesday with Wendy: https://calendly.com/wendysweet/wednesdays-with-wendy 2:49 - We are now available on www.Rumble.com 3:25 - State of the Industry 6:32 - Business is booming 7:17 - Non-Qualifying Loans 12:38 - Leverage is good because it creates assets. 17:05 - What happens when we are in a higher interest rates environment? 19:36 - Large institutions continue buying homes. 21:58 - GEP of the month: 7.2% Inflation Rate 25:11 - Summary of the State of the Industry 26:12 - How long will prices continue to rise? 29:00 - Attend the Sonrisers (FB Group) every Friday at 7:30am ET - https://www.facebook.com/groups/124386431440487 30:37 - Every change is an opportunity. Listen to our Podcast: https://thealternativeinvestor.libsyn.com/ YouTube Channel: https://www.youtube.com/channel/UCYzCFOvEt2n9TchgECLwpww/ Facebook: https://www.facebook.com/CarolinaHardMoney/ https://youtu.be/UCnxYfwQzp0   

Hard Money and Legal Entities Some Hard Money Lenders do not ask for personal credit. Also, some Hard Money Lenders will not lend, if you don't have a legal entity. Why? Bill Fairman and Wendy Sweet, sibling principles of Carolina Capital Management, have a combined 35+ years of conventional real estate sales and finance experience. They, along with President/CEO Jonathan Davis, serve as consultants for investors, guiding them to network with other investors and educating them in locating and structuring transactions. We put People and Principles ahead of Profit--always. Listen and subscribe to our Podcast: https://thealternativeinvestor.libsyn.com/rss Visit our Website: https://carolinahardmoney.com Facebook: https://www.facebook.com/CarolinaHardMoney/  

Is there a step-by-step guide on your channel? Bill Fairman and Wendy Sweet, sibling principles of Carolina Capital Management, have a combined 35+ years of conventional real estate sales and finance experience. They, along with President/CEO Jonathan Davis, serve as consultants for investors, guiding them to network with other investors and educating them in locating and structuring transactions. We put People and Principles ahead of Profit--always. Listen and subscribe to our Podcast: https://thealternativeinvestor.libsyn.com/rss Visit our Website: https://carolinahardmoney.com Facebook: https://www.facebook.com/CarolinaHardMoney/  

What is the interest rate range for commercial loans? Bill Fairman and Wendy Sweet, sibling principles of Carolina Capital Management, have a combined 35+ years of conventional real estate sales and finance experience. They, along with President/CEO Jonathan Davis, serve as consultants for investors, guiding them to network with other investors and educating them in locating and structuring transactions. We put People and Principles ahead of Profit--always. Listen and subscribe to our Podcast: https://thealternativeinvestor.libsyn.com/rss Visit our Website: https://carolinahardmoney.com Facebook: https://www.facebook.com/CarolinaHardMoney/   

Which loan do you use most frequently? Bill Fairman and Wendy Sweet, sibling principles of Carolina Capital Management, have a combined 35+ years of conventional real estate sales and finance experience. They, along with President/CEO Jonathan Davis, serve as consultants for investors, guiding them to network with other investors and educating them in locating and structuring transactions. We put People and Principles ahead of Profit--always. Listen and subscribe to our Podcast: https://thealternativeinvestor.libsyn.com/rss Visit our Website: https://carolinahardmoney.com Facebook: https://www.facebook.com/CarolinaHardMoney/   

How long did you hold this property before you were able to refinance, and what were you paying monthly to the Hard Money Lender. Best Time to Refinance? - Carolina Hard Money for Real Estate Investors Bill Fairman and Wendy Sweet, sibling principles of Carolina Capital Management, have a combined 35+ years of conventional real estate sales and finance experience. They, along with President/CEO Jonathan Davis, serve as consultants for investors, guiding them to network with other investors and educating them in locating and structuring transactions. We put People and Principles ahead of Profit--always. Listen and subscribe to our Podcast: https://thealternativeinvestor.libsyn.com/rss Visit our Website: https://carolinahardmoney.com Facebook: https://www.facebook.com/CarolinaHardMoney/  

Can I buy a house at auction with hard money and refinance with a traditional lender? Bill Fairman and Wendy Sweet, sibling principles of Carolina Capital Management, have a combined 35+ years of conventional real estate sales and finance experience. They, along with President/CEO Jonathan Davis, serve as consultants for investors, guiding them to network with other investors and educating them in locating and structuring transactions. We put People and Principles ahead of Profit--always. Listen and subscribe to our Podcast: https://thealternativeinvestor.libsyn.com/rss Visit our Website: https://carolinahardmoney.com Facebook: https://www.facebook.com/CarolinaHardMoney/

How much should I loan when starting out? Bill Fairman and Wendy Sweet, sibling principles of Carolina Capital Management, have a combined 35+ years of conventional real estate sales and finance experience. They, along with President/CEO Jonathan Davis, serve as consultants for investors, guiding them to network with other investors and educating them in locating and structuring transactions. We put People and Principles ahead of Profit--always. Listen and subscribe to our Podcast: https://thealternativeinvestor.libsyn.com/rss Visit our Website: https://carolinahardmoney.com Facebook: https://www.facebook.com/CarolinaHardMoney/  

Should I use hard money even if I have access for funds thru HELOC? Bill Fairman and Wendy Sweet, sibling principles of Carolina Capital Management, have a combined 35+ years of conventional real estate sales and finance experience. They, along with President/CEO Jonathan Davis, serve as consultants for investors, guiding them to network with other investors and educating them in locating and structuring transactions. We put People and Principles ahead of Profit--always. Listen and subscribe to our Podcast: https://thealternativeinvestor.libsyn.com/rss Visit our Website: https://carolinahardmoney.com Facebook: https://www.facebook.com/CarolinaHardMoney/

Do you do hard money lending nationwide? Bill Fairman and Wendy Sweet, sibling principles of Carolina Capital Management, have a combined 35+ years of conventional real estate sales and finance experience. They, along with President/CEO Jonathan Davis, serve as consultants for investors, guiding them to network with other investors and educating them in locating and structuring transactions. We put People and Principles ahead of Profit--always. Listen and subscribe to our Podcast: https://thealternativeinvestor.libsyn.com/rss Visit our Website: https://carolinahardmoney.com Facebook: https://www.facebook.com/CarolinaHardMoney/

Will Hard Money Lenders Provide You Construction Loans? Real Estate Investors https://youtu.be/TvGitW_I9X8 Bill Fairman and Wendy Sweet, sibling principles of Carolina Capital Management, have a combined 35+ years of conventional real estate sales and finance experience. They, along with President/CEO Jonathan Davis, serve as consultants for investors, guiding them to network with other investors and educating them in locating and structuring transactions. We put People and Principles ahead of Profit--always. Listen and subscribe to our Podcast: https://thealternativeinvestor.libsyn.com/rss Visit our Website: https://carolinahardmoney.com Facebook: https://www.facebook.com/CarolinaHardMoney/ https://youtu.be/TvGitW_I9X8

Do You Need a Real Estate License To Be a Real Estate Investor? Bill Fairman and Wendy Sweet, sibling principles of Carolina Capital Management, have a combined 35+ years of conventional real estate sales and finance experience. They, along with President/CEO Jonathan Davis, serve as consultants for investors, guiding them to network with other investors and educating them in locating and structuring transactions. We put People and Principles ahead of Profit--always. Listen and subscribe to our Podcast: https://thealternativeinvestor.libsyn.com/rss Visit our Website: https://carolinahardmoney.com Facebook: https://www.facebook.com/CarolinaHardMoney/ https://youtu.be/c62RygFe2V4

Visit our website: https://www.CarolinaHardMoney.com Join us LIVE every Thursday at 12:00 PM Eastern for the Real Estate Investor Show - Hard Money for Real Estate Investors. This week, Bill Fairman and Wendy Sweet are discussing the current state of the real estate industry. Timestamps: 0:01 - Introduction: Real estate market update 1:00 - https://www.CarolinaHardMoney.com 1:55 - Wednesday with Wendy: https://calendly.com/wendysweet/wedne... 4:05 - Self-storage industry is booming 6:39 - Breaking News! 6:56 - 30-year Fixed Mortgage Rates are only 10 basis points short of 4% 7:50 - Increased in short-term rates 11:50 - Inflation will continue. 14:14 - Do not worry about residential housing 14:47 - Thank God For Bitcoin! - book 17:26 - CCM's investment funds 18:55 - Look for cash-flowing assets like real estate 19:53 - Why is it better to use other people's money. Carolina Capital is a hard money lender serving the needs of the “Real Estate Investor” and the "Small Builder" borrower who is striving to build wealth and generate income for themselves and their families. We offer “hard money rehab loans” and "Ground-up Construction Loans" for investors only in NC, SC, GA, VA, and TN (some areas of FL, as well). As part of our business practices, we also serve as consultants for investors guiding them to network with other investors and educating them in locating and structuring transactions. Rarely, if ever, will you find a hard money lender willing to invest in your success like Carolina Capital Management. As part of our business practices, we also serve as consultants for investors guiding them to network with other investors and educating them in locating and structuring transactions. Rarely, if ever, will you find a hard money lender willing to invest in your success like Carolina Capital Management. Listen to our Podcast: https://thealternativeinvestor.libsyn.com/ Visit our website: https://carolinahardmoney.com YouTube Channel: https://www.youtube.com/channel/UCYzC... Facebook: https://www.facebook.com/CarolinaHard...

Join the Carolina Capital team every Thursday at 12 pm Eastern for the Real Estate Investor Show - Hard Money for Real Estate Investors! This week, David Richter joins Bill Fairman, Wendy Sweet, and Jonathan Davis to talk about his new book “Profit First for Real Estate Investing. David Richter is an active real estate investor who has been essential in closing over 850 deals which include wholesale, turnkey, BRRRR, owner finance, rentals, lease options, and any other exit strategy you can think of. While growing and building a real estate business from 5 deals a month to over 25 deals a month, he realized that as much money was coming in, it was going right out. With the unique opportunity of being in every seat like a real estate investor, he found a calling to the company's finance seat to help them see where their money was really going. David has helped real estate companies completely turn around from going out of business to building cash reserves through his profit advising company Simple CFO Solutions, LLC. His goal in life is to completely transform the Real Estate Investing industry when it comes to how real estate investors view their finances and – bring them true financial clarity and freedom. Timestamps: 0:01 - Introduction 1:30 - https://www.CarolinaHardMoney.com 1:46 - https://calendly.com/wendysweet/wedne... 3:21 - Today's guest: David Richter 4:59 - How David Richter got started in the real estate business. 8:58 - It's amazing what knowing the numbers can do for you. 10:03 - Profit First for Real Estate Investing 13:58 - What's your relationship with Mike Michalowiz? 17:26 - Why you need to be in a mastermind event. 18:31 - Official launch of the book: Profit First for Real Estate Investing 19:01 - Key points that differentiate the Profit First for Real Estate Investing book from the original book. 23:12 - Connect with David Richter: https://www.SimpleCFOSolutions.com 27:58 - Next Show: Passive Accredited Investor Show - https://youtu.be/PDWh1bUbLMA Carolina Capital is a hard money lender serving the needs of the “Real Estate Investor” and the "Small Builder" borrower who is striving to build wealth and generate income for themselves and their families. We offer “hard money rehab loans” and "Ground-up Construction Loans" for investors only in NC, SC, GA, VA, and TN (some areas of FL, as well). As part of our business practices, we also serve as consultants for investors guiding them to network with other investors and educating them in locating and structuring transactions. Rarely, if ever, will you find a hard money lender willing to invest in your success like Carolina Capital Management. Listen to our Podcast: https://thealternativeinvestor.libsyn... Visit our website: https://carolinahardmoney.com YouTube Channel: https://www.youtube.com/channel/UCYzC... Facebook: https://www.facebook.com/CarolinaHard...

Join the Carolina Capital team every Thursday at 1 pm Eastern for the Passive Accredited Investor Show! This week Bill Fairman, Wendy Sweet & Jonathan Davis give you an overview of investing in Private Placements. Different types of private placements and what numbers are important to you. To be successful in your real estate investment you have to know and understand your numbers. - Wendy Sweet   Timestamps: 0:01 - Introduction: “Numbers on Funds & Investments” 0:54 - https;//www.CarolinaHardMoney.com 1:09 - https://calendly.com/wendysweet/wednesdays-with-wendy 1:59 - https://www.WizeWomenExpo.com/Home - Oct 22nd & 23rd (Short-term Rentals) 5:33 - Investing in Private Placements 6:03 - Importance of Knowing and Understanding your Numbers 8:10 - Stock market vs. Visionaries 10:06 - What is a Private Placement? 13:05 - What is not going to change? 14:12 - Benefits of short-term loans 15:35 - Call options in long-term loans 19:18 - What is the purpose of your investments? 21:20 - Is there life in your investments? 22:54 - What is Compound Interest? 23:50 - Prepare for exit strategies 25:05 - Return of Investment   Carolina Capital is a hard money lender serving the needs of the “Real Estate Investor” and the "Small Builder" borrower who is striving to build wealth and generate income for themselves and their families. We offer “hard money rehab loans” and "Ground-up Construction Loans" for investors only in NC, SC, GA, VA, and TN (some areas of FL, as well).   As part of our business practices, we also serve as consultants for investors guiding them to network with other investors and educating them in locating and structuring transactions. Rarely, if ever, will you find a hard money lender willing to invest in your success like Carolina Capital Management.   Listen to our Podcast: https://thealternativeinvestor.libsyn.com/ Visit our website: https://carolinahardmoney.com YouTube Channel: https://www.youtube.com/channel/UCYzCFOvEt2n9TchgECLwpww/ Facebook: https://www.facebook.com/CarolinaHardMoney/

Big money can be made in short-term rentals, but the properties don't have to be where you typically think of as a vacation home. Sometimes small-town short-term rentals are the sweet spot you need to succeed. On today's episode, we talk with Wendy Sweet on her short-term rental strategy and how you can find and fund a rental in today's competitive market. Short-term rentals like those you see on AirBnB or VRBO should be ran differently than a standard long-term rental. We discuss with Wendy how she invests and operate her rentals in small towns, how she analyzes potential deals and runs comps, the differences between a fix and flip and a long-term rental compared to a short-term rental, and the must have amenities and features you should prioritize at your property. Wendy also shares how to position yourself for success when it comes to qualifies for a short-term rental loan. Wendy Sweet has been lending money to investors since 2001 as both a conventional lender and Hard Money lender. In 2008, she along with countless others tossed conventional lending to the trash pile. She dug in by growing her Hard Money Company offering funds to the investors who were able to navigate the changing world of real estate. She and her partner who is also her brother, Bill Fairman, have been successfully lending money primarily in North and South Carolina to investors, rehabbers and builders. They now manage a real estate fund for accredited investors in addition to brokering loans for those with money to invest. Wendy has been a licensed real estate broker in both Carolinas since 1981 and her side gig is fix n refi short-term Rentals. She combines her selling knowledge with her long-time lending expertise to provide top-notch service to her borrowers and investor lenders. Their goal is to guide and assist like-minded people to build their wealth allowing them to impact the lives of family, friends, and community by building wealth through a proven lending model in the Carolina's while providing strong returns for real estate investors. On today's episode, we discuss a ton with Wendy including: How to analyze a potential short-term rental Why a cleaner is such an important part of a short-term rental team Where to save and where to splurge when renovating a short-term rental How to ensure you will qualify for the proper lending needed for a vacation rental The sweet spot in short-term rental investing Books/Resources Who Not How by Dan Sullivan The Richest Man Who Ever Lived by Steven K. Scott   Contact Information wendy@carolinahardmoney.com sweetshorttermrentals.com   InvestHER Community Our mission is to support and inspire women real estate investors around the globe to live a financially free and balanced life. We are dedicated to creating empowering online and in person communities where women have a non-intimidating environment to ask questions and receive the support they need. Our vision is to see all woman investors achieve her financial freedom goals on her own terms. How To Join the InvestHER Movement   1)  The Real Estate InvestHER Podcast - The weekly show details the journey of some of the most amazing women real estate investors around the world, who open up their lives and share practical and strategic tools for growing a rental portfolio, flipping houses and the mindset that allows them to run a successful investing business while taking care of their families and most importantly taking care of themselves.    Subscribe via Itunes  Subscribe via Android  Subscribe via Stitcher 2)  InvestHER Community on Facebook  We have 2k+ members in our Facebook InvestHER Community (and growing!) This is a safe place for women to ask real estate investing questions and gain the support they need to achieve their goals!   3) InvestHER Meetups Around the Globe We have over 4k+ meetup members attending close to 25 InvestHER Meetups across the country and Canada.  Meetups are being held monthly by experienced InvestHER Leaders! Learn more about our InvestHER leaders, meetup locations, and how to become an InvestHER Leader HERE! Follow us on: Facebook: @therealestateinvesther Instagram: @therealestateinvesther Learn more about your ad choices. Visit megaphone.fm/adchoices

Romany is a magic maker, both through illusions and by manifesting her dreams. A truly inspirational woman who shares her incredible story of courage, determination and resilience. Romany shares in her book of her struggles with an eating disorder and how she overcame this to follow her dreams of becoming a magician and ultimately the first and only woman to ever win the World Magic Awards in Las Vegas. Pre-covid, Romany was touring the world performing her one woman magic show on luxury cruise ships and international shows. In 2018, she wrote “Spun Into Gold - The Secret Life of a Female Magician” which gives an honest account of her journey to overcome her eating disorder and mental health issues and ultimately breaking the glass ceiling of a predominantly male dominated industry. Romany also shares her experiences with peri-menopause and how she was able to understand her symptoms through MyMenopauseTransformation Program with Dr Wendy Sweet from Episodes 1 and 2 of the podcast. Showreel | BBC World Service Documentary | Hollywood Magic Castle | Spun Into Gold on USA Amazon | Spun Into Gold on UK Amazon INSTAGRAM LINKEDIN --- Send in a voice message: https://anchor.fm/tracy-minnoch/message Support this podcast: https://anchor.fm/tracy-minnoch/support

Welcome to this episode of Sexy Ageing where we unpack the hormonal challenges to our bodies. This is the SECOND of TWO episodes with Dr. Wendy Sweet, PhD, Founder of MyMenopauseTransformation Program. Wendy has worked in the health and exercise industry for over 30 years. Originally an ICU Nurse, she re-trained and pioneered the personal training industry in New Zealand. Wendy went on to lecture in sport, exercise, nutrition and health physiology and undertook her Masters degree in behavioural lifestyle change. She then pursued her doctoral studies at the Faculty of Health, Sports and Human Performance at Waikato University focusing on better understanding of how women perceive ageing and the role of exercise in the stages of menopause. Wendy's own journey through peri-menopause, menopause and post menopause provide authenticity and science to her interviews. This episode will focus on how hormonal changes affect how our bodies respond to exercise. www.mymenopausetransformation.com A word from Wendy - "What I discovered was that our menopause transition, when we go into the final hormonal changes that herald in the end of our biological reproductive years, is the time to change our lifestyle in readiness for the next 20-30 years of living we still have to enjoy. In a different hormonal environment, what we have done in the past to manage our health, energy and our weight, simply may not work anymore. Not many health coaches and other professionals understand this, because there has been very little research on the menopause transition and lifestyle changes that we need to make to help us get ready for our future years. When, through my women's health research, I looked at many of the symptoms that women experience during menopause, I realised that this is the time of our lives that our health can begin to change and our menopause symptoms may become worse. This happened to me too, so I hope that you enjoy what I have to tell you in this podcast with Tracy Minnoch" --- Send in a voice message: https://anchor.fm/tracy-minnoch/message Support this podcast: https://anchor.fm/tracy-minnoch/support

Welcome to this episode of Sexy Ageing where we unpack the hormonal challenges to our bodies. This is the FIRST of TWO episodes with Dr. Wendy Sweet, Founder of MyMenopauseTransformation Program. Wendy has worked in the health and exercise industry for over 30 years. Originally an ICU Nurse, she re-trained and pioneered the personal training industry in New Zealand. Wendy went on to lecture in sport, exercise, nutrition and health physiology and undertook her Masters degree in behavioural lifestyle change. She then pursued her doctoral studies at the Faculty of Health, Sports and Human Performance at Waikato University focusing on better understanding of how women perceive ageing and the role of exercise in the stages of menopause. Wendy's own journey through peri-menopause, menopause and post menopause provide authenticity and science to her interviews. This episode will focus on unpacking how our hormones change through peri-menopause, menopause and post-menopause and why SLEEP is so important. A word from Wendy - "what I discovered was that our menopause transition, when we go into the final hormonal changes that herald in the end of our biological reproductive years, is the time to change our lifestyle in readiness for the next 20-30 years of living we still have to enjoy. In a different hormonal environment, what we have done in the past to manage our health, energy and our weight, simply may not work anymore. Not many health coaches and other professionals understand this, because there has been very little research on the menopause transition and lifestyle changes that we need to make to help us get ready for our future years. When, through my women's health research, I looked at many of the symptoms that women experience during menopause, I realised that this is the time of our lives that our health can begin to change and our menopause symptoms may become worse. This happened to me too, so I hope that you enjoy what I have to tell you in this podcast with Tracy Minnoch." www.mymenopausetransformation.com --- Send in a voice message: https://anchor.fm/tracy-minnoch/message Support this podcast: https://anchor.fm/tracy-minnoch/support

Wendy is a veteran in the real estate industry, sporting a 30-year career that ranges from an agent, a mortgage broker, and now together with her brother, they currently run a hard money lending fund for residential and commercial projects throughout the Carolinas. Bill Fairman has 30 years of mortgage experience that includes residential and commercial, the vast majority of that time spent in the wholesale space. He has had a unique opportunity to be involved in literally thousands of mortgage transactions. Thus, he has seen almost every type of scenario play out, both good and bad, giving him a unique depth of experience in the real estate investment space.   [00:01 – 05:01] Opening Segment I introduce and welcome our guests, Wendy Sweet and Bill Fairman They talk about how their hard money lending business is fairing in this pandemic [05:02 – 27:11] The Brother and Sister Duo Wendy and Bill talk about their backgrounds They talk about what they do in Carolina Capital Management The story behind their business How hard money lending works They share what it's like being business partners with your siblings The advantages and disadvantages  [27:12 – 35:37] Looking for the Right Partners Are you looking for partners? Listen to Wendy's and Bill's tips for you! Their advice for both active and passive investors [35:38 – 46:48] Raising Capital Improve your skill to raise capital with Wendy's and Bill's advice [46:49 – 51:28] Wednesdays with Wendy Wendy talks about Wednesdays with Wendy Teaching and sharing her knowledge to help fellow real estate enthusiasts  Having the mindset of abundance [51:29 – 56:43] The Contrarian 3-Pack What would you say is the most contrarian investment you've made? Making loans on used trucks What's your favorite activity to do with your friends and family outside of work? Bill: Deep sea fishing with my brother and nephew Wendy: Meditate What actions, whether within work or family, offer you the most fulfillment in life? Our business is our ministry. We have had a lot of opportunities to touch lives with what we do. Get in touch with Wendy and Bill. See the links below.   Tweetable Quotes: “Our attitude is not, you know, we need money from you. It's more like, will you allow us to help you build wealth, and we really approach it from that mindset.” – Wendy Sweet “We know that what we have to offer is helping someone else improve their life.” – Wendy Sweet  “There's plenty of stuff that's outside of your control anyway. All you can do is control the controllables that you can control.” – Bill Fairman    Resources Mentioned: https://www.linkedin.com/company/carolina-hard-money/ (Carolina Capital Management) https://www.facebook.com/groups/124386431440487/ (Sonrisers (Facebook Group))   Get in touch with Wendy and Bill at their websitehttp://carolinahardmoney.com/ ( http://carolinahardmoney.com/). Send Wendy an email at wendy@carolinahardmoney.com LEAVE A REVIEW + help the podcast grow by sharing it with your friends, family, or someone in need. Follow me on https://www.linkedin.com/in/joblanto/ (LinkedIn) or visit our http://contrariancashflow.com/ (website) to know more.   Think Different. Earn Different. Live Fulfilled.

Masterminds are a huge part of the success that Wendy Sweet, CEO of Carolina Hard Money, has had in her real estate journey. The brainpower in a mastermind creates an environment for real estate business owners to get out of working in their business and work on their business with the help of those in the room.

Sites like AirBnB, HomeAway and the like are popping up and being used more than ever. Many people believe that they need to be in high traffic cities like LA, NY, Miami, etc, in order to take advantage of owning a short term rental property. Wendy Sweet, Principle of Carolina Hard Money, talks with Jason Hartman about how she's making her AirBnBs thrive out in "the middle of nowhere" and some of her pricing tips and tricks to make her short term rental profits double those of her single family long term rental properties. Key Takeaways: [1:42] Who are the AirBnB tenants in the middle of nowhere? [4:32] Wendy's strategy for putting her homes on the market [7:07] Wendy's pricing strategy for filling any vacancies, and how AirBnB helps with it [12:42] Wendy's experience experimenting with AirBnB's Smart Pricing software [15:20] The one problem guest Wendy has had so far [18:37] How technology can make being a Short Term Rental host possible from long distance, and whether Wendy is using any currently [22:28] Comparing Wendy's experience with long term vs short term rentals Website: www.CarolinaHardMoney.com