Passive Income, Active Wealth - Hard Money for Real Estate Investing

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.

Bill Fairman (00:01): Greetings, everyone. We are live. Thank you for joining us. Wendy will not be with us today. She is currently at, I don't know, 30,000 feet on, on an airplane. So we're gonna talk about the year end review, even though the year isn't over with yet, but I don't know what much more will transpire between now and the first. So we're gonna, I'm do a, I'm, we're in a review today and we'll get to that right after. It's funny, that graphic we're showing the, the passive income gang. Yeah. With all the money flying. I'm going, that looks kinda active to me. , Jonathan Davis (00:59): He makes so much money passively, he just actively throws it away. Is that what Yeah, I guess that's Bill Fairman (01:03): The, so by the way, welcome to the show. We are what is the name of the show? I keep forgetting? It's real estate. 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 that you would like us to take a look at, please go to carolina hard money.com. Click on the apply now tab. If you're a passive investor looking for passive returns, we have a place for you as well. Click on the accredited investor tab. Don't forget to like, share, subscribe, hit the bell. And don't forget about Wednesdays with Wendy, since this is Thursday. She's not here. . So Wendy Dev devotes 30 minutes per person on Wednesdays to talk about anything real estate. Yep. She's usually booked up in advance quite a bit. So there's a link to get on her calendar. Jonathan Davis (02:07): Yeah. She's usually a month or two out. Yeah. Bill Fairman (02:09): Yeah. Take advantage of it. Jonathan Davis (02:11): Mm-Hmm. . Absolutely. Well, a month in review, or a month in review, A year in review, that's even worse. But Bill Fairman (02:18): First Jonathan Davis (02:18): Yeah. Bill Fairman (02:29): I always like freaking out our production group. Jonathan Davis (02:31): I love that. Yeah. I mean, we'll, we'll get to the, we'll get to the breaking news in a second. But yeah, I mean, just kind of a, an over overarching cap. Like we Bill Fairman (02:39): Had a lot Jonathan Davis (02:39): Going on this year has been Wow. It's just, you know, Bill Fairman (02:44): Yes. Jonathan Davis (02:45): Not to, you know, the same, the same investor loan that would've captured over 4.1% in January is capturing an 8.7% rate in December. I mean, it's, that's a big swing. Bill Fairman (02:58): Yeah. And if you're, you know, if you bought a piece of property and before you get it finished and then the numbers don't work out for you mm-hmm. you're gonna have to readjust. Yeah. Obviously. Jonathan Davis (03:10): Yeah. I mean, I think the, you know, if you, you know, $400,000 investment in house, you know, typically, you know, you need about $1,800 of rental income at a three and a half percent rate to cover it. And with the rates jumping where they are, and now you need $2,700 in rents to cover the, the payment Yeah. Rents while increasing didn't increase that much. Right. Bill Fairman (03:34): And they will eventually. But, but do, do you wanna lose money until then? No, you always have to have cash. It has to cash. Even if it's only $200 a month. Jonathan Davis (03:48): Even if it's only $50. I mean something, you know, 200 is better than 50, but Yeah. Don't have a negative cash flow. Yeah. Bill Fairman (03:55): But like I said, in the long run the rents will eventually outpace. Mm-Hmm. And then, you know, at some point rates should come down and then you can refinance and improve that. Jonathan Davis (04:09): I love the certainty of the wood. Should makes me not think of that. Never know. What's that phrase? Don't should all over me. Bill Fairman (04:16): Don't shit all over me. It's nice. All right. But before we get to this year end review we have a little bit of breaking news. I a little, oh, the corner. You guys can't see it from here, but we got an emoji of Oh my gosh. What are you talking about, Jonathan Davis (04:46): ? Well, so, you know, not necessarily breaking, but you know, it's news nonetheless. What is interesting is the days on market or the inventory market in, in a single family is 1.6 months for October for the prior month, which is almost, Bill Fairman (05:07): That's not even close to normal, Jonathan Davis (05:08): Not even, but for the last five years, that is the lowest days on market for the last five years. Bill Fairman (05:18): Is that nationally? Jonathan Davis (05:19): Yes. Nationally for the last five years. So that even, even with what we're going through, higher interest rates, low, you know, low supply, we still, you know, loans are, houses are still closing and they're closing fast. Bill Fairman (05:34): So as we always say here, a stable market is six months worth of inventory. Mm-Hmm. . And so now we're talking about still less than two months. Yeah. Jonathan Davis (05:42): Yeah. Absolutely. also, you know, you know, just wanna throw out North Carolina, Charlotte, and Raleigh they made it into the top 10 best markets for growth for multifamily and single family. So looks like Raleigh Raleigh came in at nine and Charlotte came in at seven. Wow. Bill Fairman (06:06): Yeah. Well that just goes to show you all the people that are migrating to these parts. Jonathan Davis (06:11): Yeah. And notables, you know, Tampa came in in the top 25. So did Atlanta. And those are also places that we lend in. Yeah. so, you know, we love that. And then, you know, the top five multifamily markets to invest in, just released by, who is it? Yardi, Yardi Matrix. Number one is Atlanta. You know, we get that. But number four, Charlotte. Wow. Yeah. So, you know, even, even with everything going on, you know, it still rounds out the top five for markets to invest in a multi-family. Bill Fairman (06:44): Yeah. I, I lived in Atlanta in the very late seventies and early eighties while I was going to school down there. And I was always told if you can't get a small business off the ground in Atlanta, you'll not be able to get a small business off the ground Jonathan Davis (07:01): Anywhere. That's true. There's a lot of small businesses in Bill Fairman (07:03): Atlanta. Cause it was just a market that even in those high I mean that at that time they were high interest rate. We were in the middle of recession as well. Jonathan Davis (07:14): Yeah. Bill Fairman (07:15): And people were still very optimistic about you know, business growth in the Atlanta market. Mm-Hmm. . And that has really kind of translated into most of the, the southeast, because Yeah. A lot of people are migrating here. You got anything else? Jonathan Davis (07:30): Just, you know, I thought it was interesting. Maybe you all will as well. I did not know exactly how many hours the average renter had to work to pay for their rent. Mm-Hmm. it's 62 hours. Yeah. 62 and a half hours. Bill Fairman (07:44): For the month's rent. Jonathan Davis (07:45): For the month's rent, they have to work 62 and a half hours to, you know, to pay their month's rent, which is now, which that is up six hours more than it was Yeah. Before the pandemic. So, you know, you have to work six more hours to live in the same place. I, I like, you know, equating those things together, it's like what, you know, we, we can say it costs $200 more, but, you know, or it's, you know, you know, we like, you know, we like the expression of time returning time return on effort. You have to work six more hours to stay in the same place. Bill Fairman (08:15): Well, you think about that if you're trying to qualify for a mortgage, your housing expense can't be more than what, 28%? Jonathan Davis (08:26): Yeah. Yeah. 28. Yeah. I think that's right. Bill Fairman (08:29): Brian, if Brian's listening, he'll Jonathan Davis (08:31): Go correct it. Yeah. Bill Fairman (08:32): He'll chime in. But I, I think it's in the 28% range, so mm-hmm. that's much higher. 62 hours is much higher than what it's gonna be to qualify for a mortgage. Yeah. So rents are going up higher than your affordability for Oh yeah. Buying a home. Jonathan Davis (08:52): Yeah. You know, and they'll say like, rents have, you know, have slowed down. They have the rate of appreciation or arising has, has slowed down, but they still rose seven over 7% year over year for October. Yeah. Which is, you know, yeah. You know, more than average, but, but slowing down. Bill Fairman (09:12): Okay. So let's talk about the, and I'm gonna talk about single family prices first or home appreciation for the year in review. Jonathan Davis (09:23): This is the year in review. , Bill Fairman (09:34): It looks like a heavy metal here in Jonathan Davis (09:36): Review. I love it. I only did that cuz I like to throw bill off. Bill Fairman (09:39): That's okay. It's easy to do. So peak home appreciation hit in June of 2022 at an annualized rate of 20%. Jonathan Davis (09:56): Did you round I think it was 19.8. Bill Fairman (09:58): Yeah, I rounded it. Yeah. 20%. That's incredibly high. And as we always talk about here, unsustainable Jonathan Davis (10:07): , 20% growth. Yeah. Was is unsustainable. Bill Fairman (10:11): So what what's funny, I, I hear a lot of the, the pundits talk about this and how all the markets are overvalued, which they are for the most part. And as the things shake out, they believe that appreciation will drop all the way down to between two and a half and three and a half percent. Jonathan Davis (10:31): You mean to normal, Bill Fairman (10:32): Which is been the normal rate of appreciations. It's the fifties. Jonathan Davis (10:36): It's terrible. It's going to, it's gonna just crash. The market's gonna crash, it's gonna get down back to normal appreciation. Bill Fairman (10:43): 2022, I also saw record energy prices. Jonathan Davis (10:48): That is true. Yeah. Bill Fairman (10:50): Our fuel has gone through the roof, which means that's gonna add pain to everything that we do. Yep. Everything. Jonathan Davis (10:59): Everything. Bill Fairman (10:59): Yep. That's one. I mean, we had inflation because of supply chain, which was, you know, kind of a short term thing. Jonathan Davis (11:07): Yeah. I I didn't, it was supply chain. It had nothing to do with four, you know, what was it trillions of dollars? Was it 4.2 trillion being printed? Well, that didn't help. Bill Fairman (11:16): Yeah. But I mean, we did have inflation because we, we had a lot of people demanding stuff. We couldn't get it. Yeah. So if you could get it, you were gonna pay more for it. Jonathan Davis (11:25): Sure. But you had 4 trillion more dollars. Bill Fairman (11:27): No, I, I get all that. I'm not saying that's not the only thing, but that would've been temporary. But the, the cost of energy going up keeps it going even longer. Yeah. And then the Fed, in my opinion, it's not the rates that were so low that caused a lot of this and then the free money that the government was giving out, but the balance sheet of the Fed mm-hmm. . I just wanna, they weren't reigning that Jonathan Davis (11:55): In. Just wanna point out, bill said, you know, the free money that the government was handing out, as you all know now, there is no such thing as free money. You're feeling, everyone's been feeling for how long? Yeah. Bill Fairman (12:07): It's free to some people. Jonathan Davis (12:10): Not to us. Yeah. Bill Fairman (12:12): And here's another thing that's been kind of an issue. We have the lowest employment participation rate since the oh eight crash. Jonathan Davis (12:22): Yeah. Bill Fairman (12:23): And that's also causing inflation, but it's, it's more of a employment inflation because you're, you have a shortage of of workers. Yep. And so you have to pay more to get 'em there. And then a lot of them are, you know, playing that off and just going from one place to another. Jonathan Davis (12:41): mm-hmm. Bill Fairman (12:42): . Jonathan Davis (12:42): And, you know, you, you know, record energy prices you brought up. And it's not just here, it's in Europe and everywhere abroad. But I thought it was notable. I remember mentioning this way back after, you know, right after the pandemic. Do you, do you all remember what the first business or first thing that Warren Buffet bought coming outta the pandemic? Bill Fairman (13:07): Oh, Jonathan Davis (13:08): An energy company. Oh, no. Smart guy. Bill Fairman (13:11): Yeah. That's why he was the, what do they call him? The something of Omaha, the, Jonathan Davis (13:18): Oh, I don't know. Bill Fairman (13:19): No. Anyway, something important of Omaha. The Oracle. Jonathan Davis (13:25): The Bill Fairman (13:26): Oracle. The Oracle of Jonathan Davis (13:27): Omaha. I had no sir Dam in my head. I couldn't, couldn't get Bill Fairman (13:30): It out. Yeah. No, he, he's a smart guy. , let's go to how things have changed. So 2020 OB or 2021, we obviously had inventory issues with single family housing. Yeah. So in, in order to keep up with that change a lot of investors started moving into smaller and multifamily and self storage. Yep. Those are two property types that are still recession resistant. Sure. the multifamily, you still have to have a place to live mm-hmm. . And while the, you know, the zero, there's a few more zeros on 'em, there's still great investment opportunities. Yeah. so what do you think about that? From an investor's perspective? People get a little concerned about the extra zeros that makes them a little afraid. It makes, it's easier to do the single family homes because it makes you feel better. You can get rid of one. If you run into trouble, if you have an apartment complex or a self storage facility you're dealing in a lot higher dollar amounts and people get a little nervous about that. Jonathan Davis (14:43): Oh, that's true. You know, there's a whole lot of different ways to look at it. So we, we know that in like sales and cap rates, multifamily was the big winner in 2021. Mm-Hmm. . And it looked like in 2022 for the first half of the year, they were going to be as well. And then, you know, then the interest rates and inflation and everything happened. But with single family, you are tied solely to the conditions of the market to that ebb and flow, to demand supply interest rates. You are tied solely to those things. And there's not much you can do to increase your value beyond market. You know, unless there's just, you know, no supply. And, and then we've seen that what's, you know, 20% appreciation in multifamily. While there are more zeros, you have more control. And you can, you know, with the rising or rising rents, you know, rents are, are, are rising. (15:48): So you can increase your net operating income. And that is based off of the capitalization rate of whatever the market is in that area. We know how much demand is. But you know, you're kind of stuck with that. And so now what do you do? Well, you can create a shared laundry room where you create additional, you know, income or you can create other avenues of income for this property or, or take away expenses from the property and you can, and you can inflate or deflate that price or that value accordingly. So it just gives you a little more control. So we're still seeing multi-family selling. Not like it was, you know, six months ago and definitely not like it was a year ago. You know, October, November and December of last year. I mean, we saw record sales and multi-family. The interest rates are, you know, are hurting a bit of that cuz you know, you have to buy in at a much lower operating capitalization rate, which just means how much you're gonna make off of it. (16:55): So that's really compressing the market for a lot of people. Those additional zeros. Most people kind of get around that additional risk factor by bringing other people in, whether it's equity investors or partners in the llc, what have you to kind of share that risk across the board. Which you don't really, you see it in single family, but the, the, you know, to buy a hundred thousand dollars house or a million dollar multi-family, I mean, you know, you can, you can make the risk more palatable on a hundred thousand. You can a million for one person. Yeah. Bill Fairman (17:30): There. And there's differences in commercial financing. It finances differently in a lot of cases. You can't get 30 year fixed rate. You have to go to more of a a on multifamily 20. I mean there are some available, it's not, Jonathan Davis (17:47): We do 30 year fixed on multifamily. Bill Fairman (17:50): The way to value of property is based on the income that it receives. Mm-Hmm. , you can add value to the property, raise rents and then, or lower expenses or a combination of the two. Mm-Hmm. and you will add value to the property, which is not gonna happen on a single family home. No. It's just gonna go based on what home down the street sold for. Jonathan Davis (18:15): Exactly. Exactly. Bill Fairman (18:16): So there's a lot more you can do with those that you can with a single family home. That said, if you need to move it quick, single family homes are the most liquid Jonathan Davis (18:27): . That's true. There are more buyers in that. And it's, it's a faster move. It's a, yeah. Bill Fairman (18:32): It's Jonathan Davis (18:32): Easier financing, lower due diligence period. You know, all those things. Yeah. Wendell asked, will appreciation go below inflation? Well, I like that you didn't put a time period on that, so I'm gonna say yes. Bill Fairman (18:46): Well, the numbers for appreciation will go be below the current inflation rate, but I don't know if they go below the inflation rate at the time they, they drop down to the lower single digits. Jonathan Davis (19:04): Say that again to me. I'm not sure. I Bill Fairman (19:06): Don't know that we'll have high, that high of inflation when I'm expecting appreciation at some point to be in the five to six range. Yeah. We may not have inflation at five or 6% when that occurs. Well, we could, but that's okay. It, it's Jonathan Davis (19:24): Are you saying it be above or Bill Fairman (19:26): Below? But what I'm saying is inflation may be in the fours when we have appreciation in the sixes, but it could be that it goes into the threes and we still have inflation in the sixes. Jonathan Davis (19:38): Mm-Hmm. , Bill Fairman (19:39): It's not gonna stay that way for long. Jonathan Davis (19:41): Yeah. Bill Fairman (19:42): It will eventually bottom out. And again, if, if the homes appreciation rate, if you're buying single family homes for rental, it doesn't matter because it's about the cash Jonathan Davis (19:54): Flow. It's about the cash flow and what you bought in at. Bill Fairman (19:56): Yeah. And you know, and Wendell, you already know this, the house does not care what it's worth. Mm-Hmm. , it depends on the income that's coming in. It's all about the money coming Jonathan Davis (20:05): In. But yeah, I mean, in short, yes. Appreciation will go below inflation. I mean, you know, they ebb and flow as Wendell knows. That was a great question. Bill Fairman (20:15): Yeah, that was awesome Jonathan Davis (20:16): Question. But, you know, win win is always, it's, it's not, you know, it's not really if it's, you know, it's win and no one really knows that. Bill Fairman (20:24): I'm also seeing, and this is just from me noticing this is not scientific data , I've noticed a few self storage facilities, the a class property types, I'm noticing a lot more available tags on the doors versus locks. Jonathan Davis (20:44): Mm. Okay. Bill Fairman (20:45): So vacancy rates are getting a little, little bit higher. Jonathan Davis (20:48): I always wondered where you win in the afternoons. I guess you're just, you know, Bill Fairman (20:51): I'm just perusing self storage facilities. I'm gaping through the fence. Jonathan Davis (20:56): Ooh. Available . Bill Fairman (20:58): But I am seeing occupancy rates starting to drop a little bit in the cell storage. But that's, Jonathan Davis (21:07): And that's, and that's okay because they've been, you know, if doing, they're, they're class A and if they're doing what they're supposed to do, they're, they've been pushing those rents Yeah. Month after month pushing them up and now they have to bring 'em back down a little Bill Fairman (21:19): Bit. Right? Yeah. People will not change facilities if you move it up 10 or 20 bucks a year. Mm-Hmm. . But when you move it up 10 or 20 bucks every quarter Jonathan Davis (21:32): Or every month, some of them have gone, I've seen some dollar, like five, $10 a Bill Fairman (21:35): Month. Yeah. They'll, people say my $500 worth of stuff needs to go somewhere else. Mm-Hmm. Jonathan Davis (21:41): . Yep. Absolutely. Bill Fairman (21:43): But those are great markets to be in. I am, well we are going, it's all about me. We are we're gonna discuss Carolina Capital now for the end of the year. Jonathan Davis (21:57): Everything that happened to Carolina Capital was all because of Bill Bill Fairman (22:01): . Yeah. we had record dollars funded for the years since we've been in business thanks to this man. Jonathan Davis (22:09): Right. All it was a team effort, but all of us, yeah. So we, you know, as we set right now we're at 71 and a half million dollars out the door this year, year to date. So Bill Fairman (22:22): What was our, what was our biggest year? Jonathan Davis (22:24): The biggest year before that Yeah. Was like 36 million. Yeah. Bill Fairman (22:29): Yeah. So that was a big jump in a year. Yeah. So 2022 was really good to us. We also had the highest fund returns since 2017. And, and Ysa since 2017. Or why is it different? Why the returns higher? Well, in 2017 we were charging a lot more for loans. Jonathan Davis (22:51): , you were charging a lot more and you had less assets under management. That's true. So the, the fewer assets you have under management, the easier it is to organically produce higher returns. Right. The more money and more assets you have under management, the more difficult it becomes to produce those higher returns. Bill Fairman (23:14): And and back then we didn't have a lot of competition. And during the end of 17 and the 18 and the 19 you had a lot more Wall Street firms coming into the hard money space. Yeah. And, you know, we obviously had to get competitive cuz they were charging a lot lower rates because money cost them nothing. Jonathan Davis (23:34): I remember seeing someone advertising hard money at five and a half or 5.75. It's like, wow, Bill Fairman (23:42): That right there is not very good management of your client's money. Jonathan Davis (23:48): Well, and the thing is, Bill Fairman (23:49): The risk, the risk is so much higher than a 5% Jonathan Davis (23:53): Interest. Well, and, and here's the thing. They were probably returning through investors a high single low double digit return, but they had that money levered four or five times. So when things, you know, when things change, like we just saw change their investors are last in line to get their money and all the creditors that they levered their money with are first. So Bill Fairman (24:14): Now that said, with the proper leverage, you can have, and I'll give you a quick example. You have a fund that is loaning money on an apartment complex, right? Mm-Hmm. . And they can be giving the apartment complex market rates and still return their investors well above Jonathan Davis (24:34): Market. And if you wanna find out about that, schedule a call with Bill. Cause this is the year in review. Bill Fairman (24:39): That's right. I won't get into it. . All right. And then we lastly we have the highest amount of money under management now that we've had since we've been in business, Jonathan Davis (24:49): Correct? Bill Fairman (24:50): Yes. And this is not a sales pitch, but we could always use more. Jonathan Davis (24:54): Yeah. Always more So, you know, give the disclaimer real quick before I start throwing out some numbers. Bill Fairman (25:01): Yes. your mileage may vary. This is consult your attorney, read the PPM before you invest and invest wisely. Jonathan Davis (25:10): Invest wisely. Yes. so last year our fund averaged 10 and a half percent return to the investors. This year through three quarters. It's done the same and it's done the same with more money under management or more assets under management. So we have as a team been able to absorb that money, additional capital, place it, and manage it, and still meet or exceed the returns we were doing with less money. And, you know, if you know anything about managing a fund, that is, that, that's the difficult part. That is the very hard part of this. And you know, Wendy, you, me and then our team here, like everyone has done such a great job helping us, you know, manage and place money. It's it's, Bill Fairman (26:04): And, and we and we do it without leverage. Jonathan Davis (26:08): Correct. So we do not lever our fund at all. If something happens and investors in our fund need their money, they are the first in line to get it. There's no one in front of them. Right. Bill Fairman (26:20): And that, that's key. There's two reasons you don't wanna lever your money. And one is that, that your investors are in second position essentially. Yeah. And number two, if you're investing with an ira, the IRS doesn't like your IRA being levered and they could charge you a EBIT tax on that as well. Jonathan Davis (26:42): But if you're making high enough returns, you don't really care. It's just the filing that really gets you Yeah. It's a pain. It's a pain, you know. Bill Fairman (26:48): Well, Jonathan Davis (26:49): But, but no, it's, it's been a great year. Yeah. We started out, like I said at the very beginning of this, you know, we could do loans at 4.1% on a 30 year fixed. And now, you know, we're, we're looking at, you know, mid to high eights. There's some people even doing nines and tens on, on investor loans bridge loans and, and like fix and flip and new construction, you're still seeing, there's a few guys out there doing it. Probably, what, eight to 10%? Probably not many. Most people are going to be in that 10 to 14% range right now. Just, just because, you know, like we have cost of funds and then every, every risk profile above zero gets assigned an interest rate above that. And, you know Sure. So as you move down the line, you know, you, you, you know, you get new construction right now, new construction is, you know, unpredictable at best, , and definitely especially on the timeframe. Bill Fairman (27:47): All right. So as an investor, I'm not worried at all in this market. We needed things to slow down because they were unsustainable. Mm-Hmm. . There's still plenty of opportunities out there. And another thing this type of market does is it shakes out the trees. It takes the people that were doing it part-time, the folks that were just looking at hgtv. Yeah. it takes the real estate agents and brokers that were essentially part-time and it allows the real professionals to handle the customers because Jonathan Davis (28:19): Like Don Harris. Yeah. Bill Fairman (28:22): It, it's a shame that the people that are just doing it part-time, a lot of times they don't, they don't have the number of transactions that they have gone through to get the experience, not to make mistakes. Mm-Hmm. and what it does, it reflects badly on the industry. Same thing would happen to, you know, a new fix and flip person who gets into the industry and hasn't had the bumps and bruises, or worked with a mentor to understand some of the mistakes that can happen. Mm-Hmm. . And it can give that industry, you know, a bad name as well. Yeah, very true. So what's gonna happen now, because things are a little bit tighter, it's the professionals that are gonna be maintaining and they're still, like I said, there's always gonna be deals in any market. Mm-Hmm. Jonathan Davis (29:07): And the professionals know that whether the interest rate is 8% or 15%, it doesn't matter. It's how much, you know, how much risk can I tolerate and how much money will I make? And that's all that matters. Bill Fairman (29:19): And you make your money on the buy. Jonathan Davis (29:21): Yep. Absolutely Bill Fairman (29:22): Not the Jonathan Davis (29:23): Sale. And if you can't make it on the buy, well, you try to make up for it on the rehab and then that doesn't really work. And Bill Fairman (29:29): . All right. So before we go Wendy is gonna be speaking at a few places. I don't wanna run through that real quick. And the first one is Quest Expo. (29:44): Oh, I'm sorry. Quest Con . It is online version, and it starts on December 9th. There is a discount code. Carolina 15 gets you $15 off, unlike the Fairman 30 that got you. $30 off, but it's not as expensive. So take the break. What else we got coming up for Wendy. Okay. Invest her. Wendy is actually doing a, she's hosting a, a webinar on December 14th. We don't have a link for that yet, but we'll make sure we get it in the notes. Yeah. What else we have? Oh, and then the Raleigh tria, that's the greater triangle area of High Point. Winston-Salem, Greensboro Raleigh, or no, maybe that's Carrie Durham, chapel Hill, I don't know, but she'll be speaking at Jonathan Davis (30:42): Somewhere in North Carolina, Bill Fairman (30:44): January the 12th. We'll get you some information on that too. They have a great R group up there. They really do. Mm-Hmm. . Anything else inside cell storage? Wendy is actually, yeah. Gonna be a featured speaker in Las Vegas. Do you see how she elbows her way into speaking positions? We've owned a self storage facility for like six months and she's already a featured speaker at Self Storage do it nationally. So we'll make sure that if you can't attend, we'll do our best to get some video of it. Yeah. All right. Are we good? All right. Excellent. Folks, thank you so much for joining us. I hope your year was as good as ours and as blessed as ours has been, Jonathan Davis (31:41): Those are my favorite moments. Bill Fairman (31:42): He, he has got to get that thing Jonathan Davis (31:44): In there, didn't he? I think he's just messing with you right now. . Bill Fairman (31:48): So, thank you so much for joining us on The Real Estate Investor, show Hard Money for Real Estate and Investors. We are Carolina Capital Management. We are private lenders for real estate professionals. 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 are a passive investor looking for passive returns Jonathan Davis (32:07): And, and you wanna, you know, join the other investors that we have, that outpaced inflation. Bill Fairman (32:12): Yep. Go to the accredited investor tab. Don't forget the like, share, subscribe, hit the bell, all that good stuff. Next week.

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.

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.

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.