114 Where And What Are You Investing Personally?

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114 Where And What Are You Investing Personally?

In this time of the pandemic, people are moving.

In today’s episode of Active Income, Passive Wealth Show of Carolina Hard Money, not only will Bill and Wendy answer the “ Ugly Question” of the day, they will also talk about where Americans are moving in 2020 as well.

“Ugly Question” of the day:

Where and when are you investing personally?

Discover the answer to these topics by watching the video.

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.

Bill Fairman (00:01):

Hello, everyone, by the way, have you guys been wondering where people are moving to-

Wendy Sweet (00:09):

Migration.

Bill Fairman (00:09):

Because of COVID, and tax and what else? Economic conditions-

Wendy Sweet (00:18):

Crazy people.

Bill Fairman (00:18):

Stay tuned. We’re going to cover that in more in the show. Hello. Welcome to Active Income, Passive Wealth show. I am one of your hosts, Bill Fairman and this is my co-host Wendy Sweet. Jonathan is a little under the weather today, so he’s not going to be joining us. I was going to say joining us remotely, but he needs to rest. Not COVID related, by the way.

Wendy Sweet (00:51):

Yes, not COVID related, but he has two girls that got the same stomach bug that he did so nobody’s sleeping.

Bill Fairman (00:59):

That’s right. So again, this is the Active Income, Passive Wealth show. We are Carolina Capital Management. Our website is CarolinaHardMoney.com. We are a lender. So if you’re interested in borrowing money in Southeast click on the apply now tab and if you’re a passive investor click on the investing tab or the, what is it called? The credited investors tab.

Wendy Sweet (01:26):

Bonified.

Bill Fairman (01:26):

Yes. Don’t forget to like share subscribe, hit the bell, all that good stuff.

Wendy Sweet (01:32):

If you haven’t left Facebook yet.

Bill Fairman (01:32):

And if you have any questions for us, we do have a comment section either to the left of the screen or underneath, depending on the platform you’re reviewing us from. So we’ll be happy to answer those questions. So you guys have been wondering about the migration.

Wendy Sweet (01:55):

Migration that’s and that’s exactly what it is. It’s like the great migration and luckily, we’re in the receiving end where we do business. We’re happy about that, but it’s amazing. Like even in my, in the Airbnb business, it is amazing the amount of people that are booking our properties for, because they’re moving, they’re building houses, they’re moving to the area. I’ve never seen anything like it.

Bill Fairman (02:22):

Yeah. And this is why it’s important to understand this data, because you need to know where the opportunities lie, right?

Wendy Sweet (02:28):

And where they don’t lie.

Bill Fairman (02:30):

Right. You don’t want to buy properties, frankly, in high regulated States, highly regulated states.

Wendy Sweet (02:37):

Some of them are high too. That might be why.

Bill Fairman (02:40):

Where people are moving from. You want to be in the places where people are going to.

Wendy Sweet (02:46):

That’s right.

Bill Fairman (02:46):

So Scott, if, you can, let’s pull up the map and then I’m going to discuss a couple of things for this migration. And by the way, Randy Better sent this to us. And thank you so much, Randy. It was a-

Wendy Sweet (03:05):

Very helpful.

Bill Fairman (03:05):

A great addition to this show. So the green are the top 10 States where people are moving to, and then, you know, the red are where they’re moving from. So as you can see, you know, Oregon, Idaho, Arizona, I’m fairly certain, most of those people are coming from California.

Wendy Sweet (03:29):

Yeah. And I’m real surprised that Texas is not green. Oh, am I ruining it? Oh, sorry.

Bill Fairman (03:36):

When you step on things, what do you see missing? Now, again, these are the top 10 States and Texas was at the top for awhile,

Wendy Sweet (03:45):

They could be 11.

Bill Fairman (03:45):

But they may be slowing down a little bit because of lack of inventory.

Wendy Sweet (03:49):

That’s a good point.

Bill Fairman (03:51):

It’s hard to say. South Dakota is pretty much a wide open state and when I’m thinking is there’s a lot of people from North Dakota, move it down South.

Wendy Sweet (04:02):

That wouldn’t get a little warmer.

Bill Fairman (04:03):

I’m kinda surprised there’s a big outflow from Kansas. We have friends in the Kansas city market that,

Wendy Sweet (04:14):

Well, I think that’s Missouri.

Bill Fairman (04:15):

Yeah. Well, it’s right on the border.

Wendy Sweet (04:18):

Yeah, that’s true.

Bill Fairman (04:20):

Kansas city is right on the border between Missouri and Kansas, but, they have a good turntables there.

Wendy Sweet (04:28):

Yes, they do. They do very successful.

Bill Fairman (04:30):

Again, we don’t, we don’t know about the jobs and why they’re moving

Wendy Sweet (04:33):

And there’s pockets too, you know, where people are moving into and from certain pockets, even within that state, like Texas, one of the reasons why Texas may not be in the top 10 is because the fourth largest city in the US, Houston, is highly dependent upon gas and oil o that has taken a serious hit.

Bill Fairman (04:57):

Well, we discussed this, I think in the last show about that, or maybe not, I’m not sure. But it’s the triangle in Texas, Dallas, Fort worth San Antonio, Houston and Austin. Those areas all have, their economies are strong, but they’re all kind of focused in on different industries.

Wendy Sweet (05:24):

Right. When And you’re getting on, you must move in that way.

Bill Fairman (05:29):

Well, they’re, the Austin market is going to have a lot of your technology folks. I’m not sure exactly the economy in San Antonio. I apologize. They brought it up.

Wendy Sweet (05:43):

Yup. We don’t know anybody there.

Bill Fairman (05:44):

But obviously the Houston market has a lot of the energy sector. But those markets tend to feed off of one another. And, you know, the benefit is if one slows down, people can always migrate across the state a little bit because the other, the other businesses should be doing a decent amount of business.

Wendy Sweet (06:07):

Right. I love going through Texas, as you drive through and you see the, you know, the big rotunda out in front of you with the fenced in places, you see lots of cattle and then all the oil Wells, they can take one piece of land and farm it with cattle and farming like products, vegetables, and things like that and then to be able to also produce oil there too, it’s just neat. I love it.

Bill Fairman (06:37):

Oh, well, yeah. You’re, they’re farming on different levels of depth, right?

Wendy Sweet (06:43):

That’s called multiple streams of income.

Bill Fairman (06:45):

So if you look at the Eastern side of the United States you’ll see that the Northeast they’re moving South East. There’s no doubt about that. I’m kinda surprised that Georgia wasn’t part of that.

Wendy Sweet (06:59):

Yeah, me too. that was an odd one.

Bill Fairman (06:59):

It’s hard for me to say. Scott, can you pull up the first list of the, there’s one there about moving from economic, conditions or taxes?

Wendy Sweet (07:15):

For their retirement.

Bill Fairman (07:15):

And I think the headline on that is, well, yeah, this one is the States for the retirement moves. People are moving there for their retirement. The big surprise for me,

Wendy Sweet (07:29):

Delaware.

Bill Fairman (07:31):

Was Delware At the top. And here’s my pre-notification on why Delaware-

Wendy Sweet (07:39):

Big word! Impressive

Bill Fairman (07:39):

Is still. And if you look at the numbers in the rankings tax-wise, Delaware is not really highly ranked, or it should be in the, one of the States where people are leaving.

Wendy Sweet (07:54):

Right. It’s a good place to start a business.

Bill Fairman (07:55):

However, they have decent tax structures for social security income. They either ignore most of it or all of it as income. So that’s helpful for retirees. And the reason I’m thinking people are moving to Delaware for retirement is emotional. You have a lot of people in the, in the Northeast that want to get out of that high taxed areas but they have grandkids that are very close and they don’t want to move to Florida because it’s too far away.

Wendy Sweet (08:28):

Yeah. Like our great state of Pennsylvania, a lot of our parents’ friends have moved from Philadelphia down to the Delaware are

Bill Fairman (08:34):

Yeah. So I have to do is pop on 95 and you’re there in a short period of time. So that’s my thought. This is, yes. There’s a better tax structure than a lot of the other Northeastern States. The weather isn’t much better.

Wendy Sweet (08:48):

I’m glad to see South Carolina’s number three. That’s pretty awesome.

Bill Fairman (08:52):

But you see, yeah, Florida, uh, South Carolina, Arizona, Wyoming, Idaho, New Mexico, Nevada, Maine, North Carolina, most of those States are red States, but you have, you know, a good three or so maybe four of those States that are blue or purple.

Wendy Sweet (09:13):

From the map, not politically,

Bill Fairman (09:16):

But a lot of times too, the blue or purple States that are all lists are going to be a really good climates.

Wendy Sweet (09:26):

Which we like.

Bill Fairman (09:26):

And like, you know, when you get to be my age, you want it to be not as cold.

Wendy Sweet (09:32):

Toasty.

Bill Fairman (09:35):

Okay. So here’s the thing. We have a 79 page PDF that we will make available that showed the methodology used in these rankings. And I was going through it. It’s pretty interesting. We’re going to make that available to you after this is recorded. There will be a link that you can click on to download that PDF for yourself. We didn’t have time to get it set up before the show started, but we’ll make sure that we put that on there and it will be free to free for your viewing. All right, now here is, just the moves based on economy and taxes. So here’s your top five States with the highest amount of inbound moves. And if you notice right there, South Carolina, that’s pretty good. Yay. So Idaho, you have a lot of people moving out of Washington, Oregon, and California, going to Idaho, Oregon, you’re getting a lot of people from California moving into Oregon. And then again, South Dakota, Arizona, those States were there for retirees as well. And then, you know, it goes without saying that the ones with the most people leaving is New York, New Jersey, Illinois, um, Connecticut and California. Connecticut didn’t lock down like New Jersey, New York and California during COVID. Not nearly as much, but I’m assuming the tax reasons why Connecticut is almost as well so that’ll give you a good idea. Another good idea is to find that data on Uhaul trucks. If you’re trying to figure out where people are moving to, find out the prices on moving to certain States from other States, because it’s going to cost you three times as much to rent a truck from California to Texas, that it is from Texas to California.

Wendy Sweet (11:47):

That’s true.

Bill Fairman (11:49):

They can’t pay people enough to take them back. So anyway, that’s some good data points that’s going to help you in your business. And again, we’ll make that methodology that they use to come up with those rankings available to you after the show has been recorded. So I know this is what you’ve been waiting for. The Ugly Question. There you go. I’m waiting for graphics, but so far we just got a different graphic. I’m going to say where’s my Ugly Question graphic?

Wendy Sweet (12:36):

There you go.

Bill Fairman (12:36):

There you go. By the way, but real quick, before we get to that question, I’m laughing here because Scott wanted to personally run this show because there was a lot going on and you wanted to make sure it went right. So I’m going to get back to the question in a minute, but I don’t want that graphic to come up. So real quick, on the current data, we had expected, they expected 795 new unemployment requests or whatever you call them.

Wendy Sweet (13:27):

Filing applications and stuff.

Bill Fairman (13:27):

So they had 965,000 instead. So they were way above what expectations, I mean, way off, and then it’s in the 5 million range for continuing, we currently have around 19 million people unemployed. And obviously most of this is, uh, New York and California who are shutting down a lot of their industries. And it’s, you know, it’s not very helpful to keep people employed. So there we go with those numbers. Stock market, 10 news the rocket. None of this that’s going on in Washington is phasing them because they’re all are looking at is more stimulus money, but eventually taxes are going to hit us because they have to pay for this somehow.

Wendy Sweet (14:14):

That’s right. That’s right.

Bill Fairman (14:15):

All right. So our question,

Wendy Sweet (14:17):

Unemployment, I’m glad you brought that up. And I think that’s something that, you know, everybody really needs to pay a strong attention to because that difference of what was expected versus what really happened is huge. And, you know, is that going to continue? Are we through, you know, we’re almost a year through the beginning of COVID and, businesses, I think a lot of businesses have been waiting to see what the outcome is going to be. And here we are going through another COVID event where it’s at an all time high in North Carolina. I know it is. And, in South Carolina, I’m hearing at about everywhere that it’s a lot higher than it has been. And so I think that these companies are really getting a hold on, Hey, we need to really prepare for the future. So, um, you know, where’s that going to go? We really don’t know.

Bill Fairman (15:13):

Well, the other thing is that companies have learned to do more with less.

Wendy Sweet (15:18):

Yes. We sure have.

Bill Fairman (15:18):

And so there’s a going to be the expectation that jobs aren’t going to be as easy. If it were me though, and I’m unemployed in the hospitality sector and I’m able and willing to learn, I’m getting into the trades because you’re still gonna need plumbers, electricians, carpenters, those types of skills are sorely needed. They’re already at a premium as it is.

Wendy Sweet (15:48):

So we had a tough time finding that.

Bill Fairman (15:50):

That’s a good place to get into if you’re going to get into that. All right. So here’s our question. Where, and what are you investing in personally? Was that a question for us?

Wendy Sweet (16:02):

Yes.

Bill Fairman (16:02):

Okay.

Wendy Sweet (16:04):

We were asking somebody else, we’d be waiting. Let’s see, we’ve got stuff on the side here. Next show. Oh, it’s about the next show.

Bill Fairman (16:10):

Yeah. Thank you, Cherub. Giving a heads up for the next show. So we only have 10 minutes to go over this question. Can you do it in 10 minutes?

Wendy Sweet (16:23):

Okay. I think I can.

Bill Fairman (16:23):

Go ahead. Because I know you’re doing most of this stuff. I’m just a hanger on, I just grabbed all the coattail

Wendy Sweet (16:30):

And foremost we’re lenders. I mean, that’s what we do with, if we call it the best seat at the table, and we believe in that 100% and over the past 20 years, It hasn’t changed. And I don’t see that changing for the future. We’ve said over and over again, how important it is for us to be in that lending place. And that position is just, for us, the safest place to be, especially if you know your market and you’re very concentrated on what you do. So, but we all want to have side gigs as I call them. And, you know, I’ve talked about the side gig that I’m into personally is the short-term rental program. I think it’s fantastic. Currently we’re in 11 properties within a three mile radius of downtown Rock Hill, and that’s a big hill of town.

Bill Fairman (17:23):

Yeah. Well, one of the things that short-term rentals does for Wendy is she loves to design stuff and decorate, and that kind of hits that note for her that she can use those skills-

Wendy Sweet (17:38):

right. My outlet.

Bill Fairman (17:38):

And that, yeah, it’s not all about business it’s stuff she likes to do. She likes to design and I’m losing the words for this.

Wendy Sweet (17:54):

Furnish.

Bill Fairman (17:54):

Here’s the problem, my phone is vibrating and it’s feeling really good.

Wendy Sweet (18:00):

It’s Glenn’s number.

Bill Fairman (18:00):

So our next guest is calling, probably wondering if we’re going to have a show for him or not.

Wendy Sweet (18:09):

But anyway, what’s involved in that is it’s not just putting out rent rentals, you know, buying whole properties. We’re buying them, we’re rehabbing them. And then at that point, once it’s rehab, then we’re deciding, is this one that we want to keep as a short-term rental, or is this a property that we can make so much money off of by flipping it that we’ll go ahead and flip it. In some cases we’re even selling them turnkey. We put a tenant into it and sell it turnkey, all of this falls into the same category. And you know, what that is buy and hold property. That is, and it’s in the affordable housing arena. We really liked that space. We like to lend in it, but we also like to do business in that space as well, the buy and hold market, because you’re so wide open with who you can sell it to when you need to sell it. Everything’s about the exit strategy. So, I, you know, and I see a lot of people are calling us that are getting more into the buy and hold market. So, you know, it’s certainly getting more and more popular. I’m thinking, and I might be wrong, but I’m thinking that in the very near future, we’re going to say a large amount of people going into foreclosure. So we’re going to see the market flush with more foreclosures. So there’ll be more deals out there for people to buy rehab and hold as either long term or short term rental, you know, where you’re doing this, I think is really, really important. You certainly don’t want to do it in downtown New York or New Jersey or Connecticut, because people are leaving those areas. But you know, if you’re concentrating on areas where people are migrating to, that’s certainly a market you would really want to look into for a side gig. Now, what are you doing as a side gig?

Bill Fairman (20:13):

Me?

Wendy Sweet (20:13):

Yeah. Anything?

Bill Fairman (20:14):

I’m, just partnering and Airbnbs. I like self storage. I used to like tractor trailer trucks, but I lost all my money in there.

Wendy Sweet (20:29):

Yeah. we do [inaudible] so we don’t recommend.

Bill Fairman (20:29):

So I don’t like that anymore. The one thing I’ve learned is that stay in your lane.

Wendy Sweet (20:39):

Yes. Great words.

Bill Fairman (20:39):

So we are everything that we do on the side gigs is focusing on a tangible asset that only depreciates on paper. It doesn’t actually become worth zero in points.

Wendy Sweet (20:59):

That’s. Right, right. Which vehicles do.

Bill Fairman (21:02):

Yeah. So that’s, you know, that’s more of doing a business loan and that’s one of the reasons I like self storage is that while it’s real estate, it’s also a business. So you can get SBA loans up to 95% sometimes depending on who it is, to purchase a self storage but you have to have a business plan. It’s not just I’m buying this and getting a rental income, but the beauty of self storage is it’s short-term rental and, you don’t have to evict somebody,

Wendy Sweet (21:38):

Because you lock on it.

Bill Fairman (21:41):

Because they don’t own anything. They’re not renting it to live in. They just have their stuff in there and you can control, you are not going to go without payment for very long.

Wendy Sweet (21:52):

That’s right. That’s right. And then you’ll end up with a bunch of stuff that you can sell and make some money on.

Bill Fairman (21:56):

Yeah. And it’s recession resistant because as the economy is, boom, people need a place to put more of their stuff. When the economy goes down, people are downsizing. They don’t want to get rid of their stuff.

Wendy Sweet (22:09):

That’s right. Which is just unreal. I would, I have a storage unit that we put our Airbnb stuff when we’re moving from house to house or, you know, I’ll go to a yard sale and find a bunch of stuff real cheap. So I’ll put it in a small storage unit that we have and, I was in there when I was signing up for the storage unit, there was a woman in there that had had a storage unit for seven, 17 years. 17 years! And, you know, she just had her grandmother’s stuff in there. You know, what are you gonna, I understand that sentimental, I get that, but, you know, take a picture and move on from that, because that is a lot of money down the drain.

Bill Fairman (22:57):

We only have one minute left, by the way.

Wendy Sweet (22:57):

Okay. Okay. Well, you go ahead and wrap it up in the middle of your texts and email

Bill Fairman (23:04):

I’m trying to send the link to our next guest. And by the way, our next show, the link is for the next show is over there in the comment section. We have five of our friends that manage funds and have different businesses.

Wendy Sweet (23:19):

Do we have a self storage person on that list?

Bill Fairman (23:24):

Yes, we actually have Jacob Anderson. Band West partners.

Wendy Sweet (23:28):

That’s right. So Capricorn, whoever just sent this a text here, to us or this message to us, listen to the next show because there’s a self storage guy that’s there and he can certainly answer any questions. Yeah.

Bill Fairman (23:40):

And by the way, Scott Meyers runs courses. He has courses available on how to get into self storage.

New Speaker (23:51):

And we’ve interviewed him. He’s on several of our recordings as well. Scott Myers and that’s M E Y E R. Scott Myers.

New Speaker (24:00):

Yeah. all right. So listen, we have to run because we’re getting ready to go. Does that makes sense? So thank you so much for joining us on the Active Income, Passive Wealth show. Don’t forget to subscribe, share, like hit the bell, all that good stuff. We are Carolina Capital Management. We are lenders. If you’re interested in borrowing money in the South East CarolinaHardMoney.com. Click on the apply now tab, if you’re interested in passive returns, click on the accredited investors tab. Thank you so much. Sorry. I was a little distracted, but-

New Speaker (24:39):

It’s normal.

New Speaker (24:39):

That’s my personality. I’m a shiny object chaser. We’ll see you guys on the next sir.

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