136 Can A Retired Person Qualify For Hard Money Loans?

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136 Can A Retired Person Qualify For Hard Money Loans?

In today’s episode of Passive Wealth Show, Bill Fairman and Wendy Sweet of Carolina Capital Management will answer the “ Ugly Question” of the day:

“Can A Retired Person Qualify For Hard Money Loans?”


0:01​ – Teaser – “ Can you lend when you retire?”

0:51​ – Introduction

3:28​ – Breaking News

12:59​ – Today’s “Ugly Question” – Can A Retired Person Qualify For Hard Money Loans?

17:22​ – Next show guest: Haley Gant – https://youtu.be/247g7fOhSAE

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 (00:02):

Hi everyone. It’s Bill Fairman and Wendy Sweet here. Welcome to another episode of the Passive Wealth Show. I am broadcasting live from the Charlotte Douglas international airport. And one of the lounges I’m sorry, are staring up my nose, but.

Wendy Sweet (00:27):

I think his, uh, internet is a little frozen. So we’re going to talk about, we can.we’re going to talk about retirement and can you, um, Lynn, when you’re retired, we’ll be right back after this.

Wendy Sweet (00:59):

That’s funny. We both went like that. It’s like we’re brother and sister.

Bill Fairman (01:02):

Well, yeah, almost seems like we’re related again, walking through the past as well. So I’m your host bill Finn. And this is the host is with the most is Wendy Sweet. Business partner and sister. We are Carolina capital management. We are lenders in the Southeast. If you are considering borrowing money and you’re a real estate investor, um, go to our website, colinahardmoney.com and click on the plan out to him. 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, all that good stuff. And we do have a comment section on either the right side or underneath the stream, depending on the platform you’re viewing us from. Again, I apologize for you guys having to look up my face instead of the normal way we are, because, im getting ready to go to freedom founders and Allison. We’re going to have to do our two shows here from, the airport of course Wendy always looks great with her natural looking light in her little office with the wraparound lights,

Wendy Sweet (02:16):

I don’t have green hair. It’s it’s so much better not in our video room. We’ve got to get that camera fixed. If we can make it take a whole bunch of weight off of me too. It’s really good.

Bill Fairman (02:28):

Yeah. Unfortunately, most cameras add weight. Do you know?

Wendy Sweet (02:33):

And uh, yeah, that’s what it is. I’m really just the skinny.

Bill Fairman (02:38):

I remember you were telling me about that professional photographer that was taking headshots of you. And you mentioned to him, I just hate the way I look on, on the camera and he just says, camera doesn’t lie.

Wendy Sweet (02:50):

No, he said the camera takes what it sees.

Bill Fairman (02:53):

Oh yeah. Either way. It wasn’t very polite.

Wendy Sweet (02:57):

You sob. Yeah, it wasn’t real happy about that. Um, but anyway, do you have any breaking news? Oh, look, he’s frozen again, either he’s frozen or he’s really showing off his drink. Okay. Now you’re,

Bill Fairman (03:16):

It might be in and out in and out. So you’ll have to, I’ll give you a chance to talk to this time.

Wendy Sweet (03:23):

That’s exactly right. Finally. So, uh,

Bill Fairman (03:28):

Let’s do a little breaking news.

Wendy Sweet (03:29):


Speaker 3 (03:39):


Bill Fairman (03:45):

Okay. Am I frozen?

Wendy Sweet (03:47):

You are not frozen you’re for real. You make time.

Bill Fairman (03:50):

Cause I couldn’t hear any of the logo in the music thing graphics on this end.

Wendy Sweet (03:58):

You missed it.

Bill Fairman (03:58):

Yeah. Well, I saw it. I’m just gonna hear it. And that’s an important part right here.

Wendy Sweet (04:04):

That’s right.

Bill Fairman (04:07):

So, you know, the jobs numbers came out again this morning and they were expecting 680,000, uh, first time claims and guess what? It was like 710. So it’s moving the wrong way, but it doesn’t matter. It put forth, they probably adjusted the numbers from last week. Um, I was worried about it.

Wendy Sweet (04:30):

I was listening to, a WBT radio earlier this morning and they were talking about how unemployment is up. And, uh, um, the, it was Vince Coakley that was talking actually. And he said, you know, it’s, it’s really kind of sad because you see everywhere where people are hiring ,it’s everywhere. Their signs. And I had to drive up toward, uh, the mountains the other day for a short-term rental we’re we’re putting into place up there. And I mean, every, every single large facility had we’re hiring now hiring out front. There’s a billboard on 77, um, with Stanley Dicker, the Stanley and black and Decker. They’re hiring on a billboard. I mean, it’s, it’s everywhere. I just, I don’t understand. It’s like people are wanting to, um, they’d just rather be lazy, because they’re getting all this money in the mail. Right?

Bill Fairman (05:30):

Well the free money that’s not free is plenty for right now. Now that said, um, interest rates are going up. Maybe they have continued to go up over the past few weeks there now.

Wendy Sweet (05:47):

and Specially for non-owner occupied properties.

Bill Fairman (05:50):

We’ll get to that in a second. But, uh, they’re still over 3%, which we talk about is not to a big deal, relatively speaking, um, and mortgage applications for, uh, the first half of April are up 51% from the same time last year. But the refinance applications are just a trickle because you know, rates are going up. People aren’t reaping anything as much, not to save money, but I think you’re going to see people and still at these low rates, they’ll eventually start refinancing the cash out some of the equity in their properties, because the prices just keep going up. So you have all these loan applications, but we don’t have a whole lot of inventory. So if I was in the mortgage industry, I’d be a little upset and all these people that want to do loans with me, I can’t find them houses to spend it on. So that’s another thing. Uh, what was it? Uh, 18 days supply Charlotte,

Wendy Sweet (07:04):

Yeah It’s crazy

Bill Fairman (07:06):

18 days. And for those who don’t know, and he’s six months supply is equilibrium in the real estate business. So 18 days is nothing. Any wonder out prices, keep going up.

Wendy Sweet (07:24):

I’m seeing investors just buy properties and a space of the sweep amount, put them right back on the market and sell them to other investors. It’s just crazy. And they’re getting multiple offers for that. it’s just saying.

Bill Fairman (07:40):

Yeah. Now the difference here in 2008, because there wasn’t a supply issue in 2008, this was just speculation. That values would continue to go up. And the reason, uh, it was getting cheaper and cheaper and easier and easier to buy a home. It was because the, the way the mortgage loans were working, right. All you had to do was fog a mirror then sure. I’ll have a couple of houses. Right, right. Uh, now let’s talk about investment properties and second homes. You know, we already talked about this, I think last week, Brian mentioned this to us on, on one of the shows about the lenders. Can’t have more than 10% of their total, uh, books and second homes and investment properties. So they’re cutting way back on doing investment loans to individuals and second homes. Some people think that that is a sign that the economy is going to be struggling because that’s the first thing that, you know, goes South. when the economy to bottom out or start to take a dive, is that people stop buying second home, or they try to sell their second home. Now, the Miami market, um, this was surprising details that you have all these people that are moving out of New York city and you would expect a lot of them to be moving to South fork.

Bill Fairman (09:20):

It turns out that, um, they have, uh, something like 19 months worth of supply in Miami.

Wendy Sweet (09:29):

Do they?

Bill Fairman (09:29):

as hot as the market. It is in Florida and Miami area has a 19 month supply of homes available for purchase now. They also in the Miami area, they’ll not get in the local seven 11 and build condos. Uh they’re big.

Wendy Sweet (09:58):

I’m sure that what he was getting ready to say about Miami is pretty exciting. Um, but I didn’t, I wasn’t privy to the information up front, so I couldn’t tell ya. Okay. So you look like you’re

Bill Fairman (10:12):

Yes. Yeah. Maybe he hasn’t switched to five G and see if that works.

Wendy Sweet (10:19):

So, um, so why do you think that is that Miami is different than really the rest of Florida?

Bill Fairman (10:26):

Miami has always been a very speculative real estate market. you have, well, it’s the highest loan fraud state in the country. And you have, people that live in other countries that are trying to move their assets into the US.and the best way to do that, is to do it in real estate. And then no one ever occupies them. You see these fully purchased occupied, supposedly, condo buildings there at night and only two or three lights are on old building because they bought these properties, but nobody lives there. So anytime there’s market fluctuations, it’s always enhanced in the, in the Miami market. So, if you want to get to our question, or did you have any more insight on how the market’s doing?

Wendy Sweet (11:27):

I mean, I’m just constantly amazed at, really what’s going on. Really what’s going on in the market. It’s just, it’s still just blows my mind that the multiple offers that people are getting and it’s everywhere. It’s, I’m not seeing any kind of a slow down. Um, and I know we’ve talked to several real estate agents that are, you know, still seeing the same thing everywhere. So the only thing I have to say is just be careful folks. It is really, really important that you stick with your numbers, stick with your formulas, stick with your caution, because what goes up must come down and this can’t continue. Just be very, very careful.

Bill Fairman (12:16):

Well, it will slow down at some point when there’s a demand, you know, prices are going to go up, right. Just make sure you’re not, you know, stepping out there. Um, cause I can tell you, as soon as you take a risk that you can’t correct from, that’s when the problem is going to happen. Oh, I can do it. As long as the market is doing this, this is going to work out great. That’s when the market is going to turn. I’ve seen it happen so many times and I know you have as well.So let’s uh, let’s go ahead and get to the ugly question.

Speaker 3 (13:10):


Wendy Sweet (13:18):

Do you remember what ugly question is today?

Bill Fairman (13:21):

Yes. Can a retired person qualify for hard money loan? Well, my first quick answer for every question that we ever do, all depends.

Wendy Sweet (13:35):

Yeah, that’s right. And first of all, if you’re a retired person and you’re trying to qualify for hard money loans, I’m here to tell you that you have flunked retirement.

Wendy Sweet (13:47):

You’re supposed to not do anything. Isn’t that the point?

Bill Fairman (13:51):

Actually retirement means, I’m just starting my new thing. Cause you’re gonna retire for a little while, but then you have to do something.

Wendy Sweet (14:01):

In between jobs.

Bill Fairman (14:02):

Yeah. That’s usually how it works. Well, again, it doesn’t matter private loans or private loans for a reason, they don’t follow the same guidelines that a conventional loan is going to have to follow. We’re not mandated that you have to make a certain amount of money, number one, we’re doing commercial loans. We’re not doing consumer loans, and there’s rules and regulations are put in place for a consumer. Now a bank still has to, they do commercial loans in different ways. They’re going to do it based on the, on the property and the income that the property produced. It’s going to be difficult for them to do a short-term construction loan, that arena for someone who doesn’t show any income or hadn’t had a business for a while. That’s why, you know, the private money comes in here. So, and no, that’s not my alarm going off in the background.

Wendy Sweet (15:09):

Well, we can’t hear that, but I will. I will say this that, you know, what most hard money lenders really want is for their loan to be paid back. And so we base everything off of that. You know, what, what is the potential for this loan being paid back? We want it to be a hundred percent. If you’re retired, you normally don’t have any income, but a lot of retired people have, plenty of money into the bank that they could use their money to buy the house if they wanted to, But they’re smart enough to get a loan rather than they use all of their cash. So there’s a, there there’s a reason why, um, uh, retired folks would want to get into this business to continue to supplement the income that they have and grow the wealth that they have birthed that want to continue that. so, you know, as long as you’ve got a good credit score and some experience or an experienced team, we’re happy to lend money, to someone who is retired.

Bill Fairman (16:12):

Here’s the thing too, when you retired from your regular job, now you have time to play the game. You always want to be involved, you know, before it was nice to think about that you, you know, frankly just didn’t have the time to devote to it. Now you do now, even some, many on the side, built up that you can live off of while all this is going on, you’re in a much better position that people are just starting out in this, and they’re trying to living in. So actually if you’re retired and you have independent in your acting a better risk and someone who is, you know, just jumping into this as a career

Wendy Sweet (16:59):

That’s right. Because they have so many other bills to take care of. You’re right. I love your photo bomber in the background

Bill Fairman (17:06):

Yeah that’s okay. They’re like, wow, is he talking to someone there? Or often the ether?

Wendy Sweet (17:13):

Yeah. So we’ve got,

Bill Fairman (17:17):

I was going to say, what they’re doing is they’re looking at going, how do I look ?

Wendy Sweet (17:22):

We’ve got a really good, interview coming up next after this it’s, Haley Gantt with quest. she’s going to be talking about quest con, which is coming up, next weekend, quest con coming up next weekend. And, you know, go ahead.

Bill Fairman (17:40):

I was going to say, we want to make sure that you understand that we have a link here in the show for the upcoming class gone next week. And if you use that link, then you get, I think it was, well, it used to be 50% off and we’re getting closer. So it might only be 30% off.

Wendy Sweet (17:59):

Yeah. But it’s, it’s, it’s well worth it. I, I tell people all the time, there’s two things. If you want to invest in real estate period, you need to know two things. Number one, you need to understand how notes work. Number two, you need to understand how self-directed IRAs work, any kind of self-directed money, whether it’s an IRA or ESA or HSA, a 401k, so low, whatever SEP account, whatever it is. If it’s self-directed that it can change your world. If you understand how they work, then it’s so, so much easier for you to raise money from other people, Because so many people have self-directed money and they don’t know what to do with it. So if you can help them understand what they can and cannot do, it just makes it a better, easier way for you to be able to raise private capital.

Bill Fairman (18:50):

Yeah. So there’s a couple of things. The quest con is devoted to the lending space. This quest is all going to be about lending. So it’s going to be about notes. It’s going to be about finding capital. It’s going to be about investing in the note business, investing in funds that invest in the notes space. And it’s going to be about people that originate loans and how to invest in that space. But especially if you have a deals and you’re looking for private capital, this is a place to go to as well, because you’re going to be able to meet the folks that have money to invest. They’re just trying to learn that and do it right,

Wendy Sweet (19:31):

Like shooting fish in a barrel. Hey, here’s a question from Fennel Hasty, y’all consider container homes as a new build, there are a lot of people that are asking about container homes, developments, or just one home at a time. that the thing about first of all, yes, it is a new bill, but here’s the problem with container homes. It’s really difficult to find comps for that. So when you put a container home together and you try to sell it to somebody, that person really needs to be able to pay cash, because the ability for them to get a bank loan on a container home is going to be difficult because that bank’s going to want to see comparables that are also container homes. And unless it’s in a container home development, you’re going to have a very difficult time getting that done. So I can tell you that container homes are probably not something we would consider at this time. How would you feel about it?

Bill Fairman (20:34):

Oh, I like them because I think it’s a nice, low cost efficient way to, to build now. And we’re always looking for, we’re always looking for ways to lower the cost of building on that. Uh, I think there’s a place for them, but Wendy’s right, in the buyer, your buyer, because eventually if you can’t sell it to somebody that’s not paying cash for it. What are you going to do with it? Turn it into a rental then, because that’s their only option either way you’d have to get out of our line.

Wendy Sweet (21:06):

There just isn’t enough of a, there isn’t enough of a history with container builds right now.

Bill Fairman (21:16):

In the mortgage businesses. You never buy a piece of property, That’s not typical because it limits who can buy it. It limits who can lend on it. It’s just out of the box and banks, don’t like out of the box stuff.

Wendy Sweet (21:32):

Yeah. Right. And it’s really not, not for your benefit. It’s for your buyer’s benefit. So you can build it. You’ll find somebody who will lend you money on it, but it’s going to be hard for your buyer to find a lender. And that’s, that’s what you need to be concerned about

Speaker 1 (21:48):

Personally. I think they’re cool as hell

Wendy Sweet (21:50):

I do too. Yeah.

Bill Fairman (21:58):

And I try to contain my enthusiasm for that.

Wendy Sweet (22:01):

You’re doing a good job because you’re freezing up all the time.

Bill Fairman (22:07):

It’s hard to be excited when I’m stuck in this little hole.

Wendy Sweet (22:11):

So don’t forget too, that I do the Wednesday with Wendy. Um, there’s the link for it right there. And, uh, you can spend 30 minutes with me on any given Wednesday that I have time available and we can go into detail about what we just talked about, Container homes, why you should like them? why you shouldn’t? Airbnbs. Anything to do with anything about real estate. We can talk about that and I can hook you up with people that are way smarter than me that can help you, grow and become successful.

Bill Fairman (22:45):

All right. So you guys, go to the next link and watch the next show. We’ll put that link up. Well, it’s actually over there in the chat side, so you can just click it on and go right to the next show, we’re getting ready to talk with Haley. He’s a great young lady. We met her, years ago on a investor cruise ship. Of course he started working there.

Wendy Sweet (23:06):

She’s just a little baby girl. She was

Bill Fairman (23:08):

Just green right out of college. Anyway. Thank you so much for joining the show, the Passive Wealth Show. We are Carolina Capital Management. We are lenders in the Southeast for investors. If you’re looking for a loan, CarolinaHardMoney.com, go to the plan out there. If you’re an investor with passive returns, then click on the accredited investor tab. Don’t forget the like, share and subscribe, hit the bell. Great. Seeing you, see you shortly. Bye.

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