167 How To Prepare For Market Changes! How Far Out Do You Forecast |Passive Accredited Investor Show

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167 How To Prepare For Market Changes! How Far Out Do You Forecast |Passive Accredited Investor Show

In today’s episode of Passive Accredited Investor Show, the Carolina Capital Management team answers the Ugly Question of the Week:

“How do you prepare for market changes and how far out do you forecast?”

Real estate is a changing market. Prepare all you want, look at the data, make research, observe what is happening around the world and your local market. Learn how to adapt when the real estate market shifts. And don’t be afraid to make a move.

Timestamps:

0:01 – “The markets are changing, how do you prepare for that?”

1:20https://www.CarolinaHardMoney.com

1:44 – Wednesday with Wendy: https://calendly.com/wendysweet/wednesdays-with-wendy?month=2021-09

2:37 – Ugly Question; How do you prepare for market changes and how far out do you forecast

8:09 – Real Estate Is A Changing Market

13:30 – The biggest buying pool in the real estate market right now

15:25 – Affordable housing is recession-resistant

17:30 – Millennials are buying more now???

17:56 – Do you guys see hedge funds still buy a lot in Charlotte now? I noticed they don’t buy many in suburbs.

20:35 – Refinance at the lower interest rates and leverage the equity to buy more.

Carolina Capital is a hard money lender serving the needs of the “Real Estate Investor” and the “Small Builder” borrower who is striving to build wealth and generate income for themselves and their families. We offer “hard money rehab loans” and “Ground-up Construction Loans” for investors only in NC, SC, GA, VA, and TN (some areas of FL, as well).

As part of our business practices, we also serve as consultants for investors guiding them to network with other investors and educating them in locating and structuring transactions. Rarely, if ever, will you find a hard money lender willing to invest in your success like Carolina Capital Management.

Listen to our Podcast: https://thealternativeinvestor.libsyn.com/

Visit our website: https://carolinahardmoney.com

YouTube Channel: https://www.youtube.com/channel/UCYzCFOvEt2n9TchgECLwpww

Facebook: https://www.facebook.com/CarolinaHardMoney/

Wendy Sweet (00:01):

The markets are changing. How do you prepare for that? More right after this.

Wendy Sweet (00:19):

Jonathan and I are sitting here giggling because Bill’s not with us today.

Jonathan Davis (00:23):

And that teaser was.

Wendy Sweet (00:25):

Short.

Jonathan Davis (00:26):

Four seconds as opposed to 45.

Wendy Sweet (00:28):

I think that’s why they call it a teaser and not a novel.

Jonathan Davis (00:32):

This is the pre show show.

Wendy Sweet (00:33):

See? It’s so fun to make fun of him when he’s not here. You have joined the Passive Accredited Investor show. We’re so glad you’re here with us today. I’m Wendy Sweet. This is Jonathan Davis. Bill is on an airplane, so he can’t be with us right now.

Jonathan Davis (00:53):

I’m sure he is not partaking in any drinks he’s,

Wendy Sweet (00:58):

Sitting in first class, but unfortunately there are only two seats in first class.

Jonathan Davis (01:01):

Oh is he on a, [inaudible].

Wendy Sweet (01:01):

But I’m sure he’s having a great time. So thanks for joining us again on this show. We are Carolina Capital Management. We are lenders for real estate investors. We lend all over the Southeast. If you’re interested in borrowing money, all you have to do is go to CarolinaHardMoney.com, click the apply now tab. And if you’re a passive investor looking to invest some of your money, just click on the accredited tab, don’t forget to like share, subscribe, hit the bell, all those other exciting things. And don’t forget to sign up for Wednesday with Wendy.

Wendy Sweet (01:58):

That’s kind of how I feel after they’re over. That kind of thing, my brain, and just melded all together.

Jonathan Davis (02:05):

So again, Wednesday with Wendy, you can sign up on a Calendly link, she’s booked out until the 1st of September, but you should,

Wendy Sweet (02:14):

Third week.

Jonathan Davis (02:14):

Third week of September. So jump on that, run your ideas, your scenarios, hypothetical spy, Wendy, and, you know, she’ll help you out.

Wendy Sweet (02:24):

And direct you to someone who can help you if I can’t. For sure. So we have a really, I think a very interesting ugly question today.

Jonathan Davis (02:35):

So we’re just going to jump into it. So we’re going to go to the ugly question.

Jonathan Davis (02:49):

The ugly question is.

Wendy Sweet (02:50):

Drum roll please.

Jonathan Davis (02:51):

I know, how do you prepare for market changes and how far out do you forecast? Man that’s, you know.

Wendy Sweet (02:59):

Well I like your first answer,

Jonathan Davis (03:01):

My first, you don’t. So, I mean, you know, you know, I touched on this in our previous episode. Using past data to predict future occurrences, while is helpful, is also skewed because if you could use past data and the same things were happening again, you would predict the occurrences and correct them before they happen. However, that doesn’t happen because different occurrences occur and you can’t foresee them because the same things keep happening, but different drivers are forcing them. So how do you prepare for that?

Wendy Sweet (03:40):

That’s right. And I mean, COVID, I think is a great example of random things that occur and randomly we happened to have been at a mastermind event, freedom founders, the mastermind event, and they just did it for the trusted advisors. And one of the exercises that they gave us was you wake up in the morning, the newspaper’s at your door, your company has just lost 50% of its business. What are you going to do? How do you handle it? How do you prepare for that? It was out of the blue. I can remember when they told us to do that. I felt that’ll never happen.

Jonathan Davis (04:20):

And then two months later,

Wendy Sweet (04:21):

Covid hits, right?

Jonathan Davis (04:23):

Yeah. So yeah, it was, it’s a good exercise to do. How do you prepare, well, you put yourself in the best possible scenarios that you can with the information that you have in front of you. If you’re putting yourself in historically higher risk assets that at this particular time are yielding high yield. Well, you know, to me, when I look at that, I say, okay, well, that’s a historically, you know, volatile asset and you’re in it. And if something volatile happens, you can take a big loss. So, you know, just, just managing where you’re on your portfolio. You want to be in things, we talked the most before, talk about the risks you’re like, you want to be like, you want to be in things that, you know, with fair certainty, you can never know everything, but with fair certainty, what your loss level would be. And then on top of that, you have to know where is my cutoff point. If you know my loss, you know, I don’t predict that I’ll ever lose more than 10% on this asset, but if it gets to 12, that’s where I cut ties and let him run and just run from it. And I just say here, you know, it’s gone. It’s, you know, so you have to know those points because controlling your losses helps you control your profit.

Wendy Sweet (05:59):

That’s right. And I always am shocked at the people who try to hit a home run every time they get up to the plate, because this isn’t a home run game. You were talking about numbers. They don’t lie.

Jonathan Davis (06:12):

They tell good stories,

Wendy Sweet (06:15):

They do, they tell good stories.

Jonathan Davis (06:15):

I guess you can get into, you know, nothing special. Anyone can make a number of statistics, say whatever they want it to say,

Wendy Sweet (06:22):

That’s right. That’s why we have the federal government. Sorry. I hurt your feelings. Yeah.

Jonathan Davis (06:29):

So, but yeah, I mean, but the data is important. What’s more important than the data is to not get lost in it. And oh, and solely use it to make the decisions current and future that’s, because that data was created based on occurrences and factors that are no longer, or maybe less likely, or many more likely to occur. Now, the, you know, the factors have changed. So you can’t use that. Like, it’s like people trying to like, you know, predict the stock market or like, Hey, you know, this thing always does this. It was like, yeah. But what if this happens? Oh, that’s never happened.

Wendy Sweet (07:13):

Neither did 2008.

Jonathan Davis (07:13):

Yeah. Neither did 2008. COVID then, you know, like, I mean, I know we could go back to the Spanish influenza, but you know, that’s,

Wendy Sweet (07:23):

That’s pretty deep. Yeah.

Jonathan Davis (07:25):

But yeah, use data, but don’t get lost in it. I think that’s one of the things like we were talking about someone who was a mathematician, or, you know, that’s one of the fallacies of that type of mindset is you look at the numbers and you’re like, these are the numbers. These are what it is. And you have to couple that with looking around you and knowing what’s happening right now, and, you know, honestly, a little bit of luck and a little bit of intuition.

Wendy Sweet (07:57):

Right. That’s exactly right. That’s exactly right. You know, I said earlier on the other show that we did, I’ve talked about this Facebook post that I thought was really interesting. Cause we’re talking about changing markets and they’re always changing. I mean, that’s what this business is. Real estate is a changing market constantly, constantly. And we want to make sure that we’re able to change with it. That’s why we’re problem solvers. That’s what we do. So I have a friend in Collective Genius that posted this question and I loved it. He said, we’ve seen a significant slowdown in the market with some areas having active prices less than the sold prices. Things that would get multiple offers are now sitting for weeks. Anyone else seeing that now this guy is from California but I really wanted to share some of the answers because people in this collective genius are located all over the place.

Wendy Sweet (08:57):

So the first guy says we’ve seen a slow down in Chattanooga, but Knoxville seems to be going strong. Same state, not even that far from each other. These cities are not that far from each other. Chattanooga is more of a resort town. Knoxville is not.

Jonathan Davis (09:15):

Knoxville’s a college town.

Wendy Sweet (09:17):

Yeah, so Knoxville was still going strong. Chattanooga is lower now little I’ve always said, and it’s from data that I get this. I’m not just making it up. Resort areas drop first. They go up for it. And I go up last actually, but they drop first. And they go up quick, quick, like, it’s a more of a straight up. So you gotta be careful in those areas. The other one said, another answer says, we’re noticing it slightly in Springfield, Missouri still very strong though. Appraisals are starting to get squirrely.

Wendy Sweet (09:55):

A hundred percent is another guy says still a hot market, but definitely signs of cooling down. I like this one too. It says, depending on the property type and location, single family in most areas, still going strong, but not getting flooded with offers and showings like they were before. I like that. I can see how many showings agents are getting through showing time. That’s what we real estate agent you use. They act like they’ve had a lot of activity, but there aren’t any showing scheduled. So that what they’re saying is that they can actually see what’s going on. And some of the agents don’t realize that major softening here in Chicago, showings and offers are drastically dropped. Even some rehab properties are not selling and we’re having to reduce the list price. Let me see who else is here

Wendy Sweet (10:44):

Market appears to have peaked for us in Arizona, in March. That’s when they peaked since then, it’s flattened considerably, but buyer fatigue has set in now. Arizona always tends to be one of the front runners of what’s going on. Like when 2008 hit Arizona, California, they were, they were in Florida. They were the places that kind of tanked first and when they can have a comeback, they’re the places that come back first.

Jonathan Davis (11:12):

Some states.

Wendy Sweet (11:12):

eah. So it’s something to really keep in mind late may seems to be the peak for DC. From somebody else, here’s, I like this, it says it’s interesting to hear because I’m hearing about some operators doing apartment syndications in Phoenix, claiming that the market is in high demand for their properties, that they are raising capital for. I wonder if their n bers won’t be as impressive over the coming years. And then I like this analogy to, we’re going to use this analogy, the weather being 110 of them rather than 120 degrees. So it’s still good. It’s still good, but it’s not like it.

Jonathan Davis (11:53):

I mean, everything’s relative. I mean it’s, oh, it hit its peak in, in March and now it seems to be cooling off. Well, it was at a hundred and you know, like was 120 degrees in March, but now it’s 110 when, you know, on average it’s 90 degrees and it’s like, okay, it’s still an up market

Wendy Sweet (12:11):

Enev with all of the things across the nation. We are still short on housing

Jonathan Davis (12:17):

And affordable housing. I mean, we’ve talked about this time and time again it’s and you know, the supply chain issues, the cost issues have really hammered that. I mean, and then one other things, I mean, I harp on this all the time. People probably tired of me saying this, you know, you have these capital institutions, hedge funds. I mean, the easiest one to recognize gets the most recognition is BlackRock. I mean, they are coming in and they are buying all of these homes. I mean, they are pricing out everyone else because they can, because their cost of capital is way lower. I mean, they can have capital at next to 0% where, you know, if you and I go out there, we’re paying, you know, 7, 8, 9, 10, 12, whatever, 15%, whatever it may be. So our cost of capital is much higher. So we’re all getting priced out and they’re doing it because they have the data in front of them that says, you know, millennials, aren’t going to be homeowners. And then I always think like, is it chicken or are they not going to be homeowners because they don’t want to be. And so they’re buying up the properties to rent it out to them, or they’re not going to be homeowners because of the properties are being bought out.

Wendy Sweet (13:29):

That’s right. I also heard that millennials are the biggest buyers right now, too.

Jonathan Davis (13:35):

See, and that’s not true. So the biggest buying pool right now,

Wendy Sweet (13:39):

I wonder if it’s where you’re located.

Jonathan Davis (13:40):

I don’t know the biggest buying for an hour 65 and older, that is the largest buying pool. There is. Millennials are

Wendy Sweet (13:48):

Buying pool but are they buying the most?

Jonathan Davis (13:51):

Yeah, yeah, absolutely. Yeah. They’re buying the most and millennials, like everyone’s catering a lot of stuff to millennials, but they’re not buying well.

Wendy Sweet (14:02):

There’s nothing like the experience.

Jonathan Davis (14:04):

Well, yeah, the experience could be it, but it could also be, you know, housing has increased in price rates are slowly rising and they’re straddled, most millennials are straddled with more debt than the previous generations. So their DTI doesn’t work for conventional loans. That’s a very good point. I mean, what’s your average millennial have in college loans? I don’t know. Probably 20, 30,000 at least but the prior generations didn’t have that.

Wendy Sweet (14:35):

Yeah. And you think about what they’ve been through from what they’ve seen real estate do when they can really remember what they’re saying, that they saw their parents go through 2008 and really lose a lot and now they’re kind of going through something similar with the way the home prices are right now. Just an understanding that real estate to them seems really volatile.

Jonathan Davis (15:05):

Yeah. It definitely could. I mean, a psychological, that’d be an interesting study. I don’t know if they’ve done that. That’d be an interesting one. No, it’s this psychological effect on home buying of millennials.

Wendy Sweet (15:15):

That’s right. Yeah. That’d be interesting to wear a mask or not

Jonathan Davis (15:18):

To wear a mask or not to wear a mask

Wendy Sweet (15:21):

That would be the good study. Yah, it’s you know, trying to figure out how you’re gonna, how you’re going to adjust, what you’re doing for the market is, you know, what do you do? I think everybody’s going to have a little different way that they approach it. But I, you know, we’ve been saying this over and over again, and that the affordable housing is really almost recession resistant,

Jonathan Davis (15:48):

Definitely more so than, than higher houses, higher priced houses for sure. Luxury homes. I mean, it’s like, you know, what do you do to forecast out what, what you need to do in this market? And kind of what I think is, and this is my personal fave. Ihear people all the time telling me, yeah, you need to sell your rentals, cash out of them. And you know, really build up that capital stack. And I’m like, okay, then what? Like, so I have to think that the analysts for BlackRock and for all these other hedge funds are smarter than I am.

Wendy Sweet (16:28):

I know that kills you to think that

Jonathan Davis (16:32):

You always want to be in the room where you’re not the smartest. So they see the data, they know that holding these rentals are a good thing. So I would argue he all your rentals keep all of them.

Wendy Sweet (16:51):

How can it hurt?

Jonathan Davis (16:51):

I mean, how can it hurt? Okay. So you, you have your rental, you can do a cash out refinance, you keep it 75% or lower LTV. You get a little bit of cash. It’s going to be less than you did if you sold it. But now that cash is tax-free. , hold on. We got a lot of people.

Wendy Sweet (17:08):

Yeah. So Cong says millennials will buy in more. Now, do you guys see the hedge funds still buy a lot in Charlotte? I noted that they don’t buy many in the suburbs. That’s good

Jonathan Davis (17:20):

Yeah. Or just refinance it lower interest rates and leverage that equity buy more. Yeah, exactly. Yeah. So Cong, millennials. Yeah, I would, yes. Millennials are buying more. However, what’s more? You know, what is more? Where are they buying more than they were five years ago? A hundred percent. Are they buying more than people? 65 and older? No. The data does not support that.

Wendy Sweet (17:45):

That’s a bigger pool of people in the world to begin with.

Jonathan Davis (17:48):

I mean, you’re talking baby boomers, which is still the largest.

Wendy Sweet (17:50):

Yeah. We’re keeping control of this earth as long as we can.

Jonathan Davis (17:55):

Do we see hedge funds buying a lot in Charlotte? I noticed they don’t find many suburbs. So BlackRock has closed two deals so far that for several billion, I think one was like 17 billion.

Wendy Sweet (18:10):

That’s some change.

Jonathan Davis (18:10):

Yeah. So they are buying more, you know, in the MSA, not as much into the suburbs, but they still are buying in the suburbs, but yeah, you’re a hundred percent right. They are buying more, more in the local MSA.

Wendy Sweet (18:28):

And the thing to keep on top of too is because they do kind of, they get everybody else out of the business, everybody else who wants to buy camp because, you know, they’re taken over, but you know, don’t forget about the little tiny suburbs that touch at the little tiny towns that touch your larger MSA. Those are great markets for all of us to be in because investor can’t buy those properties, but people who are wanting to do on our occupied can’t buy those properties either because these hedge funds are coming in and

Jonathan Davis (19:03):

And a great model right now. And it’s been a great one for years, underrepresented for sure. But, you know, buying properties, doing pools of properties and doing a rent to own. I mean, I think that’s going to be huge now and moving forward because people are, can’t qualify for the conventional loans as much. And if you can do seller financing or, you know, a rent to own scenario, lease option or whatever, there’s a lot of opportunity there.

Wendy Sweet (19:34):

Yeah. And Cong is an investor that’s, he piled up a bunch of lots and he’s been building houses and holding them as rentals. So he’s doing new construction and holding on to them as rentals and just refinance some through us recently, right?

Jonathan Davis (19:53):

Exactly. So you would be hard pressed to find anyone, millionaire, billionaire, most of them made it through holding assets. You hold assets and generational wealth is built through holding assets. So yeah, you can build up capital stacks, but you still have to do something with it. I mean, If I hand my kids 50 homes or $50 million, I wonder which one’s going to last longer.

Wendy Sweet (20:25):

Absolutely. Absolutely. Cause those Porsches and all those cool cars will be in the driveway, but that’s absolutely, absolutely true. Let’s go, Cong, the wise is what Andrew’s calling him. So I want to talk a little bit about the refinancing at a lower interest rate and leverage that equity to buy more. I think that is, it’s a great idea and everybody should be doing that. One of the things that a lot of people who qualify for conventional loans are running into is that they can’t get the conventional loans anymore on a second home or a non-owner occupied. I can tell you, I had a second home guy called me this morning. That’s actually one of our blenders. He’s one of our accredited investors in the fund. And he’s trying to refinance a second home and pull some cash out of it.

Wendy Sweet (21:19):

And my gosh, this guy qualifies. And I mean, his wife makes even bigger bucks than he did. He just sold his practice. He’s got plenty of money in the bank and they are nitpicking him on who’d you write this $300 check to where are you doing it over and over to his housekeeper? I mean, it’s, it’s just ridiculous what they’re asking for to try and get a loan refinance and get some cash out. So that’s a good example of what Fannie Mae is trying to do. They’re just trying to dilute completely their second home and investor portfolios. So now everybody’s kind of forced to go to these non-qualifying loans, but the people that are kind of left in the middle, they can’t do anything about it or the second homeowners. Cause the non-qualifying long-term, non-owner occupied loans. They don’t do second homes.

Jonathan Davis (22:16):

There’s a few that do, but yeah, I mean like, like for us on our long-term product, we don’t do it. I mean, it’s not owner occupied. You need to produce a lease. Yeah. So that’s, you know, that’s pretty standard across the industry. If you, you know, I know I do know one, I think it’s Athas Capital Group, they do non QM and I think they do owner occupied.

Wendy Sweet (22:42):

Right. I’ll call him back and tell him that. So add, this is spelled A T H E S,

Jonathan Davis (22:47):

A S. A T H A S.

Wendy Sweet (22:49):

Awesome. I’ll call him back and tell him that. So we’re talking about, you know, real estate investors adjusting for the market, but we have to understand that lenders are going to do the same thing, these big lenders, because you said AFIS is doing that. Now we’re going to see more and more lenders get smarter on the non-qualifying end and start allowing second homes and things like that. Now they have to be regulated a little bit differently because second homes are really kind of primary as well or owner off anyway. So they’re going to be limited as to what they can do, but as we’ve been seeing the conventional loans kind of dwindle for investors and second home owners, we’ve seen them expand on our end with the non-quality.

Jonathan Davis (23:37):

Yep, absolutely. Absolutely. I mean, I know, everyone knows that they cut it from 14 to 7% on what they’re doing and there’s, you know, definitely rumblings that, you know,

Wendy Sweet (23:48):

They’re gonna do it again.

Jonathan Davis (23:49):

They’re going to cut it in half again. So that’s just going to open up a bit bigger market share for private lenders or, you know, aggregators of capital because you’re getting a, I mean, you’re getting, I think I just saw, was it RCN? I think it was RC and they just did their, no, I’m sorry. It was two rock two rock. Did their first securitization of long-term rental product of 200 and some million.

Wendy Sweet (24:17):

That’s a lot of bucks.

Jonathan Davis (24:18):

So I mean, there’s a lot of people, a lot of capital flooding into that market.

Wendy Sweet (24:23):

It’s not really, it’s not where it used to be anymore there. And the people making those decisions are investors. They understand our world.

Jonathan Davis (24:32):

I mean, it’s only a matter of time before, like so much capital floods in dilutes returns, and then it pulls back out. I mean, that’s just what happens.

Wendy Sweet (24:43):

The pendulum swinging back.

Jonathan Davis (24:45):

I mean, I’ve seen on the investor loan side as low as 3.75, I mean, that’s getting really close to what a bank can do,

Wendy Sweet (24:58):

That’s conventional, that’s exactly right.

Jonathan Davis (24:58):

It’s getting really close

Wendy Sweet (25:00):

Probably better than a non-owner occupied that you would get conventional

Jonathan Davis (25:01):

Well, I mean, it’s definitely a lower dock and probably happens faster, closes faster.

Wendy Sweet (25:07):

It’s just amazing. To keep it coming

Jonathan Davis (25:09):

I mean, we, you know, we’re pricing them between, you know, 3.9 and four and a half right now. It’s that’s good. And the thing is like, you know, the contrarian thought is, well, how long can this last? Because we have shiny object syndrome. People start throwing money into an asset because it’s, you know, it’s safe, but perceived safer and produces a good yield. Well, how long until that, that lower yield is definitely the safety of it is not a factory anymore. Like, well, I can’t really take that low yield anymore. I gotta be a little more aggressive. The safety doesn’t matter. So let me, let me try something else.

Wendy Sweet (25:58):

So changing right back.

Jonathan Davis (25:58):

And then that’s what happens. I mean, we saw that in, you know, money into the private lending fix and flip space. You know, it’s still there, but here recently, the shift has been moving capital from that,

Wendy Sweet (26:13):

To the long-term

Jonathan Davis (26:13):

To the long-term

Wendy Sweet (26:15):

Yeah. Which is amazing because a year ago today it was almost non-existent wasn’t it?

Jonathan Davis (26:23):

To the longterm?

Wendy Sweet (26:25):

Yeah.

Jonathan Davis (26:25):

Yeah. Oh yeah.

Wendy Sweet (26:26):

Quallifying long term, all those non-existent

Jonathan Davis (26:27):

Yeah. I mean it was tough to get before COVID and it shut down with coming pretty much fixed and flipped it for a lot of people for a lot of people. So yeah. It’s, you know we’ll see what happens, but I don’t, I wish I had a crystal ball,

Wendy Sweet (26:51):

So the question was, how do you prepare for the market changes, right?

Jonathan Davis (26:56):

How do you prepare?

Wendy Sweet (26:57):

And we’ll go back to the original answer that you gave with.

Jonathan Davis (27:02):

I say, no, you have to, you know, there’s so many different factors. I mean, so like I was telling though, when you build this, this story, you take, you take a 10,000, you know, let’s just say 10,000 and confident fund managers. And you give them a 55% chance of losing all their money in one year and you give them a 45% chance of making money. And I’m not making this up. I got this from a book.

Wendy Sweet (27:33):

It wasn’t the internet.

Jonathan Davis (27:33):

Anyway, so full by randomness was the book and so you run that scenario for five straight years. And what you end up with is, you know, 192, something like that, 192 incompetent fund managers who now have a five-year track record of making money. Now original pool was 10,000, but you still have 192 who don’t know what they’re doing, who still made money.

Jonathan Davis (28:00):

Dumb luck.

Jonathan Davis (28:01):

So dumb luck. I mean, it’s just just numbers. So you can prepare and prepare and prepare all you want. Sometimes the market just shifts your portfolio. Isn’t allocated correctly. You’re in something that, you know, that has for the last hundred years, been a staple of the society that is returned good yield, and it’ll never go down and then it does. So, you know, prepare all you want. I mean, I would always recommend, you know, look at the data, use the data, look what’s happening around in the world, around you and your local market, adjust accordingly and, you know, have a little bit of luck.

Wendy Sweet (28:42):

That’s right. And don’t be afraid to make a move.

Jonathan Davis (28:44):

Yeah. I’m not going to stand up here and tell someone like, I know exactly what to do so that you can avoid all risks in the market. Like no one, if someone tells you that,

Wendy Sweet (28:53):

They’re full of it.

Jonathan Davis (28:56):

I, you know, Wendy and I work hard, we analyze deals, we analyze the market and we still lose money.

Wendy Sweet (29:08):

That’s right, that’s right. So invest with us, folks!

Jonathan Davis (29:08):

Now we invest in an asset type that we can control more or less the loss

Wendy Sweet (29:15):

We manage with the least amount of risk

Jonathan Davis (29:16):

Yeah. We can control the amount of loss. Like I said before, you can, if you can control your level of losses, you can control your level of yield, better extent.

Wendy Sweet (29:29):

That’s right. Well said, what can you sleep with at night? That’s, that’s the way to look at it. So you have spent another great half hour with us. We appreciate you doing that, spending that time with us on this Passive Acredited Show. We are Carolina Capital Management. If you are interested in doing a rehab loan, you can go to our website at CarolinaHardMoney.com, click on the apply now button, and you can fill out an application. If you’re interested in lending with us a promise, we don’t lose a lot of money. Just go to the accredited investor tab on that same website of CarolinaHardMoney.com. Don’t forget to like share, subscribe, hit the bell.

Jonathan Davis (30:14):

My favorite one. Oh you know where the bell is! I didn’t even know what that is.

Wendy Sweet (29:29): (30:20):

I felt like a ding dong. Sorry I just had said, but, , we really appreciate you being here and we hope to see you next week. Absolutely. Thanks so much.

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