176 How Did We Get A Housing Shortage? – REI Show – Hard Money for Real Estate Investors!
Yes! The real estate market is on fire! But nonetheless why the shortage in housing? Why is there a low inventory of available houses to buy and sell?
This Ugly Question is the hot topic on today’s Real Estate Investor Show – Hard Money for Real Estate Investors together with Bill Fairman, Wendy Sweet & Jonathan Davis.
Join the Carolina Capital team live every Thursday at 12 pm Eastern on Youtube or Facebook!
0:01 – Introduction: “ Housing Shortage, how did we get into this mess?
1:00 – Wednesday with Wendy: https://calendly.com/wendysweet/wednesdays-with-wendy?month=2021-09
2:06 – Breaking News
2:38 – Bill’s Rockhill Sub-group meeting
4:08 – email@example.com – email Jonathan to join the list of participants for the Rockhill sub-group meetings held every first Wednesday of the month
4:39 – Unemployment figures are lower than last week
6:50 – Statistics for the number of Americans who are paying taxes
8:10 – If you are not invested, you don’t care
10:59 – Supreme court ruling – CDC does not have the authority to ban foreclosures and evictions
17:37 – The hottest zip codes by Realtor.com
19:08 – The Ugly Question: How Did We Get a Housing A Shortage?
24:08 – Carolina Capital’s affordable housing program
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.
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Bill Fairman (00:02):
Hi folks. Are you wondering how we got into this housing shortage in the first place? We are going to do our best to untangle this mess right after this.
Bill Fairman (00:26):
Hello folks. Thanks again for joining us on the Real Estate Investor Show, Hard Money for Real Estate Investors. We are Carolina Capital Mmanagement, and we are lenders for real estate investors in the Southeast. If you’re interested in borrowing money, go to CarolinaHardMoney.com and click on the apply now tab. If you’re a passive investor looking for passive returns, then hit the accredited investor tab. Don’t forget to like share subscribe, hit the bell. And lastly, don’t forget to sign up for Wednesdays with Wendy
Bill Fairman (01:16):
Trying to hide her phone under the desk.
Wendy Sweet (01:18):
I was booking Wednesday with Wendy.
Bill Fairman (01:23):
So Wendy gives up 30 minutes per person each Wednesday to talk about all things real estate book your times. Now there’s the link because she’s booked out a couple of months in advance.
Wendy Sweet (01:35):
I talk to about six people a day. I also put my gum up underneath the table too while ya’ll [Inaudible]
Jonathan Davis (01:39):[Inaudible].
Bill Fairman (01:42):
Good. Now I have a place to hold my pen.
Wendy Sweet (01:46):
Bill Fairman (01:48):
So another week,
Wendy Sweet (01:51):
Another day, another dollar.
Jonathan Davis (01:52):
Bill Fairman (01:54):
So we’ll add a loss for words. Let’s take note of this. So we’ll get to our ugly question in a minute. Let’s let’s do a little breaking news. Shall we?
Wendy Sweet (02:10):
Wendy Sweet (02:22):
We need to get in kickstart.
Bill Fairman (02:24):
Every now and again. I’m at a loss for words.
Jonathan Davis (02:29):
See you in the next 20 years or so.
Bill Fairman (02:30):
Usually it’s, can you take a breath please?
Wendy Sweet (02:36):
Yes. Yes, it is.
Bill Fairman (02:37):
So the unemployment.
Wendy Sweet (02:40):
First of all, you had a great Rock Hill sub group meeting last night, and it’s something that people can join by zoom. So you need to talk about that. Talk about that. You’re doing the setup.
Bill Fairman (02:53):
So I’ve been doing the subgroup meeting for, I don’t know if somewhere around five and it’s been a great run and it was time for me to pass the torch to someone who isn’t at a loss for words,
Wendy Sweet (03:07):
I can run faster. Like Jonathan,
Bill Fairman (03:10):
Jonathan is taking over for me going forward. I introduced him to the group last night and again, Jonathan has the same access that we do to a really good speaker to help the community. We’ve had numerous people tell us that Rock Hill is a honeypot right now for real estate.
Wendy Sweet (03:34):
Bill Fairman (03:34):
And while we are invested in Rock Hill ourselves, and we prefer not to have the competition, we’re not,
Wendy Sweet (03:44):
Nothing going on here.
Bill Fairman (03:44):
We don’t have a mindset of scarcity and we have a mindset of abundance,
Wendy Sweet (03:49):
That’s right! But what’s important to know too, is the group all the way it’s based in rock hill. That’s where it’s coming from. It’s on zoom. So wherever you’re located, you can attend. It’s good information.
Bill Fairman (04:01):
Yeah. So if you’re interested in doing that, you want to get on the list so you can get the link to the zoom
Wendy Sweet (04:09):
Bill Fairman (04:11):
Then email Jonathan@CarolinaHardMoney.com and he’ll get you put on the list. Jonathan@CarolinaHardMoney.com. Excellent. We’ll have that put in the comment section as well. And speaking of comment, section, I left that part out. We have a comment section! That’s going to be either on the right-hand side of your screen or underneath, depending on the platform that you’re viewing us from. All right. So back to that breaking news,
Wendy Sweet (04:41):
Sorry about that, I had to. That was other breaking news.
Bill Fairman (04:45):
So Unemployment figures came out again. They do it every Thursday morning when they come out and they’re lower than the previous week for continuing and new claims. So all that’s good. The problem is we still have 9 million, some jobs available.
Wendy Sweet (05:04):
And no people working. It’s still just sorry.
Bill Fairman (05:07):
Still 7 million people that of work. But they’re choosing not to, they’re choosing to be out of work in most cases.
Wendy Sweet (05:13):
Yeah. We’re looking for a marketing director. We can’t find that position.
Jonathan Davis (05:17):
And accounting associate.
Wendy Sweet (05:18):
Can’t find that position. Maybe somebody in the loan department. Jonathan needs an assistant.
Wendy Sweet (05:24):
Please, calling all people who want to be Jonathan’s assistant.
Bill Fairman (05:32):
We had a lot of people saying there was 21 states that stopped giving out the extra unemployment money and they assumed that that would pick that up.
Wendy Sweet (05:44):
Make people go to work, right?
Bill Fairman (05:44):
It turns out it hasn’t done much. It hasn’t raised the employment rates in those areas very much. So it really wasn’t much of a incentive.
Wendy Sweet (05:57):
Maybe people are just inherently lazy.
Jonathan Davis (06:00):
You may not, I don’t know this. I was just curious.
Bill Fairman (06:04):
Those people have just gotten out of work.
Jonathan Davis (06:04):
Montana because Montana actually, instead of just not getting out the extra money, they actually converted that into a bonus to get a job.
Bill Fairman (06:15):
Jonathan Davis (06:15):
So I wonder what their numbers look like. I don’t off hand.
Bill Fairman (06:18):
I think he had to stay in the job for a year before you got,
Jonathan Davis (06:20):
Is that what is was? Okay.
Speaker 3 (06:21):
And Montana is beautiful. I just got back from there. Great trip.
Bill Fairman (06:25):
So all 12 people have a job. All right. Don’t be hating on me, Montana.
Jonathan Davis (06:35):
So don’t leave this show,
Wendy Sweet (06:35):
I was gonna say, that’s right. Well, we’re not going to say anything about California now. Montana is just a beautiful state. It was really awesome trip, beautiful places,
Bill Fairman (06:50):
More breaking news because of what’s going on in Afghanistan, something that flew under the radar on Friday was that the national tax, I forget what they’re called national tech something or another. Anyway, they put out the statistics for the number of Americans that are paying taxes and paying taxes. It turns out that 61% of the country is not paying any taxes at all.
Wendy Sweet (07:25):
Like by choice, or?
Bill Fairman (07:26):
I didn’t say by choice. It just is only six. It says that 61% of the country is not paying any taxes,
Wendy Sweet (07:34):
Federal Income tax? Is that what you’re referring to?
Bill Fairman (07:36):
Wendy Sweet (07:36):
Okay. Well could maybe, cause they’re not working.
Bill Fairman (07:39):
It’s disturbing that you’re not, they didn’t pay any tax in 2020. What’s disturbing about this is that when you have more people not paying taxes, then are paying taxes and then you can continue to,
Wendy Sweet (07:58):
They’ll just print money, we’ll be okay.
Bill Fairman (07:59):
Whine about the rich, not paying their fair share, who is paying their fair share of 61% aren’t paying at all.
Wendy Sweet (08:06):
That’s exactly right. That’s exactly right.
Bill Fairman (08:09):
And here’s really the biggest problem is if you’re not invested, you don’t care, right? That’s why entrepreneurs do so well is because they’re invested in their company. If you have team members, employees, whatever, and they’re, they have a bonus base. This is why I always thought that everyone should be paid commission.
Wendy Sweet (08:39):
Yeah, you gotta eat what you kill.
Bill Fairman (08:39):
Now it’s very difficult to come up with a commission plan for, let’s say a receptionist or someone that answers the phone or, or whatever but they all should, everyone in the organization should be invested somehow with some sort of profit sharing in order for them to have the incentive, to do their best.
Wendy Sweet (09:02):
Now, are we set up that way, Bill?
Bill Fairman (09:04):
Not all of us. Seriously. Not all of us.
Wendy Sweet (09:05):
I agree. I think that,
Bill Fairman (09:11):
I’m just saying, it’s hard to structure. I’m not being careful. It’s hard to structure it,
Wendy Sweet (09:17):
But if it’s based off of profit year, over year, customer service send out surveys and things like that.
Bill Fairman (09:25):
My point here is what’s the incentive for the people to vote for holding down taxes when you’re not paying.
Wendy Sweet (09:35):
Bill Fairman (09:35):
When the majority aren’t paying it, but the majority is voting it to raise it for other people. How is that fair?
Wendy Sweet (09:43):
Yeah, that’s weird.
Jonathan Davis (09:44):
That is interesting. Isn’t it? It’s a good point.
Wendy Sweet (09:46):
It makes you wonder why they’re not paying taxes. You know? What’s what, how are they falling through the cracks? How are they hopping into the loopholes? You know what’s out there?
Jonathan Davis (09:58):
What percentage of the population is living at or below the poverty line, you know, stuff like that.
Bill Fairman (10:04):
So a lot of the incentive money was tax-free. So they’re probably including a lot of that. But then there was a lot of people that maybe they didn’t file taxes because all the unemployment that they were getting, they didn’t think they owed it. But guess what?
Wendy Sweet (10:23):
That’s a good point. That’s going to sneak out.
Bill Fairman (10:25):
They do owe it.
Wendy Sweet (10:26):
Jonathan Davis (10:27):
Drug dealers don’t pay taxes. I don’t know. Do the pharmaceutical companies pay tax? Actually, they probably don’t.
Bill Fairman (10:36):
Who put that up?
Wendy Sweet (10:37):
Apparently it was.
Bill Fairman (10:40):
So by the way, that’s how they get ya. You’re required to pay tax on the profit for your ill gotten gains. And if they can’t catch you for your ill-gotten gains, they catch you for not paying taxes on it.
Wendy Sweet (10:55):
That’s right. Look at you, one way or the other.
Bill Fairman (10:56):
So where are we now? All right. Supreme court ruling.
Jonathan Davis (11:01):
Bill Fairman (11:02):
Thank you, Randy, for sending us an article. You know, what was it, a seven?
Wendy Sweet (11:11):
You can just read it.
Bill Fairman (11:12):
I’m not reading it. I’m going to touch on it. I think it was a 63 ruling.
Jonathan Davis (11:18):
Bill’s been a little sassy today.
Wendy Sweet (11:18):
It is in the very first three words, a 63 decision was made in the Supreme court.
Bill Fairman (11:26):
You read it. So basically they’re saying that the CDC does not have the authority to have a moratorium.
Wendy Sweet (11:35):
Band foreclosures and evictions,
Bill Fairman (11:39):
And evictions. Which we all knew.
Wendy Sweet (11:40):
Yeah. Gosh, what a surprise!
Bill Fairman (11:42):
And the administration is still fighting. This is totally unfair. They’re just going about it the wrong way I get people need help, but instead taking one group of people and making them responsible to pay for everyone else,
Jonathan Davis (12:02):
And you say one group you’re talking about landlords.
Wendy Sweet (12:04):
Yeah. Especially most like most houses are owned, you know, four houses or less, right?
Jonathan Davis (12:09):
Yes. It’s five or less. And I think it’s what, 50% or more on five or less.
Bill Fairman (12:13):
Yeah. So why is it fair for small businesses to bear the brunt
Wendy Sweet (12:18):
Their rebuttle on this is that they want to disperse funds to the landlords to help pay for the rents. It’s not that aren’t getting paid, but the problem is they don’t have a good system in place to disperse the funds in the first place.
Jonathan Davis (12:37):
Like to me, it’s like, why on earth would you need a moratorium on evictions if you just sent the money to the landlords for the rents.
Wendy Sweet (12:45):
Jonathan Davis (12:46):
Why? Cause there’s no like, like what’s the thought process?
Wendy Sweet (12:50):
They should be able to get down if they’re not behaving
Bill Fairman (12:51):
Section eight works very well. Why not have those people apply for a relief? And then that money is sent to a landlord
Wendy Sweet (12:58):
But the problem is how do you get them to apply for relief? They’re not doing it. That the system that’s put in place is not,
Bill Fairman (13:05):
That’s my point.
Wendy Sweet (13:08):
It’s not set up right.
Bill Fairman (13:08):
They put the evictions in place. And now they have an incentive to apply it for a release.
Wendy Sweet (13:14):
That’s a good point.
Bill Fairman (13:14):
You have maybe a 60 day, you know, kind of leeway thing there.
Jonathan Davis (13:21):
Give them some timeframe to do it.
Wendy Sweet (13:22):
But then they’re going to assume that everybody that’s getting ready to be, they can’t read or write and how are they going to apply for it and blah, blah, blah, which absolutely is not the case.
Bill Fairman (13:32):
That said it is an efficient way of doing it.
Jonathan Davis (13:36):
39% of people are paying for those agencies to do that.
Bill Fairman (13:41):
There are. And I’m sorry, we were turning this into a Fest,
Wendy Sweet (13:48):
But that’s what we want to do today.
Bill Fairman (13:52):
I’m just about had it.
Wendy Sweet (13:55):
Bill Fairman (13:55):
I’m tired of the partisan on both, both sides. I’m doing it this way because this is the way I’m going to do it. Instead of listening to everyone, coming up with a logical solution.
Wendy Sweet (14:09):
That would work for everybody.
Bill Fairman (14:11):
Back in the Obama administration, and I haven’t told anybody this, but 2008, 2007 most of you already know my story, how I was out of a job at a 50 years old, middle management, my income went down to 25% of what it was. I had a wife that hadn’t worked in 13 years that needed to get a job. She went to work in a factory and I was ready to lose my house. I applied for the Obama funds to help protect me from losing my house. 50% of the people that went through that program, never had their homes foreclosed. And what they did was they paid your mortgage. If you qualify and they paid your mortgage for six months to go ahead and get you out not a problem so you get back on your feet and it worked for us and it was a great thing. It was also a second lien on your property. So you couldn’t turn around and sell your property for a profit, which was not a problem in 2009,
Jonathan Davis (15:18):
2008, 2009, you weren’t doing that.
Bill Fairman (15:19):
It was going to sell for a profit anyway. But that said, that was a very efficient program. It’s not like a state’s or the federal government’s program of fault. That only 50% of the people that went through the program actually did not end up getting foreclosed.
Jonathan Davis (15:36):
And so what you’re saying is the government program went and paid the.
Bill Fairman (15:43):
Jonathan Davis (15:43):
The state’s or whomever, let’s just say where it ends up.
Wendy Sweet (15:47):
Jonathan Davis (15:47):
To the mortgage company directly for someone’s mortgage. So in that same breath, you can say, man, wouldn’t logic dictate that we pay the landlords directly.
Bill Fairman (15:59):
And you’re doing it the same, the same way. They’re giving that money to the states and block grants to set these things up. But the states aren’t doing it right.
Wendy Sweet (16:07):
Yeah they’re doing a miserable job at doing that.
Bill Fairman (16:07):
Don’t know why, they did it fine with the homeowners things, but they’re not doing it with landlord.
Jonathan Davis (16:13):
I know some of the people were saying like, you know, they have to provide balance sheets, profit and loss statements, all this stuff like for the landlords do to apply. And I’m telling you, if you own four or five properties, you don’t have you don’t like, you probably don’t even know what a balance sheet is
Wendy Sweet (16:30):
That’s exactly right. That’s exactly right. There’s a lot of them that don’t.
Bill Fairman (16:33):
Well, I understand why they’re doing it because it’s really easy to rip off the government. And there are some stupid people that actually think they’re going to get away with it
Wendy Sweet (16:45):
Yeah well they could show a lein, they could show a bank statement.
Bill Fairman (16:47):
You know, eventually they’re going to get caught. It’s a matter of fact, that’s all last night where this couple built the US government for $15 million in PPP funds. And they were called, but recently they’ve removed their ankle bracelets and they ran off with 2 million of the ill gotten gains and they’re still looking for them. So anyway, it does happen. I understand why they want all this information. They want to prove that there’s actually tenants in there and that they’re paying. But I mean, you got leases in place. So somebody’s address all the utility bills. That’s pretty simple.
Jonathan Davis (17:26):
We were talking about walking, you know, knocking door to door to make sure people were vaccinated. Why don’t we just repurpose those people or the door to make, you know, is there a tenant in there? All right, let’s do this.
Wendy Sweet (17:38):
You have look at this. TheRealtor.com, the hottest zip codes that are growing.
Bill Fairman (17:43):
Have at it.
Wendy Sweet (17:43):
You want to talk about that? So realtor.com released its latest hottest zip code of 2021 report.
Jonathan Davis (17:51):
Zip code with a hard H. Hottest.
Wendy Sweet (17:51):
Jonathan Davis (17:52):
Wendy Sweet (17:52):
And based on their metrics, which nobody really knows what it is. So number one is Colorado Springs, Colorado. Number two is west iron dig.
Jonathan Davis (18:07):
On a Rhonda court?
Wendy Sweet (18:08):
I have never heard of that place. Anyway, it’s in New York. Peabody, Massachusetts, another well unknown place, Manchester, New Hampshire and Brentwood, North Carolina, which is, so Brentwood, North Carolina, number five. And that’s just outside of Raleigh.
Bill Fairman (18:26):
Little bedroom if you needed [Inaudible]
Wendy Sweet (18:27):
Yeah. So I thought that was interesting that there’s some Northeast, you know, to New York’s, well, a New York and New Hampshire and Massachusetts, is that? Yeah. That’s Massachusetts. And then of course Colorado out west. Really, I’m surprised that they’re from that area up there in the,
Jonathan Davis (18:45):
In the Northeast.
Wendy Sweet (18:46):
Yeah. Yeah. Pleasantly surprised.
Bill Fairman (18:49):
Well one of these are the suburbs of the,
Wendy Sweet (18:52):
Bill Fairman (18:53):
Larger populous areas people are trying to get away from.
Wendy Sweet (18:57):
Yeah. Hey, that’s a great way to look at it, Bill!
Bill Fairman (19:01):
Wendy Sweet (19:01):
I’m really impressed that you came up with that so quickly.
Bill Fairman (19:08):
Wow. I know, it’s great credit. Okay. It looks like it’s time for, enough of our breaing bitch fest moods.
Wendy Sweet (19:14):
Bill Fairman (19:15):
Let’s do our ugly question.
Bill Fairman (19:31):
So now we have three and a half minutes to go over our ugly question.
Jonathan Davis (19:33):
Wendy Sweet (19:33):
We spent a long time on that one
Bill Fairman (19:36):
So the ugly question is how did we get in to this shortage in the first place?
Jonathan Davis (19:41):
A housing shortage?
Wendy Sweet (19:43):
Please see the first 20 minutes of this show. there you have it.
Bill Fairman (19:49):
Well, to be honest, it goes back to 2007 and 8 when we had the housing crash. Guess what? There wasn’t a lot of houses being built.
Jonathan Davis (20:02):
No, I mean, yeah. Builders, everyone walked away, you know, most of them had filed bankruptcy. So like housing starts,
Bill Fairman (20:11):
Jonathan Davis (20:11):
Yeah, housing starts between 2009 and probably what? 2016? Or what? Half of what they are now?
Wendy Sweet (20:21):
Well the banks aren’t easy to borrow from. If you’re a builder, no matter what size you are. It’s not really easy to borrow from them anymore.
Bill Fairman (20:27):
Well let me bang this up a little to what happened to all the people that were in the construction industry?
Jonathan Davis (20:34):
They filed bankruptcy.
Bill Fairman (20:34):
Well, they moved on to something else.
Jonathan Davis (20:38):
Bill Fairman (20:38):
And it’s very difficult to get skilled labor back, especially when they don’t have certainty that it will continue. And so a lot of people just got out of the business all together. I laughed. I mean, it was sad, but I laughed when one of the paid technical schools, right in the middle of the crash, I started touting their general contractor studies. They were a little behind.
Jonathan Davis (21:15):
Yeah, no kidding.
Bill Fairman (21:17):
That really is the problem. Even if you wanted to ramp up, you can’t because you don’t have the skilled labor to do it. Now, what we’ve gotten is, we’ve gone through what, 10 years of them not building enough?
Jonathan Davis (21:29):
And the thing was that went through 10 years, not doing enough, but we had enough foreclosures and housing inventory for fixing flips and other kind of repositioning it. I mean, it’s always been a problem. It wasn’t as big of a problem. Now, that fix and flip inventory that low-hanging fruit isn’t as much there anymore.
Wendy Sweet (21:50):
Plus they’re all going to college now for big white collar jobs and nobody’s in the trades anymore. That’s everything.
Bill Fairman (21:59):
What didn’t change through the time?
Wendy Sweet (22:04):
Jonathan Davis (22:04):
Bill Fairman (22:09):
Well, what didn’t change was the creation of new households. So while we weren’t building any new homes and we were busy fixing up the old homes, which means we’re not adding anything to the inventory because we’re not keeping up with the formation of household.
Wendy Sweet (22:29):
Yes people continue to be born.
Bill Fairman (22:29):
But most people, yeah, that’s what I’m saying. Most people were
Jonathan Davis (22:32):
But since 1970, our fertility rate is down like 77%.
Bill Fairman (22:36):
Bill Fairman (22:38):
I’m not sure I’m comfortable speaking, talking around that topic.
Jonathan Davis (22:42):
We’ll talk later about fertility rates.
Wendy Sweet (22:46):
We’ve got to wrap it up, Bill. They gotta move on.
Bill Fairman (22:49):
That’s probably a contributor to the fertility rate over time.
Wendy Sweet (22:50):
Jonathan Davis (22:50):
No, wrapping it up.
Wendy Sweet (22:50):
And that was really funny, Jonathan
Bill Fairman (22:59):
I was asked once what I did about birth control. And I said, I typically rely on my personality for that.
Wendy Sweet (23:08):
Well said, my friend,
Bill Fairman (23:11):
We got into the housing shortage. It started back in 2007, 2008. And we just not been able to catch up since then. By the way, Brian always has great comments, too. Number of people turning 33 has,
Jonathan Davis (23:30):
Has been increasing year over year and will continue for the next few years. Average first-time home buyer is 33.
Bill Fairman (23:38):
Wendy Sweet (23:38):
Well said, Brian,
Bill Fairman (23:40):
Well, it takes them until they’re 33 to pay off most of the student debts.
Wendy Sweet (23:44):
Or to move out of my house.
Bill Fairman (23:44):
And then have enough income as their income increases. Because unlike there they think when they get out of college, they don’t deserve the corner office. It takes a while to move up the ranks.
Wendy Sweet (24:00):
Yeah. We actually hired somebody like that. That was very interesting. It didn’t last long.
Jonathan Davis (24:06):
You weren’t talking about me, right?
Wendy Sweet (24:08):
No, you’re over that.
Bill Fairman (24:11):
Jonathan what are we doing to help with,
Jonathan Davis (24:14):
Bill Fairman (24:14):
The shortage in new construction?
Jonathan Davis (24:17):
So our biggest push is for affordable housing. I mean, we have created, I like the word mandate. It goes around a lot today. We have created a mandate for ourselves to create a lot of affordable housing we are doing, I think we did a video on it before, but we’re finishing up a 44 townhome development in Augusta, Georgia. All those townhomes will be priced under a right at 180.
Wendy Sweet (24:43):
Great price point.
Jonathan Davis (24:43):
I know, right.
Bill Fairman (24:46):
To be clear, we’re not doing anything were doing, we’re just financing.
Wendy Sweet (24:48):
We’re lending money.
Jonathan Davis (24:49):
We’re just lending the money. So we give preference to affordable housing. Because we believe that people need out affordable place to live. We want people to be homeowners. We want people to have rentals. We want everyone to be successful and affordable housing, you know, and Bill says it well, you know, whether it’s your first home or your scaling down, or you’re an investor, these affordable houses are they work for everybody? So that one project in Augusta, we have another project in Clemson or just outside Clemson. We have a couple of projects here in Rock Hill.
Wendy Sweet (25:29):
And then the majority of our single family short-term fix and flip loans, the after repaired value, of those are under 300, right?
Jonathan Davis (25:38):
Oh yeah, I mean, if we took the average, let me see what it is. It’d be 230 would be our average price point or value of the home
Bill Fairman (25:47):
To be clear, to help keep homes affordable. I know Scott saying, can they afford the house? Well, you have to keep them affordable price down. But we are more than happy to take a look at the new double wides that the Havard, they call them,
Wendy Sweet (26:06):
Bill Fairman (26:08):
What is it called? Cross modular where the.
Jonathan Davis (26:12):
Bill Fairman (26:12):
They still have steel underneath the frame, but they bring them out and then you can add garages and stuff while it’s there. So your site building the, the garages and some other amenities. They look just like a regular homes
Wendy Sweet (26:30):
Bill Fairman (26:30):
And module homes.
Wendy Sweet (26:31):
We love doing rental loans. We have a long-term rental product for people who want to finance investor rental loans. But one of the things that Wendy, Bill and I, we believe in it’s like, we don’t want everyone or are the majority of the country or whatever it is like to, whats the quote? To rent and be happy. So we want people to own property, like, like having a 30 year mortgage has been one of the best drivers for building personal wealth over time. Generational wealth. And we want everyone to have that opportunity.
Wendy Sweet (27:08):
Right. All right. Well said, well said, so if you’re looking for a loan.
Bill Fairman (27:18):
I’ll get to than in a minute.
Wendy Sweet (27:18):
You got to wrap it up. It’s got to go like this.
Bill Fairman (27:22):
All right, folks, thank you so much. I hope that kind of gives you an idea of, of where the shortage has started and oh, by the way, it’s continued thanks to the pandemic Because people can work remotely. They’re willing to move out a little bit further. That said, there’s still plenty of people that still want to rent, but they want to rent in a single family meant necessarily an apartment. So it’s been really high demand for single family housing in a lot of areas and further and further out from the center of town. So don’t forget about our show coming up at one o’clock, we have our friend Jake Vanderslice coming on. He is in the self storage industry and they are just killing it. So we’re going to talk to him about, is now a good time to invest in real estate?
Wendy Sweet (28:11):
And if you’re interested in conventional lending, Brian Maddex if he’s still on here, Brian, I want you to put your contact information in there because Brian is a great source, if you’re interested in conventional lending
Bill Fairman (28:23):
And do it now before this show ends. So it will be on the notes which is permanently in there.
Jonathan Davis (28:29):
And then also I’m just on the go back to the Rock Hill sub group, the next group meeting. It’s always the first Wednesday of every month. So it would be October the first and we’re going to be doing, analyzing a couple of deals. So everyone can go in and do underwriting and due diligence alongside me and maybe a few others
Wendy Sweet (28:49):
Right. And that’s Jonathan, Jo-Nathan.
Jonathan Davis (28:53):
Wendy Sweet (28:53):
at CarolinaHardMoney.com and great there’s, Brian’s information as well.
Bill Fairman (28:56):
Thanks Brian As well in November, we have Oh Olson coming on. We’ve known for years and years started off in a neighborhood in Charlotte where the homes were like $70,000. He’s now in the middle of doing, I think three town homes. And it’s like in $1.8 million.
Jonathan Davis (29:20):
I was telling Bill. I remember, I think it would, it was one of the first homes that I walked with you all when I was buying notes from you.
Wendy Sweet (29:28):
Was one on his?
Jonathan Davis (29:28):
Was his, because he had those, with the,
Bill Fairman (29:33):
Jonathan Davis (29:33):
Butcherbox counter tops. And I was like, oh man, that’s great, it looks good.
Wendy Sweet (29:36):
That’s right, he was one of the firsts. That’s right. Awesome.
Bill Fairman (29:38):
All right. Thank you folks. Thanks again for joining us on the Real Estate Investor Show Hard Money for Real Estate Investors. We are Carolina Capital Management. And if you are interested in borrowing money,
Wendy Sweet (29:50):
Tell all your friends.
Bill Fairman (29:50):
Go to CarolinaHardMoney.com and click on the apply now tab, if you’re a passive investor looking for passive returns, then click on the accredited investor tab. Don’t forget to like share, subscribe, hit the bell. And again, don’t forget to sign up for Wednesday with Wendy. The link is right there in the sign and yes, Brian is a rock star. Thank you, Randy. Have a great day. See you at one o’clock.