180 What Types of Homes Are Selling NOW? – RE Investor Show – Hard Money for Real Estate Investors!

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180 What Types of Homes Are Selling NOW? – RE Investor Show – Hard Money for Real Estate Investors!

What Types of Homes Are Selling NOW?

The style of homes most people want right now is not what it was a few years ago. It may seem that people are downsizing and moving to smaller homes.

Although, when it comes to migration patterns, others are considering going out of the city limits and look for locations that can provide a “home office area”.

Plus, we all know what short-term rentals are but have you heard about the “teeny-houses” and the “teeny-weeny-houses”?

All these and more on Real Estate Investor Show – Hard Money for Real Estate Investors!

Timestamps:

0:01 – Introduction: “Migration Patterns & Hot Selling Houses“

0:36https://www.DealMaker2021.com

1:09https://www.CarolinaHardMoney.com

3:18 – Jonathan’s Collective Genius Mastermind Event

8:13 – Breaking News

8:27 – Mortgage Applications Are Up 7%

9:59 – Fannie Mae & Freddie Mac Are Reducing their Portfolio

12:15 – Loans In Forbearance Are Down to 1.6 million from 5 million

14:27 – What Types of Homes Are Selling NOW?

20:41 – Carolina’s new project: Senior Living Facility – Connect with: jonathan@carolinahardmoney.com

21:25 – Wednesday with Wendy: https://calendly.com/wendysweet/wednesdays-with-wendy?month=2021-10

22:39 – Next Show: Passive Accredited Investor Show with Heather Dreves, Director of Funding at Secured Investment Corp – https://youtu.be/zeSEAMIjsHg

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/

Jonathan Davis (00:01):

Hi, everyone. Migration patterns and homes that are hot right now that more right after this.

Jonathan Davis (00:22):

Hey, everyone. Welcome to our show. I have Wendy. She is on location and where are you at again, Wendy?

Wendy Sweet (00:32):

I feel like I’m the reporter on location. I am in Richmond, Virginia at the dealmaker 2021 event. This is like the eighth year and just got literally 15 minutes ago, I got off the stage. I got to speak to 200 investors. It was awesome.

Jonathan Davis (00:52):

That’s awesome. Before I forget, we are Carolina Capital Management. We are a lender in the Southeast. If you are a passive investor, which means you want to send your money into a relatively secure and safe place and you want to do nothing and just get mailbox money, we do that. You click on our investor tab at CarolinaHardMoney.com. And if you’re a borrower, we lend money every day. And we we’d love to talk to you about that and you click on the borrower tab. Also don’t forget to. I like it. I take the opportunity to not speak.

Wendy Sweet (01:46):

Well this unusual for us. We’re so used to having bill on with us either you and him or me and him, or the three of us together. And he’s Mr. Talks A Lot. So it’s really strange not having him.

Jonathan Davis (02:02):

And please, if you have any questions or comments, use the comment section to ask a question and Wendy and I will do our best to answer it or make something up and we’ll let you decide which it is.

Wendy Sweet (02:16):

That’s right. So we talked a little bit about me being here at the dealmaker session. It’s an event that he’s been doing for over eight years now and

Jonathan Davis (02:26):

This is Jim Ingersoll, right?

Wendy Sweet (02:27):

Jim Ingersoll. The quality of not only the speakers that are here, but the people in the room would just blow your mind. Some of our former Collective Genius, people are here as well. And it’s, Quincy is here, Quincy long with quest IRA and Jeff Watson, you know,

Jonathan Davis (02:47):

Tom Berry’s there. Right?

Wendy Sweet (02:49):

Tom Berry here, that’s exactly right. With ILSdash.cash. That’s his investor loan source company. He’s here too. And it’s so nice. This is like the first event that I’ve been to in 18 months speaking where, you know, it was a big group of people again. So it was really, really nice to actually hug some next and you know, see people for real. And you just got back from Collective Genius. How did that go?

Jonathan Davis (03:21):

Yeah, I did a, it was in sunny, Phoenix, Arizona. When I landed, I was like, man, it is hot here. And then I looked and it was 108 degrees. Oh my gosh. Whoa. Okay. All right. But no, the event was great.

Wendy Sweet (03:43):

But it’s a dry heat.

Jonathan Davis (03:43):

It is a dry heat, yeah. Jason Medley does a great job, you know, putting that event together. That’s the beautiful thing about that. If you’re doing it correctly, you are bringing your processes and procedures what’s working, what’s not working and a lot of humility to the room and also a lot of vulnerability to, you know, to let everyone peek into your business and what’s going on and offer, you know, offer their help. So, it was a good event. Oh Boy. Bill’s there right now. He’s playing some golf, I think, today. So he’s enjoying himself a little bit, but yeah, it was a great event. Great people. A lot of people we do business with on the self storage side and the industrial side are there. So it was good to connect.

Wendy Sweet (04:46):

Awesome. What’s your big takeaway that you got out of that like, you know, we all have, that’s the problem with going to these masterminds, when we come back, we want to change a million things and take all these great ideas and put them to work and, you know, but we have to be realistic. So what would you say your one or two biggest takeaways were from the event?

Jonathan Davis (05:09):

Well, I don’t feel as bad now for not being able to find a marketing manager because in our room I think, no less than 10 or 15 people are looking for the exact same thing.

Wendy Sweet (05:24):

Awesome. Oh I think I found one course by the way.

Jonathan Davis (05:28):

Oh good, good. Yeah. But I think on the other side, it’s, it’s utilizing social media to our best benefit. And one of the things that Eric Brewer got up and they were talking, it was just like, all right, before we even do this presentation, we want everyone to make a post on whatever social media platform you like or all of them and just ask for something. And, so, you know, everyone did. And then by the end into their hour-long presentation, which was on utilizing social media, they asked people to say, Hey, you know, in that hour, did anything happen? Well, Bill put out there that he was looking for people to, uh, you know, invest in our fund. And he had three direct messages within that hour of people interested in investing in the fund and, you know, Bill is just like it’s so easy and so simple. You don’t even think about it. You just need someone to remind you, like, Hey, just ask on social media, let’s see what happens.

Wendy Sweet (06:35):

That’s exactly right. That’s so funny that you said that because I was scrolling through Facebook this morning and I saw that he had posted that and I thought that he posted two different things. And I saw that one, sorry for the background noise, they’re pouring ice next to me, but it’s done. So I saw that post and I didn’t see any response on it. And I thought, oh, bummer. But I’m so glad to hear that he had some private messages. That was a, that’s a great idea. An excellent idea.

Jonathan Davis (07:05):

They brought up great points, you know, people who, you know, they went out to the streets and interview just random people and ask like, Hey, you know, if Jonathan Davis, if he doesn’t have a Facebook or you can’t find him on social media, how do you feel about that? And they’re like, no big deal. He’s probably a private guy. Which I don’t have any social media. I do have LinkedIn but you know, no big deal, he’s a private guy. Well, they said, well, what if Jonathan Davis owns a company and he has no social media presence. The first response out of most people’s mouth were, he’s probably a scam. So it is okay for people to not have social media presence, but it is definitely not okay for a business to not have a social media presence. So that was just a good reminder, like, Hey, you need to be making yourself known posting often and, you know, making yourself relevant.

Wendy Sweet (08:06):

That’s amazing. That’s really amazing, really good stuff. So do we have any breaking news today?

Jonathan Davis (08:15):

I think we do.

Jonathan Davis (08:29):

Mortgage purchase applications are up 7%

Wendy Sweet (08:34):

Really? They really are up 7&?

Jonathan Davis (08:37):

They are up 7%, uh, and refis down. I think refis are down 3%. But yeah, which is encouraging because we want to see those purchase applications increase. I think refi still make up a little over 60% of the applications, but the purchases are rising, which is a good indication for hopefully a stronger than expected fall

Wendy Sweet (09:08):

Wow. And you know, what’s amazing? Is this is our, we’re going into a slow season for them to go up at a time when we’re really going into a slow season. That’s pretty cool.

Jonathan Davis (09:18):

I don’t think it’s going to be a slow season. I think inventory is finally releasing, not at the rate that we need it to, but it is increasing and I think people are going to take advantage of that. Especially with virtual or hybrid work situations. I think it won’t make a difference for a lot of people to be moving. I think school might be the biggest issue. But you know, a lot of people are out two weeks for quarantine with schools every month.

Wendy Sweet (09:54):

So that’s, that’s cool. That’s cool. And so, so true. So, you know, the other breaking news that I’ve heard and I’m really, really excited about it is that Fannie Mae and Freddie Mac are changing their pattern a little bit. One of the things that happened recently is that they reduced the amount of investor loans that they were doing. They reduced their portfolio. Remember from 15 down to, 15% down to 7.5% and they were getting ready to cut it in half again. And it just so happens that they’re releasing that and going back up to the 15% they’re opening things back up again. I thought that was pretty interesting.

Jonathan Davis (10:41):

Well, I mean, I think hopefully they can read the data as well as anyone else. And the data is those investor loans are a good bet. I think especially now that, you know, rents are increasing, rents are being paid now, there’s still some back owed rents for sure. I mean, I’m not marginalizing, you know, people who still haven’t been paid in full yet, but for the most part, rents are appreciating and people are paying them. And they’re like, you know, maybe the, you know, Fannie and Freddie are saying well, okay, that’s enough sign for us to open things back up.

Wendy Sweet (11:19):

Yeah. I hope it’s not too little too late though, because what they did when they, when they did that, as they opened the door for all of these non-qualifying lenders to crawl out of the woodwork. And I mean, they’re crawling out of the woodwork because they’re now able to offer rights that are really similar to what Freddie Mac is doing.

Jonathan Davis (11:43):

And well, not just the rates. I mean, yeah. They can do similar higher rates but their process is so much faster.

Wendy Sweet (11:51):

Oh yeah. Oh yeah, no tax returns. They’re looking for what? Bank statements and they like experience, but it’s not necessary. They’ll do it in your entity where, you know, these conventional lenders won’t do it. But, and that’s pretty interesting. I think I’m anxious to see how that, how that unfolds.

Jonathan Davis (12:12):

Yeah, absolutely. Absolutely. Yeah. And what is it, we also saw that loans total, our down loans that are in forbearance are down, which is really good. I mean, I think we started somewhere in the, you know, little over 5 million loans and now it’s down to 1.6 million.

Wendy Sweet (12:35):

That’s amazing.

Jonathan Davis (12:37):

Yeah. So that’s, that’s a great thing. So, and you know, what’s also fueling that is there’s more conversations around modifications or maybe even incentive for people to want to bring their loans current because of the equity that they attained in the last few months. I think it went something to the effect of home equity in America has risen $3 trillion in the last, well say let’s last six months. Like in that, that’s crazy. It went from 6 trillion of equity to 9 trillion of equity. That is big numbers.

Wendy Sweet (13:23):

Yeah. That’s a lot. So, you know, I was wondering too, when you’re talking about how forbearances have dropped, do we have a count on how many came out of forbearance and how many went from forbearance into foreclosure?

Jonathan Davis (13:37):

So I don’t have those numbers. I’m trying to, I’m trying to get them but yeah, that’s how many have, you know, how many went re-performing and then how many went straight non-performing. Imagine the majority went re-performing of the, you know, the 3.4 that have dropped out. But yeah that would be a good number to know of what percentage went non-performing, what percentage, you know, was going to is going to be coming through the system that could potentially be an investment opportunity for our investors out there.

Wendy Sweet (14:16):

That’s exactly right. So do we have an ugly question today?

Jonathan Davis (14:24):

Did we, I don’t know if we have an ugly question, but we have a question and it’s a, what’s our question? It’s something about migration and what types of homes are selling now. Which is interesting. I know you can probably speak better to this. But the style of home that people are after right now is not what it was a few years ago. Can you speak to that a little bit, Wendy?

Wendy Sweet (14:55):

Well, it really depends on where the house is located. It seems that a lot of people are down sizing and going to smaller homes, but it also seems like the people that are moving outside of the city limits or into a much more open area, that they’re going bigger. They tend to go bigger because they’re looking for that home office and that fourth bedroom. So we’re seeing that as a big difference. One of the things that I think is really interesting, this event that I’m at this, Dealmaker 2020, there was a whole day yesterday of speakers that were talking all about unique properties, short-term rentals and smaller properties. There’s one girl in particular, her name is Lisa Angleheart, and she has a program that she is doing where she has already put together the floor plans for what she calls teeny house and a teeny mini house. Now the teeny house is a 600 square foot house. The teeny mini house is 300 square feet or less. So and she’s been a really successful in what she’s doing. She’s putting them everywhere. Of course it has to be in an area where she’s allowed to put two units on one lot. But that just seems like the recurring theme here at this event is people building smaller homes that, you know, a thousand square feet and less is becoming more and more popular.

Jonathan Davis (16:35):

That’s interesting. Yeah. That’s very interesting. So, and then you see people who are searching for those homes and usually trying to escape high rents, like high rental areas, and they’re going to go after these type of homes and they’re migrating from like, you know, let’s say downtown Charlotte area and moving more into a more rural of York county or Cabarrus county, which of those are surrounding counties even Gaston county. And then we see people moving into, was it Lancaster county?

Wendy Sweet (17:19):

Yeah, it’s actually crazy. You know, it was, less than a year or ago that I was telling people if you’re looking in Lancaster or Chester, you’re crazy that there’s nothing going on down there that it’s so rural. And so out of the way that people aren’t, they’re just not buying down there. You could get great deals. Well, guess what, they’re two of the hottest markets in our area now because people are wanting to get to that area. And one of the things that I think is really interesting is not only are they wanting to go rural, but these tiny house or teeny house things are popping up everywhere. Even your county, which is, you know, the county, our office is located in, they used to not allow a tiny house or any square footage under 700 square feet. And they’re in the process of changing that now and lowering that square foot counts. So even the different municipalities are kind of catching wind of, Hey, you know, we gotta look at change in some, some restrictions, because there were too many people that want these things. And when we’re talking tiny houses, we’re not talking about tiny houses on wheels. We’re talking about small stick-built homes.

Jonathan Davis (18:33):

Yeah. Yeah. Let me ask you this quick, oh go ahead.

Wendy Sweet (18:37):

Well, we had a guy on our show a few months ago that is doing entire neighborhoods of tiny houses, stick, built, tiny houses over in Portland. Remember we were talking with him?

Jonathan Davis (18:49):

It’s Ryan Andrews. And that is with, uh, what’s the name of his company? Oh, gosh, I forgot.

Wendy Sweet (18:57):

Hiatus Homes.

Jonathan Davis (18:58):

Hiatus Homes. That’s what it’s called Hiatus Homes

Wendy Sweet (19:00):

That’s right. He was looking for investors. I mean, that’s a great plan. I mean, and they’re selling for nearly a million dollars a piece.

Jonathan Davis (19:08):

And that’s in the Oregon area, but I mean, yeah. Think about this, like the people who live, who enjoy the downtown scene, like, you know, we’ll use Charlotte as an example, uh, you know, enjoy the downtown scene, but maybe they’re, you know, they’re more into that organic food. They’re more into the experience. Like those are the type of people who are moving to the suburbs and the rural areas to move to these type of tiny home communities, because that fits, that fits what they’re looking at. Like they’re looking for, they like the people around them. They like all, you know, the community aspect, but they also like these other things like organic farms, which are a big component of a lot of those communities or, you know, communal fire pits and, you know, all, you know, all the good stuff. So it is interesting. And I would love to be a part of a tiny home community. We haven’t had that opportunity yet. But I would love if we could, if we could look at one in north or South Carolina, so someone out there has an opportunity for that. Uh, please reach out to us. We’d love to talk to you about it

Wendy Sweet (20:25):

All I have to do is make that announcement today and we’ll have somebody in the pipeline cause I’ve got 200 people in front of me that are ready to do it.

Jonathan Davis (20:32):

Yeah. Awesome. Awesome. Yeah. And one of the things I did want to say just to put it out there we will be involved in a new construction, senior living facility. We will be looking to do that in the next several months. And if you are interested in being involved in that from a debt perspective. We would love to talk to you guys about that

Wendy Sweet (21:04):

Accredited investors, right?

Jonathan Davis (21:06):

Yeah. Well accredited investors, for sure. If you’re doing the debt side, if you’re buying a piece of a note, then you don’t have to be accredited. So there are several options.

Wendy Sweet (21:16):

Awesome. Awesome. I’ve got people here I’ve been telling about that as well. Then I’ll make sure I send over to you as well. So, you know, another thing about speaking up here, I mentioned the Wednesday with Wendy and I have six bookings before I even sat down from speaking. So that’s cool. So we want to talk about, we want to show that, right?

Jonathan Davis (21:38):

Yeah. Let’s, let’s bring up the Wednesday with Wendy graphic. So Wednesday with Wendy is an awesome, awesome way that Wendy gives back. She gives I think 30 minutes of her time to each person, every Wednesday to talk about real estate related things. If you are interested in how to structure a deal, what you do with your company, you know, venturing off into a new kind of, venture whether it’s self storage, new construction development, what have you, it would be worth your while to sit with Wendy and pick her brain.

Wendy Sweet (22:31):

Awesome. And the link is in the comment section, I believe as well. So, uh, do you want to talk a little bit about the show we got coming up?

Jonathan Davis (22:39):

Yeah. So with our next guest with, I think the one o’clock show is Heather Dreves and that is from Secured Investments. That is a fund that they run out of Idaho. She works with Lee Arnold and she runs that show over there, and she does a fantastic job. She was on a previous show with us. I think it was women in real estate and she is one of the heavy hitters in this field.

Wendy Sweet (23:12):

Awesome. Awesome. I can’t wait to see it and the connection or the way to connect is also in our chat box.

Jonathan Davis (23:19):

We’ll be talking about, I think it’s her Reg A Plus fund and maybe some other fund related items, but that’ll be, that’ll be fun if you’re interested in knowing more about funds. It’ll be fun.

Wendy Sweet (23:36):

She’s sharp. She’s sharp as a tack. No doubt about it. Awesome. So you have spent another great wonderful day with us and we really appreciate it. This is the Real Estate Investor show where we lend hard money. If you are interested in becoming a borrower, just go to CarolinaHardMoney.com, click on the borrower tab. If you are interested in becoming an investor in our fund, all you have to do is again, go to CarolinaHardMoney.com and click on the accredited investor tab. So don’t forget to like share, subscribe, hit that bell. And Jonathan, do you have any final words?

Jonathan Davis (24:24):

No, no. See you all on the next show and appreciate you tuning in. Again, if you are interested in looking at new construction on a senior living, please reach out to us. We would love to talk to you about that opportunity.

Wendy Sweet (24:43):

Awesome. And really you’re the person to contact for that. And that’s jonathan@carolinahardmoney.com, right?

Wendy Sweet (24:49):

Yeah. Jo-Nathan J O N T H a N.

Wendy Sweet (24:54):

It, I say

Wendy Sweet (24:54):

That because people throw ages in all kinds of weird places.

Wendy Sweet (24:58):

There’s many ways to spell Jonathan. Awesome. Listen, you have a great day and we’ll see you on the next show.

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