53 Economic Conditions With Bill, Wendy and Jonathan

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53 Economic Conditions With Bill, Wendy and Jonathan

Bill Fairman (00:03):

Hi everyone. It’s Bill Fairman with Carolina Capital Management. Along with Jonathan Davis. And then Wendy Sweet is over in the corner. We’re trying to be socially distant as possible. And I think we talked about this before. Wendy and I have been socially distant for most of our lives.

Wendy Sweet (00:26):

Yeah. 58 years.

Bill Fairman (00:30):

We’re siblings. By the way, don’t forget to share, like subscribe. And if you have any information, I’m sorry. If you’d like any more information,

Wendy Sweet (00:41):

if you have any, we’ll take that too.

Jonathan Davis (00:44):

All the information we can get.

Wendy Sweet (00:47):

That’s right!

Bill Fairman (00:47):

We’re all about learning. So yes.

Wendy Sweet (00:48):

That’s right!

Bill Fairman (00:49):

By the way, that reminds me if you have any information, you can put it in the little chat box there.

Wendy Sweet (00:55):

That’s right!

Bill Fairman (00:56):

But our web address is CarolinaHardMoney.com. And again, if you do have any questions, you can pop them over there in the, in the little chat box. So how’s things going? How do you like working from home?

Jonathan Davis (01:09):

You know, it’s nice. Well, little noisier than I’m used to, but it’s not terrible.

Bill Fairman (01:16):

You work and then you say “Stop it!”.

Jonathan Davis (01:18):

I know. I was telling Bill earlier, I was like, I’ve threatened to take away the same toy about seven times now. Man. It’s, it’s a little different, but it’s good.

Wendy Sweet (01:29):

We should try that here at the office.

Jonathan Davis (01:31):

Oh yeah. Right. Yeah.

Bill Fairman (01:33):

Well it goes without saying. We are working in a different world now than we did a month ago. Right? So let me give you, I want to say highlights but, some of them are low lights. So today, what is today’s date? The 15th?

Wendy Sweet (01:51):

The 16th. It’s the end of Passover today.

Bill Fairman (01:53):

Okay. So, Thursday the 16th. These numbers came out this morning. The new unemployment, first time, applications, 5.25million.

Jonathan Davis (02:06):


Bill Fairman (02:06):

That brings us to a total so far since this happened, around 23 million

Wendy Sweet (02:12):

Unemployed. 23million unemployed?

Jonathan Davis (02:15):


Bill Fairman (02:16):

Filed for first time unemployment applications. That’s a lot. Now, you know, that’s the bad news. However, you know, there are some good news to that. Some of it is that these are, a lot of these are temporary furlough. But there’s also going to be a lot of people that those jobs will never come back. There’s going to be businesses that are not gonna make it through this as well.

Jonathan Davis (02:43):

Yeah. And I wonder as an aside, I guess, but how many people don’t want to go back to work because of that, you know, the extra money that they’re getting. I’ve talked to several people and they are making more money, unemployment and the extra $600 a week. Than they were at their place of employment.

Bill Fairman (03:01):

However, that only lasts for what? Four months is the max?

Jonathan Davis (03:07):

I think four months is the max. Yeah.

Bill Fairman (03:08):

And they’re also going to have taxes due at the end of that period.

Jonathan Davis (03:11):

Well no one’s thinking about, no, you’re not thinking about taxes.

Bill Fairman (03:14):

So we’re going to have this big bill at the end of the year. So that being said, I think most people want to work. You know, they don’t want to be dependent on the government because that’s not going to last long anyway. Now another good piece of this being temporary and the fact that some businesses will never come back because lifestyles and patterns have changed. Which means there’s opportunity for other businesses to fill those gaps.

Jonathan Davis (03:46):


Bill Fairman (03:46):

There’s hiring opportunities elsewhere. I mean, look at the, all the grocery stores for Amazons, everybody that needs the delivery. So you had your Uber drivers that were halling people around, now they’re halling food around. Or they’re delivering groceries in those same automobiles. So…

Jonathan Davis (04:03):

And even what we were talking about earlier with Mindy was, we noticed in our own office like, we can do a lot of things virtually. How many businesses can’t? And those are the ones who are fading quickly.

Bill Fairman (04:18):

Yeah, I think some of the issues with ordering online and stuff are going to be in the demographic that are, you know, about 50. They may have issues. But when you get into the 80 year olds. And then my mother-in-law didn’t even own a computer. So there’s no way she’s ordering groceries online.

Jonathan Davis (04:39):

She has a phone, right? She can…

Bill Fairman (04:41):

Yeah. Anyway, moving along. Housing starts. Housing starts were down.

Jonathan Davis (04:52):

What do you mean by housing starts?

Bill Fairman (04:54):

New homes being built.

Jonathan Davis (04:55):

New homes being built. Okay.

Bill Fairman (04:56):

And I’m sorry. Thank you. Residential single family housing starts were down 22% this month over last month. Building permits were down on everything. But multifamily, they were actually up.

Jonathan Davis (05:13):


Bill Fairman (05:16):

So, and I’m kind of a data nerd. I watch all the business shows. And a couple of the knuckleheads were saying that because of the economy, the uncertainty, people aren’t going to be buying homes, they’re going to be moving into apartments. And that’s why there’s more building permits for multifamily. And we all know we’re in the business. You don’t just start with a subdivision and then turn it into multifamily. It takes a little while to get the…

Jonathan Davis (05:48):

Those are big projects. Those are…

Bill Fairman (05:51):

And besides that, you can’t just, it’s got to be zoned properly.

Jonathan Davis (05:55):

Yeah. You have to have the right zone and you have to have the right infrastructure in place. I mean, yeah, you just, like you said, you just can’t convert.

Bill Fairman (06:02):

So either…

Wendy Sweet (06:03):

But then you’ve got, you also have other analysts that are all saying now that instead of having multifamily that people are gonna really want to move into the single family arena. Because of the social distancing, they’re not comfortable anymore being so close to their neighbor. People who have worked out of their homes. And they’re smaller or they’re in apartments and they’re smaller, they’re now going to want to be in a place where they have more space because they’re getting used to working virtually. That’s one of the things we talked about as, wow! It really is easy to work virtually and gosh, we’re getting so much more done. Because we’re able to work virtually. So, you’ve got, you know, two different camps that saying completely opposite things. And so nobody really knows. My crystal ball broke back in 2007. You know, I wish I knew what was going, but you know, it’s, it’s really up for grabs. We don’t know what’s going to happen. So there’s our show.

Jonathan Davis (07:07):

What do we know? We do know the data points that you just pointed out. We also know that before there was a housing shortage on the single family side. That housing shortage hasn’t gone down. Right. So, you know, what we can do is, you know, then postulate what we think will happen based on the information that we have. And you know, my opinion is you’re seeing…

Bill Fairman (07:30):

Postulate! That’s his $5 word.

Speaker 2 (07:31):

it’s a big word. He gets three points for that.

Jonathan Davis (07:34):

My opinion is, we’re going to see when this all breaks, the Covid19 and you know, the social distancing is. You know, the markets open back up. We’re going to see, I think a lot more single family sales on the end user buyer. I think, the values that perhaps might get hurt the most are your lower end rentals, but if they’re cash flowing, just keep them where they are.

Wendy Sweet (08:00):

That’s right!

Jonathan Davis (08:01):

So, you know, and if they’re not cash flowing, well, I’m sorry, that may have not been the best…

Bill Fairman (08:12):


Wendy Sweet (08:12):

Well, you know, with us, with us, I’m sorry Bill. That, he’s not next to me so he can’t hit me to make me stop talking. So, you know, the other thing too is for us, our loans, our borrowers have not changed. We’re still getting draw requests on a regular basis. They’re still doing work. All the contractors are still doing what they need to do. I’ve had a couple people tell me that they’ve had contractors that have been no show problems. But they’re the ones that were no show to problems to begin with. So, investors that are doing fix and flip are still moving. We’re still getting calls about, you know, people wanting to borrow money and we’re actually getting ready to ramp that back up again to where we’re putting loans in our pipeline. Of course they’re going to be a bit tighter than what they once were, but that, that market is still just as strong as it can be. And I think we, we talked about, we discussed this offline a little earlier about, there may not be as many new construction permits being pulled and that just means that the fix and flip market’s going to be even stronger.

Bill Fairman (09:20):

Well I was going to mention on the, the apartment starts. It’s a lot easier to take a mixed use development and you know, that’s in the pipeline and say, alright well let’s just start the multifamily part of this first. Get it going. And not worry too much about the commercial piece because you don’t know what the restaurant and the retail business is going to be like. So let’s start on the multifamily cause we know we could probably get those leased up fairly quickly. So, that makes sense there. One of the other things that came in yesterday was the home builder sentiment monthly report. And this is, I love this…

Wendy Sweet (10:01):


Bill Fairman (10:04):

They don’t actually go by numbers. They go by how they’re feeling.

Wendy Sweet (10:09):

That’s true! That’s really what it is.

Speaker 1 (10:11):

So they pull all these, you know, builders. And they say, so how are you feeling about sales? Not, how are your sales, how are you feeling? Future sales, and the scale is from 1 to 100.

Jonathan Davis (10:26):

That’s a large scale.

Bill Fairman (10:26):

A hundred is good. One is bad. And so for the past three or four years, it’s been in the upper eighties, lower nineties, and it came in at 38.

Jonathan Davis (10:40):


Bill Fairman (10:41):

So, that along with the lower housing starts, actually kind of tease us up because if they’re not building and there’s still demand out there. And then that means, the people that are doing the rehab are going to be at the head of the curve when this thing turns around. Your biggest concerns are the people that are buying homes. How are the mortgage bankers going to look at somebody that had to have deferred for three months or they’re moving from one house to another. And they send out a mortgage verification and there was the ferment or, you know, some kind of payment issue. They’re going to count against them cause it was all in this timeframe.

Jonathan Davis (11:35):

Good points.

Bill Fairman (11:36):

When you send out a verification of employment and you know…

Jonathan Davis (11:39):

You have a gap in your pay history…

Bill Fairman (11:41):

They were laid off for it, certain period of time. Is that going to affect them qualifying for a loan? So I think there’s going to be a lot of opportunity for private lenders on their consumer mortgage side of things too.

Wendy Sweet (11:57):

Yeah, that’s true. However, when you’ve got 23 million people in the same boat, it makes me wonder if they won’t change their underwriting guidelines for a certain part, or a particular timeframe to overlook those kinds of things. Because that’s going to be a really, really big deal. One of the things that we’re seeing in the next six months for loans for investors is, and I think everybody’s going to see this, is that everybody’s guideline box is going to be a whole lot tighter than it had been. I mean, even for us, we were doing a hundred percent purchase and a hundred percent of the rehab at 70% of the ARV. So now we’re down at 65%. 90% of the purchase, a hundred percent of the, of the rehab amount. We care about how much of the purchase, how much of the whole loan is dedicated to just the rehab. You know, we’re trying to limit our exposure. I know that others are going to do the same. And I wonder if this is something that will stay in place. It’s good for everybody if it does stay in place because investors need to be concerned about their exposure as well, you know, or is it something that’s going to get tighter in the future that, you know, you really don’t know what that’s going to look like.

Bill Fairman (13:24):

Well, yeah. And you don’t, you just have to be patient. See how things are going to work out. Again, to Jonathan’s point, there’s demand for housing.

Wendy Sweet (13:35):

Yeah, absolutely!

Bill Fairman (13:36):

We still keep birth in babies.

Wendy Sweet (13:39):

There’s probably going to be a lot more in the next nine months.

Bill Fairman (13:44):

So, they’re either fighting at home or making up one of the two. And then, I’m thinking that’s why Lowe’s and Home Depot has been so busy. People are sitting in these houses going, wow! I thought 1500 square feet was a lot more room than this.

Jonathan Davis (14:02):

I need to get outside and do something.

Bill Fairman (14:04):

I need some extra space back here with you all the time. So, and then same thing happened in ’07, ’08, ’09. People stayed in their homes longer and instead of looking out to buy a new house, they just improved the one they had or expanded the one they had. I think, in the long run, you’re not going to, the only reason you’re going to see new loans is from refinancing. Now, I don’t mean totally new loans, but I think being in the same mortgage for more than seven years is not going to happen because everybody’s refinancing. That’s way too long. But I see people staying in their homes longer if possible, not moving.

Jonathan Davis (14:52):

If they’re already in a single family home. Right. Yeah.

Wendy Sweet (14:55):

You know, another thing I think we all need to be seriously aware of, is the values of the properties and what they’re going to look like. I was listening to Dave Steck. Have a conversation, a webinar that was extremely informative. He’s a data guy, really, really does a lot of in depth data research. And one of the things that he said really stuck with me, even in 2007, when everything went to hell in a hand basket. It still took even from 2000 on, it took 18 to 21 months for the values of the properties to bottom out. So even when we get back up and running again, that’s something that we need to be really, everyone, every investor needs to be concerned about this. What are, you know, where’s the bottom going to be? How long is it going to take us to get to that point? And how far will it go? We really don’t, we don’t know the answer to that, but we need to be aware of it. Tread lightly. I love the term patients that you used, Bill. I don’t think people should stop buying. We just need to make sure we’re getting better deals and, and understand that the values are going to go down. I don’t think there’s any way around that. We just don’t know how far that’s going to go. And we need to understand that it’s not going to happen overnight. It’s going to take, this is going to take some time.

Jonathan Davis (16:29):

Good points.

Bill Fairman (16:29):

Well, one of the things that’s going to help that is that although sales are down, new purchases are down, inventory is down too.

Wendy Sweet (16:38):

That’s true.

Bill Fairman (16:39):

So that’s going to keep the prices, I want to say artificially high. Because you don’t have a big demand for people trying to sell their homes. They’re not putting them all in the market. Because they’re afraid of not being able to buy a new one.

Jonathan Davis (16:56):

Yeah. Get what they want out of their home and buy a new one. Yeah.

Bill Fairman (16:58):

So, you’re still going to see higher demand typically. Then you’re going to see, supply. Because we’re still forming a household. There’s no way around that. We were already behind.

Wendy Sweet (17:11):

And I think a lot of reason why there aren’t a lot of houses on the market, number one is, people don’t want other people walking through their houses. And in many States it’s, you can’t even legally do that well with the new rules that have come out. So, vacant houses are doing really well as far as showings are concerned and that’s really all you’re seeing on the market. Also, anybody who is putting their house on the market and with a really good real estate agent, the agent’s going to tell them, Hey, I wouldn’t be on the market during this time anyway because when things start do moving again, it’s going to like they were on the market for a very long time when it’s really going to be a flawed count of how many days that property was really available to sell because you’ve got two months where it’s not going to sell anyway. And when people see that it’s been on the market for a while, they’re going to come in with lower offers and it just makes the whole deal look a lot worse to a lot of people. So I think that’s why the inventory is really down.

Bill Fairman (18:17):

So here’s what FEMA needs to do, or the government. They need to go in. And they need to get all these FEMA trailers that they’re not using for disasters. They need to park them at everyone’s house that’s listed and then they can move into the FEMA trailer. That way, when people come to look at their house. They won’t be afraid that they’re bringing a disease in there because they’re living in the trailer anyway.

Jonathan Davis (18:40):

We have a couch that we were looking to sell and I mean, we can’t even sell the couch cause we don’t, you know, my wife doesn’t want people in our house right now. I mean take that to the next degree and yeah. And people’s homes. I get it.

Bill Fairman (18:57):

There’s a great question.

Wendy Sweet (18:58):

Yeah. Like what, Sohil is saying here,

Bill Fairman (19:01):

It’s about the wholesalers. People still think their house is worth a certain amount. Well, it may still be. That’s the problem. With wholesalers, you still need to find out what the pain point is. I’d still be negotiating lower because let’s face it, you’re probably gonna have fewer people knocking on their door.

Wendy Sweet (19:28):

Yeah. The buyers are slimmer right now.

Bill Fairman (19:30):

And that’s part of the problem of it. Taking a while for the values to drop over time because you still have all these comparables.

Jonathan Davis (19:42):

Yeah. They take a while to work out.

Bill Fairman (19:44):

When you’re looking at close sales, you’re looking in the rear view mirror.

Jonathan Davis (19:48):

You look back, you know, six to 12 months or sooner if you can get them. But yeah.

Bill Fairman (19:54):

Well the thing about on the wholesaling side, it’s all about I need to sell this now. You need to find out what their reason for selling the house in the first place. That’s going to determine whether you’re going to get a good price on it or not. And that’s the only way I can really help you right now. Trying to figure out what their pain point is. And then solving that. It’s not necessarily all about price. Sometimes it’s about being able to work with somebody where you can do a subject to.

Wendy Sweet (20:30):

Or seller financing.

Bill Fairman (20:32):

Utilizing their current financing. So you have to look at other ways to make the deal. I mean, you can only find that out by understanding sellers.

Wendy Sweet (20:43):

That’s right.

Wendy Sweet (20:48):

You know, there’s a comment in the chat asking about what a foreclosures go way up. And you know, that’s always a possibility. That would happen. And I think, you know, that would be a good thing for investors. Of course, if the foreclosures go back up. What was the other question that just popped up? I didn’t get a chance to read it.

Bill Fairman (21:14):

Well, it was mainly about, making sure you have cash reserves because a lot of people hurting a lot of people out of jobs.

Wendy Sweet (21:23):

Cash is King right now,

Bill Fairman (21:24):

You’re going to have to have cash and I’m going to get into that too with what we’re doing with the fund and this might be a great, great place to start that anyway. All funds are operating a little bit differently. Our fund is strictly lending. And it’s, it’s a short term loan that we’re doing anyway. The beauty of short term loans is they’re typically high yielding. The downside of short term loans is there are short term. And you’re constantly having to turn them over in order to make the peak return in your fund.

Jonathan Davis (22:03):

Correct. Yeah.

Bill Fairman (22:05):

When, things like this happen and we were very fortunate. A year ago and because we’re part of all these groups, we realized that the market was already at its peak. And I don’t want to say we knew this was coming, but we knew it was at the peak and the only thing they could do is go down.

Jonathan Davis (22:25):

Yeah. Yeah. Whatever that, whatever the catalyst was for, it was weeping down.

Bill Fairman (22:30):

You know, we used to do very large luxury homes, which is a lot easier for us as a lender because it’s less work and it’s more money.

Jonathan Davis (22:40):

Yeah. You work as hard on a million dollar transaction as a lender, as you do a hundred thousand.

Wendy Sweet (22:44):

That’s right.

Bill Fairman (22:45):

The downside to that is if a few of them go bad, then you’re out a lot more money.

Jonathan Davis (22:51):

Very true.

Bill Fairman (22:52):

That said, that the single family home that is the most, I guess wanted out there, the biggest piece of the bank public is buying the affordable house. If you got your first time home buyers fit into that category, you got your empty nesters that fit into that category, and you have investors that are buying homes to rent or all in that category. So those homes are always going to have a place

Wendy Sweet (23:21):

And affordable in our area, in the Southeast area is about 300 and under.

Bill Fairman (23:27):

Right. Yeah. So our average loan size went from 258,000 down to 155.

Jonathan Davis (23:39):


Bill Fairman (23:39):

So, and then the same thing with small multi-families. We’re staying in the affordable housing. So, as a fund, we’re in really good shape because worst case scenario, if we had to foreclose on every single property that we have, and we know that’s not going to happen. We can at least rent these things out. If we can’t sell them quickly. It’s hard to sell a million dollar house quickly because there’s very few people that can afford them.

Jonathan Davis (24:06):

It’s hard to rent a million dollar house.

Bill Fairman (24:09):

You cant rent a million dollar house or anywhere near your expected return. You can do that with a 200 or $300,000 house. Absolutely. And there’s still, people are still being able to do their fix and flips right now. Our area has not been shut down. Where building is not going on.

Jonathan Davis (24:28):

Active construction is essential. So, yeah.

Bill Fairman (24:32):

And the liquor store.

Jonathan Davis (24:33):

And the liquor store.

Wendy Sweet (24:34):

Well then Bill too, you need to really talk about, you know, when people are looking at their market and wondering what’s going to happen in their market. You have to really look at and you brought this up. What is the employment opportunity in your area? You know, we’ve got American airlines hub here with 33,000 employees. That have been, you know, really booted out for a while. Where we’ve got lots of hotel tourism going on here. Johnson and Wales is the big restaurant college that’s here in downtown Charlotte. And so we got restaurants galore. They’re mostly out of work. It’s, you know, we, we’ve got a pretty big segment that’s been hit, so people need to look in their areas too and see what, you know, what’s your main employer status there. What, you know, are they hurting or are, is it medical, are they working like crazy? So, you really have to think about that.

Bill Fairman (25:38):

Yeah. And unfortunately in our market where we have a lot of diversity in employment here. So, while the tourism industry and people taking flight to really taking a hit. We have logistics here that is just blowing up. So the people that are delivering goods and services to homes are really, really huge here. So well some people are going to be displaced and these markets are going to be able to make it up in some of these other businesses that are, that are taken off. So, yes, when it makes a great point, you in every area is a little bit different. I know South Florida is really hit hard because they had the cruise industry. They have all the hotels and…

Jonathan Davis (26:24):

Restaurants.I mean everything. Yeah.

Bill Fairman (26:26):

They have all this. And one of the other industries that are kind of hit hard or the active senior living. Because now they’re all basically caged in. They can’t go anywhere. So it’s not that very active is it?

Jonathan Davis (26:43):

Not an active kid anymore.

Bill Fairman (26:44):

So, back to finish my point on the fund side and getting back into the, to the reserves. So, in our fund, you’re going to be getting a little bit less of a return than you’ve been used to. And part of that reason is because we are taking extra money, extra funds each quarter. We’re putting them aside for loan loss reserves because we want to make sure that we have plenty of reserves in case we do have some issues with being able to collect payments or if we have to take properties back. We have to pay to have those foreclosed on and marketed and that type of thing. At the same time, we’re not lending as much because we are being…

Wendy Sweet (27:25):


Bill Fairman (27:26):

And choosy because we’re not exactly sure what the values are going to be in the next four, six months. So we’re thinking a more conservative approach with…

Jonathan Davis (27:39):

Which is also a really a good thing for short term lending. Yeah. You know, that’s another highlight point for us. I mean our loans average term are what? Nine months? Thereabouts. Markets don’t typically shift dramatically in that time frame.

Bill Fairman (27:52):

And back to that patience.

Jonathan Davis (27:54):


Bill Fairman (27:55):

Yeah. The key is just to be patient. You don’t want to just stop lending, but you don’t want to make the deal. Well, we never made deals that if everything had to work perfectly. It was going to work.

Jonathan Davis (28:08):

It never does. Yeah.

Wendy Sweet (28:10):

Not that I’m saying.

Bill Fairman (28:12):

If you’re buying properties, you need to stress them. If they’re going to be on the market in extra six months, can you still handle it? That’s what we’re looking at.

Wendy Sweet (28:21):


Jonathan Davis (28:22):

I mean, yeah, I’ve got active rehabs that are going on right now and they’re still going. It’s going at a slower pace, but I’m looking at it, you know, at least three months longer to completion that I thought.

Bill Fairman (28:33):

And at the same time, if you’re doing rentals, if you can only get. But let’s assume your tenant’s going to miss three payments this year. Are you still going to be able to have a cash flow? Cause it’s one thing to break even. You’re not really breaking even. Because even if you’re breaking even, you’re going backwards. There’s always expenses. So you still have to have cash flow. So, just make sure that you’re stressing these, to figure for extra vacancy. And if it’s still a deal, it’s still a deal. You don’t, I think, and I forget who it was that made this point yesterday. And David’s meeting, but you’re out in the, I think it was a great use. You’re out in the Midwest. If you’re buying a bunch of rental properties in the Midwest, values aren’t really going to change. They don’t have the ups and downs. So, you’re not out there looking for the lowest prices in the Midwest. You’re just buying them when they’re available. Now, are the prices going to come down a little bit? Yes. But you’re still looking at the cash flow, right? And the other markets, especially the sand States, their values are always up and always down. And you’re, if you’re doing that, if you’re purchasing for rentals in those areas, you’re purchasing in the wrong places. Unless you’re, unless you’re buying apartment complex. Single family for the most part in those sand States, or, it’s tough. You’re only going to buy them when the market’s down. So you can get a decent cash flow and you’re not buying when the market is up because there’s not enough margin.

Jonathan Davis (30:21):

Yeah, exactly.

Bill Fairman (30:22):

So those are the areas to look in when they are down, but not right now. They’re not down yet. Right?

Jonathan Davis (30:30):

You’re right.

Bill Fairman (30:31):

So, I guess that kind of sum it up. We’re being patient. We’re still doing business. But we’re picking and choosing what we’re doing.

Jonathan Davis (30:45):

And I will say, you know, jump in, we are still lending at more favorable terms than probably everyone else that I’ve talked to who is, you know, either regional or national lender. And the reason we’re doing that is we know our market very well. We only work with very experienced borrowers. And we are in complete control of what’s going on. And like you said, we defined what our product is and what our, you know, our niche in the market is. And I feel like we know it well. So, if people are looking for loans or to get to get lending, we are open for business and probably can get you something a little better than other people that you’ve talked to.

Bill Fairman (31:38):

And one of the benefits of being small and regional is it’s easy for us to pivot. And work with what’s available. You get your bigger funds, your national lending companies. Scott said this earlier with, you know, the big cruise ship, it takes awhile to make a turn. And we’re not that way. We’re very nimble. And we take with the market.

Jonathan Davis (32:07):

Yeah, you’re a hundred percent right.

Bill Fairman (32:10):

Wendy, any last words?

Wendy Sweet (32:15):

Believe it or not, I’m all out.

Bill Fairman (32:15):


Wendy Sweet (32:15):

No. I just want to, I think what you said about, yeah, you go to me into it. One of the things that I, I think that you said that it’s true is we’re very, very competitive in our rates and terms right now. And one of those reasons is because everybody else has raised their rates and raise their terms. Then increase their, made their terms more difficult. Which is something we haven’t really done. We’re kind of staying steady with what we’ve done. We’ve gotten a little bit tighter in the loan to value the ARV that we’re doing, the loan to value on that. But for the most part, we’re still riding down the same path. It’s taken a little bit longer to get appraisers out. And to get title work pulled. But we’re still, you know, instead of the two weeks we’re running on three and four weeks right now. But, you know, we’re, we’re still moving. We’re, you know, trying to ramp it up a little bit more. So we’re, I’m excited. I know we’re all ready to get back to work. And get that going. But we’re also extremely concerned with preserving the principle of our investors and just making sure that our deals will be solid even in this unknown market.

Bill Fairman (33:39):

And just to be clear, the turn times for appraisers and inspectors and title work, really doesn’t have as much to do with the current Covid19 thing if you think. Refinance applications are up 192%. So they’re all really busy with other people.

Wendy Sweet (34:03):

That’s right.

Jonathan Davis (34:05):

I saw it right out there like 2.9 something.

Bill Fairman (34:08):

Probably a 15. Because the 30 year fix this morning was 3.31%.

Jonathan Davis (34:14):


Bill Fairman (34:16):

So, yeah. Everyone who can refinance, already got their application in. But besides that, it’d be a great time to get cash out if you could.

Jonathan Davis (34:26):

Yeah. Yeah. He lacks cash out refinances, you know, whatever you can,

Wendy Sweet (34:31):

I’m in line for that.

Jonathan Davis (34:36):

I took your advice Wendy. I went ahead and did that as well.

Wendy Sweet (34:38):

Awesome! Awesome!

Bill Fairman (34:40):

Well I’m just waiting for my government cheese. Alright. So, guys thanks so much for joining the show.

Wendy Sweet (34:49):

Don’t forget to subscribe. Like.

Bill Fairman (34:53):

By the way, we are…

Wendy Sweet (34:54):

Tell all your friends

Bill Fairman (34:55):

Carolina Capital Management.

Wendy Sweet (34:56):


Bill Fairman (34:57):

Our URL, which both people do know. It’s a web address. CarolinaHardMoney.com Please like. Please share. Please follow. Do a little thumbs up thingy.

Wendy Sweet (35:12):

Yeah, tell all your friends.

Jonathan Davis (35:13):

Send us your comments. Your questions.

Wendy Sweet (35:16):

Your money.

Bill Fairman (35:19):

Only send the good comments.

Wendy Sweet (35:21):

That’s right.

Bill Fairman (35:22):

Anyway, thank you so much for joining us. We’ll see you later.

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