Friday, January 31, 2020
Thursday, January 23, 2020
The Ideal Investor in The Carolina Hard Money Fund
Wendy Sweet and Bill Fairman discuss their ideal investor. Who is the perfect lender for their funds?
"Accredited investors" means they have a 1,000,000 net worth, not including your primary residence or they make $200K a year.
Just because you earn that amount, it does not mean you are ideal for this fund.
The other side of the equation is you have to let go of control. It is passive income. That means the investor just wants to get a good return, compounding over time, without the headaches of all the work that goes into it.
Some personality types do not fit into the program (Control Freak).
The ideal fund investor has $3 million. The minimum investment is $50K. Bill and Wendy do not want you to be putting your last $100K into their Hard Money fund.
Their mortgage-based fund is a great opportunity for Roth, IRA's and other tax deferring vehicles.
"Lend out of your IRA. Defer the Tax." ~ Wendy Sweet
Tax Strategies IRA Secrets
Most tax benefits come from owning properties. Few tax benefits come from lending money.
When you buy property use your money. When you want to lend money, use a Roth IRa or IRA.
There are also huge generational benefits, including probates.
Your beneficiary can pull money from the IRA as long as it is 5 years old with no taxation.
You are not supposed to operate a business in an IRA. You can earn interest in your IRA.
Only 5% of the populations have even heard of self-directed IRA's. You can invest in anything, except Art and Collectibles.
Real Estate gives you collateral.
Real Estate Q and A with Wendy Sweet
Questions
1) Is owning real estate worth the headache?
Never buy a deal for a breakeven position. Cashflow on a long term basis.
2) Do you have to manage your property?
3) How important are Documents/Agreements?
4) What are some Rookie mistakes?
Paying too much
5) What is the saddest/Weirdest thing ever seen in a vacant house?
A foreclosed home will have real estate investing books in it, but they were never opened.
6) What are the No-No's of REI?
Never force a deal. Good deals come along every day.
Make all deals a Win/Win
"Everyone deserves to get paid" ~ Wendy Sweet
7) What would make you walk away from a deal?
Dishonesty. Cutting out a wholesaler. Greedy people. Fraud.
8) Is rental property the best way to build wealth?
Mortgage is 70% of Cashflow
Interest is still deductible.
The home should appreciate over time.
9) Why does Wendy give away her time on Wednesdays for free?
Being of service.
10) Zillow leads and estimates
11) Would you buy property near a prison?
Wendy's answer will surprise you
She would avoid places with bad smells like hog farms. Landfills are bad to be near. Powerlines are a concern, as well as railroad tracks, high crime areas, and cemeteries. Busy streets are lower priced.
12) Are properties in extremely rural areas worth investing in?
13) Is REI as easy as people make it out to be?
After 20 years in business, Wendy always meets people who want to get into it. Anyone can be successful. It requires hard work.
14) Should you join a REI group?
Groups are terrific for learning and for networking and finding deals.
15) What are some of the coolest RE Tricks you know?
There are no tricks. Your goal should be to ask yourself, "What is the best way to make a win/win?"
16) What can be expensive at a rental property? The most expensive places are the attic and crawl spaces. Often they are where the bog problems are.
17) What are problems only a Realtor can see? Being a Realtor can be a problem when you want to buy a house.
18) What is the shadiest thing a house seller has done?
Accepting multiple contracts on a house.
19) What will happen to real estate prices?
If you are in a bubble market, you will see a bigger drop.
20) What makes a good investor?
Someone who educates themselves. Make decisions based on logic, not emotion. Have the best interest of the other party in mind.
Real Estate Q and A with Wendy Sweet
There is a huge transfer of wealth from the Baby Boomer to Millennials. How can they best look after their new-found wealth?
The 2008 crash had a lot to do with speculation. House rich and cash poor. When the value of the houses dropped, it was very easy for them to walk away.
When you have an income-producing house, the house doesn't care what it is worth. Because it is always making money.
Bill shares a powerful strategy for home buying.
They discuss real estate related funds that non-accredited investors can invest in.
When you get an inheritance, don't go out and blow through it. Your job is to die before you run out of money.
The ideal situation is to buy something that always pays an income without cutting into the equity.
Sunday, January 19, 2020
Chris Prefontaine and Using Terms with Smart Real Estate
Chris Prefontaine and Using Terms with Smart Real Estate
Friday, January 17, 2020
Leveraging Your investments - Pros and Cons
Leveraging Your investments - Pros and Cons
Leverage: in a fund structure, loans last longer than 6 months. If you have $10 million to invest, a credit company may give you a credit line of $10 million. However, the credit company is in first position should something go wrong.
Leverage is a business term that refers to how a business acquires new assets for startup or expansion. When a business is "leveraged," it means that the business has borrowed money to finance the purchase of assets. Businesses can also use leverage through equity, by raising money from investors.
Bill talks about a leverage situation that occurred in 2008. And the collapse that happened as a result.
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/
Subscribe: http://thealternativeinvestor.libsyn.com/rss
Visit our website: https://carolinahardmoney.com
YouTube Channel: https://www.youtube.com/channel/UCYzCFOvEt2n9TchgECLwpww/
Facebook: https://www.facebook.com/CarolinaHardMoney/
Leveraging Your investments - Pros and Cons
https://youtu.be/zP8fnPSFgRg
How to Add Money to a Hard Money Fund
How to Add Money to a Hard Money Fund
When someone gets into a Hard Money, they often wonder how the system works.
Lenders have a separate subscription account. They deposit money there. It is like a holding account.
If someone put money in the fund and it isn't working, it dilutes the yield for everyone. Bill and Wendy use the money and pay 8% when they use it. Then on the quarter, that money goes into the regular fund.
When you join a Fund, you become a member in an LLC.
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/
Subscribe: http://thealternativeinvestor.libsyn.com/rss
Visit our website: https://carolinahardmoney.com
YouTube Channel: https://www.youtube.com/channel/UCYzCFOvEt2n9TchgECLwpww/
Facebook: https://www.facebook.com/CarolinaHardMoney/
How to Add Money to a Hard Money Fund
https://youtu.be/iEoEs34Lleg
Tax Strategies IRA Secrets
Tax Strategies IRA Secrets
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/
Subscribe: http://thealternativeinvestor.libsyn.com/rss
Visit our website: https://carolinahardmoney.com
YouTube Channel: https://www.youtube.com/channel/UCYzCFOvEt2n9TchgECLwpww/
Facebook: https://www.facebook.com/CarolinaHardMoney/
Tax Strategies IRA Secrets
https://youtu.be/ZCtXmUzj2Po
Friday, January 10, 2020
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