Real Estate, Millennials and Money
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.
Hi, I'm Wendy sweet and I'm Bill Fairman. We are so glad to
have you back with us today. We are going to talk about, gosh, the largest
transfer of money is about to happen, right from, yeah. Yeah. Well that's true.
It could be real estate, right? It's gonna. It's going to go from the baby
boomer generation, which you and I qualify for and it's going about to the
millennial market now and it's really interesting. Some of the opportunities
that are going to be out there or the millennial's, you know, they've talked,
they talk so much about how in debt they all are from college loans, school
loans, you know in our, in our area in Charlotte, we have one of the largest
concentration of millennial's here and their median income is, is huge fpr
people that age and they, they don't always buy houses. They, they like to stay
in apartment complexes still so that they can get up and go. They like the tiny
house thing. They liked the experience of life and an experience. That's what
they really spend their money on is more like experiences where the baby
boomers tended to invest in things, whether it's collectibles or you know, cars
or, or gold and silver or real estate or whatever that might be. So it's
interesting to see what's kind of coming down the pike.
have you back with us today. We are going to talk about, gosh, the largest
transfer of money is about to happen, right from, yeah. Yeah. Well that's true.
It could be real estate, right? It's gonna. It's going to go from the baby
boomer generation, which you and I qualify for and it's going about to the
millennial market now and it's really interesting. Some of the opportunities
that are going to be out there or the millennial's, you know, they've talked,
they talk so much about how in debt they all are from college loans, school
loans, you know in our, in our area in Charlotte, we have one of the largest
concentration of millennial's here and their median income is, is huge fpr
people that age and they, they don't always buy houses. They, they like to stay
in apartment complexes still so that they can get up and go. They like the tiny
house thing. They liked the experience of life and an experience. That's what
they really spend their money on is more like experiences where the baby
boomers tended to invest in things, whether it's collectibles or you know, cars
or, or gold and silver or real estate or whatever that might be. So it's
interesting to see what's kind of coming down the pike.
Well, we have a whole generation of people that are, used
to live in as a minimalist and a lot of them saw their parents, not necessarily
the grandparents or other friends parents that owned homes went through the
crash. They ended up having their homes foreclosed on and they don't have
anything to do with them. True black Swan event. No doubt. Right. The things that
happened in the, in the crash and a lot to do with the speculation, the people
that bought homes that didn't really care that much for the home, but they knew
that if they held onto it for a certain period of time, they could sell it and
make a quick profit. So they were struggling to make those payments cause
there's a little more than they can afford. House rich. Yup. House rich and
cash poor. And it really wasn't, designed to their lifestyle or taste. So they
didn't really have their heart in it. And then when the values went down, it
was really easy for them to walk away.
to live in as a minimalist and a lot of them saw their parents, not necessarily
the grandparents or other friends parents that owned homes went through the
crash. They ended up having their homes foreclosed on and they don't have
anything to do with them. True black Swan event. No doubt. Right. The things that
happened in the, in the crash and a lot to do with the speculation, the people
that bought homes that didn't really care that much for the home, but they knew
that if they held onto it for a certain period of time, they could sell it and
make a quick profit. So they were struggling to make those payments cause
there's a little more than they can afford. House rich. Yup. House rich and
cash poor. And it really wasn't, designed to their lifestyle or taste. So they
didn't really have their heart in it. And then when the values went down, it
was really easy for them to walk away.
One of the things I always teach people in our real estate
groups is that if you have income producing property, the house, and here's my
saying, the house doesn't care how much it's worth because the house isn't
based on it. It's sales price. It's based on how much income it can earn. One
of the things that, and it's a shame because the vast majority of millennial's
are waiting much longer to own homes if they, if they want to own them at all.
But we know many investors who started off as very young people bought a duplex
one side to live in for themselves. Yeah. And then they rented out the other
side for them to have their entire mortgage paid for. Right. So they're living
over here for free or at very discounted amount while the other person took
care of that mortgage for them.
groups is that if you have income producing property, the house, and here's my
saying, the house doesn't care how much it's worth because the house isn't
based on it. It's sales price. It's based on how much income it can earn. One
of the things that, and it's a shame because the vast majority of millennial's
are waiting much longer to own homes if they, if they want to own them at all.
But we know many investors who started off as very young people bought a duplex
one side to live in for themselves. Yeah. And then they rented out the other
side for them to have their entire mortgage paid for. Right. So they're living
over here for free or at very discounted amount while the other person took
care of that mortgage for them.
And then later, and this is, this is what always happens
through life. Your income starts to go up. Perhaps you find a spouse end up
getting married, you need more space, right? You've got equity in that home,
you typically sell that home, you take that equity and then you move it to the
next home and you just keep getting bigger. Well what if instead of taking that
equity, selling that home, taking that equity and moving, you refinance that
house, take that equity and use it on a down payment for a new house and now
you ran out the other side and now you've got income,
through life. Your income starts to go up. Perhaps you find a spouse end up
getting married, you need more space, right? You've got equity in that home,
you typically sell that home, you take that equity and then you move it to the
next home and you just keep getting bigger. Well what if instead of taking that
equity, selling that home, taking that equity and moving, you refinance that
house, take that equity and use it on a down payment for a new house and now
you ran out the other side and now you've got income,
right? Right. You're, you're cash flowing cause you're
making more than that payment.
making more than that payment.
And next house you buy again. You never sell that one, you
just buy the next one. Right. And we know people that have 40 to 16 doors and a
lot of that was started by being very young and just continuing to buy that
next home, but never selling the old home and keeping it as a rental property.
just buy the next one. Right. And we know people that have 40 to 16 doors and a
lot of that was started by being very young and just continuing to buy that
next home, but never selling the old home and keeping it as a rental property.
Right. Well what's going to happen though, when these
millennials are getting that big cash transfer or wealth transfer from their,
their parents. It's kind of like winning the lottery and a friend was telling
us that he was just looking at, well, the story about the last 10 lottery
winners and where are they five years later? Well, they're, they're back on
welfare, food stamps and retakes that they're just not taking care of the money
they get. So what's going to happen when they get this transfer of wealth?
What? What? What are they supposed to do?
millennials are getting that big cash transfer or wealth transfer from their,
their parents. It's kind of like winning the lottery and a friend was telling
us that he was just looking at, well, the story about the last 10 lottery
winners and where are they five years later? Well, they're, they're back on
welfare, food stamps and retakes that they're just not taking care of the money
they get. So what's going to happen when they get this transfer of wealth?
What? What? What are they supposed to do?
Well, the first thing that I would do is get a posse.
Get 4 or 5 people and just walk around and saying, yes,
yeah, that sounds good. And you have to pay stuff for
them. That's right.
them. That's right.
What would be your other option? First and foremost, it
depends on the type of wealth that's being transferred. If it's a, if it's a
solid asset, if it's stocks, bonds, just make sure you find a good money
manager that you currently have it. Maybe it's the person that's currently
holding the account or managing it. You can talk to them about different, different
options. Find someone else who is wealthy and taking good care of it. It's
funny, I noticed the difference when younger people go to a wealth manager and
they go to these offices where there's mahogany on the walls and marble on the
floor, all these expenses, they're like, I'm paying these fees so you can make
your office opulent. Do you really need this? And it turns a lot of people on.
But you don't want to go to somebody who's operating out of a trailer either,
right?
depends on the type of wealth that's being transferred. If it's a, if it's a
solid asset, if it's stocks, bonds, just make sure you find a good money
manager that you currently have it. Maybe it's the person that's currently
holding the account or managing it. You can talk to them about different, different
options. Find someone else who is wealthy and taking good care of it. It's
funny, I noticed the difference when younger people go to a wealth manager and
they go to these offices where there's mahogany on the walls and marble on the
floor, all these expenses, they're like, I'm paying these fees so you can make
your office opulent. Do you really need this? And it turns a lot of people on.
But you don't want to go to somebody who's operating out of a trailer either,
right?
There are funds that you can get into that are real estate
related, that you know the, the fees are pretty low. It's stuff you understand.
If you had a mortgage yourself or know someone who has, right? You have to
understand that real estate is always going to go up. It's not always going to
go up in a straight line. Okay? People need two things in any economy, right?
They need a roof over their head and they need food. That's right. So if you're
going to invest, in my opinion, and this is something that Warren buffet talks
about it, you invest in something that you know and you use. So most of what
Warren Buffett invested in or housing cause he owns. Yeah, it's mobile homes.
He got that Berkshire Hathaway real estate. He's got another real estate
company. I can't remember the name of it, but it's a high dollar one.
related, that you know the, the fees are pretty low. It's stuff you understand.
If you had a mortgage yourself or know someone who has, right? You have to
understand that real estate is always going to go up. It's not always going to
go up in a straight line. Okay? People need two things in any economy, right?
They need a roof over their head and they need food. That's right. So if you're
going to invest, in my opinion, and this is something that Warren buffet talks
about it, you invest in something that you know and you use. So most of what
Warren Buffett invested in or housing cause he owns. Yeah, it's mobile homes.
He got that Berkshire Hathaway real estate. He's got another real estate
company. I can't remember the name of it, but it's a high dollar one.
Uh, he owned the mobile homes. Yeah. And he also finances
those mobile homes. So he's in food because he is invested enough. Oh, you're
big name brands, right? Proctor & gamble, all of those. And housing. Notes.
He does notes and yeah. So he's been very successful and he's done it over
time. It's not, you know, a get rich quick thing. And that's what you need to
think about when you're investing this money and don't go out and start buying
a bunch of crap. Right. You don't need. You want to take it. It's okay to, that
charger. It's okay to reward yourself. Yeah. Okay. But you need to take, you
can take the majority of that money and continue to keep it invested because,
okay. Uh, over time number one, you're going to need it. Now most, most
financial advisors teach you that there's a particular number you need to
retire and your job is not to die before you run out of money.
those mobile homes. So he's in food because he is invested enough. Oh, you're
big name brands, right? Proctor & gamble, all of those. And housing. Notes.
He does notes and yeah. So he's been very successful and he's done it over
time. It's not, you know, a get rich quick thing. And that's what you need to
think about when you're investing this money and don't go out and start buying
a bunch of crap. Right. You don't need. You want to take it. It's okay to, that
charger. It's okay to reward yourself. Yeah. Okay. But you need to take, you
can take the majority of that money and continue to keep it invested because,
okay. Uh, over time number one, you're going to need it. Now most, most
financial advisors teach you that there's a particular number you need to
retire and your job is not to die before you run out of money.
Once you retire, right, you're going to get to a certain
certain income level that you can live off of the money that that number has
and your job is not to die before it finishes. But well as you know, we're all
living longer. So how long is enough? My suggestion is to find something that
pays you an income and never touches the balance and allows that income to
continue to go up. And I don't know anything other than real estate that you
can do that on a consistent passive income, notes, seller financing, all of
that. So as a young person, and especially if you're not an acredited investor,
that means $1 million in net worth or greater not getting your primary
residence is a, there are smaller funds that are called A regulation funds. We
call them Reg A+. So they're Regulation A+. They are not quite as stringent as
publicly created stock, but they have almost as many regulations involved.
certain income level that you can live off of the money that that number has
and your job is not to die before it finishes. But well as you know, we're all
living longer. So how long is enough? My suggestion is to find something that
pays you an income and never touches the balance and allows that income to
continue to go up. And I don't know anything other than real estate that you
can do that on a consistent passive income, notes, seller financing, all of
that. So as a young person, and especially if you're not an acredited investor,
that means $1 million in net worth or greater not getting your primary
residence is a, there are smaller funds that are called A regulation funds. We
call them Reg A+. So they're Regulation A+. They are not quite as stringent as
publicly created stock, but they have almost as many regulations involved.
But you can invest small amounts of money. I have 10,000
and still be in the same real estate space that we're in. There's plenty of
companies out there that will, that have an example through crowd funding where
they're making a loan on a piece of property, they open up that loan to other
investors to put money in. Then you can invest as little as you know, five
$10,000 at a time, so there's, there's plenty out there. I'd like to give a
shout out to BiggerPockets. They're an online forum. It's education only and
there's plenty of people there that can help you figure out, places to put
money and strategies again no one's selling anything on there. It's strictly
education. Yeah, good information. Yet a good mentor as well. One of the posse
has to know what they're doing and like I said, it's okay to splurge it out
again, I know you, I know you guys like to do experiences, but you don't have
to experience Bali. You can experience the Bali hotel if you need to. That's
right. It took, it took the people that pants down that well, a lifetime to
make it, you're not going unless it's listen, unless it's millions and millions
of dollars, treat it the same way. You're parents, the person that pass it down
to you.
and still be in the same real estate space that we're in. There's plenty of
companies out there that will, that have an example through crowd funding where
they're making a loan on a piece of property, they open up that loan to other
investors to put money in. Then you can invest as little as you know, five
$10,000 at a time, so there's, there's plenty out there. I'd like to give a
shout out to BiggerPockets. They're an online forum. It's education only and
there's plenty of people there that can help you figure out, places to put
money and strategies again no one's selling anything on there. It's strictly
education. Yeah, good information. Yet a good mentor as well. One of the posse
has to know what they're doing and like I said, it's okay to splurge it out
again, I know you, I know you guys like to do experiences, but you don't have
to experience Bali. You can experience the Bali hotel if you need to. That's
right. It took, it took the people that pants down that well, a lifetime to
make it, you're not going unless it's listen, unless it's millions and millions
of dollars, treat it the same way. You're parents, the person that pass it down
to you.
There's an unknown, well, not, not unknown. It's a lesser
known statistic that by the fourth generation, most of your wealthiest families
in the country are completely broke. That's right. That's right. Well, only one
of the Rockefellers still has, wealth in the family, did you know that? No.
Yeah. So learn that tidbit yesterday. Oh, good for you. I'm just picking them
up everywhere. But there's plenty of strategies to continue to build wealth
over time through, through families and keep the wealth and continue to grow
well. We'll get into one later. We'll have a, a friend of ours that's in the
whole life cash value policy. We'll have him on the show Chris miles, right?
Yup. Yeah. And he'll, he'll talk about how the family offices, the Rockefellers
continued to build that well over time by utilizing the whole life, uh, in cash
value insurance policy to continue that.
known statistic that by the fourth generation, most of your wealthiest families
in the country are completely broke. That's right. That's right. Well, only one
of the Rockefellers still has, wealth in the family, did you know that? No.
Yeah. So learn that tidbit yesterday. Oh, good for you. I'm just picking them
up everywhere. But there's plenty of strategies to continue to build wealth
over time through, through families and keep the wealth and continue to grow
well. We'll get into one later. We'll have a, a friend of ours that's in the
whole life cash value policy. We'll have him on the show Chris miles, right?
Yup. Yeah. And he'll, he'll talk about how the family offices, the Rockefellers
continued to build that well over time by utilizing the whole life, uh, in cash
value insurance policy to continue that.
Yeah. Now don't get me wrong, there are plenty of people
that are, I've had wealth passed down to them over time. It had been very
productive and help grow it. But typically you always have a nerdy wealth there
too. That'll end up just, you know, sucking off part of that one off. Never to
be seen again. I'll open up a CBD oil branch. That's right. But anyway, I hope
that was helpful. Keep your eye on it anyway. Don't flout the wealth. Uh,
utilize it to invest in. Get a good mentor. That lottery house. I won a lottery
and now I'm going to find my million dollars.
that are, I've had wealth passed down to them over time. It had been very
productive and help grow it. But typically you always have a nerdy wealth there
too. That'll end up just, you know, sucking off part of that one off. Never to
be seen again. I'll open up a CBD oil branch. That's right. But anyway, I hope
that was helpful. Keep your eye on it anyway. Don't flout the wealth. Uh,
utilize it to invest in. Get a good mentor. That lottery house. I won a lottery
and now I'm going to find my million dollars.
Watch it. I see the commercials for it. Well, under what
you're talking about. So that shows I'm saying it to you. All right. So anyway,
enjoyed having you here. Thank you so much. Don't forget to subscribe like, and
[inaudible] information about us on our website, CarolinaHardMoney.com investor
tab for those who want to invest and apply now for those who would like to
apply now, that's right. All right. So, uh, anyway, uh, look forward to seeing
you. Yeah, you might want to, if in case we have some other shows, you can
click them on here too. They might be around our perimeter. We're not sure. Uh,
check it out. Like little drones dropping tidbits of information. Great. So
thank you so much for joining us.
you're talking about. So that shows I'm saying it to you. All right. So anyway,
enjoyed having you here. Thank you so much. Don't forget to subscribe like, and
[inaudible] information about us on our website, CarolinaHardMoney.com investor
tab for those who want to invest and apply now for those who would like to
apply now, that's right. All right. So, uh, anyway, uh, look forward to seeing
you. Yeah, you might want to, if in case we have some other shows, you can
click them on here too. They might be around our perimeter. We're not sure. Uh,
check it out. Like little drones dropping tidbits of information. Great. So
thank you so much for joining us.
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