The Ideal Investor in The Carolina Hard Money Fund
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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Hi, this is Wendy Sweet and my awesome brother
Bill Fairman. That's him, that's him. So
We are so excited. By the way Welcome to the show.
I"ll always get down to business. Even when I starts to send an email, I
need to remember to say hi or good afternoon or even someone's name would be
good. But I just get right down to it. We're just like me when I say I need
five minutes to talk. Send me an email. Bill is one of those water cooler,
I"ll always get down to business. Even when I starts to send an email, I
need to remember to say hi or good afternoon or even someone's name would be
good. But I just get right down to it. We're just like me when I say I need
five minutes to talk. Send me an email. Bill is one of those water cooler,
cooler guys that you know, you'll stand out there and you
know she the bull for nobody got tampered in. Come on, let's get to work. Ready
to go. That's right, we are. We are really ready to go. So we, you know, spent
the last show. If you were smart enough to tune in, we spent the last show
talking about our ideal borrower and on this show we really wanted to talk
about the ideal lender investor that we like working with, right? Yep. All
right, so, so what's your thought on that bill?
know she the bull for nobody got tampered in. Come on, let's get to work. Ready
to go. That's right, we are. We are really ready to go. So we, you know, spent
the last show. If you were smart enough to tune in, we spent the last show
talking about our ideal borrower and on this show we really wanted to talk
about the ideal lender investor that we like working with, right? Yep. All
right, so, so what's your thought on that bill?
So we have a fund that allows for accredited investors to
invest in this fund and that's where we get the money to make our loans with.
We also have two more funds to come along, right?. Yeah. And yes, yes we do. We
do. And we also have other opportunities for non-accredited investors too. Uh,
invest in fractionalized loans. But that said, our ideal investor in the fund
is going to be an accredited investor. Accredited means that you have a $1
million net worth. Now net worth is your assets minus your liabilities. So the
one of the things you can't use in your net worth calculations is your primary
residence. The benefit of
invest in this fund and that's where we get the money to make our loans with.
We also have two more funds to come along, right?. Yeah. And yes, yes we do. We
do. And we also have other opportunities for non-accredited investors too. Uh,
invest in fractionalized loans. But that said, our ideal investor in the fund
is going to be an accredited investor. Accredited means that you have a $1
million net worth. Now net worth is your assets minus your liabilities. So the
one of the things you can't use in your net worth calculations is your primary
residence. The benefit of
not using your primary residence is, and it's usually your
largest debt. Yeah. The downside of that, the downside of not using your
primary residence, it's usually your largest asset. That's right. So it, it
washes. Now there's also an income side to that. So if you don't qualify on the
net worth side of things, it's 200,000 U S for a single person, you've had to
make it for the last two years and assuming you're going to continue that, and
then for a family, it's a 300,000. Now, just because you make that kind of
money or you have those kind of assets, it doesn't make you our ideal investor
when you're investing in a fund. It is a passive investment opportunity. And
what I mean by that
largest debt. Yeah. The downside of that, the downside of not using your
primary residence, it's usually your largest asset. That's right. So it, it
washes. Now there's also an income side to that. So if you don't qualify on the
net worth side of things, it's 200,000 U S for a single person, you've had to
make it for the last two years and assuming you're going to continue that, and
then for a family, it's a 300,000. Now, just because you make that kind of
money or you have those kind of assets, it doesn't make you our ideal investor
when you're investing in a fund. It is a passive investment opportunity. And
what I mean by that
Quiit ruining our lives!
is that you're really giving all the control over the
investment to the manager, right? You have to trust us that we know what the
heck we're doing, right? And it is truly passive. Now, there's a benefit to
that. I mean, you have a full time job. You don't have time to look at every
single deal. You don't want to look at every single deal. We do all that work
for you. If a deal goes bad, we're the ones that are taking it back and dealing
with the foreclosure. You know, it doesn't happen very often, but those are
things that happen and you know, we're there to take care of all that. All the
services, the loan payments. Yeah. So it's very beneficial that you can get a
decent return, allow for compounding over time and you're still invested in a
solid asset such as real estate, single family residences, multi-tenanted,
commercial properties.
investment to the manager, right? You have to trust us that we know what the
heck we're doing, right? And it is truly passive. Now, there's a benefit to
that. I mean, you have a full time job. You don't have time to look at every
single deal. You don't want to look at every single deal. We do all that work
for you. If a deal goes bad, we're the ones that are taking it back and dealing
with the foreclosure. You know, it doesn't happen very often, but those are
things that happen and you know, we're there to take care of all that. All the
services, the loan payments. Yeah. So it's very beneficial that you can get a
decent return, allow for compounding over time and you're still invested in a
solid asset such as real estate, single family residences, multi-tenanted,
commercial properties.
And you're not the one having to do all the work, but at
the same time. That's right. And at the same time, you have to be willing to
let somebody else do the work for you because there are personality types that
it just like playing the game. And if you're one of those types that, and
listen, we're self-employed. All right? So if you're one of those that it has
to have your fingers in every aspect. It's Investing in a fund is not for you.
Fractionalize loans might be because there are notes that way you have more
control over what it is that you're doing. And you can be a little more
involved. But funding and Investing might not be for you. A lot of the
engineering types have a hard time with that and you know who you are. If
you're, if you're a control freak, it's not for you, but it doesn't mean you
don't have opportunity.
the same time. That's right. And at the same time, you have to be willing to
let somebody else do the work for you because there are personality types that
it just like playing the game. And if you're one of those types that, and
listen, we're self-employed. All right? So if you're one of those that it has
to have your fingers in every aspect. It's Investing in a fund is not for you.
Fractionalize loans might be because there are notes that way you have more
control over what it is that you're doing. And you can be a little more
involved. But funding and Investing might not be for you. A lot of the
engineering types have a hard time with that and you know who you are. If
you're, if you're a control freak, it's not for you, but it doesn't mean you
don't have opportunity.
That's right. It's just not, you're not going to be in
the, in the fund thing. Now our ideal investor really has about three to 5
million in investible capital. And why do I say that is because our minimum
investment is 50,000 while most people put in a hundred we don't want it to be
your last 50 or your last 100 right? We want investors that are and have the
wherewithal that understand that, yeah, there's nothing ever guaranteed and
you're just going to sleep better if it's your last $50,000 you need to be
investing in a mutual fund and the stock market, right? Something extremely
safe. Or a money market at the bank or a savings bond. Okay. But that ideal
client is someone who really has Ben kind of fed up with the stock market and
they're looking for the alternative because frankly, and if you're a real
estate investor, you probably agree with this.
the, in the fund thing. Now our ideal investor really has about three to 5
million in investible capital. And why do I say that is because our minimum
investment is 50,000 while most people put in a hundred we don't want it to be
your last 50 or your last 100 right? We want investors that are and have the
wherewithal that understand that, yeah, there's nothing ever guaranteed and
you're just going to sleep better if it's your last $50,000 you need to be
investing in a mutual fund and the stock market, right? Something extremely
safe. Or a money market at the bank or a savings bond. Okay. But that ideal
client is someone who really has Ben kind of fed up with the stock market and
they're looking for the alternative because frankly, and if you're a real
estate investor, you probably agree with this.
We kind of feel that the stock market is rigged and it's
only the professional traders and the big companies that are making all the
money. By the time the average investor gets into a particular stock, all the
money and the value has been taken out and you're getting the little crumbs at
the top before it starts to come back down again or most of the growth part of
the value is gone. Now there's other investments that are very safe in the
stock marketing, you know, utilities and something that pays a really good
dividend, but you're not going to get any growth out of those. You're basically
just getting an income dividend. Now. It's really important too that If you
have, we're kind of talking tax strategies. Now a fund like ours that is a
mortgage based fund is a great opportunity to invest an IRA, traditional IRA,
solo 401k, Roth IRAs. Because in our type of fund where all the income is
derived from
only the professional traders and the big companies that are making all the
money. By the time the average investor gets into a particular stock, all the
money and the value has been taken out and you're getting the little crumbs at
the top before it starts to come back down again or most of the growth part of
the value is gone. Now there's other investments that are very safe in the
stock marketing, you know, utilities and something that pays a really good
dividend, but you're not going to get any growth out of those. You're basically
just getting an income dividend. Now. It's really important too that If you
have, we're kind of talking tax strategies. Now a fund like ours that is a
mortgage based fund is a great opportunity to invest an IRA, traditional IRA,
solo 401k, Roth IRAs. Because in our type of fund where all the income is
derived from
mortgage payments, interest do, there are no tax benefits.
You're going to pay tax on the money that you earn, whether you're compounding
it over time or whether you're actually getting a check every quarter, you're
still going to owe taxes on it at the end of the year. So if you're doing it in
a tax deferred or tax exempt vehicle, then that's really the best place to do
it. Now, I've always been of the mind you own property with cash, you make
loans with your, your IRA because you can't take advantage of the tax, the
advantages that the government gives you in a property if you haven't been in a
tax deferred account, right? What's the point? That's right. Already tax deferred.
So the best way to leverage all that is to, uh, lend that of your IRA. And our
fund would essentially, it would be linked,
You're going to pay tax on the money that you earn, whether you're compounding
it over time or whether you're actually getting a check every quarter, you're
still going to owe taxes on it at the end of the year. So if you're doing it in
a tax deferred or tax exempt vehicle, then that's really the best place to do
it. Now, I've always been of the mind you own property with cash, you make
loans with your, your IRA because you can't take advantage of the tax, the
advantages that the government gives you in a property if you haven't been in a
tax deferred account, right? What's the point? That's right. Already tax deferred.
So the best way to leverage all that is to, uh, lend that of your IRA. And our
fund would essentially, it would be linked,
but then cash too can go in a fund that owns property and
you can take advantage of those tax situations. Right. Which is why we're
starting another fund as well. Well, we're having some of those options.
you can take advantage of those tax situations. Right. Which is why we're
starting another fund as well. Well, we're having some of those options.
Yeah. And there's not going to be a lot of real estate being
owned in the fund, but there there'll be opportunities in there for them for
different, different kinds of stuff like that. And then at the same time, the
fractionalized notes gives people an opportunity. If you're not an accredited
investor and you also like to have a little bit more control, you can do that.
So,
owned in the fund, but there there'll be opportunities in there for them for
different, different kinds of stuff like that. And then at the same time, the
fractionalized notes gives people an opportunity. If you're not an accredited
investor and you also like to have a little bit more control, you can do that.
So,
Meaning you can pick the property you want to be in, that
kind of thing, right?
kind of thing, right?
Yeah, exactly. So the reason I keep pointing out the
passive piece of it, why do you do that though? Is you know, we talk about our
ideal investor, one who calls us and says thank you for the growth. Really
liked seeing that check getting to my bank account, that was nice. One that is
not calling me and wants to know the detail on every single 75 properties we
have. Now. Again, part of that is trusting your manager. We have a third party
company that does the books. We have a third party company that does the tax
returns and we have an additional third party CPA that does the annual.
passive piece of it, why do you do that though? Is you know, we talk about our
ideal investor, one who calls us and says thank you for the growth. Really
liked seeing that check getting to my bank account, that was nice. One that is
not calling me and wants to know the detail on every single 75 properties we
have. Now. Again, part of that is trusting your manager. We have a third party
company that does the books. We have a third party company that does the tax
returns and we have an additional third party CPA that does the annual.
So we have three sets of eyes looking at the books. But at
the same time we have a tough job doing what we do. And if you're, I'm sorry I
keep harping on this, but if you're the personality type, what has to get
involved? Choose notes. So yeah, we've been rambling on a mat and his ideal
investor here, and I'm sure I can come up with some stories that you guys would
find humorous, not necessarily the, the investors that the stories are about.
Yeah. So on our next show we're going to talk about what to expect or what an
investor can expect in our fund or lending through through notes as well. Don't
forget to like, cause we get paid by the likes. That's right. Subscribe to our
channel. And you can also visit us at CarolinaHardMoney.com you guys have a
great day. We'll see you on the next show.
the same time we have a tough job doing what we do. And if you're, I'm sorry I
keep harping on this, but if you're the personality type, what has to get
involved? Choose notes. So yeah, we've been rambling on a mat and his ideal
investor here, and I'm sure I can come up with some stories that you guys would
find humorous, not necessarily the, the investors that the stories are about.
Yeah. So on our next show we're going to talk about what to expect or what an
investor can expect in our fund or lending through through notes as well. Don't
forget to like, cause we get paid by the likes. That's right. Subscribe to our
channel. And you can also visit us at CarolinaHardMoney.com you guys have a
great day. We'll see you on the next show.
Hi. If you really liked this show, what you can do is you
can check out some of our other shows that might or might not pertain to it.
You can check up there, you can check over here. You can check down here, check
it out. Don't be afraid to like us, right? Do that. Do to subscribe to our page
and hit like, we'd love to have you do that. Thanks.
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Podcast:
http://thealternativeinvestor.libsyn.com/the-ideal-investor-in-the-carolina-hard-money-fund
Visit:
https://redirect.viperseotools.com/r/iframe?key=Pkbn9kpWlAOJ
can check out some of our other shows that might or might not pertain to it.
You can check up there, you can check over here. You can check down here, check
it out. Don't be afraid to like us, right? Do that. Do to subscribe to our page
and hit like, we'd love to have you do that. Thanks.
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Podcast:
http://thealternativeinvestor.libsyn.com/the-ideal-investor-in-the-carolina-hard-money-fund
Visit:
https://redirect.viperseotools.com/r/iframe?key=Pkbn9kpWlAOJ
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