Carolina Capital targets single-family houses, with an average value of $150,000. As a lender, it is more work, but it is safer when spread out over more properties.
In any economy, you have to have food and shelter.
The day of this recording, the DJIA was at 22,000 and had dropped a lot. (21,498.44 −2,054.78 -8.72% down)
Where will Institutional capital go?
Treasury yields are 0.6% for ten years. Bill suggests the money for Treasury bills is coming from European and Chinese investors. These investors are looking for safety.
Short term, it will take a lot longer to refinance mortgages.
People may keep their homes longer as they can't get better rates.
The luxury market will flatten or dip.
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 everyone. It's the Bill and Wendy show with Jonathan
Davis and Bill Fairman. Wendy's not going to be able to make it with us today.
She's off with more stuff on her plate. We talk about that a lot. Wendy has a
lot of talents, so I want to start off with if you're an accredited investor
and you were thinking about getting into the alternative investing space, you
can go to our website, CarolinaHardMoney.com go to the investor tab, click it
on and then there's a form there that you can fill out to basically prove that
you're an accredited investor and then you can schedule a time to talk with us
about specifically the recent fall in the stock market and that's what our talk
is going to be about today is what's going on and how that's going to affect
our business specifically. Now I want to start off.
Davis and Bill Fairman. Wendy's not going to be able to make it with us today.
She's off with more stuff on her plate. We talk about that a lot. Wendy has a
lot of talents, so I want to start off with if you're an accredited investor
and you were thinking about getting into the alternative investing space, you
can go to our website, CarolinaHardMoney.com go to the investor tab, click it
on and then there's a form there that you can fill out to basically prove that
you're an accredited investor and then you can schedule a time to talk with us
about specifically the recent fall in the stock market and that's what our talk
is going to be about today is what's going on and how that's going to affect
our business specifically. Now I want to start off.
By saying last year we had changed our business model
specifically for worst case scenario. We want it to be as vanilla as we could
be, right?
specifically for worst case scenario. We want it to be as vanilla as we could
be, right?
Aren't you glad we're not holding onto a lot of
developments right now?
developments right now?
Yeah, absolutely. So for those who aren't in our fund, we
are specifically targeting affordable housing. That's in multifamily as well as
single family. We wanted to get our loan amounts down to $150,000 a piece.
Essentially our average loan size that's on the single family side of things.
Yeah, and we accomplished that in 2019 our average was 158 yes. Now as a lender
it's more work, but you know as a lender I'd rather have five $100,000 loans
than one $500,000.
are specifically targeting affordable housing. That's in multifamily as well as
single family. We wanted to get our loan amounts down to $150,000 a piece.
Essentially our average loan size that's on the single family side of things.
Yeah, and we accomplished that in 2019 our average was 158 yes. Now as a lender
it's more work, but you know as a lender I'd rather have five $100,000 loans
than one $500,000.
Yeah, I mean, just as much as you want. No variants in
what you do in as far as a certain asset class, you also wanted a geography.
You want diversification everywhere. Sure. Across the board and it's hard to
have diversification if you're doing four loans a year.
what you do in as far as a certain asset class, you also wanted a geography.
You want diversification everywhere. Sure. Across the board and it's hard to
have diversification if you're doing four loans a year.
Yeah. It's, again, it's, it's a lot less work to do the bigger
loan amount, but at the same time your percentage of each loan is too high. And
if you have one of the $100,000 loans go South, you still have four making up
for it. Yeah. Doesn't mean you're losing money with the one that's going under,
but you're certainly not getting an income on it until you figure out the
disposition. Yeah. With the $500,000 loan, all that 500 is kind of stagnant
until we figure out the disposition and get that money working again. Right?
loan amount, but at the same time your percentage of each loan is too high. And
if you have one of the $100,000 loans go South, you still have four making up
for it. Yeah. Doesn't mean you're losing money with the one that's going under,
but you're certainly not getting an income on it until you figure out the
disposition. Yeah. With the $500,000 loan, all that 500 is kind of stagnant
until we figure out the disposition and get that money working again. Right?
Yeah. Yeah. In this scenario of diversification, you just
make less money. In the scenario of not diversification, you lose money, you
lose opportunity, right. There's a lot more potential loss,
make less money. In the scenario of not diversification, you lose money, you
lose opportunity, right. There's a lot more potential loss,
And I keep saying this all the time and just keep beating
that dead horse. In any economy, you have to have two things. Food and shelter
and fordable housing is, is the way to go.
that dead horse. In any economy, you have to have two things. Food and shelter
and fordable housing is, is the way to go.
I would have to argue. There's three things. Alcohol,
those sells never go down.
those sells never go down.
Well, this is true and don't use it as a disinfectant.
Remember, you need 60% alcohol content according to the CDC and what was it?
Tito's vodka only has 40% yeah. Drink it. And it was really funny how they
injected themselves in the Coronas situation by tweeting out that don't use our
vodka to clean your hands. It's not going to work. Drink it instead. So that
said, how do you think what's going on now is going to impact us?
Remember, you need 60% alcohol content according to the CDC and what was it?
Tito's vodka only has 40% yeah. Drink it. And it was really funny how they
injected themselves in the Coronas situation by tweeting out that don't use our
vodka to clean your hands. It's not going to work. Drink it instead. So that
said, how do you think what's going on now is going to impact us?
I mean I think there's several ways that it can impact us
and it directly and indirectly. I mean you, you already see and I guess to
clarify what we're talking about, what's going on.
and it directly and indirectly. I mean you, you already see and I guess to
clarify what we're talking about, what's going on.
Yeah. Coronavirus and the stock market is dropping like a
rock this morning. And of course we're trying to do, we're not going to be
doing this real time cause we're not live streaming this. But this morning on
the way in the Dow was at like 22 and there was already a 1200point futures
drop from the twenties yeah. So we'll, we'll see. Yeah. Yeah. But I mean when
you're taught, that money has to go somewhere, right? People are selling, what
are they doing it?
rock this morning. And of course we're trying to do, we're not going to be
doing this real time cause we're not live streaming this. But this morning on
the way in the Dow was at like 22 and there was already a 1200point futures
drop from the twenties yeah. So we'll, we'll see. Yeah. Yeah. But I mean when
you're taught, that money has to go somewhere, right? People are selling, what
are they doing it?
Yeah, they're selling. I mean take your, your losses, but
now you've got to do something. So you hear a lot of chatter about people
wanting to move that money into alternative assets, alternative investing.
Sure. Which is, which is a great thing from our perspective. What makes it
appealing I think is, it's going to infuse current fund models and it's going
to spark new fund creations. Sure. Like that's, I mean the fund model I think
is going to explode. I mean it's already been exploding for the last few years,
but it's going to continue to explode. We're going to have a lot more private
money into space, which then ask the question, if you're pushing more of that
in what's being pushed out and given the short term risks that are associated
with what's going on right now, I wonder what's going to happen with institutional
capital. Are they going to back off their bullish approach to the short term
investing? Sure. Or what's going to happen there?
now you've got to do something. So you hear a lot of chatter about people
wanting to move that money into alternative assets, alternative investing.
Sure. Which is, which is a great thing from our perspective. What makes it
appealing I think is, it's going to infuse current fund models and it's going
to spark new fund creations. Sure. Like that's, I mean the fund model I think
is going to explode. I mean it's already been exploding for the last few years,
but it's going to continue to explode. We're going to have a lot more private
money into space, which then ask the question, if you're pushing more of that
in what's being pushed out and given the short term risks that are associated
with what's going on right now, I wonder what's going to happen with institutional
capital. Are they going to back off their bullish approach to the short term
investing? Sure. Or what's going to happen there?
It's hard to say. I think they're going to generally pull
back from the little more risky. Whywe call it risky? Is because we're talking
about, long term projects,
back from the little more risky. Whywe call it risky? Is because we're talking
about, long term projects,
right? Yeah. Stuff where the markets can change and you
can't do anything about them or assets that it requires. Speculation like land.
Yeah. Yeah.
can't do anything about them or assets that it requires. Speculation like land.
Yeah. Yeah.
Horizontal buildups that there's a long period from the
time you start the project that you finished the project and all kinds of
things can can change in their long term. You don't want to really be locked
into any kind of long term contracts, right. Unless on the receiving end of
higher returns. So
time you start the project that you finished the project and all kinds of
things can can change in their long term. You don't want to really be locked
into any kind of long term contracts, right. Unless on the receiving end of
higher returns. So
it's just, it's risk adjusted returns. You have to make
sure that it's all risk adjusted.
sure that it's all risk adjusted.
Well the, here's what's happening in the treasury bond
market too. You have people that are going into cash, so they're, they're
selling their stocks. If they go into treasuries, I mean the yield this morning
was 0.6 some odd percent, 10 year, 10 year treasury. So there's, you're locking
your money up for 10 years to make less than a percent.
market too. You have people that are going into cash, so they're, they're
selling their stocks. If they go into treasuries, I mean the yield this morning
was 0.6 some odd percent, 10 year, 10 year treasury. So there's, you're locking
your money up for 10 years to make less than a percent.
Which given short term issues that are happening right
now, you will have people who what seek that longterm safety.
now, you will have people who what seek that longterm safety.
But that's, that's 10 years, 10 years. Yes. Now I imagine
that it's fewer, to me I think it's fewer US people are putting money in the
treasury and I think it's more European money going into treasuries because
their central banks are negative interest rates. So, why would you put your
money into something that you're basically paying them to store it? Yeah. Or
you can put it in US treasuries and at least make something. Yeah. And you know
we are the flight to safety from all over the world and so I think a lot of
that is being pushed by foreign investment coming in because they can't, there
is no safety where they are. Yeah. That said interest rates are going down
because that's, that's the way it works. When the yields go down, you know, the
interest rates kind of follow suit. The 30 year mortgage rate is keyed off of
the 10 year treasury. So we're having a huge refi boom going on right now in
the short term for our business. Yeah. Our appraisals are going to take longer.
that it's fewer, to me I think it's fewer US people are putting money in the
treasury and I think it's more European money going into treasuries because
their central banks are negative interest rates. So, why would you put your
money into something that you're basically paying them to store it? Yeah. Or
you can put it in US treasuries and at least make something. Yeah. And you know
we are the flight to safety from all over the world and so I think a lot of
that is being pushed by foreign investment coming in because they can't, there
is no safety where they are. Yeah. That said interest rates are going down
because that's, that's the way it works. When the yields go down, you know, the
interest rates kind of follow suit. The 30 year mortgage rate is keyed off of
the 10 year treasury. So we're having a huge refi boom going on right now in
the short term for our business. Yeah. Our appraisals are going to take longer.
I mean third party vendors are sure you're going to
appraisals, insurance quotes. I mean all those things that are earned in flux
with your third party vendors are going to take a lot longer.
appraisals, insurance quotes. I mean all those things that are earned in flux
with your third party vendors are going to take a lot longer.
Absolutely. The one thing I want to caution all you
mortgage people out there, your realtors are your bread and butter. Just
because you have this refi boom. Don't forget about your realtor because your
realtors are your longterm projects. The refis or short term, they're always
going to be up and down and if you refi too many people at 3% I doubt the rates
are gonna be lower anytime. Here's another thing that might happen too, my
people may keep their homes longer because they can't get a better rate. Oh
yeah, for sure. And it's a psychological thing too. You know, home, home prices
will adjust as rates go down, home prices will actually start to rise a little
bit. Because now it's more affordable. Yeah. That said, from our perspective in
our business, I'm not really concerned with people not buying them or people
renting homes. Cause we're in both sides of it. We, we make loans for people
that are fixing up properties either to sell or to rent out and they're all in
the affordable housing market. Right? Correct. So if you're in an industry that
is slowing down, you know, travel industry or shipping, because let's face it,
you've had these shutdowns in China and inventory is low, so less stuff is
available. So they're going to be certain industries that they're going to have
layoffs in it and they're not buying, they're going to be refinancing before
they get their pink slip. But we still have inventory shortages. We have way
more households than we have, houses. So I still think supply and demand are
going to be in pretty even shape. Actually. You know, supply is going to be
less than demand. So I don't, I don't see that shaking. I do see that the
luxury market is going to start flattening out for sure. I mean it already has
in some markets,
mortgage people out there, your realtors are your bread and butter. Just
because you have this refi boom. Don't forget about your realtor because your
realtors are your longterm projects. The refis or short term, they're always
going to be up and down and if you refi too many people at 3% I doubt the rates
are gonna be lower anytime. Here's another thing that might happen too, my
people may keep their homes longer because they can't get a better rate. Oh
yeah, for sure. And it's a psychological thing too. You know, home, home prices
will adjust as rates go down, home prices will actually start to rise a little
bit. Because now it's more affordable. Yeah. That said, from our perspective in
our business, I'm not really concerned with people not buying them or people
renting homes. Cause we're in both sides of it. We, we make loans for people
that are fixing up properties either to sell or to rent out and they're all in
the affordable housing market. Right? Correct. So if you're in an industry that
is slowing down, you know, travel industry or shipping, because let's face it,
you've had these shutdowns in China and inventory is low, so less stuff is
available. So they're going to be certain industries that they're going to have
layoffs in it and they're not buying, they're going to be refinancing before
they get their pink slip. But we still have inventory shortages. We have way
more households than we have, houses. So I still think supply and demand are
going to be in pretty even shape. Actually. You know, supply is going to be
less than demand. So I don't, I don't see that shaking. I do see that the
luxury market is going to start flattening out for sure. I mean it already has
in some markets,
I experienced it in Charlotte a little bit as well. So
yeah, we get, you know, all the, I mean we use the negative, but all the things
that are happening that are maybe less positive than we'd like them to be.
Where are the opportunities right now? For not only just for funds like ours,
but also for individual investors. Where are those? Where do those
opportunities lie in a climate like this?
yeah, we get, you know, all the, I mean we use the negative, but all the things
that are happening that are maybe less positive than we'd like them to be.
Where are the opportunities right now? For not only just for funds like ours,
but also for individual investors. Where are those? Where do those
opportunities lie in a climate like this?
Well, they certainly aren't in the stock market, right? As
that being said, the conventional wisdom says that, you know, we've lost 20%
from the most recent highs in the stock market. So stocks are at a bargain,
right? When everyone else is selling. The problem is when you, when you reach a
certain age or you have a certain part of your retirement portfolio, you want
to put it towards, you know, the least risk possible. And when you get to a certain
age, you want to start cutting back from the volatility of the stock market and
go into something that's not going to have that kind of volatility. That's why
a lot of people will buy a rental homes, the turnkey rental homes, they'll get
into funds that own property or they'll get into funds like ours that make
loans that are really debt funds. Yeah. Because there's less volatility in
those areas and you can still grow in them. Yeah. Most of them will continue to
allow growth and then be able to switch, turn that switch and start getting
income from when you're ready to receive income from. If you're in the heavy in
the stock market, you're, you know, five years from retirement and you've just
lost 20% of your portfolio and now you're thinking, well it might be seven to
10 years before I retire now cause I was almost there and now I've lost this
and now I've got to make it back up again. Really bolsters well for the stock
market. Retirement plan. And I'm not saying real estate is for everyone, but it
is, in my opinion, it's, it's much more, I call it [inaudible]. It's much more
conservative. Most people don't feel that way because they don't, most people
speculate in the real estate business, in the real estate space, they don't,
they don't look for cash flow. They're looking for appreciation. Okay. Yeah.
And they're looking for appreciation. And in funds they're looking for
appreciation and properties.
that being said, the conventional wisdom says that, you know, we've lost 20%
from the most recent highs in the stock market. So stocks are at a bargain,
right? When everyone else is selling. The problem is when you, when you reach a
certain age or you have a certain part of your retirement portfolio, you want
to put it towards, you know, the least risk possible. And when you get to a certain
age, you want to start cutting back from the volatility of the stock market and
go into something that's not going to have that kind of volatility. That's why
a lot of people will buy a rental homes, the turnkey rental homes, they'll get
into funds that own property or they'll get into funds like ours that make
loans that are really debt funds. Yeah. Because there's less volatility in
those areas and you can still grow in them. Yeah. Most of them will continue to
allow growth and then be able to switch, turn that switch and start getting
income from when you're ready to receive income from. If you're in the heavy in
the stock market, you're, you know, five years from retirement and you've just
lost 20% of your portfolio and now you're thinking, well it might be seven to
10 years before I retire now cause I was almost there and now I've lost this
and now I've got to make it back up again. Really bolsters well for the stock
market. Retirement plan. And I'm not saying real estate is for everyone, but it
is, in my opinion, it's, it's much more, I call it [inaudible]. It's much more
conservative. Most people don't feel that way because they don't, most people
speculate in the real estate business, in the real estate space, they don't,
they don't look for cash flow. They're looking for appreciation. Okay. Yeah.
And they're looking for appreciation. And in funds they're looking for
appreciation and properties.
Most real estate investments, are cash flow. It's not
about appreciation. If you get appreciation icing on the cake. Now those are
for funds, that own property. And that said, you can force appreciation on a
property. Once you've got stabilized and you forced your appreciation, it's not
going anywhere else. Not very quickly. Yeah. It's all going to be about the
cash flow. And that's what you want. If you're not chasing high yields, you
just want to, you want your money to make money. Yeah. Right. Yeah, exactly.
And in the real estate space, your money is back by actual solid assets. The
stock market is based on the ability for a business to make a profit.
about appreciation. If you get appreciation icing on the cake. Now those are
for funds, that own property. And that said, you can force appreciation on a
property. Once you've got stabilized and you forced your appreciation, it's not
going anywhere else. Not very quickly. Yeah. It's all going to be about the
cash flow. And that's what you want. If you're not chasing high yields, you
just want to, you want your money to make money. Yeah. Right. Yeah, exactly.
And in the real estate space, your money is back by actual solid assets. The
stock market is based on the ability for a business to make a profit.
Which we know most of them aren't. Yeah. Or not most. That's
it. Well, that's not correct. 30% to 40% they are not.
it. Well, that's not correct. 30% to 40% they are not.
The solid stocks are the ones that are, we call them large
cap. So these are the, they have large capitalizations and I don't have it
broken down right in front of me, but the large cap stocks are the ones going
to have the least appreciation, or growth in their value. And a lot of them are
take a lot to get into because their prices are pretty high. Yeah. But there
are always also going to be the least affected in a downturn. Yeah. And at the
same you're not getting much of a return on the equity side. Now if you're
going to get into a large cap stock, get one that pays dividends. Okay. So
you're going to get some appreciation, not much, but at least you can get some
income on and they have plenty of money. They can weather most stores. Sure.
Again, you're just not going to get much improvement in the, in the price.
Yeah. Over the long haul. Your small cap stocks are going to be the ones that
are the most volatile, they have the most upside, but most of them aren't.
Making a profit. Yet a lot of the companies that came on this year with their
IBOs, they're losing money. They're just doing it based on transactions and
their possible upside.
cap. So these are the, they have large capitalizations and I don't have it
broken down right in front of me, but the large cap stocks are the ones going
to have the least appreciation, or growth in their value. And a lot of them are
take a lot to get into because their prices are pretty high. Yeah. But there
are always also going to be the least affected in a downturn. Yeah. And at the
same you're not getting much of a return on the equity side. Now if you're
going to get into a large cap stock, get one that pays dividends. Okay. So
you're going to get some appreciation, not much, but at least you can get some
income on and they have plenty of money. They can weather most stores. Sure.
Again, you're just not going to get much improvement in the, in the price.
Yeah. Over the long haul. Your small cap stocks are going to be the ones that
are the most volatile, they have the most upside, but most of them aren't.
Making a profit. Yet a lot of the companies that came on this year with their
IBOs, they're losing money. They're just doing it based on transactions and
their possible upside.
Well, you know the statistic is that a little over 30% of
all current companies that are publicly traded, their income does not outpace
their interest payments. Not anything, not any other expense, just their
interest payments. And when you think about it, that's a, that's a scary
number. Yeah.
all current companies that are publicly traded, their income does not outpace
their interest payments. Not anything, not any other expense, just their
interest payments. And when you think about it, that's a, that's a scary
number. Yeah.
Most people aren't going to have their retirement invested
in those types of companies. Anyway. That's for your, we'll call it Las Vegas
money, casino money. Right. That's for your, your play money.
in those types of companies. Anyway. That's for your, we'll call it Las Vegas
money, casino money. Right. That's for your, your play money.
Well and like the, when I think of the opportunities right
now I think of, I can't help but think of, you know, for, for us in, in, in the
fund model and, and for our investors, that opportunity lies with everyone
panicking and stopping production of loans or loan sales because they don't
know what's going to happen. So they want to hold on to what they have right
now is an opportunity to sell loans at a premium. Sure. So if you are holding
onto loans and you were thinking about selling them now, might be a good time
to do so.
now I think of, I can't help but think of, you know, for, for us in, in, in the
fund model and, and for our investors, that opportunity lies with everyone
panicking and stopping production of loans or loan sales because they don't
know what's going to happen. So they want to hold on to what they have right
now is an opportunity to sell loans at a premium. Sure. So if you are holding
onto loans and you were thinking about selling them now, might be a good time
to do so.
Yeah. Or hang onto it
Or hang on. I mean there's an argument for both sides you
can get a premium for, but you know, then it's that then you're now you have to
get your money work again.
can get a premium for, but you know, then it's that then you're now you have to
get your money work again.
Yeah. Yeah. So in short, which is not because we've been
rambling when you're in the real estate space and especially with what we did
with changing our model, we made our model to where it's worst case scenario.
We're staying in the affordable housing side because what's the worst case
scenario in a lending fund you have to foreclose on a piece of piece of
property.
rambling when you're in the real estate space and especially with what we did
with changing our model, we made our model to where it's worst case scenario.
We're staying in the affordable housing side because what's the worst case
scenario in a lending fund you have to foreclose on a piece of piece of
property.
Yeah. And then they filed bankruptcy. But yeah,
Either way. Yeah. If you end up owning them. Yeah. As a
lender, and again, worst case scenario, you can't sell them, then at least you
can rent them out for what your expected return is or very close to it. I mean,
yes, you're right. You can't do that with a luxury home. You just can't, you
can't deal with rent, can't do a luxury home, you can't do it with land. You
can't do it with a half constructed property. You, you know it's right. So from
our perspective, we're, we're sticking with our bread and butter. It's going to
be existing properties. Yes. And what I mean by properties, existing structures
aren't going to take a ton of work to finish them up. Fixed to rent, fixed to
flip, right. That all in that price point. And then anywhere from what we call
this C plus class multifamily properties up to the B plus class.
lender, and again, worst case scenario, you can't sell them, then at least you
can rent them out for what your expected return is or very close to it. I mean,
yes, you're right. You can't do that with a luxury home. You just can't, you
can't deal with rent, can't do a luxury home, you can't do it with land. You
can't do it with a half constructed property. You, you know it's right. So from
our perspective, we're, we're sticking with our bread and butter. It's going to
be existing properties. Yes. And what I mean by properties, existing structures
aren't going to take a ton of work to finish them up. Fixed to rent, fixed to
flip, right. That all in that price point. And then anywhere from what we call
this C plus class multifamily properties up to the B plus class.
And yeah, you know, we do what's called participations in
those. So we're not blending on the entire thing. We have other funds that come
in and we all, we share the risk just like we do when we want our lower loan
amounts and our single family, we're sharing the risk with other funds with the
larger stuff too. But they're all going to be properties that can easily be
rented out quickly if we ended up having to take them back. And this is not the
time to speculate on, not even speculate, but if you're trying to buy up land
for subdivisions, no, maybe give it a a few months or so. Just see, again, it's
not, you're not never going to do it, but you want to see what's happening. The
unknown is what, what's going on and you want to stick with your bread and
butter.
those. So we're not blending on the entire thing. We have other funds that come
in and we all, we share the risk just like we do when we want our lower loan
amounts and our single family, we're sharing the risk with other funds with the
larger stuff too. But they're all going to be properties that can easily be
rented out quickly if we ended up having to take them back. And this is not the
time to speculate on, not even speculate, but if you're trying to buy up land
for subdivisions, no, maybe give it a a few months or so. Just see, again, it's
not, you're not never going to do it, but you want to see what's happening. The
unknown is what, what's going on and you want to stick with your bread and
butter.
So we've bored you enough with the wall streets, and I
like to call it the antelope herd. If you ever watch somebody flying over a
herd of antelope in a helicopter, one of them takes a shine off this way and
they all follow, right? That's kind of what's happening right now. Everybody's
panicking.
like to call it the antelope herd. If you ever watch somebody flying over a
herd of antelope in a helicopter, one of them takes a shine off this way and
they all follow, right? That's kind of what's happening right now. Everybody's
panicking.
Oh, that's the psychology of most. Most humans is, you
know, follow the herd. And if everyone panics in sells low or sells high, you
know, they're just following suit. So it's,
know, follow the herd. And if everyone panics in sells low or sells high, you
know, they're just following suit. So it's,
and again, keep in mind, this is also an opportunity. A
lot of the borrowers we deal with, they have cash set aside just for this. So
if prices do drop, people have to sell because they were over leveraged then
they're going to be able to buy it at a discount. Yup. Again, are they going to
use all their money to do that?
lot of the borrowers we deal with, they have cash set aside just for this. So
if prices do drop, people have to sell because they were over leveraged then
they're going to be able to buy it at a discount. Yup. Again, are they going to
use all their money to do that?
No. They're going to leverage someone else's to buy those
assets at a lower price. So sometimes it's good to see a little, a little bump,
right? Absolutely. All right. If you want to find out more about our fund, go
to CarolinaHardMoney.com. Go to the investor tab and fill out the form and
we'll give you, actually we'll set you up as a, on a schedule to have a talk.
Okay. Did you want to, don't them to like us or, yeah, please like us please. I
like you. So yeah, don't forget the share, to subscribe, to like, to do the
thumbs up. All that kind of stuff and hope to talk to you soon.
assets at a lower price. So sometimes it's good to see a little, a little bump,
right? Absolutely. All right. If you want to find out more about our fund, go
to CarolinaHardMoney.com. Go to the investor tab and fill out the form and
we'll give you, actually we'll set you up as a, on a schedule to have a talk.
Okay. Did you want to, don't them to like us or, yeah, please like us please. I
like you. So yeah, don't forget the share, to subscribe, to like, to do the
thumbs up. All that kind of stuff and hope to talk to you soon.
Hi. If you really liked this show, what you can do is you
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