Tuesday, April 14, 2020

Investor Success Story #20


Wendy shares how they started out lending to real estate investors.
Bill talks about how an investor started out borrowing from their fund to buy and sell houses. Then as his portfolio grew and he had a huge nest egg, they took some of that money and put in Bill and Wendy's fund and watch it grow passively.
Now he uses the interest accrued quarterly to pay for his children's college education.
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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Bill Fairman (00:05):
Hi everyone. Thank you once again for joining us. I'm Bill
Fairman. This is my sister and partner, Wendy Sweet,
Wendy Sweet (00:12):
Lovely sister, Wendy Sweet.
Bill Fairman (00:14):
Lovely sister, Wendy Sweet. So, we are with Carolina
Capital Management. Now, one of the things that we do at Carolina Capital
Management is that we lend the money to real estate investors and where do we
get this money from? Well, we also...
Wendy Sweet (00:32):
We look into the couch for all the change and go to the car
where you have the cup and you look for all your quarters in there and add that
together and...
Bill Fairman (00:42):
That reminds me of this work for mortgage loans.
Wendy Sweet (00:49):
We should get one of those.
Bill Fairman (00:51):
So we raise capital from investors and these investors get
a return on their money.
Wendy Sweet (00:58):
We like to call it vegan for bucks.
Bill Fairman (01:00):
We take that money and we lend it out to these borrowers
here at the South East. And by the way, if you want more information on how you
can be an investor, you go to www.CarolinaHardMoney.com, that is where you get
started. And you click on the investor tab. Now we are still going want to talk
to you, but that is a good way to get started and get some information and then
we will get back to you on that. So...
Wendy Sweet (01:22):
You know what is funny though, we really started lending
money from borrowers, people that were borrowers, cause remember I was a, well
I'm a recovering mortgage broker and at the time and like 2000, 2001 I was
underwriting loans for borrowers who on a conventional side who wanted to
borrow money to buy houses and some of them could qualify for loans and some of
them could not. The ones that could qualify for loans had a lot of money but
they were not good at finding houses. The ones that were really good at finding
houses could not qualify for the loan. So I started taking their money that
they had like in self directed IRAs or bank accounts and lending that as a hard
money loan to the borrowers that were not really qualified for the conventional
loans because they were a little bit tighter back then. So of course that did
not last long then it was bog of you can get a loan. But that is really how we
got started. So there are several people that we started, started lending money
out. They actually started as borrowers and it is kind of built. We've got a
few borrowers that will tell you that that is really how they got started in
lending. They are not doing any investing anymore except for lending money. In
fact, I think you were talking about a little earlier about a friend of ours
who is doing lots of things with this, right?
Bill Fairman (02:43):
Yeah. Well you have to be an accredited investor to be in
our fund. And we had one of our borrowers who had enough properties that they
did qualify as an accredited investor because there are two ways be an
accredited investor. One is an income, annual income, the other one is a net
worth. And they qualified under the net worth because they had plenty of
properties.
Wendy Sweet (03:08):
See he had a really nice 401k set up his company working
for an energy company.
Bill Fairman (03:13):
So what has happened though? He, he took a lot of the
money that he earned on fixing and flipping properties and he took that chunk
of change and he put it in our fund. And so what, what has he done with it?
Well, for a little while he was just growing the balance,
Wendy Sweet (03:31):
Letting it reinvest. Compound...
Bill Fairman (03:33):
And then he had children...
Wendy Sweet (03:37):
They ruin everything.
Bill Fairman (03:38):
Had to go to college.
Wendy Sweet (03:41):
What a joy. Oh really?
Bill Fairman (03:43):
So this gives him the opportunity now to not hurt or lower
his balance and he has taken the income that he is earning off of that balance
every quarter and he is paying the college tuition. And then when those
children eventually work their way through college,
Wendy Sweet (04:03):
They can pay him back. And they all do.
Bill Fairman (04:07):
He can turn that switch back on and have it start building
up again. And that way when his kids move back into the house.
Wendy Sweet (04:16):
In the basement.
Bill Fairman (04:19):
I am sorry, I do not get that money anymore. We are
building it up so I cannot touch it.
Wendy Sweet (04:23):
By the way. I am charging you rent.
Bill Fairman (04:27):
But it is a great way to invest passively now. And by the
way, doing the fix and flip stuff is wonderful. And if you are watching HGTV,
it is exciting. And you can completely redo a house and have it sold within a
weekend.
Wendy Sweet (04:45):
Yeah. 30 minutes on television.
Bill Fairman (04:47):
But your goal is to get in a position to where now you can
invest passively. And you do not have to worry about the day to day running of
this. Because I can tell you right now, the lenders always make more than the
owners of the property based on an hourly wage. Remember we hit our at the time
or our friend that put this model together and they went based on the hours
actually work who got paid the most and while they got paid, the highest amount
of total money, the person that bought the house fixed it up, flipped it, made
like 65 bucks an hour.
Wendy Sweet (05:26):
That is right.
Bill Fairman (05:27):
And the lenders were making.
Wendy Sweet (05:30):
A couple thousands.
Bill Fairman (05:30):
No, it was more like $5,000 now.
Wendy Sweet (05:33):
Sign me up.
Bill Fairman (05:36):
So once, once you have accumulated enough, then you can
too become the lender. Now, you can lend individually on your own loans and you
had have, let us say, a chunk of change into one asset. But if you invest in a
fund, that same chunk of change is now divided over fifty, sixty, seventy, a
hundred assets depending on the size of the funds. And it is truly passive then
because really you are just either collecting money every quarter and then you
are sending it to the college of your choice, or you are allowing it to build
up over time and each quarter you are just watching your statement and watching
your balance go up. So it is an awesome way to invest passively
Wendy Sweet (06:25):
It sure is. I even have one of my college professors is
investing with us and he just loves what is going. Our mother and father, they
invest with us.
Bill Fairman (06:37):
Yes. And we have to have a good return because
Thanksgiving and Christmas meals.
Wendy Sweet (06:42):
But she is constantly complaining now that she has to pay
more taxes. Mom will always find something, right?
Bill Fairman (06:50):
So if you would like to learn more about investing in our
fund, please go to www.CarolinaHardMoney.com. Click on the investor tab to get
started. Again, like I said at the beginning, we are going to want to talk to
you because there is a lot of moving parts and we want to make sure that we are
a good fit and that for you and you are a good fit for us.
Wendy Sweet (07:15):
That's right because it is not guaranteed, right? Nothing
is guaranteed.
Bill Fairman (07:17):
There is nothing guaranteed in life. But investing in
something that is backed by real estate is, in my opinion, it is a lot safer
than investing in the stock market because you have zero control. Let us talk more.
But I'm biased. So, thanks again for joining us. Do not forget to like and
share. And we also have other videos that are available, archived, and
depending on where you are watching it, they are either going to be above
screen, below the screen, right
Wendy Sweet (07:54):
here or here or here.
Wendy Sweet (07:56):
Have a wonderful day. Thanks.
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Podcast:
http://thealternativeinvestor.libsyn.com/investor-success-story-20 
Visit:
 https://redirect.viperseotools.com/r/iframe?key=Pkbn9kpWlAOJ

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