https://carolinahardmoney.com/53-economic-conditions-with-bill-wendy-and-jonathan/
Total Unemployment of 23 million applicants.
How many will go back to work? How will they pay their taxes? Some businesses will never come back because lifestyle habits have changed.
A lot of work can be done virtually.
Ordering online has been huge. Amazon is having a banner year.
Housing starts are down 22% in March over February. Multi-family are up.
What does this mean for real estate?
----------------------------------------------------------
Bill Fairman (00:03):
Hi everyone. It's Bill Fairman with Carolina Capital Management.
Along with Jonathan Davis. And then Wendy Sweet is over in the corner. We're
trying to be socially distant as possible. And I think we talked about this
before. Wendy and I have been socially distant for most of our lives.
Wendy Sweet (00:26):
Yeah. 58 years.
Bill Fairman (00:30):
We're siblings. By the way, don't forget to share, like
subscribe. And if you have any information, I'm sorry. If you'd like any more
information,
Wendy Sweet (00:41):
if you have any, we'll take that too.
Jonathan Davis (00:44):
All the information we can get.
Wendy Sweet (00:47):
That's right!
Bill Fairman (00:47):
We're all about learning. So yes.
Wendy Sweet (00:48):
That's right!
Bill Fairman (00:49):
By the way, that reminds me if you have any information,
you can put it in the little chat box there.
Wendy Sweet (00:55):
That's right!
Bill Fairman (00:56):
But our web address is CarolinaHardMoney.com. And again,
if you do have any questions, you can pop them over there in the, in the little
chat box. So how's things going? How do you like working from home?
Jonathan Davis (01:09):
You know, it's nice. Well, little noisier than I'm used
to, but it's not terrible.
Bill Fairman (01:16):
You work and then you say "Stop it!".
Jonathan Davis (01:18):
I know. I was telling Bill earlier, I was like, I've threatened
to take away the same toy about seven times now. Man. It's, it's a little
different, but it's good.
Wendy Sweet (01:29):
We should try that here at the office.
Jonathan Davis (01:31):
Oh yeah. Right. Yeah.
Bill Fairman (01:33):
Well it goes without saying. We are working in a different
world now than we did a month ago. Right? So let me give you, I want to say
highlights but, some of them are low lights. So today, what is today's date?
The 15th?
Wendy Sweet (01:51):
The 16th. It's the end of Passover today.
Bill Fairman (01:53):
Okay. So, Thursday the 16th. These numbers came out this
morning. The new unemployment, first time, applications, 5.25million.
Jonathan Davis (02:06):
Wow!
Bill Fairman (02:06):
That brings us to a total so far since this happened, around
23 million
Wendy Sweet (02:12):
Unemployed. 23million unemployed?
Jonathan Davis (02:15):
Applicants.
Bill Fairman (02:16):
Filed for first time unemployment applications. That's a
lot. Now, you know, that's the bad news. However, you know, there are some good
news to that. Some of it is that these are, a lot of these are temporary
furlough. But there's also going to be a lot of people that those jobs will
never come back. There's going to be businesses that are not gonna make it
through this as well.
Jonathan Davis (02:43):
Yeah. And I wonder as an aside, I guess, but how many
people don't want to go back to work because of that, you know, the extra money
that they're getting. I've talked to several people and they are making more
money, unemployment and the extra $600 a week. Than they were at their place of
employment.
Bill Fairman (03:01):
However, that only lasts for what? Four months is the max?
Jonathan Davis (03:07):
I think four months is the max. Yeah.
Bill Fairman (03:08):
And they're also going to have taxes due at the end of that
period.
Jonathan Davis (03:11):
Well no one's thinking about, no, you're not thinking about
taxes.
Bill Fairman (03:14):
So we're going to have this big bill at the end of the
year. So that being said, I think most people want to work. You know, they
don't want to be dependent on the government because that's not going to last
long anyway. Now another good piece of this being temporary and the fact that
some businesses will never come back because lifestyles and patterns have
changed. Which means there's opportunity for other businesses to fill those
gaps.
Jonathan Davis (03:46):
Absolutely!
Bill Fairman (03:46):
There's hiring opportunities elsewhere. I mean, look at
the, all the grocery stores for Amazons, everybody that needs the delivery. So
you had your Uber drivers that were halling people around, now they're halling
food around. Or they're delivering groceries in those same automobiles. So...
Jonathan Davis (04:03):
And even what we were talking about earlier with Mindy
was, we noticed in our own office like, we can do a lot of things virtually.
How many businesses can't? And those are the ones who are fading quickly.
Bill Fairman (04:18):
Yeah, I think some of the issues with ordering online and
stuff are going to be in the demographic that are, you know, about 50. They may
have issues. But when you get into the 80 year olds. And then my mother-in-law
didn't even own a computer. So there's no way she's ordering groceries online.
Jonathan Davis (04:39):
She has a phone, right? She can...
Bill Fairman (04:41):
Yeah. Anyway, moving along. Housing starts. Housing starts
were down.
Jonathan Davis (04:52):
What do you mean by housing starts?
Bill Fairman (04:54):
New homes being built.
Jonathan Davis (04:55):
New homes being built. Okay.
Bill Fairman (04:56):
And I'm sorry. Thank you. Residential single family housing
starts were down 22% this month over last month. Building permits were down on
everything. But multifamily, they were actually up.
Jonathan Davis (05:13):
Interesting.
Bill Fairman (05:16):
So, and I'm kind of a data nerd. I watch all the business
shows. And a couple of the knuckleheads were saying that because of the
economy, the uncertainty, people aren't going to be buying homes, they're going
to be moving into apartments. And that's why there's more building permits for
multifamily. And we all know we're in the business. You don't just start with a
subdivision and then turn it into multifamily. It takes a little while to get
the...
Jonathan Davis (05:48):
Those are big projects. Those are...
Bill Fairman (05:51):
And besides that, you can't just, it's got to be zoned
properly.
Jonathan Davis (05:55):
Yeah. You have to have the right zone and you have to have
the right infrastructure in place. I mean, yeah, you just, like you said, you
just can't convert.
Bill Fairman (06:02):
So either...
Wendy Sweet (06:03):
But then you've got, you also have other analysts that are
all saying now that instead of having multifamily that people are gonna really
want to move into the single family arena. Because of the social distancing,
they're not comfortable anymore being so close to their neighbor. People who
have worked out of their homes. And they're smaller or they're in apartments
and they're smaller, they're now going to want to be in a place where they have
more space because they're getting used to working virtually. That's one of the
things we talked about as, wow! It really is easy to work virtually and gosh,
we're getting so much more done. Because we're able to work virtually. So,
you've got, you know, two different camps that saying completely opposite
things. And so nobody really knows. My crystal ball broke back in 2007. You
know, I wish I knew what was going, but you know, it's, it's really up for
grabs. We don't know what's going to happen. So there's our show.
Jonathan Davis (07:07):
What do we know? We do know the data points that you just
pointed out. We also know that before there was a housing shortage on the
single family side. That housing shortage hasn't gone down. Right. So, you
know, what we can do is, you know, then postulate what we think will happen
based on the information that we have. And you know, my opinion is you're
seeing...
Bill Fairman (07:30):
Postulate! That's his $5 word.
Speaker 2 (07:31):
it's a big word. He gets three points for that.
Jonathan Davis (07:34):
My opinion is, we're going to see when this all breaks,
the Covid19 and you know, the social distancing is. You know, the markets open
back up. We're going to see, I think a lot more single family sales on the end
user buyer. I think, the values that perhaps might get hurt the most are your
lower end rentals, but if they're cash flowing, just keep them where they are.
Wendy Sweet (08:00):
That's right!
Jonathan Davis (08:01):
So, you know, and if they're not cash flowing, well, I'm
sorry, that may have not been the best...
Bill Fairman (08:12):
Well...
Wendy Sweet (08:12):
Well, you know, with us, with us, I'm sorry Bill. That,
he's not next to me so he can't hit me to make me stop talking. So, you know,
the other thing too is for us, our loans, our borrowers have not changed. We're
still getting draw requests on a regular basis. They're still doing work. All
the contractors are still doing what they need to do. I've had a couple people
tell me that they've had contractors that have been no show problems. But
they're the ones that were no show to problems to begin with. So, investors
that are doing fix and flip are still moving. We're still getting calls about,
you know, people wanting to borrow money and we're actually getting ready to
ramp that back up again to where we're putting loans in our pipeline. Of course
they're going to be a bit tighter than what they once were, but that, that
market is still just as strong as it can be. And I think we, we talked about,
we discussed this offline a little earlier about, there may not be as many new
construction permits being pulled and that just means that the fix and flip
market's going to be even stronger.
Bill Fairman (09:20):
Well I was going to mention on the, the apartment starts.
It's a lot easier to take a mixed use development and you know, that's in the
pipeline and say, alright well let's just start the multifamily part of this
first. Get it going. And not worry too much about the commercial piece because
you don't know what the restaurant and the retail business is going to be like.
So let's start on the multifamily cause we know we could probably get those
leased up fairly quickly. So, that makes sense there. One of the other things
that came in yesterday was the home builder sentiment monthly report. And this
is, I love this...
Wendy Sweet (10:01):
Sentiment.
Bill Fairman (10:04):
They don't actually go by numbers. They go by how they're
feeling.
Wendy Sweet (10:09):
That's true! That's really what it is.
Speaker 1 (10:11):
So they pull all these, you know, builders. And they say,
so how are you feeling about sales? Not, how are your sales, how are you
feeling? Future sales, and the scale is from 1 to 100.
Jonathan Davis (10:26):
That's a large scale.
Bill Fairman (10:26):
A hundred is good. One is bad. And so for the past three
or four years, it's been in the upper eighties, lower nineties, and it came in
at 38.
Jonathan Davis (10:40):
Wow!
Bill Fairman (10:41):
So, that along with the lower housing starts, actually
kind of tease us up because if they're not building and there's still demand
out there. And then that means, the people that are doing the rehab are going
to be at the head of the curve when this thing turns around. Your biggest
concerns are the people that are buying homes. How are the mortgage bankers
going to look at somebody that had to have deferred for three months or they're
moving from one house to another. And they send out a mortgage verification and
there was the ferment or, you know, some kind of payment issue. They're going
to count against them cause it was all in this timeframe.
Jonathan Davis (11:35):
Good points.
Bill Fairman (11:36):
When you send out a verification of employment and you know...
Jonathan Davis (11:39):
You have a gap in your pay history...
Bill Fairman (11:41):
They were laid off for it, certain period of time. Is that
going to affect them qualifying for a loan? So I think there's going to be a
lot of opportunity for private lenders on their consumer mortgage side of
things too.
Wendy Sweet (11:57):
Yeah, that's true. However, when you've got 23 million
people in the same boat, it makes me wonder if they won't change their
underwriting guidelines for a certain part, or a particular timeframe to
overlook those kinds of things. Because that's going to be a really, really big
deal. One of the things that we're seeing in the next six months for loans for
investors is, and I think everybody's going to see this, is that everybody's
guideline box is going to be a whole lot tighter than it had been. I mean, even
for us, we were doing a hundred percent purchase and a hundred percent of the
rehab at 70% of the ARV. So now we're down at 65%. 90% of the purchase, a
hundred percent of the, of the rehab amount. We care about how much of the
purchase, how much of the whole loan is dedicated to just the rehab. You know,
we're trying to limit our exposure. I know that others are going to do the
same. And I wonder if this is something that will stay in place. It's good for
everybody if it does stay in place because investors need to be concerned about
their exposure as well, you know, or is it something that's going to get tighter
in the future that, you know, you really don't know what that's going to look
like.
Bill Fairman (13:24):
Well, yeah. And you don't, you just have to be patient.
See how things are going to work out. Again, to Jonathan's point, there's
demand for housing.
Wendy Sweet (13:35):
Yeah, absolutely!
Bill Fairman (13:36):
We still keep birth in babies.
Wendy Sweet (13:39):
There's probably going to be a lot more in the next nine
months.
Bill Fairman (13:44):
So, they're either fighting at home or making up one of
the two. And then, I'm thinking that's why Lowe's and Home Depot has been so
busy. People are sitting in these houses going, wow! I thought 1500 square feet
was a lot more room than this.
Jonathan Davis (14:02):
I need to get outside and do something.
Bill Fairman (14:04):
I need some extra space back here with you all the time.
So, and then same thing happened in '07, '08, '09. People stayed in their homes
longer and instead of looking out to buy a new house, they just improved the
one they had or expanded the one they had. I think, in the long run, you're not
going to, the only reason you're going to see new loans is from refinancing.
Now, I don't mean totally new loans, but I think being in the same mortgage for
more than seven years is not going to happen because everybody's refinancing.
That's way too long. But I see people staying in their homes longer if
possible, not moving.
Jonathan Davis (14:52):
If they're already in a single family home. Right. Yeah.
Wendy Sweet (14:55):
You know, another thing I think we all need to be
seriously aware of, is the values of the properties and what they're going to
look like. I was listening to Dave Steck. Have a conversation, a webinar that
was extremely informative. He's a data guy, really, really does a lot of in
depth data research. And one of the things that he said really stuck with me,
even in 2007, when everything went to hell in a hand basket. It still took even
from 2000 on, it took 18 to 21 months for the values of the properties to
bottom out. So even when we get back up and running again, that's something
that we need to be really, everyone, every investor needs to be concerned about
this. What are, you know, where's the bottom going to be? How long is it going
to take us to get to that point? And how far will it go? We really don't, we
don't know the answer to that, but we need to be aware of it. Tread lightly. I
love the term patients that you used, Bill. I don't think people should stop
buying. We just need to make sure we're getting better deals and, and
understand that the values are going to go down. I don't think there's any way
around that. We just don't know how far that's going to go. And we need to
understand that it's not going to happen overnight. It's going to take, this is
going to take some time.
Jonathan Davis (16:29):
Good points.
Bill Fairman (16:29):
Well, one of the things that's going to help that is that
although sales are down, new purchases are down, inventory is down too.
Wendy Sweet (16:38):
That's true.
Bill Fairman (16:39):
So that's going to keep the prices, I want to say
artificially high. Because you don't have a big demand for people trying to
sell their homes. They're not putting them all in the market. Because they're
afraid of not being able to buy a new one.
Jonathan Davis (16:56):
Yeah. Get what they want out of their home and buy a new
one. Yeah.
Bill Fairman (16:58):
So, you're still going to see higher demand typically.
Then you're going to see, supply. Because we're still forming a household.
There's no way around that. We were already behind.
Wendy Sweet (17:11):
And I think a lot of reason why there aren't a lot of
houses on the market, number one is, people don't want other people walking
through their houses. And in many States it's, you can't even legally do that
well with the new rules that have come out. So, vacant houses are doing really
well as far as showings are concerned and that's really all you're seeing on
the market. Also, anybody who is putting their house on the market and with a
really good real estate agent, the agent's going to tell them, Hey, I wouldn't
be on the market during this time anyway because when things start do moving
again, it's going to like they were on the market for a very long time when
it's really going to be a flawed count of how many days that property was
really available to sell because you've got two months where it's not going to
sell anyway. And when people see that it's been on the market for a while,
they're going to come in with lower offers and it just makes the whole deal
look a lot worse to a lot of people. So I think that's why the inventory is
really down.
Bill Fairman (18:17):
So here's what FEMA needs to do, or the government. They
need to go in. And they need to get all these FEMA trailers that they're not
using for disasters. They need to park them at everyone's house that's listed
and then they can move into the FEMA trailer. That way, when people come to
look at their house. They won't be afraid that they're bringing a disease in
there because they're living in the trailer anyway.
Jonathan Davis (18:40):
We have a couch that we were looking to sell and I mean,
we can't even sell the couch cause we don't, you know, my wife doesn't want
people in our house right now. I mean take that to the next degree and yeah.
And people's homes. I get it.
Bill Fairman (18:57):
There's a great question.
Wendy Sweet (18:58):
Yeah. Like what, Sohil is saying here,
Bill Fairman (19:01):
It's about the wholesalers. People still think their house
is worth a certain amount. Well, it may still be. That's the problem. With
wholesalers, you still need to find out what the pain point is. I'd still be
negotiating lower because let's face it, you're probably gonna have fewer
people knocking on their door.
Wendy Sweet (19:28):
Yeah. The buyers are slimmer right now.
Bill Fairman (19:30):
And that's part of the problem of it. Taking a while for
the values to drop over time because you still have all these comparables.
Jonathan Davis (19:42):
Yeah. They take a while to work out.
Bill Fairman (19:44):
When you're looking at close sales, you're looking in the
rear view mirror.
Jonathan Davis (19:48):
You look back, you know, six to 12 months or sooner if you
can get them. But yeah.
Bill Fairman (19:54):
Well the thing about on the wholesaling side, it's all
about I need to sell this now. You need to find out what their reason for
selling the house in the first place. That's going to determine whether you're
going to get a good price on it or not. And that's the only way I can really
help you right now. Trying to figure out what their pain point is. And then
solving that. It's not necessarily all about price. Sometimes it's about being
able to work with somebody where you can do a subject to.
Wendy Sweet (20:30):
Or seller financing.
Bill Fairman (20:32):
Utilizing their current financing. So you have to look at
other ways to make the deal. I mean, you can only find that out by
understanding sellers.
Wendy Sweet (20:43):
That's right.
Wendy Sweet (20:48):
You know, there's a comment in the chat asking about what
a foreclosures go way up. And you know, that's always a possibility. That would
happen. And I think, you know, that would be a good thing for investors. Of
course, if the foreclosures go back up. What was the other question that just
popped up? I didn't get a chance to read it.
Bill Fairman (21:14):
Well, it was mainly about, making sure you have cash
reserves because a lot of people hurting a lot of people out of jobs.
Wendy Sweet (21:23):
Cash is King right now,
Bill Fairman (21:24):
You're going to have to have cash and I'm going to get
into that too with what we're doing with the fund and this might be a great,
great place to start that anyway. All funds are operating a little bit
differently. Our fund is strictly lending. And it's, it's a short term loan
that we're doing anyway. The beauty of short term loans is they're typically
high yielding. The downside of short term loans is there are short term. And
you're constantly having to turn them over in order to make the peak return in
your fund.
Jonathan Davis (22:03):
Correct. Yeah.
Bill Fairman (22:05):
When, things like this happen and we were very fortunate.
A year ago and because we're part of all these groups, we realized that the
market was already at its peak. And I don't want to say we knew this was
coming, but we knew it was at the peak and the only thing they could do is go
down.
Jonathan Davis (22:25):
Yeah. Yeah. Whatever that, whatever the catalyst was for,
it was weeping down.
Bill Fairman (22:30):
You know, we used to do very large luxury homes, which is
a lot easier for us as a lender because it's less work and it's more money.
Jonathan Davis (22:40):
Yeah. You work as hard on a million dollar transaction as
a lender, as you do a hundred thousand.
Wendy Sweet (22:44):
That's right.
Bill Fairman (22:45):
The downside to that is if a few of them go bad, then
you're out a lot more money.
Jonathan Davis (22:51):
Very true.
Bill Fairman (22:52):
That said, that the single family home that is the most, I
guess wanted out there, the biggest piece of the bank public is buying the
affordable house. If you got your first time home buyers fit into that
category, you got your empty nesters that fit into that category, and you have
investors that are buying homes to rent or all in that category. So those homes
are always going to have a place
Wendy Sweet (23:21):
And affordable in our area, in the Southeast area is about
300 and under.
Bill Fairman (23:27):
Right. Yeah. So our average loan size went from 258,000
down to 155.
Jonathan Davis (23:39):
156.
Bill Fairman (23:39):
So, and then the same thing with small multi-families.
We're staying in the affordable housing. So, as a fund, we're in really good
shape because worst case scenario, if we had to foreclose on every single
property that we have, and we know that's not going to happen. We can at least
rent these things out. If we can't sell them quickly. It's hard to sell a
million dollar house quickly because there's very few people that can afford
them.
Jonathan Davis (24:06):
It's hard to rent a million dollar house.
Bill Fairman (24:09):
You cant rent a million dollar house or anywhere near your
expected return. You can do that with a 200 or $300,000 house. Absolutely. And
there's still, people are still being able to do their fix and flips right now.
Our area has not been shut down. Where building is not going on.
Jonathan Davis (24:28):
Active construction is essential. So, yeah.
Bill Fairman (24:32):
And the liquor store.
Jonathan Davis (24:33):
And the liquor store.
Wendy Sweet (24:34):
Well then Bill too, you need to really talk about, you
know, when people are looking at their market and wondering what's going to
happen in their market. You have to really look at and you brought this up.
What is the employment opportunity in your area? You know, we've got American
airlines hub here with 33,000 employees. That have been, you know, really
booted out for a while. Where we've got lots of hotel tourism going on here.
Johnson and Wales is the big restaurant college that's here in downtown
Charlotte. And so we got restaurants galore. They're mostly out of work. It's,
you know, we, we've got a pretty big segment that's been hit, so people need to
look in their areas too and see what, you know, what's your main employer
status there. What, you know, are they hurting or are, is it medical, are they
working like crazy? So, you really have to think about that.
Bill Fairman (25:38):
Yeah. And unfortunately in our market where we have a lot
of diversity in employment here. So, while the tourism industry and people
taking flight to really taking a hit. We have logistics here that is just
blowing up. So the people that are delivering goods and services to homes are
really, really huge here. So well some people are going to be displaced and
these markets are going to be able to make it up in some of these other
businesses that are, that are taken off. So, yes, when it makes a great point,
you in every area is a little bit different. I know South Florida is really hit
hard because they had the cruise industry. They have all the hotels and...
Jonathan Davis (26:24):
Restaurants.I mean everything. Yeah.
Bill Fairman (26:26):
They have all this. And one of the other industries that
are kind of hit hard or the active senior living. Because now they're all
basically caged in. They can't go anywhere. So it's not that very active is it?
Jonathan Davis (26:43):
Not an active kid anymore.
Bill Fairman (26:44):
So, back to finish my point on the fund side and getting
back into the, to the reserves. So, in our fund, you're going to be getting a
little bit less of a return than you've been used to. And part of that reason
is because we are taking extra money, extra funds each quarter. We're putting
them aside for loan loss reserves because we want to make sure that we have
plenty of reserves in case we do have some issues with being able to collect
payments or if we have to take properties back. We have to pay to have those
foreclosed on and marketed and that type of thing. At the same time, we're not
lending as much because we are being...
Wendy Sweet (27:25):
Conservative.
Bill Fairman (27:26):
And choosy because we're not exactly sure what the values
are going to be in the next four, six months. So we're thinking a more
conservative approach with...
Jonathan Davis (27:39):
Which is also a really a good thing for short term
lending. Yeah. You know, that's another highlight point for us. I mean our loans
average term are what? Nine months? Thereabouts. Markets don't typically shift
dramatically in that time frame.
Bill Fairman (27:52):
And back to that patience.
Jonathan Davis (27:54):
Yes.
Bill Fairman (27:55):
Yeah. The key is just to be patient. You don't want to
just stop lending, but you don't want to make the deal. Well, we never made
deals that if everything had to work perfectly. It was going to work.
Jonathan Davis (28:08):
It never does. Yeah.
Wendy Sweet (28:10):
Not that I'm saying.
Bill Fairman (28:12):
If you're buying properties, you need to stress them. If
they're going to be on the market in extra six months, can you still handle it?
That's what we're looking at.
Wendy Sweet (28:21):
Right.
Jonathan Davis (28:22):
I mean, yeah, I've got active rehabs that are going on
right now and they're still going. It's going at a slower pace, but I'm looking
at it, you know, at least three months longer to completion that I thought.
Bill Fairman (28:33):
And at the same time, if you're doing rentals, if you can
only get. But let's assume your tenant's going to miss three payments this
year. Are you still going to be able to have a cash flow? Cause it's one thing
to break even. You're not really breaking even. Because even if you're breaking
even, you're going backwards. There's always expenses. So you still have to
have cash flow. So, just make sure that you're stressing these, to figure for
extra vacancy. And if it's still a deal, it's still a deal. You don't, I think,
and I forget who it was that made this point yesterday. And David's meeting,
but you're out in the, I think it was a great use. You're out in the Midwest.
If you're buying a bunch of rental properties in the Midwest, values aren't
really going to change. They don't have the ups and downs. So, you're not out
there looking for the lowest prices in the Midwest. You're just buying them
when they're available. Now, are the prices going to come down a little bit?
Yes. But you're still looking at the cash flow, right? And the other markets,
especially the sand States, their values are always up and always down. And
you're, if you're doing that, if you're purchasing for rentals in those areas,
you're purchasing in the wrong places. Unless you're, unless you're buying
apartment complex. Single family for the most part in those sand States, or,
it's tough. You're only going to buy them when the market's down. So you can
get a decent cash flow and you're not buying when the market is up because
there's not enough margin.
Jonathan Davis (30:21):
Yeah, exactly.
Bill Fairman (30:22):
So those are the areas to look in when they are down, but
not right now. They're not down yet. Right?
Jonathan Davis (30:30):
You're right.
Bill Fairman (30:31):
So, I guess that kind of sum it up. We're being patient.
We're still doing business. But we're picking and choosing what we're doing.
Jonathan Davis (30:45):
And I will say, you know, jump in, we are still lending at
more favorable terms than probably everyone else that I've talked to who is,
you know, either regional or national lender. And the reason we're doing that
is we know our market very well. We only work with very experienced borrowers.
And we are in complete control of what's going on. And like you said, we
defined what our product is and what our, you know, our niche in the market is.
And I feel like we know it well. So, if people are looking for loans or to get
to get lending, we are open for business and probably can get you something a
little better than other people that you've talked to.
Bill Fairman (31:38):
And one of the benefits of being small and regional is
it's easy for us to pivot. And work with what's available. You get your bigger
funds, your national lending companies. Scott said this earlier with, you know,
the big cruise ship, it takes awhile to make a turn. And we're not that way.
We're very nimble. And we take with the market.
Jonathan Davis (32:07):
Yeah, you're a hundred percent right.
Bill Fairman (32:10):
Wendy, any last words?
Wendy Sweet (32:15):
Believe it or not, I'm all out.
Bill Fairman (32:15):
Really?
Wendy Sweet (32:15):
No. I just want to, I think what you said about, yeah, you
go to me into it. One of the things that I, I think that you said that it's
true is we're very, very competitive in our rates and terms right now. And one
of those reasons is because everybody else has raised their rates and raise
their terms. Then increase their, made their terms more difficult. Which is
something we haven't really done. We're kind of staying steady with what we've
done. We've gotten a little bit tighter in the loan to value the ARV that we're
doing, the loan to value on that. But for the most part, we're still riding
down the same path. It's taken a little bit longer to get appraisers out. And
to get title work pulled. But we're still, you know, instead of the two weeks
we're running on three and four weeks right now. But, you know, we're, we're
still moving. We're, you know, trying to ramp it up a little bit more. So
we're, I'm excited. I know we're all ready to get back to work. And get that going.
But we're also extremely concerned with preserving the principle of our
investors and just making sure that our deals will be solid even in this
unknown market.
Bill Fairman (33:39):
And just to be clear, the turn times for appraisers and
inspectors and title work, really doesn't have as much to do with the current
Covid19 thing if you think. Refinance applications are up 192%. So they're all
really busy with other people.
Wendy Sweet (34:03):
That's right.
Jonathan Davis (34:05):
I saw it right out there like 2.9 something.
Bill Fairman (34:08):
Probably a 15. Because the 30 year fix this morning was
3.31%.
Jonathan Davis (34:14):
3.31.
Bill Fairman (34:16):
So, yeah. Everyone who can refinance, already got their
application in. But besides that, it'd be a great time to get cash out if you
could.
Jonathan Davis (34:26):
Yeah. Yeah. He lacks cash out refinances, you know, whatever
you can,
Wendy Sweet (34:31):
I'm in line for that.
Jonathan Davis (34:36):
I took your advice Wendy. I went ahead and did that as
well.
Wendy Sweet (34:38):
Awesome! Awesome!
Bill Fairman (34:40):
Well I'm just waiting for my government cheese. Alright.
So, guys thanks so much for joining the show.
Wendy Sweet (34:49):
Don't forget to subscribe. Like.
Bill Fairman (34:53):
By the way, we are...
Wendy Sweet (34:54):
Tell all your friends
Bill Fairman (34:55):
Carolina Capital Management.
Wendy Sweet (34:56):
Yes.
Bill Fairman (34:57):
Our URL, which both people do know. It's a web address.
CarolinaHardMoney.com Please like. Please share. Please follow. Do a little
thumbs up thingy.
Wendy Sweet (35:12):
Yeah, tell all your friends.
Jonathan Davis (35:13):
Send us your comments. Your questions.
Wendy Sweet (35:16):
Your money.
Bill Fairman (35:19):
Only send the good comments.
Wendy Sweet (35:21):
That's right.
Bill Fairman (35:22):
Anyway, thank you so much for joining us. We'll see you
later.
-------------------------------------------------------------------
If you want to listen to our Podcast, click here:
Visit:
No comments:
Post a Comment