💸The BIGGEST Wealth Building Opportunity in the Last 91 Years!
💸SECRET ALGORITHM To Make Perpetual Income Every Month!
💸How To Manifest Money Easily Just Like The Elite Do
hi folks are you wondering how we got into this housing shortage in the first place we are going to do our best to untangle this mess right after this hello folks thanks again for joining us on the real estate investor show hard money for real estate investors we are carolina capital management and we are lenders for real estate investors in the southeast if you're interested in borrowing money go to carolinaheartmoney.com and click on the apply now tab if you're a passive investor looking for passive returns then hit the uh accredited investor tab don't forget to like share subscribe hit the bell and lastly don't forget to sign up for wednesdays with wendy wendy [Music] so when he gives up 30 minutes per person each wednesday to talk about all things real estate book your times now there's the link because she's booked out a couple of months in advance i've talked to about six people a day i also put my gum up underneath the table too while y'all are your mind's there too good now i have a place to hold my pen that's right so another week another day another dollar that's right so are you at a loss for words yeah that is really invaluable let's take note of this so we'll get to our uh ugly question in a minute let's let's do a little breaking news shall we show sure we need to get in kickstarter every every now and again i'm at a loss for words see in the next 20 years it usually is can you take a breath please yes yes it is so well first unemployment first of all you had a great rock hill sub group meeting last night yeah and and it's something that people can join by zoom so you need to talk about that talk about that you're doing the the set yeah so i've been doing the sub group meeting for i don't know somewhere around five years and it's been a great run and it was time for me to pass the torch to someone who isn't at a loss or someone who can run faster like jonathan so jonathan is taking over for me going forward i introduced him to the group last night yeah again jonathan has the same access that we do to a really good speaker help the community um we've had numerous people tell us that rock hill is a honey pot right now for real estate it is and while we are invested in rock hill ourselves and we prefer not to have the competition we're not nothing going on we don't have a mindset of scarcity we have a mindset of abundance that's right but what's important to know too is the group although it's based in rock hill that's where it's coming from it's on zoom so wherever you're located you can attend it's it's good information for real estate investors yeah so if you're interested in doing that you want to get on the list so you can get the link to the zoom jonathan's list then email jonathan at carolinahardmoney.com and he'll get you put on the list that's great jonathan carolinahardmoney.com excellent we'll have that put in the comments section as well and speaking of comment section i left that part out we have a comment section it's going to be either on the right hand side of your screen or underneath depending on the platform that you're viewing us from all right so back to that breaking news sorry tell us so unemployment figures came out again they do it every thursday morning when they come out and they're lower than the previous week for continuing and and new claims so all that's good the problem is we still have nine million some uh jobs available and no people work them uh yeah it's still just they're still sorry still seven million people at work yeah but they're choosing not to they're choosing to be out of order in most cases yeah we're looking for a marketing director we can't find that position well an accounting associate can't find that position um and maybe somebody in the loan department jonathan needs an assistant please probably all people who want to be jobless you know we had that would be great [Laughter] we had a lot of people saying that those there was 21 states that stopped giving out the extra unemployment money and they assumed that that would make people go to work it turns out it hasn't done much it hasn't raised um the employment rate right in those areas very much so it really wasn't much of a incentive maybe people are just inherently lazy well do you know that you may not i don't know this i was just a lot of people have just gotten out of the workplace montana because montana actually instead of just not giving out the extra money they actually converted that into a bonus to get a job yeah so i wonder what their numbers look like i don't know off-hand i think you had to stay in the job for a year before you got it is that what it was okay and montana is beautiful i just got back from there great trip so all 12 people have a job all right don't be hating on me montana people have money but we're not going to say anything about california [Laughter] now montana is just a beautiful state it was really awesome awesome trip beautiful places uh more breaking news because of uh what's going on in afghanistan something that flew under the radar on friday was that the national tax um i forget what they're called national tax something or another anyway they put out the statistics for the number of americans that are paying taxes and like paying in to taxes yeah it turns out that 61 of the country is not paying any taxes at all like by choice or it didn't say by choice it just says only it says that 61 of of the country is not paying any taxes federal income tax is that what you're referring to okay well it could be because they're not working it's disturbing that they're not they didn't they didn't pay any tax in 2020.
Yeah what's disturbing about this is that when you have more people uh not paying taxes then are paying taxes and then you continue to they'll just print money we'll be able why ain't about the rich not paying their fair share who is paying their fair share of 61 aren't paying at all that's exactly right that's exactly right and here's here's really the biggest problem is if you're not invested you don't care right yeah um that that's why entrepreneurs do so well is because they're invested in their company if you have team members employees whatever and they're they have a bonus base this is why i always thought that everyone should be paid commission yeah you gotta eat what you kill it's very difficult to come up with a commission uh plan for let's say a receptionist or someone that answers the phone or or whatever but they all should everyone in the organization should be invested somehow with some sort of profit sharing in order for them to have the incentive to do their best now are we set up that way though not all of us it's hard to structure it it is but if it's based off of profit year over year yeah um customer service just send out surveys and things like that my point here is what's the incentive for the people to vote for holding down taxes when you're not paying it right when the majority aren't paying it yeah but the majority is voting it to raise it for other people yeah how is that fair yeah yeah that's that is interesting isn't it it's a good point but it makes you wonder why they're not paying taxes you know what's what how are they falling through the cracks how are they hopping into the loopholes you know what what's wrong with out there what percentage of the population is living at or a lower priority below the poverty line you know stuff like that okay so a lot of the um incentive money was tax-free so they're probably including a lot of that yeah but then there's a lot of people that maybe they didn't file taxes because all the unemployment that they were getting they didn't think they owed it yeah that's a good point that's going to sneak up they they do owe it pretty quickly so the drug dealers don't pay taxes i don't know do the pharmaceutical companies pay taxes actually they probably don't put that so by the way that's how they get you you're required to pay tax on the profit for your ill-gotten gains and if they can't catch you for your ill-gotten gains they can catch you for not paying taxes on it that's right i'll get you one way or the other um so where are we now all right supreme court ruling yes on that thank you thank you randy for sending us that article um you know what was it a seven you can just read it i'm not reading it i'm going to touch on it i think it was a 63 ruling bill's been a little sexy it is it's in the very first three words a six to three decision was made in the supreme court you're good so basically they're saying that uh the cdc does not have the authority to uh have a ban on foreclosures and evictions convictions yeah which we all knew yeah gosh what a surprise yeah and and uh the administration is still fighting this this is totally unfair they're just going about it the wrong way i get people need help but instead of taking one group of people and making them responsible to um pay for everyone else and when you say one group you're talking about landlords yeah especially most like most houses are owned you know for four houses or less right it's five or less and i think it's what fifty percent or more on five or less yeah yeah so so why is it fair for small businesses to bear the front well their rebuttal on this is that they're they want to disperse funds to the landlords to help pay right for the rents that's not that aren't getting paid but the problem is is there they don't have a good uh system in place to disperse the funds in the first place like to me is it like why on earth would you need a moratorium on evictions if you just sent the money to the landlords for the rents that's right like why yeah there's no like like here's the right out price 8 works very well why not have those people apply for relief and then that money is sent to the landlord but the problem is is how do you get them to apply for relief they're not doing it that the system that's put in place is not that's my that's my point yeah it's not set up my evictions in place and now they have an incentive to reply well that's why that's a good point you have maybe a 60-day uh you know kind of leeway thing there yeah give him some time frame to do it but yeah you but then they're going to assume that everybody that's getting ready to be and they can't read or write and how are they going to apply for it and blah blah blah which yeah yeah that said it is an efficient way of doing it 39 of people are paying for those agencies to do that yeah there are and i'm sorry we're turning this into a fest yeah but but that's what we want to do today i'm just about had it that's what it is out here yeah i'm i'm tired of the the partisan on both both sides i'm doing it this way because this is the way i'm going to do it instead of listening to everyone yeah coming up with a logical solution that would work for everybody yeah so back in the obama administration and i haven't told anybody this but um 2008 2007 most of you already know my story how i was out of a job at 50 years old middle management my income went down to 25 percent of what it was i had a way that hadn't worked in 13 years that needed to get a job she went to work in a factory and i was ready to lose my house i applied for the obama funds to help protect me from losing my house 50 percent of the people that went through that program never had their homes foreclosed on and what they did was they paid your mortgage if you qualified they paid your mortgage for six months to go ahead and get you out of not a problem so you get back on your feet and it worked for us and it was a great thing it was also a second lien on your property so you couldn't turn around and sell your property for a profit which was not a problem in 2000 2008 you weren't doing nobody was going to sell for a profit anyway but that said that was a very efficient program it's not the states or the federal government's program of fault that only 50 of the people that went through the program actually did not end up getting foreclosed what you're saying is the government program went and paid the states the states well or or whomever let's just say we're inside to the mortgage company directly for someone's mortgage so in that same breath you could say man wouldn't logic dictate that we pay the landlords directly yeah and they're doing it the same the same way they're giving that money to the states and block grants to set these things up but the states aren't doing it right yeah they're doing a miserable job i don't know why they did it fine with the homeowners things but they're not doing it without well i know some landlords i know some of the people were saying like you know they have to provide balance sheets profit and loss statements all this stuff like for the landlords do to apply and i'm telling you if you if you own four or five properties you don't have you don't like you probably don't even know what a balance sheet is that's exactly right that's exactly right there's a lot of them that don't well i understand why they're doing it because it's really easy to rip off the government and there's there are some stupid people that actually think they're going to get away with it yeah well they could show at least a bank statement yeah no eventually they're going to get caught as a matter of fact i saw last night where this couple built the us government for 15 million dollars in ppp funds and they were caught but recently they've removed their ankle bracelets and they ran off with two million of the ill-gotten gains and they're still looking for them so uh anyway it does happen i understand why they want all this information they want to prove that there's actually tenants in there and that they're paying yeah but i mean you got leases in place you showed somebody's address on the utility bills that's pretty simple yeah i mean they were talking about walking you know knocking door to door to make sure people are vaccinated why don't we just repurpose those people to make you know is there a tenant in there all right let's do this all right so here look at this the realtor.com the hottest zip codes that are growing we're going to talk about that so uh realtor.com released its latest hottest zip codes of 2021 with art with a hard age hottest hottest um and based on their metrics which nobody really knows what it is but no so number one is colorado springs colorado number two is west iron dig i'm a ronda court and i have never heard of that place anyway it's in new york um peabody massachusetts another well unknown place manchester new hampshire and brentwood north carolina which is so brentwood north carolina is number five and that's just outside of raleigh a little bedroom community yeah yeah so i thought that was interesting that there's some northeast you know to new york's uh well in new york and new hampshire and massachusetts is that yeah that's massachusetts and then of course colorado out west i'm really i'm surprised that they're from that area up there in the in the northeast yeah yeah pleasantly surprised well a lot of these what they're doing are the suburbs of the larger towns larger populous areas that people are trying to get away from yeah hey that's a great way to look at it bill thank you i'm really impressed that you came up with that so quickly wow [Laughter] okay it looks like it's time for enough of our breaking moves yeah yeah let's uh let's do our ugly question [Music] so now we have three and a half minutes to go over our ugly questions excellent it's been a long time on that what was it so the ugly question is how did we get in to this shortage in the first place housing shortage please see the first 20 minutes of this show well you know there you to be honest it goes back to 2007 8.
When we had the um housing crash uh guess what there wasn't a lot of houses being built no i mean yeah builders everyone walked away they you know most of them had you know filed bankruptcy so like housing starts yeah housing starts between 2009 and probably what 2016 were what half of what they are banks aren't easy to borrow from if you're a builder um no matter what size you are it's not really easy to borrow from let me back this up a little too what happened to all the people that were in the construction industry they thought of bankruptcy well they moved on to something else and it's very difficult to get skilled labor back especially when they don't have certainty that it will continue yeah so a lot of people just got out of the business all together i i l i laughed i mean it was sad but i laughed when one one of the paid technical schools right in the middle of the of the crash finally started touting their general contractor um studies yeah yeah they were a little behind yeah no kidding so that's that really is the problem you even if you wanted to ramp up you can't because you don't have the skilled labor to do it now what we've gotten is we've gone through what 10 years of them not building enough well and the thing was that went through 10 years not building enough but we had enough foreclosures and housing inventory for fix and flips and other kind of repositioning it wasn't i mean it's always been a problem it wasn't as big of a problem now that fix and flip inventory that low-hanging fruit isn't as much there anymore plus but we're all going to college now for big white-collar jobs and nobody's in the trades anymore all right so what that's everything that didn't change through that time our salaries zero what didn't change was the creation of new households yeah so while we weren't building any new homes and we were busy uh fixing up the old homes which means we're not adding anything to the uh inventory because we're not keeping up with the formation of households most people are going to be born most people yeah that's what i'm saying most people were but since 1970 our fertility rate is down like 70 some percent right as a nation i'm not sure i'm comfortable speaking talking about that we'll talk later about fertility rates we got to wrap it up though we got to move on i was asked that's probably a contributor to the fertility rate line bill talking no wrapping i was asked once what i did about birth control and i said i typically rely on my personality for that so well said my friend we got into the housing shortage it started back in 2007 2008 and we just not been able to catch up since then um here uh you know by the way brian always has great comments too number of people turning 33 has learned has been increasing year over year and will continue for the next few years average first-time homebuyer is 33.
Well said brian well it takes them till they're 33 to pay off most of the student debts and then have enough income as their income increases because unlike their they think when they get out of college they don't deserve the corner office as soon as the job it takes a while to move up the ranks yeah yeah we actually hired somebody like that that was very interesting it didn't last long so you weren't talking about me right no so you're over there um jonathan what are we doing to help with housing the shortage in new construction yeah so our biggest push is for uh affordable housing i mean we we have created i like the word mandate it goes around a lot today we've created a mandate for ourselves to create a lot of affordable housing we are doing um what i think we did a video on it before but we're finishing up a 44 townhome development in uh augusta georgia all those town homes will be priced under under a right at 180.
Price point i know right yeah to be clear we're not doing anything going we're just finishing we're lending yeah we're just laying the money so yeah we give preference to affordable housing yes because we believe that people need an affordable place to live we want people to be home owners we want people to have rentals we want everyone to be successful and affordable housing you know and bill says it well you know whether it's your first home or you're scaling down or you're an investor these affordable houses are they work for everybody yeah so that's so that one project in augusta we have another project in clemson uh we're just outside clemson we have we have a couple projects here in rock hill um and then the majority of our single-family short-term fix and flip loans the after repaired value of those are under 300 right oh yeah i mean if we took the average let me see that is uh would be 230 would be our average uh price point or value yeah and to be clear uh to help keep homes affordable i know scott's saying can they afford the house well you have to keep them uh affordable because they got to work down but um we are more than happy to take a look at um new double ads right uh that the hybrid they call them uh modular offerings what is it called cross uh modular or crosswise they still are they still have steel underneath the frame but they they bring them out and then you can add garages and stuff um while it's there so you're site building the garages and some other amenities yeah even tiny houses they look just like uh regular homes yeah well that's true and they look like and we sell modular homes we love doing rental loans we have a long term rental product for people who want to finance right uh investor rental loans but one of the things that um wendy bill and i we really believe in is like we don't want everyone or the majority of the country or whatever it is like to what's the quote rent and be happy yeah so we want we want people to own property like like having a 30-year mortgage has been one of the best drivers for building personal wealth over time generational wealth yeah and we want everyone to have that opportunity right all right well said well said so if you're looking for a loan i'm getting that in a minute we gotta wrap it up it's got someone like this all right folks thank you so much i hope that kind of gives you an idea of where the shortage has started and oh by the way it it's continued thanks to the pandemic correct because people can work remotely they're willing to move out a little bit further that said there's still plenty of people that still want to rent but they want to rent in a single family not necessarily an apartment so it's been really high demand for single-family housing in a lot of areas and further and further out from the center of town so don't forget about our show came up coming up at uh one o'clock we have our friend jake vander slice coming on he is in the self storage industry and they are just killing it so we're going to talk to him about uh is now a good time to invest in real estate and if you're interested in conventional lending brian maddox if he's still on here brian i want you to put your contact information in there because brian is a a great um source if you're interested in and do it now before the show ends so it will be on the notes yeah when it is permanently in there yeah and then also um just on go back to the rock hill sub group the next group meeting it's always the first wednesday of every month so it'll be october the 1st and we're going to be doing analyzing um a couple deals um so everyone can go in and do underwriting and due diligence alongside me and maybe a few others right and that's jonathan joe nathan jonathan at carolinahardmoney.com and great there's brian's information thank you as well in november uh we have um paul olsen coming on a guy that we've known for years and years started off in a in a neighborhood in charlotte where the homes were like seventy thousand dollars he's he's now in the middle of doing uh i think i think three town homes yeah and it's like a 1.8 million dollars i was telling bill i remember i think it was it was one of the first homes that i walked with you all when i was uh was it one of them was buying notes for me was his because he had those uh uh butcher block countertops yeah and i was like oh man that's great that's good he was one of the first that's right awesome all right thank you folks uh thanks again for joining us on the real estate investor show hard money for real estate investors we are carolina capital management and if you are interested in borrowing money tell all your friends go to and click on the apply now tab if you're a passive investor looking for passive returns then click on the accredited investor tab don't forget to like share subscribe hit the bell and again don't forget to sign up for wednesday with wendy uh the link is right there in the side and yes brian is a rock star thank you randy have a great day see you at one o'clock [Music]