Friday, March 20, 2020

Jim Rachor, Carolina Capital Management Fund Investor #32

Jim Rachor, one of Carolina Capital Management's investors, joins Wendy Sweet and Bill Fairman. Jim is a dentist who has been investing for three year plus years in the fund.

He met his wife when he was 10 years old. They did not date until they were in college.

"Life is too short to sit around and do nothing" ~ Jim Rachor

He and his wife adopted children from Guatemala. They made 8 or 9 trips there. Now they take 130 people to Guatemala each summer to do mission work. www.TransformingFutures.org

They feed 500 children a day.

He knew after meeting Wendy and Bill that he could trust with his investment money.

Jim will never leave the fund.

Jim speaks at a mentorship program at his local dentist school. Most students are 300k in debt and do not know how to handle their money.

Real estate is a hedge against itself. Over time, real estate will appreciate 3% a year over 30 years in most US markets.

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 (00:04):
Hi everyone. Bill Fairman with Carolina capital
management. I'm here with my lovely sister, Wendy Sweet and the guy that does
all the work around here, Jonathan Davis, all the brain lifting, right? So
before we get too far into this, please like us, please share us, tell all your
friends, you can reach us at carolinahardmoney.com. Just wanted to make sure
that I was right on that. I didn't take it away from him. He took it away from
me. That's all right. And we talk a lot about investment. So it's very
important that we do our disclaimer. We are not trying to sell any kind of
stock or security. This is educational purposes only. There is risk with any
investment. So make sure you read the PPM and consult your financial advisor
before you invest in any type of investment. And by the way, your mileage may
vary. That's right. Right. That's right. So anyway, folks, welcome to the show.
We have a great guest with us today. He's actually one of our investors. Jim is
a dentist up in Michigan, currently in the warm part of Michigan where it only
snowed today. Right Jim, welcome to our show is Jim Rachor, by the way. Thank
you. Thank you. We've known Jim through a mastermind, Dr. David Phelps, puts
his own it's called freedom founders and we've known him and his wife for a few
years now. What sort of three or four?
Jim Rachor (01:47):
Uh, three years now. Three years maybe going on four
coming up in the summer, I think. Excellent. Awesome.
Bill Fairman (01:56):
Give me a little background Jim. Were you born and raised
in that same area?
Jim Rachor (02:01):
Yeah, so I was, I was born and raised here in mid
Michigan, a little town called grand Blanc, big white, they used to call it
back in the days and the French French founded it, but it's a nice community.
Used to be a famous golf tournament there. People know about Warwick Hills. I
used to live, I live right there on the golf course, so got to meet a lot of
cool people back in the day and then grew up there. My wife, I met when I was
10 and she was two streets over from me and I used to love her dad because her
dad owned about a hundred Arby's. Arby's. Yeah. So he who's one of the guys
involved with the beef and cheddar and the Jamoca shape, just FYI. So I've
known her my whole life. We didn't date till we got to college. So long story
short, I went to the local high school, she went to private high school and
then we ended up, when I was in dental school at Michigan, she was a nursing
school and she moved in and our apartment doors hit. I grew up in Michigan and
I went to Michigan state. My major was in economics. I graduate out of dental
school a year early or applied to the university of Michigan year early and got
in year early. So, uh, I thought that was smart idea. My idea was to defer that
and go skiing for a year. My dad said, no, you're not doing that.
Jim Rachor (03:36):
Well, I was one of the youngest people in my class that
was good and bad at the time, but I was up kind of a person that is going to
grow over and beyond to learn what I want to learn and didn't waste a lot of
time on the minutiae. So there's a lot of that in school. I thought I also grew
up, my dad was as a financial advisor, so yeah, so he was, he was in stocks and
bonds and private money managers in New York and around the country. Got to
learn a lot about that side of investing, especially when I got out of school
and knew that I had, I had the capital I needed to do something with and so
that was kind of where I got to be. You know, David Phelps and feeder farmers
as well. But my wife and I are Christians and we also can be determined that
life is too short to just sit around and do things for yourself.
Jim Rachor (04:30):
And we, we just got this, the Holy spirit gave us, gave us
the canvas, this bog that we needed to adopt. I grew up with nine adoptive
cousins. So it was normal for me to have people in our family that were, you
know, by biological I'll say. Right. But that journey took us, you know, to
Vietnam and where and this and that other place that would adopt to us was
Guatemala cause we already had five children. China and Guatemala would adopt
and we just prayed about it and we decided we should adopt from Guatemala. We
adopt our first daughter that we were going to adopt. There were some problems,
which meant that they didn't know where the mom was. It halted the process.
Long story short, we ended up adopting another, a daughter named hope because
they said we'd never get Amelia, which was the first girl.
Jim Rachor (05:29):
And we spent probably seven to eight years trying to get
Amelia back and forth, corrupt, corrupt lawyers, corruption, wondering why God
had us there. Should we just forget about her, blah blah blah. And in doing
those eight or nine trips to Guatemala, we had people that wanted to go with us
and wait. And that's what birthed our mission trips that we do every summer. We
take about a hundred and 130 people every summer to Guatemala on mission trips.
And then that's birthed into a feeding center and an orphanage and a mentoring
program. All of which came from a door that I think, God, I thought it was
closed to this one little girl that took this long to adopt. She's doing great
now by the way. Wow. Is, is now become, you know, and also part of our family
and also story and pretty much the beginning of all of our mission work in
Guatemala and truth be told my first time in Guatemala, I wanted to get out and
never, never go back.
Jim Rachor (06:31):
It's just how things work out that way. That wasn't what
God's plan was. So that's my background, my life in the finance world. For me,
when I met Bill and Wendy, I knew for a fact after talking to them I could
trust them. We had the same faith. And the one thing I think about is who do I
know I can trust? That's what I'm going to, I'm going to invest with. And so
anybody who has any capital at all, you've got to do something with it. You
can't just keep it in the bank. You'll lose money in the bank. Obviously.
Insulation, insulation in taxes and what have you. My dad's side of that, back
in the heyday of the 80's and 70's, 80's, 90's insider trading that they could
do was legal. They set the mine manager into Motorola for instance, or I mean I
could, you know, corrections court was a great, was a big huge stock back in
the day.
Jim Rachor (07:26):
Messa airlines. We knew it was ahead of time what was
going to happen and so it was really, it wasn't really the investing. It was
you got the inside information, you made a lot of money back in the day it was
legal and you could do this with, you did it. You send people to the company
and you got some people on board onsite to do their due diligence. You could make
an educated guess to make a lot of money in the stock market. Those days are
gone, which, which kind of sent me along to David Phelps of freedom founders
and the cash flow method, buying, buying things low and making money on the
bar, you could still do in real estate. Right. And so we tried to be to that.
So now I started to, with an impending correction coming and the casino. And I
think that wall street is now because of all sorts of different things that I
know about blockchain and what have you.
Jim Rachor (08:19):
And you know, Ray Dalios metrics on how to pick stocks. I
don't feel like that's a place we should have our money right now. And so
that's kinda where I, I met with you guys and I, I'm in your phone. love the
fund. I would say I actually like it was back in the day in the stock market,
you could talk to people and like, I can talk to you guys. And the good and the
bad, it feels like even things that were a little bit tricky and in years past
we could count on you to, to have our back. And you don't really find that
anywhere really awesome. Especially on Washington kind of words. We appreciate
that. I really appreciate that. Yeah. So I'll be a lifetimer because when I saw
what you would do for your investors, nobody else would really do that.
Wendy Sweet (09:03):
Awesome. Thank you. Wow, that's so nice. And that was
completely, we didn't ask for that. And we're not paying them to say these
things. Right. Although we are paying him, but it's coming from the fund.
Jim Rachor (09:16):
Well, I'll say, I have a mentorship program that I and I
speak on at the dental school and it's amazing how sad it is of the new
graduates coming out of, I'll just say out of the university of Michigan, you
know, dental school with 65% of them have over $300,000 in debt. How did they
do that? How did they do that? And they don't know what to do with their money.
And out of the 40 presenters, I was the only dentist. The rest were financial
people, you know, Merrill Lynch insurance when have you, and so your model that
you guys have here and even in our meetings where we can chit chat, break
things down, talk, talk about [inaudible] in a way that makes sense to people
like us. You know, it's, it's really a breath of fresh air. And I, I'm finding
that there's a niche out there even for young professionals that just don't
have any idea what to do once, once they get out. But now they're getting out
with so much debt. It's, it's even like, that's something, you know, I think
real estate is, well you always say bill, there's so many different ways to do
real estate, you know? Right. So that's my 2 cents or whatever. Maybe too much
you want to hear about.
Wendy Sweet (10:27):
No, I love it. Well,
Bill Fairman (10:28):
the analogy I like, I always like to use with real estate
is it's a hedge against itself. You can make money like say if you're in a
stock where you buy low and sell high. Same thing with real estate. You can get
it at a good price and sell it at a profit if that doesn't happen because it
doesn't happen all the time. Markets don't always go up. Sometimes they go
down. But for the, you know, the long haul real estate is going to appreciate
in most markets, and again, every market's a little different about three,
three and a half percent a year over a 30 year period. It's not always going to
go up in a straight line. But if they do go down like what happened in the 08,
07 and 08 Santa things, when the values just limited, we love to say this, the
house doesn't care how much it's worth as long as it's making money.
Bill Fairman (11:24):
So now consider this. You have a stock that has an upside
and when it's going down, it pays you a dividend. So if you can turn that asset
into an income producing asset, it doesn't matter if the value doesn't go up
because you're producing a cashflow at the same time. So it's a hedge against itself.
Now, I am very curious as to why you got a degree in economics. I'm asuming, it
was because of your dad's background and then did you just decide that, what
made you decide to go into dentistry after you got a degree in economics?
Jim Rachor (12:02):
Well, my mother, my dad was a CPA and a financial advisor.
My mother was a dental hygienist and my dad worked every day. He worked every
day and never had a day off. And I didn't want to do, do that job. But also
back in the day I learned that if you really buckled down, if you get into
dental school a year, a year early. So I did all my pre dental stuff ahead of
time, some of the summer and, but I did not want to be a biologist or chemist
if I didn't get into dental school. So, well I thought, I know I could, I could
go on and come alongside my father. I could, I could, I would probably would
have wanted it to be a money manager. I had an N in New York where I could work
with a firm out there that actually, ironically David Phelp's wife was involved
with as well.
Jim Rachor (12:44):
So just a lot of neat stuff. So that was kind of why it
went into, I unliked it better and I had all my tough done for, you know,
dental school. Then I really kind of worked on trying to get it in early. I
applied to 10 schools at the time. University of Michigan was number one in the
world. It's usually number one, usually North Carolina and Michigan or Harvard.
They just keep switching around. And so I got into there and I was like, man, I
better go. It made financial sense to go cause I was saving a year worth of
tuition. But truth be told, my father paid for my, all my education through
his, his mastery of the stock market and my sister, my sister is also a
dentist. Any nurse anesthetist. Wow. So very highly educated sister. And so
that was, that was kind of what I was brought up with all that stuff.
Jim Rachor (13:35):
Excellent. It's fun. You know, IRAs, but you know, like
you were saying, you were saying build it. There was no real tax hedge. There
really wasn't a tax hedge. I didn't see,
Jim Rachor (13:47):
In stock market as you see with you know, real estate. And
I couldn't really tell you what I had my stock if I haven't got a mutual fund,
what was I really invested in? I don't know. You don't really know what you're
invested in and things changed too. Like for instance, with the stretch IRA
recently, a lot of my dad's estate planning hedge on and of course, you know
Eddie speed and Martha's speed and their, and their deal is to stretch that out
to the grandkids. Now that's gone. You know, the 10, 10 year deal now all
happened in two weeks, the last week of just December. Wow. Okay. Has a lot
more control over the market than they do over, let's say a little, you know,
better, community, you know, of a cashflowing, you know, rentals. So anyway,
so, so I think that might answer your question, but that's kind of how I went
from economics to, you know, Dental school.
Bill Fairman (14:40):
Well, I'm assuming as you're mentoring these, uh, young
folks that are getting ready to graduate, the first thing you tell them is you
got to get that debt paid off to saving money and it's not doing you any good.
You've got all this debt hanging, right? The first thing they need to do is get
that money machine cranked up inside that dental practice. Try not to put
yourself in more debt by opening up your own, or are you talking to them about
becoming associates first and uh, make money that way? Right.
Jim Rachor (15:06):
That's a great question because 25% of that class will go
into corporate dentistry every year. It drops by 7% who will go in to be a
entrepreneurial private dentist that can own the real estate. And so the, the
dilemma for them is do you want to be a W2 earner the rest of your life and
have zero say in what you can possibly run through your gray area practice
expense sheet, every CE class, your cell phone, you know, so there is, there
might not be a great, a great idea to not come in and alongside maybe a mentor
dentists like David, his book, the apprentice model. I would agree with him.
Find the dentist that you've noticed that's doing it right, coming in and
associate with that person. Learn how they do it and then maybe buy in, have an
equity share into that practice and then start running some PR, some of your
expenses through all the while.
Jim Rachor (16:06):
I think you could pay off your pay off your debt. You can
go corporate, you're W2 earner, you're working like a dog. You have nothing to
say at the end of five years and cause, cause truthfully these Dentists get out
of school and they have to service their debt. They have to get life insurance,
disability insurance, car insurance, a car, maybe place to live, not have a
roommate, maybe they're married. And if they got it in, we don't have kids. So
it just keeps becoming this golden life cuffs, I call them the handcuffs of
life that you are you ever, you can never get out from underneath them unless
you can create some passive income. You know some Robert Allen, you know,
multiple streams of income. Well you don't, you, it isn't just your hands. So I
would always flip it. I kind of do a, David Horn says, what you always say to
bill is maybe get a rental property and have that rental property pay off your,
your student loan.
Jim Rachor (17:00):
Well maybe not that in essence in a buy your car. So
that's why I tell them, I tell my kids, you know, if you want to buy a, you
want a new car every year, why don't you buy a rental? And technically that
would be your car, your car loan payment or, exactly. So that's what I'm seeing
more learning from you guys is real estate is so much more than just real
estate. And the normal person out there doing it on their own and not using
like a service like you guys provide is not really real estate. It's like
they're just throwing darts at a wall, you know, they're trying to find some
house and do it themselves. You can't do that. Right? So I think you might
have, you guys have for us is amazing. It's safe and it's actually kind of fun.
You can diversify over several markets in a great market right now with you
guys. So to me it's a, it's a no brainer and it's just like, like us at dental
school, you're not going to go do your own fillings. I've held that
Wendy Sweet (18:01):
he can, he's talented.
Bill Fairman (18:04):
I'm not that much of a micromanager that I'd do it myself.
Wendy Sweet (18:11):
He'd forget what he was doing. He's one of those squirrel
guys. Squirrel.
Bill Fairman (18:17):
So, um, I would like to get in a little bit more of your
mission work, if you don't mind. How can other people get involved?
Jim Rachor (18:29):
Yup. So you can always, you know, email me, I can, I can
put that in, in, in the notes if you want. Or you have my email, right? We also
have a couple of, a channel charitable foundation called
transformingfutures.org and we have five board members that are some amazing
people that that got me, other people that have done some amazing things in the
business world and, I won't mention what they've done, but they've done quite
well that are able to organize this really cool process where we have a feeding
center. Let's say in Guatemala we fought, we feed 500 kids a day. Wow. And to
me that's the greatest thing that I, if I don't do anything all day to day, if
I can, you know, pay my whatever the, you know, it's not that much money
really. And so anyway, so that's something that we do and it's called
transformingfutures.org we also partner with a company called
foreverchangeinternational.org and that's where the orphanage is.
Jim Rachor (19:33):
But we kind of marry those two, those two entities and
pretty much he contact me. You can come out on a trip. We like you, we're also
organizing a short trips where you can come and see what we're doing. Like a
weekend, maybe a four day weekend trip where we have a meeting, uh, this Sunday
about that our Guatemala organizers in town this week for a big fundraiser. And
so what I like about it is it's, it's grassroots. There's really, almost all of
the money is going just to feeding people and a little bit goes to servicing
some of the people we have working in Guatemala and mostly just to try to
create, you know, meals that are going to be nutritious but yet cost-effective,
right? Trying to teach them English because English gives them a better job
trying to keep them safe when they come out of their orphanages or mentorship
programs, teaching them job skills.
Jim Rachor (20:22):
And the one question people ask is, why don't we do that
here in the U S well, we actually do. We have, uh, we have, uh, a homeless
clinic in Flint, Michigan, North of us that we do service as well. And that is
cool too. I mean it's sad but it's cool. Would be able to kind of love on those
people. And quite truthfully the homeless population here, about one third of
them maybe are one third are have some drug drug users but about one third are
just down and out and the way they've come to that part in life and they have
an almost anybody.
Bill Fairman (20:57):
Yeah. Yeah.
Jim Rachor (20:59):
So anyway, that's kind of the way it probably contacted me
by email or those organizations is probably the way that I recommend that.
Awesome. Thank you for asking though.
Bill Fairman (21:08):
Sure. Well I will have those listed in the, in the show
notes and then on the YouTube channel we'll have links to those. It's great
work that you do. And you know, I'm always charity wise, I've always just given
many. Up until recently I was able to go to Mexico to help build a house and it
was amazing to me because I hadn't been exposed to, Oh, that kind of poverty
before anytime I'd gone out of the country it was always to a resort and I was,
I either got there on a boat or I got there on a plane. So I never got to see
it firsthand. And it really is life changing when you get, and when you, when
you get home and you're, you know, you have these first world problems, they're
not really problems anymore. They are just annoyances. And I'm going to give
you a quick example.
Bill Fairman (22:04):
And this happened to me a few days ago. I went to a stop
by this convenience store on the way to the gym because I had just enough time,
I needed to get a sports drink before I got into the gym. I had just enough
time to get there. And as I getting out of my car, I'm looking into the window
of this convenience store and I see the, the cashier with her hands on her
head, like, Oh my gosh, what did I do? And the lady in front of her was shaking
her head and I went, Oh great, now I'm going to be stuck in this line because
you know, blah blah blah. I'm not going to, it's going to take me all this
extra time. That's the first thing in my head. This is going to inconvenience
me another 15 seconds. So I go to get my drink, I'm standing in line and then,
you know, I walk up to her when it was my turn and I said, how's it going? And
she said, well, I've had better days accidentally turned on the wrong gas pump
and I had to give this lady at my last $10 and I just, my head just kind of
went down and I'm going, I was worried about this extra five minutes. I'm standing
here in line. And I said, well, I hope your day gets better. And I sat in my
car and I went, all right, grab my wallet. That was God talking.
Bill Fairman (23:23):
Took two fives out of my wallet. I walked right back in. I
set it on the counter in front of all the people that were lined up and I went,
look what I found in the parking lot. Somebody must've lost this and I'm sure
it's going to go to the right person. And she was, Joel just dropped down and
that made me feel, it made me feel so much, but I'm sure it helped her. But
those kind of things when you see this firsthand and other countries, it just
changes your whole life perspective. So anyway,
Wendy Sweet (23:52):
I just got back from Africa, we're doing some work in
Africa for an orphanage and a hostel that we're building there. And when I got
back this last time, just getting in the shower, I thought, wow, I have a
shower to get into. And then I turned on the water and I thought there was
water coming out of the faucet. And then I thought, and it's warm. It was, you
don't, you don't think about, you know, those little things that are just so
taken for granted. You know, for us that there are people even in this country
that don't have the ability to do things like that. And I think it's important
that we all, you know, just keep that at the forefront of our minds in what
we're doing or how, you know, how truly blessed and rich we are. Even the, even
the poorest of poor in our country are still still have more than than people.
A lot of, some of the other countries that are there but very true,
Jim Rachor (24:49):
well well they say if you have a house and two cars during
the top 5% of the world in wealth and I feel like we need to be aware of that.
I don't, for me when I'm in Guatemala, one thing that struck me last time I was
there was the feeding center we have is next to the next one to be Guatemala
dump. You might've heard about it famous, but there'll be kids that, there'll be
like a eight year old bringing in, bringing in a three year old. And when you
clean their plates up, when they're leaving there never is there anything left
on any plate. Nothing. Not even. I mean, if they are as clean as you could
clean them. And I think about when I get back here to the U S I for me, my
thing was I went to subway and a lady was complaining about an up enough black
olive was on her sandwich and then, you know, there wasn't, this wasn't a
chicken soup and I was just like, Oh my land. You know, my mind just went back
to the, you know, they didn't even get a chance to choose what they're going to
have is right. Here's what we're having today, here's your meal. So I
definitely see what you're saying. Yeah.
Bill Fairman (26:01):
Well it's awesome what you guys are doing now. Did you
have any questions or comments you'd like, because we've been, we've been kind
of quiet over here. It's hard for him to, it's hard for either one of us to get
in a word in edgeways. I feel really sorry for Jonathan.
Jonathan Davis (26:20):
No, no, I'm good. I'm enjoying listening to the stories
and very inspirational and I appreciate them. It is
Bill Fairman (26:26):
excellent. Well, Jim, thank you so much for taking the
time. I know you've got the patients probably lined up going [inaudible]
supposed to be yanking one of my feet. That's all right. Take your time.
Jim Rachor (26:40):
That's okay. I'll hide it in here. [inaudible] nobody will
find me in here. I just want to, I want to just lastly, just thank you guys for
helping me out in my, uh, my freedom path to financial freedom. You're
instrumental in doing that and I appreciate your integrity and your loyalty and
your honesty and your knowledge and what you're doing in your mission life and
your faith life. Uh, it's, uh, it's something cool to watch and I appreciate
you guys. So thank you for, I mean, I'm already even beyond on with you guys,
so it's my honor to be here. So thank you.
Bill Fairman (27:12):
Thank you so much. We feel the same about you and I'm sure
I'm going to be seeing you in a couple of weeks here pretty soon. Yup. Safe
trip, a great seeing you. Enjoy the snow. Oh no. Have a wonderful day. Thank
you. So, you're welcome. Folks thank you so much for joining us. Don't forget
to again, the like and share. Yeah, we're working. Can you find this Wendy or
is that, we can be found on Carolinahardmoney.com. Yup. And we'll have Jim's
information up as well. Absolutely. And we have some archive videos if you'd
like to jump on some of those and they will be either up there or over here or
down there. You'll see them pop up at the end of the, yeah. So, uh, everyone
have a great day till we see you on the next show.

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