Dorian Carter Joins Carolina Hard Money for Real Estate Investors
Bill Fairman (00:03):
Hi everyone. Bill Fairman with Carolina Capital Management. I’m here with my sister Wendy Sweet. And along with Jonathan Davis, the guy that actually does all the work here and has the brain. That’s right, Wendy and I just show up and smile. Most days we have a….
Wendy Sweet (00:19):
That’s where you’re supposed to say, that’s not true. That’s not true.
Jonathan Davis (00:22):
Oh, that’s not true guys. Not true at all.
Bill Fairman (00:25):
So we have a great guest today, Dorian Carter. I’ll bring him up in just a second. And he’s got very professional credentials and one that it makes me nervous is he’s actually a professional broadcaster, has his own radio show called the, Commercial Real Estate Investment. No, I’m sorry. That’s his on point partners, his firm is a Commercial Real Estate Investment Advisory and a consulting firm, but he co-hosts the Urban Real Estate Radio Show and it’s on the internet and on satellite radio. So as you can tell, we’re not a professional broadcasting team. And that introduction.
Wendy Sweet (01:05):
He had to read all that. But I get to tell you, Dorian, he’s a dear, dear friend of mine. He’s just an awesome human being, solid as a rock. He went to Africa with me. On our trip, I don’t know, it was right before Christmas. And had those kids and the teenagers following him around like a pied Piper. They just loved sitting at Dorian’s feet and listening to the wisdom that was coming out of his mouth. That was just very touching and just wonderful to experience that with him. And he’s in a King city mastermind, which is a local mastermind that we’re in that is in place to keep businesses accountable, to turn in their businesses over to God. It’s an awesome Austin mastermind. But, Dorian, welcome. We’re really glad that you’re, that you’ve agreed to come on with us and let us, you know, talk about you and what you do and how you’re changing the community.
Dorian Carter (02:08):
Well, thank you for having me and thank you for the great words Wendy. It’s always a pleasure to talk with you and I will be in your presence, i’ll be it by video, but never good to be here.
Wendy Sweet (02:22):
Well, we can’t touch in it right now cause we’re all being safe with the Corona Virus. And, and we did swab down before we got together. We really did.
Bill Fairman (02:36):
We have some old Purell packets that have been hoarded since 2007.
Wendy Sweet (02:44):
And they still work!
Bill Fairman (02:44):
We’re still damp.
Wendy Sweet (02:45):
Dorian Carter (02:47):
Bill Fairman (02:49):
But it’s hard. It’s hard to find it. By the way, I didn’t know this about you before, but I saw it in your bio that you went to Embry-Riddle. So have you fly in while you were there,
Dorian Carter (03:02):
I did. And I love Embry-Riddle one because I spent nine and a half years in the air force aircraft maintenance.
Wendy Sweet (03:13):
Thank you for your service.
Dorian Carter (03:13):
Yeah. Thank you for the acknowledgement, but I love Embry-Riddle, got some great education and supply chain management and logistics.
Wendy Sweet (03:25):
We could use you now, right?
Bill Fairman (03:30):
That’s a big business with all the eCommerce going on.
Dorian Carter (03:33):
Yeah, yeah, absolutely.
Bill Fairman (03:36):
So, tell us about what, what you’re doing.
Dorian Carter (03:40):
Yeah. Well, I’m a, I spent a number of years, since 2005 in commercial real estate after a 18 year career in I.T. And decided to shift to a commercial real estate. But I develop commercial real estate. I am a consultant on projects major development, projects across the country and I coach now I’ve added a coach as it, September of last year I’ve started coaching. So super, I’m proud to be doing that. And now with our goal of training about a thousand people. Wow. In pursuing real estate, either through who I train, but we’re going to get to a thousand one way or another either through me training folks in them training or the people. But that’s the goal. So, and I made that go big. So, hopefully the Lord to keep me over here on earth for a long time.
Wendy Sweet (04:49):
Bill Fairman (04:50):
So you’re using that NFL coaching tree model?
Dorian Carter (04:54):
Bill Fairman (04:57):
That works out great. So, I know there’s a lot of, and by the way, before I forget anybody watching, if you have any questions, you can just post it, inside. If you have any information or if you’re looking for information about us, we’re at CarolinaHardMoney.com easily get ahold of us that way.
Wendy Sweet (05:18):
But if you post a question, we can answer it now and Dorian can answer now. Yeah,
Bill Fairman (05:22):
I’m sure the questions are going to be for us. Yeah. So, post any questions you have for Dorian, live in there and we can ask him well, while we have him on.
Wendy Sweet (05:32):
That’s right. That’s right.
Bill Fairman (05:34):
Wendy Sweet (05:36):
Or you can leave a comment.
Bill Fairman (05:38):
I just love the way this technology works for stuff that shows up on the screen when I talk about…
Wendy Sweet (05:42):
Like there’s a ghost.
Bill Fairman (05:44):
There’s nobody back there doing that for us. So,
Wendy Sweet (05:50):
Yeah, be sure to like, and share and subscribe to the page, right?
Bill Fairman (05:56):
Yup. Just, I’m going to have somebody in here holding up cue cards.
Wendy Sweet (05:59):
We don’t need to, they’re right here.
Bill Fairman (06:02):
So, there’s a lot of people that have, and we’re part of that. We have just enough knowledge about the opportunities zones to be dangerous. Can you give us kind of a 30,000 foot view of what the opportunities zone is and how you can benefit from them and the community itself?
Dorian Carter (06:25):
Yeah. Well, the opportunity zone itself came from the, really the truck, tax law of 2017. And what it did is it allows States to designate certain areas, within their gear, graphical regions, that areas that, the States felt, in a particular financial bracket or a area that was struggling. It allowed the States governors to designate those areas as opportunities zones. And so what it allowed is for, increased investments in those areas, as long as the investors kept their money in the project for a specific time. And so, originally it started out at five, seven, and 10 years. And of course, one of the major kind of deadlines to have investment done was 12/31/2019. Well, subsequent rules came out and now if you, there are a lot of opportunities or things you can, no pun intended, but a lot of ways you can invest in it, move money out of it in a certain amount of time by, by doing, moving it to other investments.
Dorian Carter (07:58):
So, but the overall strategy was to improve those struggling communities by getting investment dollars into those communities. And so it’s a great opportunity. However, what we see in, in some cases is, those projects, you know, still have to be an underwritten by a bank. So, still have to make sense. What we’ve been seeing is you just couldn’t make those projects make sense. And so it doesn’t work usually on a single family housing unless the investor is going to hold single family housing for a long period of time. So it limits it to certain projects and tough neighborhoods where the reason why you’re investing is because projects, it was difficult to make the projects work. But, in some areas we see they’re very good projects. Some areas shouldn’t have been designated opportunities zones. So you see a little bit of everything there. But overall it had good intention.
Dorian Carter (09:07):
I think you’re going to see maybe, after this current crisis, some adjustments to it. So it makes better sense. I know it was some conversation, but it’s kind of quiet now based on what’s going on now. But, a very good program. I still see great opportunities and I’ll tell you where the opportunities I see it is, is in an affordable housing. That you can go in and take a piece of land that may not even be, a zone properly to rezone it to multifamily use of some kind and those types of things. I had one client without naming where it was, but regionally that decided to do, I think it was a total of 350 townhomes in a particular area where they’re going to build, build them and hold on to them. And they become rental units. So it’s not only apartments but townhomes, but they, of course, you have to hold onto it for a period of time. At least the investment has to stay in it for a period of time.
Wendy Sweet (10:17):
Right. I think what a lot of people don’t understand too is that you really have to have capital from a previous sale to invest in that opportunity zone fund to make it work in the first place. Right?
Dorian Carter (10:31):
Well, not necessarily that what we see is, is a lot of new money wanting to come in and invest, but the problem is the new money, they may have liquidated some stock or something like that and may not even have experience in housing. So who are they to even trust? You know, it’s difficult to put them in a lot of cases of trust, you know, just putting their money into a project without having a relationship with someone that knows how to do it. Right. So you have scared money, in other words, plenty of money out there, but it scared money. So,
Wendy Sweet (11:08):
So, so Dorian, what got you into the commercial end to begin with? I mean, after coming out of I.T., What is it that attracted you into the commercial side?
Dorian Carter (11:17):
Well, I was, at the time, I was, after getting out of the military, I decided I wanted a four year degree. And I was an Economics Major. And so, at the time I was in investing in residential real estate. So, I employed a buy and hold strategy starting in 99 where I buy rehab, hold on to it. The problem is it got me into thinking why do certain neighborhoods not have certain commercial real estate in it? And I didn’t understand. So I decided to take it as an elective and the rest was history. I ended up changing my major in the business school to real estate. And then economics became my elective classes and it just opened my eyes up to all the various opportunities around, wealth and wealth building in commercial real estate.
Wendy Sweet (12:11):
Awesome. Now are you more involved in, multifamily type commercial? Are you doing storage facilities, strip centers, anything like that would tell us what your preferred type of commercial is and why?
Dorian Carter (12:28):
Yeah, my preferred type is, two areas now, small medical. And the other is last mile industrial or industrial related to what Amazon is doing. Just the need of people needing goods, expediently to their location. So last mile, meaning that last delivery point from the Amazon. Amazon warehouse, they don’t necessarily store everything. It’s a lot of things needed that Amazon don’t do like refrigeration and those types of things that we’re seeing a huge growth there and even more so now it’s important. We can’t, I’m sure they can’t even handle it right now. Yep. So those things as well as medical, the smaller medical round, urgent care and those things, particularly have a focus around one because there there’s a need to move, you know, some of where more patients, 10 now are looking at cheaper ways to do it rather than the hospital and urgent cares absolutely a way to save money for the average person when it comes to medical now.
Wendy Sweet (13:46):
Right, they’re more of a single used tenant though, right?
Dorian Carter (13:49):
Yeah. Most of the time they are single tenant, a single use tenant, a set for the industrial. They can be a multiple use, but a medical tends to be a single tenant. But the thing about it is you never see a medical center of any kind of shutting down because it’s just not, it’s just not going to happen. This is a convenience to the public as well, so.
Wendy Sweet (14:14):
Right, right. And then you’re, you’re a last mile Amazon. I mean, being in this area, the Charlotte market, we’ve got such a great logistics community here, right? With the airport and the train station and the port of Charleston being so close.
Dorian Carter (14:30):
Yeah. And I had some conversations even this morning with local government, economic development. And it’s a huge amount of demand for industrial space right now here in Charlotte. Even larger companies aren’t able to find space. One because industrial tends to be a, or the requirement around it is that it would be much cheaper. But where you having such a great market here and here in Charlotte, in the region, that that land is being taken up by other uses, whether it’s apartment, you know, a well located retail. So it’s pretty difficult now. And an industrial sector in there.
Jonathan Davis (15:15):
Bill Fairman (15:16):
Well I do see a little bit of opportunity with what’s going on now with some of the retail space being redeveloped into more industrial warehouse in certain areas. You know, you’re going to always have markets that are going to be geared towards, the retail cause it’s just well located in the highly traveled areas that you’re not bringing trucks and stuff into. But there’s also strip shopping centers and you know, your big box stores that might be located out a little bit and you’d still be able to pick that land up kinda cheap. And then maybe do a little bit of redevelopment to get it into. Now I know they need typically larger scale. They need taller buildings. So, higher ceilings. Yeah, pretty much. Cause you need to be able to stack that stuff pretty high, I’m assuming now.
Dorian Carter (16:12):
And it depends on, there are certainly uses that, that need the height. Tell you Bill, you hit on a good area there, which is a repurpose in that retail space. And to sell storage, those types of things are hot opportunities. And I would say, since I do have a extensive background in retail, I would, any products that included in adaptive reuse, which that would be a transforming that into a sales store to something I would be absolutely interested in one because that space, you, you hit on a good point. You can do many things with that. Not just a self storage.
Wendy Sweet (17:00):
Well, you know, there’s that Kmart on Cherry Road in Rock Hill.
Dorian Carter (17:04):
Stop telling secrets, stop telling secrets.
Wendy Sweet (17:10):
That’d make a great self storage.
Dorian Carter (17:14):
Let’s do that then. I’ll look into it.
Wendy Sweet (17:18):
No, it’s not a good spot. You don’t want it.
Bill Fairman (17:24):
Well, I know a couple of blocks from here. There’s a big section of Rock Hill. It was designated an opportunities zone. And so, they just announced that there’s a $44 million development in that space. And they’re doing retail, they’re doing restaurant, they’re doing multifamily. So, they’re doing a whole mixed use complex inside of that. So they’re going to be hanging on to that. And leasing them out and keeping them for awhile. And here’s a little bit of a lesson about municipalities staying out of the real estate business. There was about three and a half acres that the city of, no, I’m sorry, the County here purchased in 2009 I believe it was. So they took it off the tax rolls and they just sold it to the same people that are developing it. And they made a whopping $600,000 profit from when they bought it in 2009.
Wendy Sweet (18:28):
Wow. I think that’s pretty good. Yeah.
Bill Fairman (18:31):
Wendy Sweet (18:31):
New Speaker (18:33):
From 09 to 2019? 10 years worth of appreciation and not on the tax rolls.
Dorian Carter (18:42):
Yeah. Yeah. That’s, uh, yeah. And that, that’s another thing too where, where I come in and the reason why I do, have extensive background with working with governments just because of that, you know, you need a, a solution where, for profits can step in and not only give wise counsil but help industry and making better decisions where the government does have a poor place and that’s to facilitate, facilitate, in my opinion, the connections. Cannot stay out. So because we want to make the best use of our tax dollars. Right.
Bill Fairman (19:26):
And it makes sure that they stay up with the infrastructure and provide the platform for the development, not be part of the development.
Dorian Carter (19:35):
Bill Fairman (19:37):
You know, Charlotte made that same mistake with the Eastland Mall property. You know, they, they purchased it for a lot and then they ended up just knocking it.
Wendy Sweet (19:48):
Giving it away. Yeah.
Bill Fairman (19:48):
It usually is never a good, good thing when they’re buying the property for future development for themselves.
Wendy Sweet (19:58):
Right. So Dorian, can anybody get into this? You know, it just seems like such a big business to touch. Can, can anybody get into commercial real estate?
Dorian Carter (20:08):
Yeah. The key is, and I put my link there. I coached folks in this, and the key to this is three things. And it’s like, no, it’s no different than any other real estate you get into. And the first one is, You establish a team. Clearly in commercial real estate, you don’t go out as you can do in a residential and, and buy a house and invest by yourself. Commercial is all first about building a team and you leverage those team members, whether they’re attorneys, brokers to be a part of your team, to give you that advice. That’s the first most critical thing. And it’s about teaming. And so you bring in investors together. I equate it to being a project manager where you’re responsible for everything that goes on in that investment. The second one is to start small. There’s no way better way to learn because the fundamentals are the same. Whether you’re doing a $100 million project, $10 million project, or a $1 million project or, or small, just as you would in anything that you do. Do that first project and then it’ll try everything else, including investors.
Wendy Sweet (21:35):
Dorian Carter (21:38):
And the last thing is mentorship. Far too many people as I did. So I’m not just saying it, I spent a lot of years in this before I decided to get out and start doing it by taking it, taking advantage of the things that I knew I could have did a years ago to move forward. But mentorship is so important and it keeps you on track and accountable.
Jonathan Davis (22:03):
Yeah. We all need, so, people, Well, you know, for sounding boards. Yeah. So that’s, that’s a great idea. Or that’s just stupid.
Wendy Sweet (22:10):
That’s just, we’ve got a lot of people that’ll tell us things and I’ll say, that’s a stupidest idea I’ve ever heard and we, we appreciate it when they tell us that keeps us from making mistakes. But it’s funny, the person that we’ve interviewed previously said the same thing, that it’s all about community. I’m having a brain trust networking, you know, making sure you have the right people around you. You know, he said too, that he wished that he had not, done everything on his own, that he probably put his learning curve about three years longer because he tried to do it on his own instead of getting into a community or getting a mentor or a coach or somebody that could have really helped him get down that path.
Dorian Carter (22:52):
Yeah, I agree. I did the very same, same thing. Didn’t approach it that way. But then, now great. Got great mentors on all sides.
Wendy Sweet (23:04):
Bill Fairman (23:05):
So you have an event coming up soon?
Dorian Carter (23:08):
Yeah. On June 5th is a event called Leverage Your Investment and to really leverage your investment into commercial real estate. And a CLT is for Charlotte, but it’s on June 5th, and it’s at the crown Plaza, here in Charlotte, off of a Taboola road. We’re gonna have, various speakers talking about not only a CRA, the Community Reinvestment Act. Talking about 1031 is how to leverage a, or have 1031s work when it concerns a real estate, no different than, in commercial. Some personal finance will be talking about opportunities zones and, also we’re going to be talking a lot about taxes and how it impacts commercial real estate. And so, yeah,
Wendy Sweet (24:12):
That’s awesome. Now, is it just one day or three days? How long is that?
Dorian Carter (24:18):
Yes, it’s a one day event. We meant for it to be a one day event. A couple of different sessions you can choose. And this is meant to grow, but we’re going to start off with a very intense one day event from eight o’clock to five o’clock.
Wendy Sweet (24:37):
That’s, that’s awesome. And we did put up the link that shows how they can find more out about that.
Jonathan Davis (24:44):
The tax, cause there’s, you know, we talked about this. Yeah. Not how much you make. It’s what you keep. That’s right. Taxes or understanding. That is a great way to understand the, to keeping what you make.
Wendy Sweet (24:54):
Yeah. Yeah, that’s for sure.
Bill Fairman (24:55):
Wendy and I would love to attend. Unfortunately, we’re going to be in Boston that particular week.
Wendy Sweet (25:05):
Yeah, that’s right. We are. That’s right.
Bill Fairman (25:07):
At a mastermind that we go to three times a year.
Wendy Sweet (25:12):
Now you do it. You’re, you’re doing a group too. Is that every week that you’re doing a breakfast meeting? Is it every other week? When are you doing that?
Dorian Carter (25:19):
Yeah, I, every, this Tuesday coming up, of course it’ll be virtual this week, but it’s every second and fourth Tuesday of the month at Carolina Prime here in Charlotte, North Carolina. And so, it’s on Woodlawn, but we do a 7:00 AM breakfast where we bring in speakers on various topics. So yes, we would love to have folks to sign up. The only cost is to buy breakfast. So bring someone.
Wendy Sweet (25:57):
That’s a deal. And they can find out about that with going on that WorkWithDorian.com. Okay.
Dorian Carter (26:06):
Yes. You’ll see it there. A better, better place to go to find out about that event is the real estate wealth generator. So that has all of my events on it, but in particular this event, but it’ll be online this time. So, anywhere you go, you’ll find the link. I’m a be broadcasting it, starting in the morning very heavily, the zoom link. So we’re going to be virtual this time around and probably for the next a few weeks.
Wendy Sweet (26:42):
Yeah, I’m having to do the same thing with the Sunrisers Group. And actually I’m kind of excited about it because now I’ve got people all over the country that can come because when I speak all over the country, I tell them about it and they’ll say, Oh, I wish I had a group like that here and yeah, and now they can do it. So I’m going to continue to do the live streaming. We’re, you know, we’ll start meeting in the restaurant when, you know, they release us to do so. But, I’m kind of excited that, that, that this is kind of forced us into doing some more live streaming and virtual meetings.
Bill Fairman (27:17):
I’m looking for the smell of vision technology. So, at least we can throw out the smell of breakfast while were broadcasting.
Wendy Sweet (27:24):
Breakfast that we’re smelling. He is my brother. I was thinking a little lower, but that’s all right. Yeah.
Bill Fairman (27:42):
Dorian we appreciate you spending this time with us today.
Jonathan Davis (27:46):
New Speaker (27:50):
I’m going to, Scott, if you don’t mind putting up the, Everbrite link up there for the, for the event coming up in June and, I know it’ll be a good one. Uh, I love the commercial real estate space. Before I let you go. Do you see too many people, investing in commercial real estate in an IRA since there’s so many tax advantages of having it have in catch?
Dorian Carter (28:16):
Absolutely. People invest. And IRA is, here’s where you’re going to see a big increase. One because I think the knowledge is starting to get out there about commercial real estate. Most of the time folks have been kinda utilizing IRAs to focus on their invest, their portfolios for residential. But there, there is a significant amount of investment, passive investment that goes into commercial real estate from a self directed IRAs. And the other big portion is 1031s, but you’re going to see an increase in it because now, just in the past few weeks, I talked to a few people yesterday that took a significant hit to their 401K. So they’re looking out and take some money and, and invest in real estate.
Wendy Sweet (29:12):
That’s right. And our [inaudible] yeah, a lot of that. That’s what…
Bill Fairman (29:19):
I always, I tell people if they’re investing with a, a tax deferred or a tax exempt account to do it in something that’s not going to provide a tax benefit and then to use your cash in the spaces that already allow for depreciation and other benefits. But there’s nothing with having a real estate, owning real estate in your IRA inside of that. Right. You’re trying to get people to keep as much of their money as possible.
Dorian Carter (29:53):
Yeah, yeah, absolutely. And so what, that’s exactly what you said. A lot of folks, they definitely have the cash and sure keep it and utilize those things that they have other investments where they can move it and, and then go back and, and so that ends up building their retirement long term. As well. So they never see it, never touch it, other than the statements to see what’s going on. So. Absolutely
Wendy Sweet (30:23):
Bill Fairman (30:23):
Excellent. Well, listen. Again, thank you so much for your time and, I know you’re going to have a great event. Like I said, I wish, I wish we could attend, but we’re gonna be out of town at that time, but hopefully it will. Yeah, yeah. Dorian, thanks.
Dorian Carter (30:46):
Thanks for having me. All right, you too Bill.
Bill Fairman (30:48):
All right. Again, if you have any questions, you want to get some information for us. It’s CarolinaHardMoney.com and then if you want to check out Dorian’s site, he’s got the, DorianCarter.com. WorkWithDorian.com and then I don’t know what the generator, yeah. Excellent. All right, so we’ll see. You guys next time. Thanks. Thanks. Take care.