Jim Rachor, Carolina Capital Management Fund Investor #32

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Jim Rachor, Carolina Capital Management Fund Investor #32

Bill Fairman (00:04):

Hi everyone! Bill Fairman with Carolina Capital Management. I am here with my lovely sister, Wendy Sweet and the guy that does all the work around here, Jonathan Davis.

Wendy Sweet (00:16):

All the brain lifting, right?

Bill Fairman (00:17):

So, before we get too far into this.

Wendy Sweet (00:20):

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 did not take it away from him. He took it away from me.

Bill Fairman (00:37):

That is all right. And we talk a lot about investment. So, it is 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.

Wendy Sweet (01:03):

That is right.

Bill Fairman (01:04):

So anyway, folks, welcome to the show. We have a great guest with us today. He is 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. Jim Rachor by the way.

Jim Rachor (01:32):

Thank you.

Bill Fairman (01:33):

We have known Jim through a mastermind, Dr. David Phelps, puts his own it is called freedom founders and we have known him and his wife for a few years now. What sort of three or four?

Jim Rachor (01:47):

Three years now. Three years maybe going on four coming up in the summer, I think.

Wendy Sweet (01:53):

Awesome!

Bill Fairman (01:56): Excellent! Give me a little background Jim. Were you born and raised in that same area?

Jim Rachor (02:01):

Yeah, so 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 founded it. But it is a nice community, used to be a famous golf tournament there. People know about Warwick Hills. I used to 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. Yeah! So, he who is one of the guys involved with the beef and cheddar and the Jamoca shape, just FYI. So I have known her my whole life. We did not 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, I thought that was smart idea. My idea was to defer that and go skiing for a year. My dad said, no, you are not doing that. 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 did not waste a lot of time on the minutiae. So there is a lot of that in school I thought. I also grew up, my dad was as a financial advisor. So, 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. And we just got this, the Holy spirit 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 will say.

Wendy Sweet (04:48):

Right.

Jim Rachor (04:48):

But, that journey took us, you know, to Vietnam and where and this and that other place that would adopt to us was Guatemala. Because 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 did not 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 had never get Amelia, which was the first girl. And we spent probably seven to eight years trying to get Amelia back and forth, corrupt lawyers, corruption, wondering why God had us there. Should we just forget about her. And in doing those eight or nine trips to Guatemala, we had people that wanted to go with us and that is 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 is 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 is doing great now by the way.

Wendy Sweet (06:12):

Wow!

Jim Rachor (06:15):

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. It is just how things work out that way. That was not what God’s plan was. So that is 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 is what I am going to invest with. And so, anybody who has any capital at all, you have got to do something with it. You cannot just keep it in the bank. You will lose money in the bank, obviously. 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. Messa airlines, we knew it was ahead of time what was going to happen and it was not 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 guest to make a lot of money in the stock market. Those days are gone, which kind of sent me along to David Phelps of Freedom Founders and the cash flow method, buying things low and making money on the bar, you could still do in real estate.

Wendy Sweet (08:04):

Right.

Jim Rachor (08:04):

And so we tried to be to that. So now I started to, with an impending correction coming and the casino. I think that wall street is now because of all sorts of different things that I know about blockchain and what have you. And you know, Ray Dalios metrics on how to pick stocks. I do not feel like that is a place we should have our money right now. And so that is kinda where I met with you guys and I am 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 have our back. And you do not really find that anywhere really, especially on Washington.

Wendy Sweet (08:53):

Awesome. Thank you for those kind of words. We appreciate that.

Jim Rachor (08:56):

I really appreciate that. Yeah so, I will 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 is so nice and that was completely, we did not ask for that. And we are not paying them to say these things, right? Although we are paying him, but it is coming from the fund.

Jim Rachor (09:16):

Well, I will say, I have a mentor ship program that I speak on at the dental school and it is amazing how sad it is of the new graduates coming out of, I will just say out of the University of Michigan, you know, dental school with 65% of them have over $300,000 in debt.

Wendy Sweet (09:32):

How did they do that?

Jim Rachor (09:34):

And they do not 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 in a way that makes sense to people like us. You know, it is really a breath of fresh air and I am finding that there is a niche out there even for young professionals that just do not have any idea what to do once they get out. But now they are getting out with so much debt. It is even like, that is something, you know, I think real estate is, well you always say Bill, there is so many different ways to do real estate, you know?

Wendy Sweet (10:20):

Right.

Jim Rachor (10:20):

So, that is my 2 cents or whatever. Maybe too much you want to hear about. That is what I came from.

Wendy Sweet (10:27):

No, I love it.

Bill Fairman (10:28):

Well, the analogy I always like to use with real estate is, it is a hedge against itself. You can make money like say if you are 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 does not happen because it does not happen all the time. Markets do not always go up, sometimes they go down. But for the long haul, real estate is going to appreciate in most markets, and again, every market is a little different about three and a half percent a year over a 30 year period. It is not always going to go up in a straight line. But if they do go down like what happened in the 07 and 08 Santa things, when the values just limited, we love to say this, the house does not care how much it is worth as long as it is making money. So now consider this. You have a stock that has an upside and when it is going down, it pays you a dividend. So, if you can turn that asset into an income producing asset, it does not matter if the value does not go up because you are producing a cashflow at the same time. So, it is a hedge against itself. Now, I am very curious as to why you got a degree in economics. I am 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 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 did not want to 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 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 did not get into dental school. So, well I thought, I know I could go on and come alongside my father. I 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. 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 is 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 because I was saving a year worth of tuition. But truth be told, my father paid all my education through his mastery of the stock market and my sister is also a dentist, any nurse anesthetist.

Wendy Sweet (13:24):

Wow!

Jim Rachor (13:24):

So, very highly educated sister. And so that was, that was kind of what I was brought up with all that stuff.

Bill Fairman (13:35):

Excellent.

Jim Rachor (13:35):

It is fun. You know, IRAs, but you know, like you were saying Bill, there was no real tax hedge. I did not see, in stock market. As you see with you know, real estate. And I could not really tell you what I had my stock if I have not got a mutual fund, what was I really invested in? I do not know. You do not really know what you are 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 deal is to stretch that out to the grandkids, now that is gone. You know, the 10 year deal now all happened in two weeks, the last week of just December.

Bill Fairman (14:21):

Wow!

Jim Rachor (14:21):

Has a lot more control over the market than they do over, let us say a little, you know, better community, you know, of a cashflowing rentals. So anyway, I think that might answer your question, but that is kind of how I went from economics to, you know, Dental school.

Bill Fairman (14:40):

Well, I am assuming as you are mentoring these 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 is not doing you any good. You have 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 make money that way, right?

Jim Rachor (15:06):

That is 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 dilemma for them is do you want to be a W2 earner for 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 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 have noticed that is 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 I think you could pay off your debt. You can go corporate, you are W2 earner, you are working like a dog. You have nothing to say at the end of five years and because 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 are married and if they got it in, we do not have kids. So, it just keeps becoming this golden life cuffs, I call them the handcuffs of life that 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, it is not 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 student loan.

Wendy Sweet (16:59):

Right.

Jim Rachor (17:00):

Well, maybe not that in essence in a buy your car. So, that is why I tell them, I tell my kids, you know, you want a new car every year, why do not you buy a rental? And technically, that would be your car loan payment.

Wendy Sweet (17:15):

Exactly.

Jim Rachor (17:15):

So that is what I am 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 is like they are just throwing darts at a wall, you know. They are trying to find some house and do it themselves. You cannot do that.

Wendy Sweet (17:38):

Right.

Jim Rachor (17:38):

So, I think you might have, you guys have for us is amazing. It is safe and it is actually kind of fun. You can diversify over several markets in a great market now with you guys.

Wendy Sweet (17:49):

Right.

Jim Rachor (17:49):

So, to me it is a no brainer and it is just like us at dental school, you are not going to go do your own feelings, I have held that.

Wendy Sweet (18:01):

He can, he is talented.

Bill Fairman (18:04):

I am not that much of a micromanager that I had do it myself.

Wendy Sweet (18:11):

He had forget what he was doing. He is one of those squirrel guys. Squirrel.

Bill Fairman (18:17):

So, I would like to get in a little bit more of your mission work, if you do not mind. How can other people get involved?

Jim Rachor (18:29):

So, you can always, you know, email me, I can put that in the notes if you want or you have my email.

Bill Fairman (18:36):

Right?

Bill Fairman (18:36):

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 got me, other people that have done some amazing things in the business world and, I will not mention what they have done, but they have done quite well that are able to organize this really cool process where we have a feeding center. Let us say in Guatemala we fought, we feed 500 kids a day.

Wendy Sweet (19:07):

Wow!

Jim Rachor (19:07):

And to me that is the greatest thing that I, if I do not do anything all day to day, if I can, you know, pay my whatever the, you know, it is not that much money really. And so anyway, so that is something that we do and it is called TransformingFutures.org. We also partner with a company called ForeverChangeInternational.org and that is where the orphanage is. But we kind of marry those two entities and pretty much he contact me, you can come out on a trip. We like you, we are also organizing a short trips where you can come and see what we are doing. Like a weekend, maybe a four day weekend trip where we have a meeting, this Sunday about that our Guatemala organizers in town this week for a big fundraiser. And so what I like about it is grassroots. There is 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.

Wendy Sweet (20:09):

Right.

Jim Rachor (20:09):

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. And the one question people ask is, why do not we do that here in the U.S. Well, we actually do. We have a homeless clinic in Flint, Michigan, North of us that we do service as well. And that is cool too. I mean it is sad but it is 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 users but about one third are just down and out and the way they have come to that part in life and they have an almost anybody.

Wendy Sweet (20:57):

Yeah!

Jim Rachor (20:59):

So anyway, that is kind of the way it probably contacted me by email or those organizations is probably the way that I recommend that.

Wendy Sweet (21:06):

Awesome.

Jim Rachor (21:06):

Thank you for asking though.

Bill Fairman (21:08):

Sure. Well, I will have those listed in the show notes and then on the YouTube channel we will have links to those. It is great work that you do and you know, I am always charity wise, I have 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 had not been exposed to that kind of poverty before anytime I had gone out of the country it was always to a resort. And 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 home and you are, you know, you have these first world problems, they are not really problems anymore, they are just annoyances. And I am going to give you a quick example. 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 am looking into the window of this convenience store and I see 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 am going to be stuck in this line because you know, blah blah blah. It is going to take me all this extra time.” That is the first thing in my head. This is going to inconvenience me another 15 seconds. So I go to get my drink, I am standing in line and then, you know, I walk up to her when it was my turn and I said, “How is it going?” And she said, “Well, I have 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 am going. I was worried about this extra five minutes. I am standing here in line and I said, “Well, I hope your day gets better.” And I sat in my car and I went grab my wallet.

Wendy Sweet (23:19):

That was God talking to you.

Bill Fairman (23:23):

I 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 have lost this and I am sure it is going to go to the right person.” And she was, Joel just dropped down and that made me feel so much, but I am 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 are doing some work in Africa for an orphanage and a hostel that we are 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 is warm. It was, you do not 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 do not have the ability to do things like that. And I think it is important that we all, you know, just keep that at the forefront of our minds in what we are doing or how, you know, how truly blessed and rich we are. Even the poorest of poor in our country are still have more than people. A lot of, some of the other countries that are there but very true.

Jim Rachor (24:49):

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 do not for me when I am 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 have heard about it famous, but there will be kids that, there will be like a eight year old bringing in a three year old. And when you clean their plates up, when they are 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, this was not a chicken soup and I was just like, “Oh, my land.” You know, my mind just went back to the, you know, they did not even get a chance to choose what they are going to have.

Wendy Sweet (25:52):

Right.

Jim Rachor (25:52):

Here is what we are having today. Here is your meal, so I definitely see what you are saying.

Wendy Sweet (26:00):

Yeah!

Bill Fairman (26:01):

Well, it is awesome what you guys are doing now.

Wendy Sweet (26:03):

Yeah! Congratualtions!

Bill Fairman (26:05):

Did you have any questions or comments you would like, because we have been kind of quiet over here. It is hard for him to, for either one of us to get in a word in edgeways. I feel really sorry for Jonathan.

Jonathan Davis (26:20):

No, I am good. I am enjoying listening to the stories and very inspirational and I appreciate them.

Wendy Sweet (26:25):

It is.

Bill Fairman (26:26):

Excellent! Well Jim, thank you so much for taking the time. I know you have got the patients probably lined up going supposed to be yanking one of my feet. That is all right! Take your time.

Jim Rachor (26:40):

That is okay. I will hide it in here. Nobody will find me in here. I just want to just lastly, just thank you guys for helping me out in my freedom path to financial freedom. You are instrumental in doing that and I appreciate your integrity and your loyalty and your honesty and your knowledge and what you are doing in your mission life and your faith life it is something cool to watch and I appreciate you guys. So, thank you for, I mean, I am already even beyond on with you guys, so it is my honor to be here. So thank you.

Wendy Sweet (27:10):

Thank you. That is so nice.

Bill Fairman (27:12):

We appreciate it. Thank you so much.

Wendy Sweet (27:13):

We feel the same about you.

Bill Fairman (27:14):

And I am sure I am going to be seeing you in a couple of weeks here pretty soon.

Jim Rachor (27:18):

Yup.

Bill Fairman (27:18):

Have a safe trip. Great seeing you.

Wendy Sweet (27:22):

Enjoy the snow.

Bill Fairman (27:23):

Have a wonderful day.

Jim Rachor (27:24):

Thank you. Bye!

Bill Fairman (27:25):

So, you are welcome. Folks, thank you so much for joining us. Do not forget to again, the like and share. We are working. Can you find this Wendy?

Wendy Sweet (27:37):

We can be found on CarolinaHardMoney.com.

Bill Fairman (27:39):

Yup.

Wendy Sweet (27:39):

And we will have Jim’s information up as well.

Bill Fairman (27:44):

Absolutely. And we have some archive videos if you would like to jump on some of those and they will be either up there or over here or down there.

New Speaker (27:54):

Somewhere on the screen.

New Speaker (27:54):

You will see them pop up at the end of the screen. So, everyone have a great day till we see you on the next show.

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