35 Darrin Brocklebank Borrower

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35 Darrin Brocklebank Borrower

hello this is Wendy sweet bill fairman we’re here with our great friend borrower partner I thought he was a dear friend and he’s well that too his name is Daryl Brocklebank try to spell that one you’ll see it on the screen a little later so whoever is here is our guest anyway don’t forget to share subscribe like what else follow twitter snapchat snappa tips all of that stuff with the links that we have right yes carolina hardman.com is the link to our site and let’s get started yeah Billy just ate so his anyway anywho so Daryl certainly appreciated alright so I would like to get started with the hurricane oh yeah well I just think that’s such a cool story mm-hmm well not the hurricane itself but that the aftermath yeah and with the giving Heather down there yeah yeah it was awesome so last year I guess two years ago now and then well it’s getting there yeah we had a hurricane that hit the eastern side of the course it would not be the western side but it was one of these storms were the you know the wind and stuff wasn’t that big a deal but the thing came in and it just stopped mm-hmm three days just dumped tons rain I mean they had flooding really all the way into the Piedmont of North Carolina but there was a couple of really hard hit towns I know that our brother has a place in Atlantic Beach North Carolina and it was it it was probably a couple weeks later driving to his house was the normal route I take there was at least a 10-mile stretch where every houses belongings were out on the street yeah where they had to clean OSN they weren’t even in a flood zone yeah and it’s amazing so tell us what you did in Newburgh yeah well I had a friend that’s down there and he basically went through that same story with losing everything and my intention was to go down and just visit them and just try to you know give him peace of mind and that type of thing but what I realized was that he was struggling he’s mentally psychologically emotionally and this is somebody that I’ve always viewed as somebody that’s pretty strong great provider for his family so when I was down there and I realized that that was the problem with him and I wondered how much more the widows or the people that might not have a good income would be struggling too so I kind of just took it one step at a time with I think for maybe 10 or 12 weekends we established some teams to go and clean out some of the homes in that period of time we were able to clean out 335 homes and trash that’s a nice and that was all you know a gift to people as places like Sunbelt Rentals donated tractors local people came real estate investors came and then at that time we realized that you know Heather and I had put which is my wife put a couple more dollars into the pot than what my wife was comfortable with she said you know why don’t you try to make a little business out of that so at that time we were coming out of Charlotte where the market had tightened out my stuff work my homes were sitting on the market over 400,000 for about four or five months so I was like maybe this is a good time to shift to a little bit more of a slower steady market so we did that and you know we didn’t have any connections at the coast so because you had had be a brother in Atlantic Beach and yeah your parents and you guys had an investment in Newbern you were familiar with the area so I quickly called you guys and say hey could you help me with this because without that partnership there was no way for me to go forward with the endeavor right and it was amazing the partners that you built up while you were there mm-hmm and

bringing other people into the area that was pretty cool to be able to bring in different teams to do rehabs and yeah because it was hard because not a month later a hurricane hit Mexico beach yeah and half the people that were there doing rehabs and helping out left and went to Mexico Beach and these people are sitting in New Berlin yeah I think that’s right I think that at that point I was just helping maybe it was playing on by one or two investments personally maybe Airbnb em and go to town but when I was there because I was pretty much there in the middle of September to January 1st that year like maybe I Drive back sometimes in one day to speak somewhere or help with something I’d go right back and sometimes didn’t visit the family so it was one of those deals that when you were there you felt like very grateful what you had but very much like what what can I do so when everybody left to go to Mexico Beach and a lot of those people had stolen deposits and things from clients I felt like you know what could we do so you know we’ve given it our best and we’ve been down there ever since then and will continue to be down there for the next few months awesome now what I really want our listeners to hear though what you’re such an entrepreneur it’s amazing what you’ve done since you were what 12 14 years old talk a little bit about how you started in business yeah so I came from we’ll say a lower middle class family and that basically meant if I more than what was provided for me which was always a brand new pair of Levi’s jeans and a nice shirt but outside of that Levi’s were Levi’s were hiring so so yeah so that’s what it was and so you know started had a newspaper route at ten years old and we’d get our newspapers at 1:00 in the morning we’d fold up our me for you Millennials a newspaper or something we used to get that head print yeah we would read the news from it not on the screen we didn’t even know existed yeah so that’s what I did and you know my route grew from Street to Street and before you know it I was half the town so I was real lucky and blessed to do a good job but that kind of gave me the bug of you know making some money and then had you know 12 start to rake some leaves that 14 went and got my first business license in downtown Charlotte and started to cut grass and use the sports people that couldn’t have a real job in between their practices coordinate them cutting grass for year for me yeah that was the goal yeah yeah the goal was to utilize them and before we knew it I think I had more disposable income in the bank but I was 18 that I have right now I didn’t know that’s kind of an oxymoron it didn’t seem that way they can seem that way so got married at 18 and engaged at 17 and just decided to make a business of it and now have landscape business I have a little consulting business that mostly does pro bono stuff called Metro consulting and then we’ve had this Metro real estate business that we’re trying to figure out how to how to make money in yeah did you sell that business I did not sell that business will always entertain people okay are looking for them I was thinking it was turning into a story like our friend David Phelps where he sold his dental practice they try the back yeah I it back you take it back yeah then you had to go back and redo it again to get back up I’ve definitely learned though if you take the eye off the ball there are four or five things that you should be doing on a regular weekly basis even if you’re absentee or it can bite you in the butt yeah and it’s not you can have great people it’s not necessarily the people it’s just there are certain people are just cut out to make the big decisions and certain people that makes them crumble and things of that you’re a big big fan of the boot traction yeah I like the traction that’s how you do it there’s our give today read the book traction yeah you’re a small business owner so financing wise what you know we’re have you on here because you’re using us yes yeah and we appreciate that what are some of your other options for getting financing on things what are some other things that you’re doing yeah well at first I self-funded because I and I realized that really quickly you know if you make a couple mistakes and you hold homes longer then you need to have you you can be leveraged right so then I kind of graduated to using my money for lending on small things or transactional funds where it made sense or using my money for all my screw-ups I screwed up something I could put something in that would make sure I was

still good with the lenders that I was working with but yeah we you know we do three or four different things depending on the circumstance and depending on you know what our exit is for my property yeah you know we have you know one lender that we use in Charlotte when it makes sense he happens to not charge on any draws if you don’t pull draws so when we happen to have a lot of cash sitting aside then that makes good sense for us because we can do the whole rehab with our own cash and then we go to put it on the market well we’ll pull the cash out at that point and then start to be charged that interest so that’s a it’s a model maybe for a smaller lender that doesn’t have any overhead can be able to do or maybe be playing with just family and friends money whether it returns can be maybe a little lower than what you guys promise your lenders but be careful because Christmas and Thanksgiving could be difficult if you don’t pay for them and that could certainly cast on me right so seller financing yeah do some seller financing where it makes sense I mean we’re kind of in a position now where it doesn’t hurt to ask so if somebody is in a position to be able to do that then it’s a lot easier for us to get the funds for just the small rehab and we finance out of the the seller financing so it’s another option occasionally when we wife feels confident in the deal then she’ll say hey we can move this much money over and use that for something and we’ll well maybe do a joint venture with somebody if we feel like that’s a better circumstance where we can be the money and they can be the energy right but we only really do that if if somebody’s got enough experience that we feel like that we can really be hands alright somebody like save me yeah so Andy and I do some things here and there and when one of us can’t make it happen the other one tries to do that yeah and then and then obviously we work with you guys so I think it’s a good idea to have a few different relationships because you know sometimes somebody might have you know lending all their money out and then you’re kind of kind of stuck or sometimes you know other people might make different decisions which might limit you or you might not fit somebody’s portfolio later as they grow their business so we always promote trying to find private lenders first and foremost mm-hmm the thing that it is they don’t have infinitely deep pockets yes for sure and you’re still always going to need a business that is a short-term bridge lender yeah available yes it’s going to cost a little bit more but in the long run they’re almost always going to have the capital at the time yeah and then people that use their own care my experience has always been that you’ve had the capital okay when I needed it I’m just saying as a general rule yeah that’s why we set up our business anyway and you always have to have more than one source because no you never know I mean we may not be in business it could happen yeah yeah and the thing about using your own cash to think the thing that I worry more about people using their own cash is two things one it’s hard to scale mm-hmm because you have limited amount of money that’s it and then to paint yourself into a corner you you need more than one exit strategy and if you don’t have available cash you limit what your options are and another deal comes along and you can’t take advantage of it or if like you said if there was a mistake and it doesn’t have to be a mistake that you caused or can be completely out of your control yeah when you buy these homes even if you have them inspected by an inspector mm-hmm they don’t have x-ray vision if you’re taking a wall out there’s something back there you didn’t know about little critters you still have to pay for it you have figured into your scope of war it’s that right so you have to have that liquid assets available to do that kind of thing and it’s I always think it’s a little bit better to lever whether it’s a private lender or one that’s brick-and-mortar well I think my experience with private lenders have been just what you said you know it always seems to be that you find the deal right when they just gave their last bit of money on somebody else so then you you’re coming from a place of being really leveraged when you go to that next private person so if they hear it in your voice that oh yeah you know hey I’m gonna lose this deal in three days yeah then those points and that interest is going to reflect that leveraged position that they’re in like when the roaches fall on your head when you open up the front door to look at a house well the price just went down on this house exactly the same the other thing too I think is really important at every house kind of has its own little personality and when I say that I mean that house has a certain way that the financing for that is gonna work out

perfectly it’s a good point so you really need to match your financing to whatever that house is gonna be when it grows up you know are you gonna hold it you sell it you know what’s the price range that you’re gonna flip it in are you gonna turn it into an air B&B you know what our what’s your plan with that particular house yeah different lenders have like different ideal portfolios right so if somebody is lending money on something that’s gonna be a long-term rental but their can see a vision of what Airbnb and VRBO is brought into the equation they might be a little less concerned about equity yeah and more concerned about cash flow exactly where somebody else might say hey I’ve really got burned on the equity game so I’m never going to do anything you know beyond a certain amount and let’s face it the market moves so when things get more competitive you know everybody has to compete so sometimes you know people are taking more risk when there’s less steals out there to just continue to keep their staffs busy or do lots of different things so you always have to kind of be moving with it to kind of try to stay one step ahead of it and then when you’re not a step ahead of it something hitch in the back of the head which will happen yeah then you’ve got other options or other things to work against tonight I typically use like free and clear property in the form of either equity lines or collateral when I when I get hit in the back of the head and I go okay I’ve lost a little leverage on this circumstance but I want my lender to feel comfortable enough to know that if for some reason things go really really bad on this that their collateralized enough where they don’t lose right right and that’s what’s so awesome about you and the kind of people that we like to work with is that you care about us just like we care about you and it’s a great working relationship that’s why you know the belly-to-belly relationship doing business with people that we know like and trust you know they have the same values that we have makes all the difference in the world to us you got to know that either parties willing to get on that conference call rethink through things and and that I found even when using my own money my own money I would be more fear oriented so I might discount something a little quicker because I just want to see it in account right so wouldn’t make it’s good of a decision so when you’re in the with somebody else you can say hey this is a problem I’m having what’s your perspective on a and it’s risky because you you naturally want to hold your cards tight and both people want to but if if you’re both got your cards laid down and you’re both willing to help each other then the odds are that you’ll get through that circumstance feels a little bit better and see does that happen with B of A’s and Bank though here’s like yeah when things get tight or the big corporate companies are they going to work with you no and you know quite honestly you know I’ve seen you guys you know take some risks that always didn’t work out and I saw how you guys handle it when those things came up so the fact that you would call your lenders and you know face that fire and work through it the fact that I know people that are in your fund and they still keep relationship and feel good about reinvesting with you guys the fact that you know those are all things that made me feel comfortable enough to pay more to know that if something like that were to ever happen that we would be able to work through whatever that situation is right thank you well my main point to think and yes thank you my main point to that was that in business at all you can deal with a private we run company or a fund structure where you had it have a manager in place that’s private they’re going to tend to work with you during that down times as the same as they are in the up because the banks you know they have stockholders they have to deal with yeah and they can only do stuff in a box yeah and you know if a loan goes into default or if somebody wants to renegotiate terms they don’t know what to do they don’t have the bandwidth to do anything else but hire that collection attorney yeah and move on and when you’re dealing with private investors private lenders everybody is in that same book together and they would rather work it out because they want long-term relations well and that’s what’s important so we’ll use me for an example down in Newberg you know so far you know I’ve been able to pay my bill every single time right but what I didn’t realize was that the amount of people that were fearful for coming in after a hurricane was gonna make the market much more competitive than what I predicted right so if we didn’t have such a relationship where I could own that let’s say mistake and say here’s where we’re at then you might feel scared to loan on other deals so then I’d have to wait for all that to be cleaned up before I could

go do other deals but the fact is I’ve got to get going with other deals to help make up the losses that I made on that first thing so having the relationship on those types of situations to say okay no maybe there needs to be other perimeters put in place or maybe something else needs to change but this is really this I believe in you beyond this is everything right absolutely it’s probably why we even Bank sometimes that there’s still the same community makes 20 years because the relationship matters right yeah absolutely so you know we’ve talked about what you’re doing business-wise but I’m I want you to share a little bit about what your real Y is and what you’re doing and share a little bit about with us what’s going on in after death is that certain this African trip circle back to the new venture it’s it’s all connected it’s cool yeah so I guess I guess I could have chosen a couple years ago to liquidate everything that I owned and let’s call it retire it wouldn’t have been the retirement that I wanted and borrowing no major illness I would have had enough money to last the rest of my life but I felt like in every time I was in a jam through the other businesses that I built real estate was the thing that’s got me out of a jam so I knew real estate was something that I wanted to get into and the goal was to really try to do a little bit of everything because I’m kind of a feely let’s touch it let’s prep my arms around it type of guy and get a get a feel for what I would like and I’ve settled into some short-term rentals long-term holds as that strategy with using some of the general contracting experience we have from the past to to do that and we went to New Bern we I guess when I went to Africa originally I stumbled on a church that was just outside of New Bern and that was crazy because in the and Wendy spent on a couple trips to Africa but in the entire time we’re in Africa we don’t see any other Americans so it’s not like it just was a sign from the Lord so when I was in a circumstance of going there and meeting this church it was before before the hurricane happened so the Lord already had went before us he knows our plans better than we know our plans to say hey you’re gonna need some subcontractors you’re gonna need a community and when you come down there you’re gonna need that but in return they needed somebody that was at a phase in their career maybe that could spend a little bit more attention on that so on that meant you know helping an orphanage come self-sustainable so I guess my why is have enough residual income you know through real estate that allows you know me and my family which is my wife and three children to be able to you know wake up every day and do what we want to do instead of what we have to do right in order to make an impact on you know whoever we touch in the Charlotte area and our in our network in the United States and in Africa so thanks yeah so the awesome not a real deep answer but it’s it’s what it’s why we’re doing what we’re doing that’s right that’s right that’s awesome anything you would a I think we’re good I think we’re good I really appreciate you coming in here and sharing what you’re sharing with us and with our audience and just giving people an idea you know it’s some investors have like a bad reputation because it’s like we’re out there just trying to buy cheap sell high and run forward and that’s really not what this is about this is really about building the kingdom not ours yeah I mean it’s really everything it doesn’t mean that I don’t get caught up and trying to get a good deal it doesn’t mean get caught up and no trying to you know manage a schedule but I’ve realized that you know if somebody’s sick and they can’t go to a job then maybe they need me to pray for them or maybe they just need me to become compassion right because maybe the other three people are really upset about it right and I think that if we truly believe that God is the you know owns the cattle on the hill then we truly need to treat everybody the best that we can according to how he requires us to and when we don’t and there’s times that I don’t I have to own it very quickly apologize and see how to make my wrong right because that’s what we’re we were only created to worship the Lord and to tell other people about him what we actually do for a living is just a platform to be able to do that’s right that’s right and it’s funny the masterminds that were a part of you’ll see the the vast majority of the high level real estate investors that we deal with on a daily basis are not doing this to make money they’re doing it to make a difference yeah in it yeah that’s pretty much the way you see it mm-hmm and I want to dispel the myth that you have to have money to do that yeah well

you know you you have to be in a position to make to make a difference you have to have the money to be able to put yourself in a position to have the time for sure and then at the same time to have the assets to make it happen I agree a hundred percent as it no as it pertains to a hundred percent being free yeah but I think a lot of people when they’re in that grind and working up they look at people that have already hit that spot and they go what’s easy for you to do that now that you’ve arrived that’s right and I think for me I can’t when I look back I’m obviously doing more of it now than I’ve ever done but I’ve always did it and even at the point of maybe being really tight with my bills and still choosing to do it because it was the right thing to do and then somewhere I don’t know where the Lord would provide something to bridge that gap so sometimes people just have to grow mm-hmm that’s true you know yeah sometimes it takes us a little longer but we all face people every day when it’s the lender with a tough conversation or the sub with the tough conversation or the employee or the seller to be able to stop what we’re doing they just minister so yesterday my wife had she’s on the phone with one of our Airbnb Xand the hot tub continues to be green and whatever so I just was like she was you know trying to console this person and this person ended up renting the Airbnb because they were going to see their grandfather before they died and the grandfather died on their way up there so they were renting this Airbnb to have comfort with their mom and then like the Internet’s ow and so what were we talking about then actually I think it’s awesome the story that you just shared with us it’s it’s so important I think especially for us we love our audience to know what’s important to us because we’re you know like a like I said before we’re all about the relationship and you know you’re just a great example of who we like to be attracted to you know you attract the people you want to be around and you want to repel the ones you don’t right but the bottom line is is you know even as an investor when we’re out you know hunting for the best deal you know the goal is to find that person’s pain point well is it really to find that pain point to get a good deal yeah we want to do that but what’s more important about that yes how can we pray for their pain point you know how come we help make a difference for them and I I think once we you know just flip the switch in business and everything that we do if we flip that switch and really concentrate more on helping that person we’re gonna get that reward back yeah tenfold and a lot of times we’re helping people that are in a bad circumstance anyway that’s right that’s how the deal was there that’s right so it’s just a matter of saying we need to find that pain but maybe we’re not the best people to solve the problem but we might be the best person to help them overcome their next steps with another investor might buy it and not really see that opportunity to help them that’s right yeah we call it a pain point in reality it’s what’s motivating them to do what it is that they’re doing and then being able to fill that need so you’re still providing them with a solution to their issues that’s right yeah we just call it a pain point because that’s kind of the marketing term for yeah it’s just painful yeah it could be painful and kids just being that this is why I’m wanting to sell but it’s okay because I don’t want cash I want payments over time yeah that’s right I’m a landlord and I’m sick of being a landlord mm-hmm I don’t mind receiving payments I just don’t want it from a tenant yeah yeah so the pain point was always doing the toilets in the trash and the headache yeah you’re solving that problem for them because they’re doing finances yeah that’s right point bill so anyway and we have a friend Ashley in Dallas and the house is very competitive market and there were wholesalers going in and people that were doing fixing flip trying to buy these homes in these certain areas and there were people that had reached a certain age but they knew that if they got the cash these houses are free and clear these people couldn’t close hmm and of course he’s smart enough to talk to them and figure out that they didn’t want cash for it because they took cash for it when they had to go into assisted living they would have to use all that money up or they could get state

assistance exactly that’s big yeah but the way but income is not counted as assets yes so I’m gonna pay you payments over a period of time yeah and then if you pass away and timing lis then the rest of that money goes to your heirs that’s all they were it’s always the right time of year something that’s right we just can’t say that reminds me what’s that show it doesn’t remind you enough though that’s a lending his dad as his lucky ties is why is it your lucky tie oh this is my lucky funeral time I’m never the gannets dead yeah there’s always an opportunity well thank you guys for a bite don’t forget share like go to our website Carolina hard money.com and subscribe we also have archives right yeah I don’t know what’s at it’s on a link somewhere around that you’re on just real quick and we have other shows if you don’t really like this one anyway and you too can get to know Daryl broken bank it’s Darren uh promise it’s Darren don’t call me loser hi if you really like this show what you can do is you can check out some of our other shows that might or might not pertain to it you can check up there you can check over here you can check down here check it out don’t be afraid to like us right subscribe do that subscribe per page and hit like we’d love to have you do that Thanks you