How 1 Rental Property Saved Corey Kent’s Monetary Future

David:
That is the BiggerPockets Podcast present 809.

Corey:
I graduated school. You get to put in writing on high of your commencement cap. For me, I wrote, “By no means made a resume” as a result of I went to highschool with the mentality of I’m going to study as a lot as I can and I’m going to community and I’m going to simply taking life expertise. For me, I used to be taking in ammunition to put in writing songs. I knew that’s what I wished to do. And I wished to have an schooling, however I didn’t wish to have a backup plan. So I went and obtained an schooling after which I went and chased my dream. That was undoubtedly a results of being raised with an open thoughts of like, “I can go and begin a enterprise.” It took fairly some time, however I used to be capable of do fairly nicely.

David:
What’s happening, everybody? That is David Greene, your host of the BiggerPockets Podcast. And in case you forgot, we’re the most important, the most effective, and the baddest actual property podcast on the earth each week, bringing you tales, how-tos, and solutions that it’s essential make sensible selections in actual property now on this present market beneath these present circumstances, which is the place you bought to make your selections.
At the moment, we’ve obtained an superior present for you. Rob and I are joined by Corey Kent, a rustic music singer whose profession is exploding. Take a look at his album Blacktop. He’s going to be touring with Jason Aldean and we talked a bit bit about his music profession and quite a bit about his actual property portfolio. Corey has an unbelievable story from beginning off sleeping in trundle beds, sharing a $250 room with another person and consuming nothing however hen and rice to being one of many greatest stars in nation music at this time and utilizing actual property to complement a few of his wealth together with the household that he’s creating. I imply, we get into every thing from dwelling within the nation, shopping for uncooked land, how you can negotiate, what to search for in these offers, partnering with different folks, short-term leases. There’s a variety of stuff. Rob, what do you suppose folks ought to maintain a watch out for to assist them with their very own portfolio success?

Rob:
I feel this can be a very inspiring episode for a lot of causes, however I feel the primary motive is that Corey actually reiterated all through the episode that actual property has not been his major factor. It’s all the time been considerably of a facet… Now, I wouldn’t even say facet hustle as a result of he’s been so profitable at it, nevertheless it hasn’t been the primary focus of his life. And even then, even the truth that it has not been the main focus, it has actually helped him create wealth. It has helped him by way of sure monetary conditions that he confronted throughout COVID. And it simply goes to point out that investing even in small methods and doing it persistently, you all the time have a plan B by way of actual property if you happen to can maintain onto it. And I believed that was simply actually cool.
Lots of people listed below are identical to, “We have now a variety of actually inspiring friends that come on and discuss their mega portfolios and every thing like that,” however I additionally suppose it’s good to listen to some folks which are like, “Yeah, I do that on the facet and I make an amazing revenue from it and it helps complement my major job,” which for him occurs to be like a mega profitable music profession.

David:
Yeah, Corey talked about how actual property truly obtained him by way of a number of the hardest instances of his profession to get him thus far proper now. So pay attention all the way in which to the tip of at this time’s present since you’re going to wish to hear Corey’s full story.

Rob:
You’re going to wish to how?

David:
You’re going to wish to hear it. However earlier than we get to Corey, at this time’s fast tip is if you happen to like Corey’s album, Blacktop, maintain a watch out for my subsequent album, Greentop. It’ll be even higher. Simply kidding. The actual fast tip goes to be, all the time have a look at the college system the place you’re going to be shopping for. If you happen to don’t know the place to start out, probably think about serious about uncooked land. There’s much less competitors for these property. And if you happen to’re a price add investor, there’s numerous methods which you could purchase uncooked land, enhance it, after which promote it to a developer for fairly the good-looking revenue. Talking of good-looking income, Rob, do you wish to predict the long run?

Rob:
Do I wish to predict the long run? No. However I’ll say that on the barbershop, my haircut known as the Rob Prime. So for these of you which are asking like, “Hey, what did I inform my barber?” I simply name it the Rob Prime.

David:
That’s truly very humorous. Tell us within the feedback what you concentrate on Rob’s hair, my potential for a Greentop album, and Corey’s interview. Let’s deliver him in.
Corey Kent, welcome to the BiggerPockets Podcast. Good to have you ever on at this time. For individuals who don’t know Corey, he’s been investing for a complete of six years. He began on the ripe previous age of twenty-two. Very spectacular. Rob, I don’t know what you have been doing at 22, nevertheless it most likely wasn’t shopping for a bunch of homes and being cool.

Rob:
Nope.

David:
Up to now three years, you’ve performed six offers. You’ve performed long-term leases, short-term leases, invested in land and home hacked all whereas being a musician by day. And that’s form of downplaying what you’re truly doing right here. We’ll allow you to discuss your profession in a minute. You’re a father of three youngsters. Don’t know the way you probably did that. I might barely handle three homes. You’re additionally doing this whereas being a dad. And enjoyable truth, you simply relieved an album known as Blacktop. All people ought to go examine that out as you’re listening to the present. Google Corey Kent Blacktop and get that. Thanks for being right here with us, Corey.

Corey:
Man, so excited. A fan of the present and clearly have some actual property pursuits. All the things’s form of culminating. My music profession led me right here, so it’s fairly cool.

David:
Yeah. And shout out to your supervisor, George Corey, who reached out to me years in the past. He was additionally a fan of the present and met Brandon Turner after which met me. He’s been a really cool man in a variety of methods. So earlier than we get into your backstory right here, music is likely one of the jobs that takes a lot time and a spotlight. I think about that you just’re pursuing a extra passive actual property technique. What number of hours every week are you spending in your actual property portfolio at the moment?

Corey:
Yeah, so I’m a really passive actual property investor, which means I don’t have a variety of time to provide to it. There was a degree the place I used to be a bit extra… Within the tremendous schooling, I knew nothing, and I needed to educate myself. In order that was a time period the place I used to be spending much more time per week on it. I might say now, if it’s not just about an autopilot funding, if I don’t really feel like I can get it to that time, then it’s most likely not a match for me simply because my music profession has exploded over the past two years. And I might say a tough estimate, I’m spending perhaps two hours every week on my actual property investments. I’ve sacrificed some revenue only for the sake of not having a headache. So I’ve property managers in place and I’m taking a extra long-term strategy to a variety of these properties, whereas early on I used to be making an attempt to wheel and deal a bit extra.

Rob:
Positive. Positive. I imply, clearly being a musician form of at your degree, your schedule have to be form of loopy. So what does a typical week seem like for you?

Corey:
Oh, man. A typical week proper now’s as hectic because it’s ever been. Clearly, you mentioned I obtained three youngsters at dwelling, they’re 5, three, and one. I’m married, so I’ve a variety of private relationships to maintain up with and to maintain in a wholesome standing that take time. However my music profession is insane. Proper now, we’re enjoying 120, 130 exhibits yearly, plus journey days on either side of these. So we’re gone a pair hundred days a 12 months.
A typical week for me seems like perhaps if I’m fortunate, I’ve two or three days at dwelling in every week. We’re about to go on tour with Jason Aldean for the subsequent 5 months. I’ll get to go dwelling, I don’t know, perhaps 20 days complete throughout that 5 month stretch. So it’s fairly loopy. A typical day is like we simply went to a tour bus, which has been life-changing. All the things I do has been business-centered, proper? So we wished to go to a bus, however we didn’t wish to go into debt to go to a bus. So we put it to a band vote a handful of instances.
Even after having a primary hit, even after having a platinum document, we nonetheless have been in a van and trailer as a result of we have been constructing it long-term and we wished it to be sustainable. And so we simply now went to a bus, and that has been life-changing as a result of my days, as a substitute of driving ourselves by way of the nighttime after a present in a van and sleeping in a bench seat and taking shifts driving, we now have a bus and a bunch of bunks and a driver. So we play the present, get off-stage, bathe, hop in a bunk, after which eight hours later we get up within the subsequent city and we do it over again. So there’s comparatively no routine, however we’re making an attempt to make some routine out of the loopy way of life that we now have.

Rob:
Man, that’s actually cool. Nicely, everybody stick round till the very finish as a result of Corey’s truly going to be performing. No, I’m simply kidding. Think about if we simply dropped that on you. Okay, in order that’s superior, man. I really like to listen to it. You’re a really right down to earth man, dude. We have been simply chatting earlier than this for a bit. Are you able to inform us a bit bit about your life earlier than you discovered actual property? What was your loved ones like and any classes that got here from their affect?

Corey:
Completely. I come from a protracted line of entrepreneurs. I feel the principle lesson that I’ve realized from every of them is you get out of it what you place into it, proper? I’ve seen lots of people in my household hustle their approach into an amazing life. My grandfather has a giant cattle operation and 1000’s of acres. He’s the one which taught me how you can put money into land and what to search for, what he seems for when shopping for property, and that’s the place the actual property bug appeared in my life. I simply noticed what he was capable of construct for himself.
He purchased some property when he was simply beginning a household. The checklist worth he tells me was like 300 bucks an acre, and he wished it as a result of he knew the man, his father-in-law owned the piece subsequent door and he mentioned, “If that man needs that property, then I need the property subsequent to it as a result of I feel he’s smart.” He over bids on this property as a result of there’s a number of gives on it. He finally ends up shopping for it at $1,000 an acre, and all people thought he was completely insane. And now frontage on the street within the city, it’s going for 120,000 to $250,000 an acre on this city. Now, granted that’s 50 years later, however he purchased up 1000’s of acres. So he was the man that opened my thoughts to, “Wow, there’s issues that I can do exterior of my day by day job that may assist present for my household. I might be smart with what I create and I generate to reinvest to additional my life and my household.”
After which exterior of that, simply seeing the liberty that comes together with being your individual boss in no matter capability that could be. My mother owned a clothes retailer, a girls’s boutique for 20 one thing years. My dad has his personal legislation agency. For me, I grew to become a musician and I simply approached it like a enterprise. Regardless that it’s not probably the most businessy factor that you could possibly do, it’s what my skillset was, and I’ve loved the liberty that comes together with controlling my very own time.

Rob:
Yeah, man, that’s actually cool. Yeah, I imply, having a household of entrepreneurs develop up in that atmosphere, I’m certain it actually influences quite a bit for you, proper? So, would you say that entrepreneurial mindset influenced your option to pursue music?

Corey:
Yeah, completely. Really, I noticed a photograph. I graduated school 2016 from Oklahoma State. You get to put in writing on high of your, your commencement cap. It’s form of like a factor there. Nicely, for me I wrote “By no means made a resume” on high of my cap as a result of I went to highschool with the mentality of I’m going to study as a lot as I can and I’m going to community and I’m going to simply absorb life expertise. For me, I used to be taking in ammunition to put in writing songs. I knew that’s what I wished to do. And I wished to have an schooling, however I didn’t wish to have a backup plan. So I didn’t apply for jobs, I didn’t make a resume. I went and obtained an schooling after which I went and chased my dream. That was undoubtedly a results of being raised with an open thoughts of like, I can go and begin a enterprise. I can hustle. I can stay merely till I get the place I wish to go, till I get my enterprise off the bottom. And it took fairly some time, however I used to be capable of do fairly nicely.

Rob:
Man, that’s so cool. So you actually didn’t give your self a plan B?

Corey:
No, I undoubtedly knew what I wished to go after. My mentality and my character have all the time been, I suppose, excessive threat tolerant. I simply turned 29, so I see myself as I’ve a place the place I can swing for the fences and strike out and lose every thing and nonetheless by 35 rebuild every thing. I see the benefit of my age, and subsequently it makes me a bit extra apt to take some large swings. And particularly popping out of school, I used to be like, “Man, I don’t have any cash anyhow. I’d as nicely go after what I wish to go after. The roles are all the time going to be there. I obtained my enterprise diploma, however I didn’t wish to accept something lower than what I used to be enthusiastic about.” And that’s the place this podcast and actual property, and that’s why I’m right here, is as a result of actual property enabled me to maintain chasing that dream even when the dream wasn’t paying for itself. And so it has a very cool place in my journey of simply maintaining my dream alive.

David:
Yeah. So music is usually a notoriously fickle enterprise. Do you keep in mind something that you just did earlier than your profession actually gained some traction to avoid wasting cash, like what you have been consuming or the way you simply survived?

Corey:
Oh, man. Yeah. I’ve a horrible instance for you, however truly it was so prevalent. We had a home. A bunch of my buddies and I had a home in school and the rooms have been like 250 bucks a room, so it’s already low-cost. Nicely, me and my finest buddy who now lives seven homes down from me in Texas, and he’s elevating his household proper subsequent door, we determined 250 bucks wasn’t low-cost sufficient so we cut up the room. So we have been each dwelling or sleeping on trundle beds. So one mattress folded beneath the subsequent. And whereas I used to be dwelling in that home, each day I ate canned hen and rice for lunch and dinner.

David:
I really feel like I’m speaking to a younger me. That is my complete life, man.

Corey:
I keep in mind I had a mentor that was like, “Dwell like no one else lives now with the intention to stay like nobody else lives later.” And that simply caught with me. I simply keep in mind going, “Okay, after I’m married, when I’ve a household, I don’t wish to have to essentially scrimp and simply get by. I need to have the ability to do the issues that I’ve all the time envisioned doing with my household. And so I’m going to stay actually merely now in order that I can set myself up nicely later.” My mentality has developed since that time, however I feel there’s one thing good about being uncomfortable and making your self be inventive. To the extent that my roommates from that home of just about 10, nicely, seven years in the past now, the roommates from that home texted me after I signed my document deal, they usually have been like, “Congratulations, man! We’re so joyful for you. Does this imply you’re not consuming canned hen and rice anymore?” It was such a humorous second, man, however I worth these days. It taught me quite a bit.

David:
So that you moved to Nashville at 17, and that was the primary time that you just tried to purchase a home. This was your preliminary foray into actual property, which is loopy that you just’re doing that at 17, man. I’m nonetheless in highschool at 17. What occurred on that deal?

Corey:
Yeah. So I used to be driving round Nashville, and East Nashville was form of the place that I felt like I might afford to purchase a home at 17 years previous. I don’t know why I believed I might afford that. It simply appeared fairly priced, I suppose. However mainly, I went to the financial institution and mentioned, “Hey, I discovered this home. It’s $120,000. I feel I should purchase it. I can lease a room out. I can undoubtedly deal with this cost.” And so they checked out me they usually have been like, “Completely not. We’re not providing you with any cash.” And I went, “Why not? I do know I could make this cost. Have a look at my revenue.” Now, it wasn’t nice, nevertheless it might cowl the cost. And the response was, “Nicely, you don’t have any credit score.” And I used to be like, “Nicely, how do I get credit score?” And so they have been like, “Nicely, you don’t have any, in order that’s going to be powerful to do.”
And so I went to my mother and father, I mentioned, “How do I get credit score? How do I set up credit score as a 17-year-old child?” And my mother and father actually didn’t have an amazing reply for me both. So I mainly walked again into the financial institution and I mentioned, “Right here’s 500 bucks. Are you able to give me some type of credit score and simply take this. If I don’t pay it again, you possibly can maintain the five hundred bucks.” And so they have been like, “Oh, a secured line of credit score.” It’s like no matter you wish to name it, proper? And that’s the first time that I actually even knew what credit score was. That sounds horrible. I knew what a bank card was and what it did, however I didn’t know how you can go get one. So I simply began there. Clearly, I didn’t get to purchase the home. And wouldn’t you recognize it, that very same home, I watched it promote for 400 one thing thousand {dollars} a pair years in the past. So my sniffer was working, however I didn’t have the means to do it, nevertheless it despatched me down a path of like, I’ve quite a bit that I have to study.
And I feel that’s why I’m so enthusiastic about… If you happen to discuss to my pals in my band, I’m enthusiastic about serving to folks make their first buy in actual property as a result of there’s no one that had much less data or useful resource than I did simply on the onset. I simply needed to begin from absolute scratch and go work out how you can get able to purchase one thing. And I’m tremendous glad that I’ve, as a result of like I mentioned, it set my household up very well. However that’s the place it began.

Rob:
Yeah. So that you begin build up the credit score facet of issues. You clearly get rejected on this home, however what’s that second like? Are you defeated and are you want, “Okay, this isn’t for me”? Or have been you simply prepared to undergo the method to get you to the primary home? What was that mindset at the moment?

Corey:
Man, I imply, I used to be 17. I used to be tremendous naive. However the world was a giant journey to me. I graduated highschool a 12 months early to maneuver to Nashville, to chase a dream of writing songs. And after I obtained there, I noticed, “Hey, it’s most likely cheaper if I purchase a home than to lease one from any person, so let me attempt to go purchase one. Oh man, there’s a complete nother world that I do know nothing about. Now I’m intrigued. And this looks like a problem.” Which if you recognize something about my character, I really like that. So I simply felt prefer it was an excellent wholesome problem and I didn’t suppose something of it actually apart from, “I wish to attempt to determine this out.” Yeah.

Rob:
Yeah. Cool. So for context, what was your family revenue at the moment?

Corey:
Oh my gosh. At 17, dude, I used to be actually consuming subway $5 footlongs and having them cut up into thirds. On the store, I’m going within the morning, I’d be like, “Are you able to make me bake an egg and cheese $5 footlong and cut up it into thirds?” as a result of that’s breakfast, lunch and dinner. I imply, perhaps, perhaps if I used to be fortunate I used to be making like $20,000. That was simply facet hustles, like singing demos and crashing on buddy’s couches. I used to be sleeping in my truck at this level. After I overstayed at my welcome on my buddy’s sofa, there was no cash available. And that’s a part of why actually the financial institution was like, “Completely not. We’re not going to mortgage you any cash. You’re a 17-year-old child that may be a freelance musician.” So I get it, however yeah, you bought to seek out methods to navigate round your circumstances. And some years later, I used to be shopping for land and simply saved going.

David:
So your first official actual property deal wasn’t truly a property since you couldn’t get the mortgage. So what did you find yourself doing?

Corey:
Yeah, so my first property was a uncooked piece of land in Williamson County, Tennessee that we nonetheless need to today. It’s lovely. Actually, it’s like a 5 and a half acre subdivided, rolling hills, lovely bushes, property. Principally, I knew that we couldn’t go trip out and purchase a home at that time, however I knew that I wished to get my toes moist in actual property. My spouse and I, have been dwelling actually merely and we knew we had a bit bit of cash that we might both allocate in the direction of financial savings or we might allocate in the direction of one thing like land. And so, I simply form of clearly talked by way of this with my spouse and we reframed our mindset to, “This land goes to be our financial savings.”
And that opened up our minds a bit bit, far more than it was to the potential of with the ability to put ourselves able to go buy one thing. As a result of I feel lots of people, not less than folks my age, their barrier to entry is like, “I’ve to have a ton of cash saved up. I’ve to have extra rolling as a way to make my first buy. Or I obtained to have quite a bit sitting in an account someplace.” And actually what it got here right down to is I had made a relationship with a financial institution they usually took an opportunity on me and I purchased this land, and I had it paid off inside two years, even on tremendous low revenue. I simply put each spare greenback that we had in the direction of that with the mentality of, “That is our financial savings account. It’s okay if there’s not quite a bit left over on the finish of each month as a result of that is our financial savings.”

Rob:
And so, inform us about that piece of land. What did it value? Did you could have any companions on it? Was it simply yours?

Corey:
Yeah, so no companions on the land. I don’t suppose we had a co-signer. Yeah, the truth is, I do know we didn’t have a co-signer or something. It was listed at, I wish to say $135,000 and we obtained them to 119,000. And I used to be actually feeling defeated by that. I keep in mind going, “Man, if I can’t get this at $100,000, then I really feel prefer it’s simply too costly.” However I knew we might make the cost. I simply was on precept eager to “win the deal,” win the negotiation. And so I keep in mind my grandfather telling me like, “Hey, each piece of land that I’ve ever bought felt a bit too costly. And in hindsight, it’s all the time been an excellent transfer.” And so inside my parameters, I used to be like, “This suits the outline that I’ve heard my grandpa preach.” And so I pulled the set off on it.
Even at closing, I used to be like, “Man, did we simply get taken?” After which a pair years later, that property’s doubled in worth. So it’s been an amazing transfer, nevertheless it was a… I don’t even know what we might truly get for it. I’ve simply seen what different properties round have offered for, and it’s greater than doubled what we bought for. What it did was it gave me instrument in my instrument belt. And what I imply by that’s now two years after shopping for this piece of land, I had it paid off after which I used to be in a position to make use of it as collateral to go transfer rapidly on different offers even after I didn’t have the money reserves to maneuver rapidly.

Rob:
So inform us what modified about your monetary state of affairs? Was the music facet of your profession beginning to take off? As a result of rewind a bit, and simply the financial institution mainly mentioned no, proper? And so they’re like, “No, thanks.” After which now we fast-forward to this land buy that you just purchase, after which not solely did you purchase it, however you paid it off in two years. Was it all the time a plan to pay it off in two years?

Corey:
I used to be very, very afraid of debt, extremely afraid of debt, very a lot so like Dave Ramsey, “You need to by no means purchase something which you could’t pay for in money” and all that type of stuff. And so this was an actual threat for me, and so I wished to pay it off as quickly as attainable as a result of I felt like there was a monkey on my again. And that’s how I realized about fairness jail, proper? I’m tying up all of this cash into one thing. I’m unsure it was the wisest use, however the one approach that I’ve actually ever been capable of study is firsthand. That was an amazing studying expertise for me.
However what modified was I met any person at a financial institution, a president of a small financial institution, and it form of opened the dialog to, “Look, I don’t have the everyday revenue, however let me present you every thing that I’ve.” They have been prepared to do an in-house mortgage, and we did an adjustable fee mortgage. It wasn’t a traditional mortgage of any kind. They have been capable of simply take an opportunity on a child from Oklahoma, and it was a small Oklahoma financial institution. I didn’t actually realize it on the time, however what paying off that land in two years did was it constructed their religion in me, proper? They went, “Oh, shoot, this 22 12 months previous child simply knocked out his land mortgage and now he’s asking to purchase a rental property. Yeah, perhaps we’ll take one other swing on him.”
And so, if I’m speaking to my friends and my pals about their actual property funding, I’m saying, ‘Hey, look, I didn’t have quite a bit after I began. I didn’t make quite a bit after I began. And crucial factor I can let you know is construct relationships, as a result of that’s what opened the door for me within the first place.” And so, I form of measure every thing now in my life by, “Can I choose up the cellphone and name or textual content any person?” Whether or not that’s my lender or whether or not that’s my supervisor or whether or not that’s any a part of my enterprise, I wish to have them at a fast response. And that has made all of the distinction in each buy and sale that I’ve made since then, is simply having a private contact and relationship with every group member.

Rob:
Yeah, that’s an necessary talent and arguably crucial talent to have as a result of you must perceive who to name as a substitute of making an attempt to determine how you can resolve the issue your self. And so yeah, you mentioned this piece of land was about 100,000 bucks. Have been you making more cash at that time and that’s the way you have been capable of repay that land in two years?

Corey:
No, probably not. Principally, the best method to put it’s we discovered this program the place we have been dwelling in an condo in downtown Nashville, my spouse and I. This condo had a place the place if you happen to hosted three occasions a month, you bought 75% off your lease, which means you placed on socials for the condo advanced to construct neighborhood. And so, we took that place and I used to be writing songs, so I had a very small wage from Warner Chappell, the songwriting firm that I used to be writing for, and we lived actually merely and we didn’t have youngsters. We had one on the way in which at this level.
We simply lived so minimally, however not cheaply. I don’t know how you can clarify the distinction actually, nevertheless it wasn’t like we have been consuming canned hen and rice nonetheless, proper? We have been dwelling regular life.

Rob:
You spent cash on what was necessary, however you didn’t splurge on the issues that weren’t necessary.

Corey:
Completely. We’re nonetheless going out to have fun issues and we’re dwelling a traditional life, however we have been discovering a approach creatively to do it actually affordably. And so, as a substitute of spending 1,500 bucks a month on lease, we’re spending 650 I feel is what we have been paying, which is tough to imagine now as a result of every thing’s so costly. However we simply obtained inventive after which took the surplus. And as a substitute of upping our way of life, we put it into this glorified financial savings account known as uncooked land.

Rob:
So, you talked about that it checked a variety of the packing containers that appeared to line up with what your grandpa’s standards when he purchased land. Are you able to simply discuss a few of that? What have been a number of the packing containers you have been checking with this piece of land whenever you made the provide?

Corey:
Yeah, I imply the primary… That is form of one thing that I’ve realized, one thing that was talked about, however I’ve discovered actually helpful is following the college programs. That was the layman’s time period, tremendous easy approach for me to determine an space that I believed was going to do nicely over the subsequent 10 years, proper? And that was the one barometer I had for shifting to a special state and shopping for actual property. I didn’t know the areas like I do in Oklahoma. So I adopted the college system and I knew that Williamson County had nice college programs and there have been cities in that county that have been nonetheless fairly undeveloped and had a variety of room for progress. And that’s form of how I recognized Fairview. After which as soon as I recognized the city, I had a pair conversations with my grandfather. Fairly easy issues that rang true was like he all the time checked out shopping for properties which have hardwood bushes on them like on the spot rebates virtually, as a result of you possibly can have these bushes thinned and make some cash on that, and any person will are available in and purchase these. In order that was one tip.
Clearly, this piece of property wasn’t sufficiently big for that to essentially play a giant issue, nevertheless it did have some hardwoods on it. In order that’s what caught my eye initially. After which it was in an space that the roads are good and every thing is beginning to… You’ll be able to inform that there’s some youthful {couples} shifting out that approach, nevertheless it was very early on. So between like, “At all times bought the mineral rights” and simply stuff that I’ve heard rising up from grandpa coupled with following the college system, that was sufficient to get me on this piece of land. After which I appeared round on the those that have been shopping for properties on both facet of me and speaking with them. Like one of many properties on the left of us offered. I went and talked to this man. He was a reasonably profitable man in actual property. And actually, simply being naive and asking a bunch of dumb questions, he form of gave me his rundown on why he was buying this piece of land, and it simply added to my confidence within the property.
So I feel doing all of your due diligence of who’s within the space. It all the time helped me to speak to the neighbors and get a really feel for the world too.

David:
As soon as you purchase this land, what do you do with it?

Corey:
I’ve performed completely nothing with it. Truthfully, we purchased it as a result of my spouse and I wished to maneuver to the nation. We have been dwelling in downtown Nashville. However my spouse is from Coppell, Texas, which is a suburb of Dallas. And I simply keep in mind going, “Man, earlier than we transfer out to the nation and attempt to go construct a home or purchase a home or no matter, let’s make it possible for we prefer it first.” So to today, we truly haven’t performed something with the land. It’s the final remaining vacant lot. There’s like 10 or 15, 5 and a half acre tracks of land, they usually all have model new lovely houses on them. After which there’s our piece.
Our plan has form of modified. We purchased this land pondering we’d keep in Tennessee for a very long time, and that wasn’t what ended up taking place. Even earlier than we had the funds to construct a home, that was the dream on that piece of land, we didn’t have the power to go construct a customized home. So the subsequent buy was we purchased a main residence on the outskirts of city within the nation and discovered… I’m glad we did that as a result of we discovered that my spouse didn’t love dwelling within the nation as a lot as we thought she would. It’s Chip and Joanna Gaines, make it look very interesting on TV, nevertheless it’s not all the time what it appears.
So we nonetheless have that piece of land, and I feel we’re approaching a part of life the place our youngsters are 5, three and one, and as they become older, they’ll be rather less excessive upkeep, proper? Most of them are fully dependent proper now. So I feel we’re approaching a season of life the place we might transfer a bit additional out and be on some acres and actually get pleasure from it. However on the time, we had our first child and we didn’t have any household within the space, and so dwelling within the nation was form of isolating. So we simply form of set it apart. The property taxes on that piece of property relative to rental homes and Airbnbs and people type of issues, it’s simply so low. And as soon as it’s paid off, it’s simply the simplest, most low upkeep factor to carry onto.

David:
So failed goals made from shiplap and what you realized.

Corey:
Precisely. And don’t belief HGTV.

David:
Normally, sure. Each single particular person that wishes to develop into an actual property agent sees it on HGTV, those that have a look at renovating homes, it’s nothing, nothing like that in any respect. And everyone knows that it’s nothing like that, however but we nonetheless get sucked into pondering it. So, that’s humorous. You truly transfer out to the nation and also you’re like, “Oh, there’s a septic tank. There’s mosquitoes all over the place.” When I’ve to go to the grocery retailer, it’s like 35 minutes every approach, proper?

Rob:
That was the worst half.

David:
There’s no Chipotle’s wherever.

Rob:
Oh my gosh. Yeah. So we lived on 52 acres in Gatlinburg, and so I used to be like, “It’s land. We’re on a mountain, we now have views of the mountains.” After which it’s like an hour away from the closest large metropolis Knoxville, and that was coming proper off of COVID, so it was a bit bit… We have been already corn heating for a 12 months, after which we moved out to 52 acres and it form of felt like we have been secluded once more. And so I really feel you, man. It’s powerful. It’s powerful for certain. It’s lovely, nevertheless it’s powerful.

Corey:
It jogged my memory a variety of houses, so I truly beloved it, the city that we have been dwelling in, however… And that is primarily a part of life factor. My spouse would thrive within the nation given the fitting circumstances. However a brand new child, remoted, no household, no pals, new metropolis, it was simply powerful.

David:
Yeah. You want method, you want diapers, you want Robitussin. That’s a complete occasion to need to go choose up that stuff. I might completely… Versus when your youngsters are older they usually might go trip a horse or trip a dust bike round or go fishing someplace shut.

Corey:
Yeah, you simply kick them out and also you say, “Go play.”

Rob:
Driving in a automobile with a new child for 30 to 60 minutes can be… Wooh!

Corey:
Yeah, we realized that one firsthand too. Yeah, that was an fascinating season.

David:
So that you talked about short-term leases in there. What did you find yourself shifting on to after this land?

Corey:
Yeah, so dwelling in Nashville, we purchased the land. Then we examined out dwelling within the nation by shopping for our main in Dixon, Tennessee. Then the subsequent buy that we made was a rental property in downtown Nashville. I used to be mainly going forwards and backwards. We have been transitioning to dwelling in Texas, so I’m coming forwards and backwards from Nashville to Texas and Texas to Nashville, and I don’t have a spot to remain. So I’m, once more, again to sleeping on pals’ couches. We had rented out our main residence in Dixon, in order that grew to become a rental. The land’s nonetheless sitting there.
I’m staying at a buddy’s home one evening crashing on their sofa, and it’s a tiny little place, perhaps 700, 800 sq. toes. They beloved the place they lived, however they wished more room. And so I used to be speaking with them and mainly mentioned, “Okay, nicely if you happen to don’t thoughts me asking, how a lot do you pay in lease?” And so they advised me and I used to be like, “Man, that looks like a bit a lot for the tiny spot that you just guys have right here. Would you guys be prepared to maneuver?” And so they have been like, “Yeah, truly we’re looking for a spot that’s larger. We simply can’t discover one.” And so, I made a cope with them. I mentioned, “If you happen to transfer into the home that I purchase, I’ll allow you to choose the world. If we each agree on an space, we’ll purchase the home. I’ll allow you to stay there. I’ll match your lease. And then you definitely simply let me have a room to remain in after I’m on the town, which was each month.” And so they have been like, “Deal.”
So after just a few months of procuring round, we ended up shopping for a home a bit bit north of Nashville, contained in the river although, contained in the Cumberland River so on the downtown facet. Purchased a bit home, and that was the primary time that I by chance walked into home hacking. It was nice. It served a function for me. It helped them. It was identical to a mutually useful factor that since then I want that I might’ve realized about that previous to being married, as a result of that’s a complete completely different dynamic when you could have a partner concerned in that. However I additionally, that’s one factor that I maintain telling all my buddies is like, “Man, simply purchase a home and fill it together with your buddies and have them pay lease. After which transfer out and fill it with that third buddy to take your spot after which go do it once more.’ It’s simply so easy and also you get the good thing about dwelling there for a few years as your main and shifting on, and tax implications are all completely different.

David:
There’s one thing I feel actually highly effective about you splitting a $250 room, sleeping on a trundle mattress, consuming hen and rice that lights a hearth beneath you to go work onerous since you’re not comfy. Ache is like probably the most highly effective motivator anybody might have. So everybody wakes up with a dream of their coronary heart of some kind, however you went and chased it as a result of sleeping on a trundle mattress, listening to a different man loud night breathing fart all evening isn’t probably the most enjoyable expertise to have, proper? There’s one thing that’s compelling you to go work tougher that truly most likely if you happen to look again, helped you in your investing journey, helped you in your music journey, you bought to have some form of combat in you. And whenever you’re too comfy, you get a W2 job, they put the golden handcuffs on you, all of your cash’s going to lease on this condo advanced, you simply get right into a rut of doing the identical factor on a regular basis.
After which whenever you get out of the home hacking the place you’re sleeping on the trundle mattress, now you present that to any person else. Now another person will get that fireplace that they’re getting to economize. They will transfer out of the home at 20 as a substitute of staying at dwelling till they’re 30 as a result of they’ll’t afford housing they usually simply complain about it on Twitter all day. It’s a greater mannequin to construct. And that’s what I simply love about what you’re saying. You seem like you have been going to remark there.

Corey:
Yeah. What you’re saying about ache being a… Or perhaps discomfort is even a greater phrase for it, being a motivator, yeah, I imply each in actual property, however primarily in music. We must always simply put a giant disclaimer on this complete factor. Actual property is one thing that I do fully on the facet, and that’s one other level that I simply wish to share with pals and friends, is like, this doesn’t need to be your main ardour so as so that you can succeed right here, to ensure that it to be price your time.
However music, I’ve been discomforted so many instances and it’s led to the most important breakthroughs. For instance, throughout COVID, my spouse and I have been shifting to Texas, 2019, and I obtained dropped from my publishing deal, which is basically getting fired. I’ve by no means been fired from something in my life. I obtained dropped from my publishing deal, and the one factor that was maintaining us in Nashville was that contract. And so, we had our first child and our second one was on the way in which and we simply determined, “You recognize what? We wish to increase our household near grandparents and aunts and uncles and cousins. We’re going to maneuver to Texas.” And all people within the music discipline was like, “Hey, the worst factor you could possibly ever do in your music profession is to go away Music Metropolis.”
We determined we’re going to work twice as onerous from Texas, we’ll let God work out the remaining, and we moved. And as quickly as we obtained there, the entire world shuts down for a few years and music is not a viable method to make an revenue. So I obtained confronted with a few various things. One among them was I obtained to decide on between unemployment or taking a brand new job and studying how you can do one thing new. So I ended up going to work at a few completely different locations, labored at a bike store, in the end ended up touchdown at a pavement firm, which is why I known as my document Blacktop. There’s a complete backstory there. However what ended up taking place was in a season of life the place I had little or no revenue and our financial savings was simply fully depleted, I had a property that I used to be capable of promote. And the day that my second daughter was born, we closed on this property and it was the primary time I’d ever offered something. And I simply keep in mind going, “This saved us. This put us able to outlive.”
I hope that an period like COVID by no means occurs once more. And I hope {that a} bunch of individuals which are listening to this weren’t affected in ways in which drastic, nevertheless it fully totaled every thing for us and took us again to sq. zero. And if it weren’t for actual property, my primary hit, my debut document on a significant label, my touring profession, the way in which that I’m capable of present for my household would’ve been useless within the water. So it actually opened up some alternatives for me to simply maintain my dream alive throughout a very powerful time. And a pair years later, issues begin opening up once more and I’m capable of hustle and we now have some rental revenue that complete time, nevertheless it undoubtedly was the factor that saved issues attainable.

David:
All proper. So let’s recap the portfolio that you just’ve constructed, by the way in which, as a facet undertaking together with your music profession exploding. So what’s it seem like now?

Corey:
Yeah. So so as of purchases, we purchased that uncooked land at like $112,000, paid that off in a pair years. That factor’s roughly doubled. We ended up utilizing that afterward down the road, like I mentioned, on that to collateralize the down cost on the Airbnb that we simply offered. We purchased a rental property in downtown Nashville for 319,000, and that might go for upwards of 425,000, 450,000 now. We’re persevering with to lease that as a result of we now have an excellent rate of interest on it and we now have a number of the finest tenants ever. That’s a totally hassle-free, worthwhile, non headache property, which is what I’m going for at this level in my profession.
I feel there’ll come a time the place I’m open to and have extra time to essentially make investments and tackle some harder tasks. However we now have our main residence in Frisco, Texas we purchased at 505,000. And Frisco continues to blow up, so who is aware of the place that one will find yourself? I’ve already obtained out of order, apologies. However we offered a property in Dixon, Tennessee. We bought it at 269,000. Did nothing to it. A pair years later, offered it at 325,000. A few of that’s luck of the timing, however once more, we adopted the college system. We discovered a model new home that wasn’t promoting for some motive, went in and put in a proposal, obtained it beneath asking after which obtained to exit. That was that sale that got here by way of throughout COVID that we simply actually wanted. In order that was excellent timing.
After which what I’ve realized just lately right here in actual property is since our music profession has grown and we’ve began to earn more money, we’ve needed to search for some alternatives to seek out some tax breaks. And so, we purchased a cabin in Damaged Bow, Oklahoma, which is the place all of my household’s land and cattle operation is. We purchased that for $675,000. It’s a short-term rental cabin. It’s lovely. It’s model new. What we did was we did a value seg evaluation on this property they usually discovered far more deductions. And for folks like me, like layman’s phrases, a value seg evaluation mainly lets you depreciate the cupboards and the issues which are going to depreciate and deteriorate sooner than 30 years. So, we have been in a position to do this with a number of the further revenue that we now have coming in now, and it builds our actual property portfolio, nevertheless it additionally lightens our tax burden and it simply helps every thing total.
After which the final piece is we now have a very passive funding in downtown Nashville the place we put… What was it? We put $25,000 into a purchase order of three and a half acres on Demonbreun, which is likely one of the major roads in Nashville and downtown. There’s a bunch of bars and business buildings there now. They’re going to basically let the leases expire and go up and construct multi fam. And so then we’ll have the chance to purchase into that once more on the multi fam facet, or we will exit, or we will simply let our preliminary funding trip.
We’re studying. I simply maintain getting my toes moist and all of those completely different little sectors of actual property. I feel the subsequent factor I actually wish to strive is my buddy and I that purchased that Airbnb, we wish to go into some multi-unit, multi fam, one thing collectively, as a result of we’re simply studying. It’s actually onerous to purchase particular person properties proper now that cashflow with out being very, very hands-on. And that’s not a place I discover myself able to in the mean time. So we’re seeking to study extra and simply take one other swing in another space and continue to grow.

Rob:
That’s superior, man. That’s fairly the journey. I imply, I do know you consider it as type of a facet factor, however given the success and every thing like that, I feel it’s actually encouraging for lots of people at dwelling to hearken to this and perceive that you just don’t need to do actual property full-time to construct wealth and use that wealth to get you out of powerful monetary factors if you happen to ever want it. So it’s actually cool, and I respect you approaching to the present and sharing that with us, man.

Corey:
Yeah, man. Nicely, thanks guys for having me. I do know that I’m undoubtedly an outlier on this present, however I’ve listened to a variety of these and thought to myself like, “Man, these folks have constructed these wonderful portfolios.” However I don’t really feel like I’ve something that’s relatable when it comes to my life stage or what I’ve. And so hopefully, it simply encourages any person who’s on the fence about taking a swing and going for his or her first deal. Hopefully, it encourages them to appreciate that you just don’t need to be as far alongside as you suppose you may to drag the set off the primary time.

David:
Nicely, there’s this cookie cutter method that sometimes will get offered to individuals who don’t wish to put money into actual property. And it actually fashioned, I really feel like, in 2010 after the final crash when all people was afraid. So they might painting actual property in a approach that was much less scary, the place we might say, “Purchase a property, get a pair hundred bucks a month of cashflow. Purchase one other one, do the identical factor. Get 50 of them, and then you definitely’ll have monetary freedom.” You’ve got taken benefit of lots of the ways in which actual property builds wealth and match it into your life, which is profitable in different areas exterior of that cookie cutter mannequin. You got land, which most individuals would by no means even think about doing as a result of land doesn’t cashflow until you’re utilizing it to lift cattle on or pump oil out of or one thing like that. Nicely, that land is doubled in worth. So regardless that you haven’t made cashflow each single month, you’ve made some huge cash from that actual property.
Nicely, if you happen to’re being profitable out of your music profession, you don’t want the land to cashflow. You simply have to have it in an excellent space with good faculties the place it’s going to understand. Then you definitely purchased a short-term rental, which offered some cashflow to make up for a number of the different properties that weren’t doing as nicely, however they have been appreciating in worth. You labored it into an total monetary image and took benefit of a variety of the fairness progress that comes from shopping for properties under market worth and in areas which are rising with out being reliant on the cashflow since you’re on the market being an entrepreneur within the enterprise sense. That’s what I really like concerning the story that you just’re telling right here. You additionally included onerous work and saving money in order that you could possibly put money into actual property reasonably than saying, “Nicely, I’m not prepared to sacrifice my way of life. I need the deal to simply seem at my doorstep and cashflow for me. And if I can’t discover that, nicely then I’m going to maneuver on investing in crypto or one thing.”
So everybody listening, A, observe your dream. Corey’s an amazing instance of that. B, don’t be afraid of being able of ache. That’s okay. It will possibly truly assist inspire you in some ways and create a richer life, which I’m certain helps with regards to your music writing, which you probably did for a very long time, in order that noticed within the C, give attention to constructing expertise and never simply searching for the straightforward approach out. You wrote music for different artists for a very long time earlier than you have been writing your individual songs that have been well-known. And D, have a look at the way in which that actual property does earn cash and make the most of that. As a substitute of making an attempt to drive it to work for what works for you, mould your life round how one can make a few of these issues work and you’ll have related outcomes. An incredible story.

Corey:
Man, yeah. And simply cherry on high, man, superbly mentioned, this doesn’t need to be your primary ardour in life, proper? It will possibly have an amazing supplemental spot in your life that allows you to chase no matter that main dream is. And it has made all of the distinction on the earth for me. I imply, even just lately simply promoting this Airbnb whereas I’m closely reinvesting in my very own touring enterprise and going to tour buses and hiring staff. And as I’m constructing a enterprise fully impartial of actual property, it’s permitting me to reinvest and maintain issues lean on that facet. And I take a number of the wins from actual property and I fund my private life. So it’s simply going to open doorways and it’s going to gasoline these different goals that you just might need in ways in which a variety of issues can’t. In order that’s the very last thing I had so as to add to that. However man, David, that was lovely.

Rob:
Superior, man. Nicely, hey, once more, thanks for sharing your story. And I hope you recognize if you happen to ever want a sofa to crash on, David’s sofa is all the time open, my buddy.

Corey:
Stunning.

Rob:
If folks wish to study extra about you, the place can they join with you? The place can they appear you up, discover all of your stuff? Give us the rundown.

Corey:
Yeah, so my socials on each platform are @CoryKent, C-O-R-E-Y. Each Starbucks barista ever misspells my title, so ensure you get the E. After which, yeah, so it’s @CoreyKent. After which coreykentofficial.com. You discover tour dates, you discover merchandise, all of the music’s there too. After which clearly, we’re on all of the streaming platforms as nicely. Yeah, exterior of that, I’m simply tremendous grateful that you just guys took the time to listen to my story as a result of I simply hope any person on the market that’s on the fence, that is form of that differing issue, that defining issue that will get them to make their first transfer.

David:
One different factor that you just and I’ve in widespread along with consuming boiled hen and rice and sleeping in different folks’s rooms is we now have an pointless E in our names that throws everybody off. I don’t know why there’s an E on the finish of Greene. It doesn’t imply it’s greeny. Cease asking me that. However it’s brought on me-

Rob:
[inaudible].

David:
Sure, it’s brought on me a variety of grief as nicely. The freaking English throwing pointless vowels to phrases.

Corey:
Nicely, I’ve 1,000,000 questions for you, guys. I do know that the podcast was such as you guys internet hosting, however I’ve 1,000,000 questions off digicam that I’m going to be sending you as a result of I really feel like I can study a lot from what you guys have performed. And clearly the present’s superior, so thanks for having me.

David:
Superior, man. We’ll see if we will get your function right down to Seeing Greene episode. We’ll try this too. We’ll have you ever ask some questions on there and everybody can see. So please go try Corey’s Blacktop album. Purchase that. Help him there. And tell us within the feedback what you concentrate on Corey’s story, which occurs to rhyme. Possibly I’ve a songwriting profession in my future as nicely.

Rob:
There’s an Ian story as nicely simply in case anyone’s questioning.

David:
Rob, the place can folks discover out extra about you?

Rob:
Oh, you’ll find me over on Instagram @robuilt or on Threads if you happen to’re stylish. If you happen to’re up and up on the previous interwebs, you’ll find me on YouTube primarily over @robuilt. David, if folks wish to obtain your demo, the place can they try this?

David:
Yeah, you possibly can look me up all over the place @davidgreene24 if you happen to want a ghost author. The actual property market is a bit powerful. Charges are excessive. It’s onerous to seek out offers, so I’m making some additional revenue there. And go try my YouTube @davidgreene24. I’m stay each single Friday evening. So, we respect you guys being right here. Thanks for following the podcast. Be sure you like this and share it. Go try Corey’s album, Blacktop. Corey, any final phrases earlier than we allow you to get out of right here?

Corey:
No man, simply grateful. Nice to speak with you guys. Thanks for rescheduling. That’s all I obtained.

David:
Oh, superior. All proper, that is David Greene for Rob y’all Abasolo signing out.