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 write down on prime of your commencement cap. For me, I wrote, “By no means made a resume” as a result of I went to high school 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 only taking life expertise. For me, I used to be taking in ammunition to write down songs. I knew that’s what I needed to do. And I needed to have an schooling, however I didn’t wish to have a backup plan. So I went and bought an schooling after which I went and chased my dream. That was positively 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 in a position to do fairly effectively.

David:
What’s happening, everybody? That is David Greene, your host of the BiggerPockets Podcast. And in case you forgot, we’re the largest, the most effective, and the baddest actual property podcast on the earth each week, bringing you tales, how-tos, and solutions that you’ll want to make sensible selections in actual property now on this present market below these present circumstances, which is the place you bought to make your selections.
As we speak, we’ve bought 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 little bit bit about his music profession and loads about his actual property portfolio. Corey has an unimaginable 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 immediately and utilizing actual property to complement a few of his wealth together with the household that he’s creating. I imply, we get into the whole lot from residing within the nation, shopping for uncooked land, the way to negotiate, what to search for in these offers, partnering with different folks, short-term leases. There’s quite a lot of stuff. Rob, what do you assume folks ought to maintain an eye fixed out for to assist them with their very own portfolio success?

Rob:
I believe it is a very inspiring episode for a lot of causes, however I believe the primary purpose is that Corey actually reiterated all through the episode that actual property has not been his essential 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 target, it has actually helped him create wealth. It has helped him by means of sure monetary conditions that he confronted throughout COVID. And it simply goes to indicate that investing even in small methods and doing it persistently, you all the time have a plan B by means of actual property in the event you can maintain onto it. And I assumed that was simply actually cool.
Lots of people listed here are similar to, “Now we have quite a lot of actually inspiring friends that come on and discuss their mega portfolios and the whole lot like that,” however I additionally assume it’s good to listen to some folks which might be like, “Yeah, I do that on the facet and I make a terrific revenue from it and it helps complement my essential job,” which for him occurs to be like a mega profitable music profession.

David:
Yeah, Corey talked about how actual property truly bought him by means of among the hardest occasions of his profession to get him up to now proper now. So hear all the best way to the tip of immediately’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, immediately’s fast tip is in the event you like Corey’s album, Blacktop, maintain an eye fixed out for my subsequent album, Greentop. It’ll be even higher. Simply kidding. The true fast tip goes to be, all the time have a look at the varsity system the place you’re going to be shopping for. Should you don’t know the place to start out, presumably take into account fascinated about uncooked land. There’s much less competitors for these belongings. And in the event you’re a price add investor, there’s a number of 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 earnings, 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 is known as the Rob Prime. So for these of you which might be 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 consider Rob’s hair, my potential for a Greentop album, and Corey’s interview. Let’s convey him in.
Corey Kent, welcome to the BiggerPockets Podcast. Good to have you ever on immediately. For many who don’t know Corey, he’s been investing for a complete of six years. He began on the ripe outdated age of twenty-two. Very spectacular. Rob, I don’t know what you had been doing at 22, nevertheless it in all probability wasn’t shopping for a bunch of homes and being cool.

Rob:
Nope.

David:
Up to now three years, you’ve accomplished six offers. You’ve accomplished 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 understand how you probably did that. I may barely handle three homes. You’re additionally doing this whereas being a dad. And enjoyable reality, you simply relieved an album referred to as Blacktop. All people ought to go verify 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. Every part’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 quite a lot of methods. So earlier than we get into your backstory right here, music is among the jobs that takes a lot time and a spotlight. I think about that you simply’re pursuing a extra passive actual property technique. What number of hours per week are you spending in your actual property portfolio at the moment?

Corey:
Yeah, so I’m a really passive actual property investor, that means I don’t have quite a lot of time to provide to it. There was a degree the place I used to be a little 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 in all probability not a match for me simply because my music profession has exploded during the last two years. And I might say a tough estimate, I’m spending perhaps two hours per 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 quite a lot of these properties, whereas early on I used to be attempting to wheel and deal a little bit extra.

Rob:
Certain. Certain. I imply, clearly being a musician form of at your stage, 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 bought three youngsters at residence, they’re 5, three, and one. I’m married, so I’ve quite a lot 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 all sides 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 residence in per week. We’re about to go on tour with Jason Aldean for the following 5 months. I’ll get to go residence, 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. Every part I do has been business-centered, proper? So we needed 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 occasions.
Even after having a primary hit, even after having a platinum file, we nonetheless had been in a van and trailer as a result of we had been constructing it long-term and we needed 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 an alternative of driving ourselves by means of the midnight 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 attempting 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 like to listen to it. You’re a really right down to earth man, dude. We had been simply chatting earlier than this for a bit. Are you able to inform us a little 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 believe the principle lesson that I’ve realized from every of them is you get out of it what you set into it, proper? I’ve seen lots of people in my household hustle their method into a terrific life. My grandfather has a giant cattle operation and 1000’s of acres. He’s the one which taught me the way to spend money on land and what to search for, what he seems for when shopping for property, and that’s the place the true property bug appeared in my life. I simply noticed what he was in a position to construct for himself.
He purchased some property when he was simply beginning a household. The record worth he tells me was like 300 bucks an acre, and he needed 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 would like the property subsequent to it as a result of I believe he’s clever.” He over bids on this property as a result of there’s a number of presents on it. He finally ends up shopping for it at $1,000 an acre, and everyone 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 outdoors of my every day job that may assist present for my household. I may be clever with what I create and I generate to reinvest to additional my life and my household.”
After which outdoors of that, simply seeing the liberty that comes together with being your individual boss in no matter capability that may be. My mother owned a clothes retailer, a ladies’s boutique for 20 one thing years. My dad has his personal regulation agency. For me, I turned a musician and I simply approached it like a enterprise. Despite the fact that it’s not probably the most businessy factor that you may 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 setting, I’m positive it actually influences loads for you, proper? So, would you say that entrepreneurial mindset influenced your option to pursue music?

Corey:
Yeah, completely. Truly, I noticed a photograph. I graduated school 2016 from Oklahoma State. You get to write down on prime 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 prime of my cap as a result of I went to high school 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 only absorb life expertise. For me, I used to be taking in ammunition to write down songs. I knew that’s what I needed to do. And I needed 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 bought an schooling after which I went and chased my dream. That was positively a results of being raised with an open thoughts of like, I can go and begin a enterprise. I can hustle. I can reside 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 in a position to do fairly effectively.

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

Corey:
No, I positively knew what I needed to go after. My mentality and my persona have all the time been, I assume, 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 the whole lot and nonetheless by 35 rebuild the whole lot. I see the benefit of my age, and subsequently it makes me a little bit extra apt to take some huge swings. And particularly popping out of school, I used to be like, “Man, I don’t have any cash in any case. I’d as effectively go after what I wish to go after. The roles are all the time going to be there. I bought my enterprise diploma, however I didn’t wish to accept something lower than what I used to be obsessed with.” 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 holding my dream alive.

David:
Yeah. So music generally is a notoriously fickle enterprise. Do you bear in mind something that you simply did earlier than your profession actually gained some traction to avoid wasting cash, like what you had 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 had been like 250 bucks a room, so it’s already low cost. Nicely, me and my finest pal 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 break up the room. So we had been each residing or sleeping on trundle beds. So one mattress folded below the following. And whereas I used to be residing in that home, daily 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 bear in mind I had a mentor that was like, “Stay like no person else lives now with the intention to reside like nobody else lives later.” And that simply caught with me. I simply bear in mind going, “Okay, after I’m married, when I’ve a household, I don’t wish to have to actually scrimp and simply get by. I would like 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 reside actually merely now in order that I can set myself up effectively later.” My mentality has advanced since that time, however I believe there’s one thing good about being uncomfortable and making your self be artistic. To the extent that my roommates from that home of just about 10, effectively, seven years in the past now, the roommates from that home texted me after I signed my file deal, and so they had been like, “Congratulations, man! We’re so completely happy 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 loads.

David:
So that you moved to Nashville at 17, and that was the primary time that you simply tried to purchase a home. This was your preliminary foray into actual property, which is loopy that you simply’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 may afford to purchase a home at 17 years outdated. I don’t know why I assumed I may afford that. It simply appeared moderately priced, I assume. However mainly, I went to the financial institution and mentioned, “Hey, I discovered this home. It’s $120,000. I believe I can purchase it. I can hire a room out. I can positively deal with this cost.” And so they checked out me and so they had 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 may 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 had 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 a terrific 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 form 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 had 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 the way to go get one. So I simply began there. Clearly, I didn’t get to purchase the home. And wouldn’t 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 loads that I must study.
And I believe that’s why I’m so obsessed with… Should you speak to my pals in my band, I’m obsessed with serving to folks make their first buy in actual property as a result of there’s no person 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 determine the way to get ready to purchase one thing. And I’m tremendous glad that I’ve, as a result of like I mentioned, it set my household up rather well. However that’s the place it began.

Rob:
Yeah. So that you begin increase 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 had 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 bought there, I spotted, “Hey, it’s in all probability cheaper if I purchase a home than to hire 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 something about my persona, I like that. So I simply felt prefer it was a superb wholesome problem and I didn’t assume something of it actually aside 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 break up into thirds. On the store, I am going within the morning, I’d be like, “Are you able to make me bake an egg and cheese $5 footlong and break 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 pal’s couches. I used to be sleeping in my truck at this level. After I overstayed at my welcome on my pal’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 search 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 should at the present time. It’s stunning. Actually, it’s like a 5 and a half acre subdivided, rolling hills, stunning bushes, property. Mainly, I knew that we couldn’t go journey out and purchase a home at that time, however I knew that I needed to get my toes moist in actual property. My spouse and I, had been residing actually merely and we knew we had a little bit bit of cash that we may both allocate in direction of financial savings or we may allocate in direction of one thing like land. And so, I simply form of clearly talked by means 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 little bit bit, far more than it was to the opportunity of having the ability to put ourselves ready to go buy one thing. As a result of I believe lots of people, at the very least 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 bought to have loads sitting in an account someplace.” And actually what it got here right down to is I had made a relationship with a financial institution and so they 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 direction of that with the mentality of, “That is our financial savings account. It’s okay if there’s not loads 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 assume we had a co-signer. Yeah, in truth, I do know we didn’t have a co-signer or something. It was listed at, I wish to say $135,000 and we bought them to 119,000. And I used to be actually feeling defeated by that. I bear 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 may make the cost. I simply was on precept desirous to “win the deal,” win the negotiation. And so I bear in mind my grandfather telling me like, “Hey, every bit of land that I’ve ever bought felt a little bit too costly. And in hindsight, it’s all the time been a superb 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 a terrific transfer, nevertheless it was a… I don’t even know what we may 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 ready to make use of it as collateral to go transfer shortly on different offers even after I didn’t have the money reserves to maneuver shortly.

Rob:
So inform us what modified about your monetary scenario? 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 simply 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 must by no means purchase something which you could’t pay for in money” and all that form of stuff. And so this was an actual threat for me, and so I needed to pay it off as quickly as doable 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 method that I’ve actually ever been in a position to study is firsthand. That was a terrific 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 the whole lot that I’ve.” They had been prepared to do an in-house mortgage, and we did an adjustable price mortgage. It wasn’t a standard mortgage of any type. They had been in a position to simply take an opportunity on a child from Oklahoma, and it was a small Oklahoma financial institution. I didn’t actually comprehend 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 outdated 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 loads after I began. I didn’t make loads 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 the whole lot now in my life by, “Can I decide up the telephone 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 essential talent and arguably crucial talent to have as a result of it’s important to perceive who to name as an alternative of attempting to determine the way to clear up 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 had been in a position to repay that land in two years?

Corey:
No, not likely. Mainly, the best solution to put it’s we discovered this program the place we had been residing in an condo in downtown Nashville, my spouse and I. This condo had a place the place in the event you hosted three occasions a month, you bought 75% off your hire, that means you placed on socials for the condo complicated 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 best way at this level.
We simply lived so minimally, however not cheaply. I don’t know the way to clarify the distinction actually, nevertheless it wasn’t like we had been consuming canned hen and rice nonetheless, proper? We had been residing regular life.

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

Corey:
Completely. We’re nonetheless going out to have a good time issues and we’re residing a traditional life, however we had been discovering a method creatively to do it actually affordably. And so, as an alternative of spending 1,500 bucks a month on hire, we’re spending 650 I believe is what we had been paying, which is difficult to consider now as a result of the whole lot’s so costly. However we simply bought artistic after which took the surplus. And as an alternative of upping our way of life, we put it into this glorified financial savings account referred to as uncooked land.

Rob:
So, you talked about that it checked quite a lot of the 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 had been among the containers you had been checking with this piece of land while you made the supply?

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 varsity methods. That was the layman’s time period, tremendous easy method for me to establish an space that I assumed was going to do effectively over the following 10 years, proper? And that was the one barometer I had for shifting to a distinct state and shopping for actual property. I didn’t know the areas like I do in Oklahoma. So I adopted the varsity system and I knew that Williamson County had nice college methods and there have been cities in that county that had been nonetheless fairly undeveloped and had quite a lot of room for development. 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 immediate 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 large enough for that to actually 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 the whole lot is beginning to… You’ll be able to inform that there’s some youthful {couples} shifting out that method, nevertheless it was very early on. So between like, “All the time bought the mineral rights” and simply stuff that I’ve heard rising up from grandpa coupled with following the varsity system, that was sufficient to get me on this piece of land. After which I appeared round on the people who had 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 fairly 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 believe 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 accomplished completely nothing with it. Actually, we purchased it as a result of my spouse and I needed to maneuver to the nation. We had been residing in downtown Nashville. However my spouse is from Coppell, Texas, which is a suburb of Dallas. And I simply bear 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 guarantee that we prefer it first.” So to at the present time, we truly haven’t accomplished 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, and so they all have model new stunning properties 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 occurring. 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 following 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 residing 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 believe we’re approaching a part of life the place our children 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 believe we’re approaching a season of life the place we may transfer a little 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 residing 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 form 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 desires fabricated from shiplap and what you realized.

Corey:
Precisely. And don’t belief HGTV.

David:
Usually, sure. Each single individual that wishes to grow to be an actual property agent sees it on HGTV, people who 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 method, proper?

Rob:
That was the worst half.

David:
There’s no Chipotle’s anyplace.

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 huge metropolis Knoxville, and that was coming proper off of COVID, so it was a little bit bit… We had been already corn heating for a 12 months, after which we moved out to 52 acres and it form of felt like we had been secluded once more. And so I really feel you, man. It’s powerful. It’s powerful for positive. It’s stunning, nevertheless it’s powerful.

Corey:
It jogged my memory quite a lot of properties, so I truly liked it, the city that we had been residing in, however… And that is primarily a part of life factor. My spouse would thrive within the nation given the appropriate circumstances. However a brand new child, remoted, no household, no pals, new metropolis, it was simply powerful.

David:
Yeah. You want system, you want diapers, you want Robitussin. That’s a complete occasion to should go decide up that stuff. I may completely… Versus when your youngsters are older and so they may go journey a horse or journey 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 also be… Wooh!

Corey:
Yeah, we realized that one firsthand too. Yeah, that was an attention-grabbing 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 residing in Nashville, we purchased the land. Then we examined out residing within the nation by shopping for our main in Dixon, Tennessee. Then the following buy that we made was a rental property in downtown Nashville. I used to be mainly going forwards and backwards. We had been transitioning to residing 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 turned a rental. The land’s nonetheless sitting there.
I’m staying at a pal’s home one evening crashing on their sofa, and it’s a tiny little place, perhaps 700, 800 sq. toes. They liked the place they lived, however they needed more room. And so I used to be speaking with them and mainly mentioned, “Okay, effectively in the event you don’t thoughts me asking, how a lot do you pay in hire?” And so they informed me and I used to be like, “Man, that looks like a bit a lot for the tiny spot that you simply guys have right here. Would you guys be prepared to maneuver?” And so they had been like, “Yeah, truly we’re looking for a spot that’s greater. We simply can’t discover one.” And so, I made a cope with them. I mentioned, “Should you transfer into the home that I purchase, I’ll allow you to decide the world. If we each agree on an space, we’ll purchase the home. I’ll allow you to reside there. I’ll match your hire. And you then simply let me have a room to remain in after I’m on the town, which was each month.” And so they had been like, “Deal.”
So after just a few months of procuring round, we ended up shopping for a home a little bit bit north of Nashville, contained in the river although, contained in the Cumberland River so on the downtown facet. Purchased a little bit home, and that was the primary time that I unintentionally walked into home hacking. It was nice. It served a function for me. It helped them. It was similar to a mutually helpful 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 totally 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 along with your buddies and have them pay hire. After which transfer out and fill it with that third pal to take your spot after which go do it once more.’ It’s simply so easy and also you get the good thing about residing there for a few years as your main and shifting on, and tax implications are all totally different.

David:
There’s one thing I believe actually highly effective about you splitting a $250 room, sleeping on a trundle mattress, consuming hen and rice that lights a hearth below you to go work onerous since you’re not snug. Ache is like probably the most highly effective motivator anybody may have. So everybody wakes up with a dream of their coronary heart of some type, 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 more durable that truly in all probability in the event you 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 while you’re too snug, you get a W2 job, they put the golden handcuffs on you, all of your cash’s going to hire on this condo complicated, you simply get right into a rut of doing the identical factor on a regular basis.
After which while 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 fireside that they’re getting to economize. They will transfer out of the home at 20 as an alternative of staying at residence till they’re 30 as a result of they’ll’t afford housing and so they 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 had 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 should 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 should be your main ardour so as so that you can succeed right here, to ensure that it to be value your time.
However music, I’ve been discomforted so many occasions and it’s led to the largest breakthroughs. For instance, throughout COVID, my spouse and I had been shifting to Texas, 2019, and I bought dropped from my publishing deal, which is basically getting fired. I’ve by no means been fired from something in my life. I bought dropped from my publishing deal, and the one factor that was holding us in Nashville was that contract. And so, we had our first child and our second one was on the best way and we simply determined, “You already know what? We wish to increase our household near grandparents and aunts and uncles and cousins. We’re going to maneuver to Texas.” And everyone within the music discipline was like, “Hey, the worst factor you may 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 determine the remaining, and we moved. And as quickly as we bought there, the entire world shuts down for a few years and music is not a viable solution to make an revenue. So I bought confronted with a few various things. One among them was I bought to decide on between unemployment or taking a brand new job and studying the way to do one thing new. So I ended up going to work at a few totally different locations, labored at a bike store, finally ended up touchdown at a pavement firm, which is why I referred to as my file Blacktop. There’s a complete backstory there. However what ended up occurring 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 in a position to 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 bear in mind going, “This saved us. This put us ready to outlive.”
I hope that an period like COVID by no means occurs once more. And I hope {that a} bunch of individuals which might be listening to this weren’t affected in ways in which drastic, nevertheless it fully totaled the whole lot for us and took us again to sq. zero. And if it weren’t for actual property, my primary hit, my debut file on a significant label, my touring profession, the best way that I’m in a position to present for my household would’ve been lifeless within the water. So it actually opened up some alternatives for me to only maintain my dream alive throughout a very powerful time. And a pair years later, issues begin opening up once more and I’m in a position to hustle and we now have some rental revenue that complete time, nevertheless it positively was the factor that saved issues doable.

David:
All proper. So let’s recap the portfolio that you simply’ve constructed, by the best way, as a facet undertaking along 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 hire that as a result of we now have a superb rate of interest on it and we now have among the finest tenants ever. That’s a very hassle-free, worthwhile, non headache property, which is what I’m going for at this level in my profession.
I believe there’ll come a time the place I’m open to and have extra time to actually make investments and tackle some tougher 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 bought 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 varsity system. We discovered a model new home that wasn’t promoting for some purpose, went in and put in a proposal, bought it below asking after which bought to exit. That was that sale that got here by means of throughout COVID that we simply actually wanted. In order that was excellent timing.
After which what I’ve realized not too long ago right here in actual property is since our music profession has grown and we’ve began to make more cash, we’ve needed to search for some alternatives to search 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 stunning. It’s model new. What we did was we did a price seg evaluation on this property and so they discovered far more deductions. And for folks like me, like layman’s phrases, a price seg evaluation mainly means that you can depreciate the cupboards and the issues which might be going to depreciate and deteriorate sooner than 30 years. So, we had been ready to do this with among the extra 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 the whole lot 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 among the essential roads in Nashville and downtown. There’s a bunch of bars and industrial 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 journey.
We’re studying. I simply maintain getting my toes moist and all of those totally different little sectors of actual property. I believe the following 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 intervening time. So we’re trying 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 form of a facet factor, however given the success and the whole lot like that, I believe it’s actually encouraging for lots of people at residence to hearken to this and perceive that you simply don’t should do actual property full-time to construct wealth and use that wealth to get you out of powerful monetary factors in the event you ever want it. So it’s actually cool, and I admire 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 positively an outlier on this present, however I’ve listened to quite a lot of these and thought to myself like, “Man, these folks have constructed these superb portfolios.” However I don’t really feel like I’ve something that’s relatable by way of 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 simply don’t should be as far alongside as you assume you may to drag the set off the primary time.

David:
Nicely, there’s this cookie cutter system that usually will get offered to individuals who don’t wish to spend money on actual property. And it actually shaped, I really feel like, in 2010 after the final crash when everyone was afraid. So they might painting actual property in a method 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 you then’ll have monetary freedom.” You have 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 outdoors of that cookie cutter mannequin. You acquire land, which most individuals would by no means even take into account doing as a result of land doesn’t cashflow except you’re utilizing it to boost cattle on or pump oil out of or one thing like that. Nicely, that land is doubled in worth. So though you haven’t made cashflow each single month, you’ve made some huge cash from that actual property.
Nicely, in the event you’re creating wealth out of your music profession, you don’t want the land to cashflow. You simply must have it in a superb space with good faculties the place it’s going to understand. Then you definately purchased a short-term rental, which supplied some cashflow to make up for among the different properties that weren’t doing as effectively, however they had been appreciating in worth. You labored it into an total monetary image and took benefit of quite a lot of the fairness development that comes from shopping for properties under market worth and in areas which might be 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 like concerning the story that you simply’re telling right here. You additionally integrated onerous work and saving money in order that you may spend money on actual property slightly than saying, “Nicely, I’m not prepared to sacrifice my way of life. I would like the deal to only seem at my doorstep and cashflow for me. And if I can’t discover that, effectively then I’m going to maneuver on investing in crypto or one thing.”
So everybody listening, A, comply with your dream. Corey’s a terrific instance of that. B, don’t be afraid of being ready of ache. That’s okay. It might probably truly assist encourage you in some ways and create a richer life, which I’m positive helps in relation to your music writing, which you probably did for a very long time, in order that noticed within the C, deal with constructing abilities and never simply searching for the straightforward method out. You wrote music for different artists for a very long time earlier than you had been writing your individual songs that had been well-known. And D, have a look at the best way that actual property does generate income and make the most of that. As a substitute of attempting to power it to work for what works for you, mould your life round how one can make a few of these issues work and you may have related outcomes. An important story.

Corey:
Man, yeah. And simply cherry on prime, man, superbly mentioned, this doesn’t should be your primary ardour in life, proper? It might probably have a terrific 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 not too long ago simply promoting this Airbnb whereas I’m closely reinvesting in my very own touring enterprise and going to tour buses and hiring workers. 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 among 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 desires that you simply might need in ways in which quite a lot 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 stunning.

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

Corey:
Stunning.

Rob:
If folks wish to study extra about you, the place can they join with you? The place can they give the impression of being 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 be sure 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 effectively. Yeah, outdoors of that, I’m simply tremendous grateful that you simply 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 simply 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 induced me-

Rob:
[inaudible].

David:
Sure, it’s induced me quite a lot of grief as effectively. 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 digital camera 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 accomplished. 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 take a look at Corey’s Blacktop album. Purchase that. Help him there. And tell us within the feedback what you consider Corey’s story, which occurs to rhyme. Possibly I’ve a songwriting profession in my future as effectively.

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

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

Rob:
Oh, you will discover me over on Instagram @robuilt or on Threads in the event you’re fashionable. Should you’re up and up on the outdated interwebs, you will discover 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 in the event you want a ghost author. The true property market is a little bit powerful. Charges are excessive. It’s onerous to search out offers, so I’m making some additional revenue there. And go take a look at my YouTube @davidgreene24. I’m reside each single Friday evening. So, we admire you guys being right here. Thanks for following the podcast. Ensure you like this and share it. Go take a look at 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 bought.

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