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 wished to do. And I wished to have an training, however I didn’t need to have a backup plan. So I went and obtained an training 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 most important, the perfect, and the baddest actual property podcast on the earth each week, bringing you tales, how-tos, and solutions that it is advisable to make good choices in actual property now on this present market below these present circumstances, which is the place you bought to make your choices.
Right now, we’ve obtained an superior present for you. Rob and I are joined by Corey Kent, a rustic music singer whose profession is exploding. Try his album Blacktop. He’s going to be touring with Jason Aldean and we talked slightly 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 rooster and rice to being one of many greatest stars in nation music right now 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, tips on how to 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 assume folks ought to maintain an eye fixed out for to assist them with their very own portfolio success?

Rob:
I believe this can be a very inspiring episode for a lot of causes, however I believe the primary motive 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, however 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 means 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 means of actual property in the event you can maintain onto it. And I believed that was simply actually cool.
Lots of people listed here are identical to, “Now we have a variety of actually inspiring friends that come on and speak about their mega portfolios and the whole lot like that,” however I additionally assume it’s good to listen to some folks which can be like, “Yeah, I do that on the facet and I make an important 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 really obtained him by means of among the hardest instances of his profession to get him thus far proper now. So pay attention all the best way to the tip of right now’s present since you’re going to need to hear Corey’s full story.

Rob:
You’re going to need to how?

David:
You’re going to need to hear it. However earlier than we get to Corey, right now’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 take a look at the college system the place you’re going to be shopping for. In the event you don’t know the place to begin, presumably take into account enthusiastic about uncooked land. There’s much less competitors for these property. And in the event you’re a worth 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 need to predict the long run?

Rob:
Do I need 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 can be asking like, “Hey, what did I inform my barber?” I simply name it the Rob Prime.

David:
That’s really 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 right now. 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 had been doing at 22, however it in all probability wasn’t shopping for a bunch of homes and being cool.

Rob:
Nope.

David:
Prior to now three years, you’ve finished six offers. You’ve finished 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 really doing right here. We’ll allow you to speak about your profession in a minute. You’re a father of three children. Don’t understand how 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 referred to as Blacktop. All people ought to go test 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 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 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 a variety of time to present to it. There was some extent the place I used to be slightly extra… Within the tremendous training, I knew nothing, and I needed to educate myself. In order that was a time frame the place I used to be spending much more time per week on it. I’d 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’d 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 method to a variety of these properties, whereas early on I used to be attempting to wheel and deal slightly 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 could be as hectic because it’s ever been. Clearly, you stated I obtained three children 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 taking part in 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 appears like perhaps if I’m fortunate, I’ve two or three days at dwelling in per week. We’re about to go on tour with Jason Aldean for the following 5 months. I’ll get to go dwelling, I don’t know, perhaps 20 days whole 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 wished to go to a bus, however we didn’t need 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 had been in a van and trailer as a result of we had 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 means 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 another time. So there’s comparatively no routine, however we’re attempting to make some routine out of the loopy life-style that we’ve got.

Rob:
Man, that’s actually cool. Nicely, everybody stick round till the very finish as a result of Corey’s really 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 slightly 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 primary lesson that I’ve discovered 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 an important life. My grandfather has a giant cattle operation and 1000’s of acres. He’s the one which taught me tips on how to put money into land and what to search for, what he appears for when shopping for property, and that’s the place the actual 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 value 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 stated, “If that man needs that property, then I would like the property subsequent to it as a result of I believe he’s sensible.” He over bids on this property as a result of there’s a number of provides 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 exterior of my day by day job that may assist present for my household. I might be sensible 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 personal boss in no matter capability that may be. My mother owned a clothes retailer, a girls’s boutique for 20 one thing years. My dad has his personal regulation agency. For me, I grew to become a musician and I simply approached it like a enterprise. Although it’s not probably the most businessy factor that you would 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 surroundings, 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 wished to do. And I wished to have an training, however I didn’t need to have a backup plan. So I didn’t apply for jobs, I didn’t make a resume. I went and obtained an training 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 need 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 wished to go after. My mentality and my persona have all the time been, I suppose, excessive danger 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 slightly 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 in any case. I’d as effectively go after what I need to go after. The roles are all the time going to be there. I obtained my enterprise diploma, however I didn’t need 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 extremely cool place in my journey of simply maintaining 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 really 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, day by day I ate canned rooster and rice for lunch and dinner.

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

Corey:
I bear in mind I had a mentor that was like, “Reside like no one else lives now as a way to reside like nobody else lives later.” And that simply caught with me. I simply bear in mind going, “Okay, once I’m married, when I’ve a household, I don’t need to have to essentially 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 inventive. To the extent that my roommates from that home of virtually 10, effectively, seven years in the past now, the roommates from that home texted me after I signed my document deal, and so they had been like, “Congratulations, man! We’re so glad for you. Does this imply you’re not consuming canned rooster 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 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 stated, “Hey, I discovered this home. It’s $120,000. I believe I should buy it. I can lease a room out. I can positively deal with this fee.” They usually 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 fee. Have a look at my revenue.” Now, it wasn’t nice, however it might cowl the fee. 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?” They usually 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 dad and mom, I stated, “How do I get credit score? How do I set up credit score as a 17-year-old child?” And my dad and mom actually didn’t have an important reply for me both. So I mainly walked again into the financial institution and I stated, “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’ll be able to maintain the five hundred bucks.” They usually had been like, “Oh, a secured line of credit score.” It’s like no matter you need 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 tips on how to go get one. So I simply began there. Clearly, I didn’t get to purchase the home. And wouldn’t you realize 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, however it despatched me down a path of like, I’ve loads that I must study.
And I believe that’s why I’m so enthusiastic about… In the event you speak 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 determine tips on how to get ready to purchase one thing. And I’m tremendous glad that I’ve, as a result of like I stated, it set my household up very 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 keen 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 once I obtained there, I noticed, “Hey, it’s in all probability 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 as if a problem.” Which if you realize something about my persona, I like that. So I simply felt prefer it was an excellent wholesome problem and I didn’t assume something of it actually apart from, “I need 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’m 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. Once 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 seek out methods to navigate round your circumstances. And some years later, I used to be shopping for land and simply stored going.

David:
So your first official actual property deal wasn’t really 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 must at the present time. It’s lovely. Actually, it’s like a 5 and a half acre subdivided, rolling hills, lovely timber, property. Principally, I knew that we couldn’t go journey 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, had been residing actually merely and we knew we had slightly 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 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 slightly bit, rather more than it was to the potential of with 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 obtained 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 the 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 price? Did you will 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 reality, I do know we didn’t have a co-signer or something. It was listed at, I need to say $135,000 and we obtained 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 might make the fee. 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 slightly 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 value. So it’s been an important transfer, however it was a… I don’t even know what we might really 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 once 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 stated no, proper? They usually’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 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 danger for me, and so I wished 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 discovered about fairness jail, proper? I’m tying up all of this cash into one thing. I’m undecided it was the wisest use, however the one method that I’ve actually ever been in a position to study is firsthand. That was an important 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 standard revenue, however let me present you the whole lot that I’ve.” They had been keen to do an in-house mortgage, and we did an adjustable charge mortgage. It wasn’t a traditional mortgage of any kind. 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 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 loads once I began. I didn’t make loads once 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 choose 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 need 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 workforce member.

Rob:
Yeah, that’s an vital ability and arguably crucial ability to have as a result of you need to perceive who to name as a substitute of attempting to determine tips on how to clear up the issue your self. And so yeah, you stated 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, probably not. Principally, the only method to put it’s we discovered this program the place we had been residing in an condominium in downtown Nashville, my spouse and I. This condominium had a place the place in the event you hosted three occasions a month, you bought 75% off your lease, that means you placed on socials for the condominium complicated to construct group. And so, we took that place and I used to be writing songs, so I had a extremely 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 children. We had one on the best way at this level.
We simply lived so minimally, however not cheaply. I don’t know tips on how to clarify the distinction actually, however it wasn’t like we had been consuming canned rooster and rice nonetheless, proper? We had been residing regular life.

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

Corey:
Completely. We’re nonetheless going out to have fun issues and we’re residing a standard life, however we had been discovering a method 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 believe is what we had been paying, which is difficult to imagine now as a result of the whole lot’s so costly. However we simply obtained inventive after which took the surplus. And as a substitute of upping our life-style, we put it into this glorified financial savings account referred to 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 speak about a few of that? What had been among the packing containers you had been checking with this piece of land whenever you made the supply?

Corey:
Yeah, I imply the primary… That is form of one thing that I’ve discovered, 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 method for me to establish an space that I believed 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 college system and I knew that Williamson County had nice faculty programs and there have been cities in that county that had 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 timber on them like on the spot rebates nearly, as a result of you’ll be able to have these timber 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 essentially play a giant issue, however 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 may inform that there’s some youthful {couples} shifting out that method, however 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 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 truthfully, 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 realm too.

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

Corey:
I’ve finished completely nothing with it. Truthfully, we purchased it as a result of my spouse and I wished 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 make it possible for we prefer it first.” So to at the present time, we really haven’t finished 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 lovely 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 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 following buy was we purchased a major 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, however 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 youngsters are 5, three and one, and as they grow old, 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 might transfer slightly additional out and be on some acres and actually take pleasure in 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 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 desires product of shiplap and what you discovered.

Corey:
Precisely. And don’t belief HGTV.

David:
Typically, sure. Each single individual that wishes to grow to be an actual property agent sees it on HGTV, people who take 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 really transfer out to the nation and also you’re like, “Oh, there’s a septic tank. There’s mosquitoes in all places.” 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 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’ve got 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 slightly 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 lovely, however it’s powerful.

Corey:
It jogged my memory a variety of properties, so I really beloved 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 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 must go choose up that stuff. I might completely… Versus when your children are older and so they might go journey a horse or journey a mud bike round or go fishing someplace shut.

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

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

Corey:
Yeah, we discovered 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 residing in Nashville, we purchased the land. Then we examined out residing within the nation by shopping for our major 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 major residence in Dixon, in order that grew to become 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 beloved the place they lived, however they wished more room. And so I used to be speaking with them and mainly stated, “Okay, effectively in the event you don’t thoughts me asking, how a lot do you pay in lease?” They usually instructed me and I used to be like, “Man, that looks as if a bit a lot for the tiny spot that you simply guys have right here. Would you guys be keen to maneuver?” They usually had been like, “Yeah, really we’re looking for a spot that’s greater. We simply can’t discover one.” And so, I made a cope with them. I stated, “In the event you transfer into the home that I purchase, I’ll allow you to choose the realm. If we each agree on an space, we’ll purchase the home. I’ll allow you to reside there. I’ll match your lease. And then you definitely simply let me have a room to remain in once I’m on the town, which was each month.” They usually had been like, “Deal.”
So after just a few months of buying round, we ended up shopping for a home slightly bit north of Nashville, contained in the river although, contained in the Cumberland River so on the downtown facet. Purchased slightly 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 helpful factor that since then I want that I’d’ve discovered about that previous to being married, as a result of that’s a complete totally different dynamic when you will 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 lease. 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 advantage of residing there for a few years as your major 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 rooster and rice that lights a hearth below you to go work arduous since you’re not snug. 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 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 battle in you. And whenever you’re too snug, you get a W2 job, they put the golden handcuffs on you, all of your cash’s going to lease on this condominium complicated, 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 fireside that they’re getting to economize. They’ll 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 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 entire factor. Actual property is one thing that I do fully on the facet, and that’s one other level that I simply need to share with pals and friends, is like, this doesn’t must be your major 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 instances and it’s led to the most important breakthroughs. For instance, throughout COVID, my spouse and I had been shifting to Texas, 2019, and I obtained dropped from my publishing deal, which is actually 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 best way and we simply determined, “You recognize what? We need to increase our household near grandparents and aunts and uncles and cousins. We’re going to maneuver to Texas.” And everyone within the music area was like, “Hey, the worst factor you would ever do on your music profession is to depart Music Metropolis.”
We determined we’re going to work twice as arduous from Texas, we’ll let God determine the remainder, and we moved. And as quickly as we obtained there, the entire world shuts down for a few years and music is now not a viable method to make an revenue. So I obtained confronted with a few various things. Certainly one of them was I obtained to decide on between unemployment or taking a brand new job and studying tips on how to do one thing new. So I ended up going to work at a few totally different locations, labored at a motorbike store, finally ended up touchdown at a pavement firm, which is why I referred to 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 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 can be listening to this weren’t affected in ways in which drastic, however 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 document on a significant label, my touring profession, the best way that I’m in a position to present for my household would’ve been useless within the water. So it actually opened up some alternatives for me to only maintain my dream alive throughout a extremely powerful time. And a pair years later, issues begin opening up once more and I’m in a position to hustle and we’ve got some rental revenue that entire time, however it positively was the factor that stored issues doable.

David:
All proper. So let’s recap the portfolio that you simply’ve constructed, by the best way, as a facet challenge 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 in a while down the road, like I stated, on that to collateralize the down fee on the Airbnb that we simply offered. We purchased a rental property in downtown Nashville for 319,000, and that may go for upwards of 425,000, 450,000 now. We’re persevering with to lease that as a result of we’ve got an excellent rate of interest on it and we’ve got 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 essentially make investments and tackle some tougher tasks. However we’ve got our major 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 suggestion, obtained it below asking after which obtained to exit. That was that sale that got here by means of throughout COVID that we simply actually wanted. In order that was good timing.
After which what I’ve discovered 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 and so they discovered far more deductions. And for folks like me, like layman’s phrases, a value seg evaluation mainly means that you can depreciate the cupboards and the issues which can be going to depreciate and deteriorate sooner than 30 years. So, we had been ready to try this with among the further revenue that we’ve got coming in now, and it builds our actual property portfolio, however it additionally lightens our tax burden and it simply helps the whole lot general.
After which the final piece is we’ve got a extremely 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 essential roads in Nashville and downtown. There’s a bunch of bars and industrial buildings there now. They’re going to primarily 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 need to attempt is my buddy and I that purchased that Airbnb, we need to go into some multi-unit, multi fam, one thing collectively, as a result of we’re simply studying. It’s actually arduous 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 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 the whole lot like that, I believe it’s actually encouraging for lots of people at dwelling to take heed to this and perceive that you simply don’t must 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 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 simply don’t must be as far alongside as you assume you may to tug the set off the primary time.

David:
Nicely, there’s this cookie cutter method that usually will get offered to individuals who don’t need to put money into 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’d 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 take into account doing as a result of land doesn’t cashflow until you’re utilizing it to boost cattle on or pump oil out of or one thing like that. Nicely, that land is doubled in value. So although you haven’t made cashflow each single month, you’ve made some huge cash from that actual property.
Nicely, in the event you’re being profitable out of your music profession, you don’t want the land to cashflow. You simply must have it in an excellent 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 general 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 can 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 in regards to the story that you simply’re telling right here. You additionally included arduous work and saving money in order that you would put money into actual property reasonably than saying, “Nicely, I’m not keen to sacrifice my life-style. 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, observe your dream. Corey’s an important instance of that. B, don’t be afraid of being ready of ache. That’s okay. It might probably really assist encourage you in some ways and create a richer life, which I’m positive 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 in search of the simple method out. You wrote music for different artists for a very long time earlier than you had been writing your personal songs that had been well-known. And D, take a look at the best way that actual property does become profitable and benefit from that. As a substitute of attempting to pressure 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. A terrific story.

Corey:
Man, yeah. And simply cherry on prime, man, superbly stated, this doesn’t must be your primary ardour in life, proper? It might probably have an important supplemental spot in your life that allows you to chase no matter that major 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 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 gas these different desires that you simply may 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 realize 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 need 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 identify, 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, exterior 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 rooster and rice and sleeping in different folks’s rooms is we’ve got 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. But it surely’s brought on me-

Rob:
[inaudible].

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

Corey:
Nicely, I’ve one million questions for you, guys. I do know that the podcast was such as you guys internet hosting, however I’ve one million 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 finished. And clearly the present’s superior, so thanks for having me.

David:
Superior, man. We’ll see if we will get your characteristic 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. Assist him there. And tell us within the feedback what you concentrate on Corey’s story, which occurs to rhyme. Perhaps 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’ll find me over on Instagram @robuilt or on Threads in the event you’re fashionable. In the event you’re up and up on the previous interwebs, you’ll find me on YouTube primarily over @robuilt. David, if folks need to obtain your demo, the place can they try this?

David:
Yeah, you’ll be able to look me up in all places @davidgreene24 in the event you want a ghost author. The true property market is slightly powerful. Charges are excessive. It’s arduous to seek out offers, so I’m making some further revenue there. And go try 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 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.