Simply six years in the past, Corey Kent was a broke school graduate, renting out half of a room to economize, consuming the identical meal on daily basis of the week. His dream was to make a residing as a musician with out promoting out. Now, most nation music followers know Corey’s identify and his platinum report speaks for itself. However what you don’t know is that Corey fueled his music profession due to a handful of properties he purchased years in the past.
Corey’s aspect undertaking actual property portfolio allowed him to launch his music profession, make passive earnings when instances bought robust, and fall on his toes when the world was shut down. Corey was trying to spend money on property at simply seventeen years outdated, however when a financial institution turned him away, he needed to change his total mindset and study the non-public finance recreation from a really early age.
After his grandfather taught him the do’s and don’ts of shopping for uncooked land, Corey slowly constructed his actual property portfolio. Right now, Corey was beneath the poverty line, sleeping in his truck and saving no matter cash he might to speculate. He continued to purchase property, EVEN when instances had been tight, efficiently utilizing his passive earnings to assist him leapfrog into later turning into a chart-topping musician who now can comply with his one true ardour.
David:That is the BiggerPockets Podcast present 809.
Corey:I graduated school. You get to jot down on high of your commencement cap. For me, I wrote, “By no means made a resume” as a result of I went to highschool with the mentality of I’m going to study as a lot as I can and I’m going to community and I’m going to only taking life expertise. For me, I used to be taking in ammunition to jot 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 bought 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 nicely.
David:What’s occurring, everybody? That is David Greene, your host of the BiggerPockets Podcast. And in case you forgot, we’re the largest, the perfect, and the baddest actual property podcast on this planet each week, bringing you tales, how-tos, and solutions that it’s worthwhile to make good selections in actual property now on this present market underneath these present situations, which is the place you bought to make your selections.In the present day, we’ve bought 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 somewhat bit about his music profession and lots about his actual property portfolio. Corey has an unbelievable story from beginning off sleeping in trundle beds, sharing a $250 room with another person and consuming nothing however rooster 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 all the pieces from residing within the nation, shopping for uncooked land, the right way to negotiate, what to search for in these offers, partnering with different individuals, short-term leases. There’s a whole lot of stuff. Rob, what do you assume individuals ought to hold an eye fixed out for to assist them with their very own portfolio success?
Rob:I feel it is a very inspiring episode for a lot of causes, however I feel the primary cause is that Corey actually reiterated all through the episode that actual property has not been his major factor. It’s all the time been considerably of a aspect… Now, I wouldn’t even say aspect hustle as a result of he’s been so profitable at it, but it surely 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 via 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 via actual property in the event you can maintain onto it. And I believed that was simply actually cool.Lots of people listed here are similar to, “We’ve a whole lot of actually inspiring visitors that come on and discuss their mega portfolios and all the pieces like that,” however I additionally assume it’s good to listen to some individuals which can be like, “Yeah, I do that on the aspect and I make a fantastic earnings from it and it helps complement my major job,” which for him occurs to be like a mega profitable music profession.
David:Yeah, Corey talked about how actual property truly bought him via a number of the hardest instances of his profession to get him thus far proper now. So hear all the best way to the tip of immediately’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, immediately’s fast tip is in the event you like Corey’s album, Blacktop, hold 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. When you don’t know the place to start out, presumably take into account excited 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 that you may 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 need to predict the longer term?
Rob:Do I need to predict the longer term? No. However I’ll say that on the barbershop, my haircut 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 truly very humorous. Tell us within the feedback what you concentrate on Rob’s hair, my potential for a Greentop album, and Corey’s interview. Let’s carry him in.Corey Kent, welcome to the BiggerPockets Podcast. Good to have you ever on immediately. For individuals 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, but it surely in all probability wasn’t shopping for a bunch of homes and being cool.
Rob:Nope.
David:Prior to now three years, you’ve achieved six offers. You’ve achieved 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 might barely handle three homes. You’re additionally doing this whereas being a dad. And enjoyable truth, you simply relieved an album known as Blacktop. Everyone 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 whole lot 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 whole lot of time to provide to it. There was some extent the place I used to be somewhat extra… Within the tremendous training, 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’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 over the past two years. And I’d say a tough estimate, I’m spending possibly 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 a whole lot of these properties, whereas early on I used to be attempting to wheel and deal somewhat extra.
Rob:Certain. Certain. I imply, clearly being a musician form of at your degree, your schedule should be form of loopy. So what does a typical week appear 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 dwelling, they’re 5, three, and one. I’m married, so I’ve a whole 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 taking part in 120, 130 exhibits yearly, plus journey days on all sides of these. So we’re gone a pair hundred days a yr.A typical week for me appears like possibly 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, possibly 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 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 report, 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 via 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 once more. So there’s comparatively no routine, however we’re attempting to make some routine out of the loopy life-style that now we have.
Rob:Man, that’s actually cool. Properly, 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 all the way down to earth man, dude. We had been simply chatting earlier than this for a bit. Are you able to inform us somewhat 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 an extended line of entrepreneurs. I feel the principle 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 means into a fantastic life. My grandfather has a giant cattle operation and hundreds of acres. He’s the one which taught me the right way to spend money on 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 checklist worth he tells me was like 300 bucks an acre, and he wished it as a result of he knew the man, his father-in-law owned the piece subsequent door and he mentioned, “If that man needs that property, then I need the property subsequent to it as a result of I feel he’s smart.” He over bids on this property as a result of there’s a number of gives on it. He finally ends up shopping for it at $1,000 an acre, and 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 hundreds of acres. So he was the man that opened my thoughts to, “Wow, there’s issues that I can do outdoors of my day by day job that may assist present for my household. I could be smart 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 personal boss in no matter capability that could 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. Regardless that it’s not probably the most businessy factor that you can 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 lots for you, proper? So, would you say that entrepreneurial mindset influenced your option to pursue music?
Corey:Yeah, completely. Really, I noticed a photograph. I graduated school 2016 from Oklahoma State. You get to jot down on high of your, your commencement cap. It’s form of like a factor there. Properly, for me I wrote “By no means made a resume” on high of my cap as a result of I went to highschool with the mentality of I’m going to study as a lot as I can and I’m going to community and I’m going to only soak up life expertise. For me, I used to be taking in ammunition to jot 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 bought 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 stay 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 nicely.
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 character have all the time been, I suppose, excessive threat tolerant. I simply turned 29, so I see myself as I’ve a place the place I can swing for the fences and strike out and lose all the pieces and nonetheless by 35 rebuild all the pieces. I see the benefit of my age, and subsequently it makes me somewhat extra apt to take some large swings. And particularly popping out of faculty, I used to be like, “Man, I don’t have any cash anyhow. I would as nicely go after what I need to go after. The roles are all the time going to be there. I bought 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 conserving 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. Properly, me and my finest good friend 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 underneath the following. And whereas I used to be residing in that home, on daily basis 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 complete life, man.
Corey:I bear in mind I had a mentor that was like, “Reside like no person else lives now as a way to stay 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 need to have to essentially scrimp and simply get by. I need to have the ability to do the issues that I’ve all the time envisioned doing with my household. And so I’m going to stay actually merely now in order that I can set myself up nicely later.” My mentality has advanced since that time, however I feel 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, nicely, seven years in the past now, the roommates from that home texted me after I signed my report deal, they usually had been like, “Congratulations, man! We’re so comfortable 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 lots.
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 outdated. I don’t know why I believed I might afford that. It simply appeared moderately priced, I suppose. However principally, I went to the financial institution and mentioned, “Hey, I discovered this home. It’s $120,000. I feel I should buy it. I can lease a room out. I can positively deal with this fee.” And so they checked out me they usually had been like, “Completely not. We’re not supplying you with any cash.” And I went, “Why not? I do know I could make this fee. Have a look at my earnings.” Now, it wasn’t nice, but it surely might cowl the fee. And the response was, “Properly, you don’t have any credit score.” And I used to be like, “Properly, how do I get credit score?” And so they had been like, “Properly, you don’t have any, in order that’s going to be robust 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 fantastic reply for me both. So I principally 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 hold the five hundred bucks.” And so they 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 the right way to go get one. So I simply began there. Clearly, I didn’t get to purchase the home. And wouldn’t you recognize it, that very same home, I watched it promote for 400 one thing thousand {dollars} a pair years in the past. So my sniffer was working, however I didn’t have the means to do it, but it surely despatched me down a path of like, I’ve lots that I must study.And I feel that’s why I’m so enthusiastic about… When you discuss to my pals in my band, I’m enthusiastic about serving to individuals make their first buy in actual property as a result of there’s no person that had much less information or useful resource than I did simply on the onset. I simply needed to begin from absolute scratch and go determine the right 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 aspect 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 yr 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 lease one from someone, 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 recognize something about my character, I like that. So I simply felt prefer it was a great 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 earnings 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, possibly, possibly if I used to be fortunate I used to be making like $20,000. That was simply aspect hustles, like singing demos and crashing on good friend’s couches. I used to be sleeping in my truck at this level. Once I overstayed at my welcome on my good friend’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 could 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 lovely. Actually, it’s like a 5 and a half acre subdivided, rolling hills, lovely bushes, property. Mainly, I knew that we couldn’t go trip out and purchase a home at that time, however I knew that I wished to get my toes moist in actual property. My spouse and I, had been residing actually merely and we knew we had somewhat bit of cash that we might both allocate in direction of financial savings or we might allocate in direction of one thing like land. And so, I simply form of clearly talked via this with my spouse and we reframed our mindset to, “This land goes to be our financial savings.”And that opened up our minds somewhat bit, far more than it was to the opportunity of with the ability to put ourselves ready to go buy one thing. As a result of I feel lots of people, not less than individuals my age, their barrier to entry is like, “I’ve to have a ton of cash saved up. I’ve to have extra rolling with the intention to make my first buy. Or I bought to have lots sitting in an account someplace.” And actually what it got here all the way down to is I had made a relationship with a financial institution they usually took an opportunity on me and I purchased this land, and I had it paid off inside two years, even on tremendous low earnings. 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 lots 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 may 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 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 might make the fee. I simply was on precept eager to “win the deal,” win the negotiation. And so I bear in mind my grandfather telling me like, “Hey, each piece of land that I’ve ever bought felt somewhat too costly. And in hindsight, it’s all the time been a great 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 fantastic transfer, but it surely was a… I don’t even know what we might truly get for it. I’ve simply seen what different properties round have bought 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 aspect of your profession beginning to take off? As a result of rewind a bit, and simply the financial institution principally 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, “It’s best to by no means purchase something that you may’t pay for in money” and all that form of stuff. And so this was an actual threat 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 means that I’ve actually ever been in a position to study is firsthand. That was a fantastic studying expertise for me.However what modified was I met someone 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 earnings, however let me present you all the pieces that I’ve.” They had been keen 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 yr outdated child simply knocked out his land mortgage and now he’s asking to purchase a rental property. Yeah, possibly 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 lots after I began. I didn’t make lots after I began. And a very powerful factor I can inform you 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 all the pieces now in my life by, “Can I choose up the cellphone and name or textual content someone?” 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 group member.
Rob:Yeah, that’s an essential ability and arguably a very powerful ability to have as a result of you must perceive who to name as a substitute of attempting to determine the right way to remedy the issue your self. And so yeah, you mentioned this piece of land was about 100,000 bucks. Had been you making extra money 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 only solution to put it’s we discovered this program the place we had been residing in an house in downtown Nashville, my spouse and I. This house 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 house complicated to construct neighborhood. 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 youngsters. We had one on the best way at this level.We simply lived so minimally, however not cheaply. I don’t know the right way to clarify the distinction actually, but it surely 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 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 standard life, however we had been discovering a means creatively to do it actually affordably. And so, as a substitute of spending 1,500 bucks a month on lease, we’re spending 650 I feel is what we had been paying, which is tough to consider now as a result of all the pieces’s so costly. However we simply bought artistic after which took the surplus. And as a substitute of upping our life-style, we put it into this glorified financial savings account known as uncooked land.
Rob:So, you talked about that it checked a whole 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 a number of the 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 techniques. That was the layman’s time period, tremendous easy means for me to determine an space that I believed was going to do nicely over the following 10 years, proper? And that was the one barometer I had for transferring 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 techniques and there have been cities in that county that had been nonetheless fairly undeveloped and had a whole lot of room for progress. And that’s form of how I recognized Fairview. After which as soon as I recognized the city, I had a pair conversations with my grandfather. Fairly easy issues that rang true was like he all the time checked out shopping for properties which have hardwood bushes on them like prompt rebates virtually, as a result of you possibly can have these bushes thinned and make some cash on that, and someone 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, but it surely 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 all the pieces is beginning to… You’ll be able to inform that there’s some youthful {couples} transferring out that means, but it surely 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 college system, that was sufficient to get me on this piece of land. After which I seemed round on the those who had been shopping for properties on both aspect of me and speaking with them. Like one of many properties on the left of us bought. I went and talked to this man. He was a reasonably 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 feel doing all of your due diligence of who’s within the space. It all the time helped me to speak to the neighbors and get a really feel for the world too.
David:As soon as you purchase this land, what do you do with it?
Corey:I’ve achieved 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 be sure that we prefer it first.” So to at the present time, we truly haven’t achieved something with the land. It’s the final remaining vacant lot. There’s like 10 or 15, 5 and a half acre tracks of land, they usually all have model new lovely houses on them. After which there’s our piece.Our plan has form of modified. We purchased this land pondering we’d keep in Tennessee for a very long time, and that wasn’t what ended up taking place. Even earlier than we had the funds to construct a home, that was the dream on that piece of land, we didn’t have the flexibility 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, but it surely’s not all the time what it appears.So we nonetheless have that piece of land, and I feel we’re approaching a section of life the place our children are 5, three and one, and as they grow old, they’ll be rather less excessive upkeep, proper? Most of them are utterly dependent proper now. So I feel we’re approaching a season of life the place we might transfer somewhat 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 form of issues, it’s simply so low. And as soon as it’s paid off, it’s simply the best, most low upkeep factor to carry onto.
David:So failed desires manufactured from shiplap and what you discovered.
Corey:Precisely. And don’t belief HGTV.
David:Normally, sure. Each single particular person that wishes to change into an actual property agent sees it on HGTV, those 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 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 means, 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, now we have views of the mountains.” After which it’s like an hour away from the closest large metropolis Knoxville, and that was coming proper off of COVID, so it was somewhat bit… We had been already corn heating for a yr, 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 robust. It’s robust for positive. It’s lovely, but it surely’s robust.
Corey:It jogged my memory a whole lot of houses, so I truly cherished it, the city that we had been residing in, however… And that is primarily a section of life factor. My spouse would thrive within the nation given the proper circumstances. However a brand new child, remoted, no household, no pals, new metropolis, it was simply robust.
David:Yeah. You want components, you want diapers, you want Robitussin. That’s a complete occasion to should go choose up that stuff. I might completely… Versus when your youngsters are older they usually might go trip a horse or trip 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 be… Wooh!
Corey:Yeah, we discovered 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 transferring 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 principally going backwards and forwards. We had been transitioning to residing in Texas, so I’m coming backwards and forwards 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 good friend’s home one night time crashing on their sofa, and it’s a tiny little place, possibly 700, 800 sq. toes. They cherished the place they lived, however they wished extra space. And so I used to be speaking with them and principally mentioned, “Okay, nicely in the event you don’t thoughts me asking, how a lot do you pay in lease?” And so they advised me and I used to be like, “Man, that looks as if a bit a lot for the tiny spot that you simply guys have right here. Would you guys be keen 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 take care of them. I mentioned, “When you transfer into the home that I purchase, I’ll allow you to choose the world. If we each agree on an space, we’ll purchase the home. I’ll allow you to stay there. I’ll match your lease. And then you definately 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 a number of months of procuring round, we ended up shopping for a home somewhat bit north of Nashville, contained in the river although, contained in the Cumberland River so on the downtown aspect. Purchased somewhat home, and that was the primary time that I by accident walked into home hacking. It was nice. It served a goal for me. It helped them. It was similar to a mutually useful 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 completely different dynamic when you may have a partner concerned in that. However I additionally, that’s one factor that I hold 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 good friend 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 main and transferring on, and tax implications are all completely different.
David:There’s one thing I feel actually highly effective about you splitting a $250 room, sleeping on a trundle mattress, consuming rooster and rice that lights a fireplace underneath you to go work onerous 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 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 night time isn’t probably the most enjoyable expertise to have, proper? There’s one thing that’s compelling you to go work tougher that really 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 house 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 someone else. Now another person will get that fireplace 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 will’t afford housing they usually simply complain about it on Twitter all day. It’s a greater mannequin to construct. And that’s what I simply love about what you’re saying. You appear like you had been going to remark there.
Corey:Yeah. What you’re saying about ache being a… Or possibly 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 utterly on the aspect, and that’s one other level that I simply need 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 price your time.However music, I’ve been discomforted so many instances and it’s led to the largest breakthroughs. For instance, throughout COVID, my spouse and I had been transferring to Texas, 2019, and I bought dropped from my publishing deal, which is actually 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 conserving 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 realize 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 subject was like, “Hey, the worst factor you can ever do on your music profession is to depart 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 now not a viable solution to make an earnings. So I bought confronted with a few various things. Considered one of them was I bought to decide on between unemployment or taking a brand new job and studying the right way to do one thing new. So I ended up going to work at a few completely different locations, labored at a motorbike store, finally ended up touchdown at a pavement firm, which is why I known as my report 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 earnings and our financial savings was simply utterly 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 bought 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, but it surely utterly totaled all the pieces for us and took us again to sq. zero. And if it weren’t for actual property, my primary hit, my debut report 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 hold my dream alive throughout a extremely robust time. And a pair years later, issues begin opening up once more and I’m in a position to hustle and now we have some rental earnings that complete time, but it surely 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 aspect undertaking along with your music profession exploding. So what’s it appear 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 fee on the Airbnb that we simply bought. We purchased a rental property in downtown Nashville for 319,000, and that might go for upwards of 425,000, 450,000 now. We’re persevering with to lease that as a result of now we have a great rate of interest on it and now we have a number of the finest tenants ever. That’s a totally hassle-free, worthwhile, non headache property, which is what I’m going for at this level in my profession.I feel there’ll come a time the place I’m open to and have extra time to essentially make investments and tackle some harder tasks. However now we 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 bought a property in Dixon, Tennessee. We bought it at 269,000. Did nothing to it. A pair years later, bought 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 cause, went in and put in a proposal, bought it underneath asking after which bought to exit. That was that sale that got here via throughout COVID that we simply actually wanted. In order that was good timing.After which what I’ve discovered 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 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 lovely. It’s model new. What we did was we did a value seg evaluation on this property they usually discovered far more deductions. And for individuals like me, like layman’s phrases, a value seg evaluation principally permits you to depreciate the cupboards and the issues which can be going to depreciate and deteriorate sooner than 30 years. So, we had been ready to do this with a number of the further earnings that now we have coming in now, and it builds our actual property portfolio, but it surely additionally lightens our tax burden and it simply helps all the pieces general.After which the final piece is now we have 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 major roads in Nashville and downtown. There’s a bunch of bars and business buildings there now. They’re going to basically let the leases expire and go up and construct multi fam. And so then we’ll have the chance to purchase into that once more on the multi fam aspect, or we are able to exit, or we are able to simply let our preliminary funding trip.We’re studying. I simply hold getting my toes moist and all of those completely different little sectors of actual property. I feel 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 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 meanwhile. 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 aspect factor, however given the success and all the pieces like that, I feel it’s actually encouraging for lots of people at dwelling to take heed 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 robust 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. Properly, thanks guys for having me. I do know that I’m positively an outlier on this present, however I’ve listened to a whole lot of these and thought to myself like, “Man, these individuals have constructed these wonderful 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 someone who’s on the fence about taking a swing and going for his or her first deal. Hopefully, it encourages them to comprehend that you simply don’t should be as far alongside as you assume you may to drag the set off the primary time.
David:Properly, there’s this cookie cutter components that usually will get bought to individuals who don’t need to spend money on actual property. And it actually fashioned, I really feel like, in 2010 after the final crash when everyone was afraid. So they’d painting actual property in a means that was much less scary, the place we might say, “Purchase a property, get a pair hundred bucks a month of cashflow. Purchase one other one, do the identical factor. Get 50 of them, and then you definately’ll have monetary freedom.” You will have taken benefit of most 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 purchased 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. Properly, that land is doubled in worth. So although you haven’t made cashflow each single month, you’ve made some huge cash from that actual property.Properly, in the event you’re making a living out of your music profession, you don’t want the land to cashflow. You simply must have it in a great space with good colleges the place it’s going to understand. Then you definately purchased a short-term rental, which offered some cashflow to make up for a number of the different properties that weren’t doing as nicely, however they had been appreciating in worth. You labored it into an general monetary image and took benefit of a whole lot of the fairness progress that comes from shopping for properties beneath 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 concerning the story that you simply’re telling right here. You additionally included onerous work and saving money in order that you can spend money on actual property fairly than saying, “Properly, I’m not keen to sacrifice my life-style. I need the deal to only seem at my doorstep and cashflow for me. And if I can’t discover that, nicely then I’m going to maneuver on investing in crypto or one thing.”So everybody listening, A, comply with your dream. Corey’s a fantastic instance of that. B, don’t be afraid of being ready of ache. That’s okay. It could possibly truly assist encourage you in some ways and create a richer life, which I’m positive helps on the subject of your music writing, which you probably did for a very long time, in order that noticed within the C, concentrate on constructing abilities and never simply on the lookout for the straightforward means 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 reap the benefits of that. As an alternative of attempting to drive it to work for what works for you, mould your life round how one can make a few of these issues work and you’ll have comparable outcomes. An incredible story.
Corey:Man, yeah. And simply cherry on high, man, fantastically mentioned, this doesn’t should be your primary ardour in life, proper? It could possibly have a fantastic 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 this planet for me. I imply, even 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 utterly unbiased of actual property, it’s permitting me to reinvest and hold issues lean on that aspect. And I take a number of the wins from actual property and I fund my private life. So it’s simply going to open doorways and it’s going to gas these different desires that you simply may need in ways in which a whole 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 lovely.
Rob:Superior, man. Properly, hey, once more, thanks for sharing your story. And I hope you recognize in the event you ever want a sofa to crash on, David’s sofa is all the time open, my good friend.
Corey:Stunning.
Rob:If individuals need to study extra about you, the place can they join with you? The place can they appear you up, discover all of your stuff? Give us the rundown.
Corey:Yeah, so my socials on each platform are @CoryKent, C-O-R-E-Y. Each Starbucks barista ever misspells my identify, so ensure you get the E. After which, yeah, so it’s @CoreyKent. After which coreykentofficial.com. You discover tour dates, you discover merchandise, all of the music’s there too. After which clearly, we’re on all of the streaming platforms as nicely. Yeah, 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 someone 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 frequent along with consuming boiled rooster and rice and sleeping in different individuals’s rooms is now we 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. But it surely’s prompted me-
Rob:[inaudible].
David:Sure, it’s prompted me a whole lot of grief as nicely. The freaking English throwing pointless vowels to phrases.
Corey:Properly, 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 digicam that I’m going to be sending you as a result of I really feel like I can study a lot from what you guys have achieved. And clearly the present’s superior, so thanks for having me.
David:Superior, man. We’ll see if we are able to get your characteristic all the way 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 concentrate on Corey’s story, which occurs to rhyme. Perhaps I’ve a songwriting profession in my future as nicely.
Rob:There’s an Ian story as nicely simply in case anyone’s questioning.
David:Rob, the place can individuals discover out extra about you?
Rob:Oh, yow will discover me over on Instagram @robuilt or on Threads in the event you’re stylish. When you’re up and up on the outdated interwebs, yow will discover me on YouTube primarily over @robuilt. David, if individuals need 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 somewhat robust. Charges are excessive. It’s onerous to search out offers, so I’m making some additional earnings there. And go take a look at my YouTube @davidgreene24. I’m stay each single Friday night time. 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.
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