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 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 be taught as a lot as I can and I’m going to community and I’m going to simply taking life expertise. For me, I used to be taking in ammunition to write down songs. I knew that’s what I needed to do. And I needed to have an training, however I didn’t wish to have a backup plan. So I went and received 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 most effective, and the baddest actual property podcast on the planet each week, bringing you tales, how-tos, and solutions that it’s essential make sensible choices in actual property now on this present market beneath these present circumstances, which is the place you bought to make your choices.
Right this moment, we’ve received 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 lots 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 in the present day 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, methods 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 suppose folks ought to preserve a watch out for to assist them with their very own portfolio success?

Rob:
I feel this can be a very inspiring episode for a lot of causes, however I feel the primary purpose is that Corey actually reiterated all through the episode that actual property has not been his predominant 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 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 should you can maintain onto it. And I assumed that was simply actually cool.
Lots of people listed here are identical to, “We’ve a variety of actually inspiring company that come on and speak about their mega portfolios and all the pieces like that,” however I additionally suppose it’s good to listen to some folks which are like, “Yeah, I do that on the facet and I make an awesome revenue from it and it helps complement my predominant job,” which for him occurs to be like a mega profitable music profession.

David:
Yeah, Corey talked about how actual property really received him via a few of the hardest instances of his profession to get him thus far proper now. So hear all the best way to the top of in the present day’s present since you’re going to wish to hear Corey’s full story.

Rob:
You’re going to wish to how?

David:
You’re going to wish to hear it. However earlier than we get to Corey, in the present day’s fast tip is should you like Corey’s album, Blacktop, preserve a watch out for my subsequent album, Greentop. It’ll be even higher. Simply kidding. The true fast tip goes to be, all the time have a look at the varsity system the place you’re going to be shopping for. Should you don’t know the place to start out, presumably think about fascinated with uncooked land. There’s much less competitors for these property. And should you’re a price add investor, there’s a lot of methods you could purchase uncooked land, enhance it, after which promote it to a developer for fairly the good-looking revenue. Talking of good-looking earnings, Rob, do you wish to predict the long run?

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

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

Rob:
Nope.

David:
Previously three years, you’ve completed six offers. You’ve completed long-term leases, short-term leases, invested in land and home hacked all whereas being a musician by day. And that’s sort 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 know the way you probably did that. I might barely handle three homes. You’re additionally doing this whereas being a dad. And enjoyable truth, you simply relieved an album known as Blacktop. Everyone ought to go verify that out as you’re listening to the present. Google Corey Kent Blacktop and get that. Thanks for being right here with us, Corey.

Corey:
Man, so excited. A fan of the present and clearly have some actual property pursuits. All the things’s sort 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 focus. 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 present?

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 most likely 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 making an attempt to wheel and deal slightly extra.

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

Corey:
Oh, man. A typical week proper now could be as hectic because it’s ever been. Clearly, you stated I received three children at house, 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 either side of these. So we’re gone a pair hundred days a yr.
A typical week for me seems like perhaps if I’m fortunate, I’ve two or three days at house in per week. We’re about to go on tour with Jason Aldean for the subsequent 5 months. I’ll get to go house, 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. All the things I do has been business-centered, proper? So we needed to go to a bus, however we didn’t wish to go into debt to go to a bus. So we put it to a band vote a handful of instances.
Even after having a primary hit, even after having a platinum report, we nonetheless have been in a van and trailer as a result of we have been constructing it long-term and we needed it to be sustainable. And so we simply now went to a bus, and that has been life-changing as a result of my days, as an alternative of driving ourselves 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 making an attempt to make some routine out of the loopy way of life that we have now.

Rob:
Man, that’s actually cool. Effectively, 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 have 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 an extended line of entrepreneurs. I feel the primary lesson that I’ve discovered from every of them is you get out of it what you place into it, proper? I’ve seen lots of people in my household hustle their approach into an awesome life. My grandfather has a giant cattle operation and hundreds of acres. He’s the one which taught me methods to put money into land and what to search for, what he seems for when shopping for property, and that’s the place the actual property bug appeared in my life. I simply noticed what he was 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 needed it as a result of he knew the man, his father-in-law owned the piece subsequent door and he stated, “If that man desires that property, then I need the property subsequent to it as a result of I feel he’s sensible.” He over bids on this property as a result of there’s a number of gives on it. He finally ends up shopping for it at $1,000 an acre, and all people thought he was completely insane. And now frontage on the street within the city, it’s going for 120,000 to $250,000 an acre on this city. Now, granted that’s 50 years later, however he purchased up hundreds of acres. So he was the man that opened my thoughts to, “Wow, there’s issues that I can do outdoors of my each day job that may assist present for my household. I may be sensible 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 is perhaps. My mother owned a clothes retailer, a ladies’s boutique for 20 one thing years. My dad has his personal legislation agency. For me, I turned a musician and I simply approached it like a enterprise. Despite the fact that it’s not essentially the most businessy factor that you may do, it’s what my skillset was, and I’ve loved the liberty that comes together with controlling my very own time.

Rob:
Yeah, man, that’s actually cool. Yeah, I imply, having a household of entrepreneurs develop up in that setting, I’m positive it actually influences lots 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 high of your, your commencement cap. It’s sort of like a factor there. Effectively, 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 be taught as a lot as I can and I’m going to community and I’m going to simply soak up life expertise. For me, I used to be taking in ammunition to write down songs. I knew that’s what I needed to do. And I needed to have an training, however I didn’t wish to have a backup plan. So I didn’t apply for jobs, I didn’t make a resume. I went and received 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 wish to go, till I get my enterprise off the bottom. And it took fairly some time, however I used to be in a position to do fairly effectively.

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

Corey:
No, I positively knew what I needed to go after. My mentality and my persona have all the time been, I assume, excessive 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 all the pieces and nonetheless by 35 rebuild all the pieces. I see the benefit of my age, and subsequently it makes me slightly extra apt to take some massive swings. And particularly popping out of faculty, I used to be like, “Man, I don’t have any cash anyhow. I would as effectively go after what I wish to go after. The roles are all the time going to be there. I received my enterprise diploma, however I didn’t wish to accept something lower than what I used to be keen about.” And that’s the place this podcast and actual property, and that’s why I’m right here, is as a result of actual property enabled me to maintain chasing that dream even when the dream wasn’t paying for itself. And so it has a very cool place in my journey of simply protecting my dream alive.

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

Corey:
Oh, man. Yeah. I’ve a horrible instance for you, however really it was so prevalent. We had a home. A bunch of my buddies and I had a home in school and the rooms have been like 250 bucks a room, so it’s already low cost. Effectively, me and my greatest 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 cut up the room. So we have been each residing or sleeping on trundle beds. So one mattress folded beneath the subsequent. And whereas I used to be residing in that home, daily 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 keep in mind I had a mentor that was like, “Stay like no one else lives now in an effort to stay like nobody else lives later.” And that simply caught with me. I simply keep in mind going, “Okay, once I’m married, when I’ve a household, I don’t wish to have to essentially scrimp and simply get by. I need to have the ability to do the issues that I’ve all the time envisioned doing with my household. And so I’m going to stay actually merely now in order that I can set myself up effectively later.” My mentality has advanced since that time, however I feel there’s one thing good about being uncomfortable and making your self be inventive. To the extent that my roommates from that home of just about 10, effectively, seven years in the past now, the roommates from that home texted me after I signed my report deal, and so they have 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 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 sort of the place that I felt like I might afford to purchase a home at 17 years outdated. I don’t know why I assumed I might afford that. It simply appeared fairly priced, I assume. However mainly, I went to the financial institution and stated, “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.” They usually checked out me and so they have 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 revenue.” Now, it wasn’t nice, however it might cowl the fee. And the response was, “Effectively, you don’t have any credit score.” And I used to be like, “Effectively, how do I get credit score?” They usually have been like, “Effectively, you don’t have any, in order that’s going to be robust 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 awesome 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 possibly can preserve the five hundred bucks.” They usually have been like, “Oh, a secured line of credit score.” It’s like no matter you wish to name it, proper? And that’s the first time that I actually even knew what credit score was. That sounds horrible. I knew what a bank card was and what it did, however I didn’t know methods 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, however it despatched me down a path of like, I’ve lots that I must be taught.
And I feel that’s why I’m so keen about… Should you discuss to my mates in my band, I’m keen 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 methods 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 build up the credit score facet of issues. You clearly get rejected on this home, however what’s that second like? Are you defeated and are you want, “Okay, this isn’t for me”? Or have been you simply prepared to undergo the method to get you to the primary home? What was that mindset at the moment?

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

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

Corey:
Oh my gosh. At 17, dude, I used to be actually consuming subway $5 footlongs and having them cut up into thirds. On the store, I’m going within the morning, I’d be like, “Are you able to make me bake an egg and cheese $5 footlong and cut up it into thirds?” as a result of that’s breakfast, lunch and dinner. I imply, perhaps, perhaps if I used to be fortunate I used to be making like $20,000. That was simply facet hustles, like singing demos and crashing on 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 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 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 should at the present time. It’s lovely. Actually, it’s like a 5 and a half acre subdivided, rolling hills, lovely bushes, property. Principally, I knew that we couldn’t go journey out and purchase a home at that time, however I knew that I needed to get my ft moist in actual property. My spouse and I, have been residing actually merely and we knew we had slightly 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 sort 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 slightly bit, way more than it was to the opportunity of having the ability to put ourselves ready to go buy one thing. As a result of I feel 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 with a view to make my first buy. Or I received to have lots sitting in an account someplace.” And actually what it got here right down to is I had made a relationship with a financial institution and so they took an opportunity on me and I purchased this land, and I had it paid off inside two years, even on tremendous low revenue. I simply put each spare greenback that we had in direction of that with the mentality of, “That is our financial savings account. It’s okay if there’s not 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 price? Did you’ve gotten any companions on it? Was it simply yours?

Corey:
Yeah, so no companions on the land. I don’t suppose we had a co-signer. Yeah, the truth is, I do know we didn’t have a co-signer or something. It was listed at, I wish to say $135,000 and we received them to 119,000. And I used to be actually feeling defeated by that. I keep in mind going, “Man, if I can’t get this at $100,000, then I really feel prefer it’s simply too costly.” However I knew we might make the fee. I simply was on precept eager to “win the deal,” win the negotiation. And so I keep in mind my grandfather telling me like, “Hey, every bit of land that I’ve ever bought felt slightly 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 value. So it’s been an awesome 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 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 rapidly on different offers even once I didn’t have the money reserves to maneuver rapidly.

Rob:
So inform us what modified about your monetary state of affairs? Was the music facet of your profession beginning to take off? As a result of rewind a bit, and simply the financial institution mainly 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 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 needed to pay it off as quickly as doable as a result of I felt like there was a monkey on my again. And that’s how I discovered about fairness jail, proper? I’m tying up all of this cash into one thing. I’m unsure it was the wisest use, however the one approach that I’ve actually ever been in a position to be taught is firsthand. That was an awesome studying expertise for me.
However what modified was I met someone at a financial institution, a president of a small financial institution, and it sort of opened the dialog to, “Look, I don’t have the standard revenue, however let me present you all the pieces that I’ve.” They have been prepared to do an in-house mortgage, and we did an adjustable fee mortgage. It wasn’t a standard mortgage of any kind. They have 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, perhaps we’ll take one other swing on him.”
And so, if I’m speaking to my friends and my mates about their actual property funding, I’m saying, ‘Hey, look, I didn’t have lots once I began. I didn’t make lots 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 sort of measure all the pieces now in my life by, “Can I choose up the telephone 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 wish to have them at a fast response. And that has made all of the distinction in each buy and sale that I’ve made since then, is simply having a private contact and relationship with every 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 an alternative of making an attempt to determine methods to resolve the issue your self. And so yeah, you stated this piece of land was about 100,000 bucks. Had been you making more cash at that time and that’s the way you have been in a position to repay that land in two years?

Corey:
No, not likely. Principally, the best solution to put it’s we discovered this program the place we have been residing in an condominium in downtown Nashville, my spouse and I. This condominium had a place the place should you hosted three occasions a month, you bought 75% off your lease, that means you placed on socials for the condominium advanced to construct neighborhood. And so, we took that place and I used to be writing songs, so I had a very small wage from Warner Chappell, the songwriting firm that I used to be writing for, and we lived actually merely and we didn’t have children. We had one on the best way at this level.
We simply lived so minimally, however not cheaply. I don’t know methods to clarify the distinction actually, however it wasn’t like we have been consuming canned rooster and rice nonetheless, proper? We have 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 have been discovering a approach creatively to do it actually affordably. And so, as an alternative of spending 1,500 bucks a month on lease, we’re spending 650 I feel is what we have been paying, which is tough to imagine now as a result of all the pieces’s so costly. However we simply received inventive after which took the surplus. And as an alternative of upping our way of life, we put it into this glorified financial savings account known as uncooked land.

Rob:
So, you talked about that it checked a variety of the 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 have been a few of the containers you have been checking with this piece of land if you made the supply?

Corey:
Yeah, I imply the primary… That is sort of one thing that I’ve discovered, one thing that was talked about, however I’ve discovered actually helpful is following the varsity programs. That was the layman’s time period, tremendous easy approach for me to determine an space that I assumed was going to do effectively over the subsequent 10 years, proper? And that was the one barometer I had for transferring to a special state and shopping for actual property. I didn’t know the areas like I do in Oklahoma. So I adopted the varsity system and I knew that Williamson County had nice college programs and there have been cities in that county that have been nonetheless fairly undeveloped and had a variety of room for development. And that’s sort 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 instantaneous rebates nearly, as a result of you possibly can have these bushes thinned and make some cash on that, and someone will are available and purchase these. In order that was one tip.
Clearly, this piece of property wasn’t sufficiently big for that to essentially play a giant issue, 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 all the pieces is beginning to… You’ll be able to inform that there’s some youthful {couples} transferring out that approach, 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 varsity system, that was sufficient to get me on this piece of land. After which I regarded round on the those that have been shopping for properties on both facet of me and speaking with them. Like one of many properties on the left of us bought. I went and talked to this man. He was a reasonably profitable man in actual property. And actually, simply being naive and asking a bunch of dumb questions, he sort 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 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 completed completely nothing with it. Truthfully, we purchased it as a result of my spouse and I needed to maneuver to the nation. We have been residing in downtown Nashville. However my spouse is from Coppell, Texas, which is a suburb of Dallas. And I simply keep in mind going, “Man, earlier than we transfer out to the nation and attempt to go construct a home or purchase a home or no matter, let’s make it possible for we prefer it first.” So to at the present time, we really haven’t completed 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 sort of modified. We purchased this land pondering we’d keep in Tennessee for a very long time, and that wasn’t what ended up occurring. Even earlier than we had the funds to construct a home, that was the dream on that piece of land, we didn’t have the power to go construct a customized home. So the subsequent buy was we purchased a main residence on the outskirts of city within the nation and discovered… I’m glad we did that as a result of we discovered that my spouse didn’t love 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 feel we’re approaching a section of life the place our children are 5, three and one, and as they become older, they’ll be rather less excessive upkeep, proper? Most of them are fully dependent proper now. So I feel 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 sort of isolating. So we simply sort 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 best, most low upkeep factor to carry onto.

David:
So failed goals product of shiplap and what you discovered.

Corey:
Precisely. And don’t belief HGTV.

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

Rob:
That was the worst half.

David:
There’s no Chipotle’s wherever.

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

Corey:
It jogged my memory a variety of properties, so I really cherished it, the city that we have been residing in, however… And that is primarily a section of life factor. My spouse would thrive within the nation given the precise circumstances. However a brand new child, remoted, no household, no mates, new metropolis, it was simply robust.

David:
Yeah. You want components, you want diapers, you want Robitussin. That’s an entire occasion to should 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 dust bike round or go fishing someplace shut.

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

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

Corey:
Yeah, we 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 subsequent buy that we made was a rental property in downtown Nashville. I used to be mainly going backwards and forwards. We have 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 mates’ couches. We had rented out our main residence in Dixon, in order that turned a rental. The land’s nonetheless sitting there.
I’m staying at a pal’s home one night time crashing on their sofa, and it’s a tiny little place, perhaps 700, 800 sq. ft. They cherished the place they lived, however they needed extra space. And so I used to be speaking with them and mainly stated, “Okay, effectively should you don’t thoughts me asking, how a lot do you pay in lease?” They usually advised me and I used to be like, “Man, that looks like a bit a lot for the tiny spot that you simply guys have right here. Would you guys be prepared to maneuver?” They usually have been like, “Yeah, really we’re looking for a spot that’s larger. We simply can’t discover one.” And so, I made a cope with them. I stated, “Should 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 stay 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 have been like, “Deal.”
So after just a few months of purchasing 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 unintentionally walked into home hacking. It was nice. It served a goal 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 an entire completely different dynamic when you’ve gotten a partner concerned in that. However I additionally, that’s one factor that I preserve 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 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 hearth beneath you to go work exhausting since you’re not snug. Ache is like essentially 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 night time isn’t essentially the most enjoyable expertise to have, proper? There’s one thing that’s compelling you to go work tougher that truly most likely should you look again, helped you in your investing journey, helped you in your music journey, you bought to have some sort of battle in you. And if 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 advanced, you simply get right into a rut of doing the identical factor on a regular basis.
After which if 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 an alternative of staying at house till they’re 30 as a result of they will’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 appear like you have been going to remark there.

Corey:
Yeah. What you’re saying about ache being a… Or perhaps discomfort is even a greater phrase for it, being a motivator, yeah, I imply each in actual property, however primarily in music. We must always simply put a giant disclaimer on this complete factor. Actual property is one thing that I do fully on the facet, and that’s one other level that I simply wish to share with mates 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 most important breakthroughs. For instance, throughout COVID, my spouse and I have been transferring to Texas, 2019, and I received dropped from my publishing deal, which is actually getting fired. I’ve by no means been fired from something in my life. I received dropped from my publishing deal, and the one factor that was protecting 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 wish to elevate our household near grandparents and aunts and uncles and cousins. We’re going to maneuver to Texas.” And all people within the music subject was like, “Hey, the worst factor you may ever do on your music profession is to depart Music Metropolis.”
We determined we’re going to work twice as exhausting from Texas, we’ll let God determine the remainder, and we moved. And as quickly as we received there, the entire world shuts down for a few years and music is now not a viable solution to make an revenue. So I received confronted with a few various things. One in every of them was I received to decide on between unemployment or taking a brand new job and studying methods to do one thing new. So I ended up going to work at a few completely different locations, labored at a bike store, in the end ended up touchdown at a pavement firm, which is why I known as my report Blacktop. There’s an entire backstory there. However what ended up occurring was in a season of life the place I had little or no revenue and our financial savings was simply fully depleted, I had a property that I used to be in a position to promote. And the day that my second daughter was born, we closed on this property and it was the primary time I’d ever bought something. And I simply keep 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 are listening to this weren’t affected in ways in which drastic, however it fully 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 serious 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 simply preserve my dream alive throughout a very robust time. And a pair years later, issues begin opening up once more and I’m in a position to hustle and we have now some rental revenue that complete time, however it positively was the factor that saved issues doable.

David:
All proper. So let’s recap the portfolio that you simply’ve constructed, by the best way, as a facet challenge 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 in a while down the road, like I stated, 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 will go for upwards of 425,000, 450,000 now. We’re persevering with to lease that as a result of we have now a great rate of interest on it and we have now a few of the greatest 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 feel there’ll come a time the place I’m open to and have extra time to essentially make investments and tackle some harder initiatives. However we have now 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 received 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 varsity system. We discovered a model new home that wasn’t promoting for some purpose, went in and put in a proposal, received it beneath asking after which received 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 just lately right here in actual property is since our music profession has grown and we’ve began to make more cash, we’ve needed to search for some alternatives to search out some tax breaks. And so, we purchased a cabin in Damaged Bow, Oklahoma, which is the place all of my household’s land and cattle operation is. We purchased that for $675,000. It’s a short-term rental cabin. It’s lovely. It’s model new. What we did was we did a price seg evaluation on this property and so they discovered far more deductions. And for folks like me, like layman’s phrases, a price seg evaluation mainly lets you depreciate the cupboards and the issues which are going to depreciate and deteriorate sooner than 30 years. So, we have been ready to do this with a few of the extra revenue that we have now coming in now, and it builds our actual property portfolio, however it additionally lightens our tax burden and it simply helps all the pieces total.
After which the final piece is we have now a very passive funding in downtown Nashville the place we put… What was it? We put $25,000 into a purchase order of three and a half acres on Demonbreun, which is likely one of the predominant roads in Nashville and downtown. There’s a bunch of bars and industrial buildings there now. They’re going to basically let the leases expire and go up and construct multi fam. And so then we’ll have the chance to purchase into that once more on the multi fam facet, or we are able to exit, or we are able to simply let our preliminary funding journey.
We’re studying. I simply preserve getting my ft moist and all of those completely different little sectors of actual property. I feel the subsequent factor I actually wish to strive is my buddy and I that purchased that Airbnb, we wish to go into some multi-unit, multi fam, one thing collectively, as a result of we’re simply studying. It’s actually exhausting 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 for the time being. So we’re seeking to be taught 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 all the pieces like that, I feel it’s actually encouraging for lots of people at house to hearken to this and perceive that you simply don’t should do actual property full-time to construct wealth and use that wealth to get you out of robust monetary factors should you ever want it. So it’s actually cool, and I respect you approaching to the present and sharing that with us, man.

Corey:
Yeah, man. Effectively, 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 someone who’s on the fence about taking a swing and going for his or her first deal. Hopefully, it encourages them to appreciate that you simply don’t should be as far alongside as you suppose you may to drag the set off the primary time.

David:
Effectively, there’s this cookie cutter components that sometimes will get bought to individuals who don’t wish to put money into actual property. And it actually shaped, I really feel like, in 2010 after the final crash when all people was afraid. So they might painting actual property in a approach that was much less scary, the place we’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 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 got land, which most individuals would by no means even think about doing as a result of land doesn’t cashflow until you’re utilizing it to lift cattle on or pump oil out of or one thing like that. Effectively, 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.
Effectively, should you’re earning profits 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 few of the different properties that weren’t doing as effectively, however they have been appreciating in worth. You labored it into an total monetary image and took benefit of a variety of the fairness development that comes from shopping for properties beneath market worth and in areas which are rising with out being reliant on the cashflow since you’re on the market being an entrepreneur within the enterprise sense. That’s what I like in regards to the story that you simply’re telling right here. You additionally integrated exhausting work and saving money in order that you may put money into actual property somewhat than saying, “Effectively, I’m not prepared to sacrifice my way of life. I need the deal to simply seem at my doorstep and cashflow for me. And if I can’t discover that, effectively then I’m going to maneuver on investing in crypto or one thing.”
So everybody listening, A, comply with your dream. Corey’s an awesome instance of that. B, don’t be afraid of being ready of ache. That’s okay. It might really assist inspire 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 simple approach out. You wrote music for different artists for a very long time earlier than you have been writing your personal songs that have been well-known. And D, have a look at the best way that actual property does generate income and reap the benefits of that. As an alternative of making an attempt to power it to work for what works for you, mildew your life round how one can make a few of these issues work and you’ll have related outcomes. An important story.

Corey:
Man, yeah. And simply cherry on high, man, superbly stated, this doesn’t should be your primary ardour in life, proper? It might have an awesome supplemental spot in your life that lets you chase no matter that main dream is. And it has made all of the distinction on the planet for me. I imply, even just lately simply promoting this Airbnb whereas I’m closely reinvesting in my very own touring enterprise and going to tour buses and hiring staff. And as I’m constructing a enterprise fully unbiased of actual property, it’s permitting me to reinvest and preserve issues lean on that facet. And I take a few of the wins from actual property and I fund my private life. So it’s simply going to open doorways and it’s going to gasoline these different goals that you 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. Effectively, hey, once more, thanks for sharing your story. And I hope you recognize should you ever want a sofa to crash on, David’s sofa is all the time open, my pal.

Corey:
Lovely.

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

Corey:
Yeah, so my socials on each platform are @CoryKent, C-O-R-E-Y. Each Starbucks barista ever misspells my title, so ensure you get the E. After which, yeah, so it’s @CoreyKent. After which coreykentofficial.com. You discover tour dates, you discover merchandise, all of the music’s there too. After which clearly, we’re on all of the streaming platforms as effectively. Yeah, outdoors of that, I’m simply tremendous grateful that you simply guys took the time to listen to my story as a result of I simply hope someone on the market that’s on the fence, that is sort 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 have now 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 about me-

Rob:
[inaudible].

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

Corey:
Effectively, 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 be taught a lot from what you guys have completed. And clearly the present’s superior, so thanks for having me.

David:
Superior, man. We’ll see if we are able to get your function right down to Seeing Greene episode. We’ll try this too. We’ll have you ever ask some questions on there and everybody can see. So please go try Corey’s Blacktop album. Purchase that. Help him there. And tell us within the feedback what you consider 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 could find me over on Instagram @robuilt or on Threads should you’re stylish. Should you’re up and up on the outdated interwebs, you could find me on YouTube primarily over @robuilt. David, if folks wish to obtain your demo, the place can they try this?

David:
Yeah, you possibly can look me up all over the place @davidgreene24 should you want a ghost author. The true property market is slightly robust. Charges are excessive. It’s exhausting to search out offers, so I’m making some further revenue there. And go try my YouTube @davidgreene24. I’m stay each single Friday night time. So, we respect you guys being right here. Thanks for following the podcast. Be sure to 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 received.

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