Digest

This episode features Corby Goad, who details his real estate investing journey, starting as a teacher with a modest salary. He shares his first "house hack" experience in 2001, where he purchased a property and lived for nearly free by renting out rooms. Corby navigated the 2007-2008 recession by holding onto his properties despite them being underwater, demonstrating resilience and a belief in market recovery. He discusses the lean years of self-managing and renovating properties, followed by market recovery around 2012-2013, which allowed for portfolio growth through refinancing and acquiring more properties. Corby also recounts his career shift into real estate, co-founding a successful property management company, and eventually quitting his day job to focus on his growing businesses. His investment philosophy emphasizes that real estate is a marathon, requiring action, realistic expectations, and continuous learning. He highlights the importance of building a strong team, evolving investment strategies, and managing risk through leverage and financial cushions. Corby offers advice for new investors, encouraging networking and house hacking, and expresses his belief that anyone can build wealth through real estate. The episode concludes with reflections on resilience, market outlook, and resources for listeners.

Outlines

00:00:00

Introduction, Sponsors, and Financial Tools

The episode begins with acknowledgments to sponsors, including Northwest Registered Agent for business formation services. It then introduces Monarch, a financial tool designed for organizing accounts, investments, and property, simplifying financial management with features like Sankey diagrams.

00:03:18

Early Real Estate Investing and House Hacking

Guest Corby Goad shares his beginnings in real estate investing as a teacher with a modest salary. He details his first "house hack" in 2001, purchasing a property for $105,000 with an FHA loan and living for nearly free by renting out rooms to roommates.

00:08:10

Navigating the Great Recession and Portfolio Building

Corby reflects on holding his properties through the 2007-2008 recession, facing underwater values, and choosing to hold rather than sell. He describes the lean years of self-managing and renovating properties to build his real estate portfolio during this challenging period.

00:18:02

Market Recovery, Business Growth, and Career Shift

Around 2012-2013, market recovery enabled Corby to refinance and acquire more properties, increasing cash flow and equity. Family needs prompted a career shift, leading to the co-founding of a successful property management company that experienced significant growth, allowing him to quit his day job by 2018.

00:29:15

Real Estate Investing Philosophy and Team Building

Corby emphasizes that real estate investing is a long-term endeavor requiring action and realistic expectations. He discusses the importance of building a strong team to complement his skills and how their investment strategies have evolved beyond simple portfolio building.

00:36:11

Current Lifestyle, Leverage, and Risk Management

Corby describes his current lifestyle, which includes extensive travel while managing businesses remotely. He explains their continued use of aggressive leverage in their portfolio, balanced by a larger financial cushion, and risk management strategies like 1031 exchanges.

00:43:09

Boise Market Analysis and Investor Advice

Corby provides an optimistic outlook on the Boise market, noting high demand and landlord-friendly policies. He outlines typical deals for new investors, focusing on cosmetic fixers and small multi-family homes, and advises networking and considering house hacking.

00:47:37

Building Wealth Through Real Estate and Conclusion

Corby shares his belief that anyone can build wealth through real estate with realistic expectations and consistent action. Scott reflects on Corby's resilience and the role of hard work in his success. Contact information for Corby and resources from Bigger Pockets are provided.

Keywords

Q&A

• How did Corby Goad start his real estate investing journey with a teacher's salary?

  Corby Goad started by purchasing his first property in 2001 for $105,000 using an FHA loan. Despite earning only $17,500 annually, he utilized a "house hack" strategy by renting out rooms to roommates, significantly reducing his living expenses.

• What challenges did Corby face during the 2007-2011 real estate recession?

  Corby's properties went underwater, meaning their value dropped below the mortgage amount. Many friends advised him to sell, but he ethically chose to hold the properties, relying on rental income to cover expenses until the market recovered.

• How did Corby Goad build his property management business?

  After his son's health issues prompted a career change, Corby took a state job with better benefits. His wife started a small property management side hustle, which grew significantly. Corby then got his real estate license to support the business, leading to its rapid expansion.

• What is Corby Goad's philosophy on real estate investing?

  Corby believes real estate investing is a marathon, requiring patience, action, and realistic expectations. He emphasizes the importance of networking, learning from others, and understanding that wealth building takes time and resilience, not just quick wins.

• How does Corby Goad manage risk and leverage in his current portfolio?

  While still employing leverage, Corby now has a larger financial cushion, making it less stressful. He utilizes strategies like 1031 exchanges to manage depreciation recapture and reinvest equity, focusing on properties that cash flow and maintain equity.

• What advice does Corby Goad give to new or struggling real estate investors?

  Corby advises investors to network with experienced individuals and consider house hacking a small multi-family property. He stresses that paying off your own living expenses while building equity is a powerful way to start and gain financial freedom.

Show Notes