Financial Independence Through Real Estate with Alan Corey | Ep. 111

• Alan moved to NYC after college to pursue stand-up comedy but needed a day job. Working tech support and performing until 3 AM left him exhausted. He started reading personal finance books to find a way to replace his $45k salary so he could focus on comedy full-time.

I felt like I needed to control my own finances and that just clicked with me as something that I could do.

• Alan lived in an illegal sublet in Spanish Harlem projects for $400/month. He automated his savings by having HR split his direct deposit 50/50 into two banks - one he never accessed. Every January 1st, he'd check the balance to determine his down payment.

I was on the ramen noodle diet. I'd buy them in bulk for 13 cents. I'd go to the bakery right when they were closing because they would be hauling out a bag to the trash can.

• With $10k saved, Alan bought a $99k Brooklyn apartment sight-unseen. He hung a curtain through the living room to create a second bedroom for a roommate whose rent covered the entire mortgage. This was his first house hack.

I had never been to Brooklyn. No one even wanted to be in Brooklyn... I just put an offer in.

• With $20k saved the next year, Alan bought a $450k duplex. He and five other comedians lived there. The property covered all living expenses plus generated $2,000/month profit - matching his day job take-home pay. He realized he was better at real estate than comedy.

I could leave my day job because I was house hacking there as well. And that was paying all my living expenses, plus I was profiting $2,000 a month.

• Alan partnered with others for his third property in Red Hook, Brooklyn. He found the deal, negotiated with contractors to work for equity, and secured funding from his girlfriend's father. They flipped it for the first million-dollar sale in Red Hook - buyer was Barbara Corcoran from Shark Tank.

There's a saying in New York: if you have a good deal, it's not going to be hard to find money.

• Traditional FIRE is conservative - pay off all debt first. House FIRE flips this: use debt strategically by buying cash-flowing properties that cover each monthly expense. Instead of paying off a $20k car note, use that money as a down payment on a rental property whose cash flow pays the car note while building wealth.

If you would have just focused on paying off debt, then you would have lost 10 years of returns and growth.

• Alan addresses the fear of tenant calls and maintenance. He budgets for property managers upfront so he never handles issues directly. He calculates that answering 1-2 calls per year for $200-300/month cash flow is worth it - and the bar for being a good landlord is surprisingly low.

The bar is so low to be a decent landlord. Like all you have to do is just reply to any message within 24 hours.