Corbin Marcotte is the Owner and Real Estate Broker at The Investor’s Broker, a network of realtors, investors, sellers, and buyers. He facilitates real estate investment transactions, including small single-family homes, package deals, mobile home parks, and large multi-family homes. Corbin also offers free coaching services to teach busy professionals how to invest in real estate.
At the age of 16, Corbin bought his first home and now owns a collection of Airbnbs. Before founding The Investor’s Broker, he worked as a real estate agent flipping homes for Keller Williams Realty.
Here’s a glimpse of what you’ll learn:
- How Corbin Marcotte came to be known as “The Cape Agent”
- Corbin’s motivation for buying and flipping houses when he was 16
- Corbin and Mat Zalk share one of their most successful investments
- The benefits of working with skilled investors
- How the current real estate market affects traditional buyers
- Tips for investors navigating Oklahoma’s real estate market
In this episode…
In today’s high-priced and unstable real estate market, institutional investors are outbuying traditional buyers and fledgling investors. So, how can you profitably invest in homes without going over budget?
Corbin Marcotte suggests assessing each local area’s real estate market to determine the most affordable homes. When you invest in these homes, your money will appreciate, allowing you to invest in more properties to grow your profit. As an expert in Oklahoma’s real estate market, Corbin will introduce you to the state’s most cost-effective areas to give you an advantage in the market.
In this episode of The Same Day Podcast, Mat Zalk joins Corbin Marcotte, Owner and Real Estate Broker at The Investor’s Broker, to discuss investing in the current real estate market. Corbin reveals how he entered the real estate space at age 16, the benefits of working with skilled investors, and how the present real estate market affects traditional home buyers.
Resources mentioned in this episode:
- Corbin Marcotte on LinkedIn
- Corbin Marcotte’s phone number: 918-694-0508 | Email: [email protected]
- The Investor’s Broker
- The Investor’s Broker on Facebook
- Ken McElroy on YouTube
- Endure: How to Work Hard, Outlast, and Keep Hammering by Cameron Hanes
- The Psychology of Money: Timeless lessons on wealth, greed, and happiness by Morgan Housel
- The Warren Buffett Way: Investment Strategies of the World’s Greatest Investor by Robert G. Hagstrom
- Mat Zalk on LinkedIn
- Keyrenter Property Management
Sponsor for this episode…
This episode is brought to you by Keyrenter Property Management.
Keyrenter Property Management is a full-service property management company who helps their clients buy, renovate, and operate real estate assets.
They help clients build wealth while taking the headache out of property management.
That’s why, no matter what rental you have — single-family homes, condos, townhomes, or apartments — they can give you the management solutions you need.
Welcome to The Same Day Podcast where we discuss driving incremental business growth and other topics related to real estate, property management and entrepreneurship. Now to the show at hand.
Mat Zalk 0:20
Mat Zalk I’m the host of the same day podcast where I connect with top business leaders, real estate experts. Some past guests include Mike Bosch from a techno capital, Corbin we can have your dog on at some point. I recently interviewed Chip Gaberino from Topeca coffee in Hodges Bend great conversation about real estate and what he’s doing in tax credit properties. And just being an entrepreneur and the entrepreneurial spirit something you know a ton about Corbin get into this message today’s episode I should say is brought to you by Keyrenter Property Management Keyrenter Property Management waterfall full service property management company helping our clients buy renovate and operate real estate assets. We help our clients build wealth we’ll take in the headache out of property management, Corbin you have managed properties for a living in your life and you understand the nature of the work it is it’s difficult stuff but there are a lot of moving parts and we try to do everything we can for our clients to make it as seamless as possible. Sometimes they need to fund an account but other than that they can lean back and collect the rent in their bank account and do nothing else. We really do try to make it so that they can can build passive income and we just do anything to take the headache away. Sometimes we pay mortgage payments and as we pay property taxes sometimes we pay insurance bills but whatever we can do to make the headache ours not theirs is is what we aspire to. That’s why it doesn’t matter what rental you have a single family home or a condo townhome apartment, we’ve got the management solution for you go to keyrenterpmc.com [email protected] If you want to ask any questions, so Corbin you and I met so many years ago ideally diner. And I don’t even know. I don’t even know how we got introduced. Do we have? Do you have any idea it? Was it? Kyle Collins maybe who’s a local real estate investor an appraiser that he introduced us? Or did you introduce me to him?
Corbin Marcotte 2:18
No, no, I don’t think
Mat Zalk 2:22
I kind of have a feeling that you i Cold emailed me or something. And I was just like, I liked this guy. Let’s go to lunch. And I like have the sense that that’s how it happened. But I
Corbin Marcotte 2:31
didn’t think I just called you or sent you an ad. I felt like maybe at the time I was connecting. You know, I think that’s how was I at Keller at the time.
Mat Zalk 2:44
Because my first I was going back and I looked at some emails. What’s funny is I looked at some emails and you were at Keller so you see [email protected] And then we had that first deal on independence that Kelly apartments I want to talk about that. Oh, that was funny. But before we go into it, let me just introduce Corbin. Marcotte a big shout out to Corbin who’s made who’s made himself a name in our market in Tulsa Oklahoma buying and selling real estate, corporate owner and the principal broker at the investors broker. He owns a bunch of Airbnbs. And I think you’ve transitioned basically from long term rentals mostly to Airbnb. Is that
Corbin Marcotte 3:20
right? Yeah, that’s currently the model. You bought
Mat Zalk 3:23
your first house at 16 years old. That’s pretty impressive. I want to get into that. But before we before we do that, let me start let me just ask the first question, because when I met you the first time you and I met you were still in your like Cape. You’re still wearing a cape. I suspect at 16 years old, you weren’t wearing a cape. But tell me like how did the cape come about? Everybody still knows you as like the cape broke or whatever, Cape agent or whatever it was, but what was the origin? What happened? Why did you stop tell us the backstory there.
Corbin Marcotte 3:53
Yeah, that’s funny. And I was always kind of weird. You know. i But the thing was, was so I went through all this stuff in my life, I had, you know, started buying property 116, building this business, completely losing everything I had built up just by being a moron. And then kind of having I hit this point in my life where like, this was after I built up and then withered away everything I built up. And it was like, the real rediscovery, you know. And so at that time, I started getting into meditation. And I started this, I picked up this meditation book. I was kind of like, in a dark place mentally, you know, and I picked up this meditation book, start reading meditation book. And I started having all these realizations. You know, I start really digging into like, who I am and everything like that. And a big thing I realized was how much I cared what other people thought Unlike how it was this big weight I was carrying around which I was 20. It was 23 at the time 2223. So, yeah, I had this realization of like, oh my gosh, like, I stress out and I care what people think of me. And so I thought I was like, it came to me in a meditation. And it was like, What can I do? That would dissolve that for you? Cool. Like, that’s the thing that I saw holding me back the most in life and come to find out it probably wasn’t. It was something was on the playing field, you know, of things holding me back from being who I wanted to be in here and what I wanted to do, and so I was like, What can I do that will completely dissolve my care of what people think about? And I was like, do something absolutely ridiculous. That just, you can’t even bear the idea of like the idea of wearing a Foley I ordered it from some lady I think it was like called, like, super hates herself. She makes cakes for like kids, but adults. So I was like, That is the most embarrassing, terrible thing I can think of doing that. So I bought one I got branded, you know, because I didn’t know what was a brand. Keller Williams add my Keller Williams team. I changed the name of my team to the Cape agent
Mat Zalk 6:26
team, Cape agent. That’s right. And
Corbin Marcotte 6:29
another small factor of that was at the time I was listening to some Grant Cardone stuff. Yeah, like I think a lot of 22 year olds do.
Mat Zalk 6:42
Was he thinking multifamily back then? Or was he was he on the single family tree? No, no,
Corbin Marcotte 6:45
just straight sales. Okay, okay. And this was before the real estate stuff. And when I was trying to learn to be a good salesperson that was my objective in life at that time was I wanted to learn to be good salesperson
Mat Zalk 6:57
and you didn’t want to You weren’t listening to Zig Ziglar I did listen
Corbin Marcotte 7:01
to zig. I was No. I’m a book junkie. So but I hear Grant Cardone it said something that I really appreciated the time and thinking about sales, being a young person trying to sell real estate don’t have a lot of relationships built sure moving into Tulsa from Claremore. So people don’t really know me. And he said your greatest issue is obscure. People don’t know you exist. If they knew you existed, they would use you. And so I was like, I’m gonna Donald Trump this I’m gonna make half the people hate me and half the people love this absurd ridiculous. It’s gonna just, you know, it would be I mean, it it was very effective.
Mat Zalk 7:43
I mean, I still hear about it. I used to wear the cape. I’m like, Yeah, that’s why did you stop wearing the cape?
Corbin Marcotte 7:50
I I basically made a promise to myself that I was going to work for a year straight.
Mat Zalk 7:55
Got it. And everyday you’d get up it was just your uniform. You’re just put on the cape and you’d you’d walk around all day and people would be in Starbucks looking at you like you’re a lunatic. And they’d ask what’s going on?
Corbin Marcotte 8:05
Yeah, every single day. I mean, there were
Mat Zalk 8:08
workdays for your like weekends, you’re still rocking.
Corbin Marcotte 8:12
Like I mean, I remember where to like the gym. Because it’s hard to work out with the case on it’s a very ineffective superhero.
Mat Zalk 8:24
Fly. I mean, the fact that it makes you fly is the is the part that works. Everything else is a noose isn’t the case. That makes him what else? Oh, yeah, perhaps. I was thought it was a cape that makes him fly that gives lift over the bat. So that was the ability to change direction. Something needs to propel you forward. Yeah. And create thrust. You understand
Corbin Marcotte 8:45
aeronautics. It’s like what do they call those things on the plane wings that tilt back and Ron’s? Yeah, yeah, yeah. That’s, um, but yeah, I would say 90% of, you know, I’m exhausted. So
Mat Zalk 9:01
a couple of funny things I saw Wayne coin from The Flaming Lips years ago gave an interview and I was I was at oh my god, this is so far back. I was at Vegas, the first year of Vegas, which is the Las Vegas music show. And I was at UC Santa Barbara and I don’t want to say I forged the documents but I I presented myself as a somebody from the from the Santa Barbara campus newspaper and I got media credential so I got you know, backstage access and a free pass. And then as I was listening to Wayne Coyne talk, somebody asked him a question about why he does I don’t know if you’ve seen the Flaming Lips but they go he might come out inside of a ball singing the big one a ball he might. He might have a microphone camera. So it stares right into his mouth and they just a big projector on the back presents that and they’re asking him why he doesn’t and he’s might squirt stuff on to the audience and you know, throw fake blood around. I think fake blood might be a little bit grotesque or gruesome, but maybe not that not that extensive. But he does all this stuff. And somebody asked him why he does it his perspective. So if you’re if I’m the weirdest person in the audience doing the weird stuff, then you’re not concerned about whether you’re dancing the right way, or whether somebody’s looking at you. Funny, you’re just enjoying the music, because I’m making the show that the presentation is here. And I’m the weirdest person in the room. So I thought that was fun. And it is a little bit like, you know, anything that you can do to break the ice for somebody will walk up to you and be like, what do you do? What is this cape? And that’s the fights the obscurity, as you said,
Corbin Marcotte 10:23
yeah, yeah, it actually it got me, I don’t know, one or two listings, but in its actual formation, but the beauty was it did, it made me stop caring, like when everybody thinks you’re an idiot, and makes you realize that people will judge you based on your immediate look. Yeah, and not based on your story, or who you are, or any of that stuff, people have this very surface level knowledge of who you are. And they make all their assessments off of that. And, you know, they didn’t understand my knowledge or anything like that. So broke that kind of broke that barrier of people are just judging from their spot, not not from really any actual knowledge, you know, it’s up to release a lot of that, and that perception change. Got me a lot of business. You know, that idea?
Mat Zalk 11:15
What, what kind of meditation were you practicing when he first started? And have you? Have you continued with that same type? Are you have you moved on to something else?
Corbin Marcotte 11:22
I’ve changed it up. I don’t, honestly, I’ve never even known like a label for the meditation on or any type. I picked up a book. It was weird. It kind of happens since you know, sure. It was setting in my closet. Like I said, at that point, I’d lost like, everything I built up, I had to move back in with my mom. And I’m just like, in this miserable state. And I in the closet of my oldest brother’s I moved into my oldest brother’s room. And in the closet, there was a book meditation and the New York Minute. And it’s funny because my oldest brother never meditated or anything. So I don’t even know where this book came. Nobody in my family ever did. And yeah, just picked that book up and started reading. I ended up going to a meditation school years later, where I spent like, 18 months straight, wow, when these rigorous meditation exercises and getting really into it, and yeah, I still definitely try carried on. I’ve been inconsistent over the years. But I find myself going back to which one of the most beneficial things
Mat Zalk 12:26
like Yeah, it’s so hard. I mean, that’s one of the great exercises of it’s not the it’s not the destination. It’s the journey. But it’s so hard. My mom meditated for 50 years or something. And I tried at various times in my life, I find it very difficult just to slow down. If your brain works real fast, and you’re constantly thinking or whatever, especially for entrepreneurs that are working on their business, it’s just hard to kind of slow down, but it’s super beneficial. That practice no doubt, tell me so how did you end up buying a property at 16? And what was the upcycle? And then how did it crash?
Corbin Marcotte 12:57
Yeah, it was. So I was like, a very mischievous youth. No way. Yeah. Yeah, I just started, like, I noticed and from like, my oldest brother, he got me into a bunch of trouble as a kid. When I was like, 14, gosh, when I was probably 13, I was selling drugs. Um, yeah, I mean, I would, I would sell pills. I started smoking pot when I was like, 13 years old. Yeah, right. Rowdy kid. And then you know, you’re when you’re a kid, you fall into the wrong groups, I started hanging out with all these losers, things get worse and worse. And I get taught by my parents, and my parents were very strict. My parents, I never saw drink or anything. I mean, they were very strict waste. Did parents really cared about me? By but, you know, I got a bunch of trouble from them for sure. And at that point, you know, I’m in my adolescence, I was 15 years old when I got caught with everything. So I’m in my adolescence and I’m like, I can’t stand being told what to do. What most people do in this world doesn’t make any sense to me. Oh, there is a smart kid. Like I was gifted and talented like that. But then I get in all this trouble. I decide I want to get rich and nobody can tell me what to do. Makes sense. Partially influence like my brother brought it up that got caught with me and I don’t know how that happened. Or where who influenced him but then I have this idea I want to get rich and then I have a conversation with this guy and it’s funny because just random person this guy’s you know, nobody in particular special or anything goes my oldest brother. He ended up going to jail. So he goes to the army.
Mat Zalk 14:55
When your older brother who went to jail, that guy that
Corbin Marcotte 14:57
my oldest brother Yeah. And on the way that and they get out of the whole situation. He joined the army, right? Yeah. And that’s what people used to do. On our way to see him graduate basic training one of his friends, I was telling him, I wanted to get rich. And he was like, well, like, how are you gonna do that? And I was like, I don’t know, like, a 15 year old. All I know, is like doctors and lawyers. In my opinion, I have no idea. And he was like, well, who’s the richest guy in the world? And I was like, I don’t know. He was like, Warren Buffett. Here’s his book. tells me about it. So then I buy The Warren Buffett Way. And I start reading that book. And then I start down this I realized, like, Oh, I’m actually fascinated by the stuff. I’m not fascinated by the stuff happening in school. Yeah. So I start reading a ton of books. I read, you know, all the major ones. And, and I start buying stocks when I’m 15 years old. And from the pool money
Mat Zalk 16:01
or from from what
Corbin Marcotte 16:04
I had. So I actually I always had a good work ethic. My dad was really hard worker. I worked on a farm since I was like 11 years old.
Mat Zalk 16:13
out some cash, and you started investing in blue chip stocks,
Corbin Marcotte 16:17
right computers. My dad started a lawn mowing business, because he was a Tulsa fireman, it kicked me and my brother out of trouble. He started a lawn mowing business, so we wouldn’t do stupid shit during the summer.
Mat Zalk 16:30
Besides getting heatstroke, right, yeah. And so we made
Corbin Marcotte 16:33
a chunk of money, you know, mowing lawns, he shared the profit with us well, and that was kind of that was my first sales experience, because we only had a couple of customers. And I would go door to door knocking the people who had tall grass and ask them if they wanted to some other one. Sure. And so saved up somewhere from that start buying some some stocks. Well, this was 2008 2009. So Warren Buffett’s philosophy by a good company in a bad time, everybody was in a bad time. Yeah, just started buying good companies. And you know, but gee, four, American Airlines, a whole slew of them. And all of them, like tripled in price in the matter of a year, basically. And so, me and my brother realized that, you know, we weren’t going to get where we wanted to go. And through the stocks, because we just don’t have enough capital to invest the to make the return. So we loved real estate, the idea of real estate because of leverage, you know, you can really multiply your money with leverage. My brother was 18, I was 16, we went to a Robert Kiyosaki seminar, you know, in downtown Palo Alto, and on flipping houses, I bought the upsell, you know, the $250, upsell. And then they were trying to teach us how to finance the whole $30,000 thing or whatever, on credit cards. But my brother just, I don’t even think he was 18. Yet, I think I was still 15. And he was 17. So we couldn’t even get credit card. So I was like, yeah, we can take what we learned here, and we’ll figure it out. drove around found an abandoned house. I know how to use the internet, which was a huge advantage at the time. Nobody used to be able to find phone numbers, because like I was a 15 year old, so I knew how to use it later. Yeah. The older people didn’t even know how to do that, you know? So I found this dude’s phone number online, get a hold of a big and bam,
Mat Zalk 18:28
like this in Claremore in Tulsa, where’s the house
Corbin Marcotte 18:31
here more, me and my brother buy it in cash for $8,000 or 7200. I knew that I was on this path. So I started working for a construction guy. So to learn all the trades and learn construction. And so me and my brother flipped this. So that’s how it all started.
Mat Zalk 18:50
And so and so you rented it out. I mean, you were managing the property yourself.
Corbin Marcotte 18:55
Yep, flipped it and turned it into a rental calm. We tried to sell it off the bat. We didn’t, we weren’t gonna get what we wanted. Right. So looking back, it was a great offer. We totally should. We just didn’t know what we were doing. But yeah, we rented it out for the next several years, I used an equity loan on that house to buy another house. And that first house took me two years to flip. I had we couldn’t get a loan because we were 18 and 16. I worked like 80 to 90 hours a week at a gas station. To save I dropped out of high school. I worked like 8090 hours a week at a gas station saved up every penny I had dumped it into that house and then often I would get off work and get work on that house. So it was brutal and we fought through it to get through those two years and then turn around but then by that time we were able to get an equity loan on that house. Use it to buy and flip another house. So we turned into a rental for a little bit. Yeah.
Mat Zalk 20:03
And then and then how did it all come crumbling down?
Corbin Marcotte 20:07
So 20 years old. Finally, like, Okay, time to move out of my parents house. And I’m back into being a degenerate. Um, you know, plenty. I read that. It’s funny because I’m starting to learn, like how important balance is. But at the time, I worked so hard for so long. Now, like, I woke up one day, and I was like, I have no friends. Like, I dropped out of high school. I don’t even know anyone. Like I have any girlfriends. I mean, friends. I’m like, I’m lonely. You know, which I don’t even fully recognize that, but I’m like, I gotta make friends. Sure. So I go to college in Claremore nondegree. Seeking, I already know I want to do business stuff. I was like, I’m gonna go to college just to meet people. Yeah, so I do that. I was like, I’m gonna get the job at the place where the dumbest people on earth work was home improvement. Got a job at Lowe’s. stonework, and they’re just in a much more chill environment working so are still flipping that house on site. But I started making friends and we start you know, college Denny’s, drinking, acting crazy. Having a great time. It was a blast. But then I was like, it was like a rebound. Like I went so hard working. Now I can join swung other way. Yeah. And was not balanced. Turn 20 We sell one house, me and my brother sell one of our houses. We move into that first house that we fixed up. And we had a roommate paying for our mortgage. So we live for free. And I’m 20 years old. He’s 22 We live for free in the house. That was very nice. I mean, it was a great house. I’m sorry. But I was like, Wow, this house is so nice. You know, it’s being paid for we have like 50 grand in equity in it. And we’re partying all the time. Well, and like the week or two weeks after we moved in there, my dad dies. So I mean, just this whole slew now I look back and I’m like, Oh, it all makes sense. You know, but so then we really go off the rails. We start drinking and partying all the time and just it was a disaster. So a year straight of virtually not working at all. And blowing through the money I had in my bank account and then
Mat Zalk 22:38
and then to the bank actually foreclose on the property or what No, no,
Corbin Marcotte 22:41
no, we had we had plenty of equity. So we sold it and took some cash out. Yeah, so we were able to survive but we had kind of dug ourselves in a hole that all ended with me. Almost going to jail. But yeah, I was I talked to the police out or out of actually physically taking me to jail. But got a ticket that resulted in
Mat Zalk 23:11
your sales through sales skills came in handy there. They did. Speaking of speaking of having plenty of equity in the deal, even I think early in our relationship must have been 20 2018 I think we ended up buying this property in 20. March or April in May of 2018. But I have this this email in front of me that I wrote to you I say Corbin The details are fairly sparse but it would look something like this 28 units 13 are occupied rents are 450 for a two bedroom landlord pays water trash sewage plus common air utilities needs about 150k worth of work seven beautiful red brick buildings new scuppers 10 year old flat roof no leaks, property is under contract and it could probably be assigned for 725 So I took this property under contract for 525. And I was like this deal is so good. I can probably flip it for 200k and the person that buys it will still be in a pretty good position. Had they done what we did so we ended up this you brought some buyers by they ended up not liking it the neighborhood is a little bit rough at 725 and put in let’s call it 200 It had been in it for 925 that operated properly. They would have sold it some years later we ended up being in it for 525 We put in 300 So we made it nicer whenever a 25 total I think we had about 180 or 200 have cash in it all in maybe less and we just sold it for 1.5 million. So they would have still been in pretty good shape. 925 It would have been at 200 they would have they would have cleared a good almost $600,000 Have you talked to that. Do you ever do anything else with that potential buyer?
Corbin Marcotte 24:46
Man, I that that is still the best apartment deal I’ve seen to this day. And and I was like at the time you know I I got out of essentially, I had, I always had my toe in the water, but I was like not fully focused on investing at the time. Yeah. And so if I knew or had the know how, or like, felt that possible at that time, then I would have been all over that. Because I was like, Man, this is sweet. And he, he backed out, because he actually put it under contract for a second. And then he backed out. And like, you know, I was, I’m a very straightforward person. And I was like, Dude, that was like, I understand and like, I’ll help you with other properties and stuff. But I want to let you know, like, that was a terrible decision. Like,
Mat Zalk 25:41
what’s funny, it was funny. You know, I was like, he hated me. He didn’t you know, what more if you knew that, that he could have cleared 600 grand. So we ended up we ended up pulling like 850 of equity out of the thing. All said and done, I think, and we just exchange it into 10 new build homes, which is cool. So we took like 16,000 in top line revenue 16. Five, will convert it into I think they went up closing on them end of this month, early July, we’ll probably get 20 to $23,000 of top line and be 24 If we’re lucky, if the market doesn’t drop out here. But you know, I thought at the time losing the that upside of 200 grand was a I was like, Man, that would have been nice. But in hindsight, I’m so glad that it didn’t happen. Right. I mean, we put in the hard work, we manage it for a bunch of years. We got it stabilized units are super nice. I still think the guy that bought it for 1,000,005 has plenty of upside in this thing. I mean, he can make some Airbnbs out of them. He can make them even nicer fixer stairs that were done charge for parking. I mean, doing some some series upside, which is nice for him also. But that’s the first deal. I mean, you just did you now work with a bunch of guys, you have so much stuff. You’re doing your own real estate you’re doing you’re doing brokerage yourself. You’re also working with with roof, roof stock roof stock. And you’re their exclusive agent in the market. Is that right?
Corbin Marcotte 27:01
Yeah, yeah, I’m the broker, my partner Garrett, and is their primary agent. So he handles all of their transactions that come through Tulsa, which is basically, you know, for people that don’t know, it’s a platform, where out of state investors can buy investment properties online. And they guarantee the rent, and we’ll even I saw an example where they bought a property back from somebody because at the price they paid.
Mat Zalk 27:31
Yeah, yep. And they refunded the commission everything.
Corbin Marcotte 27:36
You know, that was the first agent. Yeah. But yeah, they bought the property back, because I wasn’t happy with the transaction. So that I was very impressed. They stood by their word, and they guarantee the rent, you know, and they coordinate how long? They make it very turnkey, as what they do, how long what
Mat Zalk 27:55
how long they guarantee the rent and for the duration of the contract that’s on the property that lease is on the property?
Corbin Marcotte 28:00
No, I think like they do a 90 day guarantee or something like that, dating the rent that was quoted to them, because part of it is the agent Garrett goes in there, he finds these properties. And he says, This is what I estimated rent at, and then they verify it property manager wants, they’re under contract. And so they’re saying that read that you were quoted, we guarantee you can get that within so long.
Mat Zalk 28:28
Wow. Cool. And so tell me you recently did a you syndicated or sorry, you sold a property to a 20 unit apartment complex to a guy that syndicated the deal. What was that? Like?
Corbin Marcotte 28:40
Yeah, you know, it’s, it’s nice at this point, because I just have people that call me and then people that know me, and I got a call from a property manager that I know, and he said, I got this point a unit. You got somebody it’ll buy it and need some work. You know, here’s the setup sound, same springs. No, it was it was in North Tulsa. It was north of 244. Yeah. Not too far north of 244. But yeah, it was easy made one phone call, you know, ran the numbers, got it and go shoot and what did it transact that price? I don’t, I don’t remember exactly. I think it was like 800 and
Mat Zalk 29:30
supported or something like that. 40 a door and it needs doesn’t need work to get up to speed.
Corbin Marcotte 29:35
It’s, I think it was pretty much fully occupied. There were a couple of vacancies. Many of the units were as you know, that area very outdated. You know, rents can be raised. And you know, I need to check back in on it. But I this guy, he loves value add stuff. So he’s going to do some renovation on it and Probably I imagined build up the rents decently and I think he’s going to do well on it.
Mat Zalk 30:04
And so he syndicated the deal, he acted as a general partner, and he just brings in a bunch of LPs, or did you bring in one LP that, like a family office or something that will just finance it?
Corbin Marcotte 30:12
Um, he, it depends on which deal he’s doing. And this one was smaller. So he may have just had, you know, one or two. But, you know, I know he does some real large transactions. And so he has, you know, he sends out regular emails, talking about deals and what their opportunity looks like, and everything like that. So, yeah. Nice working with real experienced people like that. It makes it easy.
Mat Zalk 30:37
I mean, then they’re not be asking you they don’t have it’s not like they their models are silly, and they’re over ambitious for what they both what they won’t spend on renovation, what they will get in rent outside. I mean, it’s nice working with people that have done it a lot.
Corbin Marcotte 30:50
Yeah, just, you know, the reason I called him is because we were under contract on another. I think it was 48 units or something like that. And, you know, he was in they were a mess. I mean, they were easy. You You know which ones I’m talking about, I’m gonna say. But the I mean, they were a disaster. Yeah. And I’ve never seen so many roaches in my life. But
Mat Zalk 31:15
the worst is when you open the door, and they come down on your head.
Corbin Marcotte 31:18
That was like, I want to go in there. It’s just grinding off the ceiling. And it’s three o’clock in the afternoon. You’re like, this is not good. Yeah. And I mean that, again, bang and stuff that was happening in that, in that complex, homeless people just sleeping in the middle of the courtyard. It was crazy. And we were under contract on that. And he came back after we did the tire inspection, and said, Here’s the numbers it’s going to take to get the sign up. And I was like, and the seller ended up busting it and all that, but it was totally reasonable. I was like, This guy’s not trying to over fluff. He’s not trying to work one over, he was like, here’s the reality of the situation. I was like, I appreciate that, you know, that bill didn’t work. So I brought him another one. Because I was like, He’s not trying to, you know, some some buyers trying gouge and things like that or take advantage of the situation, I felt he was very reasonable. And there was not a thing that I was like, Oh, he’s crazy on that. It was like, this is exactly what has to happen, you know. And he was willing to work with it as long as he could make it work. But the numbers were just off and it was presented as it wasn’t in that condition. So you know, there was more on the seller than it wasn’t
Mat Zalk 32:38
was, was this a recent transaction that 20 years of recent or last six months? I did it was six months. So what do you what are you seeing in the market? I mean, you guys are looking at roof stock stuff, you see that that all that transaction that flow come through, you sell other stuff? To other people? How are you? You know, yesterday, the Fed ticked up interest rates, 75 basis points. We’re certainly seeing a slowdown in our business in terms of new management, contract signed. deals to me, like, people are just waiting, we’re at this where we’ve come up, we’re here, and now people are kind of waiting for the, for the crest to actually take place and for prices to start dropping, or flattening or whatever. Are you getting the same sense? Or
Corbin Marcotte 33:19
what do you what are you feeling? Yeah, that’s, that’s a lot of what I’m feeling. I mean, we’re still transacting stuff, and a fair property still gonna sell? Yeah, you know, and but you can see, and a lot of people, it’s kind of interesting, because, you know, I was a traditional agent, there’s still I still help some friends with traditional sales. Should I keep my finger on the pulse of all that stuff? And, you know, so many people are like, Oh, I’m seeing days on market really extend? And I’m like, Are you? Because like, yeah, the neighborhood I’m in, you know, this person down the street listed their house for way more than water anything’s ever sold? For sure. It said on the market? Of course, sure. They’ve done to $10,000 price drops, because they know they were being crazy. Sure. Definitely, that’s sitting on the market. But if you look at it, the average days on market and also still six days. Wow. So I mean, I know but at the same time, I do feel that people are starting to. It’s interesting, because I think I’m selling so much investment properties that I don’t think I see it as much. I don’t think investors unnecessarily slow down. I could be wrong about that. But from my field, they’re buying just like they bought I don’t I deal with a lot of cash buyers and things like that. So that’s still happening. And I don’t know your experience, but I’m still commercial loan rates are not much higher. Whereas traditional mortgage rates
Mat Zalk 34:53
are what are you seeing in the commercial? What do you see in the commercial space?
Corbin Marcotte 34:57
I’m still around like five and a half. Yeah, same So no,
Mat Zalk 35:01
I mean, no, I haven’t I haven’t looked at anything since yesterday’s rate hike. But but that’s what I’ve been seeing also for having a quarter and a half. Yeah. I mean, in fact, I was hearing commercial terms quoted the same price as 30 year fixed, which I don’t understand fundamentally, I don’t I don’t get the economics behind that. But I was shocked that,
Corbin Marcotte 35:17
you know, you could get them, right. Yeah, I know, there’s a big transition of a lot of companies and large, large companies are transitioning into real estate. So I think the banks still see the commercial, the investment style, business style real estate, as a sound investment, you know, and so I don’t think they want to necessarily scare people off of that. But at the same time, if you look at, like, I think the status in the past like month, there’s 30 or 40% Less mortgage applications that have happened than there was like six months ago. Yeah. So
Mat Zalk 35:59
Fannie and Freddie came out recently that said, their applications are down huge, huge. And 18 or 19,
Corbin Marcotte 36:05
traditional buyers are getting priced out of the market. I mean, that’s what I’m seeing what traditional buyers are getting pushed, maybe out of Tulsa in the smaller towns around with a little lower price, so that they’re willing to up their commute, which is dangerous and the gas will roll up their commute to be able to live in a decent place, you know,
Mat Zalk 36:29
but I mean, it seems like there’s so many institutional investors that have come in, you’ve got SFR three, you’ve got the epic guys, you’ve got TB Realty or TB real estate. You’ve got Kris Krohn, I mean, they’re they’re all some of them are institutions that some of them are just sales machines that bring people in and teach them how to buy real estate and then facilitate the transactions. Just there’s so much forget Blackstone and BlackRock and Goldman and everybody else. That’s, that’s funny. And you have so many small players, sorry, small, medium players, people that have 510 15 $20 million funds that are buying real estate, just compounds the effects, and everybody that wants to buy their primary residence is competing now against mom and pop investors, like our clients, and institutional who also happen to be many of our clients. But, you know, institutions that are gobbling them up 10 1215 at a time, and I went to the tax auction two days ago, don’t see you there. By the way, were you there?
Corbin Marcotte 37:20
No, I don’t participate. It was
Mat Zalk 37:23
I mean, 1500 1400 properties, there were 950 of them that got paid off before the auction. So there are only a couple 100 properties being auctioned there. There was insane. I mean, people just bidding up Northside houses to 50 and 60 and $70,000 that need 60 and $70,000 worth of repairs. So that’s why I don’t go. It’s just crazy. I mean, it really is not. But you know, I think a lot of it’s driven by the by people with purse sizes of you know, 2030 $40 million, that are just gobbling up real estate,
Corbin Marcotte 37:57
man and the, the amount I don’t like it’s I it kind of in the single family space. This is a dramatic thing that I think people overlook, like, it’s not the big company. It’s Jill, that calls me from California and says, Hey, I’m moving out of California. And I want to buy a primary and a couple other investment properties. And I just need a place to set my money and learn to appreciate how many like some of my agents in my broker channel some traditional transactions. And how many of them have called me and said, Dude, we’ve been beat out by 20. cash offers people from California and Colorado, places like that, moving out of their thumb to Oklahoma, and they’re buying not only a primary in cash, but they want a place to set their cash. This lady called me the other day, hey, I want to buy two and she gave me some really high numbers for Oklahoma. She was like, I want to buy two $400,000 duplexes. And I was like, it’s hard for me to find what it was I go to Edmond the richest zip code in Oklahoma. It’s, you know, these people are just like, her thing was, I want to buy him. I don’t. And she said, I don’t care if they cash flow. If they can sit there and pay for themselves. When they’re paid off. I’m gonna give them to my kid.
Mat Zalk 39:23
Yeah. I mean, it’s better than the money sitting in the bank was in 15% a year.
Corbin Marcotte 39:27
Yeah. And these people are moving from these places where the price of real estate’s been so high for so long. And then they come to Oklahoma and they’re like, $500,000, it gets me what like, in the life of luxury. Yeah. And I could throw some money at some other things and still be able to afford to travel. So it is a lot of those individual people, man, I mean, hundreds of them that my brokerage deals with, that are just trying to buy one or two. But that I mean that multiplies so much, you know,
Mat Zalk 40:01
I mean, it’s true because it’s the it is the, you’ve got all the big players, you got 1000s and 1000s of small players that aggregate to being bigger than the big players and you just have a tremendous outstripping of supply.
Corbin Marcotte 40:16
And it’s more of a they’re more messing with the single family like yeah, like the cosmopolitan just transacted. But that’s like that the that’s not affecting single family. Sure. And I’m sure in some way it is, but not like all these regular buyers, all these regular people. Just, I want to the amount of times I’ve got a call, I want to buy my first investment property in Tulsa. I mean, so many, you know,
Mat Zalk 40:46
we get the phone call it says I’m looking to build my team. We’d like to interview to build it here. My property caught you plenty of time when you get under contract by me get under contract and give me a shout. We can have a conversation.
Corbin Marcotte 41:01
Investigating palsa Yeah, investigate. Welcome, welcome. Yeah. Hopefully doing things like podcasts and things like that. I know, I did a podcast, and I get so many calls off that podcast. But I think putting stuff like this out there kind of educates people more where they’re comfortable in the market. Yeah.
Mat Zalk 41:23
I mean, that’s what I say to all those people. That’s me. I’m investigating Tulsa has it come, come to Tulsa, drive around with us, you can look at some of the projects that we’re working on, you can meet Corbin, you can you can look at what real estate costs. And then you’ll have a good idea. So when Corbin says to you, hey, this is a good investment. You’ve already met his wife, you’ve already met my kids. You’ve heard you have more faith and trust, right? I mean, it’s it because we get five of those phone calls a week for the people that actually want to do it, though. They’ll come to Tulsa and they’ll drive around for two days. And they’ll understand the market and understand the demographics and understand the nature of the real estate, you know, and be
Corbin Marcotte 41:54
almost no one that actually has shown up doesn’t buy something, right? Because they’re like, Oh, this is a legit,
Mat Zalk 42:00
it’s Yeah, but it’s self selecting. Those are the people that are gonna buy anyways, because they and they’re, you know, they’re the ones that are willing to spend the money to make the trip to standard hotel and, you know, understand and understand the nature of the market. What, what are you reading today? What’s What are you gaining insight from? What podcasts? Are you listening to? What conferences are you going to what, what’s everything?
Corbin Marcotte 42:21
Man, I my favorite real estate stuff is Ken McElroy. And, you know, his, his YouTube channel is? He’s so much smarter than me. So it’s easy to watch. Because he he knows he’s so resourceful, you know, big multifamily guy. I mean, he went the ABCs of real estate investing forever ago, I mean, just so well at explaining things. And I mean, breaks everything down. He’s breaking down the recession common, he’s breaking down how he believes that we’re going to turn into a renter nation, things don’t change if a shit ton more houses are not built to fill the supply. And the demand stays where it is, as well as traditional people being pushed out, like we’re talking about with the I can interest rates and the Heigen. You know, price of homes, the sales price, how much is increased over the past year. You know, he showed something that the average increase is like, and we’re not experiencing it so much here like this, but the average across the US is like an $800 a month different from today to a year ago, because of the interest rate hike and the price is going up
Mat Zalk 43:40
in terms of in terms of the mortgage on the single family residence. mortgage
Corbin Marcotte 43:44
payment. Yeah, so and that’s not to count the taxes and insurance that have gone up. Sure. So, you know, people are spending almost 10,000 more dollars a year and they haven’t got the $10,000 a year wage hike. So it’s pushing us into a renters nation where a lot of people are not going to be able to buy they’re gonna have to rent and you know, there’s that’s good and bad. You know, we want America to be over. We want the average American to be more wealthy because that’s better for everybody is a board that, that makes rentals in high demand. So there’s a lot of factors to that, but that’s one of my favorite right now. In the real estate sector
Mat Zalk 44:27
for sure. Anything else you’re reading or or watching.
Corbin Marcotte 44:32
Um, you know, I’m always doing a bunch of self work trying to learn all kinds of stuff. I just read that that Cameron Hanes book Endure, said about he’s a bow hunter and an ultra marathon runner. And so he does like those 240 mile marathon races. Oh my God. You’re running for like two days straight.
Mat Zalk 44:56
I mean, does he sleep he stops and sleeps or he literally runs for 48 hours. I mean, he just say He just chills like
Corbin Marcotte 45:00
run for like, Forget Dude, it is, oh my god, it’s unbelievable. These are like some of the hardest men on earth. But that’s a really interesting book. But digging into all kinds of stuff, man,
Mat Zalk 45:14
I’ve been reading The Psychology of Money, it’s 20 short stories about, you know, people’s relationship with money. And it talks about compounding gains, one of the one of the, the stories is, you know, Warren Buffett’s not the greatest investor of all time, but he’s just been doing it for the longest time he started at like 10 years old, and he compounded 22% annual gains for for 80 years or 70 year, whatever it is. And vast, vast, vast majority of his money was made after the age of like, 6585. And he’s, you know, he’s worth 85 billion, whatever it is, and maybe less over the last couple of weeks. But, you know, 90% was made after his 55th birthday, or 60th birthday or whatever was just compounding he’s not, you know, there are people that have had sustained careers a 65% annual returns for 20 years, but they didn’t do it for 80 or 70. Yeah,
Corbin Marcotte 46:00
yeah, it’s fascinating, because that book, The Warren Buffett Way, when I was a kid really impacted me. And it showed all the richest people in the world, all of them, and all of them their wealth, put on a chart as a hockey stick chart, there’s very slow, very slow, very slow, very slow, very slow, and then it just shoots up, you know, and I still, you know, like, for me, I’ve been doing this 12 years now, I’m 28 turned 29 Next month, you know, started when I was 16. And, you know, there’s been ups and downs for sure. But the, the consistency of showing up, you know, it’s like, dude, eventually, something’s got to give. And it’s funny because, like, I feel like the past. It’s always it’s been such a grind, you know, it’s funny, like, sometimes then there, you’re like, Will this ever pay off but, like, the past, the past year, has just been easy, like, exponential growth for me. Just yeah, everything started falling into place that I had been putting in place forever, you know, and that’s when it finally starts hitting you’re like, oh my gosh, it it it can happen. You know,
Mat Zalk 47:17
I love this. Chris Lyle. Oh, my God. Chris Lyle got me this thing. I quoted this one time and Chris LaLaLand got it for me. I got a hanging up. There’s opportunities missed by most people because it’s dressed in overalls and looks like work. Yeah, you just got to put in the process. You got to do the hard work and then it comes and it comes because you’ve done a lot of hard work. And I think Buffett would that’s that’s the mantra of Buffett he’s done it for seven years. It’s not that he was sure he’s smart sharing he’s the guru he’s the Oracle of Omaha all this stuff for a long time. And Chip Gaberino who are interviewed earlier was was saying the same thing when he started Hodges Bend when he started Topeca Coffee I don’t know if you know you know Chip
Corbin Marcotte 47:57
No, I don’t I go to Hodges Bend and Topeca and everything you need great,
Mat Zalk 48:01
great guy. He’s you know, he said he was willing to take less risk at the time he was doing more of the work himself as he’s grown as low would open as Saturn Room open all these other facilities that he’s got. And then as he developed his real estate portfolio, he’s willing to, you know, take on bigger bites and more risk and that only comes that hockey stick thing comes because at some point you build enough that you can risk more because you if you lose it, you still have this sustainable lifestyle, right? You don’t need in buffets case, you know, super fancy cars, or this or that, yes, kind of live anything. Then you have it, boom.
Corbin Marcotte 48:33
Yeah. When you have no resources, and you are resourceful and you’re making shit work with nothing, that’s entrepreneurship, you have resources, like when you finally hit that point where you have resources, it’s like, you’re you’re so good at decision making at this point, that it’s just bam, bam, bam, bam, you know, and that’s how I feel is I don’t like I went to an auction the other day and bought a house. I wasn’t even planning on buying when I went to the auction auction. I can’t fully expose because this is my honey hole, okay, but I was at this auction and I was like, bam, made it happen. I wasn’t planning on buying the product. But that’s because like where I’m at, I have the resources so I’m comfortable with that. I know it’s not gonna add any stress in my life. And on top of that, I’ve just, I know everything so well. You know, like, if somebody tells me a general place of a house I know generally Sure. I know what it’s built like I know you know, so many details about this property before I even see it. I can make a decision sight unseen a lot of the time you know, and this property I knew it was a I knew Okay, built ladies are comfortable with the electric plumbing ah back all that stuff. Well, he is probably gonna be replaced but roof probably needs to be replaced but it’s a slab foundation because I know where it is. So I know these things. And I’m there Nobody else is bidding on it. I’m like, oh, it’s going out of price better than I thought it had been, you know how much I paid 75 And I don’t walk it and I’m like, Oh, this is okay. It’s an easy flip. Because I’ve been doing a handful flip and it’s an easy flip mostly cosmetic stuff. You know, we’re gonna replace the cabinets, but that’s probably the most serious thing we’re doing. And I’ll easily turn 50 grand off of it, you know, and so you can’t go broke making a profit. Yeah, it’ll be a cakewalk. So that’s another thing is like my margins I because I had to operate so tight for so long. You know, I mean, most of the time, I’m all in at 65 70% of after repair values. Even if the market significantly crashes, I feel relatively safe. I love
Mat Zalk 50:50
We’re here talking to Corbin Marcotte, owner and principal broker at The Investors Broker, a guru of font of knowledge and the local real estate market. Corbin really appreciate you being here. Where can people find you?
Corbin Marcotte 51:03
For sure. There’s The Investors Broker on Facebook. Tibrealty.com Those are the main setup
Mat Zalk 51:13
number. Can people reach you by that old phone system?
Corbin Marcotte 51:16
Yeah, you know, I don’t I’ll warn people. I’m at the point where I don’t answer in the evenings or on the weekends. That’s great. You’re probably much better getting a hold of my partner. And often when people reach out to me I defer them to my partner. 9186940508 or my emails. Corbin [email protected]
Mat Zalk 51:41
I love it. Corbin. Thank you so much. We appreciate you spending some time with us. Yeah, take care. Thanks
Corbin Marcotte 51:46
so much, Mat
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