Fresh from releasing the official anthem for England’s Euro campaign, south London rapper Krept is busy building a business empire out of his earnings from music by adding property to the ‘mix’.
The star, who is one half of the MOBO award-winning hip-hop duo Krept & Konan, has just completed a shrewd move in the market after buying a house for just £43,000.
He snapped up the rundown property in Liverpool at auction and immediately set about converting it into a house share.
Five months later he is looking forward to picking up a tidy sum from his investment and an ongoing passive income.
He spent a total of £75,000 on the house which is now fully tenanted and bringing in £1,150 in rent per month, leaving him with a healthy profit.
Not only is the musician quids in, he expects to get back all of his money by taking out a mortgage based on the new value of the three-bedroom house near Liverpool Football Club in Anfield.
Krept explained: “By refurbishing it, I’ve pushed the value up which means I’m set to pull out all my money to reinvest in another property. So effectively it’s a free house. Even with a mortgage of £250 a month and other expenses I will get a good return.”
The celebrity already has his own record label, Play Dirty, and has teamed up in other business ventures with his singing partner who co-wrote England’s Euro football song, Olé (We Are England).
Both men received the British Empire Medal for their services to music and the community of Croydon.
Now Krept, whose real name is Casyo Johnson, is looking to broaden his horizons even further as he seeks to cement his success both on and off the stage.
The 31-year-old, who became a father for the first time last year, says he is always looking for new challenges in life.
He said: “I’m always thinking about the future and what I’m going to leave behind for the next generation. Also, I think about the worst-case scenario. What happens if lose my voice and I can’t rap.
“That makes me want to get up and do so many different things. I’m always for expanding and doing something else, like property and business. I don’t think you should spread yourself too thinly, but I do feel there is always room to grow and elevate yourself.”
Krept credits well-known property developer Samuel Leeds for helping him to pull off the lucrative deal.
Leeds purchased his first house when he was 17 and went on to become a property millionaire by the age of 21.
He also runs a training firm which teaches people how to become financially independent through investing creatively in the housing market.
The performer turned to the multi-millionaire founder of Property Investors for advice after watching his videos on YouTube.
The pair have worked together over the past two years, during which time Krept says he has expanded his knowledge of property investment strategies.
After completing his house purchase, the London-based rapper was offered £110,000 for the house but turned it down as it would have meant paying capital gains tax.
However, if the right offer came in that could be an option down the line as it would release more funds for a bigger deal.
Each of the rooms has a different colour scheme of orange, green and blue to give them personality, and will rent out at between £350 and £400, he added.
The most expensive room has an en suite with a large bath in it and another one has an en suite with a shower.
As part of the renovation work, the kitchen was enlarged by removing a downstairs toilet and moving upstairs. A corridor was also knocked through to make a larger bedroom.
Samuel Leeds was full of praise for his student.
“Krept made this happen and he’s been smart,” he said.
“Property investors talk about a deal washing its face meaning the rent covers the costs, the mortgage, the Council Tax and the bills. This property is not going to wash its face, it’s actually going to make cash flow which is really important”.
“Having done it once, he can go on to do it again and again, keep increasing his monthly passive income and grow the capital value of his portfolio”.
“Improving rundown properties like this can also help improve areas and provide a better standard of accommodation for people to live in at a fair price”.
“It’s important to remember too that property investing is not the exclusive domain of the privileged and wealthy. Many people have become extremely successful in property despite starting out with very little in life. The most important qualities are to have a strong work ethic and a thirst for knowledge.”
Buoyed by his success, Krept, who performed at a sell-out concert at London’s 02 Arena shortly before the pandemic struck, is hoping to take on bigger commercial deals in future – including buying land and building apartment complexes.
He said: “I have a beautiful little girl. It changes your whole perspective on life. That’s another reason I’m even more driven to get into property”.
“I might not be able to pass down my talent. She might not be into music or be able to sing but one thing you can pass down is bricks and mortar.”
You can check out the full interview with Krept and Leeds here