- Darrell Spencer founded Crowned Skin, a skincare brand for men.
- He invested profits into real estate, but still rents the condo that he lives in.
- He says his high school friends don’t expect him to pay for things.
This as-told-to essay is based on a conversation with Darrell Spencer, founder of Crowned Skin. It has been edited for length and clarity.
Growing up, my mom worked for the post office, and my dad was an officer with the Chicago Police Department. They rose through the ranks at those solid, middle-class jobs until my mom was a Postmaster and my dad was a Commander. Their income covered necessities for me and my sister, but my parents had another income source that pushed us into the upper middle class: real estate investing.
One of my first memories is living in a three-family home in Chicago. My dad owned the building, so we were living essentially for free since the other tenants’ rent’ paid the mortgage — it was house hacking before that term existed.
My dad sold that building for a substantial profit, which he used to buy us a one-family home while also reinvesting in rental properties. I started learning at an early age that real estate was a great way to build wealth while also maintaining cash flow through asset appreciation.
My company made $4 million during its first year
We were comfortable financially, but I knew we weren’t rich. I also saw how hard my parents worked. In addition to the police department and real estate, my dad had a third part-time job. I knew I wanted to go to college, but I didn’t want my parents to have the financial burden of paying for it. I applied for a full-ride scholarship, and being able to tell them I got it felt like a gift to them and me.
After college, I worked for the biggest-name tech companies, focusing on digital marketing strategy. That sparked my interest in entrepreneurship. I first started my business, Kings Crowning, about five years ago, which sells satin-lined hair wraps for men of color. About two years ago, I launched Crowned Skin, which makes men’s body butter with scents and pheromones. I still own both companies, but Crowned Skin has taken off in a huge way, making $4 million in revenue during the first year.
I own 18 rentals, but I rent the condo where I live
As soon as I started making money, I started investing in real estate. I now own about 18 rental units in greater Chicago. Last year, I officially became a millionaire at 27. I see real estate investing as a way to continue to grow my wealth and create more financial stability independent of my companies.
Despite that, I still rent the condo I live in. It’s modest: about 1,200 square feet and three bedrooms. As a real estate investor, I’m very conscious about any debt I take on since banks consider my debt-to-income ratio when making loans. I haven’t taken on a personal mortgage because I can make more money taking on loans for rental properties. When I take the leap into a personal mortgage, it will be for my first home.
I’m conscious of spending, but I have some indulgences, like the Porsche Panamera I drive. Driving it makes me feel good. I love cars, and my parents always drove nice vehicles like Land Rovers and BMWs.
My old friends can’t relate to my wealth, but we still hang
I still hang out with a lot of my high school friends. The foundation of our friendship is all the experiences we shared growing up and stories that we can still laugh about today. Sure, I have some new experiences because of my wealth they can’t relate to, but we share enough that the friendships are still deep.
If I’m out with friends I’ll often pick up the tab for dinner or drinks. I want to do it, and I appreciate that my friends never expect me to pay. I’ve worked really hard to get where I am. I continue to live modestly and spend strategically to build my wealth. I would be uncomfortable if people expected me to pay just because of my financial status. Luckily, money hasn’t created a wedge in any of my relationships, and I think that’s a testament to the quality of friends that I have.
I work as if I’m not a millionaire
These days, I’m very comfortable financially, but I’m careful not to be complacent. I know that when you feel too comfortable, that’s when things can get shaky. Money can go as quickly as it came.
So, I still work like I’m young and hungry, not like I’m a millionaire. I have big dreams for my businesses and for myself. That’s just called ambition.
