"Ah I know of that volcano, it hasn't erupted in centuries. Building there would be dangerous, but it would be next to impossible to attack. Plus lava makes a good place to place red dragon eggs. I can see why you came to the kobolds, you'll need some good miners to work it."
He walks into your headquarters. "No much for now, looks like you've got a basic income idea, but you'll need some start up funding to get a steady flow of income right? Well...I'm not doing anything with the gold we find...I don't see why other dragons sleep on piles of gold. A bed is so much more comfy."
Edit: Please refer to the OOC, I have important information.