Real Estate Rookie

As an entrepreneur trying to build wealth, how do you find work-life balance? How do you prioritize your family and life when you work long hours for a better future? Is the time freedom you’re ultimately working towards worth the time you have to give up presently? Amanda Salovitch, today’s guest, shares the balance she’s been able to maintain as a full-time working mom, building a short-term rental business while going from zero to six units in a year and a half. Amanda has been passionate about real estate for a while. She became a licensed real estate agent fresh out of college in 2008. Amanda worked at a brokerage with another recent high school graduate, and when she decided to pursue a career at the bank, she watched him grow his investment career. The bank required a very fast-paced lifestyle, and it wasn’t until the pandemic that she began to slow down and reassess certain aspects of her future. She started listening to the Real Estate Rookie podcast and became inspired.She purchased three long-term rentals shortly after she began listening to the podcast. She then closed on a property with three short-term treehouse rentals with various income-generating activities. While living a hectic investor life, Amanda always includes her kids as much as possible. Her ultimate goal is to have the time and freedom to live the life of her choosing with her family, and with the path she’s on, she’ll be able to achieve it soon!In This Episode We CoverGetting your real estate license and the benefits of being a licensed investorFinding your personalized work-life balance and the importance of having a strong “why”The process of qualifying for a loan and how to qualify for the financing of your choosingThe 1031 exchange explained, its benefits, and its shortcomingsHow to get your spouse on board with investing while communicating your goalsInvesting while still working your day job and how to manage your time for optimum efficiencyAnd So Much More!Links from the ShowAshley's InstagramTony's InstagramReal Estate Rookie Facebook GroupAirbnbReal Estate Rookie PodcastMLSQuickBooksApartments.comLodgifyBooking.comMileIQThe Real Estate PodcastVrboConnect with Amanda:Amanda's WebsiteAmanda's BiggerPockets ProfileAmanda's InstagramCheck out the full show notes here: https://biggerpockets.com/blog/rookie-207Interested in learning more about today's sponsors or becoming a BiggerPockets partner yourself? Check out our sponsor page! Learn more about your ad choices. Visit megaphone.fm/adchoices

Not knowing how to deal with a bad contractor can cost you thousands, if not tens of thousands, on a single deal. The wrong contractor can cause months more of holding time, thousands in materials wasted, and drain your energy when trying to get the project done. But, once you know the common contractor red flags, you’ll be able to spot which workers won’t work out in the future so you can hire the right ones faster.Ashley and Tony both have horror stories when hiring general contractors. They have some crucial tips when hiring a contractor for your next home renovation. Their most important one? Hire slow and fire fast. The wrong crewmember could sabotage your entire real estate deal.Here are some suggestions:Don’t pay contractors per hour and stick to your contractor criteriaStand your ground and don’t second guess yourself if you know how something should be doneNever hire the same contractor for another job until they’ve finished the first oneSet milestones and benchmarks for the contractor to hit so they stay on-scheduleDon’t hire the first contractors available for a job, take your time vetting the crew and general contractorAnd more in the episode…If you want Ashley and Tony to answer a real estate question, you can post in the Real Estate Rookie Facebook Group! Or, call us at the Rookie Request Line (1-888-5-ROOKIE).Links from the ShowBiggerPocketsReal Estate Rookie PodcastReal Estate Rookie Youtube ChannelReal Estate Rookie Facebook GroupReal Estate Rookie BootcampCheck the full show notes here: https://www.biggerpockets.com/blog/rookie-205Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Check out our sponsor page! Learn more about your ad choices. Visit megaphone.fm/adchoices

Sometimes in real estate, less is more, and as the saying goes—quality over quantity. You don’t need a portfolio with 100+ properties if you have a strong cash flow from five. This approach allows less to fall through the cracks and a more personalized experience for the tenant while still building wealth like never before. Today’s guest, Kelly Cronin, explains how she has created Cronin Castles, a variety of unique experiences in various locations, and is now profiting off people’s desire to experience more life.Her current portfolio includes a sea house in Puerto Rico, an off-the-grid dome in Alaska, a tiny home in Utah, and eighty acres in Wisconsin. While Kelly was merely setting her price on listing sites and looking for interesting places, she stumbled on the next big thing. Currently, short-term rental sites are looking for more properties with unique experiences, like Kelly’s, to feature and further differentiate themselves from the competition.Kelly was able to start investing because she saved half of her income. She was able to save an astonishing $110,000 not because of a high salary—in fact, she never hit the six-figure mark—but because she gamified her life. Kelly did this by finding ways to lower her mortgage, save on childcare expenses and use credit card points to cover her travel expenses. Now Kelly can give people the traveling experiences she would want while simultaneously building wealth and changing her financial future.In This Episode We CoverHow to research and invest in different markets Cultivating unique experiences and how to market your rentals Managing your rental property remotely and the importance of building a network in the market you choose to invest inSaving fifty percent of your income and how to gamify your life and stretch your money Self-managing your properties and how to stay on top of your rental portfolioAnd So Much More!Links from the ShowAshley's InstagramTony's InstagramReal Estate Rookie Facebook GroupBiggerPockets ForumsBrandon Turner's InstagramNate Robbins' InstagramBrian Murray's InstagramAirbnbVrboRealtor.comAirDNAZillowDerek Diedricksen's InstagramBoostlyGodaddyHostfullyMeta Business Suite96 Units in 5 Years By Combining Long & Short-Term RentalsConnect with Kelly:Kelly's WebsiteKelly's Facebook PageKelly's InstagramCheck out the full show notes here: https://biggerpockets.com/blog/rookie-205Interested in learning more about today's sponsors or becoming a BiggerPockets partner yourself? Check out our sponsor page! Learn more about your ad choices. Visit megaphone.fm/adchoices

New short-term rental regulations are sprouting up around densely-populated states like California and New York. These regulations can stop new investors from setting up shop while making established hosts much wealthier. With stricter short-term rental laws, what should real estate investors do to hedge their risk against being stuck with a property that can’t be rented out?Both Ashley and Tony own short-term rentals. Ashley’s is situated in a town with no regulations, while Tony has vacation rentals scattered across multiple markets, each with its own specific ordinances. Tony knows that even with these new laws, there are still steps you can take to ensure that your short-term rental investment isn’t ever at risk of being left empty.Looking into short-term rental markets? Here are some suggestions:Look for established, mature vacation rental markets when starting your searchEconomic dependency on tourism will most likely make an area more open to short-term rentalsAlways research the number of short-term rentals an owner can legally own in an area as well as how the permitting process worksStay up-to-date on an area’s short-term rental laws as they are subject to changeAnd more in the episode…If you want Ashley and Tony to answer a real estate question, you can post in the Real Estate Rookie Facebook Group! Or, call us at the Rookie Request Line (1-888-5-ROOKIE).Links from the ShowReal Estate Rookie PodcastReal Estate Rookie Youtube ChannelReal Estate Rookie Facebook GroupCheck the full show notes here: https://www.biggerpockets.com/blog/rookie-204Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Check out our sponsor page! Learn more about your ad choices. Visit megaphone.fm/adchoices

Property management can be one of the more complex decisions when it comes to investing. Do you save money and ensure the job is done exactly how you want it by self-managing, or do you invest in someone with experience and save yourself time, energy, and headspace? Today’s guest, Karen Lane, breaks down property management in bite-size chunks, so whether you’re deciding between property management vs. self-management or hoping to pursue property management already, this episode is perfect for you.Karen has been in property management for commercial real estate for most of her career, so she’s seen it all—including a dead deer carcass in the middle of a shopping center parking lot. She’s worked with private investors on both coasts and internationally. Karen’s abundant experience has made her a wealth of knowledge and the perfect person to learn from. While she has thrived in the property management space, she now hopes to beat analysis paralysis and find her first investment. Karen goes over what it means to be a property manager and how to become one. She also talks about the nuances of juggling the different relationships you need to maintain as a property manager. Today’s episode is the free property management masterclass you don’t want to miss. In This Episode We CoverWhat it means to be a property manager and how to know if you have what it takesFinding and vetting a property manager to make sure your goals and expectations alignHow to keep the landlord and the tenant happy and find a middle groundManagement agreements and how to understand the property management fees that come along with itHow to check for hidden fees as a landlordThe most significant things to look for in a property manager to make sure your relationship is successfulThe ideal reporting structure, the cadence, and what you should includeAnd So Much More!Links from the ShowAshley's InstagramTony's InstagramBiggerPocketsReal Estate Rookie PodcastReal Estate Rookie Facebook GroupBPCON2022BiggerPockets ForumsRookie Landlord BootcampBiggerPockets CalculatorsBuildiumAppFolioQuickbooksA Step-by-Step Guide to Estimating Rehab Costs w/ Master Flipper & Investor James Dainard (Part 1)Finding Contractors, Renovation Red Flags, and Estimating Rehab Costs (Part 2) w/ James Dainard18 Deals in 2 Years AND a Full Time Job with Kevin ChristensenConnect with Karen:Karen's Property Management CompanyKaren's Company EmailKaren's WebsiteKaren's EmailCheck out the full show notes here: https://biggerpockets.com/blog/rookie-203Interested in learning more about today's sponsors or becoming a BiggerPockets partner yourself? Check out our sponsor page! Learn more about your ad choices. Visit megaphone.fm/adchoices

This week’s question comes from Brandon on the Real Estate Rookie Facebook Group. Brandon is asking: On a cash-out refinance, is this considered income? If so, will I have to report it on my taxes?Real estate investing provides a lot of tax benefits, some that new investors or everyday homeowners simply don’t know about. One of the greatest tax benefits? No taxes on loans and liabilities! That means that the cash-out refinance can be done without paying any taxes on the cash given to you from the bank. But, there are a couple of ways that you could get snagged during tax season if you don’t follow the right steps.Here are some suggestions:Cash-out refinances are considered debt, not income, from a taxation point of viewIf you are planning to have your business pay you back for acquisition/renovation costs, be sure you make a record of that so you don’t get taxed on your repaymentYou may pay taxes on a cash-out refinance if you plan on taking profits from your businessAs always, consult a tax professional if you have any specific tax questionsAnd more in the episode…If you want Ashley and Tony to answer a real estate question, you can post in the Real Estate Rookie Facebook Group! Or, call us at the Rookie Request Line (1-888-5-ROOKIE).Links from the ShowReal Estate Rookie PodcastReal Estate Rookie Youtube ChannelReal Estate Rookie Facebook GroupRookie Reply: Cash Out Refinances vs HELOCs | Which Should You Use?Check the full show notes here: https://www.biggerpockets.com/blog/rookie-202Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Check out our sponsor page! Learn more about your ad choices. Visit megaphone.fm/adchoices

The beautiful thing about real estate is that there is endless room for growth. While some jobs have a capped amount of opportunity, real estate encourages constant advancement. Today’s guest, Gus Ofili, began his investing journey after the pandemic and now has nine properties with twenty-three units. Gus turned to real estate after deciding to leave his nine-to-five at a bank. He didn’t hate his job, in fact, he was doing very well, but there wasn't adequate room to grow. Gus started realizing he was getting passed up on opportunities by people who dedicated at least a decade of their life to the bank. He couldn't see himself taking ten years of his life for a career milestone—so he quit.Initially, real estate intrigued Gus because of the thrill he got from negotiating. He started taking classes to become a realtor while working his nine-to-five. As an agent, he sold fifty homes in his first year, seventy-one in his second, and 108 in his third year. While he did exceptionally well as a realtor, he wanted a backup plan and knew investing would be a fundamental part of his real estate career. He had the opportunity to sell a five-unit house, but when the first appraisal fell through, he began to see potential in the home, decided to buy it, and as the saying goes—the rest is history. In This Episode We CoverQuitting your nine-to-five and how to prepare to do soHow to use social media to gain free exposure and grow your brand  Finding a profitable side hustle in real estate and the benefits of becoming a leasing agentClubhouse and how to use it to learn more, expand your network, and gain motivationOvercoming the fear of buying your first investment property and how to make the transition as smooth as possibleAnd So Much More!Links from the ShowAshley's InstagramTony's InstagramBiggerPocketsReal Estate Rookie PodcastReal Estate Rookie Facebook GroupBPCON2022AirbnbSTR SummitClubhouseDiscordBiggerPockets ForumsFacebook MarketplaceConnect with Gus:Gus' FacebookGus' InstagramCheck out the full show notes here: https://biggerpockets.com/blog/rookie-201Interested in learning more about today's sponsors or becoming a BiggerPockets partner yourself? Check out our sponsor page! Learn more about your ad choices. Visit megaphone.fm/adchoices

You’re here to buy your first rental property. This is the Real Estate Rookie Podcast, and as a rookie, where should you start? Most new real estate investors think that the steps to buying a rental property are simple—find an agent, find a property, buy the property. And although that could buy you a rental property, the chances of you becoming successful are very low. Real estate investing requires much more than just purchasing a property if you’re trying to build generational wealth, financial freedom, and a life that operates on your schedule.It shouldn’t be surprising that the CEO of a company like BiggerPockets is someone who took the slow, yet highly successful route. No raising money on his first deal, no buying multimillion-dollar apartment complexes, no giant yacht, and no private planes. Scott Trench is the epitome of the “grind until you shine” real estate investor. Starting with little-to-no savings, he was able to work his way up to his first rental, his second, and now his thirteenth.To celebrate the release of the updated version of his wildly popular book, Set for Life, Scott has created a ten-step checklist that any new investor should use to get their first real estate investment. These steps were specifically designed for you to not just get one rental, but many more following your first purchase. These are the exact steps Scott took to reach financial freedom in under ten years, and if you follow them as well, you might be able to do it faster.In This Episode We CoverThe ten steps to becoming a successful real estate investor (even if you have no experience)Frugality and its impact on how you invest and grow your wealth over timeCalculating your dollar per hour cost and choosing whether or not to outsource workThe four levers of wealth creation and how to pull them all for fast-paced wealth buildingHow Scott went from entry-level worker to CEO of BiggerPockets in under ten yearsBuilding your “investor ability” so you can make smarter decisions fasterAnd So Much More!Links from the ShowRookie Readiness ChecklistAshley's InstagramTony's InstagramBiggerPocketsReal Estate Rookie PodcastReal Estate Rookie Facebook GroupBiggerPockets ForumsPodcast Guest Onboarding FormBiggerPockets BookstoreThe BiggerPockets Money PodcastDish NetworkThe Real Estate PodcastJoshua Dorkin's WebsiteBrandon Turner's InstagramDave Visaya's Podcast Editing ServicesMr. Money MustacheAirbnbVrboMindy Jensen's InstagramFrom 400 Credit Score to Making $17,000/Month in Passive IncomeBiggerPockets BootcampsFREDBiggerPockets CalculatorsBuildiumConnect with Scott:Scott's BiggerPockets ProfileScott's Rookie Readiness ChecklistCheck out the full show notes here: https://biggerpockets.com/blog/rookie-200Interested in learning more about today's sponsors or becoming a BiggerPockets partner yourself? Check out our sponsor page! Learn more about your ad choices. Visit megaphone.fm/adchoices

We are in the age of social media, so how do you use that to your advantage? How do you create a platform that helps you reach your career goals? What content should you create to target your desired audience? Today’s guest, Kerwin Donis, shares how he and his brothers have built the platforms that have helped them partner in over 600 units of apartment syndication deals.The Donis Brothers have a wide range of platforms, from YouTube to TikTok, where they document their journey and share their wealth of knowledge. They have about 12,000 followers on Instagram and 63,000 on TikTok, but their main focus is their podcast. Kerwin, the head of their social media, says their initial goal was to document their journey and build credibility as young investors. While that is still their goal, they have become more strategic about what they post and the audience they post for to grow their platform and their online community. So how do you begin? You begin now—stop waiting! Kerwin emphasizes that when you start, it won't be perfect, and that's okay. Create the content you’d want to consume, aim to entertain and educate, and the rest will come. The benefits of building your platform are endless because you never know who you’re reaching—whether that be a future mentor, partner, or client. There is no better time to start your social media journey and no better place to start than this episode! In This Episode We CoverBuilding a platform with little knowledge (it’s not as hard as you think)How to manage different social media platforms and decide which one should be your primary focus The various benefits of building a platform and how to get the most out of your platformsContent marketing and how to target your ideal audienceCreating content without a big team and how to keep yourself accountableLead magnets and how to use them to increase your marketing efforts And So Much More!Links from the ShowAshley's InstagramTony's InstagramBiggerPocketsReal Estate Rookie Youtube ChannelReal Estate Rookie PodcastReal Estate Rookie Facebook Group$1M in Real Estate in Just 1 Year (and How You Can Do It Too!)How a College Dropout Got a Seat at the Millionaire Investor TableLili Thompson's Youtube ChannelOn the Market PodcastBiggerPockets ForumsPat Flynn's WebsiteSmart Passive IncomeYour First Real Estate Investment PodcastDerrick Acuff's InstagramFrom Restaurant Waiter to 100+ Deals in Only 4 Years w/ Derrick AcuffGrant Cardone's WebsiteVenmoHow to NOT Go Bankrupt: 5 Mistakes New Investors Make Connect with Kerwin:Kerwin's InstagramThe Donis Brothers WebsiteThe Donis Brothers InstagramThe Real Estate Monopoly PodcastThe Donis Brothers Youtube ChannelCheck out the full show notes here: https://biggerpockets.com/blog/rookie-199Interested in learning more about today's sponsors or becoming a BiggerPockets partner yourself? Check out our sponsor page! Learn more about your ad choices. Visit megaphone.fm/adchoices

This week’s question comes from Mantas on the Real Estate Rookie Facebook Group. Mantas is asking: My buddy placed an offer substantially above asking price and the seller, before accepting the offer, asked my friend if he would pay the difference if the appraisal came in lower than the offer. Anyone encountered this situation and what would be the best response if any?Ah, the classic appraisal gap/appraisal contingency. During hot housing markets (like we’ve been experiencing over the past two years), these types of offers have become more and more common. A seller wants to be sure that they can get the sales price they want and the buyer often has to pay the price to cover the appraisal difference. But what are some ways to get around this if your appraisal comes back low?Here are some suggestions:Do as much research beforehand so you know an appropriate appraisal value before the appraisalRun comps using real estate data tools (like PropStream) or look up comparable home sales in your area using a listing serviceChallenge the appraisal buy checking for discrepancies and running compsGet a different appraisal ordered or switch to a more flexible lender if all else failsAnd more in the episode…If you want Ashley and Tony to answer a real estate question, you can post in the Real Estate Rookie Facebook Group! Or, call us at the Rookie Request Line (1-888-5-ROOKIE).Links from the ShowReal Estate Rookie PodcastReal Estate Rookie Youtube ChannelReal Estate Rookie Facebook GroupPropstreamMLSRealtor.comZillow Check the full show notes here: https://www.biggerpockets.com/blog/rookie-198Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Check out our sponsor page! Learn more about your ad choices. Visit megaphone.fm/adchoices