Real Estate Rookie

This week’s question comes from Carolyn through Ashley’s direct messages on Instagram. Carolyn is asking: I just bought my first investment property in cash. Am I still considered a first-time homebuyer? What happens if I take out a mortgage on that property?First-time homebuyer loans tend to confuse many real estate rookies. When it comes to first-time homebuyer loans and programs, what options do you have? Some investors think that they can only use loans like the FHA loan for their first home, while others may be enticed by first-time homebuyer programs that boast a lot of benefits, but with a ton of red tape. Which loans work for which investors, and what happens when you want to refinance?Here are some suggestions:Remember that loans like the FHA loan are not reserved for first-time homebuyersSpecial loan programs designed for first-time buyers could help you fund your down payment, but you’ll want to read the fine printLook for state-specific grants when buying your first home (you could come across some free funds!)If you are going to refinance after a cash purchase, be sure to double-check the “seasoning” period with your lenderAnd 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 Facebook GroupBiggerPocketsCheck the full show notes here: https://www.biggerpockets.com/blog/rookie-212Interested 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

While constantly hearing success stories can be encouraging, it can also start to seem unattainable when you don’t know where to start. How did all these successful investors get to where they wanted to be? And if they can do it, why can’t you? Today’s guests, Simon Murillo and Kristina Vaio adjusted their mindset from “why them?” to “why not us?,” which resulted in some serious short-term rental success. It took a while for Simon and Kristina to become cohesive in their real estate partnership. Simon has been interested in house hacking since 2018, but Kristina couldn’t envision sharing her home with strangers. For his first investment, Simon wanted to invest long-distance in his hometown, but Kristina had reservations about investing in a property she couldn’t physically manage. Despite their opposing views on what their first investment would look like, through a lot of communication, education, trust, and compromise, they found an investment they agreed on—their basement.With the help of a rockstar real estate agent, they were able to close on a house in December of 2021. It took a few months of blood, sweat, and tears to set up their basement rental, but within just thirty minutes of posting their short-term rental listing, they got their first booking! Now, they’re averaging about $4,500 each month and are looking for their next home to house hack. They plan on doing this at least two or three times until they’re financially free in their forever home—and you can do it too!In This Episode We CoverConvincing a skeptical partner and how to find compromise through mutual goalsHow to ease into investing through small steps and self-educationBuilding a team that can help you with your vision—from investor-friendly real estate agents to reliable contractorsThe benefits of going to investor meetups and being surrounded by similar people with similar goalsManaging your short-term rental while balancing your full-time W-2Increasing the value of your property through unique upgrades and renovationsAnd So Much More!Links from the ShowAshley's InstagramTony's InstagramBiggerPocketsReal Estate Rookie PodcastBiggerPockets ForumsAlpha Geek CapitalReal Estate Rookie BootcampAirbnbSarah Robinson's InstagramRedfinZillowFacebook GroupsNextdoorMLSBiggerPockets Agents FinderHospitableReal Estate Rookie Facebook GroupConnect with Simon and Kristina:Simon's InstagramSimon's BiggerPockets ProfileKristina's InstagramCheck out the full show notes here: https://biggerpockets.com/blog/rookie-211Interested 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 term “other people’s money” is common in the rental property industry. You may hear successful investors use it all the time—but what does it mean? Who are these “other people,” and why are they giving out money so freely? Don’t worry—rich relatives are not necessary for this episode of the Real Estate Rookie Podcast. We’re not talking about taking money from your Grandma. We’re talking about private money lending.Who better to bring on to the show than Alex Breshears and Beth Johnson, authors of the new BiggerPockets book, Lend to Live: Earn Hassle-Free Passive Income in Real Estate with Private Money Lending? Although tailored towards would-be passive private money lenders, Lend to Live drops some serious knowledge that the everyday investor can use. If you’ve ever wanted to know where to find private money, how it works, and how you can use it to grow your real estate portfolio, this episode is a great place to start.Alex and Beth break down the fundamentals behind private money lending, what makes a great private money lender, and how to vet yours when accepting money. Private money can create phenomenal opportunities for active investors, but it comes with legal landmines that are easily activated if you don’t know what to look for. So, before you start accepting money from a local lender, be sure you read Lend to Live first! In This Episode We CoverWhat makes a great private money lender and the qualifications they should possessWhy become a private money lender and who private lending is best suited forHow to find private money even if you’re just starting to grow your networkStructuring a private money loan and keeping yourself legally protectedPrivate money red flags and what investors and lenders should look out forPoints, rates, and other lending lingo you need to know before taking a loanAnd So Much More!Links from the ShowAshley's InstagramTony's InstagramBiggerPocketsReal Estate Rookie PodcastBiggerPockets ForumsBiggerPockets BookstoreThe BiggerPockets PodcastPrivate Money: What the Experts Warn Against Before You Lend (Or Borrow!)Connect with Alex and Beth:Alex and Beth's Email Alex's BiggerPockets ProfileAlex's LinkedIn ProfileBeth's BiggerPockets ProfileBeth's WebsiteCheck out the full show notes here: https://biggerpockets.com/blog/rookie-210Interested 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

As an investor, finding and closing on a deal is only the beginning, and it sets the tone for how the rest of the deal will go. So what criteria should you have to make finding a profitable deal easier? Once you find a deal that's promising, how do you do your due diligence before submitting an offer? In today’s episode, Kenneth Donis shares his bulletproof process for finding and underwriting profitable deals.Kenneth is the Head of Marketing and Acquisitions in the Donis Brothers’ operation. The Donis Brothers have a little more than 1,000 units under their belt and show no signs of slowing down. Kenneth is responsible for finding those deals, underwriting them, and meeting with brokers. With a growing portfolio, Kenneth’s process has become more efficient, and the proof is in their success.Kenneth breaks down his process into three parts—creating criteria, analyzing the deal before submitting the offer, and submitting a letter of intent. He explains how to create a buy box based on your budget and the importance of ensuring your overhead is covered. Taking to heart just a few of the tips that Kenneth shares today could put you on the fast track to closing on your next big investment property!In This Episode We CoverCreating criteria to find great deals based on your goals and budgetDefining your ”buy box” and what you should include in yoursMultifamily deal analysis and the quotes you’ll need before submitting an offer Drafting the letter of intent and the key elements to a perfect offerHow to build lasting and beneficial relationships with mortgage brokersRaising capital from outside sources and using creative financing to fund your dealsAnd So Much More!Links from the ShowAshley's InstagramTony's InstagramReal Estate Rookie PodcastMLSApartments.comBPCON22Real Estate Rookie PodcastChanging Their Family’s Fate by Building a 600+ Unit Portfolio (At Age 20!)How a College Dropout Got a Seat at the Millionaire Investor TablePost, Invest, Profit: A Step-by-Step Guide to Content Creating for InvestorsBiggerPockets CalculatorsConnect with Kenneth:The Donis Brothers’s WebsiteThe Donis Brothers’s InstagramThe Donis Brothers’s Facebook PageThe Donis Brothers’s TwitterThe Donis Brothers’s Tiktok The Donis Brothers’s Youtube ChannelThe Donis Brothers’s PodcastCheck out the full show notes here: https://biggerpockets.com/blog/rookie-209Interested 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 Aaron on the Real Estate Rookie Facebook Group. Aaron is asking: How do you set up your rental income for tax season? Do you just show your accountant, for example, a Stessa report? Do you give receipts to your tenant when they pay so you have one for tax season?Navigating the world of real estate accounting can be tricky. Do you write everything down by hand or update your numbers in tax software? Ask two real estate experts like Ashley and Tony and you’ll see that there’s usually one clear way to gather up your rental income so your CPA doesn’t have a mountain of paperwork and an avalanche of questions to ask you.Here are some suggestions:Use software like Stessa or QuickBooks to easily track your income/expenses for tax timeSend tenants rent receipts (if they ask for them) using software like Apartments.com and RentRediKeep clear records of how much you received in rent, spent on maintenance, and any amount of vacancyGet your bookkeeping in place from the first property onwards (your future self will thank you)And 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 Facebook GroupStessaQuickBooksApartments.comRentRediGoogle DriveOneDrive Check the full show notes here: https://www.biggerpockets.com/blog/rookie-208Interested 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

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