Real Estate Rookie

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

If you’re unsure about real estate, run the numbers. It’s that simple. Once you run the numbers, you’ll have clarity on which decisions to make and tangible reassurance that you made the right ones. Today’s guest, actress Brec Bassinger, shares how focusing on the numbers has given her the confidence to become the successful investor she is today.Brec’s name may sound familiar to some of you. She’s been the star of Bella and the Bulldogs and the new hit show, DC’s Stargirl. Brec’s interest in real estate began after a trip to Big Bear with her boyfriend when she realized the earning potential of short-term rentals. She decided to buy a condo and had her first short-term rental within six months. The speed at which she got her first deal may seem intimidating, but Brec’s confidence came from the numbers she calculated and the profits she knew she could make.During her first season of Stargirl, Brec had to share a small apartment with her coworker because that’s all she could afford with her fluctuating income. Now she makes more money by living in an expensive high-rise apartment while renting out her old space. Real estate has allowed Brec to supplement her fluctuating income without a W-2 and the freedom to live the life she wants. And even though she plays a superhero, her story proves that you don’t have to be one to invest in real estate. In This Episode We CoverHow to confidently close on your first investment property and move past fearBecoming more financially stable by supplementing your income with a passive income streamThe importance of running the numbers and how to use the simple rental calculations to make profitable decisionsBuilding a relationship with your property manager and eye-opening questions to ask themHow to qualify for loans without a “steady” incomeAnd So Much More!Links from the ShowAshley's InstagramTony's InstagramBiggerPocketsReal Estate Rookie Youtube ChannelReal Estate Rookie PodcastReal Estate Rookie Facebook GroupAirbnbBPCON202220 Deals in a Year as a Professional Basketball Player w/ Terry HarrisTerry Harris' InstagramZillowAirDNABiggerPockets CalculatorMLSFrom Sleeping in His Car to Multi-Unit Landlord & The “Nomad” StrategyNick Cooley's InstagramConnect with Brec:Brec's InstagramCheck out the full show notes here: https://biggerpockets.com/blog/rookie-197Interested 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 Tony’s Instagram direct messages! This rookie real estate investor is asking: I have a good chunk of equity in my home, should I pull out cash to purchase a rental property? If not, what should I do with the equity?If you want to know how to use home equity to buy real estate, you need to know your options first. As many homeowners are sitting on massive equity gains, thanks to the past two years worth of price run-ups, they’re asking how they can use this equity to their advantage. For most investors, you’ll have two options in how you take this equity out of your home’s value. But, both of them need to be intelligently evaluated before you make a decision.Here are some suggestions:Look at your current mortgage rate and see if it’s higher or lower than today’s average interest rate to refinance Ask your lender about a HELOC (home equity line of credit) as well as the terms, interest rates, and duration offeredInterest rates are likely to rise, so locking down a great rate now may help you in the futureKnow your exit strategy (flip vs. BRRRR vs. buy and hold) for each different kind of financing optionAnd 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 GroupBiggerPockets ForumsCheck the full show notes here: https://www.biggerpockets.com/blog/rookie-196Interested 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 often hear about house hacking as a means to an end, a simple way to start your real estate journey, but what if it could be more? What if house hacking could be your ticket to financial freedom? Today’s guest, Craig Curelop, author of The House Hacking Strategy, shares how he reached financial freedom through house hacking and how to follow along in his footsteps.Craig started where most do, hating his W-2 and working too much. He began researching how to earn a passive income and came across BiggerPockets. Within six months, Craig started working at BiggerPockets, moved to Denver, and decided to start living his life the way he wanted. Using his house hacking strategy, he went from being $30,000 in debt to financial freedom in two and a half years. Before you get into house hacking, you need to understand the basics, and today Craig breaks them down. He goes over the different ways to house hack and its advantages and disadvantages. Craig also talks about how to live with your tenants and the boundaries needed for your ideal house hacking situation. Craig paints the whole picture so you can make an informed decision and decide if house hacking is the way for you to become financially free too (or at least build more passive income)!In This Episode We CoverWhy house hacking is ideal for new and young investors and how to get started The different ways to house hack and how to turn an unused space into an income-generating areaThe noteworthy advantages and disadvantages of house hacking and how to decide if house hacking is for youLiving with tenants and how to set landlord boundaries for you and your tenant’s comfortHow to vet tenants and red flags to look out for before offering them a leaseCollecting rent and the processes to have in place to help you stay in “landlord mode”And So Much More!Links from the ShowAshley's InstagramTony's InstagramBiggerPocketsReal Estate Rookie Youtube ChannelReal Estate Rookie PodcastReal Estate Rookie Facebook GroupAirbnbAJ Osborne's WebsiteThe CRE CircleRentRediThe Real Estate PodcastCostco10 Income Streams on 1 Property by “Land Hacking” w/ Kai AndrewKai Andrew's WebsiteApartments.comConnect with Craig:Craig's InstagramThe FI TeamInvest2FI PodcastCheck out the full show notes here: https://biggerpockets.com/blog/rookie-195Interested 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 best real estate investing apps are ones you could not live without. Whether you’re a full-time real estate investor, managing a few properties, or still trying to get your first deal done, these apps can help you find, manage, and cash flow your rentals quicker. Ashley and Tony both use these apps daily and probably couldn’t run their real estate investment portfolios without them.To help you scale up your real estate investing, Ashley and Tony have written down their most-used real estate investing apps. Now, anytime you see a potential deal, need to chat with a team member, or simply want to time how long you’ve been working at a rental property, you can. Most of these apps are free, so you can download them today, try them out, and buy your first (or next) deal faster!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 GroupBuilding an Out-of-State Empire by Using the Right Type of Real Estate Agent w/ Sarah WeaverZillowRealtor.comLandGlidePopStreamOnXDealCheckMLSHomesnapPersonal CapitalEasy CalculatorGoogle taskGoogle CalendarGoogle DocsSpliceQuickbooks TimeMileIQSchlageRingLoom MobileLoomMonday.comWrikeMiroCheck the full show notes here: https://www.biggerpockets.com/blog/rookie-194Interested 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

Jeffrey Donis, a multifamily investor and capital-raiser with the Donis Brothers, shares his incredible journey in real estate. At just 23, he helped co-sponsor over 600 units, emphasizing the power of networking. Jeffrey discusses how to build credibility through social media and the importance of the 80/20 rule in nurturing relationships. He outlines practical networking strategies, including follow-ups and offering value without money. With ambitious goals ahead, Jeffrey showcases how meaningful connections can drive success in the real estate landscape.