49: Targeting New Builds to Get Around the W-2 Requirements for House Hacking with Andres Bustamante

Real Estate Rookie

BiggerPockets

How To, Education, Business, Investing, Entrepreneurship

4.8 • 1.7K Ratings

🗓️ 3 February 2021

⏱️ 64 minutes

🔗️ Recording | iTunes | RSS

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Summary

Not many college students get their real estate license while in college, let alone during freshman year. Andres Bustamante did just that, becoming a leasing agent so he could cover his housing and tuition costs. Andre didn’t know if he would go into real estate full-time after college, but when he found the BiggerPockets Podcast in the Summer of 2019, he decided to make the jump. Andres reached out to a guest on the show, who later became his mentor and asked Andres to join his team! In his first year of full-time real estate Andres managed to sell 15 houses, with 15 more under contract as we speak. He lives in a house hack, has another house hack under contract, and bought an AirBnB as a short-term rental. Since Andres had 1099 income he wasn’t able to take the traditional route to house hacking that W2 employees have available to them. Instead, Andres found new construction projects going up, put down earnest money for them, and locked in the deal. As Andres describes, he was able to get into these projects at “stage 1”, so as the builders were building, Andres was guaranteed a price for a house that was appreciating everyday in his growing market. As Andres has been house hacking he's come up with some great ways to verify that tenants will work for you and for your profit margins. He talks about what he provides, what he puts in his leases, how he decides on tenants, and more helpful tips for any aspiring house-hacker! In This Episode We Cover: How to get a property for house hacking when you don’t have a W2 What you’ll need to get a new build under contract How earnest money differs from a down payment The criteria you should have in place for househack tenants How to split utilities among tenants when house hacking How to make equity profit from new builds And SO much more! Links from the Show Real Estate Rookie Facebook Group BiggerPockets Podcast BiggerPockets Podcast 352: No Driver’s License, No Money, No Excuses: How Diego Corzo Blazed a Trail to 18 Doors BiggerPockets Podcast 329: Financial Freedom Before 30 Through Just 10 Deals With Felipe Mejia Diego Corzo’s Instagram Stessa Ashley's Instagram Tony's Instagram Check the full show notes here: https://www.biggerpockets.com/rookie49 Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	This is Real Estate Rookie Show, number 49.
0:05.0	I just put a $3,000 earnest deposit.
0:10.0	There's the craziest thing ever.
0:12.0	So the home, I got it for $3,26
0:15.0	and now I legit checked this yesterday.
0:18.0	The same home is selling for $398,000.
0:22.0	Tony, you know what you're going to say?
0:26.0	I didn't say anything.
0:27.0	Is there a 9er in there?
0:29.0	I know the reference there.
0:32.0	So I think episode 39
0:35.0	or was one of Tony's first episodes
0:38.0	that he joined me as co-hosts
0:40.0	and he had never seen Tommy Boy.
0:42.0	So now every show that has a 9er in it
0:45.0	is going to be a nice little joke
0:47.0	between us and the listeners who are with us
0:50.0	for that episode.
0:52.0	Tony has since watched Tommy Boy
0:54.0	and now will become a household client.
0:56.0	Absolutely.
0:57.0	Every, it's it's mandatory watching
	...

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