This guy is literally the best on RUclips in what it does. He always break down every single points and make everything as clear as possible. Im glad i found your channel
PittsensX lmao ur RUclips was original with the waves tutorial, u could’ve lowkey been a RUclipsr like some DDG or Smooth Gio etc etc could always try Right now though !!
@@spicyshizz2850 lol i grew my hair out a year a couple months later after my last wave video. Now i got twist (not lock) sometimes i do cornrows, or sometimes i just rock my afro
Patience is key. Don't get caught up thinking you *have to* buy now. There were a lot of people who made a ton of money 2009-2011 both in real estate and in stocks. Just be prepared to take advantage of those opportunities when they do arrive.
I totally agree, it's all about just waiting and having the patience for the right deal whenever it comes up, whenever that may be. No sense ever buying something just to buy.
I like that you don't trash everybody in the business and imply you are the only one to be trusted and everyone else is running a scam. You tell great stories in detail and give good opinions/advice.
@@Betoruffo college is a horrible investment right now because it's drastically overpriced. go to a trade school for a few months or apprentice with a tradesman and learn an occupation related to real estate such as plumbing electrician HVAC roofing framing. Save as much of your income as possible from working in that trade and then start buying real estate. You will have four years of earning money while your friends going to college are piling up debt spending money on college tuition. Four years later you'll have no college loan debt and you will own real estate while your friends are just starting to pay down their college loans.
You can still look at deals when you're not in a position to buy, reason being you'll gain more and more experience analyzing deals and learning your market. It sucks if they get away but, In my opinion you learn more and you have to accept the fact that the deal will most likely get away and mentally prepare for that
Well I'm L.A. borm and raised but once I became obsessed with buying real estate I gave in and moved 4hrs away to Vegas. For MANY reasons it's great here!
As always with my investment, I like to focus on the *CASHFLOW* . If a property does not pay me every month ("enough") money I am not even going to go and look at it.
The struggle is real. I had to expand my area I do inland empire, riverside and la county. It takes persisitence with time got a few deals. I am the same as yourself investor/realtor.
I live in the IE and was thinking about investing soon is it well priced? Or really expensive out here? Im just starting off as a 21 year old....any advice would be very appreciated
The answer to that is twofold: 1. I don't have enough money to buy an apartment building. Even if I punk down $300k, that won't get me much in terms of units...especially in Los Angeles, that wouldn't buy anything. If I opened up my area, even elsewhere, I could likely get something in the $1.1-$1.3m range at best, and that's not enough to get those large buildings. 2. Those properties have relatively low returns at the moment. I looked into 8-10 units in other states, and at best they broke even or only provided a few hundred dollars profit per month. I couldn't justify investing that much, getting a property manager, renovating individual units, and raising rents just to make a little extra money. Not when I can find a 2-4 unit around me that would make the same amount of money without the headache of so many tenants. If I had $1m+ to piunk down, that might be a different story and I'd certainly consider it depending on the deal. But more units don't always mean more money.
Juanco - I wouldn't sell. I bought them so cheap (some 1/4th the value they're at now) so my tax basis is incredibly low. I also have such low 30-year rates on them that I'd never want to give up, they were once-in-a-lifetime interest rates that I highly doubt I'll ever be able to get again. Like a 3.375% loan for 30 years...
Graham Stephan Hey Graham, I’m a lender in Ontario Canada and the longest fixed term we offer is 5 years. Just wanted to clarify you are able to lock in that 30 year at 3.375%?
I live in New York City and once Amazon said they were moving to Long Island City, all the property values in the neighborhood and the surrounding neighborhoods shot up significantly.
You know, there are a lot of people out there who think it’s crazy to spend $75,000-$100,000 on renovations? I think this means that those people don’t understand the Southern California property market and/or they only paint and put in new carpet before renting out the property. I’m with you, Graham!
I’m eating all this knowledge like breakfast and lunch. This is great. Tell you what. This is a real class room lecture here. Someone who does it, teaching you how to! Nice work. Happy New Years!
I am watching your videos like crazy! And I am happy they are not ending, which means there are so much more to learn! Graham! You are amazing and make everything so clear and now I want to make the best version of myself and take the whole control of my life and what I do with it! And as always you got me SMASH THAT LIKE BUTTON!
You're right, Graham! Patience is required for success in real estate. My dad was a realtor for Century 21 in Los Angeles back in the 1980s. He didn't have a lot of patience 🤣 I remember he'd come home stressed out all the time. One evening, he had to go back to the office to get something. My mom, brother and I all got in the car (my dad drove a 1976 Chevy Monte Carlo) and my brother and I went inside the office with him. Some of the realtors kept candy dishes on their desks so my brother and I started grabbing some candy 🍬 By the time we got back in the car to leave, I was sitting in the backseat and put a Jolly Rancher in my mouth and bit right into it. My dad yelled, "Stop biting the candy! I can't stand that crunchy sound!" 🤬 It's one of my earliest childhood memories. Some kids remember watching Saturday morning cartoons, I remember getting yelled at over a Jolly Rancher by my stressed out dad in his yellow Century 21 realtor jacket 🤣 He quit real estate several months later. The stress was too much 🌡️🤯
Golum This isn't timing the market. I'm not planning to wait until a recession and buy in at the bottom. I'm simply waiting for buying opportunities and building reserve in stable assets in the mean time (just like many big banks and corporations are doing as well)
Intelligent Money Investing as long as the strategy involves consistent investments in the meantime while doing so but definitely not down to stow 100% aside because no one can predict when/where the bottom will be.
I went through the same thing and it's happening again. During the recession, I bought 3 duplexes in Fort Worth, TX, but around 2015 the market started smoking and there was less good deals. I hit the road and drove to about 8 states in the Midwest (I buy for income 1st and appreciation 2nd). I was looking for markets coming back but doing so slower than the DFW area. I went to Kansas City, Des Moines, IA, Grand Rapids, MI, Indianapolis, Cincinnati, and St. Louis. It's so important, in my opinion is to go check out places in person. I ended up buying a duplex in Cincy for 52,900 in 2015. It currently rents for $1455/mo and it has appreciated to about $100k. The market has come back there so now I'm having a hard time finding good deals anywhere. I don't want to force it.. I'm starting to think it may be a good idea just to hold onto my money rather than risk overpaying.
As a real estate agent? Take on as many clients as you can early on, don't be afraid to do leases, network with other agents, and remember that this is a long term business. As for investing, just have the patience to buy only when the numbers make sense and when you can afford it. Pass on the deals that don't work!
Look at the outskirts of Cedar Rapids Iowa, and look at development. Growth in the area is up, and the further out of town you go, the less land costs.
It's so good to hear that I'm not the only one that gets destroyed by missing out on deals because of slow financing and the minutia of bank communications
I wrote a comment a few weeks back about the absurd real estate prices in major cities. I live in NYC and as you can imagine, the market is out of control. This is due to speculators and greedy real estate investors driving prices up. Those practices have also wreaked havoc on the rent market. My heart goes out to families trying to live the American dream. I like watching your videos but you treaded lightly on this topic. Your friend Kevin was a bit more brutal, yet very practical at the same time. The real estate market is going to take a hit and I hope it's a wake up call.
Speculations and "Greedy" investors simply play on market economics of supply and demand. There's no way to be greedy if others don't get a value or service rendered in return, there's always an exchange of value. I doubt we'll see a crash, I think realistically we'll see a slow softening of prices and the markets will behave much more stable than they have in the past. But we shall see, no one knows for sure.
I hear ya Graham, we shall see. Its discouraging what's happening with prices, plus the factoring of increased interest rates...BTW, thanks for the quick response and feedback. There's a reason you're my favorite RUclipsr 👍🏾.
Typically 20-25% depending on the deal. If I can do the deal at 20%, I'd rather than and then spend the extra difference remodeling it and fixing it up.
Good to know. That's a lot of cash to save up! Do you use your income from being an agent, AND the cash flow from your other properties to save up for the next house, or are you dumping the cash flow from the other properties back into them to pay them off quicker?
Hey Braden, it's mostly my commissions from working as an agent. The cash flow from the properties is enough to pay my living expenses, so everything I make elsewhere is profit - and the biggest source of income, by far, is my commission as an agent. So I'll just save all that up and then move on to another property when I have enough.
If you can get break-even on 20% then you can thank the insanely low interest rates plus the relatively naive state of the real-estate investor market in the US. But now you're seeing that market is changing. More and more Joe Public are getting into it. When you reach 50% equity for break-even you'll have reached rough parity with stock market investing (long term). No more easy cash-flow money. We reached that situation in NZ years ago, but the last few years as interest rates dropped the last percent it got tighter & tighter.
Homes in my area are cheap but still overvalued. Everyone seems to overprice their home here and every agent I've worked worth keeps telling me houses are on the up around here. 100% of it is garbage. The population is dropping fast in my area and it's a buyers market. I've been watching the market for a few years and can confidently say which houses are overpriced or not. So many tell me "a home's value is...." and I cringe. I watch home sit on the market here for years "at their value". New flash: If they're not selling, they're prices above value.
There's absolutely no need to panic, or really do anything drastic for that matter. The real purpose of this is simply to take your time, not to rush into a deal, and to make sure the numbers work before plunking down any money.
I wouldn't say it's the end of a bull market, just that prices will slow down, we won't see the growth we have been, and I think that's a total normal aspect of the market.
Graham Stephan You're young bro stay in cash. Overleveraging yourself in debt with too much faith in the USD isn't safe. That crash is going to hurt you bad. 1. You've never experienced a market crash 2. Your debt is astronomical and the properties you own will lose crazy value, and your tenants may be turning over even quicker because of the economy. 3. Diversify....
Jarron Jackson Jarron Jackson Just wanted to reply to you: 1. I started working in real estate in April of 2008, so arguably the first 4 years of my career have been spent watching the markets decline. While I hadn’t seen or experienced the the run up from 2004-2007, I did see the aftermath. 2. I’m barely leveraged, if anything I wish I had more. I’m about 40% debt to real estate equity. Never raised rents on my tenants except one, and only otherwise increased rents during a vacancy. So I’m still under market for my rentals, and that’s kept my tenants happy, paying on time, and rarely a vacancy. Most of my tenants have been with me for 6 years. As for values, it makes zero difference what the home is worth. Three are owned outright, and the other two are long term holds. So I’m not concerned. 3. This is the only thing I agree with. I could likely use some diversification.
Think new, buying apartments and renting them out as is is not profitable at all where I live. As I'm still waiting for my rental project to yield any net profit I'm looking at other deals. Houses are always better than single apartments but I recently bought an apartment in a house at the ground floor, added a second entrance, sectioned it, had another kitchen and bathroom built and sold each unit. The cost for the apartment was €320k, spent about €50k on making it into two apartments and sold them both for €460k total. €90k profit, that's more than I make in a year at work. I could have rented them out at €1500 a month each and it would be yield a positive cash flow, but I wanted to cash in. Another thing I've seen people have been doing in the capital lately is to buy a family apartment and install a ton of new bedrooms and rent the single rooms out to students. I'm considering trying if something pops up near the university in my town.
Hey Graham, You are doing so many things right but I get the feeling you need to really zoom out and get a little more perspective. Who knows when things will actually dip but taking a look at even some of the generalized metrics like Case-Shiller Index compared to wage growth over the same period makes me a bit nervous. Love what you are doing and tons of props for all you do but saving money now and truly exercising patience might dramatically grow your returns over the next 10 years. Best of luck and keep cranking out the content!
I wouldn't say we're in a recession, and I think we're farrrrrrr from that. If anything I think we just won't see the type of crazy growth that we've been seeing the last 4/5 years and that's totally normal, and if anything, a sign of a healthy and stabilizing market. As for how much values far, I HIGHLY doubt we'd see anything anywhere close to what we saw in 2008. Typically markets might dip 10-15% for a few years, then recover. Overall I can't see it making a huge impact.
It's impossible to say nationwide, either, because real estate is a local economy. Some markets are much more resistant than others. In 2009, I know several markets that crashed over 50%...others went down 15%. It just depends on so many factors.
I appreciate your honesty on the difficulty of finding properties. I'm also in a high-cost coastal "supercity" and the numbers are brutal. It seems like there is just too much capital chasing too few properties and things have become overvalued. Patience might be mean waiting for the next recession.
You should look in Pennsylvania in small college towns. I found a 5 bedroom, 3 bathroom home for 70k. It's in the perfect location to rent as student housing, by the room. The mortgage is cheap, everything else is cheap. By my calculations I'd be getting a 300% return of interest. By renting each room at 4 or 500 a month.. I'm definitely going to jump on some of those deals in the future.
Hey graham! I can see your struggle for finding investments in LA. You should honestly look into the market here in Bakersfield. Ive found many people from LA tend to sell there homes in La to come down here since Its relatively cheap. A home in La for 600k can be found here for 200k. Just a thought becuase i honestly believe theres so potential here with such a growing population.
By the way bakersfield is only hour and half from LA so its not too far from you so mantaining the properties wouldnt be too much of a hassle for you. Too many people are selling there homes in La and finding an even better home here for CASH from the equity!
I ran into the same problems in Hawaii.. only that happened in about 2015. I am holding cash, indexing, and investing passively in private placements. Looking seriously internationally also.
Graham Stephan Rents have been flat since 2015. Property values have continued to go up. Condos 5-20% per year, SFHs 8-12%. It's nutty. I am in process of cash out refi a couple properties, 75% LTV, should get about $100K out per, not too bad.
Graham Stephan I'm planning a fun/due diligence trip to Southern CA mid-Sept.. would love to meet up and talk/look at some real estate. Any good way to get a hold of ya?
Sales are declining because wages are stagnant and inflation rose 2.9% just in June. The stock market might be doing decent, but the real economy is in the shitter. More than half of Americans can't even afford a $400 expense without selling something first or waiting for a paycheck.
I agree with everything you said. I'm in Indianapolis and it seems harder to find money making property deals this year. Prices have gone up. I plan to hold my rentals and be ready when an opportunity comes up. Do not force a deal.
West Florida near Clearwater Beach/Tampa. Duplexes $250-600k. I am on the fence about a great little beach cottage duplex for 345k with rents 1300 each unit. 15% down 30 years 5.875% cash flow about $500. A triplex will cash flow say $1,000 around 400-600k. This is a typical deal and numbers for my area. Also I use 4.4% for appreciation as that is the 50 year average Gary Keller used in the Millionaire RE Investor. Graham, I am a Broker and we have a PM company where I help investors (absentee) and I can start doing these deals for you and manage them. Florida is #1 in the country for buying RE as 1,000 people a day are moving here. You could buy two or three here for each one in LA. I just sold a home in my HOA and the owner lives in Calabassas Cali., had it rented since 1994 and never once saw it, does this all over the country. I understand your long term equity play buying in LA, however, cash flow is just important as you can divert your funds in the operating account to fund new deals rather than your own money. So I own many, and I can now fund all my deals from the cash flow. Watching your videos tell me what the future prices looks like in Florida and makes my prices seem lower. Also, you should be doing property management for duplexes, you will be the first one to know the owner wants to sell, and as a former #1 listing agent at a big box store (ego violin) I can say cold calling landlords is a great way to back door into some listings and convos with the owner about owner financing. I was born in West Covina btw.
Graham, I'd like to hear your thoughts about how much of an investor's available money should be tied up in one deal. I did great with three duplex properties in San Francisco. All 3 had cashflow from the first day. Then I sold that all of my properties and put all but about $400,000 or my net worth into one 20-unit apartment building in the San Fernando Valley for $2,200,000 with $700,000 down. Lots of mistakes, and I lost money from day one until I unloaded it 5 years later (at fire sale prices). My mistakes ... too much $ in one deal; not enough liquid cash in other than real estate (over-extended); purchased in an area that is not where I live (as I think it's important to be able to get to any property you own within 90-120 minutes; the area looked ok but turned out to attract tenants who trashed units with high turnover. Etc. Now I'm just sitting in my single residence house and afraid to invest in more properties...especially after the long bull market run or real estate and stock market.
I have done quite a few deals and do several rental properties. I hope this guy on the video answer your questions because he seem to have a lot of really good and practical advice ,, if you go back into your post you will see that the answer is within your post .. you overextended your down payment in an area that was an area you didn't live in... the three rules are the same,,, location location location ,,, better to get a 4 flat in a really good high demand area ,, then 50-unit in a low demand rougher area. Another thing I don't know your age range but the older you get the more you don't want a mortgage or very little mortgage
Hey Graham, Just wanted to say I recently came across your channel and I am obsessed. You have inspired me and possibly changed my life. As a typical teen, I was thinking to go to college, go into debt and spend my life paying it off. Your basics guide to real estate investing saved my life Could you do a video about debt? I know now it’s a huge thing to be debt free but I know there are advantages to having debt and being debt free isn’t always the answer. Can you do a video more in-depth about that to counteract all the living debt free videos Thanks! Also more videos targeted for teens would be amazing!
Abitamim Bharmal I agree, still got some growing up to do. I do have plans to study business and psychology, But I'm not " the vast majority of realtors ".
You are missing out. My friend has bought two $300k condos in Florida and rents them weekly remotely from Texas and his cash flow in the summertime is off the charts. In the winter months he rents monthly and more than covers his expenses. He even changes the lock code remotely when people move in. He has someone do the housekeeping but otherwise he can manage them. You should be buying property that cash flows.
Graham, my dad owns 6 plots of land where he built a warehouse on each of them. Leases them out to small businesses and oil companies/etc. Unlike residential, if they don't pay he just gets a court order and has them kicked out in 3 days and gets to keep what they leave to sell on craigslist. They also pay property taxes. Have you looked into that?
It is. I want to get into it once I have the cash. My dad only works on the properties when he gets a new client(to clean/fix it up) and he usually signs 5+ year leases.
It's over. I'm packing up. Selling everything, moving to Mexico, might pick up a side job selling Grant's 10x courses for affiliate commissions...but I'll make it through.
Missouri is popping especially about 30 min outside the city. To expand i work for a cleaning service and lyft and actually have alot of discussions with individuals in higher tax brackets and from outnof state. Apparently alot of companys are outsourcing or moving to STL and surrounding areas and highering out from California short term and its causing a boom in renters in the areas alot of ppl come here to work renting for a few years before either buying a home or going back to Cali or Florida when their contracts up. Also its less expensive to live out here in general. Also there is a boom lately in medical fields and medical education here causing students interested in those fields to seek schooling. Tldr: large renter boom happening in STL and surrounding areas.
Graham, just found your page man, awesome stuff! I keep most of my money in stocks, so am unfamiliar with real estate strategies in general. I'm now in a situation where I might be an "accidental landlord". Bought my house in upstate NY two years ago. Secured an awesome 3.25% rate. Put about $20k in renovations into it. Just got a job offer in Utah that I accepted that is a $30k raise right off the bat and couldn't turn it down. Was considering renting out the house to keep my great loan, but the house has a large pool and hot tub, which I'm concerned w/ liability and upkeep. I should be able to break even w/ cash flow if I rent it. I got an offer for my house for $25k more than I bought it, which will help offset the work I put into it. Rent out a house out of state which could be a big maintenance and liability challenge but awesome loan, or do I try to sell and get most of my money back and walk away?? I've heard so much conflicting opinions it makes my head spin. Thanks so much!
Tough choice. If you break even or make money from it I’d try renting it personally. That loan is way too good to give up. 10 years from now you’ll be happy you kept it and you’ll have a ton of equity. Otherwise is being a landlord is not something you want, consider selling but it’s a shame to pass up that loan!
Graham Stephan That's where I'm leaning towards myself. Just a little scary because this isn't an ideal rental due to higher end finishes, pool, etc. Think I will just be super selective and patient waiting for the right tenant, and see where it goes. Thanks again for all your videos and insight.
Youve been fortunate to work in an incredible bull market time. Remember that its what happens in the long run. After you survived several crashes you can say you are doing well.
I think specifying an area learning all the pros and cons to that area and door knocking is really the only strategy that works... And of course sticking with that area long haul
Bloomington, IN cashflows like crazy, but you'd make next to nothing in appreciation. Even though its a small college town, there are a few property management companies that take care of things for the absentee landlords.
Could you do another basics video where u talk about what type of properties to buy? Like which are the most profitable and which can u find tenants the fastest for. Appartments, duplexes, houses (which sizes) etc. also are you looking for newer houses or houses with more land, also what are things to avoid buying by, like you mentioned the auto store and an alley
The interest rate simply dictates a persons monthly payment. The number people should be focused on, instead, is the TOTAL interest paid over the life of the loan. Take a look at a mortgage amortization schedule and see how much interest is paid by the end. A 4% rate actually is more like 400%. No thanks not for me. I'd rather spend 5-7 years paying one property off at a time I'll have renters as well. All I need is 4 paid off properties by the time I retire. The cash flow will replace my working income plus I will still have social security and retirement income every month. That's my plan. One down. Three to go
The total interest is highly misleading, that's not accounting for inflation which eats away a significant amount, the deductible interest on income properties, and also opportunity cost. A 4% rate is better to keep, pay off the minimum, and invest the difference: ruclips.net/video/AJSCT51Rfws/видео.html
Hi Graham, I've been watching your video's for sometime and really get a lot from them. I just wanted to say, thank you for sharing great content. Only a month ago i started a new career as a real estate agent in a top American retirement location in Mexico. Last Friday I sold my first property. I've been using your advice and amazingly it work's. Just kidding! I am super pumped I got my first sale in so quick and I'm already on to the next possible deal with the same client. When you started as a agent, how long did it take you to sell your first property? I also want to buy to invest, but the trouble is the property prices here have increased around 15per cent per year, for the past two years, making it very tricky to find inventory to cash flow. Saying that, I do like your mindset focusing on the long term game, properties breaking-even, with eventually getting appreciation and higher rents. Thanks again for sharing top quality stuff. Cheers Rich
Lots of mid-tier cities cash flow like crazy.. Atlanta, Nashville, Houston etc. Same problem in NYC only worse. Not only do borrowers have 3% long term mortgages but mortgage and transfer taxes kick up transaction costs to sky high levels.
Wow, love the whole 30 year fix rate thing you guys have got in the US. That would take out a lot of the volatility in the property market. Here in Australia the longest you can get is 5 years, and we're headed for a big mess right now. I had no choice but to deleverage before the increasing-rates-storm stuck. And as for cashflow-positive properties - haven't seen any of them around Sydney for some time. Sounds like you're sitting in a good situation with your portfolio. Don't get greedy - plenty of time ahead of you.
You aren't crazy. I'm going through the exact same thing in the Chicago market. Literally nothing makes sense this year so I'm sitting on cash until the market comes back to its senses.
ryanakron yeah I live in Chicago too. I think we’re gonna wait until summer 2020 to buy a condo since it seems like we’re in a bubble. Otherwise we can keep renting until we move out to the suburbs.
Welcome to the club... been looking for MONTHS in utah for a good deal to move into as our first home to live in while being in a reasonable area... within our budget. Working on increasing our income so we can afford something while waiting for something to come along.
Graham, I enjoy your vids man... Question: have you made a video on real estate investing outside of your home state? If not can you make one? Thanks man.
Graham on the video: I’ll keep looking for a property even though I haven’t found the deal I want yet! Graham in reality: all these houses are the same! Screw it, I’m buying the new Lambo when it drops 😍
LOL...no joke I thought about it. Part of me thinks I could make more money on a car than on a property, but i'd hate to tie up my money in a car just in the event a good deal comes up for property.
@@GrahamStephan That makes sense, but wouldn't that vary as much as house prices? Like how would you know that "if I put in $20k to fix up this kitchen, this place will rent for X amount more per month"?
Graham: You might try getting some input from Paula Pant (real estate and finance podcaster), since she buys properties in other states and recommends it. She puts up her budgets online for all to see, she's very transparent.
Sales in real estate have tanked in every major country around the world. The market is simply way too high for the average person buying a home to actually live in it.
This guy is literally the best on RUclips in what it does. He always break down every single points and make everything as clear as possible. Im glad i found your channel
Check out “Meet Kevin”. A bit more experienced and also breaks things down well. A bit dorky though
He's our virtual mentor
PittsensX lmao ur RUclips was original with the waves tutorial, u could’ve lowkey been a RUclipsr like some DDG or Smooth Gio etc etc could always try Right now though !!
@@spicyshizz2850 lol i grew my hair out a year a couple months later after my last wave video. Now i got twist (not lock) sometimes i do cornrows, or sometimes i just rock my afro
"you won't force anyone out for extra money" you're an angel, literally happened to me and family 6 months ago
On the other hand he talks a lot about rents going up, so he must have some turnover.
Patience is key. Don't get caught up thinking you *have to* buy now. There were a lot of people who made a ton of money 2009-2011 both in real estate and in stocks. Just be prepared to take advantage of those opportunities when they do arrive.
I totally agree, it's all about just waiting and having the patience for the right deal whenever it comes up, whenever that may be. No sense ever buying something just to buy.
how are you everywhere
He watches too many video rather than investing.
Both stocks and real estate have boom and bust cycles. The average bear market lasts three years, and the average bull market is seven.
I mean ya but stocks are liquid. You can get out easily anytime you want except when Facebook drops 20% after market within hours.
I like that you don't trash everybody in the business and imply you are the only one to be trusted and everyone else is running a scam. You tell great stories in detail and give good opinions/advice.
Awesome video man, awesome heads up as well what I learn is:
1. Have patience
2. Do your homework
3. Be positive
4. Dont RUSH
Your videos have taught me more than twice as much as college has
Ah thanks Austin!! Glad they're so helpful!
That’s it I’m not going to college so soon
@@Betoruffo college is a horrible investment right now because it's drastically overpriced. go to a trade school for a few months or apprentice with a tradesman and learn an occupation related to real estate such as plumbing electrician HVAC roofing framing. Save as much of your income as possible from working in that trade and then start buying real estate. You will have four years of earning money while your friends going to college are piling up debt spending money on college tuition. Four years later you'll have no college loan debt and you will own real estate while your friends are just starting to pay down their college loans.
You can still look at deals when you're not in a position to buy, reason being you'll gain more and more experience analyzing deals and learning your market. It sucks if they get away but, In my opinion you learn more and you have to accept the fact that the deal will most likely get away and mentally prepare for that
Notification while at the gym that Graham posted a video **pauses Drake and smashes that like button**
Fun fact: His last name is Graham ;)
And his first name is Aubrey ;)
@@GrahamStephan lol I didn't know
bro the houses you bought would be roughly 180-210k in Houston lol
Well I'm L.A. borm and raised but once I became obsessed with buying real estate I gave in and moved 4hrs away to Vegas. For MANY reasons it's great here!
JUST GET THE LAMBO BRO.
Only if you get the Murci ;)
Effspot up in deez comments👍
Go for the Tesla, mang!
effspot go HELP SOMEONE
Check out tavarish's lambo.
As always with my investment, I like to focus on the *CASHFLOW* . If a property does not pay me every month ("enough") money I am not even going to go and look at it.
🙌🏼
Cashflow is king
The struggle is real. I had to expand my area I do inland empire, riverside and la county. It takes persisitence with time got a few deals. I am the same as yourself investor/realtor.
Are you finding anything good in Riverside? I always thought that area was relatively well priced.
I live in riverside!!! If you want to go into a deal together Graham I can get you some international student tenents ;)
Graham Stephan Yes definately. Although I am more of a buy and flip type of investor.
Bryan Shealy haha my best friend goes to UC Riverside
I live in the IE and was thinking about investing soon is it well priced? Or really expensive out here? Im just starting off as a 21 year old....any advice would be very appreciated
Love how you broke down all the factors of the drop in home sales. Thanks! Just bought a second home and this video made me feel a lot better haha
You got it! Just hold!
The hello darkness part was pretty funny :)
haha glad you enjoyed it!
I don’t even have to watch the video before I hit the like button. Always one to support. Hope you keep growing.
Thanks!!
Graham why don’t you put your money in an apartment building like grant and get like 80 tenants paying you every month and cash flow.
The answer to that is twofold:
1. I don't have enough money to buy an apartment building. Even if I punk down $300k, that won't get me much in terms of units...especially in Los Angeles, that wouldn't buy anything. If I opened up my area, even elsewhere, I could likely get something in the $1.1-$1.3m range at best, and that's not enough to get those large buildings.
2. Those properties have relatively low returns at the moment. I looked into 8-10 units in other states, and at best they broke even or only provided a few hundred dollars profit per month. I couldn't justify investing that much, getting a property manager, renovating individual units, and raising rents just to make a little extra money. Not when I can find a 2-4 unit around me that would make the same amount of money without the headache of so many tenants.
If I had $1m+ to piunk down, that might be a different story and I'd certainly consider it depending on the deal. But more units don't always mean more money.
Graham Stephan go liquid and buy the apartment building. I'm sure you have 250k equity on each of your 5 rental homes.
Juanco - I wouldn't sell. I bought them so cheap (some 1/4th the value they're at now) so my tax basis is incredibly low. I also have such low 30-year rates on them that I'd never want to give up, they were once-in-a-lifetime interest rates that I highly doubt I'll ever be able to get again. Like a 3.375% loan for 30 years...
Graham Stephan okay I feel you on that!
Graham Stephan Hey Graham, I’m a lender in Ontario Canada and the longest fixed term we offer is 5 years. Just wanted to clarify you are able to lock in that 30 year at 3.375%?
I love your strategy man. Appreciation over cash flow! That’s something I realized recently so to hear it’s the mindset you have gives me confidence.
Graham can you make more videos about how to assess if a property’s price makes sense.
I live in New York City and once Amazon said they were moving to Long Island City, all the property values in the neighborhood and the surrounding neighborhoods shot up significantly.
But Graham, the property cost year to year isn't fixed anywhere because property taxes (only seem to go up) and insurance fluctuates.
What by 1-2%? That’s sooooo small. We’re talking maybe $20-$100/yr max. Rents go up way more than that.
You know, there are a lot of people out there who think it’s crazy to spend $75,000-$100,000 on renovations? I think this means that those people don’t understand the Southern California property market and/or they only paint and put in new carpet before renting out the property. I’m with you, Graham!
Oh yeah, in SoCAL $100K is a drop in the bucket, I know many people whose budget would be more like $250k-$500k for renovations
You should try and buy Tai Lopez's fake Mansion, so you can film 'Here is (in) my garage!' :)
Genius :)
Is the mansion fake?
I’m eating all this knowledge like breakfast and lunch. This is great. Tell you what. This is a real class room lecture here. Someone who does it, teaching you how to! Nice work. Happy New Years!
Thanks!! You too!
We need more Bitconnect memes 👀 great video as always btw :)
haha yes!!
I am watching your videos like crazy! And I am happy they are not ending, which means there are so much more to learn! Graham! You are amazing and make everything so clear and now I want to make the best version of myself and take the whole control of my life and what I do with it! And as always you got me SMASH THAT LIKE BUTTON!
Thanks!!
Multifamily Real Estate 16+ Units xD - Good Luck with your next one Graham.
You're right, Graham! Patience is required for success in real estate. My dad was a realtor for Century 21 in Los Angeles back in the 1980s. He didn't have a lot of patience 🤣 I remember he'd come home stressed out all the time.
One evening, he had to go back to the office to get something. My mom, brother and I all got in the car (my dad drove a 1976 Chevy Monte Carlo) and my brother and I went inside the office with him. Some of the realtors kept candy dishes on their desks so my brother and I started grabbing some candy 🍬 By the time we got back in the car to leave, I was sitting in the backseat and put a Jolly Rancher in my mouth and bit right into it. My dad yelled, "Stop biting the candy! I can't stand that crunchy sound!" 🤬 It's one of my earliest childhood memories.
Some kids remember watching Saturday morning cartoons, I remember getting yelled at over a Jolly Rancher by my stressed out dad in his yellow Century 21 realtor jacket 🤣 He quit real estate several months later. The stress was too much 🌡️🤯
Oh wow, crazy story! Weird how sometimes you remember the most random stuff!
4:41 hahaha this is great
lol thanks!
Thank you for your support! I am really frustrated because we have been looking for almost 4 months now. But we will be patient 🙏🏼⏰
It feels this way in the stock market too. I'm holding mostly onto cash until some opportunity opens up
🙌🏼
Intelligent Money Investing Trying to time the market = bad. Stahp
Golum This isn't timing the market. I'm not planning to wait until a recession and buy in at the bottom. I'm simply waiting for buying opportunities and building reserve in stable assets in the mean time (just like many big banks and corporations are doing as well)
Intelligent Money Investing as long as the strategy involves consistent investments in the meantime while doing so but definitely not down to stow 100% aside because no one can predict when/where the bottom will be.
Golum McSmeagolHomie
If your experience involves investing during artificially inflated times... you should stop trying to advise.
I went through the same thing and it's happening again. During the recession, I bought 3 duplexes in Fort Worth, TX, but around 2015 the market started smoking and there was less good deals. I hit the road and drove to about 8 states in the Midwest (I buy for income 1st and appreciation 2nd). I was looking for markets coming back but doing so slower than the DFW area. I went to Kansas City, Des Moines, IA, Grand Rapids, MI, Indianapolis, Cincinnati, and St. Louis. It's so important, in my opinion is to go check out places in person. I ended up buying a duplex in Cincy for 52,900 in 2015. It currently rents for $1455/mo and it has appreciated to about $100k. The market has come back there so now I'm having a hard time finding good deals anywhere. I don't want to force it.. I'm starting to think it may be a good idea just to hold onto my money rather than risk overpaying.
18 year old here going into real estate any advice? Also thinking about investing too... in real estate
As a real estate agent? Take on as many clients as you can early on, don't be afraid to do leases, network with other agents, and remember that this is a long term business. As for investing, just have the patience to buy only when the numbers make sense and when you can afford it. Pass on the deals that don't work!
Graham Stephan thanks man you’re a big inspiration! Shouts out from Texas!
ErniePach yoiiaswd the boat completely. It was 2012
Only buy an investment home that your willing to live at.
perfect age to start
Is it just me or G. Star hasn't posted a Campfire episode like this in a while. These are my favorite types from him.
17th
Unacceptable. I thought we were friends. Friends wouldn't comment this late like that.
u guys r machines.
the type that appear to run on cold fusion
but for real
the good kind
👍🏻
Look at the outskirts of Cedar Rapids Iowa, and look at development. Growth in the area is up, and the further out of town you go, the less land costs.
No more bit connect memes?
Ahhhh I forgot to use one, it's been awhile!
KING Rawr What am I gonna dooo?!
It's so good to hear that I'm not the only one that gets destroyed by missing out on deals because of slow financing and the minutia of bank communications
Exactly how do I start investing into real estate???
Boom...here you go: ruclips.net/video/VXeaU0i54H0/видео.html
Find a mentor in your area
I wrote a comment a few weeks back about the absurd real estate prices in major cities. I live in NYC and as you can imagine, the market is out of control. This is due to speculators and greedy real estate investors driving prices up. Those practices have also wreaked havoc on the rent market. My heart goes out to families trying to live the American dream. I like watching your videos but you treaded lightly on this topic. Your friend Kevin was a bit more brutal, yet very practical at the same time. The real estate market is going to take a hit and I hope it's a wake up call.
Speculations and "Greedy" investors simply play on market economics of supply and demand. There's no way to be greedy if others don't get a value or service rendered in return, there's always an exchange of value. I doubt we'll see a crash, I think realistically we'll see a slow softening of prices and the markets will behave much more stable than they have in the past. But we shall see, no one knows for sure.
I hear ya Graham, we shall see. Its discouraging what's happening with prices, plus the factoring of increased interest rates...BTW, thanks for the quick response and feedback. There's a reason you're my favorite RUclipsr 👍🏾.
Graham, are you putting 20% down every time on these properties that you buy?
Typically 20-25% depending on the deal. If I can do the deal at 20%, I'd rather than and then spend the extra difference remodeling it and fixing it up.
Good to know. That's a lot of cash to save up! Do you use your income from being an agent, AND the cash flow from your other properties to save up for the next house, or are you dumping the cash flow from the other properties back into them to pay them off quicker?
Hey Braden, it's mostly my commissions from working as an agent. The cash flow from the properties is enough to pay my living expenses, so everything I make elsewhere is profit - and the biggest source of income, by far, is my commission as an agent. So I'll just save all that up and then move on to another property when I have enough.
Graham Stephan thanks so much for your content !
If you can get break-even on 20% then you can thank the insanely low interest rates plus the relatively naive state of the real-estate investor market in the US. But now you're seeing that market is changing. More and more Joe Public are getting into it. When you reach 50% equity for break-even you'll have reached rough parity with stock market investing (long term). No more easy cash-flow money. We reached that situation in NZ years ago, but the last few years as interest rates dropped the last percent it got tighter & tighter.
Homes in my area are cheap but still overvalued. Everyone seems to overprice their home here and every agent I've worked worth keeps telling me houses are on the up around here. 100% of it is garbage. The population is dropping fast in my area and it's a buyers market. I've been watching the market for a few years and can confidently say which houses are overpriced or not. So many tell me "a home's value is...." and I cringe. I watch home sit on the market here for years "at their value". New flash: If they're not selling, they're prices above value.
I was gonna panic but I don't live in socal :D
There's absolutely no need to panic, or really do anything drastic for that matter. The real purpose of this is simply to take your time, not to rush into a deal, and to make sure the numbers work before plunking down any money.
I tend to go slow and steady by nature so that shouldn’t be an issue for me.
@@GrahamStephan I think he meant panic on the price you quote. Realizing he doesn't live in Socal makes a HUGE difference in relative prices.
This insight is great. And well explained for someone that isn’t in the real estate scene
🙌🏼
Dude that is a clear sign of the end of the bull market, keep cash aside ready for discounts ;)
I wouldn't say it's the end of a bull market, just that prices will slow down, we won't see the growth we have been, and I think that's a total normal aspect of the market.
Graham Stephan You're young bro stay in cash. Overleveraging yourself in debt with too much faith in the USD isn't safe. That crash is going to hurt you bad.
1. You've never experienced a market crash
2. Your debt is astronomical and the properties you own will lose crazy value, and your tenants may be turning over even quicker because of the economy.
3. Diversify....
Jarron Jackson your comment is spot on. People are going to get hit hard..
Jarron Jackson Jarron Jackson Just wanted to reply to you:
1. I started working in real estate in April of 2008, so arguably the first 4 years of my career have been spent watching the markets decline. While I hadn’t seen or experienced the the run up from 2004-2007, I did see the aftermath.
2. I’m barely leveraged, if anything I wish I had more. I’m about 40% debt to real estate equity. Never raised rents on my tenants except one, and only otherwise increased rents during a vacancy. So I’m still under market for my rentals, and that’s kept my tenants happy, paying on time, and rarely a vacancy. Most of my tenants have been with me for 6 years. As for values, it makes zero difference what the home is worth. Three are owned outright, and the other two are long term holds. So I’m not concerned.
3. This is the only thing I agree with. I could likely use some diversification.
Graham Stephan 100 bro. I know you'll do great
Gonna get into real estate because of you man exam in August thanks so much for your inspiration!
That’s awesome man! Good luck on the exam!
Can i get my first compilation too now😂
THERE WE GO! FIRST!
Think new, buying apartments and renting them out as is is not profitable at all where I live. As I'm still waiting for my rental project to yield any net profit I'm looking at other deals. Houses are always better than single apartments but I recently bought an apartment in a house at the ground floor, added a second entrance, sectioned it, had another kitchen and bathroom built and sold each unit. The cost for the apartment was €320k, spent about €50k on making it into two apartments and sold them both for €460k total. €90k profit, that's more than I make in a year at work. I could have rented them out at €1500 a month each and it would be yield a positive cash flow, but I wanted to cash in.
Another thing I've seen people have been doing in the capital lately is to buy a family apartment and install a ton of new bedrooms and rent the single rooms out to students. I'm considering trying if something pops up near the university in my town.
Early
Eyyyy what's up Nate!
NatesLife 😂
Hey Graham,
You are doing so many things right but I get the feeling you need to really zoom out and get a little more perspective. Who knows when things will actually dip but taking a look at even some of the generalized metrics like Case-Shiller Index compared to wage growth over the same period makes me a bit nervous. Love what you are doing and tons of props for all you do but saving money now and truly exercising patience might dramatically grow your returns over the next 10 years. Best of luck and keep cranking out the content!
Thanks man...you're right, if nothing works I'll just be saving up!!
during a recession what percentage do property values fall?
Nationwide?
I wouldn't say we're in a recession, and I think we're farrrrrrr from that. If anything I think we just won't see the type of crazy growth that we've been seeing the last 4/5 years and that's totally normal, and if anything, a sign of a healthy and stabilizing market. As for how much values far, I HIGHLY doubt we'd see anything anywhere close to what we saw in 2008. Typically markets might dip 10-15% for a few years, then recover. Overall I can't see it making a huge impact.
It's impossible to say nationwide, either, because real estate is a local economy. Some markets are much more resistant than others. In 2009, I know several markets that crashed over 50%...others went down 15%. It just depends on so many factors.
Graham Stephan bet thanks blood
aight peeimp
I appreciate your honesty on the difficulty of finding properties. I'm also in a high-cost coastal "supercity" and the numbers are brutal. It seems like there is just too much capital chasing too few properties and things have become overvalued. Patience might be mean waiting for the next recession.
Lol I love your impression of dissatisfied RUclips keyboard warriors xD
Hahaha thanks!
You should look in Pennsylvania in small college towns. I found a 5 bedroom, 3 bathroom home for 70k. It's in the perfect location to rent as student housing, by the room. The mortgage is cheap, everything else is cheap. By my calculations I'd be getting a 300% return of interest. By renting each room at 4 or 500 a month.. I'm definitely going to jump on some of those deals in the future.
Hey graham! I can see your struggle for finding investments in LA. You should honestly look into the market here in Bakersfield. Ive found many people from LA tend to sell there homes in La to come down here since Its relatively cheap. A home in La for 600k can be found here for 200k. Just a thought becuase i honestly believe theres so potential here with such a growing population.
By the way bakersfield is only hour and half from LA so its not too far from you so mantaining the properties wouldnt be too much of a hassle for you. Too many people are selling there homes in La and finding an even better home here for CASH from the equity!
Interesting, might look there!
I ran into the same problems in Hawaii.. only that happened in about 2015.
I am holding cash, indexing, and investing passively in private placements. Looking seriously internationally also.
How has the market in Hawaii been since 2015? Has it continued going up?
Graham Stephan Rents have been flat since 2015. Property values have continued to go up. Condos 5-20% per year, SFHs 8-12%. It's nutty.
I am in process of cash out refi a couple properties, 75% LTV, should get about $100K out per, not too bad.
Graham Stephan I'm planning a fun/due diligence trip to Southern CA mid-Sept.. would love to meet up and talk/look at some real estate. Any good way to get a hold of ya?
it's time to invest in a lamborghini
hahaha nice try ;)
but that sounds like a good idea lol
Unless you save it for about 100 years and sell it to antique dealers
You could use it for Uber services
Sales are declining because wages are stagnant and inflation rose 2.9% just in June. The stock market might be doing decent, but the real economy is in the shitter. More than half of Americans can't even afford a $400 expense without selling something first or waiting for a paycheck.
In 30 years LA might be under water jk
There's also the risk of the big earthquake 😖
I agree with everything you said. I'm in Indianapolis and it seems harder to find money making property deals this year. Prices have gone up. I plan to hold my rentals and be ready when an opportunity comes up. Do not force a deal.
Exactly!
Buy in haste, Repent at leisure.
West Florida near Clearwater Beach/Tampa. Duplexes $250-600k. I am on the fence about a great little beach cottage duplex for 345k with rents 1300 each unit. 15% down 30 years 5.875% cash flow about $500. A triplex will cash flow say $1,000 around 400-600k. This is a typical deal and numbers for my area. Also I use 4.4% for appreciation as that is the 50 year average Gary Keller used in the Millionaire RE Investor. Graham, I am a Broker and we have a PM company where I help investors (absentee) and I can start doing these deals for you and manage them. Florida is #1 in the country for buying RE as 1,000 people a day are moving here. You could buy two or three here for each one in LA. I just sold a home in my HOA and the owner lives in Calabassas Cali., had it rented since 1994 and never once saw it, does this all over the country. I understand your long term equity play buying in LA, however, cash flow is just important as you can divert your funds in the operating account to fund new deals rather than your own money. So I own many, and I can now fund all my deals from the cash flow. Watching your videos tell me what the future prices looks like in Florida and makes my prices seem lower. Also, you should be doing property management for duplexes, you will be the first one to know the owner wants to sell, and as a former #1 listing agent at a big box store (ego violin) I can say cold calling landlords is a great way to back door into some listings and convos with the owner about owner financing. I was born in West Covina btw.
Thanks graham ❤❤
Thanks for watching!
Graham, I'd like to hear your thoughts about how much of an investor's available money should be tied up in one deal. I did great with three duplex properties in San Francisco. All 3 had cashflow from the first day. Then I sold that all of my properties and put all but about $400,000 or my net worth into one 20-unit apartment building in the San Fernando Valley for $2,200,000 with $700,000 down. Lots of mistakes, and I lost money from day one until I unloaded it 5 years later (at fire sale prices). My mistakes ... too much $ in one deal; not enough liquid cash in other than real estate (over-extended); purchased in an area that is not where I live (as I think it's important to be able to get to any property you own within 90-120 minutes; the area looked ok but turned out to attract tenants who trashed units with high turnover. Etc. Now I'm just sitting in my single residence house and afraid to invest in more properties...especially after the long bull market run or real estate and stock market.
I have done quite a few deals and do several rental properties. I hope this guy on the video answer your questions because he seem to have a lot of really good and practical advice ,, if you go back into your post you will see that the answer is within your post .. you overextended your down payment in an area that was an area you didn't live in... the three rules are the same,,, location location location ,,, better to get a 4 flat in a really good high demand area ,, then 50-unit in a low demand rougher area. Another thing I don't know your age range but the older you get the more you don't want a mortgage or very little mortgage
@Graham can I be you when I grow up?
Yes!!
Graham Stephan im starting to think you're paying someone to reply for you🤔🤔
Hey Graham,
Just wanted to say I recently came across your channel and I am obsessed. You have inspired me and possibly changed my life.
As a typical teen, I was thinking to go to college, go into debt and spend my life paying it off.
Your basics guide to real estate investing saved my life
Could you do a video about debt? I know now it’s a huge thing to be debt free but I know there are advantages to having debt and being debt free isn’t always the answer.
Can you do a video more in-depth about that to counteract all the living debt free videos
Thanks!
Also more videos targeted for teens would be amazing!
Gawd I can't wait until I turn 18, why can't the legal Age to be a realtor be 15?
I'm getting my drivers license soon
Abitamim Bharmal I agree, still got some growing up to do. I do have plans to study business and psychology, But I'm not " the vast majority of realtors ".
Abitamim Bharmal, sorry I meant philosophy, what subjects do you suggest?
Abitamim Bharmal I've never been interested in working *for* companies
I wanna make one and work *with* other companies
Abitamim Bharmal thank you for your feedback I'll take that into consideration.
You are missing out. My friend has bought two $300k condos in Florida and rents them weekly remotely from Texas and his cash flow in the summertime is off the charts. In the winter months he rents monthly and more than covers his expenses. He even changes the lock code remotely when people move in. He has someone do the housekeeping but otherwise he can manage them. You should be buying property that cash flows.
24th
THERE WE GO!
Graham, my dad owns 6 plots of land where he built a warehouse on each of them. Leases them out to small businesses and oil companies/etc. Unlike residential, if they don't pay he just gets a court order and has them kicked out in 3 days and gets to keep what they leave to sell on craigslist. They also pay property taxes. Have you looked into that?
Interesting. Haven’t looked into it!
It is. I want to get into it once I have the cash. My dad only works on the properties when he gets a new client(to clean/fix it up) and he usually signs 5+ year leases.
So it’s dead?! 😱☠️
It's over. I'm packing up. Selling everything, moving to Mexico, might pick up a side job selling Grant's 10x courses for affiliate commissions...but I'll make it through.
Graham Stephan HODL!
Golum McSmeagolHomie what exchange do I buy real estate coin on ?? please respond
But for real, I want to eventually get a property in Mexico!! Beach front for retirement, vacations, air bnb!!
Graham Stephan LMFAO
Missouri is popping especially about 30 min outside the city.
To expand i work for a cleaning service and lyft and actually have alot of discussions with individuals in higher tax brackets and from outnof state.
Apparently alot of companys are outsourcing or moving to STL and surrounding areas and highering out from California short term and its causing a boom in renters in the areas alot of ppl come here to work renting for a few years before either buying a home or going back to Cali or Florida when their contracts up. Also its less expensive to live out here in general. Also there is a boom lately in medical fields and medical education here causing students interested in those fields to seek schooling.
Tldr: large renter boom happening in STL and surrounding areas.
Interesting! Wasn’t aware of it!
Graham, just found your page man, awesome stuff!
I keep most of my money in stocks, so am unfamiliar with real estate strategies in general. I'm now in a situation where I might be an "accidental landlord".
Bought my house in upstate NY two years ago. Secured an awesome 3.25% rate. Put about $20k in renovations into it. Just got a job offer in Utah that I accepted that is a $30k raise right off the bat and couldn't turn it down.
Was considering renting out the house to keep my great loan, but the house has a large pool and hot tub, which I'm concerned w/ liability and upkeep. I should be able to break even w/ cash flow if I rent it. I got an offer for my house for $25k more than I bought it, which will help offset the work I put into it.
Rent out a house out of state which could be a big maintenance and liability challenge but awesome loan, or do I try to sell and get most of my money back and walk away?? I've heard so much conflicting opinions it makes my head spin. Thanks so much!
Tough choice. If you break even or make money from it I’d try renting it personally. That loan is way too good to give up. 10 years from now you’ll be happy you kept it and you’ll have a ton of equity. Otherwise is being a landlord is not something you want, consider selling but it’s a shame to pass up that loan!
Graham Stephan That's where I'm leaning towards myself. Just a little scary because this isn't an ideal rental due to higher end finishes, pool, etc.
Think I will just be super selective and patient waiting for the right tenant, and see where it goes.
Thanks again for all your videos and insight.
Youve been fortunate to work in an incredible bull market time. Remember that its what happens in the long run. After you survived several crashes you can say you are doing well.
Would be awesome to have a sit down with you someday. You’re an inspiration man. Changing my life one video at a time
Ah thanks so much Mike!!
I really like you. You've got integrity, and smarts. I subscribed.
Thanks so much!
Do you have any videos on how you analyze your properties and crunch the numbers? Thanks for your content Graham!
Thanks for showing your process Graham! Most people don't usually do this. Appreciate you brotha!
You got it man!
I think specifying an area learning all the pros and cons to that area and door knocking is really the only strategy that works... And of course sticking with that area long haul
Agreed!
Good thinking on the 30 year outlook with breaking even on properties in prime area. Subscribed!
🙌🏼
Bloomington, IN cashflows like crazy, but you'd make next to nothing in appreciation. Even though its a small college town, there are a few property management companies that take care of things for the absentee landlords.
Ex. aprox. $120,000 3br/1ba house renting for ~$1200/mo (my old place)
I went to college there! I plan to buy a house there eventually so my kids (future kids) could get in state tuition lol
Could you do another basics video where u talk about what type of properties to buy?
Like which are the most profitable and which can u find tenants the fastest for. Appartments, duplexes, houses (which sizes) etc. also are you looking for newer houses or houses with more land, also what are things to avoid buying by, like you mentioned the auto store and an alley
Will do!
The interest rate simply dictates a persons monthly payment. The number people should be focused on, instead, is the TOTAL interest paid over the life of the loan. Take a look at a mortgage amortization schedule and see how much interest is paid by the end. A 4% rate actually is more like 400%. No thanks not for me. I'd rather spend 5-7 years paying one property off at a time I'll have renters as well. All I need is 4 paid off properties by the time I retire. The cash flow will replace my working income plus I will still have social security and retirement income every month. That's my plan. One down. Three to go
The total interest is highly misleading, that's not accounting for inflation which eats away a significant amount, the deductible interest on income properties, and also opportunity cost. A 4% rate is better to keep, pay off the minimum, and invest the difference:
ruclips.net/video/AJSCT51Rfws/видео.html
This is why I'm stoked to be investing in TN. I can buy and flip a house with about 30k and just start flipping. Move to TN Graham.
🙌🏼
Hi Graham,
I've been watching your video's for sometime and really get a lot from them. I just wanted to say, thank you for sharing great content.
Only a month ago i started a new career as a real estate agent in a top American retirement location in Mexico. Last Friday I sold my first property. I've been using your advice and amazingly it work's. Just kidding! I am super pumped I got my first sale in so quick and I'm already on to the next possible deal with the same client. When you started as a agent, how long did it take you to sell your first property?
I also want to buy to invest, but the trouble is the property prices here have increased around 15per cent per year, for the past two years, making it very tricky to find inventory to cash flow. Saying that, I do like your mindset focusing on the long term game, properties breaking-even, with eventually getting appreciation and higher rents.
Thanks again for sharing top quality stuff.
Cheers
Rich
Lots of mid-tier cities cash flow like crazy.. Atlanta, Nashville, Houston etc. Same problem in NYC only worse. Not only do borrowers have 3% long term mortgages but mortgage and transfer taxes kick up transaction costs to sky high levels.
Wow, love the whole 30 year fix rate thing you guys have got in the US. That would take out a lot of the volatility in the property market. Here in Australia the longest you can get is 5 years, and we're headed for a big mess right now. I had no choice but to deleverage before the increasing-rates-storm stuck. And as for cashflow-positive properties - haven't seen any of them around Sydney for some time. Sounds like you're sitting in a good situation with your portfolio. Don't get greedy - plenty of time ahead of you.
I had no idea Australia only had 5 year locks - sounds similar to Canada !
Thank you . I really appreciate your transparency
You got it!
You aren't crazy. I'm going through the exact same thing in the Chicago market. Literally nothing makes sense this year so I'm sitting on cash until the market comes back to its senses.
Exactly. Or just wait for whenever the right deal comes up!
ryanakron yeah I live in Chicago too. I think we’re gonna wait until summer 2020 to buy a condo since it seems like we’re in a bubble. Otherwise we can keep renting until we move out to the suburbs.
you should do a vid on different real estate agent tiers. like how do you become an agent that handles big wig celebrity clients?
Welcome to the club... been looking for MONTHS in utah for a good deal to move into as our first home to live in while being in a reasonable area... within our budget. Working on increasing our income so we can afford something while waiting for something to come along.
Graham, I enjoy your vids man... Question: have you made a video on real estate investing outside of your home state? If not can you make one? Thanks man.
So impressive. Good that you're patient.
🙌🏼
Graham on the video: I’ll keep looking for a property even though I haven’t found the deal I want yet!
Graham in reality: all these houses are the same! Screw it, I’m buying the new Lambo when it drops 😍
LOL...no joke I thought about it. Part of me thinks I could make more money on a car than on a property, but i'd hate to tie up my money in a car just in the event a good deal comes up for property.
Can you make a video about how you determine what rent to charge at a place you buy? That’s obviously a big factor in determining cash flow.
I check what other properties are renting for on craigslist!
@@GrahamStephan That makes sense, but wouldn't that vary as much as house prices? Like how would you know that "if I put in $20k to fix up this kitchen, this place will rent for X amount more per month"?
You can factor in a buy out for tenants most owners don't do this . Pays for moving and finding new rental
Graham: You might try getting some input from Paula Pant (real estate and finance podcaster), since she buys properties in other states and recommends it. She puts up her budgets online for all to see, she's very transparent.
Nice!
Sales in real estate have tanked in every major country around the world. The market is simply way too high for the average person buying a home to actually live in it.
I’m 17 and an aspiring real estate/stock investor. When do you think I should get started with real estate investing ?
ruclips.net/video/VXeaU0i54H0/видео.html
bro its amazing you respond to so many comments, and excellent dave chappelle tyrone biggum impersonation
hahaha thanks man!