I am a Realtor/Property Manager/Loan Agent. Your posts make a perfect sense! I will refer your video to my clients. What you say is very educational and I hope you keep up the good work.
I've been watching your videos for a while now and because of you I started my real estate license a month ago. I ditched the 9-5 grind and decided I want to be my own boss and I love your mentality about going in an area and finding a place to build your wealth at the end of the day. I subscribed to you and I wish you nothing but the best Stephan.
Real estate agent here from Maryland. I soooo agree with you about landlords skimping out on a slight increase in price that kills them in the end! Same with the backyard! I see so many houses where the so called backyard is a dirt pile and the landlord is kinda proud of the "backyard"! Keep it up dude! Love you vids!!!👍
I'm a more recent subscriber and these old videos are a total goldmine. Grant, you're doing God's work, mate. Congrats on your ridiculous YT success! I made it to the end!
I'm 22 years old, I'm currently studying business management and supply chain management at CSULB, and I just barely started falling in love with real estate. I'd love to be your apprentice/intern and learn as much as possible from you!
Been watching your content for a solid 6 months. The algorithm suggested I watch this one from 3 years ago. Glad I checked it out, it still gave value eventhough it's the older content.
Ok ok in Grant's defense, these types of videos are really hard to scale on a large level. A lot of it is very specific and won't apply to most people watching. In order to scale, you have to be more generic which could apply whether you're 14 years old in Florida or 50 years old in Manhattan - and that's what Grant is good at. I'd love to do a mix between the two - would love to scale more, but still keep some technicalities alive.
GrahamStephan True, your path is just very similar to what I plan to do which draws me to your videos. That’s probably the case for a lot of your viewers so I’d continue doing it how you’re doing it
@@GrahamStephan your welcome. If you can do a video in the future about estimating costs on a rehab with a quality General Contractor that would be great.
This forum is like you’re the real estate professor teaching us viewers your students the process to business and success. I love the videos you put out. It’s motivating detailed and you use simple words I understand not the real estate jargons some people use. I also want to do it soon so I could leave 9-5 job and have more time with my family. You seem to be honest and truly want to help others be successful like you. I hope you don’t get tired of teaching and making these videos.
I watched this video four times with the audio on the background because as a realtor in san jose california, these tips are pretty awesome. I find a lot value & motivation in your videos. Keep it up my good sir.
I made it to the end of your video. My husband and I are trying to figure out how to invest in real estate now that we are debt free. Real estate is definitely one direction we are wanting to go.
I really enjoyed watching this video. Most videos can send you to sleep but I think you gave alot of advice and information and made it enjoyable to watch. It was inspiring. Thanks for making the video
I’m 19 and I’m fresh in to real estate/wholesaling! I’m very motivated but also very nervous, your videos help! I️ can tell you’ll be really good wealthy in the future Graham!
i have seen most of you videos all the way through. my dad is in real estate in LA and Santa Barbara and told me that i should get into it. I didn’t but now i understand the process.
12:13 : pay attention because that's the key to securing a location . Hes the person I look up to because he's smart and obviously very knowledgeable . Thank you for your videos .
Going today for my first class can’t wait to see where I can end up ! Thanks for your videos they really give me inspiration to become successful and wealthy
Only through half (as it's only 9 mins old) but love how you've gone step by step for this one. Great videos, you've changed the mindset of all the 75000 subscribers of your channel
Thank you so much, Aaron! Trying to switch it up...personally I enjoy doing analytical videos more, but a bit worried some of it might get lost if I go a bit more technical. So trying my best to keep it a fine balance between making it "basic" enough that anyone can understand it, without leaving any of the details out.
Success is not final; failure is not fatal: it is the courage to continue that counts. Business opportunities are like buses, there’s always another one coming.
I watched the whole video and what I have to say is that you provide a very good amount of valuable information. Thank you and please continue posting such videos
Some idiots gave you a thumbs down. I’m not sure why jealous people give you thumbs down. He’s giving his hard learned advice whether you are a buyer or seller.
What's up Graham? Long time no comment. I passed you on to my friend whos in real estate, and he told me just today that he played one of your videos in one of his team meeting and everyone got hyped up and learnt a thing or two that they didn't know. I don't do real estate at all but from watching your stuff it makes me feel like I am lol. Love the way you talk and express your messages, it has definitely helped me with my mindset for my online business. Peace bro! Talk soon!
Idk how but you’ve caused me to watch this long of a video. Been watching a few of your videos and I’m just looking into owning my own place, you’ve helped me understand a lot and I appreciate that :)
What a great video!!!....Wish I had the balls to do what you're doing right now. I can use 150k to help pay off my school loans. I have 50k left to pay which I dropped from 71k now since March. A part of me just wants to get out of my 9-5 and go into buy/sell/trade/invest for myself. I know I'd be great and it will help pay things off much faster. But another small part of me has me hostage telling me to finish paying the loan out first before I do anything else. Crunching the numbers I would have to do what I'm doing now for 1 more year. Your videos are very inspirational. I learned a lot from you. The best part of your videos is the vibe you give off that if I try something everything will be okay. Its very encouraging. Thanks Graham.
Thanks so much, dude. I'd bunker down one more year if that means you can be finished paying off the student loans. That'll be a huge load off your back!
Hi Graham, PA accounting/business student and also Real Estate licensee here. I watched the whole video, it was excellent, just like all of your videos I have seen. You talked about taxes and I want to throw a suggestion out there, have you ever thought about registering your home remodeling activities as a business (LLC)? Depending on a lot of factors, it might be beneficial. It comes down to filling out some papers, paying some fees, and registering with the state. A business lawyer could provide more information and help you see if it is right for you. If you do, you would be able to deduct "business expenses" which could help reduce your tax bill. The equity loan works, but I think it is more of a short-term solution instead of long-term, especially since you said you have multiple properties and are looking to do more. Lastly, let me chime in with another comment. Go for your broker's license! You are young and well on your way to building your own firm one day, if you want to. Think big, forget about that boss from the 9-5 video/story, you are level 10 but they were level 1! Sorry this comment is so long, thank you for the great videos and I wish you great success!
Hey thanks Mike! For what I'm doing, the renovations just get factored in to the tax basis that can be depreciated over 27.5 years (or less depending on the renovation). I don't think I can straight up write off renovation costs, especially since that is wayyyy more than this property will generate. And yes yes I agree, brokers license would be a good thing to get...just gotta sign up and take that test.
Well done and lots of great content. The last part gave great advice on accessing the equity instead of cashing out and losing profits. Great wealth building advice!
I’ve been following you for a while not and find your videos very informative. I haven’t started real estate yet but will soon and your videos definitely help me understand what I’m getting in to which I really appreciate.
Haha I forgot to say I watched till the end. Good stuff, I don't want to be a real estate agent but investing in real estate is something I want to pursue.
Your videos keep my mind churning. I live in tennessee and wish I could get some time with a real-estate agent to learn the ins and outs. I've worked with contractors since I graduated high school in 2013. I'm currently working in the hotel industry. Night and day I realize that this isn't the path I need to be on. If u read this Graham I want to thank you for the tips and the time u take out to lead others. Mind set is key. Have a good one and Thanks again man
hey Graham just for reference everything in frame looks amazing and you might want to look into rule of thirds which basically says your subject's face/head should lie on the points of intersection between horizontal and vertical lines. Your videos are the best! but i think that would help with balancing the shot but its just a suggestion! Thanks for making this video again!
I’m about to finish remodeling my duplex here in Chicago. I did the exact same steps you’ve listed here in your video. My question is once remodeled and rented will you be refinancing right away or waiting a few years for the value to go up and refinance then? Bought my property for 350k apprised at 400k when I closed. I put about 45k into my property so all in I’m about 395k. It will be valued over 550k given the area but prices are still going up. Thanks
I have to wait 6 months to refinance to get the new appraised price, unfortunately, so I've got another 2 months left. I could always wait it out though, I don't need the money and there's no real rush, so I could just wait a bit longer. By the way, great work man - you did it perfectly. Well done!!
Hey, im also located in Illinois and have been looking for areas in Chicago. What area did you purchase your duplex in? I was looking at the outskirts in Chicago such as Berwyn or northwest side
Real estate is definitely one of those businesses where the hardest working person doesn't always make the most. I mean, there are always exceptions and the harder you work, the luckier you tend to be, but working efficiently is such a big component of it.
Hello Graham, It's great that you do a detailed study and research on properties before closing down on them. Maybe looking with a Architect/Interior Designer who maybe a friend or acquaintance might help you in saving a little bit of time in helping you boost your creativity and ideas.
Definitely agree with this if I were doing things on a bit of a higher level. For what I'm doing now, it's not really needed - but anything a step up from this would definitely benefit from that.
I don't really know how many of your videos I'd have watched till now, but I feel inspired to get my first real estate investment. Thanks for the information!
Iv done many of these renos before but "eventually" each property will drop "below" what you paid due to market downturns. One thing is wish i did was to bite the bullet and pay for "expensive" property in desirable locations ie... near the beach. When you speculate on a location & a down turn hits, people always want to rent the best located property not the outskirts. Outer locations compete on price in reverse - the same way as you described when prices increase. I know that you may not have the cash to put the deposit down on the best located properties but if you do, i would go for it. I would rather 1 better located property than 2 average located properties because there are MORE average properties than better ones. "When" the crash comes, you need to have working capital "credit" to compensate in the decrease in rents as holding the properties is key to wealth. Always MAX out your available credit and have this on standby because it may take another 7-10 years for the property to reach the same high value during a market boom.
The thing is, anywhere in LA is pretty high end - and from my experience here in LA, the higher end gets hit first and sometimes the hardest. Luxury homes tend to be the first to go down, and "lower end"
Agree that high/high end are the first to drop but I'm talking about the high end family home not the multi millionaires home. I like areas that have ALWAYS done well, new areas scare me unless they are on the water/beach ect... High enders downsize to these & the affluent middle class aspire up-grade. I would cash in the lower end stock & up-grade to these "Cafe Culture" locations if you can?? Rent keeps you in the market whilst capital growth make you wealth therefore "cash flow" is sometimes irrelevant. Some people will buy a shit hole because it cash flows then when a crash hits or they have repairs its wiped out. The real hurdle for property investors is gaining deposits and staying in the market long term. Having multiple properties never impresses me, its all about quality stock that compounds at a grater rate. Looking forward to your progress, good luck.
I gotta said I got to see your videos because of videos you have on stock market and news, and wasn't really into Real Estate until now, it's been added to my goals, I'm following your example when I get my first job, I'm gonna go get my Real Estate license, I don't know yet how im gonna sell the houses, I just know that I'm sure I will get enought commission the first year to buy a house, I didn't know anything of Real Estate until now, I already have my plan, I just need the first step which is get a job to then get a real estate license
I left my day job (Marketing Manager) to dive into this full time, a large part thanks to the inspiration from your videos. I sent you some message on IG but you haven't gotten around to checking them at all. I'm in the Toronto area and I just passed my first exam and about to write my second exam at the end of this month. Keep it up Graham! Looking forward to more videos, and perhaps we will meet in person one day. :)
Thanks so much Daniel, well done! Keep up the great work! Sorry about the IG, I get so many DM's that i don't really check them - and older messages just get pushed out for the newer ones. I just keep track of the YT comments!
Nice work buddy. I have renos going on right now in one of my duplexes and looking forward to refinancing when it's all done! I'll have a video on the completion.
Good luck! Saw what happened with the hard fork, thinking there might be some type of correction going to happen but I'm so lost when it comes to crypto, who knows.
I have a geek friend thats been trading it since he was 13, he's has a ton of them and over lunch he explained a very realistic theory. Who knows we met up and he told me to buy that day and i didn't and it was worth 3.3k that day :/ Here i am few months later and its nearly worth 8 :p Ill let you know how it goes though!
It's going to continue rising! Bitcoin, Litecoin, and Ethereum are the top coins that I've invested in. Make sure Sebastian Ghiorghiu that you get a hardware wallet! Do not keep your coins on the exchanges! I cannot stress this enough. Exchanges have been hacked into previously and people lost their coins. Invest in a hardware wallet and then hold onto your bitcoin. We're going to keep seeing massive increases in bitcoin over time.
Congratulations on your new property! It looks great. You are an inspiration. Can you please go over the finances? 1. Assuming that you put 20% down, your monthly expenses are around $2900/month (mortgage,’insurance and property taxes).what are you planning on renting each unit for? Are you going to be cash flow positive? 2. When you want to get some money out the equity: do you do a cash out refi or do you do a home equity line of credit or loan? And when do you decide when to do it? If get money out, you will have an extra payment or a new mortgage for a higher monthly amount and you may end up being cash flow negative. Or do you a cash out refi for a new mortgage or the same amount? 3 how will you increase your rent in a rent control area ? Is it specified in the rental agreement? “Rent will go up by 3% a year” or something like that? 4. What bank do you use? I talked to Wells Fargo and Bank of America and both said that they can only give me 60% LTV because it’s an investment property not my primary residence. What bank gives 80% LTV for investment properties? Thank you very much!
1. That's pretty close, about $3000/month! Good numbers. Total rents at market value should be about $4200/month. I'd guess this should be closer to $5000/month in another few years as the area continues to pick up. I ended up moving in here temporarily and renting out my last place, I can refinance as an owner occupant with better rates, save up a bit, and do this again next year. 2. I'd just refinance. Home equity lines are fine, nothing against them, but with rates still pretty low, I'd rather lock it in for 30 years if I can. 3. 3% per year increase. BUT, I'd rent it out to friends or people I'm close with, knowing that they won't stay that long. But even if I get a tenant who stays, I won't sweat it. As long as they're a good tenant, that's all I really care about. 4. I use Chase! They've been incredible! I also put 25% down, so there's that.
Hi Graham, I do have some questions to ask. 1. Do you think we can apply your strategy in 2011 again in the current SoCal market now? Since the market is heated up again. I am afraid if the Fed keeps raising the rate the market could crash soon. 2 What is your debt to asset ratio? I don't think you leveraged too much loan. Even if you did, you locked in very low mortgage rate which may not appear in the near future. What can we do now if the mortgage rate keeps going up? 3 The first one or two properties you bought in San Bernadino with a very cheap price. I wonder how the neighborhood and the crime rate are. Is it hard to manage the tenant over there? 4 Refinance is great. It can avoid the tax but it is a loan. We need to pay interest on it. If we keep refinancing the equity, we simply keep borrowing more money. How could we balance the debt to asset ratio? Especially when the mortgage rate rise, the profit margin will shrink. Thanks.
1. No. Long term, I think you'll be fine. I'm doing the same thing literally just 2 weeks ago when I closed on a new place. 2. Less than 50% debt to equity overall. All fixed rate mortgages under 4.5%. 3. SUPER easy! But I've been really, really fortunate with awesome tenants so far. No issues besides one that was entirely my fault (youtube "tenant eviction graham" and that will come up) 4. Refinance only if you have a higher yielding investment to spend it on...otherwise it's not worth it.
@@GrahamStephan Thank you for the quick reply. 1. I think the real estate yield rate will drop as the mortgage rate goes up. The appreciation will slow down and the rent will just stay flat for the next couple of years. Or do you think the housing market will repeat 2008? 2. Don't you want to cash out now and wait till the market crash to buy the undervalued asset? XD You may double the number of your properties. 3. I am a beginner. I don't think it is a good time for a beginner to expand now. I have a 50% debt to equity ratio. I don't think getting more loan is a good idea for me now, especially I may just get the mortgage at 4.5% or even higher. You ride on the last big wave. I am in San Diego. Do you think there are still some undervalued markets in SoCal now? XD 4. I applied for your private Facebook group. Just realize Rancho Cucamonga is in San Bernadino. I bet your houses are there. That is a very good city. I once had a road trip to inland Riverside. It is not so good even though the price is very low. Thanks again for making these helpful videos.
+Will Alvarez Sure! Although I somewhat explained it in a few of my last videos and this one, with properties getting more expensive and population moving outward.
Bro thanks for video. Even being a 3 year old video. still applies today! Totally subscribing and watching your content. Hopefully I can get moving on something.
Hey graham where did you get your cool posters? I need one to remind me of my dream goal. Question: what do you think of becoming a real estate broker and would you become one?
it sounds like a FUN process and great looking new studio. From selling and sourcing goods to sell I may have to look into moving to sourcing and buying properties. If you sold the property could you then do a 1031 tax exchange? But the equity is nice. Made it to the end.
Thank you so much! Definitely such a fun process. I could definitely do a 1031 exchange, but I figured there's no point right now - it's had a long term great tenant and want to keep things as they are for now.
Real Estate agents in NZ are not allowed to buy properties without a registered valuation done prior to any purchase to protect the owner from being lowballed.
Dude just put the whole video in the first 30 seconds. Realest UA-camr out there
Ah thanks!
Exactly what I was gonna say!! And I was about to skip a few min lol
I am a Realtor/Property Manager/Loan Agent. Your posts make a perfect sense! I will refer your video to my clients. What you say is very educational and I hope you keep up the good work.
I've been watching your videos for a while now and because of you I started my real estate license a month ago. I ditched the 9-5 grind and decided I want to be my own boss and I love your mentality about going in an area and finding a place to build your wealth at the end of the day. I subscribed to you and I wish you nothing but the best Stephan.
Real estate agent here from Maryland. I soooo agree with you about landlords skimping out on a slight increase in price that kills them in the end! Same with the backyard! I see so many houses where the so called backyard is a dirt pile and the landlord is kinda proud of the "backyard"!
Keep it up dude! Love you vids!!!👍
Thanks so much dude!
I'm a more recent subscriber and these old videos are a total goldmine. Grant, you're doing God's work, mate. Congrats on your ridiculous YT success!
I made it to the end!
I'm 22 years old, I'm currently studying business management and supply chain management at CSULB, and I just barely started falling in love with real estate. I'd love to be your apprentice/intern and learn as much as possible from you!
Exactly in the same situation as yours, 22 yo student of industrial engineering
Man, this is such good advice!!
Can't believe you're giving this all away for free 👌
Eh, it's all pretty much out there anyway, this is more so just me rambling at the camera for a bit :)
GrahamStephan Some very informative and valuable rambling at that 😀
Craolta lol don't give him ideas he will start giving this at a price
he is making money of youtube
Been watching your content for a solid 6 months. The algorithm suggested I watch this one from 3 years ago. Glad I checked it out, it still gave value eventhough it's the older content.
Thanks for the in-depth explanation of each step... This is why I watch you more than Grant now, you talk about the technicalities. Much appreciated👌
Mwuahaha Graham 1 / Grant 0
Ok ok in Grant's defense, these types of videos are really hard to scale on a large level. A lot of it is very specific and won't apply to most people watching. In order to scale, you have to be more generic which could apply whether you're 14 years old in Florida or 50 years old in Manhattan - and that's what Grant is good at. I'd love to do a mix between the two - would love to scale more, but still keep some technicalities alive.
GrahamStephan True, your path is just very similar to what I plan to do which draws me to your videos. That’s probably the case for a lot of your viewers so I’d continue doing it how you’re doing it
Austin Hicks-Frank Kong day and he is Kello our season with
Every single person who gives valuable content for free is a quality individual. Thank you so much.
Thanks for watching!
@@GrahamStephan your welcome. If you can do a video in the future about estimating costs on a rehab with a quality General Contractor that would be great.
Zillow underestimates my homes value. The appraiser valued my duplex over 40k more than Zillow
This forum is like you’re the real estate professor teaching us viewers your students the process to business and success. I love the videos you put out. It’s motivating detailed and you use simple words I understand not the real estate jargons some people use. I also want to do it soon so I could leave 9-5 job and have more time with my family. You seem to be honest and truly want to help others be successful like you. I hope you don’t get tired of teaching and making these videos.
Thank you so much, Cindy! It can be tiring sometimes, but I do my best :)
Hey that house looks familiar! Oh wait, I forgot we're neighbors lol 😂
Gotta swing by and see the garage!
Hey
I watched this video four times with the audio on the background because as a realtor in san jose california, these tips are pretty awesome. I find a lot value & motivation in your videos. Keep it up my good sir.
Thanks so much Anthony!
that man graham hes a good man
im glad i found graham im learning a 1 2 here and there
from graham
^
Yes finally someone whos true and doenst want to cash out on his subs who buy his books or stuff, one who tries to help his followers
So much knowledge thank you! I just got into the industry myself and this helps a lot.
How much did you make in the last year ? In the industry because i have also started as a developer
I made it to the end! Love your videos. This is such a simple business model, and I don't know why more people don't do it. Thanks Graham!
Thanks so much for watching Ben!
I made it to the end of your video.
My husband and I are trying to figure out how to invest in real estate now that we are debt free. Real estate is definitely one direction we are wanting to go.
what a genius.
lol, genius might be a stretch!
It’s the BRRR strategy. Buy, Rehab, Rent, Refinance.
.
8
Very smart in choosing the location, analyzing the finer details and planning ahead before buying a property. This was really informative for me!
Happy it’s helpful!
I really enjoyed watching this video. Most videos can send you to sleep but I think you gave alot of advice and information and made it enjoyable to watch. It was inspiring. Thanks for making the video
Thanks so much!!
I’m 19 and I’m fresh in to real estate/wholesaling! I’m very motivated but also very nervous, your videos help! I️ can tell you’ll be really good wealthy in the future Graham!
Glad my videos help! 🙏🏼
i have seen most of you videos all the way through. my dad is in real estate in LA and Santa Barbara and told me that i should get into it. I didn’t but now i understand the process.
12:13 : pay attention because that's the key to securing a location .
Hes the person I look up to because he's smart and obviously very knowledgeable . Thank you for your videos .
Going today for my first class can’t wait to see where I can end up ! Thanks for your videos they really give me inspiration to become successful and wealthy
Thanks so much man!! Good luck!
Only through half (as it's only 9 mins old) but love how you've gone step by step for this one. Great videos, you've changed the mindset of all the 75000 subscribers of your channel
Thank you so much, Aaron! Trying to switch it up...personally I enjoy doing analytical videos more, but a bit worried some of it might get lost if I go a bit more technical. So trying my best to keep it a fine balance between making it "basic" enough that anyone can understand it, without leaving any of the details out.
badass video..learned alot!
PumpChasers Chris Jones in the house!
Thanks so much!!
I would work for you for free just to be near your knowledge 🙌
Same, so sad hes in LA 😥
@@ChrisTheCentaur it could be worst it could be mexican in a mexican market jajajajaja
Graham does like free
Success is not final; failure is not fatal: it is the courage to continue that counts. Business opportunities are like buses, there’s always another one coming.
Truth, it is really profitable as an investment.
You can message her via her username below
♦️♦️♦️♦️♦️
Diana Lucy
I watched the whole video and what I have to say is that you provide a very good amount of valuable information. Thank you and please continue posting such videos
Thanks so much!
I'm like binge watching your videos because I'll be buying my first property in the next couple of months and I'm researching like crazy.
Awesome!! Good luck!
Some idiots gave you a thumbs down. I’m not sure why jealous people give you thumbs down. He’s giving his hard learned advice whether you are a buyer or seller.
Graham is the realest youtuber out there!!
this guy has a passion for what he does and for that reason i am a subscriber
You're an inspiration and deserve your success in the business world.
Really appreciate the kind words!
Man dude you have no idea how much I learn from you 👍🏻 keep it up !! Taking notes.
Thanks so much, so happy it's helpful!
What's up Graham? Long time no comment. I passed you on to my friend whos in real estate, and he told me just today that he played one of your videos in one of his team meeting and everyone got hyped up and learnt a thing or two that they didn't know. I don't do real estate at all but from watching your stuff it makes me feel like I am lol. Love the way you talk and express your messages, it has definitely helped me with my mindset for my online business. Peace bro! Talk soon!
+Wilbur Minay Thank you so much dude! Really means a lot to me, glad it's helpful :)
Idk how but you’ve caused me to watch this long of a video. Been watching a few of your videos and I’m just looking into owning my own place, you’ve helped me understand a lot and I appreciate that :)
i see the composition in your shots improving. as always, the advise is incredible. your enthusiasm is coming through.
Thank you so much!!
What a great video!!!....Wish I had the balls to do what you're doing right now. I can use 150k to help pay off my school loans. I have 50k left to pay which I dropped from 71k now since March. A part of me just wants to get out of my 9-5 and go into buy/sell/trade/invest for myself. I know I'd be great and it will help pay things off much faster. But another small part of me has me hostage telling me to finish paying the loan out first before I do anything else. Crunching the numbers I would have to do what I'm doing now for 1 more year.
Your videos are very inspirational. I learned a lot from you. The best part of your videos is the vibe you give off that if I try something everything will be okay. Its very encouraging.
Thanks Graham.
Thanks so much, dude. I'd bunker down one more year if that means you can be finished paying off the student loans. That'll be a huge load off your back!
your vids are really inspirational
Thank you so much, glad they're helpful!
I love how you said money not spent is like earned again
🙌🏼
Hi Graham, PA accounting/business student and also Real Estate licensee here. I watched the whole video, it was excellent, just like all of your videos I have seen. You talked about taxes and I want to throw a suggestion out there, have you ever thought about registering your home remodeling activities as a business (LLC)? Depending on a lot of factors, it might be beneficial. It comes down to filling out some papers, paying some fees, and registering with the state. A business lawyer could provide more information and help you see if it is right for you. If you do, you would be able to deduct "business expenses" which could help reduce your tax bill. The equity loan works, but I think it is more of a short-term solution instead of long-term, especially since you said you have multiple properties and are looking to do more. Lastly, let me chime in with another comment. Go for your broker's license! You are young and well on your way to building your own firm one day, if you want to. Think big, forget about that boss from the 9-5 video/story, you are level 10 but they were level 1! Sorry this comment is so long, thank you for the great videos and I wish you great success!
Hey thanks Mike! For what I'm doing, the renovations just get factored in to the tax basis that can be depreciated over 27.5 years (or less depending on the renovation). I don't think I can straight up write off renovation costs, especially since that is wayyyy more than this property will generate. And yes yes I agree, brokers license would be a good thing to get...just gotta sign up and take that test.
Well done and lots of great content. The last part gave great advice on accessing the equity instead of cashing out and losing profits. Great wealth building advice!
Thank you so much!
Watched it all the way to the end. How can i not. So much good information! THANK YOU!
Thanks so much!!
I’ve been following you for a while not and find your videos very informative. I haven’t started real estate yet but will soon and your videos definitely help me understand what I’m getting in to which I really appreciate.
🙌🏼
I commute one hour to school Monday-Friday and I listen to your UA-cam videos like it's a podcast lol.
Haha I forgot to say I watched till the end. Good stuff, I don't want to be a real estate agent but investing in real estate is something I want to pursue.
AWESOME! I do the same thing with other channels, I just listen to them in the car!
I retained so much information from just the first minute of your video. Keep it up man!
thanks!!
Always making it through to the end of the videos, Graham, of course! Love the strategy of hitting on all 3 returns.
Woohoo!
Your videos keep my mind churning. I live in tennessee and wish I could get some time with a real-estate agent to learn the ins and outs. I've worked with contractors since I graduated high school in 2013. I'm currently working in the hotel industry. Night and day I realize that this isn't the path I need to be on. If u read this Graham I want to thank you for the tips and the time u take out to lead others. Mind set is key. Have a good one and Thanks again man
Thanks so much, Terry - happy it's helpful!
Watched it all again, gotta keep saving money to get my first rental property, thanks man
thanks for watching!
This video is pure gold
Thanks!!
Excellent bonus material at the end. That proposed tax modification looks to be brutal for REIs. Great video. Thanks
We shall see what happens tax-wise. Hoping a lot won't get passed.
hey Graham just for reference everything in frame looks amazing and you might want to look into rule of thirds which basically says your subject's face/head should lie on the points of intersection between horizontal and vertical lines. Your videos are the best! but i think that would help with balancing the shot but its just a suggestion! Thanks for making this video again!
Hey Ray, thank you! I'm a little confused though, how would you frame the shot better? Don't quite understand the horizontal lines and framing.
i absolutly love this new studio !
Thank you!
I’m about to finish remodeling my duplex here in Chicago. I did the exact same steps you’ve listed here in your video. My question is once remodeled and rented will you be refinancing right away or waiting a few years for the value to go up and refinance then?
Bought my property for 350k apprised at 400k when I closed. I put about 45k into my property so all in I’m about 395k. It will be valued over 550k given the area but prices are still going up.
Thanks
I have to wait 6 months to refinance to get the new appraised price, unfortunately, so I've got another 2 months left. I could always wait it out though, I don't need the money and there's no real rush, so I could just wait a bit longer. By the way, great work man - you did it perfectly. Well done!!
Hey, im also located in Illinois and have been looking for areas in Chicago. What area did you purchase your duplex in? I was looking at the outskirts in Chicago such as Berwyn or northwest side
Love to see more of these types of videos, makes me want to hustle smarter not harder.
Real estate is definitely one of those businesses where the hardest working person doesn't always make the most. I mean, there are always exceptions and the harder you work, the luckier you tend to be, but working efficiently is such a big component of it.
Hello Graham, It's great that you do a detailed study and research on properties before closing down on them. Maybe looking with a Architect/Interior Designer who maybe a friend or acquaintance might help you in saving a little bit of time in helping you boost your creativity and ideas.
Definitely agree with this if I were doing things on a bit of a higher level. For what I'm doing now, it's not really needed - but anything a step up from this would definitely benefit from that.
Thanks for the bonus scene. You da best.
Glad I can look back as this and it’s still just as valid as it will be tomorrow... also how far you’ve came in your video quality 😂👏🏼
I watched it through to the end! 😁 great video 👍👌
I don't really know how many of your videos I'd have watched till now, but I feel inspired to get my first real estate investment.
Thanks for the information!
Iv done many of these renos before but "eventually" each property will drop "below" what you paid due to market downturns.
One thing is wish i did was to bite the bullet and pay for "expensive" property in desirable locations ie... near the beach.
When you speculate on a location & a down turn hits, people always want to rent the best located property not the outskirts.
Outer locations compete on price in reverse - the same way as you described when prices increase.
I know that you may not have the cash to put the deposit down on the best located properties but if you do, i would go for it.
I would rather 1 better located property than 2 average located properties because there are MORE average properties than better ones.
"When" the crash comes, you need to have working capital "credit" to compensate in the decrease in rents as holding the properties is key to wealth. Always MAX out your available credit and have this on standby because it may take another 7-10 years for the property to reach the same high value during a market boom.
The thing is, anywhere in LA is pretty high end - and from my experience here in LA, the higher end gets hit first and sometimes the hardest. Luxury homes tend to be the first to go down, and "lower end"
Agree that high/high end are the first to drop but I'm talking about the high end family home not the multi millionaires home.
I like areas that have ALWAYS done well, new areas scare me unless they are on the water/beach ect...
High enders downsize to these & the affluent middle class aspire up-grade.
I would cash in the lower end stock & up-grade to these "Cafe Culture" locations if you can??
Rent keeps you in the market whilst capital growth make you wealth therefore "cash flow" is sometimes irrelevant.
Some people will buy a shit hole because it cash flows then when a crash hits or they have repairs its wiped out.
The real hurdle for property investors is gaining deposits and staying in the market long term.
Having multiple properties never impresses me, its all about quality stock that compounds at a grater rate.
Looking forward to your progress, good luck.
Very thorough explanation. Loved it
Also watched your video on your journey in real estate from high school years. Super impressive
That sounds like so much fun! I’m currently saving for my first property! Yay!
🙌🏼
I gotta said I got to see your videos because of videos you have on stock market and news, and wasn't really into Real Estate until now, it's been added to my goals, I'm following your example when I get my first job, I'm gonna go get my Real Estate license, I don't know yet how im gonna sell the houses, I just know that I'm sure I will get enought commission the first year to buy a house, I didn't know anything of Real Estate until now, I already have my plan, I just need the first step which is get a job to then get a real estate license
Holy cow I just realized you remind me of Farris bueller
LOL
I left my day job (Marketing Manager) to dive into this full time, a large part thanks to the inspiration from your videos. I sent you some message on IG but you haven't gotten around to checking them at all. I'm in the Toronto area and I just passed my first exam and about to write my second exam at the end of this month. Keep it up Graham! Looking forward to more videos, and perhaps we will meet in person one day. :)
Thanks so much Daniel, well done! Keep up the great work! Sorry about the IG, I get so many DM's that i don't really check them - and older messages just get pushed out for the newer ones. I just keep track of the YT comments!
Nice work buddy. I have renos going on right now in one of my duplexes and looking forward to refinancing when it's all done! I'll have a video on the completion.
+Jeff Wybo Can't wait to see it! I've seen the insta stories and they're looking good (same place??)
Yes the upper unit I showed you.. totally changing the layout. Going to be awesome. They are making noise upstairs right now!
Come on boys lets get Graham to 100k by the end of the year!
+VirtualProductions 🙏🏼🙏🏼🔥
100 percent!!!
Everything cost more in your area, it amazes me the valuations though you do have the weather, ocean and population to support it.
I just bought 1k in bitcoin :) lets see what happens guys
Good luck! Saw what happened with the hard fork, thinking there might be some type of correction going to happen but I'm so lost when it comes to crypto, who knows.
I have a geek friend thats been trading it since he was 13, he's has a ton of them and over lunch he explained a very realistic theory. Who knows we met up and he told me to buy that day and i didn't and it was worth 3.3k that day :/ Here i am few months later and its nearly worth 8 :p Ill let you know how it goes though!
So I've heard once it has a correction ill just buy another 10%
It's going to continue rising! Bitcoin, Litecoin, and Ethereum are the top coins that I've invested in. Make sure Sebastian Ghiorghiu that you get a hardware wallet!
Do not keep your coins on the exchanges! I cannot stress this enough. Exchanges have been hacked into previously and people lost their coins.
Invest in a hardware wallet and then hold onto your bitcoin. We're going to keep seeing massive increases in bitcoin over time.
There will always be corrections. That's just the name of the game and how markets work!
Thanks Graham, you doing amazing,,, keep going.
Congratulations on your new property! It looks great. You are an inspiration.
Can you please go over the finances?
1. Assuming that you put 20% down, your monthly expenses are around $2900/month (mortgage,’insurance and property taxes).what are you planning on renting each unit for? Are you going to be cash flow positive?
2. When you want to get some money out the equity: do you do a cash out refi or do you do a home equity line of credit or loan? And when do you decide when to do it? If get money out, you will have an extra payment or a new mortgage for a higher monthly amount and you may end up being cash flow negative. Or do you a cash out refi for a new mortgage or the same amount?
3 how will you increase your rent in a rent control area ? Is it specified in the rental agreement? “Rent will go up by 3% a year” or something like that?
4. What bank do you use? I talked to Wells Fargo and Bank of America and both said that they can only give me 60% LTV because it’s an investment property not my primary residence. What bank gives 80% LTV for investment properties?
Thank you very much!
1. That's pretty close, about $3000/month! Good numbers. Total rents at market value should be about $4200/month. I'd guess this should be closer to $5000/month in another few years as the area continues to pick up. I ended up moving in here temporarily and renting out my last place, I can refinance as an owner occupant with better rates, save up a bit, and do this again next year.
2. I'd just refinance. Home equity lines are fine, nothing against them, but with rates still pretty low, I'd rather lock it in for 30 years if I can.
3. 3% per year increase. BUT, I'd rent it out to friends or people I'm close with, knowing that they won't stay that long. But even if I get a tenant who stays, I won't sweat it. As long as they're a good tenant, that's all I really care about.
4. I use Chase! They've been incredible! I also put 25% down, so there's that.
Please keep doing and making this kind of videos.
Winner winner chicken dinner.
🍗 🍴
Great Video Graham! Very educational!
Thank you so much for the advice! Your videos are helping me a lot right now
The time zone change... I live in AZ I didn't realize it's 3:30 over there😂
+B Lee Gotta step it up bro 😉
GrahamStephan You are absolutely correct. It's getting unacceptable
I watched the whole thing, even reminded a few times great tips definitely looking forward to more videos
🙌🏼
As always, I watched it all the way through and as always great video :)
Hi Graham, I do have some questions to ask.
1. Do you think we can apply your strategy in 2011 again in the current SoCal market now? Since the market is heated up again. I am afraid if the Fed keeps raising the rate the market could crash soon.
2 What is your debt to asset ratio? I don't think you leveraged too much loan. Even if you did, you locked in very low mortgage rate which may not appear in the near future. What can we do now if the mortgage rate keeps going up?
3 The first one or two properties you bought in San Bernadino with a very cheap price. I wonder how the neighborhood and the crime rate are. Is it hard to manage the tenant over there?
4 Refinance is great. It can avoid the tax but it is a loan. We need to pay interest on it. If we keep refinancing the equity, we simply keep borrowing more money. How could we balance the debt to asset ratio? Especially when the mortgage rate rise, the profit margin will shrink.
Thanks.
1. No. Long term, I think you'll be fine. I'm doing the same thing literally just 2 weeks ago when I closed on a new place.
2. Less than 50% debt to equity overall. All fixed rate mortgages under 4.5%.
3. SUPER easy! But I've been really, really fortunate with awesome tenants so far. No issues besides one that was entirely my fault (youtube "tenant eviction graham" and that will come up)
4. Refinance only if you have a higher yielding investment to spend it on...otherwise it's not worth it.
@@GrahamStephan Thank you for the quick reply.
1. I think the real estate yield rate will drop as the mortgage rate goes up. The appreciation will slow down and the rent will just stay flat for the next couple of years. Or do you think the housing market will repeat 2008?
2. Don't you want to cash out now and wait till the market crash to buy the undervalued asset? XD You may double the number of your properties.
3. I am a beginner. I don't think it is a good time for a beginner to expand now. I have a 50% debt to equity ratio. I don't think getting more loan is a good idea for me now, especially I may just get the mortgage at 4.5% or even higher. You ride on the last big wave. I am in San Diego. Do you think there are still some undervalued markets in SoCal now? XD
4. I applied for your private Facebook group. Just realize Rancho Cucamonga is in San Bernadino. I bet your houses are there. That is a very good city. I once had a road trip to inland Riverside. It is not so good even though the price is very low.
Thanks again for making these helpful videos.
I think I like you because you are smart!!! Keep up the good work!
:)
Still awesome and informative video!! Big support from the Netherlands!!
Watched it all the way. Great channel bro.
THANKS!
Made it threw whole thing again
YESS!! THANKS!
This was one of ur best videos
Great video. You you do a step by step video on how you do your market research to find an area that you feel will be the next up and coming area.
+Will Alvarez Sure! Although I somewhat explained it in a few of my last videos and this one, with properties getting more expensive and population moving outward.
Bro thanks for video. Even being a 3 year old video. still applies today! Totally subscribing and watching your content. Hopefully I can get moving on something.
Made it all the way through, a great inspiration Graham! Keep this up buddy :)
+Souhaib Lgamawi thanks!
Very well done man! Amazing knowledge. Thanks for talking about what you like to use contractors for.
Thanks for watching!!!
Hey graham where did you get your cool posters? I need one to remind me of my dream goal. Question: what do you think of becoming a real estate broker and would you become one?
Always watch your videos all the way through.
thanks!!
it sounds like a FUN process and great looking new studio. From selling and sourcing goods to sell I may have to look into moving to sourcing and buying properties. If you sold the property could you then do a 1031 tax exchange? But the equity is nice. Made it to the end.
Thank you so much! Definitely such a fun process. I could definitely do a 1031 exchange, but I figured there's no point right now - it's had a long term great tenant and want to keep things as they are for now.
i been watching all your videos , amazing content . keep up the good work
Hey Graham, a great addition to your channel could be a day in the life video.
Yes! I've actually been thinking about doing this, good idea!
BRRR BRRR, priceless info provided!
Real Estate agents in NZ are not allowed to buy properties without a registered valuation done prior to any purchase to protect the owner from being lowballed.
In America we have a saying: "Caveat emptor"
Thanks for all the info sir. Just bought my first house and subscribed to your channel.. It's been a good night 🏡🌇
dude, awesome new set up / lighting !
Thanks so much Brian! Gonna keep trying to change it up to get new "looks" out of the space.