How Much I Make From 6 Rental Properties
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- Опубліковано 16 сер 2020
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Entire video summed up for my real estate investing -
SO FAR, I have INVESTED ROUGHLY $756,000 OUT OF POCKET through down payments and renovations…and that made me a total of $2,158,800 in profit through home appreciation, rent, and mortgage payment. That works out to be just under $270,000 per year, ON AVERAGE, each and every year in profit.
That also works out to be an OVERALL return of 285% for my real estate investments between 2012 and 2020. Obviously, most of that money was invested between 2016 and 2019…but, still, that’s our average.
In terms of cashflow from this…my NET return between rent and mortgage equity is about $9400 per month, so on that $756,000 originally invested…that works out to be a 14.92% annual cash return on my money, NOT accounting for home appreciation.
HOWEVER:
One, real estate is a leveraged investment - meaning, I can BORROW most of the money I need from the bank at a low interest rate, and that will increase my returns. This is something that’s not as COMMON to do with the stock market, and you certainly don’t get the tax benefits of depreciation and a locked in interest rate like you do with owning a house.
Two, real estate is a lot of work - this was not a PASSIVE investment, BY ANY MEANS, until it gets rented out - and even then, it still requires a little work from time to time. These were all deals I spent a considerable amount of time finding and fixing up - so, it’s a little unfair to compare that with stock market investing which is nearly entirely passive if you just buy an index fund and hold it.
Three, I’m comparing this with an SP500 index fund…which, lets be real, is a safe and stable investment long term without much upfront work. But, had I picked individual stocks and gotten lucky….I would have made MORE money during that same timeframe.
So, at the end of the day…based on all of this, YES - picking individual stocks CAN make you more money, OR you could end up losing more money. But, real estate, CAN be a relatively safe and stable return compared to a broad index fund, IF you’re willing to put in the work, and ONLY buy properties with potential for IMMEDIATE upside.
Real estate investing can be absolutely phenomenal, and now that I’ve added up my total returns…it makes me want to continue buying just EVEN MORE REAL ESTATE…and smash the like button! :)
For business or one-on-one real estate investing/real estate agent consulting inquiries, you can reach me at GrahamStephanBusiness@gmail.com
*Some of the links and other products that appear on this video are from companies which Graham Stephan will earn an affiliate commission or referral bonus. Graham Stephan is part of an affiliate network and receives compensation for sending traffic to partner sites. The content in this video is accurate as of the posting date. Some of the offers mentioned may no longer be available.
The only disadvantage of watching graham is all the 'get rich' quick scam ads...
ad blockers be like im here to save you soul if u give me 2 dollars
@@joeMAMAAA88 wym you pay for ad block? Lol
@@dotastillthebest5474 no but they ask for donations XDD
@@joeMAMAAA88 wym you get asked for donations??
@@joeMAMAAA88 thats why you get brave web browser
the " ( RENT IS DUE ) part was hilarious
LOL
😂😂😂
How do you feel about the wealth tax and being tied to California for 10 years?
We’d love to see a video about your exit strategy on a particular property (or maybe even your overall RE portfolio) from a tax standpoint. Would you do a 1031, or? Can’t speak for others, but you walking through how you’d mitigate taxes later in life would be great to see! Tax benefits upfront seem easier to understand than taxes later, but that’s why you’re here. Lol. To make sense of it all! Thank you for all these awesome vids! I’ve learned a TON!! ✌️
What’s hilarious is the incorrect % calculation, it’s x/y-1*100 not x/y*100, all return numbers are exaggerated by 100%
Forget about reopening schools. You learn way more from a single video then an entire semester from UA-camrs like Graham.
facts brooo
facts brooo
facts brooo
So forget all the math and all the English your teachers taught you
facts
Moral of the story: Buy your houses in 2012.
BathingWookie I feel this so hard especially as a high school student, but I think the real moral of the story is to take risks, and get properties to cash flow and in eight years, you’ll make money. “Best time to plant a tree was 20 years ago, second best time is today” -Chinese Proverb
Or if you're watching this video in 2028, buy your houses in 2020.
David Howard Yep.
and also buy them with daddy's or drug money (wherever he got the $60k for the first house and the money for a lotus) 😂
B Ram Socialism is evil
Grahm Stephan: the type of millionaire to ACTUALLY tell you HOW he made 7 figures, not build and build until telling you to buy his course. 👍🏾.
And you thought I was black because of the emoji
Just saying, the vast majority of his money is from UA-cam (nothing is wrong with that though), and his friend Meet Kevin (sells expensive courses while also making the vast majority of his money from UA-cam. Then there are UA-camrs like Chandler Smith, Manny Khoshbin, Ben Mallah, people that are big real estate investors, that made all of their money off of real estate, and not youtube or courses. And don't get me wrong, Graham and Kevin both make very educational and informative and inspirational videos, I'm just sayin'.
Graham's a real one!
Crey Lacoste Go you ✊🏿 this is america
Bro, his real money is being made with UA-cam etc.
The fact you sold your dream car to get the bag is inspiring and shows the dedication you got! Good work 😎
People get attached easily to material things. I'm sure Graham enjoyed his car while it lasted but the right move was to move on.
a car is not an asset well done for him selling his car and making more cashflow
@@healthiswealth8153 in this case it was an asset, he sold it for more if im not wrong
@@bestbeast6368 i heard from him that he sold it for just about the same price as he bought it and if you calculate the inflation and how he used it to do business its like he actually earned money on it.
😂 gotta secure the bag.
He sold his dream car, he sacrificed his dream car to reach his dream.. that’s soooo freaking inspiring man
Rental properties are SUCHHH long term investments but man when you finally sell them you can cash out like a mad man
Also never sell?
@@TheAKfactor Trade up into bigger deals later on. Juts don't sell to quit the game.
@Kuuryo get you summa that infinite ROI.
You get taxed hella for cashing out, but no tax for upgrading for a bigger house
@@vanillabreyer Yep. If you sell, buy into something else. Just stay in the game.
While most UA-camrs are spending all their money, Graham is out here sharing the most intimate details about his real estate investments and how he is taking over the world 😂
On the Next Episode: Graham Shares His Social Security Number and Credit Card Info
graham would prob give out his credit card deets just to get the points and miles tho haha
That's the one of the MANY reasons Graham has over 2mil subs
Everyone can make a lot of profit if you trade with the right broker
@@blaz10nn18 It's because he's insightful and teaches through his own experiences! I coach personal finance professionally and enjoy listening to Graham!
@@angelicamaria328 that's true. Cryptocurrencies is the best option now
I couldn't stop laughing when I saw rent is due 😂 good one
10:20 just shows how comfortable Graham is in front of the Camera now. He doesnt get mad if he flubs the script, just adjusts and continues.
If you look close you could see he's starting to smile before that and is getting distracted by something
i cant stop watching this dude since he popped up in my recommendations im going rich i guess
Hey graham, I just wanna say thank you for making videos. Because of you I just got my real estate license and have a good credit score. Lol I’m 20 and use to have no idea about the financial world and now know more then my parents . You really changed my life thank you for inspiring me.
Well done!! Happy to help!
@@GrahamStephan he is now worth 500 million dollars.
@@wisdomandlove1661 Is this true?
@@beatricerightsyes
love this kind of transparency. and you dont come off as bragging. i honestly ive learnt so much from your channels
Your videos are the only videos I can watch and it ever feel like 20 minutes just went by! Very informative! Appreciate the insight!!!
"I would've mad 400% investing in Apple. 750% in Tesla, would've made 700% investing in Apple (shows Amazon)" lol
@Loretta Taylor really?
I make over 10 000 USD each month thanks to FRO ZEN PA.C OM
@@johnclancy3998 can you help me too?
@Samuel Cunningham chill bro that’s obviously a scam lmfao
@@angellechuga1397 I know I saw his video about them😂😂. I’m tryna see what happens if I can lead them on😂😂
I love how you're so transparent with your finances Graham, thanks for all the info it really helped putting a financial decision of mine into perspective.
Graham, your videos are what got me to finally buy my first piece of real estate and focus on developing multiple streams of income. Thank you for all that you do!
I started watching one video and before I realized it I had watched 20 of your videos. I didn't expect I would enjoyed them. Learning about finances isn't usually entertaining but now I'm hooked. You make good quality videos and I'm striving to be more like you now.
Jeez... His honesty always amuses me. I have never seen such a genuine youtuber 👏👏👏
Hey Graham,
I'm a 16-year-old and have been watching you since I was 14. You have given me so much knowledge on so many things in Finance. Now, I have begun investing in a Roth IRA with money from my job after watching your video. I am waiting until I can take the test for my real estate license. Thanks for all the help and for being super transparent with everything. Keep up the amazing work! :)
Hey I'm kn the same position, wanna help eachother out?
I just wanna know how you are investing in a Roth IRA when your 16 cuz you literally can’t until you’re 18 😂😂
Same I’m been watching him for 2 years since I was 14 and I have full confidence that I will become a millionaire one day because he’s taught me a lot about finance, I thank him for that.
I thought i was the only 15 - 16 year old thinking about investing and my future.
@@itzoskar3165 i remember wanting to invest in tesla 3 years ago, even though i was broke and only had 200$ but I didn't, i regret it now lol
Smashed the like button before he told me to. It's become habit. I feel like a dog that Graham has trained. Damn he's good.
Literally hope you post everyday to learn something new.
I think Its a crush.
Thank you for the video. Your transparency and openness about the numbers are invaluable.
59,000 to almost 200k that’s really good wish It happens to me just bought my first property based off your video’s
So thank you so much, thank you so much for this video, Graham!
You are so sincere and transparent, you really deserve much more like.
Nice Graham! When I lived in SoCal a business mentor told me "you'll never regret buying real-estate in Southern California for the long term hold". Loved how you broke it down completely.
Honestly, this man is the only reason I watch youtube lmao. Feel like I’m actually learning something
Just saw you at the Bellagio over the weekend!
This is why I watch Graham! Such transparency and actual success. Not like those scam gurus whose ads I was getting while watching this video.
These videos motivate me everyday I watch them. Inspirational. Positivity can really change you when you have a set mindset and sense of focus. Love what you do bro. ✌❤
Real Estate investing is something that I am working towards. I invest the max in my Roth IRA every year and then everything else I save up is for rental properties to gain passive income streams for life. Thanks for sharing your experiences!
Do you have your real estate license?
@@ClutchBusiness I don't plan on getting a real estate license. My mentor uses a network of real estate agents and prospects potential properties himself to get solid deals. I plan on using agents to assist me with the process as well, but I would be interested in obtaining my license down the road though!
@@DAILYGamblingCS I want to get one just because of how much commission I would be missing out on when I am buying properties lol
@@ClutchBusiness That is true. I guess it is the same as hiring a contractor for fixing things or doing it yourself. Just depends on how much effort you want to put in yourself vs. the time it takes and the costs.
"So thank you so muc... SO THANK YOU SO MUCH and let's get back to the video here." -Graham Stephan 2020
Thank you for your honesty and passion! You are inspiring, you're information got so much value and so helpful!
this is the best video ive seen of yours so far. as someone trying to buy more properties, this means so much to me. thanks Graham
Hi Graham, the returns you mention are absolute returns, however they are a little misleading since it’s growth you have achieved over a really long duration.
For instance in case of your second property, over the course of 8 years your investment grew from $80,000 to $296,000. As a result its compound annual growth rate (CAGR) is 17.77 %. I feel this is a much better representation of the growth since it factors in the total number of years that it has taken to achieve the total growth.
11:12 "rent is due" 😂😂😂
Great layout
I had to give you thumbs up halfway through.
Motivational!!!
Thanks for providing the summary! You definitely have made some good decisions and invested time in your 20s well. Congrats and cheers to more success in future!
It’s basically impossible to do that today in LA. Price skyrocketed and your timeline starting in 2012 is the demonstration.
Hopefully in the next months there will be new investment opportunities at a fair price since many people are leaving LA! 🙂
If people are leaving, how will that impact the homes value in the future?
Fred H hopefully they’ll also come back!
@@StefanoMongardi I hope too! Get your money 💰
I aspire to grow my channel to the size of your channel one day. And I always look forward to your videos every day, thanks, Graham!
You got it!
Just remember it takes years. It's hard to spend 15 hours on a video when you're getting 100 views. Just keep chugging.
Love the detailed numbers and transparency!
Thank you for sharing Graham! Totally agree, real estate is not purely passive at all. It's all hard work especially in the beginning setting it up. The closest thing to making it "passive" is when you hire a great property manager. And to dispel the notion, nothing is ever purely "passive". It's all about the rate of return you get relative to the amount of time you sacrificed to get it. High knowledge + high effort + right time = max profits.
Not a bad start. I could see this guy doing really well in real estate some day
:P
lmao
😂
Hola Graham! Thanks for popping in the live chat last week 👍🏻
Hey thank you so much!! Really enjoyed the video!
One of the bbbbbbbest videos on UA-cam EVVVER. Love your honesty and I think you are awesome 👏🏼 👌🏻 well done 👍🏻 and thanks for all these information
Hey graham!! I love your videos you’ve been a huge help - I just started my own LLC for my self employment work - instead of putting my business things in my name, I would love to see a video on how you manage your business funds and business credit. And maybe how you set up and choose your salary based on your business’ income! Thank you
I've been watching you since high school. Sadly, I didn't take the advice sooner, but now I'm 21 and 50% done with my real estate course. Ready to take on the world. Very inspiring!! 💪🏾💪🏾💪🏾
How’s it going now?
You know what’s funny, I’ve been watching Graham for so long it’s almost like I’ve been trained to smash the like button whenever he says it😂
This might just be the best and most helpful video you've ever made.
I'm still on my first househack, but maybe one day! thanks for the continued inspo man!
Glad to see I'm not the only one who makes editing mistakes in his videos! :-D
Love the vids graham, biggest inspiration in my life!
ah thanks!!
Thanks so much for all the time and well spent effort to produce this wonderful content. You've inspired me! : )
I was looking for this a long time. Thanks man
It’s no joke, back in 2010 I bought a rental property for $60K and the mortgage payment was only $515 and I charge $1200 in rent and the renters paid it off for me in 5 yrs. It’s 2020 and I have made $65K in profit just from the rent and the property is now worth $165K.
What about now
I hope all of his tenants smash the like button for the UA-cam algorithm
Been waiting for this for so LONG
Another awesome video from the graham stephen garage !! Thank you brother
When you were going in on these $50-$70k properties, was your goal to use them strictly to generate rental income? Or were they in areas you thought had upside?
Probably both but he's said he never plans to sell if I'm not mistaken. Appreciation just means more cash flow.
Graham use Compounding to be wealthy. Selling only if necessary, but 98% of the time holding for long term.
Most people earn thru appreciation which is buying low and selling high, Graham earns money thru cash flow.
Graham is basically the Millennial version of Warren Buffett.
Most likely strictly generate rental income. He has mentioned that they are in San Bernardino the IE (about an hour in a half ) and that isn’t the best place. The appreciation value grows, but not as fast as you would if it was closer to LA, even unincorporated LA.
@@fakegamergirluwu6717 Yea, that's what I was thinking. Makes sense
Hey Graham, sorry if I missed it in the video itself, but are you factoring in closing costs and fees into your calculations for the purchasing of each property?
Real talk no click bait in very video
Appreciate you brother🙌
Great video Graham! It was cool to see the before and after pictures on your properties, as well as the numbers.
LOVE these videos. Super motivating and educational at the same time. The wealth generation power of real estate is insane with some hard work and brains even if you have little money! Thanks Graham 🙂
The rend it due thing was really something 😂
Ok 10:21 glitch in Graham actually made me feel so much better about my own videos. I always mess up so much and I’m in awe of how fast Graham talks. And how it’s so dense with information. But yes seeing him screw up too for a second, gives me hope lol. Thx buddy
LOVE WHEN YOU DO VIDEOS LIKE THIS
Good video. I have 115 rentals currently! Working in building a following to teach people as well!
FasterFreedom njce
Looking at your channel it’s seems you have a lot of videos of real estate investing which is exactly what I’m looking for, I’ll definitely check them out! My question is if I need a lot of upfront money to start owning property? I just turned 19 and I’m really only using my money for stocks.
@@ma-x9014 All you need is 3.5% (I would suggest 5%) to buy an owner occupied deal
Hello Sir, I love the informative videos you do keep it up.
Question : How exactly does the bank let you get so many mortgages in a short amount of time? Considering you were able to purchase multiple properties in 2012.
Thanks a lot.
Regards from Canada.
He wont say 😂 and where did all that out of pocket money come from in 2012
I know in the US, you can get up to 10 loans in your name. And the banks will count your rental income as your personal income when calculating your debt to income ratio so you are a higher earner.
I forgot to Smash the Like Button and as soon as Graham started mentioning it I turned my phone upright, and clicked it. He's got me trained I didn't notice till after
i normally dont watch youtube channel but your content is 🔥 keep it up G💯
It would be interesting to see the video “how much money I actually made on the video “how much money I made on renting 6 real estate properties” 😅😅
Hmmm...
Oh what have you done lol
@@GrahamStephan Yes!
“20:40” you said Apple twice when talking about investing in stocks lol. Good video though bro. We appreciate all of your content.
Congratulations you deserve a cookie now go find a hobby.
Really digging the master bathroom renovations for Somerset Dr!
Helpful information. Thank you Graham!
Can you cash out refinance stocks? That's the way I like to invest my equity in rental properties without selling, doing an exchange or having any tax liability (outside of the recapture tax when I sell the property). That allows my tenants to pay for my properties and even the jump after refinancing, however due to lower rates and stretching the loan back to 30 years, you effectively create tax free capital to redeploy.
Appreciate the breakdowns/lessons learned from each property! Hoping I can find a fixer upper this year and document that process as part of my financial independence journey!
Graham you are an inspiration for others to get into the rental property game. Me and my wife are saving to buy our first rental. We are hoping to do this some time in 2021 or 2022.
Damn, 6 ads
Milking that UA-cam money, I see
The number of ads in this video makes me think Graham has been kidnapped and replaced.
adblock?
Randomly came across your video and your insight has been an inspiration!
Love the video love the transparency. Love the Chanel
Your transparency was one of the big reasons that I started my own finance channel - context is so important and makes what you say so much more helpful. Hats off to you, Graham!
you got it! happy to help!
Hey Graham so do you recommend as we r building wealth initially to have more of a focus on accumulating multi-family properties or buy and hold index funds? This is something I'm really thinking about comparing in a vid once I get my channel up and running.
Man index funds all the way. Multi-Family has potential for larger returns but I've never had my index funds wake me up in the middle of the night because the air conditioner isn't working.
@@stephenryan4747 I mean that's very true but idk there still is a lot of benefits to physical real estate as well. Like from the tax writeoffs, to the appreciation potential if chosen in the right area as well as the steady income steam. There's also a sense of pride to seeing the physical assets you've been working to build.
this is a great content! Thanks Graham.
You have the only videos that I can fully watch. Planning to get rentals with my girl and take the cash flow and invest it into a dividend stock portfolio with 15%-20% invested into big tech companies. You're awesome.
I would really love to hear about how buying properties/ getting a mortgage works in the US. Here in the UK there is no waaay what you did would be approved - especially the 2012 buys haha
I thought the same I'm in the UK also in Sat here thinking how I can start doing this but the simply answer is not a chance in the uk 😞
Tinker Tailor yes it’s unfortunate!
An interesting question would be "how much more money will Graham make from Real Estate"
10,000 iced coffees per day
Not as much as he makes from UA-cam!
@@GrahamStephan graham you should read the Quran with translation and talk about it
Your hands speak
@@GrahamStephan @1030, "so thank you so much" repeat edit. Leaving it in kinda normalizes the vid though so.
Btw always Smash the like button for the Algorithm
22mins of solid information thanks sir grayham.
Graham. I know a lot of work went into this. Thank you.
It’s crazy how these house are 500k and they would be 120 where I live
It's always nice to see that the people teaching about real estate are actually making money practicing what they preach and not just from UA-cam 🤣🤣 Awesome video!
Thank you for sharing buddy.
May you make a video about structuring your deals? What type of financing did you do, rent roll requirements, guarantors, etc? Good video!
How can people dislike a video already when the video is longer than the time it has been live? YALL BETTER SMASH THE LIKE BUTTON FOR GRAHAM
I know right?! :(
He's mad he works a useless 9 to 5. Like meeeee
Graham Stephan I’m pretty sure likes and dislikes have the same effect on the algorithm (think Justin beibers “Baby” getting recommended with TONS of dislikes) but its still rude :(
Graham rode the high tide in real estate valuation. Can he say 'I was extremely lucky'?
Supreme video!! 💪💪 I love your videos!! 😄
I've always wondered. about time you shared!
Before watching I guess 5 million