Hey guys! I apologize if this one might seem sliiigghtlly repetitive for those who have watched some of my older videos on this topic. When I’m asked “what’s the easiest way to invest in real estate?” this is it. This one goes a little more in depth in terms of what I look for and strategies to implement. The concept is the same, it doesn’t really change - but sometimes repetitiveness helps it sink in, plus with a little more in-depth detail thrown in.
EddyZamora you could always ask your dad to use his tax return and just tell him you have the money for a down payment. I am also a real estate agent down in San Diego area. How ever this profile I’m on right now is just my gaming channel.
I like the video but question is this how there are people who has a lot of properties and they dont pay taxes like donal trump and other rich people you should tell us that also 😏
Miguelon it was 75% LTV. Spent about 56k all in. 13800 / 56000 = .246 or 25% Cash on Cash return. That same money made like 60 bucks for 1 yr in the bank. Mike drop.
I basically started exactly what you're talking about in December. I'm a 25 year old civil engineer who's hoping to quit the rat race with the help of multiple streams of income
Did this last year, haha. This is legit. I was able to get 5% down even. A couple more suggestions: A mortgage broker was able to help me out a lot. Have a buyer's agent! The realtor selling the house works for seller, not the buyer so it's good to have someone in your corner who knows what they are doing. And don't forget about closing costs as well, they can be as much as your down payment. Another thing that I did was rent half of my unit to a roommate as well for an even bigger income. Good luck all!
There are a couple things to keep in mind before doing this. The tenants you have will be people you have to live with and deal with on a regular basis, so you must choose them wisely. Also, buying this kind of property, you need to have a good stable paying job to take care of the monthly expenses, which can be very costly. As well, you are essentially locking yourself down to one place for the time being until you have enough money to move out, so you have to be committed to living there before you decide to invest this way.
Kind of. You’ll need money for repairs, but that means you’ll set aside some of the rental income each month. Doesn’t necessarily need to come from your job unless something big comes up which isn’t going to happen often. As for being locked in, you’ll be locked in for 12-18 months but it’s also no different than signing a one year lease on an apartment. After that you can always move out and do whatever you want!
I am making my modest steps in real estate ( i am in my early 40s) and find your videos heavensent. I admire you for listening to your own guidance while still being so young ( when you were starting) also thankful for saying things like ”start small and learn as you go” ”it doesn’t happen overnight, it takes time” Your channel is so informative and inspiring. Best wishes from Estonia!
To everybody complaining about the initial cost. You do not have to buy in L.A.! There's plenty of affordable markets that will give you great cash flow. In the USA you have Atlanta, & Indianapolis, etc. In Canada the Maritimes and Ottawa are great options. You can get the 10% down quickly if you're buying in these markets.
Graham Stephan Indy has solid rental properties that you can buy for 50-60k. I'm looking at some properties in Eastern Canada selling around 80k Cad that will return about $800-900 a month in rent easily.
Reno freaking Nevada. They’re currently having a housing shortage of almost 100,000. Tesla factory, Apple iCloud ect all moving to their massive industrial complex
Graham Stephan it's random. Most of the news if I have time but also some the earlier ones like your first ones. I get up at 330 am and don't get to bed most of the time till 10 pm. The bids get put on the back bunner. I do enjoy them and learn from as I'm also tring to learn what i can to get started till I get the down payment saved. I also watch a few others and been reading up in my spare time. Later
Awesome video! You have me hooked. I usually lose interest fast but you kept me wanting more because you are straight to the point honest and a fast talker. I didn't even realise it was 14 minutes long. Great job!
I really like your videos. Very straight forward!!! Thank you very much. Keep it up!! I am finishing nursing school in Miami fl, But I was thinking about moving in to Las Vegas and start saving to invest in real state. However, I have 3 questions for you: 1- is it too more expensive buying a multi-family property outside the state you are living in? If so, how much expensive ? 2- I was thinking in buying a multi-family property in Orlando fl before moving out fl. It is that ok money wise ? 3- when you buy a multi-family property the cash flow you put it towards he principal or you save it? I’m sorry for the ignorance, I am sooo brand new on this topic. My next goal after graduating is investing in real state, so I am trying to educate myself as much as I can before staring. Thank you in advance Maria
What’s up Graham, I’ve been watching your channels (yes plural haha) for almost a year now. My goal was to get to zero (no debt). I just got there today. Now my next step is saving for my down payment. By the end of 2021 I plan to have my first house hacked unit. Thanks for the information. Keep it coming
Hey Graham. I just wanted to share my situation real quick with you. Been a loyal sub since literally your 1st or second video lol. Im 22yo and have been saving alot of money from my job since i was 18. Btw i dislike my job ALOT but it pays pretty good so im kinda stuck(for now). Im in the process on closing on my first house or property ever which is a duplex :). I believe it or not already have about 50k equity on the property. Im going to live in one amd rent out the other for about 2- 3 years, hopefully save even more money from the renter paying most of my bills, then to buy another multi family maybe a 4 or more a couple years later and quit this horrid job im at.... factory job... just wondering if this sounds like a solid plan to you graham i love your videos and have learned alot from you and sometimes worry ill never be able to do real estate full time. Ive been wanting to do it since high school lol. Much love -JT
Bullfrog life! I’m so proud of you! You weren’t born to work at some job you hate. Real estate is obviously a fire burning within you so let that fire burn and burn bright! I don’t know a lot about real estate, I learn most from Graham, but from what master Graham has told me, your plan seems legit. Don’t doubt yourself. Your so young and it’s amazing your thinking about this now. So many people wish they could have more time and you do. Get rockin!
Should make a video and show us one of your example calculations before you buy a property, mainly including the specifics of how you calculate the renovation costs and how you anticipate what equity you'll add by those renovations BEFORE you buy
Graham I am a 17 year old entrepreneur and I just gotta say I love you man you helped me make enough to found my dream lifestyle as well as invest into my bussiness
One piece of the 20% here. Your content has been helping me push past the learning stage (Few years of personal barriers) to finally start making deals. (Look at me commenting on another youtube video, on a roll eh!) Building buyers list in BC Canada now, starting with wholesale deals(That ARV and MAO money for the cash buyers), a team of friends and various connections in trades and restoration cleaners for when I finally begin investing in my own properties. Can't wait to Make Life Better as you do!
Thank you. I have wanted to invest in real estate for a year now and I'm also considering becoming a real estate agent. I'm only 16 and I can't wait to get out and start investing. Everyone around me tries to discourage me saying I'll be broke and homeless. However with every video of yours I watch, I know I'm making the right choice. Your channel is a hidden gem and probably even changed my life for the better. Once again thank you. P. S. 20% squad every video for life
You always have to set yourself up for 1-2 years before you can get into real estate investment, so these videos are still good, but I am at the point where I need either a cosigner (just for the income I make, everything else is excellent) or wait another 8-11 months to fit into any lenders formula. Yes, I comment on a lot of these, but I am so pumped to get started, I am ready, and I am looking at every single option.
Whoo! Glad to be a part of that 20%! I had to watch it in between my classes for the day, but man really informative on this one Graham. Now I know how to plan out my real estate venture once I finish my refrigeration program next year. Hey, I would not mind you going on for an hour or even longer about this topic. Every bit of info helps! Thanks a bunch for today's lesson Graham.
Great advice! I bought a $900k fourplex almost two years ago with a 30 year FHA loan and only 4% down. The best part is I pulled retirement money out with zero penalties to pay the downpayment. Renters are not only paying the mortgage, they're building equity for me, and they're paying my retirement back. It's a win win win. More people, than realize, can do this.
Graham I made it to the end lol. I’m exiting the army in march and am looking at trying to become a real estate agent and enjoy watching all your videos it is really inspiring
You are truly an inspiration to me. I always knew real-estate could be extremely profitable, but no one ever went over step by step how to do it. I love everything you’ve said and I’ve been watching your videos non stop for the past few days. All day today at my “9-5” job, I’ve been working away listening to you through my bluetooth headphones. I was lucky enough to purchase a house when I was 22 years old (I’m 28 now). It was one of the best things I’ve ever done (especially since I got it when the market was at the bottom!) I’m also a big car guy so I built a shop complete with a lift behind my house since I love to work on and modify my cars. I love living here, but I really like your idea of buying a property capable of renting out to 2-3 separate tenants. So my plan is to save up some more money and try to purchase one of these multi-home properties. Instead of living in one of those spaces, I’ll just keep living in my current house and collect rent from an extra tenant which should be all profit.
I made it to the end. It may be repetitive but it’s good to hear over and over for me to be able to stay focus. I am realtor as well and i did a house hack on my first deal.
Learned about inflation in my economics class today and that real estate is affected positively by it. So this video came right on time thank you Graham
I absolutely love this “House hacking” video. It’s frustrating, our “Duplexes” are so different from yours. Your content is for sure food for thought 💭
Hello from Sweden! Love this video for its simplicity and ‘basic’ explanation with pictures and everything. I’m planning to apply this strategy over here. Cheers!
Coincidentally, I'll be doing a talk on this exact topic at our next London On FIRE meetup! Absolutely love house hacking, I honestly can't imagine living in anything other than at least a duplex (or bigger). I'll be moving from my duplex to my triplex soon! Mortgage at the triplex is $800, and the rent from the other 2 units will be over $1600!
Instead of putting 20% down on a property and still having to worry about paying the remaining 80% off, the better option would be to use your down payment and just buy a tax deed property. This is better option if you live in a tax deed state or don't mind being an out of state landlord. Another option worth considering is getting a section 538 loan from the USDA and being a landlord in a rural area. As long as you don't mind having your rents capped, you get dirt cheap loans for as long as 40 years. These loans are for 5 units or more and you don't have to live in them. If you do this in an area you can see yourself retiring in, you've got a place to live and by that time you can turn them into normal rentals.
You could also get an FHA loan, that way you could have a low down payment. For FHA loans you would have to live in the building, which you would be. Buy a 4 unit building and stay in one rent the others.
Well...apparently I went and did what you don't recommend on your first house hack. I didn't even know the term. I wouldn't say that I'm stuck, and I wanted a challenge, but it involved building out the basement into a rental space and adding overall square footage. I was primarily looking for a low-cost DIY that would give me bigger returns and some income stability after the initial investment. I don't have years and years for a real estate portfolio to mature, so my methodology should probably be different than someone starting in their 20s. I think this one will turn out o.k. for me, but it has definitely been more work and more $$ than I thought it would be.
This is such a great video. My first was a condo , I wish my first purchase was a multi family . If I only knew the homes in my neighborhood were going to skyrocket.. I'm in Brooklyn , Carroll Gardens and the brownstones are all well over a million, 2 million, keep going.....it's pretty crazy
Easiest way to invest in Real Estate? My initial thought was "it took Graham Stephan 15 minutes to tell us to buy a REIT?". I'm glad that wasn't the case :P I love the "House Hacking" idea & it's pretty much what I'm doing. I bought a 3 bedroom townhouse condo in 2009 with $16K down & added 1 more bedroom in the basement. I then rented out the 3 extra rooms. After I sold in 2014 I got a $114K cheque. Then I bought my current 3 bedroom ranch home in 2015 with $97K down & added 3 more bedrooms in the basement. Now I rent out the 5 extra bedrooms for a total of $3,335/month. With that sizeable cash flow I'm able to pay all my housing expenses & still have enough money to contribute $300/week into an S&P 500 index fund :)
Im not a pro in real estate but own 3 units. My best advice is stay home with your parents and save until you to pay 25% down on the unit. You will also need a minimum of $25 per sq feet to remodel the unit if it's not move in ready with zero structural issues. You will have to do the labor your self, so have your tools ready. You want a nice unit in a decent neighborhood for good clients. Crappy units attracts crappy tenants. There's really no short cut in the beginning unless you have inherited a ton of cash. About 5 units in later it should get easier. And that's my 2 cents.
When you have 3 properties or more you should you focusing on merging all your properties into a company, then use the company to borrow a large amount of money to invest in commercial buildings. Commercial buildings is where the real value of real estate comes magnified. But if someone's just starting out, stick with houses
Hey Graham great video once again! Quick question, What are your thoughts on mobile homes? I’m 19 and have been looking for an entry door into real estate with little money to start.
Jeremiah, at all costs brooks avoid mobile homes. They depreciate. You won't be able to grow your money with a mobile home. Put your efforts towards buying a duplex, triplex, or fourplex.
Awesome videos bro. Got out of all by credit card debt in less than a year and applied your advise from other videos. And now working on my downpayment for my first property.. thanks for these videos...
I am 17 and am looking forward to starting my real estate adventure as soon as possible. I come from a not well off family so money is a big issue, but I am studying right now to start making money in the stock market and hopefully in a couple of years I will have enough money and income history to "house hack". Are there any other tips you would give to young real estate investors?
I watched the end :) And I really like your videos and advice. I love working and making money, so I hope that I can succeed in doing these kinds of things.
Hi I have a question about front loading. I have heard that if you were to buy a house, let’s say $100,000.00. you make a down payment of $20,000.00. and you owe $80,000.00. Or you can purchase the house with $100,000.00 and make your first payment of $20,000.00 (instead of a down payment) you will owe overall thousands less. Have you tried this or heard of it? check the numbers. $100,00 house at 3.3% and a 20,000 down payment making the loan for $80,000. the interest will be $46,607. If you buy the home at $100,000 and on your second payment you pay $20,000 principal payment your interest is only $31,775 saving you $14,832, yes?
I admit that my first house I want is something to live in that is ready, but something that is easily "hackable". Like one was just recently renovated fully, and still within price range in this area. But it has a basement that is standalone ;) So yes, I wont be able to build equity right away on my own, but cash flow is built in really well. In a great area also. But I do want my second place to be a renovator because I do like the concept and I love to learn more. But for my first place, I dont want to stress since I already have a well paying job that keeps me busy. I just want a place to go home to and relax for now. Once I have that, it is easier to work more on another house knowing my own home isnt something I have to work on too.
craigistheman101 believe it or not if you try Paterson NJ u can find some low cost alternatives and section 8 is heavy out there. One of my buddies owns 4 multi family homes and is making a killing with section 8 and some TRA.
This is excellent advice. I also had a question for you Graham. I own a rental vacation property with 10 bedrooms by a lake in southern Utah. I can generate about $20,000 net income during the summer and maybe another 10K in winter. And I'm wondering about developing empty lots that I have there. Eight of them. I could develop for about $110 per square foot so that means a new $1000 sq ft vacation rental would cost about $110,000. The question is should I get a bank loan to develop now and try to beat the 3 new hotels which are building out there? Or should I just wait about 5 years and save up to develop a property all cash? What's your take on this...?
Can you really build brand new for $110,000? How long will that take? Seems like a good deal. If your numbers can be replicated I’d go for it. How much would it be worth worst case scenario and how easy would they be to sell in the event you needed cash?
Hey Graham! I’m really interested in beginning investing, but I was wondering if you could show how you manage all of the properties you own (tracking expenditures, managing bank accounts, keeping track of taxes, etc.). I’m not especially gifted at using excel, and I thought it would be beneficial to hear from someone who has legitimate, real-world experience. Thanks!
Hey Graham. I know this is an old video & you probably won’t see this. I saw this 2 years ago when I was 19 now I’m 21. Own my first duplex (house hacking). I wanted your thoughts on this. My plan is to buy my 2nd multi family property in the coming months via conventional loan. Then refinance my current property w/FHA loan turning it into a conventional loan then going to get my 3rd property as a FHA loan with a really low down payment. Any feedback would be awesome. You’re the best bro!! You helped change my life!
I thoroughly enjoyed this. There is so much for me to learn here. Right now I'm working outside the US, taking advantage of cheap living and no taxes (up to a point). But when I return to the US, I absolutely am going to do this. The next thing I'm curious about is how you can quickly find tenants - got any pointers on that?
Would you consider doing a video on drawing up contracts between landlords and renters? Should a landlord hire a realtor, lawyer, etc for this, or are there "canned" contracts available online that are any good? What kinds of protections should an investor look to get out of a contract, and what is excessive? Thanks!
Hey Graham, curious if you could do a Video explaining your process for paying off your Rental Properties. Did you reinvest the Cash flow back into paying them off?
Graham this may be a stupid question but the closer I’m getting to buying a house the more I’m worrying about the smaller questions. How do you deal with utilities with your tenants? Do you make it part of your monthly rent, or do you have them pay for utilities? Thanks for the video and yes I’m part of the 20%😂 I always am.
Thanks Graham your videos are very easy to understand and knowledgeable for guys with zero knowledge on real estate like me. Hopefully I will be able to do the same like you do. Respect from India ☺
Looking for advice. Got a condo in chicago that I purchased 2 years ago for myself. Now I’m about to close on a house where I will move to. Now my options are to sell the condo and profit $40k and be done with it. OR rent it out and I’d profit about $300-400 a month after all expenses paid (mortgage, hoa, tax, etc).
Graham Stephan on the surface $40k sounds a lot better than just $3-400/month and you can never predict the prices of the real estate. I don’t ‘need’ the money right now, but a few hundred bucks doesn’t seem like much as far as the return on money invested (renovated when I purchased the property 2 years ago). Do you look at it more like, ‘I can always sell, might as well have money make money even if it’s just a few hundred bucks.’?
Hi Graham! Made it to the end! I really look forward to implementing this strategy once I start investing in real estate. I'm currently 22 living in the San Francisco Bay Area and like you said, prices are ridiculous out here for someone like me. I'm seriously looking to move out of this state in order to invest into these types of appreciating assets. In your opinion, what do you think about the state of Washington for real estate? Looking forward to your response. PS: love the videos! You're part of the reason I am excited for my future through the knowledge you've afforded me. Cheers!
In an ideal situation say you have the money in full, would you get a mortgage? Or would you use the mortgage for leverage to buy another property and pay the minimum on it till its paid off? Basically multiple properties with mortgages. What would you say is the quickest and fastest way to build a portfolio if you already have a large sum of money?? Thank you for sharing your time and wisdom, i really appreciate it! Currently I'm invested in crypto but would like to use those profits in a few years time towards real estate purchases.
Graham, Great videos, I really like the for beginners approach and how you do not assume everyone has been doing real estate for almost 10 years like yourself there for you explain things the correct way. Did you go for the lambo? or the Mercedes?
Hey guys! I apologize if this one might seem sliiigghtlly repetitive for those who have watched some of my older videos on this topic. When I’m asked “what’s the easiest way to invest in real estate?” this is it. This one goes a little more in depth in terms of what I look for and strategies to implement. The concept is the same, it doesn’t really change - but sometimes repetitiveness helps it sink in, plus with a little more in-depth detail thrown in.
EddyZamora you could always ask your dad to use his tax return and just tell him you have the money for a down payment.
I am also a real estate agent down in San Diego area. How ever this profile I’m on right now is just my gaming channel.
Graham Stephan how do you organize your videos? Do you write down what you want to talk about before you do the video?
LOVE it!!!
HELLO MESSAGE MR GORTEZKA LARSON FOR REAL AND LEGIT HACKING JOB THROUGH HIS CONTACT AND THANK ME LATER ,,,,>, 701 1725... HES FROM USA
I like the video but question is this how there are people who has a lot of properties and they dont pay taxes like donal trump and other rich people you should tell us that also 😏
I bought my First 4-unit property in Aug 2017. It now cash flows about $1150 per month. This is just the beginning.
Well done man!
Good job
my friend what was your down payment?
Best regards
(love the knowledge Graham)
Dewayne Smith congrats
Miguelon it was 75% LTV. Spent about 56k all in. 13800 / 56000 = .246 or 25% Cash on Cash return. That same money made like 60 bucks for 1 yr in the bank. Mike drop.
"Kings lose crowns, Teachers stay intelligent."
Knowledge is power, I love learning from people like you.
Thanks so much!
I basically started exactly what you're talking about in December. I'm a 25 year old civil engineer who's hoping to quit the rat race with the help of multiple streams of income
Awesome!! The more the merrier!
Same here man the rat race is not for me
How’s it going for you man
Did this last year, haha. This is legit. I was able to get 5% down even.
A couple more suggestions:
A mortgage broker was able to help me out a lot. Have a buyer's agent! The realtor selling the house works for seller, not the buyer so it's good to have someone in your corner who knows what they are doing. And don't forget about closing costs as well, they can be as much as your down payment. Another thing that I did was rent half of my unit to a roommate as well for an even bigger income.
Good luck all!
There are a couple things to keep in mind before doing this. The tenants you have will be people you have to live with and deal with on a regular basis, so you must choose them wisely. Also, buying this kind of property, you need to have a good stable paying job to take care of the monthly expenses, which can be very costly. As well, you are essentially locking yourself down to one place for the time being until you have enough money to move out, so you have to be committed to living there before you decide to invest this way.
Kind of. You’ll need money for repairs, but that means you’ll set aside some of the rental income each month. Doesn’t necessarily need to come from your job unless something big comes up which isn’t going to happen often. As for being locked in, you’ll be locked in for 12-18 months but it’s also no different than signing a one year lease on an apartment. After that you can always move out and do whatever you want!
Graham is a genius. Thanks for the free information!(:
You got it man! Not quite genius but I’ll take it haha
EdVentures
No it’s not free after u start making money he gets 10%
I am making my modest steps in real estate ( i am in my early 40s) and find your videos heavensent. I admire you for listening to your own guidance while still being so young ( when you were starting) also thankful for saying things like ”start small and learn as you go” ”it doesn’t happen overnight, it takes time”
Your channel is so informative and inspiring.
Best wishes from Estonia!
Thanks so much!!
i tried smashing the notification button by my computer screen has a crack now
You’ll need to get that replaced before the next video drops. More smashing buttons required! 😜
lol!
Tom Biber hahaha
Smash. Don't " Hulk Smash" :)
When are you going to do a house tour?
To everybody complaining about the initial cost. You do not have to buy in L.A.! There's plenty of affordable markets that will give you great cash flow. In the USA you have Atlanta, & Indianapolis, etc. In Canada the Maritimes and Ottawa are great options. You can get the 10% down quickly if you're buying in these markets.
Agreed. California/LA is just stupid expensive for what it is. I'm envious of people who can do this for $350k :(
Graham Stephan Indy has solid rental properties that you can buy for 50-60k. I'm looking at some properties in Eastern Canada selling around 80k Cad that will return about $800-900 a month in rent easily.
That's insane cash flow!
Canada is the best place to live.
Reno freaking Nevada. They’re currently having a housing shortage of almost 100,000. Tesla factory, Apple iCloud ect all moving to their massive industrial complex
Admittedly I don't watch all your vids but when I watch I watch to the end. Lots of good things in this one.
Thanks so much man! Which ones do you watch the most often?
Graham Stephan it's random. Most of the news if I have time but also some the earlier ones like your first ones. I get up at 330 am and don't get to bed most of the time till 10 pm. The bids get put on the back bunner.
I do enjoy them and learn from as I'm also tring to learn what i can to get started till I get the down payment saved.
I also watch a few others and been reading up in my spare time.
Later
Awesome video! You have me hooked. I usually lose interest fast but you kept me wanting more because you are straight to the point honest and a fast talker. I didn't even realise it was 14 minutes long. Great job!
Thanks so much!
I really like your videos. Very straight forward!!! Thank you very much. Keep it up!! I am finishing nursing school in Miami fl, But I was thinking about moving in to Las Vegas and start saving to invest in real state. However, I have 3 questions for you:
1- is it too more expensive buying a multi-family property outside the state you are living in? If so, how much expensive ?
2- I was thinking in buying a multi-family property in Orlando fl before moving out fl. It is that ok money wise ?
3- when you buy a multi-family property the cash flow you put it towards he principal or you save it?
I’m sorry for the ignorance, I am sooo brand new on this topic. My next goal after graduating is investing in real state, so I am trying to educate myself as much as I can before staring.
Thank you in advance
Maria
What’s up Graham, I’ve been watching your channels (yes plural haha) for almost a year now. My goal was to get to zero (no debt). I just got there today. Now my next step is saving for my down payment. By the end of 2021 I plan to have my first house hacked unit. Thanks for the information. Keep it coming
I’ve watched this over and over to make sure I know exactly what to do!
Damn Graham remember when you started your channel and now you have over 100k thats crazy man! Congratz !🔥🔥
Thanks so much!! Yeah it's been a crazy journey!
Now 2.8 lol
Hey Graham. I just wanted to share my situation real quick with you. Been a loyal sub since literally your 1st or second video lol.
Im 22yo and have been saving alot of money from my job since i was 18. Btw i dislike my job ALOT but it pays pretty good so im kinda stuck(for now). Im in the process on closing on my first house or property ever which is a duplex :). I believe it or not already have about 50k equity on the property. Im going to live in one amd rent out the other for about 2- 3 years, hopefully save even more money from the renter paying most of my bills, then to buy another multi family maybe a 4 or more a couple years later and quit this horrid job im at.... factory job... just wondering if this sounds like a solid plan to you graham i love your videos and have learned alot from you and sometimes worry ill never be able to do real estate full time. Ive been wanting to do it since high school lol. Much love -JT
That sounds like a really great plan. Congratulations! How’d you find a spot with that much equity? Well done! Just hold it forever!
Bullfrog life! I’m so proud of you! You weren’t born to work at some job you hate. Real estate is obviously a fire burning within you so let that fire burn and burn bright! I don’t know a lot about real estate, I learn most from Graham, but from what master Graham has told me, your plan seems legit. Don’t doubt yourself. Your so young and it’s amazing your thinking about this now. So many people wish they could have more time and you do. Get rockin!
Do it while your young and not married with kids
Also Ben Mallah
Buy fix sell
Us the profit to pay off the bank and fees.
Have a bigger down payment bigger loan
Buy fix sell.
Location is everything
Should make a video and show us one of your example calculations before you buy a property, mainly including the specifics of how you calculate the renovation costs and how you anticipate what equity you'll add by those renovations BEFORE you buy
Graham I am a 17 year old entrepreneur and I just gotta say I love you man you helped me make enough to found my dream lifestyle as well as invest into my bussiness
One piece of the 20% here. Your content has been helping me push past the learning stage (Few years of personal barriers) to finally start making deals. (Look at me commenting on another youtube video, on a roll eh!) Building buyers list in BC Canada now, starting with wholesale deals(That ARV and MAO money for the cash buyers), a team of friends and various connections in trades and restoration cleaners for when I finally begin investing in my own properties. Can't wait to Make Life Better as you do!
🙌🏼
Thank you. I have wanted to invest in real estate for a year now and I'm also considering becoming a real estate agent. I'm only 16 and I can't wait to get out and start investing. Everyone around me tries to discourage me saying I'll be broke and homeless. However with every video of yours I watch, I know I'm making the right choice. Your channel is a hidden gem and probably even changed my life for the better. Once again thank you. P. S. 20% squad every video for life
🙌🏼🔥
You always have to set yourself up for 1-2 years before you can get into real estate investment, so these videos are still good, but I am at the point where I need either a cosigner (just for the income I make, everything else is excellent) or wait another 8-11 months to fit into any lenders formula. Yes, I comment on a lot of these, but I am so pumped to get started, I am ready, and I am looking at every single option.
Whoo! Glad to be a part of that 20%! I had to watch it in between my classes for the day, but man really informative on this one Graham. Now I know how to plan out my real estate venture once I finish my refrigeration program next year. Hey, I would not mind you going on for an hour or even longer about this topic. Every bit of info helps! Thanks a bunch for today's lesson Graham.
Thanks so much man, so happy it’s helpful! Haha I gotta do a podcast so I can do long topics like that.
Great advice! I bought a $900k fourplex almost two years ago with a 30 year FHA loan and only 4% down. The best part is I pulled retirement money out with zero penalties to pay the downpayment. Renters are not only paying the mortgage, they're building equity for me, and they're paying my retirement back. It's a win win win. More people, than realize, can do this.
Nice!!
Graham I made it to the end lol. I’m exiting the army in march and am looking at trying to become a real estate agent and enjoy watching all your videos it is really inspiring
You are truly an inspiration to me. I always knew real-estate could be extremely profitable, but no one ever went over step by step how to do it. I love everything you’ve said and I’ve been watching your videos non stop for the past few days. All day today at my “9-5” job, I’ve been working away listening to you through my bluetooth headphones. I was lucky enough to purchase a house when I was 22 years old (I’m 28 now). It was one of the best things I’ve ever done (especially since I got it when the market was at the bottom!) I’m also a big car guy so I built a shop complete with a lift behind my house since I love to work on and modify my cars. I love living here, but I really like your idea of buying a property capable of renting out to 2-3 separate tenants. So my plan is to save up some more money and try to purchase one of these multi-home properties. Instead of living in one of those spaces, I’ll just keep living in my current house and collect rent from an extra tenant which should be all profit.
Hope you’re doing well!! How’d it all go? 😄
I'm part of the 20%. I always watch your videos all the way through!!
I made it to the end. It may be repetitive but it’s good to hear over and over for me to be able to stay focus. I am realtor as well and i did a house hack on my first deal.
Super appreciating your videos. Lots of love from Canada.
Learned about inflation in my economics class today and that real estate is affected positively by it. So this video came right on time thank you Graham
I made it all the way to the end. You're the best.
Consistently part of the 20%. 👍😎
WOOHOO! Thank you!
Yeah
I just wanted to let you know that your videos are really helpful. Im 16 and real estate really excites me, so I'm trying to learn everything I can
Thanks so much Adam! Happy it's helpful!
I absolutely love this “House hacking” video. It’s frustrating, our “Duplexes” are so different from yours. Your content is for sure food for thought 💭
Yes. I'm subscribed. Yes Im doing this. Yes I gave this a like.
YESSS! Thank you!
You're welcome! Just keep pumping this quality content!
Hey man im a 21yo fresh outta college and i take alot from your vids. Thanks for posting.
Thanks so much!
Hello from Sweden! Love this video for its simplicity and ‘basic’ explanation with pictures and everything. I’m planning to apply this strategy over here. Cheers!
Thanks man! Happy it’s helpful!
Graham needs to be at 1 million subs by the end of this year!
THANK YOU!!
Coincidentally, I'll be doing a talk on this exact topic at our next London On FIRE meetup! Absolutely love house hacking, I honestly can't imagine living in anything other than at least a duplex (or bigger). I'll be moving from my duplex to my triplex soon! Mortgage at the triplex is $800, and the rent from the other 2 units will be over $1600!
AWESOME!!!
Instead of putting 20% down on a property and still having to worry about paying the remaining 80% off, the better option would be to use your down payment and just buy a tax deed property. This is better option if you live in a tax deed state or don't mind being an out of state landlord.
Another option worth considering is getting a section 538 loan from the USDA and being a landlord in a rural area. As long as you don't mind having your rents capped, you get dirt cheap loans for as long as 40 years. These loans are for 5 units or more and you don't have to live in them. If you do this in an area you can see yourself retiring in, you've got a place to live and by that time you can turn them into normal rentals.
You could also get an FHA loan, that way you could have a low down payment. For FHA loans you would have to live in the building, which you would be. Buy a 4 unit building and stay in one rent the others.
Keep the great videos coming Graham.
Well...apparently I went and did what you don't recommend on your first house hack. I didn't even know the term. I wouldn't say that I'm stuck, and I wanted a challenge, but it involved building out the basement into a rental space and adding overall square footage. I was primarily looking for a low-cost DIY that would give me bigger returns and some income stability after the initial investment. I don't have years and years for a real estate portfolio to mature, so my methodology should probably be different than someone starting in their 20s. I think this one will turn out o.k. for me, but it has definitely been more work and more $$ than I thought it would be.
This is such a great video. My first was a condo , I wish my first purchase was a multi family . If I only knew the homes in my neighborhood were going to skyrocket.. I'm in Brooklyn , Carroll Gardens and the brownstones are all well over a million, 2 million, keep going.....it's pretty crazy
Who knew they were going to go up as much as they did! It’s been crazy over the last few years!
I watched this video till the end. I love everything you said and thank you for giving all this priceless information for free.
Thanks so much!
Easiest way to invest in Real Estate? My initial thought was "it took Graham Stephan 15 minutes to tell us to buy a REIT?". I'm glad that wasn't the case :P
I love the "House Hacking" idea & it's pretty much what I'm doing. I bought a 3 bedroom townhouse condo in 2009 with $16K down & added 1 more bedroom in the basement. I then rented out the 3 extra rooms. After I sold in 2014 I got a $114K cheque.
Then I bought my current 3 bedroom ranch home in 2015 with $97K down & added 3 more bedrooms in the basement. Now I rent out the 5 extra bedrooms for a total of $3,335/month.
With that sizeable cash flow I'm able to pay all my housing expenses & still have enough money to contribute $300/week into an S&P 500 index fund :)
Im not a pro in real estate but own 3 units. My best advice is stay home with your parents and save until you to pay 25% down on the unit. You will also need a minimum of $25 per sq feet to remodel the unit if it's not move in ready with zero structural issues. You will have to do the labor your self, so have your tools ready. You want a nice unit in a decent neighborhood for good clients. Crappy units attracts crappy tenants. There's really no short cut in the beginning unless you have inherited a ton of cash. About 5 units in later it should get easier. And that's my 2 cents.
I think more people should stay at home and save money longer than move out at 18-20...those few extra years early on make such a big difference!
What the hell you should have way more viewers! What is this? The content is perfect. It's like there's something missing...
Haha thank you! Just make sure to hit the like button and subscribe 😜
This video is very helpful for ever new Investor in real estate YOUR THE BEST GRAHAM!!!!!!!!!!!!
Thanks Daniel!!
Great video as always. Keep them coming. Always a pleasure. Thank you.
Thanks!
I love your content brother. Happy new year to you. Keep going strong.
Thanks!! You too!
The more details the better imo. Great vid Graham.
Thanks so much!
This is great advice for a young person wanting to become a homeowner or also someone coming out of a separation or divorce.
Hopefully more the first scenario :)
This has been in my plans for the past year now.
Still in the working and savings mode.
Good Stuff!
Thanks
Thanks so much! Good plan to have!
Great video! Like the way you kept it nice and simple to understand. Easy enough that it seems like anyone can invest into real estate. Thanks!!
Thanks!!
Another great video! Keep it up Graham!
Thanks dude!
Learned a lot from this man! Thanks for the recommendation Graham :)
Thanks for watching!
Good stuff, Every video I watched of yours, I make it to the very end
I really appreciate it!
Will this help me become independently financially independently?
I started 137 days ago with only $25,610 and right now I am reaching $140,000! Woah woah woah woah woah woah woah!!!!
B the Lee Yes it will. NUFF said.
house hackiiiiiiiiiiiiiiiiiiinnnnnnnnnnnnnngggg!
Graham Stephan Please explain what you started with ? :)
@@GrahamStephan lend me a tenner 🤣
When you have 3 properties or more you should you focusing on merging all your properties into a company, then use the company to borrow a large amount of money to invest in commercial buildings. Commercial buildings is where the real value of real estate comes magnified. But if someone's just starting out, stick with houses
That's pretty smart. Thanks
Wot, watched all the way until the end! Great video.
Hey Graham great video once again! Quick question, What are your thoughts on mobile homes? I’m 19 and have been looking for an entry door into real estate with little money to start.
Jeremiah, at all costs brooks avoid mobile homes. They depreciate. You won't be able to grow your money with a mobile home. Put your efforts towards buying a duplex, triplex, or fourplex.
If you guys are just starting out just do what Graham says. The down payments get easier and easier as the cash starts flowing in.
Yes!!
Love your tips and advice bro. You are one of my inspirations to start real estate.
Thanks so much 🙌🏼
This was the most helpfull youtube video i have ever watched! THANK YOU!
Thank you so much!
Graham you are awesome man! Thanks for the knowledge
thanks for watching!
Awesome videos bro. Got out of all by credit card debt in less than a year and applied your advise from other videos. And now working on my downpayment for my first property.. thanks for these videos...
I am 17 and am looking forward to starting my real estate adventure as soon as possible. I come from a not well off family so money is a big issue, but I am studying right now to start making money in the stock market and hopefully in a couple of years I will have enough money and income history to "house hack". Are there any other tips you would give to young real estate investors?
Next goal is 200k subs! Let's make it happen! Great stuff as always, Graham
Thanks so much!
I watched the end :)
And I really like your videos and advice. I love working and making money, so I hope that I can succeed in doing these kinds of things.
thanks so much!
Hi I have a question about front loading. I have heard that if you were to buy a house, let’s say $100,000.00. you make a down payment of $20,000.00. and you owe $80,000.00. Or you can purchase the house with $100,000.00 and make your first payment of $20,000.00 (instead of a down payment) you will owe overall thousands less. Have you tried this or heard of it?
check the numbers.
$100,00 house at 3.3% and a 20,000 down payment making the loan for $80,000. the interest will be $46,607. If you buy the home at $100,000 and on your second payment you pay $20,000 principal payment your interest is only $31,775 saving you $14,832, yes?
Wooohooo more valuable info as always!! Thanks bro
Thanks for watching!
I admit that my first house I want is something to live in that is ready, but something that is easily "hackable". Like one was just recently renovated fully, and still within price range in this area.
But it has a basement that is standalone ;) So yes, I wont be able to build equity right away on my own, but cash flow is built in really well. In a great area also.
But I do want my second place to be a renovator because I do like the concept and I love to learn more. But for my first place, I dont want to stress since I already have a well paying job that keeps me busy. I just want a place to go home to and relax for now. Once I have that, it is easier to work more on another house knowing my own home isnt something I have to work on too.
Good Stuff, I'm currently finishing up college but I hope to be doing this my self in the next 5 to 7 years.
Awesome!! Once you start you won’t wanna stop!
I house hacked my First three family house with 3.5% down buying in Elizabeth, NJ with an FHA loan.
Well done man!
Elizabeth is a good place to do a house hack because homes there aren't crazy expensive. Well done!
I’m hoping to look around the Hackensack area in the next few years
craigistheman101 believe it or not if you try Paterson NJ u can find some low cost alternatives and section 8 is heavy out there. One of my buddies owns 4 multi family homes and is making a killing with section 8 and some TRA.
Especially with Paterson NJ the home prices are realtively low but the rents stay pretty high. Just don't buy in a warzone (Paterson has many)
Man! I could did this year's ago and would be set now, but the good thing is that I know now and don't make the same mistake
Thanks!! Never too late!
This is excellent advice. I also had a question for you Graham. I own a rental vacation property with 10 bedrooms by a lake in southern Utah. I can generate about $20,000 net income during the summer and maybe another 10K in winter. And I'm wondering about developing empty lots that I have there. Eight of them. I could develop for about $110 per square foot so that means a new $1000 sq ft vacation rental would cost about $110,000. The question is should I get a bank loan to develop now and try to beat the 3 new hotels which are building out there? Or should I just wait about 5 years and save up to develop a property all cash? What's your take on this...?
Can you really build brand new for $110,000? How long will that take? Seems like a good deal. If your numbers can be replicated I’d go for it. How much would it be worth worst case scenario and how easy would they be to sell in the event you needed cash?
larry scott I'll email u later today
Hey Graham! I’m really interested in beginning investing, but I was wondering if you could show how you manage all of the properties you own (tracking expenditures, managing bank accounts, keeping track of taxes, etc.). I’m not especially gifted at using excel, and I thought it would be beneficial to hear from someone who has legitimate, real-world experience. Thanks!
Hey man! I don’t do a good job at it, everything is basically just a Microsoft word document haha.
No worries! Thanks anyway
Thanks for the advice Graham, for now, I will be saving money, so I can start investing in real estate!
awesome!!
Hey Graham. I know this is an old video & you probably won’t see this. I saw this 2 years ago when I was 19 now I’m 21. Own my first duplex (house hacking). I wanted your thoughts on this. My plan is to buy my 2nd multi family property in the coming months via conventional loan. Then refinance my current property w/FHA loan turning it into a conventional loan then going to get my 3rd property as a FHA loan with a really low down payment. Any feedback would be awesome. You’re the best bro!! You helped change my life!
Smashed the like button so hard almost broke my thumb, nice Graham!!
Hahaha thanks bro!!
I thoroughly enjoyed this. There is so much for me to learn here. Right now I'm working outside the US, taking advantage of cheap living and no taxes (up to a point). But when I return to the US, I absolutely am going to do this. The next thing I'm curious about is how you can quickly find tenants - got any pointers on that?
Craigslist is awesome here for finding tenants - never a problem finding someone quick!
Hello Mr. Hraham, thank you for the content. That actually makes sense. I will like to try doing something like that next year.
Awesome!
I know it's late, but as a contractor I can say adding living space to a home is rarely worth it
Your videos are great. The nuts and bolts of Robert K's Rich Dad Poor Dad.
Would you consider doing a video on drawing up contracts between landlords and renters? Should a landlord hire a realtor, lawyer, etc for this, or are there "canned" contracts available online that are any good? What kinds of protections should an investor look to get out of a contract, and what is excessive? Thanks!
Hey Graham, curious if you could do a Video explaining your process for paying off your Rental Properties. Did you reinvest the Cash flow back into paying them off?
Graham this may be a stupid question but the closer I’m getting to buying a house the more I’m worrying about the smaller questions. How do you deal with utilities with your tenants? Do you make it part of your monthly rent, or do you have them pay for utilities? Thanks for the video and yes I’m part of the 20%😂 I always am.
They will pay utilities. Almost always. Unless it's on one meter, in which case that's your cost!
It wasn't a stupid question, if you ask me. Very wise. #WhatAThinker
Thanks Graham your videos are very easy to understand and knowledgeable for guys with zero knowledge on real estate like me.
Hopefully I will be able to do the same like you do.
Respect from India ☺
Thanks so much!
Love this vid.. watched whole thing.. liked and faved it. Thanks man
Thanks so much!!
Good video man always learning with you
Glad it’s helpful!
Thanks for telling me in the first 10 seconds of the vid, saved me a lot of time
Time = money 😏
GRAHM YOU ALWAYS GOT SOME GOOD VIDEOS MY KEEP UP THE GOOD WORK
THANK YOU FRANK!
Thanks for this! My fiance and I want to invest in real estate eventually and your videos have really encouraged us
Looking for advice. Got a condo in chicago that I purchased 2 years ago for myself. Now I’m about to close on a house where I will move to. Now my options are to sell the condo and profit $40k and be done with it. OR rent it out and I’d profit about $300-400 a month after all expenses paid (mortgage, hoa, tax, etc).
Think of it this way. Would you rathe have $40k or $300-$400/mo? That’s a really good return on $40,000....I’d just keep and rent it out!
Graham Stephan on the surface $40k sounds a lot better than just $3-400/month and you can never predict the prices of the real estate. I don’t ‘need’ the money right now, but a few hundred bucks doesn’t seem like much as far as the return on money invested (renovated when I purchased the property 2 years ago). Do you look at it more like, ‘I can always sell, might as well have money make money even if it’s just a few hundred bucks.’?
This is gold my man, thanks!
Thanks so much!
Hi Graham! Made it to the end! I really look forward to implementing this strategy once I start investing in real estate. I'm currently 22 living in the San Francisco Bay Area and like you said, prices are ridiculous out here for someone like me.
I'm seriously looking to move out of this state in order to invest into these types of appreciating assets. In your opinion, what do you think about the state of Washington for real estate? Looking forward to your response.
PS: love the videos! You're part of the reason I am excited for my future through the knowledge you've afforded me. Cheers!
In an ideal situation say you have the money in full, would you get a mortgage? Or would you use the mortgage for leverage to buy another property and pay the minimum on it till its paid off? Basically multiple properties with mortgages. What would you say is the quickest and fastest way to build a portfolio if you already have a large sum of money?? Thank you for sharing your time and wisdom, i really appreciate it! Currently I'm invested in crypto but would like to use those profits in a few years time towards real estate purchases.
Graham,
Great videos, I really like the for beginners approach and how you do not assume everyone has been doing real estate for almost 10 years like yourself there for you explain things the correct way. Did you go for the lambo? or the Mercedes?