His tenant is paying for the loan. Paying off a loan given at such a low interest rate is a noob move. He knows better than to use cash to pay off a loan early. He will instead invest it at an average of 7 percent compound interest and let his tenant pay the loan over time. :)
@@JV-mk3bl You are correct that you don't want to tie up your money in real estate when interest rates are low. Unlike the average Joe, Graham's goal wasn't to buy this place to live in it, or even flip it. He saw it as rental property. He probably needs tenants willing to pay $4K/month to break even. Being a landlord is too much work for most people. Title should have been "How I got all of my money out of a rental property" but then no one would have watched.
how i started a business with 0$ : 1. started a business with 600k 2. business made me about 10k a month 3. after 5 years it paid itself and now my business costs 0$
this is legit the problem with rich peoples idea of having no money. they see 0 dollars as the moment after they invest into a business. not actually having 0 to work with.
you see the haters will say "graham you had to take in the oxygen to return gas to the outer world, but you gotta understand that the net exchange in volume of the gases is 0, so I obviously can live without breathing"
Yes watching the get quick rich schemes while watching a video of the same b.s. lol.... This guy might not be as much of a scammer as the others but, his still no choir boy when it comes to sharing how to make money that should be apparent to anyone seen the title verse the content that he's giving.
@@woulfe42 And the whole time he rails against those that re-package information already out there for the world to see while.....he.....well,......re-packages information already out there for the world to see. He says he's a licensed real estate agent and he bought this property just outside Los Angeles. Anyone can go to the California Bureau or Real Estate (CA BRE) and do license look up (like I just did) and there's no one licensed in CA named Graham Stephans. Or Stephan Graham. Or any sort of combination of of spellings, Steve, Steven, Stephan, Steph - none. Except for within his own mind, does this guy even exist?
Step 1: Become a bricklayer. Step 2: Steal one brick everyday. Step 3: After a year or later, you'll have the experience and materials to build a house for free.
I mean, it was 0$ at the end... I think this was extremely informational on tips to buy a house so I was happy to watch and take notes and now look for a house.
@@bigv69er IT IS A RENTAL INCOME HOUSE. And rents are almost always more than mortgages. Say he pays $1400 mortgage while renting it for $1750 a month. So still free ;)
He really just explained why Cash Out Refinance is a good strategy when property values are increasing. Normally I'd ask him why not just sell the property outright, but if this is a rental he can't do that. So instead of letting that money sit in the property and do nothing, he took it out and can invest in other things. His only risk is that instead of selling outright, he takes the refinance, the property value declines, and he's left underwater on his loan.
Which is almost guaranteed to happen in the coming recession. Reckless really, because he would know that given the uncertainty lead to a better interest rate.
A trick I used when buying my first home was I buying it from my landlord. Because I was renting it and already in the home I had the leverage to offer about $25,000 less than market value because I knew he wouldn't have to pay realtor fees nor deal with a vacant house for potentially months if he put the house on the market. I had to play hardball but ended up with $20,000 under market value.
Max Maher I'm hoping to do the same thing. Out of everything Graham said in the video, the most important part to me was when he talked about his offer to get the house. He offered no hassle purchase (Meet Kevin talked about this too in a way with a direct to owner check and if he walked away the owner keeps the money). But you gotta really know how to read a building for value (and I don't 😂 not yet anyway) I'm in a 4 apartment building with a store front in NYC so it might be hard but I prob go for it. Plus the owner owns the building outright so he could be the bank if he wants. For him he knows he gets an immediate deal, and I get an affordable building (well for NYC anyway).
He forgot to mention that he rents out the other side of the duplex which pays his mortgage loan, home insurance and other fees for him. So as long as he has a tenant there that’s $0 out of pocket for him
@@justicewarrior9187 He never said it cost $0 to start it. Let me know if you figure out a way to. purchase a home for $0 though, that would be great. So far this is the best idea I've ever seen in terms of home owning.
Can you document/ vlog the next time you buy a house, like from beginning to end. I know that’s a major request but it would help a lot, just to see your thought process and see how you sift through your houses, and how you negotiate deals, etc.
Basically from how I understand it is: 1) Have some down payment. 2) If you can find a good deal, buy it, remodel if need, then find tenants to pay for it. 3) Refinance later with a lower rate, and if the new appraisal finds the house appreciates, you have equity and some $ differences. 4) Just have tenants pay for it. You owe the house at the end while the mortgage is being paid by someone else. It is a paper game. The trick is getting a good property in an area that will have the property increase appreciation, this helps minimize the expends.
@@GamerGuy51 he did not have well off parents...he was on his own from 18 onward with no help from parents. Stop spreading false information just because you think someone can't be successful from their own efforts.
Right, especially when the real estate prices are SKY-ROCKETING in the L.A. area. He said, that within a YEAR the value of the property increased with 100,000+ dollars (+15%). Imagine what the property will be worth in 30 Years (when the mortgage is paid in full). To put into perspective, the playboy mansion was bought for 1,1 million dollars in -79 and 45 years later sold for 100 million dollars. Of course, it's a one of a kind property but just imagine how much this one it would cost. Wouldn't be surprised if it cost at LEAST 5-10 million by then.
@@latengocomoburro That's why he said he spent 6 months researching what area to buy in. He noticed the surrounding developments and then sought out an under priced home. That tactic can be applied anywhere. Over time all real estate increases in worth. Even my house is worth more then it was BEFORE the 2008 crash. Also he house would have to lose over $365k in value for him to take a loss. That's highly unlikely to happen and then permanently stay that way.
Yep me. But it does bug me he doesn't actually "OWN" it for $0. He'll be paying that mortgage for decades, and will pay a good chunk in interest for that privilege. As far as I'm concerned, you don't "OWN" something unless you can never again pay a cent and it won't be taken from you... i.e, the t-shirt I'm wearing or the used car in my driveway I bought for cash. Anything you're making payments on does not count as ownership.
@@dangrec1 hes just doing it in a financially smart way that house isn't sitting there he will rent it out for more then the payment so he will make even more off it. & hes free to invest his cash elsewhere. his title is a bit click baity though.
That Tesla Video 😩😩😩 😂 everybody was triggered man listen! But he still made a good point that if you know how to work it, you can technically pay less for something. Same with this video. He put in 240k and in 2 years got his 240 back out PLUS he still owns a money generating property.
it is not difficult to understand. His first round is to fix up the property to boost up its value and then 2nd round is that his property surged in value due to the demand with interest rate went lower than before. As long as your house value increases, you can refi your house with a loan bigger that covers your previous loan with the delta to your pocket. Now the delta from loan gets him back the money he put in and then he rented out the property to cover his mortgage.
@David McKee Sorry sir, I think you missed my point. Remember Robert Allen wrote a book about "Nothing down"? He brought a news reporter with him and flew to Los Angeles and purchased 3 homes in the same day with no money down. Besides, he got money back from the 3 deals. This is what I mean a real " buy a home with $0". Of course, after the financial crisis, government has tightened the rules of borrowing. Nothing down is only a dream now unless you can borrow money from the private lender at a reasonable rate. Finally you can also make money with your hard labor work or from social media like UA-cam with your intelligent creations.
@David McKee Thank you sir for confirming that the title of this UA-cam is misleading. Its intention is to attract more viewers, subscribers and comments. It takes money to buy a house to make money and refinance your money back.
Andrew Tsang Facts💯 Robert G Allen acquired properties with actual creative financing and NO BANK LOANS. I thought Graham was going to say he did something without a initial investment of capital (Seller Financing, Subject To, Lease Option, etc.)
I like the idea but to explain this to those who don't understand. This isn't a net income situation, it's purchasing a property at lower than market value, then refinancing for a bigger loan from the bank (possibly lower interest) and now using that property as collateral. This allows you to get back out the inital down payments/costs invested into that property. Do it only if you understand what you're going to do with the difference, otherwise you're better off just paying down your loan for most nonreal estate people.
Very well said. This makes sense because I can reinvest into other areas at a higher return than I borrow for 30 years! If the money did nothing, or I'd spend it on cars and penthouse apartments...then it wouldn't work.
Sorry if I'm misunderstanding, but even with the better interest rate aren't you still going to end up paying the bank more money over the life of the loan by refinancing for the higher amount? or is that just an accepted loss because the money will be used in better places elsewhere?
@@jaytree well no I dont see that as a problem. Thats a valid strategy, accepting losses when money can be reallocated towards something that will yield greater results. Ultimately he got his return investment, probably pays a minute amount more per month and has a nice property that is generating money, so yes he did make money. My comment was more me looking for clarification
Graham! Pleased to say I just crossed the 335 subscribers mark on my UA-cam channel in my FIRST MONTH after taking your UA-cam Creator Academy program. For anyone reading this right now who is on the fence about buying it... BUY IT. One of the best investments I've made in a long-time and put me on the right path on Day 1 with my UA-cam channel. PS - Loved your last video where you made over $100k last month from YT, def. the motivation I needed to keep pushing forward. Keep doing all you do, Graham. You're the man!
@@GrahamStephan Always covering your bases, love it. Really enjoyed your Bitcoin video last week Graham. Long live Bitcoin!!!!!! hahaahah (but DYOR, of course!!)
@@WorkHardBeNice now throw in insurance costs of the us and you're left with around the same amount. Add quality of life that Sweden has from healthcare, paid time off, maternity leave, college costs, higher life expectancy, yeah Sweden's definitely a better place to live.
Sorry if this seems too simple... But I would love a video of exactly how you went about rate shopping. Did you write emails to the new bank showing another banks interest rate and having them beat it? Over the phone, in person, or all online? How long did the whole process take? Did some banks want to pre-underwrite and do lots of work for a pre-approval? Did you send out multiple requests at the same time or wait for each bank to finish before moving to the next? Thank you!!
Rate shopping is the same as shopping around for insurance. You take your Declaration page and bring that to another insurance agent and they beat your price. Or cars... same scenario. Alot of this can be done over the phone and with the few clicks of buttons, emails are sent and within a few hours you have a bunch of quotes.
Thanks for the info! Appreciate it! Also, would you start trying to rate shop the moment the sellers accept your offer? Can you start beforehand or probably not since the bank needs to know the exact amount of the loan? In hot market like California, I feel like there's pressure to move through the process as fast as you can since there's so many competing people. Would you expect to finish rate shopping under a week? Thanks again!
"The floors were scratched. The kitchen needed to be torn out. The bathroom was disgusting. The landscaping was overgrown. The roof needed to be replaced. And it needed paint. LOTS of paint." "I could tell it was easily worth about $675,000." Only in California 🤦🏻♂️
California is a rather huge place and I don't think this mindset really applies to the quieter areas up north. The closer you get to major tourists cities, though, absolutely. LA and SF happen to just be the concentrated hotspots for insane rationale like that.
@@thomasveysey7363 Well I doubt us mere peasants could help ya there, but you could comment it on a more recent vid of his, he does actually seem to pay attention to his commenters. Or if that doesn't work out you could always ask quora or reddit. Either way you'll be learning (for free mind you) information that can make you thousands later on. Which sure sounds like a pretty sweet deal to me!
At first I agreed with everyone in the comments then after watching the WHOLE video it finally clicked why you would do this, because you want that $150k back in your pocket to acquire another home, thanks for sharing this genius idea!
Well, it also pays you off for your overhead investment and allows you to rent the property out for a competing price where you have them pay your mortgage and interest and pay you a little while holding a massively appreciating asset.
@@oourdumb Just bought my second property in downtown Toronto for 960,000. 3 units, 1 of which i live in I'm renting out the other two for 2k each. More than covers the mortgage and all utilities. I never need to work again. I'm 24. I'd say Canada has a much better real estate market than the US. More immigrants per capita than the US come in every year, and they need somewhere to live. Also much less overbuilt compared to the US. Edit: Everything Graham mentions in this video is doable in Canada because I've done it before. I also completely disagree that housing prices are inflated compared to the US. There are many many suburbs and small towns that are growing like crazy, especially northern cottage areas. And it's reasonable to buy property from 200,000-500,000 in places like Barrie which are going through housing shortages so the demand for units is quite high.
As a 16 year old (that is also from the GTA), this highly piques my interest. To everyone who has a property that is rented out, how much money do you think is needed to start up and how time-consuming is this?
That really depends on what his new mortgage to rent ratio is. He probably spent like 10k in refi fees and pulled out another damn near 250k, even with a lower interest rate that cost him quite a bit on his ratio, he has also hiked his property taxes by 40-ish%. When all the math shakes out it may have been a very expensive enterprise, that didn't provide him with a lot. However if his goal was to keep cash free for other investments or to pay off investors or loans on other deals (and the ratio approaches 1/1 or better) then yeah, this could have been a fucking brilliant move. All depends on his goals, the ratio, and his situation; at least from what I can see.
Robert Aylor If you have no liability from doing this in an c-corp it may be a good idéa as you suggest. But it seems as if he is insisting on people gambleing with their savings and lives to do do the same. He never states what would happen if the house turned out the foundation was faulty or if for some unforseen reason it was only worth half of the price. The downside could be huge. Then he needs cash too pull from somewhere else since you can’t just refinance to pay off the mortage.
Im trying to point out that in my humble opinion that he "makes it seem" as if it's a sure thing, that the house will appreciate. It's not depending on "hidden" costs or effects from FED money supply -> Interest rates. I would enjoy him going over the risk involved rather than just not mentioning it. The "house foundation being bad is just an example of a "hidden" cost that could affect the market value.@Parwiazify
I feel like all of this should have been taught in school! And I love that you put the numbers on the screen because I’m such a visual learner👏🏾 Definitely subscribing!
Punchi Games reading and writing are important don’t underestimate education- the fact that many don’t care when in schools is not a school problem it is a societal issue
Right there with you! I’ve got about 20 properties this way over the last couple years. 50 in total, 20-30 were full BRRRR - Buy, renovate, rent out, refinance, repeat. Some of the deals end up partial BRRRR where you only get half the Reno & downpayment back out. I’ve pulled all my capital out on most of my properties, it’s a beautiful thing thanks to appreciation & strategic value add.
@@jaytree he got his money back and the tenants make the payment... if anything he most likely still cash flows, so he pays nothing for a house, worth almost 1 mil... that he could later sell.... for huge profit
Okay regardless if he technically wrong, and he didn’t pay $0, can we just appreciate how smart and wise this guy is! So I honestly didn’t care that he didn’t technically pay $0, I’m just impressed this guy went through all this to get a “$0 house”
FaZe Quarry I’m impressed too he was able to get a good deal, but he would have worded the title to represent what he did. Smelled like a click bait title, and I, also we, fell for it
The goat in real state . Best UA-camr on giving actually helpful advice. Thank you so much . And btw I always SMASH the like button for the UA-cam algorithm.
The previous video I watched from you was about how much money you make from youtube, so I randomly watched this one. You got me to click like and subscribe because of your friendliness. Great job.
I'm so new to this but I kind of understand how this works and have been studying hard this same sort of thing... You simplify this so much more for me and I thank you so much!!! They say you can't teach an old dog new tricks... Well Graham... That's exactly what you're doing... I can't thank you enough for everything I've been learning from you... Less than a year ago I never thought it possible for me but now I know it can because I just bought my first 6 plex a few days ago... You give out so much information to research... Its hard for me to imagine you of all people get negative feed back... You've really given me so much inspiration that even at my age I know I can do this and I can't thank you enough... To anyone out there giving negative feedback I just want to thank you for creating even more entertainment to Graham's already entertaining videos... I love you Graham ❤❤❤
Graham I just wanted to let you know that I’ve been watching you for years and you motivated me to finally start my UA-cam channel. I kept telling myself that I don’t have time and I finally stopped making excuses and I started. Thank you for the motivation and keep up the good work.
The click-bait is real :) love it! As a fellow UA-camr I look to you for the best click baity title & catchy thumbnails! Setting the trends. I assume it’s a BRRRR (refi). Over time pretty well all real estate is 0$...with strategic value add & appreciation.
I've been scratching my head on figuring out how to buy my first rental. Bought my current home for under market value due to its condition. Never thought about refinancing to get money out. Thank you!
Watching this video the whole time I kept thinking to myself how lucky he got. Then I remembered how long he waited and how much work he put in and realized he made his own luck.
Yes he got his original investments back but by refinancing an improved property for a lower rate on a higher mortgage. That $600,000 mortgage will be around $700,000 with interest after 30 years. But he got a cool video title out of it.
@@SimonElias The renters pay the mortgage and he has cash flow. If for some reason he can't make he mortgage payment in the future, the bank takes the house but his personal savings won't be affected.
I was just watching a documentary and then I got your notification.... my favorite UA-camr uploaded another video... wooooow! Great video and keep up the amazing work!!!
I hate how your videos show an ad right before you say something important. But then again the whole video is full of important info 😂 love the vids man!
@@shaolinmunky2012 >until he sells IF he sells it the price present on a thing doesn't mean you actually can sell that thing for that price in real life
Assuming he keeps the house for 30 years the appraised value will either increase or it will decrease. In the event that decreases it will never decrease to the point of becoming 0. In the meantime though he has rented out for 30 years. Do the math at the meager amount of $12,000 a year * 30 years dot-dot-dot that's still $360,000. So technical if the house were two devaluate during those 30 years he would still have a $360,000 buffer. However that scenario is quite unlikely to ever occur. Furthermore I was using a very meager $1,000 a month rental income which I highly doubt is all that he is getting for this place. It's likely more like 3 to $4,000 a month so just multiply that 376000 by 3 or 4 times and that put some way ahead of the game in the event the property became worthless over the 30-year. And remember one thing in the end regardless of which way the property value goes he still has the house and whatever equity that house has now become which is 100% his after 30 years. It's not a losing situation. I would die to do this kind of stuff myself granted it still takes money to make money
@@entertainmentprime101 ok he wants you to refinance to get appraised for a greater value hence taking out a new loan to pay the original.. and now owe more.
would be cool if you could talk one day about the Homestead act...and property tax. Interested to hear your thoughts on these things. In my opinion we are not truly free until we have no property tax.
@@GrahamStephan agree with you here. I think there are other ways of paying instead of taxation by force. it can be truly voluntary and law of nature will work its magic. also decentralize systems like bitcoin will enable new things possibly you and I have not thought of yet
better title, how i got this house EVENTUALLY for no money down out of pocket from refinancing against a rising property value...but still owe a shitload of money to the bank
Nice BRRR, you definitely got a unicorn deal there good job! I know this is corney, but you largely inspired me to get my real estate license this year and I am now an active investor and agent. Keep doing what you're doing.
Dont let him suggest you commit fraud. As a licensee, you have a duty to disclose your intents and market values. Even as a flipper, you need to disclose what your intent is with the property.
![Lp. Сердце Вселенной #60 РОЖДЕНИЕ ЛОЛОЛОШКИ [Финал] • Майнкрафт](http://i.ytimg.com/vi/YoR0pAV9FVQ/mqdefault.jpg)
now this video is going to pay his loan. smart guy
His tenant is paying for the loan. Paying off a loan given at such a low interest rate is a noob move. He knows better than to use cash to pay off a loan early. He will instead invest it at an average of 7 percent compound interest and let his tenant pay the loan over time. :)
@@JV-mk3bl Well said
@@JV-mk3bl You are correct that you don't want to tie up your money in real estate when interest rates are low. Unlike the average Joe, Graham's goal wasn't to buy this place to live in it, or even flip it. He saw it as rental property. He probably needs tenants willing to pay $4K/month to break even. Being a landlord is too much work for most people. Title should have been "How I got all of my money out of a rental property" but then no one would have watched.
Indeed 🤣🤣🤣🤣🤣
Only smart folks will survive this earth
I got a house for $0 too.
The police came later tho
BRUH....
You cannot just steal houses because the owner will eventually swing by.
I had a house for £0 also
It was given to me
Lol
🤦🏻♀️🤭🤪😆
how i started a business with 0$ :
1. started a business with 600k
2. business made me about 10k a month
3. after 5 years it paid itself and now my business costs 0$
I got a chuckle with that one... :o)
That's how I felt watching this video.
Alaeddine Bensalem 420 blaze m
this is legit the problem with rich peoples idea of having no money. they see 0 dollars as the moment after they invest into a business. not actually having 0 to work with.
funkydiscoduck u sound broke af
Geez, imagine a monopoly game with this guy.
ahahah this is such an underrated comment
🤣🤣🤣
Why would you bother you'd lose in 4K
Lollll
Just thinking about it makes me feel like I already lost
So basically:
"I used the loans to destroy the loans"
lmao
Most underrated comment💀
The deed is done.
Indeed
More like "I used the loan to put myself more in debt"
To get stuff for free, all you need is lots of money.
Yes, otherwise it's called welfare.
lmao
You need to build your credit score. He has worked hard become a long term subscriber
Lmao I snorted, but facts. Rich get richer. Sucks for the poors
If you can explain your plan good enough to a person who can afford the deal and trust you, it is also possible without owning the money :)
Next video: How I live without breathing
How I eat without my hands or a fork.
you see the haters will say "graham you had to take in the oxygen to return gas to the outer world, but you gotta understand that the net exchange in volume of the gases is 0, so I obviously can live without breathing"
@@snoolee7950 that's @BeatTheBush
You use someone else's breathe to preserve your own so you can use the O2 in space where you can get can back more out of it .
Brahhhhh!!!!!🤣🤣😂😂😂😂😂
The only disadvantage of watching graham is all the 'get rich' quick scam ads...
Cazi Grey that’s just rude
That surprises you ?!?!?!?
Yes watching the get quick rich schemes while watching a video of the same b.s. lol....
This guy might not be as much of a scammer as the others but, his still no choir boy when it comes to sharing how to make money that should be apparent to anyone seen the title verse the content that he's giving.
@@woulfe42 And the whole time he rails against those that re-package information already out there for the world to see while.....he.....well,......re-packages information already out there for the world to see. He says he's a licensed real estate agent and he bought this property just outside Los Angeles. Anyone can go to the California Bureau or Real Estate (CA BRE) and do license look up (like I just did) and there's no one licensed in CA named Graham Stephans. Or Stephan Graham. Or any sort of combination of of spellings, Steve, Steven, Stephan, Steph - none. Except for within his own mind, does this guy even exist?
@@darkcarnival5207 California DRE number 01852388. It wasn't that hard to look up. It's listed on his employer's website.
*WHAT THE TITLE SHOULD BE:*
>> How I read the comments people posted about my video, before I posted the video
Actually the comments are from a previous video.
hahaha
Oh hey it’s qubit
I had no idea what was goin on for like 80 percent of this video
@@MrYondaime705 Wow this helped clear everything up thank you.
@@MrYondaime705 he actually owes lots money, for me I will try to sell it b4 the tenant messes it up
@@MrYondaime705 Bless your soul. Thanks man.
@@MrYondaime705Yes, but a human life is quite short. He will be kinda old by the time "in the long run" is worth it. (30+ years)
@@MrYondaime705 the idea is that the loans generate more money than his monthly mortgage costs right? But how do the banks approve these loans?
Take notes. Most scammers would charge thousands of dollars in course fees for this info and Graham is giving it out for free.
I just charge....
One like on the video
@@GrahamStephan yes but you do have a real estate course too so yeah.....
Nothing is free.
Jay Tree oH yEA mAn iM sUrE
Me too. I make money not barrow it..
Nice concept. RE is the eighth wonder of the world
Keep uploading videos richard. Love your content!👍
What is RE?
No compounding is the 8th wonder
@@bjornking9899 Real Estate
@@aadhilsameer7219 No Internet is the 8th wonder of the world
Step 1: Become a bricklayer.
Step 2: Steal one brick everyday.
Step 3: After a year or later, you'll have the experience and materials to build a house for free.
No, you'll have 365 bricks and a felony theft charge.
KnightDriveTV but if you do it on a leap year, then you have 366!
@@KnightDriveTV lol👍😂
Bricklayers don’t normally work for other people, your just taking a loss
@@christianketels300 Ya they do. They are hired by contractors who pay for the materials and pay the workers their salary
*Back in my days it was easier to get houses for $0*
_Now there are better locks_
And more security
How do u do italic font, ik Bold font.
@@oliversusnea2415 it's free real estate
Oliver Susnea Bold - use * *hi*
Italics - use _ _hello_
Cross off - use - -bye-
Performak They had us going in the first half...
I think our definitions of “I bought this house for 0$” are vastly different.
Of course its click bait. He also makes money off this video too so he gets the house even cheaper. He forgot to factor that in too.
I mean, it was 0$ at the end... I think this was extremely informational on tips to buy a house so I was happy to watch and take notes and now look for a house.
@@MattsWrightUSUALLY In the end? Just because something grows in value doesn't mean you got it for $0; simply means you made a profit.
@@MattsWrightUSUALLY still not $0.. there's still a loan on the house he has to pay..and a bigger loan than the original.
@@bigv69er IT IS A RENTAL INCOME HOUSE. And rents are almost always more than mortgages. Say he pays $1400 mortgage while renting it for $1750 a month. So still free ;)
He really just explained why Cash Out Refinance is a good strategy when property values are increasing. Normally I'd ask him why not just sell the property outright, but if this is a rental he can't do that. So instead of letting that money sit in the property and do nothing, he took it out and can invest in other things. His only risk is that instead of selling outright, he takes the refinance, the property value declines, and he's left underwater on his loan.
Which is almost guaranteed to happen in the coming recession. Reckless really, because he would know that given the uncertainty lead to a better interest rate.
@@dr.benjaminbird7631 it's LA, that won't happen
I refi'd my house! Shopped around and got 3.75% 30yr fix. I save a ton of money watching your content Graham!
We got the same rate!!
@@pw8544 😂
@@GrahamStephan what bank or credit union is offering that rate?
Sharon Segovia better.com
S K haha. Nah... But I been following Graham for a while and his tips for real estate has helped me save a ton of money.
A trick I used when buying my first home was I buying it from my landlord. Because I was renting it and already in the home I had the leverage to offer about $25,000 less than market value because I knew he wouldn't have to pay realtor fees nor deal with a vacant house for potentially months if he put the house on the market. I had to play hardball but ended up with $20,000 under market value.
Very smart! And as a landlord, it makes it so much easier to sell it to a tenant who's already familiar with the home.
Were you living in a duplex or a single family?
@@tiffanyonwudinanti single family.
Did u not know u paid too much.. lol
Max Maher I'm hoping to do the same thing. Out of everything Graham said in the video, the most important part to me was when he talked about his offer to get the house. He offered no hassle purchase (Meet Kevin talked about this too in a way with a direct to owner check and if he walked away the owner keeps the money). But you gotta really know how to read a building for value (and I don't 😂 not yet anyway)
I'm in a 4 apartment building with a store front in NYC so it might be hard but I prob go for it. Plus the owner owns the building outright so he could be the bank if he wants.
For him he knows he gets an immediate deal, and I get an affordable building (well for NYC anyway).
How I bought this property for 0 dollars..
Just get a small loan of 600k..
He forgot to mention that he rents out the other side of the duplex which pays his mortgage loan, home insurance and other fees for him. So as long as he has a tenant there that’s $0 out of pocket for him
@@misspapayausa
That's like saying that just because you build a company that profits it costed zero for you to start it..
Completely moronic logic
@@justicewarrior9187 He never said it cost $0 to start it. Let me know if you figure out a way to. purchase a home for $0 though, that would be great. So far this is the best idea I've ever seen in terms of home owning.
@@misspapayausa
Yes he did!!
"this home cost me zero dollars"
@@misspapayausa That's what people are doing for ages lmao
That’s because you are smart! You know what you are doing.
he isn't smart, he is a real estate agent with a passion for studying economics.
A: "I got this house for $0!!!"
B: "How did you do that?"
A: "Well at first you need $585,000..."
Seems legit.
It's called financing strategy
No first you need $150,000 deposit....rofl
GamerGuy51 sp sad to say that I don’t even have 60 thousand dollar on bank .. loan amd salary can easily get off but for 3 to 4 years !
230,000*
Not wanting to ruin the party but disruption is coming this way also ua-cam.com/video/8z-iebHRxJk/v-deo.html
Damn ,.... try beating him in monopoly ..
lol bringing a tank to a knife fight
@@antonsehl more like shooting a Nuclear rocket to a Knife fight
hahahaha funniest thing i have read all day thanks
*homeless people would like to know your location*
Good, tell them to bring their $585k for their FREE house, smh.
@Gxzzi Nxnja no
Gxzzi Nxnja what are you stupid why would we give you somebody we don’t know ten thousand dollars
RxD Nxnja r/choosingbeggar
I don’t want to be the smartass but you do have to pay a down payment which i dont think homeless people have.
I just realized but his videos r like essays. He had an intro, body paragraphs, counter arguments, and a conclusion
I mean, who can argue with God?
Yes lorddd
He definitely has some public speaking training or just found out that that kind of a structuring helps the listener a lot
Can you document/ vlog the next time you buy a house, like from beginning to end. I know that’s a major request but it would help a lot, just to see your thought process and see how you sift through your houses, and how you negotiate deals, etc.
Jorge Manzo I agree
I’d like to see that also!
That's the move
That would be really cool, but I also see it being rather difficult to capture everything. Though, if anyone could do it, Graham could.
I think the process is what you would get if you buy his course. These videos are free, so there’s a limit to it.
I got a house for $0 aswell
Although my neighbors dog dont got a place to sleep no more
my ribs hurt now
);
More like roommate
to forced and not original
Help me!
Next up - *How I bought Space X for $0*
;)
Lololol he such a click bait
and killed all humans with 5g satellites.....
@@MommaKnowsBestest haha
@@donniewatkins5928 can't wait for " how I bought UA-cam for zero dollars " next week.
Basically from how I understand it is:
1) Have some down payment.
2) If you can find a good deal, buy it, remodel if need, then find tenants to pay for it.
3) Refinance later with a lower rate, and if the new appraisal finds the house appreciates, you have equity and some $ differences.
4) Just have tenants pay for it. You owe the house at the end while the mortgage is being paid by someone else.
It is a paper game. The trick is getting a good property in an area that will have the property increase appreciation, this helps minimize the expends.
It was priced at $575,000 and you offered $0 and they took!? Amazing!
GamerGuy51 no he means, he bought the house for 575$ but made an amazing profit, so basically cost him 0
@@Soul-ft7bg that's bullshit math voodoo. Normal people do not function like this guy. He has a solid support system and well-off parents.
@@GamerGuy51 he did not have well off parents...he was on his own from 18 onward with no help from parents. Stop spreading false information just because you think someone can't be successful from their own efforts.
Missed the point of the video. Learn finance or be poor.
@@GamerGuy51 .....let it all hinge on the opinion of a real estate assessor? unspoken relationship with the assessor? .....
bruh
that property? in L.A? for that much?
that's a steal in itself without the loophole mumbo jumbo
Right, especially when the real estate prices are SKY-ROCKETING in the L.A. area. He said, that within a YEAR the value of the property increased with 100,000+ dollars (+15%). Imagine what the property will be worth in 30 Years (when the mortgage is paid in full). To put into perspective, the playboy mansion was bought for 1,1 million dollars in -79 and 45 years later sold for 100 million dollars. Of course, it's a one of a kind property but just imagine how much this one it would cost. Wouldn't be surprised if it cost at LEAST 5-10 million by then.
@@1000leomessi Remember to factor in inflation
@@1000leomessi and remember that bubles like that usualy pop.
He timed the market very well! Probably won't see that appreciation in his lifetime again, but hey, he struck while the iron was hot.
“I paid $0 for a $675,000 mortgage.”
Awesome opportunity.
Yeah and if the house loses value, which it very well can. Then what next? This might work in LA but everywhere else it is very risky.
@@latengocomoburro That's why he said he spent 6 months researching what area to buy in. He noticed the surrounding developments and then sought out an under priced home. That tactic can be applied anywhere. Over time all real estate increases in worth. Even my house is worth more then it was BEFORE the 2008 crash. Also he house would have to lose over $365k in value for him to take a loss. That's highly unlikely to happen and then permanently stay that way.
@@DoomFinger511 ok
DoomFinger511 you talk smart thanks for the education
CA real estate investments are "safe?" ?
earthquakes, storms, forest fires, civil unrest, liberalism ... no thanks!
Its a very nice video. You have explained the concept very well. thank you.
*This is one of the few videos I'll save to my watch later and watch it again 2 or 3 more times to solidify the information* 💪👌
thank you!!
Agreed... cant wait til i have some money to even get started!!! And yes... Iike button smashed
@@kin6david very true and Good luck💪, my impulsive saving that I've been critized since my youth has time and tune again come in handy.
Like how he owes 600k..
@@Je.rone_ impulsive saving sounds like the best problem to have lol.
Popcorn ceiling was removed. That is all that matters 🤣👌
Great video as always
Thanks! Yes, absolutely had to!
Hey at least all of you don’t live with popcorn walls
@@siralfredo I prefer to call it orange peel.
just in time for it to come back in hipster style
i go in store, and buy everything i want for 0$..... the only slight price is, a little Jogging.
Usains Bolt life in a nutshell
*hol up*
😂😂😂
The secret ingredient is crime
hahahahahaha good 1
Mindblown! Always enjoy watching your content Graham.
Who's watching this during quarantine
Yep me. But it does bug me he doesn't actually "OWN" it for $0. He'll be paying that mortgage for decades, and will pay a good chunk in interest for that privilege. As far as I'm concerned, you don't "OWN" something unless you can never again pay a cent and it won't be taken from you... i.e, the t-shirt I'm wearing or the used car in my driveway I bought for cash. Anything you're making payments on does not count as ownership.
Me
@@dangrec1 hes just doing it in a financially smart way that house isn't sitting there he will rent it out for more then the payment so he will make even more off it. & hes free to invest his cash elsewhere. his title is a bit click baity though.
@@chipychipz Your pfp is no game no life. Omg I love that anime!!
@@chipychipz It's click baity, but not in a bad way because he is actually teaching people something.
So, the house was cheaper than the Tesla? 🤔🤣
Next video . New cash out refinance loan to cover the cost of the Tesla . Free Tesla .. lol
😂😂
It cant be its a fing house.
@@Postofficejoe Graham is out shopping now
That Tesla Video 😩😩😩 😂 everybody was triggered man listen! But he still made a good point that if you know how to work it, you can technically pay less for something.
Same with this video. He put in 240k and in 2 years got his 240 back out PLUS he still owns a money generating property.
Another sick vid Gram. Your killing it. 🔥🔥🔥
thanks!!
I am god.
@@Dragoon_99 cool
What kind of business classes should I take to have a better understanding of how this works ? I really enjoy your knowledge and info.
Aye lmk if someone responds
Search up the brrr strategy from the bigger pockets they have videos on UA-cam and even books you can buy to learn the strategy he used
I agree
it is not difficult to understand. His first round is to fix up the property to boost up its value and then 2nd round is that his property surged in value due to the demand with interest rate went lower than before. As long as your house value increases, you can refi your house with a loan bigger that covers your previous loan with the delta to your pocket. Now the delta from loan gets him back the money he put in and then he rented out the property to cover his mortgage.
The best investment is within 15 minutes of the beach, cause in 20 years it will be a beach front property :P
See my future oceanfront home ;)
jahahahahaha
how does that work
john sea levels rising from melting ice caps
And in 40 years there won’t be any property just beach 🏖
The real title is: "How I profit from real estate investment."
@David McKee Sorry sir, I think you missed my point. Remember Robert Allen wrote a book about "Nothing down"? He brought a news reporter with him and flew to Los Angeles and purchased 3 homes in the same day with no money down. Besides, he got money back from the 3 deals. This is what I mean a real " buy a home with $0". Of course, after the financial crisis, government has tightened the rules of borrowing. Nothing down is only a dream now unless you can borrow money from the private lender at a reasonable rate. Finally you can also make money with your hard labor work or from social media like UA-cam with your intelligent creations.
@David McKee Thank you sir for confirming that the title of this UA-cam is misleading. Its intention is to attract more viewers, subscribers and comments. It takes money to buy a house to make money and refinance your money back.
Andrew Tsang Facts💯 Robert G Allen acquired properties with actual creative financing and NO BANK LOANS. I thought Graham was going to say he did something without a initial investment of capital (Seller Financing, Subject To, Lease Option, etc.)
You're just triggers because you have bad saving habits. The title is perfect as it is unless you have the financial habits of a toddler.
Yeah, but you know which title sells more
Alright, Graham is the real monopoly master, imagine him at Ben Mallahs age....
Ben Mallah is the goat!!
Youre everywhere man!
GTFOOOO
@@tensei3520 he is and he needs to get a dam life
Awesome job Graham!!!
“It’s free real estate” hell ya
mahdys hell no- it’s not real
I got a house for $0
i just made it out of sand. Wet sand if i should add
I got a house for 0$ dollars too went behind a liquor store got a box an boom I'm living the good life
EMAN ENTERTAINMENT lol
Can you make a video on this method please
Lie. You forget the remodel costs
That box would be $1500 a month in New York.
new york gang gang
Its just two days i am following this channel, very informative and great connect. 💯
Here in my garage , just bought this new lamborghini for $0 ...
lydia yuna k n o w l e d g e
Not the same concept..
cool
Would be possible lol he got his Tesla for 78$ a month lol
Don't belive you
I like the idea but to explain this to those who don't understand.
This isn't a net income situation, it's purchasing a property at lower than market value, then refinancing for a bigger loan from the bank (possibly lower interest) and now using that property as collateral. This allows you to get back out the inital down payments/costs invested into that property.
Do it only if you understand what you're going to do with the difference, otherwise you're better off just paying down your loan for most nonreal estate people.
Very well said. This makes sense because I can reinvest into other areas at a higher return than I borrow for 30 years! If the money did nothing, or I'd spend it on cars and penthouse apartments...then it wouldn't work.
Sorry if I'm misunderstanding, but even with the better interest rate aren't you still going to end up paying the bank more money over the life of the loan by refinancing for the higher amount? or is that just an accepted loss because the money will be used in better places elsewhere?
@@chad912 agreed.. thats a problem they dont care about.. according to him he made money.
@@jaytree well no I dont see that as a problem. Thats a valid strategy, accepting losses when money can be reallocated towards something that will yield greater results. Ultimately he got his return investment, probably pays a minute amount more per month and has a nice property that is generating money, so yes he did make money. My comment was more me looking for clarification
@@chad912 clarify how oweing 600k is making money?
Graham! Pleased to say I just crossed the 335 subscribers mark on my UA-cam channel in my FIRST MONTH after taking your UA-cam Creator Academy program. For anyone reading this right now who is on the fence about buying it... BUY IT. One of the best investments I've made in a long-time and put me on the right path on Day 1 with my UA-cam channel. PS - Loved your last video where you made over $100k last month from YT, def. the motivation I needed to keep pushing forward. Keep doing all you do, Graham. You're the man!
Good stuff man.
Ah thank you!! And for anyone curious, NO I did not ask or pay for any promotion haha
@@GrahamStephan Always covering your bases, love it. Really enjoyed your Bitcoin video last week Graham. Long live Bitcoin!!!!!! hahaahah (but DYOR, of course!!)
It hurts my swedish ears to hear him say that 3.7% is low. Welcome to Sweden, I have 1.2% interest rate on my home.
Welcome to America. We pay 27% on credit cards too.
Great home loan rate but I've read the Swedes pay *well* over 50% of their income in taxes.
P.S. It's worth the extra money to live in America.
@@WorkHardBeNice now throw in insurance costs of the us and you're left with around the same amount. Add quality of life that Sweden has from healthcare, paid time off, maternity leave, college costs, higher life expectancy, yeah Sweden's definitely a better place to live.
10.5% is an awesomely low mortgage interest for Russia 😭 real estate prices never go up that high, so at best you might break even
45 % interest rate where I live, in Argentina. Who can beat that ?
the title may be misleading but the lessons and steps he took can still be applied. May have to watch some more of this guys videos
Thanks!!
Still needed money to purchase the home regardless and if you can't get a loan, you are basically screwed.
Keston Smith if you can’t get a loan, check out things like “seller financing”. There are ways to get in to real estate without big down payments
@@JM-oi9pk What?
Sorry if this seems too simple... But I would love a video of exactly how you went about rate shopping.
Did you write emails to the new bank showing another banks interest rate and having them beat it? Over the phone, in person, or all online? How long did the whole process take? Did some banks want to pre-underwrite and do lots of work for a pre-approval? Did you send out multiple requests at the same time or wait for each bank to finish before moving to the next? Thank you!!
Rate shopping is the same as shopping around for insurance. You take your Declaration page and bring that to another insurance agent and they beat your price. Or cars... same scenario. Alot of this can be done over the phone and with the few clicks of buttons, emails are sent and within a few hours you have a bunch of quotes.
Thanks for the info! Appreciate it!
Also, would you start trying to rate shop the moment the sellers accept your offer? Can you start beforehand or probably not since the bank needs to know the exact amount of the loan?
In hot market like California, I feel like there's pressure to move through the process as fast as you can since there's so many competing people. Would you expect to finish rate shopping under a week?
Thanks again!
"The floors were scratched. The kitchen needed to be torn out. The bathroom was disgusting. The landscaping was overgrown. The roof needed to be replaced. And it needed paint. LOTS of paint."
"I could tell it was easily worth about $675,000."
Only in California 🤦🏻♂️
you mean LOS ANGELES
@@Yayo509 No, I mean California.
California is a rather huge place and I don't think this mindset really applies to the quieter areas up north. The closer you get to major tourists cities, though, absolutely. LA and SF happen to just be the concentrated hotspots for insane rationale like that.
@@jenniferlynn3579 Well I live in central California. In a small city. Surrounded by other small cities. And the prices are ridiculously high.
Or the entirety of Australia.
Did everyone except me understood what he was saying?😂
Nah, ur just a genius
i don’t get how he paid off a loan with a loan and then called the difference profit ?
@@thomasveysey7363 Well I doubt us mere peasants could help ya there, but you could comment it on a more recent vid of his, he does actually seem to pay attention to his commenters.
Or if that doesn't work out you could always ask quora or reddit.
Either way you'll be learning (for free mind you) information that can make you thousands later on. Which sure sounds like a pretty sweet deal to me!
I also didn't understand 🤦I'm I stupid or he is just a genius lol
I fell asleep as usual when watching yt
At first I agreed with everyone in the comments then after watching the WHOLE video it finally clicked why you would do this, because you want that $150k back in your pocket to acquire another home, thanks for sharing this genius idea!
Well, it also pays you off for your overhead investment and allows you to rent the property out for a competing price where you have them pay your mortgage and interest and pay you a little while holding a massively appreciating asset.
Risk free investment
Feel like it puts you at risk you having a toxic asset.
Rich youtuber: I got this house for $0
Me:how
Rich UA-camr: oh I just paid $585,000
@@oourdumb He also started from nothing, stop whining and start doing.
@@oourdumb Just bought my second property in downtown Toronto for 960,000. 3 units, 1 of which i live in I'm renting out the other two for 2k each. More than covers the mortgage and all utilities. I never need to work again. I'm 24. I'd say Canada has a much better real estate market than the US. More immigrants per capita than the US come in every year, and they need somewhere to live. Also much less overbuilt compared to the US. Edit: Everything Graham mentions in this video is doable in Canada because I've done it before. I also completely disagree that housing prices are inflated compared to the US. There are many many suburbs and small towns that are growing like crazy, especially northern cottage areas. And it's reasonable to buy property from 200,000-500,000 in places like Barrie which are going through housing shortages so the demand for units is quite high.
Never paid that much money. You weren’t listening
As a 16 year old (that is also from the GTA), this highly piques my interest. To everyone who has a property that is rented out, how much money do you think is needed to start up and how time-consuming is this?
You know you don’t pay for for it but get it through loans. You never pay for real estate with your own money ever. Bad idea
Technically you did not buy it, if you paid
nothing for it. You acquired it 🤔👌😳👍😉
That really depends on what his new mortgage to rent ratio is. He probably spent like 10k in refi fees and pulled out another damn near 250k, even with a lower interest rate that cost him quite a bit on his ratio, he has also hiked his property taxes by 40-ish%.
When all the math shakes out it may have been a very expensive enterprise, that didn't provide him with a lot. However if his goal was to keep cash free for other investments or to pay off investors or loans on other deals (and the ratio approaches 1/1 or better) then yeah, this could have been a fucking brilliant move.
All depends on his goals, the ratio, and his situation; at least from what I can see.
Robert Aylor If you have no liability from doing this in an c-corp it may be a good idéa as you suggest. But it seems as if he is insisting on people gambleing with their savings and lives to do do the same. He never states what would happen if the house turned out the foundation was faulty or if for some unforseen reason it was only worth half of the price. The downside could be huge. Then he needs cash too pull from somewhere else since you can’t just refinance to pay off the mortage.
Im trying to point out that in my humble opinion that he "makes it seem" as if it's a sure thing, that the house will appreciate. It's not depending on "hidden" costs or effects from FED money supply -> Interest rates. I would enjoy him going over the risk involved rather than just not mentioning it. The "house foundation being bad is just an example of a "hidden" cost that could affect the market value.@Parwiazify
slevin kelevra dislike, unsub!
Sure, link me one@Parwiazify
Thank You Graham For Your Educational Videos.
*How I Watch Graham Buy This House for $0*
Now we got to learn how to get that down payment...
Cherry Tung - The Frugal Designer Handbag Lover lol just sell something and save up
@@sub.533 Jajaja maybe more than something... more like EVERYTHINGGGG
@@cherrytung Have to cut back on that avocado toast. It's hard, but we must make sacrifices.
@@MasonsTurtle YOU CANT HAVE MY AVOCADO TOAST!!!
I feel like all of this should have been taught in school! And I love that you put the numbers on the screen because I’m such a visual learner👏🏾 Definitely subscribing!
mibellanote many things need to be learned in life not expecting schools to teach us everything
Punchi Games reading and writing are important don’t underestimate education- the fact that many don’t care when in schools is not a school problem it is a societal issue
Punchi Games stop being a victim- you were taught to read and write and do math last time I checked that was important- come on
@@jakemf1 only elementary school
@@potato8757 History in HS, Advanced math in HS, many schools also have economics
Absolutely love your videos, keep up the great work 👍🏾
Thanks so much!!
"I put down a $150,000.00 down payment..." welp, this is my problem.
yea ..we not that rich like him..lol
@@pepe58pepito54 go add value to the world
That's why you first need to make money normally first.... And then watch these guys
@@pretinc.6784 how are surviving without making money? Also that’s why he always say build your credit score it’s for these things
Right there with you! I’ve got about 20 properties this way over the last couple years. 50 in total, 20-30 were full BRRRR - Buy, renovate, rent out, refinance, repeat. Some of the deals end up partial BRRRR where you only get half the Reno & downpayment back out.
I’ve pulled all my capital out on most of my properties, it’s a beautiful thing thanks to appreciation & strategic value add.
This is how it’s done!
true i bought 69 properties
Legion Slots jokes or for real?
what does br stand for
Kenshin BRRRR - Buy, Renovate, Rent, Refinance, Repeat.
I bought a house, flipped it, made money, so I bought it for $0
Thank god your smart enough to know the difference.. he still owes money
@@jaytree he got his money back and the tenants make the payment... if anything he most likely still cash flows, so he pays nothing for a house, worth almost 1 mil... that he could later sell.... for huge profit
@David You paid off the loan, never got your money back. He got all his money back and someone else is paying off the loan.
Okay regardless if he technically wrong, and he didn’t pay $0, can we just appreciate how smart and wise this guy is! So I honestly didn’t care that he didn’t technically pay $0, I’m just impressed this guy went through all this to get a “$0 house”
FaZe Quarry I’m impressed too he was able to get a good deal, but he would have worded the title to represent what he did. Smelled like a click bait title, and I, also we, fell for it
Comment for the algorithm!
If you haven’t already, can you make a video specifically about mortgage shopping and refinancing/cash out refinancing??
This please!
The goat in real state . Best UA-camr on giving actually helpful advice. Thank you so much . And btw I always SMASH the like button for the UA-cam algorithm.
Great job on that trade! Love the way your mind works. You may be one of the best at explaining such deals. Really appreciate it!
Lots people don't have the initial investment money, even for a cheaper house, nor the financial credibility to get that kind of mortgage.
Then save lol
Its your job to get that money
next video: how everything I touch instantly turns to cash
The previous video I watched from you was about how much money you make from youtube, so I randomly watched this one. You got me to click like and subscribe because of your friendliness. Great job.
Oh man. “Bathroom is disgusting” in LA a turn key in Wisconsin, lmao
That's interesting , I don't know a lot about real estate so learning a lot from you !
Oh another online making money guru! Thanks for trashing the community
Man watching you’re videos give me more knowledge on what I need to do starting now man!
awesome!!
Thank you guy! Taking lots notes 📝
Kuddos to you, Graham! You deserve to be wealthy, because you think like a wealthy person!
He...he is wealthy.
Hi. The word is "kudos". It's a Greek word meaning praise for achievements.
I'm so new to this but I kind of understand how this works and have been studying hard this same sort of thing... You simplify this so much more for me and I thank you so much!!! They say you can't teach an old dog new tricks... Well Graham... That's exactly what you're doing... I can't thank you enough for everything I've been learning from you... Less than a year ago I never thought it possible for me but now I know it can because I just bought my first 6 plex a few days ago... You give out so much information to research... Its hard for me to imagine you of all people get negative feed back... You've really given me so much inspiration that even at my age I know I can do this and I can't thank you enough... To anyone out there giving negative feedback I just want to thank you for creating even more entertainment to Graham's already entertaining videos... I love you Graham ❤❤❤
Would you mind sharing with us how much money you had to put down for your house? Just trying to get an idea
Ok fine I liked this video Graham. Don't get used to it.
.
.
.
.
You know we love you.
haha thank you :)
Graham I just wanted to let you know that I’ve been watching you for years and you motivated me to finally start my UA-cam channel. I kept telling myself that I don’t have time and I finally stopped making excuses and I started. Thank you for the motivation and keep up the good work.
The click-bait is real :) love it! As a fellow UA-camr I look to you for the best click baity title & catchy thumbnails! Setting the trends.
I assume it’s a BRRRR (refi). Over time pretty well all real estate is 0$...with strategic value add & appreciation.
I’m not 1st but close :P
Haha thank you man!
not clickbait
Robert Iacob close :P
I've been scratching my head on figuring out how to buy my first rental. Bought my current home for under market value due to its condition. Never thought about refinancing to get money out. Thank you!
OMG LA property over $1m!!!
Hong Kong cage houses: Hold my sq fts
lmao true tho
😂😂😂😂
Watching this video the whole time I kept thinking to myself how lucky he got. Then I remembered how long he waited and how much work he put in and realized he made his own luck.
It’s free real estate.
I’m so original.
It’s hilarious.
How I got it for free:
I had 150k cash and bankloan for 400k
C O ye definitly free
poor people look at cash, rich people look at percentages.
Yes he got his original investments back but by refinancing an improved property for a lower rate on a higher mortgage. That $600,000 mortgage will be around $700,000 with interest after 30 years. But he got a cool video title out of it.
@@SimonElias Considering he is renting out the property which is in a prime location in LA, he'll be fine.
@@SimonElias The renters pay the mortgage and he has cash flow. If for some reason he can't make he mortgage payment in the future, the bank takes the house but his personal savings won't be affected.
I was just watching a documentary and then I got your notification.... my favorite UA-camr uploaded another video... wooooow! Great video and keep up the amazing work!!!
Ah thank you!!
Really like the content and the way you sharing .Big love
That title is more realistic than a new season of *Game of Thrones.*
hahaha
I hate how your videos show an ad right before you say something important. But then again the whole video is full of important info 😂 love the vids man!
ah thanks!! :p
The title got me to watch.
But should be labeled as:
“The $0 downpayment, No PMI home”.
.. fine print says:: 675k loan remains to bank.
But nice buy.
Nicolas Im 99.7% sure he’ll rent It out and have the renter pay the loan. So he still technically won’t be paying anything.
@@kylesummers7478 sooo... he'll get this house for himself in 30 years (if everything works out well).
@@rawdez_ or... someone will pay the loan, building his equity, until he sells it and cashes out the equity.
@@shaolinmunky2012 >until he sells
IF he sells it
the price present on a thing doesn't mean you actually can sell that thing for that price in real life
Assuming he keeps the house for 30 years the appraised value will either increase or it will decrease. In the event that decreases it will never decrease to the point of becoming 0. In the meantime though he has rented out for 30 years. Do the math at the meager amount of $12,000 a year * 30 years dot-dot-dot that's still $360,000. So technical if the house were two devaluate during those 30 years he would still have a $360,000 buffer. However that scenario is quite unlikely to ever occur. Furthermore I was using a very meager $1,000 a month rental income which I highly doubt is all that he is getting for this place. It's likely more like 3 to $4,000 a month so just multiply that 376000 by 3 or 4 times and that put some way ahead of the game in the event the property became worthless over the 30-year. And remember one thing in the end regardless of which way the property value goes he still has the house and whatever equity that house has now become which is 100% his after 30 years. It's not a losing situation. I would die to do this kind of stuff myself granted it still takes money to make money
Enjoyed the video, much respect on the direction you're taking is channel..
Owing a house can be such a joy. Except that paying for it is whole lot painstaking
On top side you get to sell it for almost 500% profit a few years later.
Instead of flipping the property why not be a good investor and set it up for passi e earning. Its still gonna be your property
He dosent want to own it or pay for he want to rent it and say its free.
@@jaytree I'm confused what is the new loan? new loan to who? If it is yours why how when ???????? someone help
@@entertainmentprime101 ok he wants you to refinance to get appraised for a greater value hence taking out a new loan to pay the original.. and now owe more.
would be cool if you could talk one day about the Homestead act...and property tax. Interested to hear your thoughts on these things. In my opinion we are not truly free until we have no property tax.
I have no problem with property tax. Someone needs to pay for roads, street lights, etc.
@@GrahamStephan agree with you here. I think there are other ways of paying instead of taxation by force. it can be truly voluntary and law of nature will work its magic. also decentralize systems like bitcoin will enable new things possibly you and I have not thought of yet
nothings free.. time AINT free..
True
Another great video Graham 👍🏾
better title, how i got this house EVENTUALLY for no money down out of pocket from refinancing against a rising property value...but still owe a shitload of money to the bank
Except it's a rental property so he's making more money than the mortgage each month so essentially the amount of the debt doesn't matter.
Nice BRRR, you definitely got a unicorn deal there good job! I know this is corney, but you largely inspired me to get my real estate license this year and I am now an active investor and agent. Keep doing what you're doing.
Dont let him suggest you commit fraud. As a licensee, you have a duty to disclose your intents and market values. Even as a flipper, you need to disclose what your intent is with the property.
@@sailingashika3362 agreed
@@jaytree I didn't make it up, there is law and precedent. This guy is on a slippery slope, with his confession on public display.
@@sailingashika3362 i agree, i dont know the law.. but i believe in business you should advertise something that isnt.
I got my house for $0 too
But it’s a 3x4 dirt block house with one bed
Ryan Rhino3 in Minecraft
Toxiiciity Yeah
Pretty sure minecraft cost like $19.99 thooo so 🤷♂️
Brandon Sickles If only Minecraft Lite still existed 😢
U know ur a real man when...
Living infinite baby! Good stuff Graham.