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Real Estate Investing for Beginners: Expectation vs Reality
 
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Let’s debunk some common myths about real estate investing, and share what it’s ACTUALLY like, no sugar coating - enjoy! Add me on Snapchat / Instagram: GPStephan Jeremy’s Channel: https://www.youtube.com/channel/UCnMn36GT_H0X-w5_ckLtlgQ Financial Growth Conference: https://financial-education2.teachable.com/p/building-wealth-conference-2019-presented-by-financial-education Join the private Real Estate Facebook Group: https://www.facebook.com/groups/therealestatemillionairemastermind/ The Real Estate Agent Academy: Learn how to start and grow your career as a Real Estate Agent to a Six-Figure Income, how to best build your network of clients, expand into luxury markets, and the exact steps I’ve used to grow my business from $0 to over $120 million in sales: https://goo.gl/UFpi4c First expectation: Real estate investing is passive. The reality is that creating the type of rental property to the point where it’s passive income takes a LOT of work. But the work is, at times, still ongoing. Eventually you’ll have a vacancy. Eventually you’ll need to fix things up again. Nothing will last forever. Sure, you can get a property manager who’ll handle much of this for you - but you will need to do SOME work yourself, even if it’s as small as choosing between finishes or approving bids on work. It won’t be an insane amount of work, but it will be something. So yes, real estate CAN be fairly passive…but it’s not passive if you don’t put in the work UPFRONT. Second Expectation: In order to invest in real estate, you need to do the repairs yourself or be a good handyman. The reality is that I can’t do anything besides change a lightbulb. While I do know some landlords who do the work themselves to save the money, this is absolutely not a requirement - and depending on how much your time is worth, it’s often cheaper just to pay someone else to do it the right way. It’s also worth noting that since all these repairs are a write off, you can write off the costs against your income…but, if you do the work YOURSELF, you cannot deduct the cost of YOUR OWN LABOR. Third Expectation: It takes a lot of money to start. The reality is that it often takes 10%-25% down to begin investing in real estate. This COULD be a lot depending on your definition of “ a lot,” and also on your area. Buying a property in Los Angeles would be significantly more expensive than in Kentucky, for instance. Where one person might be able to buy a property for $20,000 down, someone else might need $200,000. Fourth Expectation is that it’s often like the TV shows. The Reality is that it’s NOTHING like what they portray on TV. Oftentimes those TV shows will be loosely scripted around creating drama and creating a show that’s actually interesting enough to watch all the way through. Every episode needs a goal, a problem that arises, a solution to that problem, and then a resolution at the end. The real life problems that come up just aren’t that exciting or interesting. It’s often boring and mundane. The fifth expectation is that you’ll make a lot of money investing in real estate. The reality is that oftentimes one property won’t make you rich. Most mom and pop landlords won’t make a lot early on, but as they scale up, they can earn a significant amount of money from a lot of smaller sources. This is how many landlords start making money, enough to quit their jobs and invest in real estate full time. It’s growing your portfolio over one or two DECADES and accumulating those properties that might make you only $900 a month….but buy one of those every 18 months, and in 15 years you’re making $9000 per MONTH. That’s how most landlords make their money, and make a LOT of it. But the beginning will be slow and frustrating until you begin adding more and more to your portfolio. For business inquiries or one-on-one real estate investing/real estate agent consulting or coaching, you can reach me at [email protected] Suggested reading: The Millionaire Real Estate Agent: http://goo.gl/TPTSVC Your money or your life: https://goo.gl/fmlaJR The Millionaire Real Estate Investor: https://goo.gl/sV9xtl How to Win Friends and Influence People: https://goo.gl/1f3Meq Think and grow rich: https://goo.gl/SSKlyu Awaken the giant within: https://goo.gl/niIAEI The Book on Rental Property Investing: https://goo.gl/qtJqFq Favorite Credit Cards: Chase Sapphire Reserve - https://goo.gl/sT68EC American Express Platinum - https://goo.gl/C9n4e3
Views: 173819 Graham Stephan
The 5 things I wish I knew before becoming a Landlord...
 
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These are the 5 things I wish I had known before becoming a landlord, and why learning these NOW can make you a better real estate investor in the long run. Enjoy! Add me on Instagram/Snapchat: GPStephan Join the private Real Estate Facebook Group: https://www.facebook.com/groups/therealestatemillionairemastermind/ Get $50 OFF + FREE Coaching Call FOR A LIMITED TIME: Code THANKYOU50 - The Real Estate Agent Academy: Learn how to start and grow your career as a Real Estate Agent to a Six-Figure Income, how to best build your network of clients, expand into luxury markets, and the exact steps I’ve used to grow my business from $0 to over $120 million in sales: https://goo.gl/UFpi4c First, I wished I had treated it more like a business rather than a hobby. When I first started, I was 21 years old. At this point, I had been working as a real estate agent for a little over 3.5 years and even though I had been doing a lot of rentals for OTHER PEOPLE, I had never done it for myself. All of a sudden you have a hard time thinking objectively, you throw your own emotions into the mix, you have self doubt, you worry if what you’re doing is right, and there’s a blurred line between running this like a business vs a hobby…and when I started, I ran it like a hobby. Don’t do that. This brings me to my second point…keep things professional, and STICK TO THE CONTRACT. In the beginning, I treated the contract more like a guide…as long as you roughly followed it, that was fine. No, NO, NO. Do NOT do this. Enforce the contract word for word. The contract is written for a reason - there should be no misinterpretation from what’s allowed and what’s agreed on. This clarifies everyone’s expectations for not only the tenant, but also for the landlord. When that contract is signed, all parties must abide by it. The third thing I wish I knew was that I’d need to be on call 24/7. If there’s ever an emergency, I have my phone on me to handle anything as it comes up. Most situations that come up, even though I’m technically “on call 24/7,” just aren’t that urgent; usually little minor things that are usually sent over email and you can handle them when you have the time. The fourth thing I wish I knew is that anything that can possibly break, will break. As a landlord, you walk into the brutal reality that most people simply don’t care about how they live or how delicate something is. Just like you baby proof a house, you will need to renter-proof your house. This means making things indestructible. If something is likely to break, make sure you don’t spend too much money on it. Just buy good quality DURABLE, not high end BREAKABLE. This will prevent you from fixing and buying new things after every tenant. The fifth thing is that the biggest learning experience of all of them is simply dealing with people. On a bigger picture, deeper down, you really have to learn to communicate effectively, be ok with saying no, be okay with standing your ground, while still being able to hear the other person out. You need to learn how to explain yourself in a way that makes sense to the other person, without coming off as insensitive or inattentive. The other person needs to be heard and their thoughts validated before you can say what you want. Just like anything else, people skills are incredibly important and can make a huge difference in whatever business your in. For business inquiries or one-on-one real estate investing/real estate agent consulting or coaching, you can reach me at [email protected] Suggested reading: The Millionaire Real Estate Agent: http://goo.gl/TPTSVC Your money or your life: https://goo.gl/fmlaJR The Millionaire Real Estate Investor: https://goo.gl/sV9xtl How to Win Friends and Influence People: https://goo.gl/1f3Meq Think and grow rich: https://goo.gl/SSKlyu Awaken the giant within: https://goo.gl/niIAEI The Book on Rental Property Investing: https://goo.gl/qtJqFq Favorite Credit Cards: Chase Sapphire Reserve - https://goo.gl/sT68EC American Express Platinum - https://goo.gl/C9n4e3
Views: 21438 Graham Stephan
House Hack: How to live FOR FREE by investing in multifamily real estate
 
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House hack: Forget having to make a rent payment or come out of pocket for a mortgage every month. This is exactly how you can essentially live for free by investing in multifamily real estate as a primary residence. Plus - if do it right, you can literally GET PAID to live for free. Here's how. Learn how to make money as a Real Estate Agent, build your network of clients, and the exact steps I’ve used to grow my business from $0 to over $120 million in sales: $50 off with code ThankYou50 for a limited time: https://goo.gl/UFpi4c When you already have some savings and want to make the jump to becoming a home owner, one thing most people overlook is multi-family properties. These include duplexes, triplexes, and fourplexes. What makes this unique is that in addition to your unit, you have other units that you can freely rent out which can cover your entire ownership cost of the property. When you buy these properties correctly, your rental income from the other units will cover your entire mortgage, property taxes, insurance and repairs, essentially letting you live in one of the units for free. Not only that, but you can apply the rental income towards your loan, meaning you can often qualify for a much larger loan than normal. You’re also paying down your loan and building equity at the same time. My biggest recommendation to maximize the rental income is to look for vacant multi-family buildings that need cosmetic upgrades. This means you can immediately begin updating the property when you buy it - new floors, paint, bathrooms, landscaping are all cheap and make a significant improvement for rental income. Now of course, there are downsides of doing this. First of all, you will have to manage tenants and that can be a part time job in and of itself. You will also have some shared common areas - it’s not any worse than an apartment, but you will be in close proximity with your tenants. It’s not for everyone. But the good news is that when you’re ready to buy a house or upgrade, you can rent out your unit and you have a great cash-flowing rental property for you to keep long term. Essentially when this is paid off, it could be your retirement money that keeps cash flowing month after month. Or, you can live there long term and bank as much money as you can knowing that you don’t have be out of pocket every month for housing payments. Add me on Instagram: GPStephan Add me on Snapchat: GPStephan Suggested reading: The Millionaire Real Estate Agent: http://goo.gl/TPTSVC Your money or your life: https://goo.gl/fmlaJR The Millionaire Real Estate Investor: https://goo.gl/sV9xtl How to Win Friends and Influence People: https://goo.gl/1f3Meq Think and grow rich: https://goo.gl/SSKlyu Awaken the giant within: https://goo.gl/niIAEI The Book on Rental Property Investing: https://goo.gl/qtJqFq
Views: 389641 Graham Stephan
You’ll NEVER look at money the same way again…in under 4 minutes
 
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Ever since learning about compound interest and reading books like Rich Dad Poor Dad, my outlook on money forever changed. And If you view money the same way, you can pretty much guarantee you’ll never run out of money and you can make it generate cashflow to last a lifetime. Enjoy! Add me on Snapcaht/Instagram: GPStephan Without the clickbait: Here’s what it is. Let’s say I have $10,000 in my account. I don’t see that as just $10,000…instead, I see that as $700 per year, for life. Or almost $60 per month that I can live off of for as long as I’m alive. For me, I might get about a 10% return by investing in real estate. Inflation eats away about 3% per year, leaving me with a net 7% return on my invested money. Meaning that for every $100 I invest in real estate, I’ll make $7 per year in profit, while still having my original $100. Now everything I do and think about is calculated in future monthly profits. So that $20,000 car is really worth $116 per month in profit. If I’m making $50,000 per month, I don’t see that as $50,000 per month…that’s $291 per month for life, PER MONTH. Basically one month of that will pay for a lifetime of my Toyota Prius lease payment without me ever having to come out of pocket. It’s even more impressive if you decide to reinvest your money. If you just decided to re-invest the 7% income that $10,000 generates, over 25 years that 10,000 will have grown to almost $55,000 at the same 7% return. So now when I see something that costs $1000…I think, it’s that really worth $70 per year for life? Or is that really worth almost $5500 in future money? And usually for me the answer is no, I’d rather the $70 per year and just continue growing that $70 per year until I can afford whatever costs $1000 without ever having to come out of pocket. My investments should be able to cover anything I want to buy, and at that point, you know you’ve made it. Now that you see it, it’s hard to view things the same way. I can look at almost anything and imagine what that would generate me monthly. It’s pretty ridiculous. Because people always want to know what to invest in, I invest in rental property where a cash on cash return would generate about a 10% return, and I also invest in an SP500 index fund where it has historically returned about a 7.2% return adjusted for inflation. There are plenty of investments out there to chose from depending on your risk tolerance and how much you want to make…. Bitconnect ;) For business inquiries, you can reach me at [email protected] Suggested reading: The Millionaire Real Estate Agent: http://goo.gl/TPTSVC Your money or your life: https://goo.gl/fmlaJR The Millionaire Real Estate Investor: https://goo.gl/sV9xtl How to Win Friends and Influence People: https://goo.gl/1f3Meq Think and grow rich: https://goo.gl/SSKlyu Awaken the giant within: https://goo.gl/niIAEI The Book on Rental Property Investing: https://goo.gl/qtJqFq
Views: 96794 Graham Stephan
How to Invest $1.6 BILLION DOLLARS if you win the Mega Millions Lottery
 
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Have you ever been faced with the dilemma of what happens when you win the $1.6 Billion Dollar Jackpot, and you don’t know what you should do with all of that money? Here you go…enjoy! Snap/Insta: GPStephan Join the private Real Estate Facebook Group: https://www.facebook.com/groups/therealestatemillionairemastermind/ Get $50 off for a LIMITED TIME with code ThankYou50 - The Real Estate Agent Academy: Learn how to start and grow your career as a Real Estate Agent to a Six-Figure Income, how to best build your network of clients, expand into luxury markets, and the exact steps I’ve used to grow my business from $0 to over $125 million in sales: https://goo.gl/UFpi4c According to math, your chances of winning the lottery are a measly 1/302,000,000. To put that in perspective, you are 4 times more likely to be hit by an asteroid, and 431 times MORE likely to get struck by lightning than win the lottery. But that can’t stop us from dreaming, right? Now in order to understand what to do with this huge windfall, it’s first important to recognize why so many lottery winners go broke. It’s estimated that a THIRD of all lottery winners declare bankruptcy, and 70% lose all of it within just a few years. I discovered that type of person most likely to play the lottery in the first place had very little financial education and very little savings…hence, why they’re playing the lottery. It’s estimated that 40% of lottery ticket purchasers in California were unemployed. Then, you combine that with ALL of your friends and family then asking for handouts, risky investments, extravagant purchases, and it’s easy to see how winning the lottery could become so stressful. So what can someone do to potentially AVOID these issues? FIRST thing you should do IS TELL NO ONE. SECOND: Get an attorney. Many lottery winners chose to set up a blind trust, within a trust, to remain as anonymous as they can when they claim their prize. THIRD: Take the lump sum. When you look at the money invested over the long term, you’ll almost ALWAYS come out ahead after 29 years by taking the lump sum and investing it, than by getting the annuity. FOURTH: How to invest it? Assuming you took the lump sum of $1.6 billion dollars, you should be left with $900,000,000, and $450,000,000 net after taxes. Now if this were ME, here’s how I’d distribute this: $150,000,000 in a low-fee Total Stock Market Index Fund by Vanguard. Assuming you spend just 3% of this amount annually, that should give you about $375,000 per month in income without ever touching the principle. $150,000,000 in a low-fee Vanguard Total Bond Market Index Fund with Vanguard. This would give you a very safe, stable investment that you can rely on. It would also give us another $375,000 PER MONTH in stable income. $50,000,000 and spread that throughout some safe, triple-net commercial real estate in highly dense cities. Lets assume you only spent 3% of this income annually, that gives you another $125,000 PER MONTH in income. $100,000,000 and spread that throughout some safe RESIDENTIAL real estate, mainly large apartment buildings in densely populated cities. This is another $125,000 PER MONTH in income. $50,000,000 is the amount you now have over. I’d personally decide to keep $10,000,000 as a cash buffer, and then spend the remaining $40,000,000 on whatever you see fit. At the same time, your investments will also bring in a total of $1,000,000 PER MONTH pretty much indefinitely without ever touching the principle. For business inquiries or paid one-on-one real estate investing/real estate agent consulting or coaching, you can reach me at [email protected] Suggested reading: The Millionaire Real Estate Agent: http://goo.gl/TPTSVC Your money or your life: https://goo.gl/fmlaJR The Millionaire Real Estate Investor: https://goo.gl/sV9xtl How to Win Friends and Influence People: https://goo.gl/1f3Meq Think and grow rich: https://goo.gl/SSKlyu Awaken the giant within: https://goo.gl/niIAEI The Book on Rental Property Investing: https://goo.gl/qtJqFq Favorite Credit Cards: Chase Sapphire Reserve - https://goo.gl/sT68EC American Express Platinum - https://goo.gl/C9n4e3
Views: 37322 Graham Stephan
How I sold my first house at 19 for $3,550,000
 
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I began my real estate career at 18 years old by working as a Real Estate Agent in Los Angeles - without any connections or experience. This is my story about how I sold my first house, almost a year after I began my career, for over $3,500,000. I hope this story helps anyone who’s thinking about getting any real estate! Enjoy! Add me on Snapchat/Instagram: GPStephan For business inquiries, you can reach me at [email protected] Suggested reading: The Millionaire Real Estate Agent: http://goo.gl/TPTSVC Your money or your life: https://goo.gl/fmlaJR The Millionaire Real Estate Investor: https://goo.gl/sV9xtl How to Win Friends and Influence People: https://goo.gl/1f3Meq Think and grow rich: https://goo.gl/SSKlyu Awaken the giant within: https://goo.gl/niIAEI The Book on Rental Property Investing: https://goo.gl/qtJqFq
Views: 37505 Graham Stephan
The TRUTH about Fundrise Real Estate Investing
 
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Fundrise. Real Estate Investing with some pretty substantial returns. Is it worth it? Is it legit? Should you invest in it? Here’s what I discovered. Enjoy! Add me on Snapchat/Instagram: GPStephan Join the private Real Estate Facebook Group: https://www.facebook.com/groups/therealestatemillionairemastermind/ The Real Estate Agent Academy: Learn how to start and grow your career as a Real Estate Agent to a Six-Figure Income, how to best build your network of clients, expand into luxury markets, and the exact steps I’ve used to grow my business from $0 to over $120 million in sales: https://goo.gl/UFpi4c Fundrise is a real estate investing service that allows you access to private market real estate deals that they say should “deliver superior risk-adjusted returns over time versus a portfolio of publicly traded stocks.” The biggest difference is that Fundrise is NOT publicly traded on a stock exchange, but they are publicly available. By being publicly available, this means that anyone can invest because they comply with the SEC disclosure regulations, and by doing so, they don’t limit themselves to accredited investors So there’s gotta be a catch, RIGHT? So I read through all 225 pages of their fine print. Here’s what I found. First concern is lack of liquidity. By investing through Fundrise, you’re pretty much tying up your money for 5 years. Even though they say that if you pull out your money prior to then at their redemption rate, which is 97% at its lowest - they still make it very clear there is no guaranteed return of your investment with no immediate plan to buy back your shares. As from their fine print: “If we do not successfully implement a liquidity transaction, you may have to hold your investment for an indefinite period.” It goes on to say “Fundrise Advisors, LLC, our wholly-owned subsidiary, has the authority, in its sole discretion, to limit redemptions by each shareholder during any quarter, including if the Manager deems such action to be in the best interest of the shareholders as a whole.” Second concern I have is their fees…which they say are 1% annually. This seems a bit high compared to other lower cost options, namely a Vanguard REIT - which charges 0.26% annually as a fee, or 74% LESS than FundRise. But, in FundRise’s defense, they’re a smaller company which invests in riskier assets that should generate higher returns to compensate to the higher fee. My third concern - and also a major reason I’d never invest in this - is that the dividends are taxes as ordinary income at your ordinary income rate. One of the many advantages of holding long term investments is capturing the long term capital gains tax rate - this is typically SIGNIFICANTLY lower than the tax rate for ordinary income. My fourth concern is how this investment will hold up in a down market. While I agree with their market strategy and can’t find any faults with where they’re investing, at some point there will be a plateau in growth, while these returns are possible NOW, I’m unsure how sustainable these are long term - and again, if you want to re-balance your portfolio, you may be stuck with your investment. And they very much acknowledge this in their fine print: “The significant growth we have experienced, particularly with respect to assets under management and revenues, will be difficult to sustain.” Fifth, I’m always a little hesitant about companies that give referral fees. While often it’s a nice gesture to give customers SOMETHING for referring business, and I totally agree with this business model, in the age of the internet, there will be people out there who will write falsely positive reviews just to get the referral bonus. When this happens, honest criticism becomes buried or harder to find. For someone wanting exposure to real estate, I believe there are many other REIT options out there that offer the liquidity and tax treatment that put you in a much better position, even if they’ll give you slightly lower returns. I’d rather sacrifice a percent or two JUST to have access to my money when I need it. So overall, no it’s not a scam - and there are some positives about what they’re doing - but from what I see, the downsides just outweigh the upside, rendering other options as more attractive when put side by side. For business inquiries or one-on-one real estate investing/real estate agent consulting or coaching, you can reach me at [email protected] Suggested reading: The Millionaire Real Estate Agent: http://goo.gl/TPTSVC Your money or your life: https://goo.gl/fmlaJR The Millionaire Real Estate Investor: https://goo.gl/sV9xtl How to Win Friends and Influence People: https://goo.gl/1f3Meq Think and grow rich: https://goo.gl/SSKlyu Awaken the giant within: https://goo.gl/niIAEI The Book on Rental Property Investing: https://goo.gl/qtJqFq Favorite Credit Cards: Chase Sapphire Reserve - https://goo.gl/sT68EC American Express Platinum - https://goo.gl/C9n4e3
Views: 74184 Graham Stephan
Real Estate Revealed: How to AVOID Paying Taxes...(Legally, of course)
 
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Ever wondered how so many people seem to avoid paying taxes…legally, of course, when investing in real estate? Want to know how YOU can avoid paying taxes, legally? Here’s how - enjoy! Add me on Snapchat/Instagram: GPStephan Join the private Real Estate Facebook Group: https://www.facebook.com/groups/therealestatemillionairemastermind/ Get $50 OFF + FREE Coaching Call FOR A LIMITED TIME: Code THANKYOU50 - The Real Estate Agent Academy: Learn how to start and grow your career as a Real Estate Agent to a Six-Figure Income, how to best build your network of clients, expand into luxury markets, and the exact steps I’ve used to grow my business from $0 to over $120 million in sales: https://goo.gl/UFpi4c Number 1: The first is that pretty much anything in real estate that relates to your business is a write off against your income. Just about anything you related to the income you make on a rental property is a BUSINESS expense, and that’s subtracted from your total income - and you pay less taxes. Number 2: Depreciation. This is probably THE best write off in real estate. This is often how people can make thousands of dollars in profit every month, but on PAPER, they’re claiming they LOST money. In some circumstances you can even use this loss to offset other income you made! Number 3: This is probably the most well known, and probably one of the coolest write offs in real estate… but for those who aren’t familiar with it, this is the 1031 Exchange. One of the benefits of investing in real estate is that you can INDEFINITELY defer paying taxes when you sell a property, and “exchange” it for another property to avoid paying tax on your profit. Number Four: This would apply to most of you watching, especially if you own your own home, is the capital Gains exclusion. This capital gains exclusion means that you can make $250,000 TAX FREE PROFIT if you’re single, and $500,000 TAX FREE PROFIT if you’re married when you own a primary residence and have lived there for 2 of the last 5 years. Number 5: There’s no tax on appreciation until you sell. This is similar to owning a stock that goes up in value, you don’t pay taxes on that stock until you actually sell…until then, any profit you’ve made is called an “unrealized gain.” Same thing in real estate. If the property goes up in value 5% annually, your net worth goes up without you owning a dime in taxes. Number 6: The cash-out refinance and HELOC, which stands for Home Equity Line Of Credit. The benefit of this is that you get access to your money, totally tax free, without technically “making” money. In the eyes of the IRS, you don’t pay tax until you actually sell…and because you don’t sell, you don’t owe any tax. Same principle applies to a HELOC. All of the money you pull out is tax-free since technically it’s a loan and you need to pay it back. Number 7: Rental income doesn’t pay self employment taxes, which consists of social security and medicare taxes. This means that rental income, right off the top, is taxed 6.2% LESS than that same income you’d make from you job - or 15.3% less if you’re self employed, not even including all the deductions, tax write offs, depreciation…so you can see, real estate is a good way to make some money ;) Number 8: Mortgage interest deduction. Now this is a great one that not only applies to rental properties, where you simply just use that as an expense against rental income, but this also applies to your personal residence. The IRS says that you can deduct the interest you pay on up to $750,000 of your mortgage against your earned income, lowering the amount of taxes you’d owe. Finally…number 9…the holy grail for real estate people…is the title called “Real Estate Professional.” Becoming a “real estate professional” opens up a lot of advantages. The biggest advantage of being a real estate professional is that you can use your PAPER LOSSES to OFFSET other earned income! Remember: this is not financial advice, and CONSULT A CPA for any of your specific tax questions. Everyone is different and it’s important to hire someone for your own specific tax advice and needs. For business inquiries or paid one-on-one real estate investing/real estate agent consulting or coaching, you can reach me at [email protected] Suggested reading: The Millionaire Real Estate Agent: http://goo.gl/TPTSVC Your money or your life: https://goo.gl/fmlaJR The Millionaire Real Estate Investor: https://goo.gl/sV9xtl How to Win Friends and Influence People: https://goo.gl/1f3Meq Think and grow rich: https://goo.gl/SSKlyu Awaken the giant within: https://goo.gl/niIAEI The Book on Rental Property Investing: https://goo.gl/qtJqFq Favorite Credit Cards: Chase Sapphire Reserve - https://goo.gl/sT68EC American Express Platinum - https://goo.gl/C9n4e3
Views: 43735 Graham Stephan
Credit Cards 101: How to build your credit score ASAP and leverage your money
 
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This is one of the most important videos I’ve made so far: how to get a credit card, why you should care, what factors increase your credit score, and how that can ultimately help make you money. I got my first credit card at 21 years old, after banks turned me down for a loan on real estate - this is from my experiences building my own credit. Your credit score shows banks how responsible you are with your money. The scores range from about 300-850, with the best rates being available to those who have a score above 740. It shows banks how likely you are to potentially default on a loan and they adjust their interest rate according to their risk. They calculate your credit score based off several factors: -Length of credit history - the longer you’ve had it, the higher the score -How much credit you have available to you - the more money you have available, the higher the score -How much of it you actually use - the less money you use, the higher the score - this is called utilization rate -On time payments - if you’ve never had a late payment and always pay on time, the higher the score -The diversity of loans you’ve had - if you have variety of credit cards, auto loans, home loans, the higher your score. -Total inquiries - this means that every time you apply for a loan or credit card, it’s marked. The more times you apply, the higher risk you’re seen, since people who apply for a lot of credit in a short amount of time might be desperate for money, so this temporarily lowers your score. But lets not worry about this since for most people just starting, it won’t make a difference. Credit card misconceptions: -You do NOT need to pay interest to increase your credit score. Pay it off in full, you do not need to keep a small balance each month. -It does NOT hurt you to check your own credit score. I use CreditKarma regularly to keep track of my score and where it’s at. -It’s also false that having too many cards will decrease your score - the opposite is true. The more credit you have available, generally your debt-to-credit ratio will be a lot lower, which will increase your score. -Do NOT close out a credit card, especially if it’s an old account. When you close a credit card, it also closes all that credit history - which is a huge component of a good score. Keep your credit cards open even if you don’t use them, or if you pay an annual fee, see if they can downgrade the card to a free account. -NOT all debt is bad. There can be good debt - like a mortgage, or an auto loan where your money is better off invested somewhere else - or bad debt, which is that expensive Hawaiian vacation for $7000 that you couldn’t afford but you did it anyway because you put it on a credit card. Debt is a great way to leverage your money and have it work for you, earning MORE money in your investments than you pay off in interest. Now keep in mind, a credit card is something to use responsibly. Just put a normal amount on the cards each month as you would cash or a debit card, and pay it off in full. That’s it. It’s really, really simple. Eventually you can take advantage of great credit card rewards that’ll get you free trips and perks. Look up credit card churning for more information. My favorite credit cards: -Bank of America Cash Rewards: https://goo.gl/1xwB4B -Amex Gold Card: https://goo.gl/d2y4Gc -Chase Sapphire Preferred: https://goo.gl/Iq0BiX -Chase Sapphire Reserve: https://goo.gl/22mf4I Add me on Instagram: GPStephan Add me on Snapchat: GPStephan Thanks for watching!
Views: 350009 Graham Stephan
Couldn’t handle it...why I just hired a property manager
 
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The time has finally come. I finally hired a property manager while I invest in real estate, after 7 years of managing the my rentals myself. Here’s why and what led me to that choice - enjoy! Add me on Snapchat/Instagram: GPStephan Join the private Real Estate Facebook Group: https://www.facebook.com/groups/therealestatemillionairemastermind/ Get $50 OFF + FREE Coaching Call FOR A LIMITED TIME: Code THANKYOU50 - The Real Estate Agent Academy: Learn how to start and grow your career as a Real Estate Agent to a Six-Figure Income, how to best build your network of clients, expand into luxury markets, and the exact steps I’ve used to grow my business from $0 to over $120 million in sales: https://goo.gl/UFpi4c I ended up buying two houses and a triplex in late 2011 and early 2012. Since then, managing them has been extremely easy. For the most part, it took me 1-2 hours per MONTH of work to manage 5 tenants at the time. Most of this time was spent making sure rent had been paid, cashing rent checks, making sure bills were paid, and just generic accounting. If something broke, I’d just call a contractor to go out and fix it. I also rarely had vacancies.. My rental landlord philosophy was this… I generally don’t raise rent, unless it’s a unique situation or cash flow issue. For instance, on my original 3 properties, I’ve only raised rents when a unit becomes vacant. I’ve had some tenants since 2011 that are paying the SAME rent since back then. Am I leaving money on the table? Sure. But on the upside, I have really, really great tenants that take really good care of the place, treat it like their own, always pay on time, and are all around really awesome people, making it easy for me to manage. They have zero desire to move since they’re paying so much less than they would if they went somewhere else and in return, it’s easy for me. It’s a win win. But recently the unthinkable happened…a tenant had to move and relocate for work. And now my vacant place needed a little work - just minor fixes, re painting some stuff, etc. And finally, at that point, I thought about it…the time it would take for me to drive an hour each way just to go there, the time it would take to coordinate a walk through, meet and screen tenants, handle payment, etc…just wasn’t worth it. My time was better spent doing just about anything else. And finally, it clicked…I gotta hire a property manager, I just can’t handle it myself. So I did some research online, found a recommendation…did some negotiating back and forth for a day on prices between that and another company, and settled on a flat 8% management fee, everything included, and I moved forward. My reasoning now is that my time is way more valuable doing anything else other than managing a place, and the money I spend will save me more money that I can make elsewhere. So I did it…I hired a property manager for my first house. Now remember, I’m still managing my other 4…that’s really easy. But if I have another vacancy, the management company will get that one too. And eventually I’ll slowly phase the management company in to replace all the work I currently did. I’m only a month into this so far, but overall I like it. It’s amazing to be “Stress free” and have that distance between you and the tenant. I like that someone else handles it all, and all I have to do is simply just collect the check…I’m a little paranoid that something might fall through the cracks if I’m not micro managing it, but I’m doing my best just to let someone else take over. So that’s the story, and that’s why I hired a manager for one of my properties. If this goes well, I’ll slowly phase it in to everything else and have real estate investing become 1-2 hours per month more passive. For business inquiries or paid one-on-one real estate investing/real estate agent consulting or coaching, you can reach me at [email protected] Suggested reading: The Millionaire Real Estate Agent: http://goo.gl/TPTSVC Your money or your life: https://goo.gl/fmlaJR The Millionaire Real Estate Investor: https://goo.gl/sV9xtl How to Win Friends and Influence People: https://goo.gl/1f3Meq Think and grow rich: https://goo.gl/SSKlyu Awaken the giant within: https://goo.gl/niIAEI The Book on Rental Property Investing: https://goo.gl/qtJqFq Favorite Credit Cards: Chase Sapphire Reserve - https://goo.gl/sT68EC American Express Platinum - https://goo.gl/C9n4e3
Views: 41807 Graham Stephan
How I became a Millionaire in Real Estate by 26
 
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Here's my story of skipping college, pursing real estate sales at 18 years old, and becoming a millionaire by the time I turned 26. While this video mainly focuses on my successes, it wasn't easy and it came with many sacrifices along the way - but thankfully it all worked out in the end. Enjoy! Snapchat / Instagram: GPStephan Join the private Real Estate Facebook Group: https://www.facebook.com/groups/therealestatemillionairemastermind/ Get $50 OFF FOR A LIMITED TIME: Code THANKYOU50 - The Real Estate Agent Academy: Learn how to start and grow your career as a Real Estate Agent to a Six-Figure Income, how to best build your network of clients, expand into luxury markets, and the exact steps I’ve used to grow my business from $0 to over $120 million in sales: https://goo.gl/UFpi4c For business inquiries or one-on-one real estate investing/real estate agent consulting or coaching, you can reach me at [email protected] Suggested reading: The Millionaire Real Estate Agent: http://goo.gl/TPTSVC Your money or your life: https://goo.gl/fmlaJR The Millionaire Real Estate Investor: https://goo.gl/sV9xtl How to Win Friends and Influence People: https://goo.gl/1f3Meq Think and grow rich: https://goo.gl/SSKlyu Awaken the giant within: https://goo.gl/niIAEI The Book on Rental Property Investing: https://goo.gl/qtJqFq Favorite Credit Cards: Chase Sapphire Reserve - https://goo.gl/sT68EC American Express Platinum - https://goo.gl/C9n4e3
Views: 500419 Graham Stephan
Buying vs Leasing a Car 101: How to pick the BEST choice
 
11:34
Here’s a common questions I’m asked…is it better to lease or buy a car, and which one is a financially better move? I’ve done both, and these are my thoughts as to which one is better - enjoy! Add me on Snapchat/Instagram: GPStephan The short answer is that it really depends on your situation and how long you plan to keep the car, but I’ll describe the pros and cons of each and what might work best with you. Lets start with owning and buying a car. First of all, you can buy pretty much whatever car you want, unlike leasing where it’s almost always a new or newer car. Generally, unless you just buy your car outright in cash, you’ll end up financing the car. This is when you take the cost of the car, minus your down payment, and get a loan which you’ll pay off over a specific period of time - the most common being 48-72 months. And then you’ll also pay whatever state sales tax is on top of your purchase. Factor all that in…and then once you pay off your loan, congratulations - you own the car free and clear. And then when you go to sell it, you’ll get whatever price the car is worth - minus whatever you might still owe on the car. However, a few drawbacks of this - unless under warranty, you’ll generally be responsible for maintenance and wear and tear items during your ownership, especially on an older car, and this can add to the cost…you’ll also need to pay sales tax on the purchase price upfront…and totally separate from that, your monthly payments tend to be higher with owning than with leasing. Leasing generally works best if you’re the type of person who always wants to have a newer car every few years. If you plan to get one car and drive it forever to the ground… don’t lease your car. But depending on how long you plan to keep the car, leasing could actually save you money. With leasing, you’ll generally be leasing a brand new or newer car. You’ll usually have a down payment and then generally you’ll have a 24-36 month term where you have a fixed monthly payment, along with a set number of miles you can drive each year. You’ll need to return the car with your set amount of miles or less or risk paying fees and penalties. Now when you lease a car, you’re not paying the full amount of sales tax upfront - which can save you a TON of money. The lease price is determined but the depreciation the car is going to see during ownership, plus some finance charges. You’re basically just paying a monthly amount of the depreciation, rather than the entire cost of the car. Therefore, with leases, you’ll generally pay LESS per month to drive the car because your financing only the deprecation…not the entire thing like when owning a car. With a lot of leases, too, maintenance is often covered…so you can pretty much just pay a set monthly price and not have to worry about normal wear and tear/maintenance costs that come up. And when the lease is done, you don’t have the hassle of needing to sell it…you just turn it back and you’re done. So here’s my thoughts. Both leasing and owning have their own advantages and disadvantages, and what makes one better than the other is dependent on your situation. If you plan to keep your car more than 5 years or so…it’s almost always better to buy the car. Whether you buy a brand new car or an old used one, the longer you plan to keep the car, the more it starts making sense to buy it. But if you’re like me and you want the privilege of owning a new car every few years… it’s cheaper just to lease it - it means I pay less per month since I’m only paying for the depreciation, I don’t need to pay sales tax on the entire cost of the car - only on my monthly payment, and I can simply swap it out when the lease is done to get a new one. Ideally, for most people out there who just need a car to get from A to B…the BEST option is to buy a car that’s 3-5 years old and has already hit most of its depreciation. After about 5 years, most cars depreciate at a much, much slower pace - so buying a car like this and keeping it forever would be the most financially “sane” thing to do. Then just finance it at a low interest rate, re-invest whatever money you would’ve spent on the car, and hold it. Then when the car falls apart and you can’t drive it anymore, do it again. For business inquiries or one-on-one real estate investing/real estate agent consulting or coaching, you can reach me at [email protected] Suggested reading: The Millionaire Real Estate Agent: http://goo.gl/TPTSVC Your money or your life: https://goo.gl/fmlaJR The Millionaire Real Estate Investor: https://goo.gl/sV9xtl How to Win Friends and Influence People: https://goo.gl/1f3Meq Think and grow rich: https://goo.gl/SSKlyu Awaken the giant within: https://goo.gl/niIAEI The Book on Rental Property Investing: https://goo.gl/qtJqFq Favorite Credit Cards: Chase Sapphire Reserve - https://goo.gl/sT68EC American Express Platinum - https://goo.gl/C9n4e3
Views: 119308 Graham Stephan
The ULTIMATE Beginner's Guide to Investing in Real Estate Step-By-Step
 
19:28
Here's a Real Estate beginner tutorial where I can really cover the blueprints and outline the basics of what’s needed in order to prepare for, and actually invest in real estate. Enjoy! Snapchat/Instagram: GPStephan Join the private Real Estate Facebook Group: https://www.facebook.com/groups/therealestatemillionairemastermind/ The Real Estate Agent Academy: Learn how to start and grow your career as a Real Estate Agent to a Six-Figure Income, how to best build your network of clients, expand into luxury markets, and the exact steps I’ve used to grow my business from $0 to over $120 million in sales: https://goo.gl/UFpi4c Step 1: BUILD YOUR CREDIT. This is one of those steps that you can can do NOW. If you’re watching this and you don’t already have a credit card, when you’re done with this video, watch this: https://www.youtube.com/watch?v=ukaWAjgkH9M&t=30s Step 2: SAVE YOUR MONEY. The reality is that you can’t invest in real estate with no money down, no income, no credit…it just doesn’t happen. So this means that in order to save money, not only will you be required to live somewhat frugally so you don’t spend everything you make, but you will need to MAKE MONEY. I know this sounds common sense, but it’s at least every day that I get people asking how they can buy real estate without having any money…it doesn’t happen. Step 3: SHOW YOUR INCOME on a tax return. his means that you can’t just have one great month on Shopify and then expect to use that as a down payment…lenders want to see consistent, stable income before they give you a loan. Step 4: Get prequalified. It’s as easy as going to a few major banks, having them run your credit, giving them your tax returns, bank statements, and some other minor information…and they will give you a pre-approval amount based off those numbers. You can then take that pre-approval and shop that around a few other banks, getting them to match or beat those terms. Step 5: LOOK AT EVERYTHING IN THE MARKET YOU WANT TO BUY IN. Do your research. Find out which areas you feel are undervalued and where you feel people will be moving to. Drive around on weekends through every street and neighborhood. See every open house on a Saturday and Sunday within your price range, plus maybe a few hundred grand so you know what’s out there. The more you see, the better you’ll be able to recognize a good deal when it comes up. Step 6: Make offers on places you feel are a good deal. Know your price, know what it’s worth, and have patience. It’s more important to get the right property at a fair price than wait years trying to find the unicorn of a deal. Step 7: Do your inspections. I usually tell my clients to do all the inspections they can, and usually it’ll be a break even when you re-negotiate a credit with the seller. I also take it a step further and also walk two contractors through the unit who will give me a free bid on how much things cost to repair. This way, I know everything that’s “wrong” from a cosmetic standpoint and exactly how much it’ll cost to fix. Step 8: Close on the property. In the interim here, you’ll be speaking with your lender, getting in all the information they request from you, do an appraisal on the property to make sure it’s worth what you’re paying, and you close. Once the property is yours, this is where the fun begins! Step 9: Do minor renovations. Most people ask “where do you find your contractors?!” And my answer to this has always been Word of mouth, and yelp. Also make sure to get various bids to understand the costs associated with what you want to do, never just hire the first person. Step 10: Rent it out. Here’s how I post my ads on craigslist: https://www.youtube.com/watch?v=gy6JXJKZbSY&t=382s For business inquiries or one-on-one real estate investing/real estate agent consulting or coaching, you can reach me at [email protected] Suggested reading: The Millionaire Real Estate Agent: http://goo.gl/TPTSVC Your money or your life: https://goo.gl/fmlaJR The Millionaire Real Estate Investor: https://goo.gl/sV9xtl How to Win Friends and Influence People: https://goo.gl/1f3Meq Think and grow rich: https://goo.gl/SSKlyu Awaken the giant within: https://goo.gl/niIAEI The Book on Rental Property Investing: https://goo.gl/qtJqFq Favorite Credit Cards: Chase Sapphire Reserve - https://goo.gl/sT68EC American Express Platinum - https://goo.gl/C9n4e3
Views: 111074 Graham Stephan
Step By Step: How to make $100k your FIRST YEAR as a Real Estate Agent
 
20:21
Here’s how you can make $100,000 your first year as a real estate agent, step-by-step, and the process involved day-to-day to hit that goal. Enjoy! Add me on Instagram/Snapchat: GPStephan More information below... The Real Estate Agent Academy: Learn how to start and grow your career as a Real Estate Agent to a Six-Figure Income, how to best build your network of clients, expand into luxury markets, and the exact steps I’ve used to grow my business from $0 to over $120 million in sales: https://goo.gl/UFpi4c Join the private Real Estate Facebook Group: https://www.facebook.com/groups/therealestatemillionairemastermind/ Anytime you set a goal in real estate, it’s really important to work backwards in order to find out how to hit that goal. Figure out how much real estate you’ll need to sell, the average price of a home in your area, and how many people you’ll need to meet to make those numbers work. For simplicity sake, lets just say you need $5,000,000 in sales to net $100k. Look at the average purchase price of the area you want to work in, or are working in, and divide that number by $5,000,000. We will assume you will need 14 homes to hit $100k in net commission at $350k average price. The next step is to figure out how you’re going to sell 14 homes… And we’ll break it down further. In order to hit high sales numbers, you WILL need to prospect for business. It’s said that you’ll generally make about 1 sale for every 180 people you come in contact with. And by contact, I mean you actually have a conversation with them about real estate for the purposes of finding out if they want to buy or sell. So with that, to sell 14 homes…you’ll need to meet 2,520 contacts over the course of a year, or 210 per month. This also works out to be an average of 7 contacts per DAY. So how can you do this? Here’s my ideal recommendation: Going after expired listings: https://www.youtube.com/watch?v=0tLnH96hRqE&t=25s I’d also recommend holding open houses every single Saturday and Sunday. Just by doing this, you could easily meet another 3-20+ people in a few hours: https://www.youtube.com/watch?v=qh-EeRId3OU&t=77s The third option you can do is going after homes under construction. Walk in, find the contractor, and find out if the home is going to be sold or rented…if so, introduce yourself to the owner. Find out how much they want to list it for and bam…use this as an opportunity to pitch your services as a Realtor: https://www.youtube.com/watch?v=5Zqvhh0VHtg&t=1004s Finally, you can cold call or door knock for business. Especially if you’re aiming for a lofty goal of $100k in your first year, door knocking or cold calling will be pretty much required as you’re growing your business. You’ll need to build up a lot of contacts and a lot of experience quickly, and this is one of the best ways of doing this by just using your time. But one of the largest components of all of this…FOLLOW UP. Don’t be afraid of being annoying. You will NEED to do this…yes, some people will get annoyed, but those aren’t the people you want to work with, anyway. Because if you don’t consistently follow up, you will lose out on business and all of your hard work will be for nothing. Doing this consistently should lead you to about 14 sales, which should equate to $100k given a $350,000 sale price at 2.5% commission. If you’re in a higher priced area, this could actually lead to way more. Now with something like this, a few things that I should mention: When you’re just starting out, there’s a steep learning curve. You will mess up. You will make mistakes. That’s part of the process. It’s okay - it will take some time to find a balance of what works best with your style and personality. And finally, with something like this, personal work ethic matters a lot. The reason why most people fail is because they expect quick commissions or get into it for the wrong reasons. If you’re interested in real estate and really enjoy it, and have the self motivation to continue pushing through the times when you’re frustrated and feel like you’re not getting anywhere, you’ll do well. But how hard you push yourself will make the difference -you need to be consistent, and you need to be dedicated to hitting your numbers. For business inquiries or one-on-one real estate investing/real estate agent consulting or coaching, you can reach me at [email protected] Suggested reading: The Millionaire Real Estate Agent: http://goo.gl/TPTSVC Your money or your life: https://goo.gl/fmlaJR The Millionaire Real Estate Investor: https://goo.gl/sV9xtl How to Win Friends and Influence People: https://goo.gl/1f3Meq Think and grow rich: https://goo.gl/SSKlyu Awaken the giant within: https://goo.gl/niIAEI The Book on Rental Property Investing: https://goo.gl/qtJqFq Favorite Credit Cards: Chase Sapphire Reserve - https://goo.gl/sT68EC American Express Platinum - https://goo.gl/C9n4e3
Views: 39210 Graham Stephan
How to RETIRE EARLY
 
10:08
Ever wondered just how much money you’d actually need to in order to be Financially Independent, to quit your job, and retire early? Here’s the answer. Enjoy! Add me on Instagram/Snapchat: GPStephan Join the private Real Estate Facebook Group: https://www.facebook.com/groups/therealestatemillionairemastermind/ Get $50 OFF + FREE Coaching Call FOR A LIMITED TIME: Code THANKYOU50 - The Real Estate Agent Academy: Learn how to start and grow your career as a Real Estate Agent to a Six-Figure Income, how to best build your network of clients, expand into luxury markets, and the exact steps I’ve used to grow my business from $0 to over $120 million in sales: https://goo.gl/UFpi4c First, lets define “financially independent,” because this term means different things to different people. To me, it’s having enough money to support your current lifestyle without you ever needing to earn another dollar. It’s knowing that you’ll have a certain amount of money at your disposal every single month that covers your daily expenses without ever running out. For each of us, that number is different. For someone in rural Kentucky, maybe it takes $35,000 per year to cover all of your expenses…food, housing, entertainment, health insurance, just everything you’d ordinarily spend in a given year. For someone in New York City, maybe that number is closer to $90,000 per year…or maybe for a family of 5 in Southern California, it’s $125,000 per year. But what’s unique is that even though each of us will have a different level to what we’d consider financially independent, the math behind it stays exactly the same. For most situations, how much you need invested in order to retire is as simple as this: 25x your annual expenses. This means if you want to spend $50,000 per year, you’ll need 25 times that…or $1,250,000. You want to spend $80,000 a year? You’ll need 25x that, or $2,000,000 invested. Spend $100,000 per year = invest $2,500,000. In order to accurately do this, it requires you to really sit down and think about the lifestyle you want, how much it’s going to cost, and what you currently spend. By first going over your current expenses…and literally counting every cent that goes in and out of your account, you’ll get a great baseline as to how much you regularly spend on a monthly basis. From there, determine if there’s anything else you’d want and how much that will cost. Once you add everything up…multiply that number over 12 months…then multiply that by 25, and that’s how much you’ll realistically need to have saved. So how does this work exactly when it comes to financial independence? Well, that’s what’s known as the “Safe Withdrawal Rule” or “The Trinity Study.” This study suggests that you can withdrawal 4% of your total investment annually - which is usually studied as an investment portfolio consisting of 80% equities and 20% bonds, with a fairly high success rate of never running out of money. This means that for every $100 you invest, you can safely spend $4 of that each and every year for basically the rest of your life. . This study takes into account that you’re invested in 75%-80% in equities, like stocks of a corporation, and 20-25% of bonds, which represent a more stable, secure return. On average, a portfolio like this should return an average of about 7% annually adjusted for inflation over a 30+ year period. This means that your investment MAKES YOU 7% after inflation…you then spend 4%…leaving you with an extra 3% left over as a buffer for safety. And this is the basics of how this study is calculated. This takes about 100 years of historic data and market returns into account to determine a number that should be safe in the majority of market situations. For business inquiries or one-on-one real estate investing/real estate agent consulting or coaching, you can reach me at [email protected] Suggested reading: The Millionaire Real Estate Agent: http://goo.gl/TPTSVC Your money or your life: https://goo.gl/fmlaJR The Millionaire Real Estate Investor: https://goo.gl/sV9xtl How to Win Friends and Influence People: https://goo.gl/1f3Meq Think and grow rich: https://goo.gl/SSKlyu Awaken the giant within: https://goo.gl/niIAEI The Book on Rental Property Investing: https://goo.gl/qtJqFq Favorite Credit Cards: Chase Sapphire Reserve - https://goo.gl/sT68EC American Express Platinum - https://goo.gl/C9n4e3
Views: 24621 Graham Stephan
The Fastest Way to Build Wealth Investing in Real Estate: The BRRRR Strategy
 
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It’s no surprise that this is my favorite way to invest in real estate, and also one of the fastest ways you can grow your wealth….and this is called the BRRRR strategy of real estate investing. Enjoy! Add me on Snapchat/Instagram: GPStephan Learn my exact strategies to help grow your career as a real estate agent to a six-figure income, how to best build your network of clients, expand into luxury markets, and exactly what you can do to begin taking your career to the next level…these strategies took me to $120,000,000 in sales volume: https://goo.gl/UFpi4c Join the private Real Estate Facebook Group: https://www.facebook.com/groups/therealestatemillionairemastermind/ The BRRRR Method: This basically uses the equity and profit from one property to fund the next property through strategic leverage. And then the next property can fund the next one…and so on, until after a few years you’ve amassed an army of homes that just throw cash at your every month. 1. The first step is to buy a property, obviously. But the difference here is that you can’t just buy anything - the property not only needs to cash flow, but there needs to be some opportunity for equity. Your equity is basically just the amount of “worth” tied up in the property, minus your loan balance. So you either need to buy into equity by buying something BELOW what its market value is, or buying something where you can add equity with strategic renovations. Most deals won’t work - you need to be better than the average here and really become an expert in your area to spot the best deals, and the patience to wait around until that happens. 2. Renovate. Once you buy something, you’ll fix it up. Generally this is the best and easiest way to add value to a property. Most places that need work price themselves accordingly. Doing the work yourself saves you from paying someone else’s profit in managing a renovation, and often times you can renovate a property much cheaper than someone else will charge for doing the same thing. 3. The third step is rent…in that you now rent out the property. You should have had an idea of what price you’d get from the beginning when you bought the property, so it shouldn’t be a surprise what you can rent the property for. The property should rent high enough to pay off all of your expenses AND cash flow on top of it. Like I said, not every property will do this - you will need to find the 1/30 where it makes sense to buy, at the right price, that’ll rent for high enough, with enough equity to add to the deal. 4. NOW WE REFINANCE! This is where the bank pays off your previous loan, and gives you a NEW loan based off the new, higher value of the property. This means that you’ll have some “Cash at closing,” as it’s called. Now you pretty much got some money back, you have a cash flowing house, and you can do this entire process over again. 5. And then…you repeat the process and start over again with the next one! The advantage here is that every time you buy something under market value, you increase your net worth. By fixing it up, you increase your net worth and cash flow at the same time. The higher your net worth and the more equity in a property, the more banks are willing to lend you to do it again and continue to increase your cashflow. This is by far my favorite strategy, and you’ll finish this up with a trail of cash flowing properties behind you. Yes, it takes some work to identify and fix up a property - but it’s worth it. For business inquiries or one-on-one real estate investing/real estate agent consulting or coaching, you can reach me at [email protected] Suggested reading: The Millionaire Real Estate Agent: http://goo.gl/TPTSVC Your money or your life: https://goo.gl/fmlaJR The Millionaire Real Estate Investor: https://goo.gl/sV9xtl How to Win Friends and Influence People: https://goo.gl/1f3Meq Think and grow rich: https://goo.gl/SSKlyu Awaken the giant within: https://goo.gl/niIAEI The Book on Rental Property Investing: https://goo.gl/qtJqFq Favorite Credit Cards: Chase Sapphire Reserve - https://goo.gl/sT68EC American Express Platinum - https://goo.gl/C9n4e3
Views: 47068 Graham Stephan
How to get your Real Estate license and become a Real Estate Agent
 
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As a full time real estate agent since 2008, this is the most common question I get asked - so this is my video addressing anyone interested in getting into the real estate sales industry. It’s been the funnest “job” I’ve ever had and I couldn’t imagine doing anything other than working as a Realtor and investing in my own properties on the side. Feel free to add me on Snap/Insta: GPStephan Learn how to make money as a Real Estate Agent, build your network of clients, and the exact steps I’ve used to grow my business from $0 to over $120 million in sales: $50 off with code ThankYou50 for a limited time: https://goo.gl/UFpi4c Benefits of becoming a Realtor: -You don’t need a college degree -You make your own hours -You don’t have to be in an office all day -You can wear what you want, for the most part -You can directly control your income -You can meet people you’d never ordinarily meet -You get to see some crazy cool homes -You can represent yourself when you buy/sell your own properties -You get great tax advantages and tax deductions On the downside: -Many people fail -Many people never make money -Your income can be very sporadic (high highs, low lows) -The hours can be odd/inconsistent -Not everyone can handle working with people and multiple personalities You don’t need any prior knowledge in the real estate industry, although you will need to learn a significant amount as you go along. It also doesn’t take a ton of money to get started - as long as you have some savings to cover yourself until you start earning consistent money, which could be 6-12 months from when you start, the fees are manageable. The cost of actually becoming licensed could be as little as a few hundred dollars. It’s also a great career to start when you’re young - since you have very little overhead, it’s a great time to begin learning and honing your skills. By the time your older, you’ll already have established yourself in the industry. First step is getting your real estate license. The requirements vary from state-to-state, so google “How to get your real estate license in (your state here).” You’ll usually need to enroll in a real estate course which is generally about 135-hours of education. You can take it online (what I recommend) or in person. If you’re in California, I took my real estate license course from PremierSchools: https://goo.gl/IDVxCf (use code grstp for 5% off). www.AlliedSchools.com is also another great option, as is Kaplan for most other states in the US. Once you pass these courses, you’ll sign up to take your state test. This is what you’ll need to study for - generally there are plenty of exam cram products you can buy, many of which are helpful. Passing your tests and getting your license is easy. Really, really easy - the barrier to entry is very, very low. Actually making money is another story. Once you get your license, my BIGGEST recommendation is to work as an assistant to another Realtor. This will give you all the experience you need with very little risk, since you’re getting paid for your time. When you feel comfortable enough, you can go off on your own and begin working your own clients. Even if you have to intern for free to see if you like it, it’s worth it for the experience. If you decide to go off on your own, you’ll need to join a real estate brokerage as a new agent who will oversee your salesperson activity. My recommendation is to first find a brokerage that works in the area that you want to work in. If you want to work in the high end luxury market, find brokerages that work in the area you want to be in. Make sure that brokerage also offers training and support - this is crucial as a new agent who’s still learning. A good book I recommend is “the millionaire real estate agent” by Gary Keller. This pretty much covers everything you’d need to know! This can be bought here: http://goo.gl/TPTSVC Thanks for watching!
Views: 119787 Graham Stephan
$5500 per year to tax-free Millionaire: Why you need a Roth IRA
 
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This is one of those things I wished I would’ve learned and had done when I was younger - open up a Roth IRA retirement account. And because it saves you from paying taxes on your earnings and profits later on, I’m all about it. So this is what a Roth IRA is and this is why it’s so important to have one! Click “SHOW MORE” to read my full thoughts. Also feel free to add me on Snapchat / Instagram: GPStephan So here’s what it is - and because this confused me when I was younger, I’ll break it down as simple as possible. A Roth IRA is a type of investment account that you can set up where you invest your money today - up to $5500 per year with no immediate tax deductions - and can pull out your profits and earnings tax free when you’re 59.5. That means you pay NO TAX on YEARS of compounded interest and earnings. Your tax free profits just makes you MORE tax free profits. And it snowballs into a LOT of money. This is best done when you’re young for a few reasons…the money you invest in a Roth IRA is done post tax, which means taxes are already taken out of the money that you earn at the time you invest it. So if you make $20,000 from a job, you might be left with only $17,000 after paying taxes…so this $17,000 is now “post tax” money. The reason is best when you’re young is that chances are, you’re not earning a ton of money compared to what you WILL be earning. When you’re earning a lot of money, it’s about reducing what you owe in taxes because the more money you make, the more money you’re generally taxed. When you’re not earning a lot of money, you’re already in a lower tax bracket, so it’s advantageous to take advantage of that and pay the taxes now to invest - because in the future, you’ll hopefully earn a lot more money. Especially if you’re 18-30 and not earning a lot of money, this is PERFECT for you. When you start earning more money, there are other accounts that might make more sense for your situation. So here’s what I would do: If you’re under the age of 18 and have a job that you’re making money with, you can ask your parents to open a Roth IRA account for you. From there, you contribute money you’re making from your job - keep in mind you cannot contribute more than you earn, so if you earn $1000 that year, you can only contribute $1000. If you’re over the age of 18, right after this video is done, just go online and sign up for a Roth IRA. I use Vanguard and they’re awesome, many people use Charles Schwab or Fidelity - just make sure the account has low fees. You can contribute up to $5500 of earned income every year - if you make too much money, you can look into doing a backdoor Roth IRA contribution. I recommend putting in as much as you can afford and forgetting about it. The advantage is that since there’s compounded interest, the sooner you put your money in, on average, the more you’ll have by the time you retire. Is this a boring investment strategy? Yes. But it’s effective. I recommend just doing this on the side with what you can afford, while continuing to invest elsewhere or investing in yourself. Just to give you some ideas, if you invest $1000 per year at 18 and retire at 60, you’ll have $264,000…of that, you only contributed $43,000 over 42 years, meaning you just made $221,000 of tax free money. If you invest $2000 per year at 18, same situation as above, you’ll have invested $86,000 and made $444,000 of tax free money. If you invest the maximum right now of $5500 per year at 18 years old, you’ll have invested $231,000 and made over $1,200,000 in tax free money. If you just do $5500 per year at 18 years old, you can retire a millionaire without doing anything else. This average figure includes inflation, by the way. I hope this video helps and that this sets you up for future financial independence. Add me on Snapchat: GPStephan Add me on Instagram: GPstephan For business inquiries, you can reach me at [email protected] Suggested reading: The Millionaire Real Estate Agent: http://goo.gl/TPTSVC Your money or your life: https://goo.gl/fmlaJR The Millionaire Real Estate Investor: https://goo.gl/sV9xtl How to Win Friends and Influence People: https://goo.gl/1f3Meq Think and grow rich: https://goo.gl/SSKlyu Awaken the giant within: https://goo.gl/niIAEI The Book on Rental Property Investing: https://goo.gl/qtJqFq
Views: 449308 Graham Stephan
The EASIEST way to Invest in Real Estate
 
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If you’ve been thinking about investing in real estate but not quite sure where to start, start here. This video is for everyone who’s ever asked me: what’s the easiest way to get into real estate investing and build a million dollar portfolio. Enjoy! Add me on Insta/Snap: GPStephan Learn how to start and grow your career as a Real Estate Agent to a Six-Figure Income, how to best build your network of clients, expand into luxury markets, and the exact steps I’ve used to grow my business from $0 to over $120 million in sales: https://goo.gl/UFpi4c Join the private Real Estate Facebook Group: https://www.facebook.com/groups/therealestatemillionairemastermind/ The best way to get into real estate investing is through what I call “house hacking,” which is a practice in which you buy a multi-family building, move in one unit, then rent out the others. When done correctly, this could eliminate all of your housing costs, allowing you to live for free in the property - plus you’re investing your money in real estate and building equity, and depending on the area, sometimes you can even make a little profit each month at the same time. Plus by buying the property as a primary residence, you can quality for much better loan terms and lower down payment than if you were just buying an investment property - which allows you a little more flexibility and leverage on your money. Now if it sounds too good to be true, kinda… there’s a bit of a catch - you’ll need a down payment. You might be able to qualify for low down payment amounts, but I’m generally seeing most people needing to put around 15-20% down. You’ll also need a stable income, meaning you’ll likely need two years of tax returns. And you’ll also need a good credit score. Those three things will need to be in order for you to do this. Video summed up: 1. Start where you live. Unlike investing out of area, when you invest near where you live, you already know which areas are good and bad. You can see firsthand which areas are improving the most. Which areas people want to live in. Where the most demand is. Where businesses and people are moving to. It’s this knowledge that gives you a huge advantage over everywhere else where you might not be as familiar. 2. Buy something that needs work. As a beginner, I recommend finding something that just needs to be cosmetically updated - these are often easy, surface-level repairs that can be done in a few weeks or months that have a pretty good ROI. It just means re-doing floors, re-painting, light landscaping, maybe updating a kitchen or bathroom…very easy things that most contractors will be capable of doing. 3. Understand cash flow and which properties make sense to buy. Most places will not work. Understand everything about cash flow, building up equity, tax write offs, and your net return after expenses. 4. Buy a multi-family property that needs minor cosmetic work. 5. Renovate it and by doing so, you’ll usually end up building extra 6. Rent out the other units and live in one of them yourself 7. After a few years, buy another multi-family building and rent the unit you were living in 8. Continue repeating this process every several years, building up a portfolio of investment real estate. 9. PROFIT. Thanks so much for watching! Hope this helped, and make sure to smash that like button ;) For business inquiries or one-on-one real estate investing/real estate agent consulting or coaching, you can reach me at [email protected] Suggested reading: The Millionaire Real Estate Agent: http://goo.gl/TPTSVC Your money or your life: https://goo.gl/fmlaJR The Millionaire Real Estate Investor: https://goo.gl/sV9xtl How to Win Friends and Influence People: https://goo.gl/1f3Meq Think and grow rich: https://goo.gl/SSKlyu Awaken the giant within: https://goo.gl/niIAEI The Book on Rental Property Investing: https://goo.gl/qtJqFq Favorite Credit Cards: Chase Sapphire Reserve - https://goo.gl/sT68EC American Express Platinum - https://goo.gl/C9n4e3
Views: 46918 Graham Stephan
What it's ACTUALLY like to be a Millionaire in your 20's
 
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I think there’s a very false idea of what it’s like to be a Millionaire in your 20’s…so here is an honest, real-world experience of what it’s like to be a self-made millionaire by the time I was 26. Enjoy! Add me on Instagram/Snapchat: GPStephan Learn how to start and grow your career as a Real Estate Agent to a Six-Figure Income, how to best build your network of clients, expand into luxury markets, and the exact steps I’ve used to grow my business from $0 to over $120 million in sales: https://goo.gl/UFpi4c Join the private Real Estate Facebook Group: https://www.facebook.com/groups/therealestatemillionairemastermind/ So let’s start with the positives from it all: Hitting a million was a bit of an ego-boost. It was a sense of accomplishment. In terms of achieving a goal, it felt good - but nothing changed. I don’t buy designer clothes. I don’t travel first class. I don’t eat out at expensive restaurants. I buy most of my clothes on Black Friday sales. I shop around for the best deals. I make eggs for dinner. I don’t buy anything I don’t need. I keep my expenses low…and that’s how I like it. And it was these habits that made me a millionaire in the first place. The biggest aspect of hitting this milestone was a sense of freedom. It was the freedom of knowing that as long as I had this money invested, I’d never have to work a job I disliked and I’d never have to do anything I really didn’t want to do. Just knowing that you could decide to pursue anything is just as enjoyable as pursuing anything. Once you have the freedom or choice to walk away, it leaves you in a position of being the decision-maker in life. And just as a byproduct of that, you tend to enjoy things more and coincidentally, you tend to do better and make more money. But now lets talk about the bad…just kidding, there is no bad ;) But ok in all seriousness… It took me awhile to think of this part, because I haven’t really noticed any downsides yet. I don’t think I’ve been at quite the level where money really has a big impact negatively, so I had to stretch this a little just to come up with something… The first is that I’ve gotten used to a larger-than-normal income, so it doesn’t seem like a lot me. What I consider a bad month of income could be someone else’s best month ever, and it’s difficult to put that in perspective when you’re used to earning a certain amount, and everyone you’re around earns a certain amount, and you lose touch of what’s normal. On the other hand, because I never really “spend” my money, my tolerance for what I consider “a lot” is really, really low…so even though my income is high, the idea of spending $35 on a dinner just seems absurd to me. Or spending more than $20 on gas at a time just seems like a waste…and this is because even though my income went up, I’d get used to it, but I’ve kept my spending at the exact same level as when I was 20 or so. So there’s a big disconnect between what I consider a lot in “income,” and what I consider a lot in “spending.” But if I didn’t have those frugal spending habits to begin with, I wouldn’t have saved and invested so much, so it was a bit of a necessity. Which brings me to my second point…one thing that comes up that sometimes annoys me is that frugality is now somehow frowned upon once you can afford something. Like if I’ll go out and only order one drink because I don’t want to spend the extra money, I get the “oh dude, just get another, you can afford it.” But the only reason I got to this place was because I was hyper-focused on my money and how I spent it. If I ever resist spending money, I’m somehow cheap. There’s a reason why lotto winners go broke…the spending habits to become a millionaire are the exact same to STAY a millionaire. But besides those few small things, really, nothing changed. I didn’t change my spending habits, it was really quite uneventful. In fact, I’m sure it’d be rather disappointing for anyone who expects there to be some magic thing that happens once you cross the million dollar mark. The reality is that you hit it, you figure you’re doing something right, so you continue to do what works while building up a bigger nest egg. For business inquiries or one-on-one real estate investing/real estate agent consulting or coaching, you can reach me at [email protected] Suggested reading: The Millionaire Real Estate Agent: http://goo.gl/TPTSVC Your money or your life: https://goo.gl/fmlaJR The Millionaire Real Estate Investor: https://goo.gl/sV9xtl How to Win Friends and Influence People: https://goo.gl/1f3Meq Think and grow rich: https://goo.gl/SSKlyu Awaken the giant within: https://goo.gl/niIAEI The Book on Rental Property Investing: https://goo.gl/qtJqFq Favorite Credit Cards: Chase Sapphire Reserve - https://goo.gl/sT68EC American Express Platinum - https://goo.gl/C9n4e3
Views: 71450 Graham Stephan
How I saved over $300,000 in 2017 - How to Save Money 101 (Five Steps)
 
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These are the 5 steps I use when it comes to saving money. The best part about it…it doesn’t even feel like saving because it’s that simple. Enjoy! Add me on Snapchat/Instagram: GPStephan NICOLAS CAGE PILLOWCASE (They just raised the price): http://amzn.to/2BwYC2a Learn how to make money as a Real Estate Agent, build your network of clients, and the exact steps I’ve used to grow my business from $0 to over $120 million in sales: $50 off with code ThankYou50 for a limited time: https://goo.gl/UFpi4c Join the private Real Estate Facebook Group: https://www.facebook.com/groups/therealestatemillionairemastermind/ So how to save money in 2018? The thing is, at the end of the day, it really doesn’t matter how much money you make, it’s how much of that you can keep - whether you make $50,000 or $500,000 - if you spend it all, you’ll have nothing left to show for it. That means you’ll have to go back to work the next day and start over after every paycheck, just to replenish whatever money you’ve spent. If you don’t mind continuing to work and trading your time to pay for these things, fine…but for the rest of us that don’t want to rely on a job to pay for the things that really matter the most, it all begins with saving. And these are the easiest ways to save, without really feeling like you’re saving… 1. Buy it tomorrow - not in the moment This helps cut down on impulse purchases. Waiting a day to buy something, often times the excitement of buying something new will wear off and you’ll be able to decide with a clear mind if it’s something you should really buy. 2. f you’ve waited a day to buy it, then ask yourself: If someone were to offer me this product or its cash value, which would I take? This has cut down on a LOT of the purchases I would’ve made, because frankly, I’d just rather have the cash. This just helps put things in perspective and really focus on what you’d rather have…cash, or the item. 3. How many hours will I have to work to afford this? If you’re making $15 per hour, spending $45 on a dinner is basically costing you 3 hours of your life. Spending $300 on a new pair of shoes is equivalent to 20 hours of your life…just for a pair of shoes. Spending $12 on a Nicolas Cage Pillow Case is going to cost you 50 minutes of your time…decide from here if this is really worth it to you. 4. Set aside what you save This is my favorite one of all…lets say decided “I don’t need that Nicolas cage pillow.” I’ve just saved $12. As a “reward” for saving that amount, I’ll just transfer that money in a separate account where I’ll later invest it. That way it’s just fun to see all the ways I cut back, and all of a sudden I have thousands of dollars sitting in bank account from money I’ve just decided wasn’t worth spending on Nicolas Cage Pillows. You can do the same thing. Lets say you decide to order a $15 meal instead of a $50 meal that you would’ve otherwise got…take the $35 difference, put it away, and later invest it. It’s like an immediate reward for not spending. 5. See everything in its future value When you invest your money, it’ll grow - so when you spend this money, you’re basically just halting the growth that money would’ve made you. If you invest the cost of the Nicolas cage pillowcase of $12 over 35 years at an 8% return…that means the $12 pillow is really worth $177. I’d rather have the $177 because I won’t get that much value from the pillow case. Everything you do has a future value. Determining what it is. Thanks for watching! For business inquiries or one-on-one real estate investing/real estate agent consulting or coaching, you can reach me at [email protected] Suggested reading: The Millionaire Real Estate Agent: http://goo.gl/TPTSVC Your money or your life: https://goo.gl/fmlaJR The Millionaire Real Estate Investor: https://goo.gl/sV9xtl How to Win Friends and Influence People: https://goo.gl/1f3Meq Think and grow rich: https://goo.gl/SSKlyu Awaken the giant within: https://goo.gl/niIAEI The Book on Rental Property Investing: https://goo.gl/qtJqFq
Views: 11086 Graham Stephan
How this 96-year-old Secretary grew a $9,000,000 Fortune
 
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This is a great example of what can come when someone invests often and lives frugally, while only earning a modest salary working a 9-5 and how that can snowball into something massive, to the tune of over $9 million dollars over the course of a lifetime. Enjoy! Snap/Insta: GPStephan Join the private Real Estate Facebook Group: https://www.facebook.com/groups/therealestatemillionairemastermind/ The Real Estate Agent Academy: Learn how to start and grow your career as a Real Estate Agent to a Six-Figure Income, how to best build your network of clients, expand into luxury markets, and the exact steps I’ve used to grow my business from $0 to over $120 million in sales: https://goo.gl/UFpi4c Original Article Here: https://www.nytimes.com/2018/05/06/nyregion/secretary-fortune-donates.html This story is about a woman named Sylvia Bloom, from Brooklyn, New York. She worked as a secretary for a Law Firm. She made a modest salary. She took the bus and subway to get around. She never flexed on them haters. She also accumulated a fortune of about $9,000,000. She grew up in Brooklyn New York during the Great Depression. In 1947 she began working at a Law Firm as one of its first employees, where she ended up working for 67 years until she retired at 96 years old. But how she lived day-to-day is an indication of how she became so wealthy. They lived in a Rent controlled apartment. She took the Subway to work. She’d opt to take the bus over spending the money for a cab. She never talked money, never called attention to herself, and she lived extremely modestly. This allowed her to secretly invest her money, instead. She’d save her money, live modestly, and invest everything she could. In her lifetime, thanks to compound interest, this lead to over a $9,000,000 Fortune…$8.2 million of which was donated to charity for college scholarships. This story isn’t unique, either - there are plenty like it that almost carry the exact same storyline. Leonard Gigowski is another example: https://www.jsonline.com/story/news/columnists/jim-stingl/2017/11/21/stingl-frugal-alum-gives-thomas-more-students-13-million-reasons-say-thanks/882913001/ The left $13,000,000 to charity upon his death. He worked as a Navy Cook during World War 2 and shortly after worked as a meat cutter. That company gave him company stock, which he held on to - and later opened up his own grocery store. He expanded to a night club and rental properties over his lifetime, but maintained a frugal lifestyle. When he passed away at the age of 90, his thrifty living and investing habits left him with $13,000,000 which he donated to charity. Or Grace Groner, another secretary who amassed a $7,000,000 fortune for charity by the time she passed away: http://www.businessinsider.com/an-old-ladys-three-60-shares-from-1935-are-now-worth-7-million-2010-3 Like our other two examples, she didn’t have a high income - but she lived modestly and invested her money. In 1931 she began working for Abbot Laboratories, and in 1935 she saved up enough money to buy three shares worth $180.00….and she never sold them. Despite the stock skyrocketing in price, she never increased her lifestyle. She never bought expensive things. She lived in a small apartment for most of her life. And during her retirement from the company, she’d spend some money on travel and would actively volunteer…but she never touched the principle of her investment. And that led a $7,000,000 donation for college scholarships when she passed away. This is really the power of three things: One, it doesn’t matter how much you make, it matters how much you save. In all of our examples, they didn’t have an extremely high income - they just saved and invested consistently. Two, time in the market - not timing the market, is most important. These were people who didn’t think “the stock market is too high, I’m waiting for a crash” - they just bought and held. And three: the power of long term compound interest. Starting off with investing $100 per month isn’t much…but over decades, this can grow into something substantial. So I’d hope that stories like this can give you hope that even though you might not be making a lot of money right now, the possibilities are limitless long term. For business inquiries or one-on-one real estate investing/real estate agent consulting or coaching, you can reach me at [email protected] Suggested reading: The Millionaire Real Estate Agent: http://goo.gl/TPTSVC Your money or your life: https://goo.gl/fmlaJR The Millionaire Real Estate Investor: https://goo.gl/sV9xtl How to Win Friends and Influence People: https://goo.gl/1f3Meq Think and grow rich: https://goo.gl/SSKlyu Awaken the giant within: https://goo.gl/niIAEI The Book on Rental Property Investing: https://goo.gl/qtJqFq Favorite Credit Cards: Chase Sapphire Reserve - https://goo.gl/sT68EC American Express Platinum - https://goo.gl/C9n4e3
Views: 10514 Graham Stephan
Meet Kevin: He owns $4.5 MILLION worth of Real Estate by age 25
 
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Meet Kevin - he’s a Real Estate Agent and Investor in Ventura, California. This is how he was able to accumulate $4.5 Million Dollars worth of Investment Real Estate by the age of 25, while also working full time as a Real Estate Agent - Enjoy! Add me on Snapchat/Instagram: GPStephan Learn how to start and grow your career as a Real Estate Agent, how to best build your network of clients, expand into luxury markets, and the exact steps I’ve used to grow my business from $0 to over $120 million in sales: $50 off with code ThankYou50 for a limited time: https://goo.gl/UFpi4c Join the private Real Estate Facebook Group: https://www.facebook.com/groups/therealestatemillionairemastermind/ Kevin's Channel: https://www.youtube.com/user/KevinPaffrath For business inquiries or one-on-one real estate investing/real estate agent consulting or coaching, you can reach me at [email protected] (Do not send me random questions here - the youtube comments are best. This email is for business or paid real estate coaching inquiries ONLY) Suggested reading: The Millionaire Real Estate Agent: http://goo.gl/TPTSVC Your money or your life: https://goo.gl/fmlaJR The Millionaire Real Estate Investor: https://goo.gl/sV9xtl How to Win Friends and Influence People: https://goo.gl/1f3Meq Think and grow rich: https://goo.gl/SSKlyu Awaken the giant within: https://goo.gl/niIAEI The Book on Rental Property Investing: https://goo.gl/qtJqFq Favorite Credit Cards: Chase Sapphire Reserve - https://goo.gl/sT68EC American Express Platinum - https://goo.gl/C9n4e3
Views: 52940 Graham Stephan
Exposed: RoofStock’s TurnKey Real Estate Investing
 
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As highly requested, here are my thoughts on Roofstock’s Turnkey Real Estate Investing, and some of the advantages and disadvantages through investing with them - enjoy! Add me on Snapchat/Instagram: GPStephan Join the private Real Estate Facebook Group: https://www.facebook.com/groups/therealestatemillionairemastermind/ Get $50 OFF + FREE Coaching Call FOR A LIMITED TIME: Code THANKYOU50 - The Real Estate Agent Academy: Learn how to start and grow your career as a Real Estate Agent to a Six-Figure Income, how to best build your network of clients, expand into luxury markets, and the exact steps I’ve used to grow my business from $0 to over $120 million in sales: https://goo.gl/UFpi4c For those that aren’t aware, RoofStock is a pretty cool concept. It’s a website that analyzes single family properties positioned as rentals. The advantage for buyers is that they can access homes with renters already in them, allowing them to buy a property with immediate, predictable cashflow. The advantage to the seller is that you can sell your property with the tenant already living in the house, thereby not losing out on any rental income during the selling process. From the BUYER perspective of things, I have to say, I really, really, like the layout a lot. The ability to go online and play with the numbers and instantly see how they affect your cash flow is awesome. Roofstock also has a “30-day money back guarantee,” where Roofstock will buy back the property if you’re unsatisfied with the purchase. Even though the process seems very streamlined, one of the biggest flaws I see if that it doesn’t appear like you can do your own inspections on the property. They have their own certification process and they will provide you with their own inspection reports and due diligence for you to review. My second concern is that these properties don’t seem like they’re really in prime locations. Now prime location is certainly subjective depending on who’s looking at it, but from the way I see it, these are mainly cash flowing properties. The third downside I see with this is that there’s not really any room for improvement. I understand that this isn’t Roofstock’s target audience, and they’re going after the laid back investor who just buys and sits back…nothing wrong with that…but a buyer could get MUCH more value by buying a property, remodeling it, and renting it out themselves for a higher price than buying something turn key. Some seller issues I could see: Not having a sign out front of your house. Having a sign out front makes people aware that there’s a home being sold. The more exposure a home gets, the better. Second downside…the property isn’t listed on the MLS. Again, exposure gets homes to sell at higher prices. And by not listing on the MLS, they’re excluding a LOT of buyers from even seeing that home to begin with. Third downside, because you’re selling the home occupied with a tenant, your buyer pool is very, very small. You’re immediately excluding all the families that might want to buy that home just to live in, themselves. So given that, honestly, I don’t really see it being a bad service. I’m pretty neutral about it. For buyers, it would be nice to do your own inspections and due diligence…and also to get the best bang for the buck, it’s definitely worth it to do the work yourself…but I get that not everyone has the time or interest in doing that, and if they’re okay paying a premium for turnkey properties, nothing wrong with that. I’m not a fan of the areas they have listed, they all seem too remote for me…which carries its own risk in desirability and the ability to re-rent the home, but that’s all subjective. It’s really, really important for a buyer to do their research into how easy the home will be to re-rent during a vacancy, and how well the areas are poised to grow…if any. For sellers, I suppose if you want an easy, hassle free, streamlined process for sale…it seems decent. But, I also believe that you’re leaving money on the table by ONLY appealing to investors, NOT listing on the MLS, and NOT allowing for private showings. But like I said…overall, it seems decent. I like their guarantee. I like their calculators. Would I personally use it? I really doubt it. Do I think it’s a decent place to start? It can be. For business inquiries or paid one-on-one real estate investing/real estate agent consulting or coaching, you can reach me at [email protected] Suggested reading: The Millionaire Real Estate Agent: http://goo.gl/TPTSVC Your money or your life: https://goo.gl/fmlaJR The Millionaire Real Estate Investor: https://goo.gl/sV9xtl How to Win Friends and Influence People: https://goo.gl/1f3Meq Think and grow rich: https://goo.gl/SSKlyu Awaken the giant within: https://goo.gl/niIAEI The Book on Rental Property Investing: https://goo.gl/qtJqFq Favorite Credit Cards: Chase Sapphire Reserve - https://goo.gl/sT68EC American Express Platinum - https://goo.gl/C9n4e3
Views: 13220 Graham Stephan
How to make TAX FREE MONEY in Real Estate
 
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Here’s how to basically earn tax free money in real estate. Since it’s a subject so many people get confused on, I’ll do my best to break it down as simply as I can from beginning to end. Enjoy! Feel free to add me on Snapchat / Instagram: GPStephan Here’s the situation using some simple numbers. You buy a property for $100,000. You spend $20,000 fixing it up. The home is now worth $170,000. This means that you’ve just gained $50,000 of EQUITY in the home…your $120,000 price + $50,000 gained = $170,000 value. What is equity? Just think of it like an unrealized gain, like if you hold a stock and it goes from $100 to $150…that extra $50 is an unrealized profit until you sell it…what is unrealized? That means you haven’t sold yet and are still holding on to the asset.    Since you now have an UNREALIZED gain in real estate and the home is worth MORE than you bought it for, you’re able to borrow against that gain. So in this case of $50,000…you’re able to get a LOAN against your $50,000 profit, using that equity as collateral. Now the way taxes work is that you’re only taxed when you SELL the property…just the same as stocks or cryptocurrency, you’re taxed at the time of selling and then those are REALIZED profits. So if you had a $50,000 GAIN when you sold the property, you’d then have to pay taxes on that income…but if you get a LOAN, even if you wind up with money back in your pocket, the IRS treats that as just a shift in assets. Because you just received a loan, you never “realized” your profits by selling. Because there was only a shift in assets and debts and not a change in the REALIZED net worth when you sell, the IRS does not consider the pulled-out cash income. When you receive cash out in a refinance, the IRS recognizes that you have to pay it back, and so you really haven't “made”  any income.  The thing is, since this is a loan, you still have to pay it back over the term of your loan. And this frees up the money you would have tied up in a property, and opens it up to be reinvested at a higher rate or into something else. The purpose of doing this should be to buy more investments that produce a HIGHER return than what you’re paying out in interest..and the refinanced property should generate the income to support the new mortgage. If this doesn’t happen, it begins getting risky…you shouldn’t over leverage yourself to a point where you owe more than you can handle, BUT, if used correctly, you can leverage yourself a lot of extra money to invest with. This is what’s known as a cash-out refinance and how you can use your equity in a property for tax free money. This method of real estate investing is also known as the BRRRR method of real estate investing. Buy. Rehab. Rent. Refinance. Repeat. It’s a way of “cashing out” without actually cashing out…then using those proceeds to continue investing in more properties. Each property generates equity, each time you use that equity to buy another, which continues the process. I like this method because it’s a long term approach that grows a lot over time. But like I said, I’ll get into this in another video in more detail. Thanks for watching! For business inquiries or one-on-one real estate investing/real estate agent consulting or coaching, you can reach me at [email protected] Suggested reading: The Millionaire Real Estate Agent: http://goo.gl/TPTSVC Your money or your life: https://goo.gl/fmlaJR The Millionaire Real Estate Investor: https://goo.gl/sV9xtl How to Win Friends and Influence People: https://goo.gl/1f3Meq Think and grow rich: https://goo.gl/SSKlyu Awaken the giant within: https://goo.gl/niIAEI The Book on Rental Property Investing: https://goo.gl/qtJqFq Favorite Credit Cards: Chase Sapphire Reserve - https://goo.gl/sT68EC American Express Platinum - https://goo.gl/C9n4e3
Views: 9909 Graham Stephan
Which is Cheaper: BUYING or RENTING a house? (DEBUNKED)
 
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Which is actually cheaper, buying or renting a house? Lets crunch the numbers to determine which is actually less expensive, and which factors to consider to determine which is right for you. Enjoy! Add me on Snapchat/Instagram: GPStephan Join the private Real Estate Facebook Group: https://www.facebook.com/groups/therealestatemillionairemastermind/ The Real Estate Agent Academy: Learn how to start and grow your career as a Real Estate Agent to a Six-Figure Income, how to best build your network of clients, expand into luxury markets, and the exact steps I’ve used to grow my business from $0 to over $120 million in sales: https://goo.gl/UFpi4c I think there’s a common misconception that buying is always the better choice, and that renting is just throwing money out of the window. But you can’t deny that many high-profile people just end up renting their homes…why is this? Lets first start with owning a home. Many people just look at the cost of rent, then look at the mortgage payment - see it’s maybe a little more, but think “I can own this for just a little bit more, buying is a waste!” However, the actual cost of owning is home is much greater than just your mortgage payment. You also have property taxes, insurance, and repairs to take into consideration - not to mention the opportunity cost of the money that you invest into your home. Purely for cash flow purposes, renting is usually cheaper. Even though you don’t get the tax benefits of owning, usually renting and investing elsewhere is cheapest month-to-month out of pocket. Not only is it “cheaper” for cash flow purposes, but you have the mobility to pick up and leave when your rent is up. You’re not responsible for maintenance. You don’t need to bother selling it when you’re done. You just pick up and go. You can also invest your money invested elsewhere, potentially making you even more money. But in terms of NET cost over 7 years, the lease will cost you MORE than owning a home, realizing the tax benefits, seeing some appreciation, and paying down your loan. So what’s the advantage of renting? First of all, this assumes the market goes up over 7 years…if the market is about the same price or drops, you’ll actually come out AHEAD by renting. You’ll also come out ahead by renting if you can make more than a 12% return on your down payment elsewhere. You’ll also come out AHEAD by renting if you’re only going to live in the home for 1-3 years and plan to sell it, unless you get lucky with a rapidly appreciating market. So it takes a lot of averages and assumptions to really decide which one is better. The biggest downside I see with buying is that it ties up capital that COULD be deployed in a business that would generate higher returns. For someone who only wants to buy an live there a few years and sell, it’s dangerous to assume the market will continue going upward in a short period of time. So the “cost” of renting is sometimes much cheaper than just owning the home for a few years. BUT….for those who plan to live in their home for more than 7 years or so, generally speaking buying is better. You basically lock in your cost of ownership by buying - you won’t have rent increases, you won’t have a landlord telling you what to do, and you have total control over the property. You also get the tax benefits of owning and you can build up equity in an appreciating asset. However, you’re tying yourself down and if you decide to sell after a year or two, you’ll likely take a loss unless your market appreciates in price enough to make up the closing costs and commissions. But long term, owning will be cheaper if you intend to live there long term. So like I said, determining which is cheaper really depends on quite a few variables - short term, it’s generally better to rent. Long term, generally better to own. And the longer you stay in a property, the more it usually makes sense just to own it. For business inquiries or one-on-one real estate investing/real estate agent consulting or coaching, you can reach me at [email protected] Suggested reading: The Millionaire Real Estate Agent: http://goo.gl/TPTSVC Your money or your life: https://goo.gl/fmlaJR The Millionaire Real Estate Investor: https://goo.gl/sV9xtl How to Win Friends and Influence People: https://goo.gl/1f3Meq Think and grow rich: https://goo.gl/SSKlyu Awaken the giant within: https://goo.gl/niIAEI The Book on Rental Property Investing: https://goo.gl/qtJqFq Favorite Credit Cards: Chase Sapphire Reserve - https://goo.gl/sT68EC American Express Platinum - https://goo.gl/C9n4e3
Views: 60450 Graham Stephan
What to do if the Stock Market Crashes - Without Losing Money! *According to Statistics*
 
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One of the things I haven’t really covered yet in my videos is the risks of investing and how to recover from a market crash, especially now with stocks at their all time highs. But is it possible to time the market? And what’s the best time to invest? Well, according to statistics, doing THIS is what generates the highest profits. Thanks for watching! Feel free to add me on Snapchat/Instagram: GPStephan Here’s the stock market timing game! https://qz.com/487013/this-game-will-show-you-just-how-foolish-it-is-to-sell-stocks-right-now/ If you expose your money to any type of market, you expose your money to risk - it’s unavoidable. But markets are cyclical and there will be a time when the markets go down and you see some losses.. It’s totally normal. That lends the question - since the markets continuously hit all time highs, is it a good time to sell and then wait for a crash? Statistically, it’s shown that market timing rarely ever works - it’s impossible to know exactly when the market will crash and when to buy back in. Hypothetically if this is possible and you can do it consistently, great - but the chances of doing this consistently and accurately rarely ever happens, and it’s shown that time in the market yields higher average returns than timing the market. Studies by Brad Barber and Terrance Odean find that individual investors experience reduced returns with their stock trading accounts, with increased active trading a key reason in lowering returns. Examining 66,465 US household trading accounts over the 1991 – 1996 period, Barber and Odean find that the average household account earned an annual return of 16.4% over the period, compared to the 17.9% market return. Those households which traded most earned an annual return of 11.4%. http://faculty.haas.berkeley.edu/odean/papers%20current%20versions/behavior%20of%20individual%20investors.pdf They’ve also determined less than 1% of households were able to reliably predict market cycles between 1992-2006. I’m personally against market timing because no one truly knows when the next crash could be. If you pull out now, you could miss a few more years of gains. If you sell now and it crashes, how do you know when the bottom hits and when to buy back in? There have been numerous studies that show that the more you tinker with your investments, the higher the probability of achieving lower returns than if you had just stuck it out and held on to your investment. Now speaking of risk and all-time highs in the market, what about a large upfront lump sum investment NOW, or slowly putting it in the market over time? Or waiting until the market is down, and then investing a lump sum? Charles Shchwab ran the numbers from 1993-2012 for each investment strategy. If you start with $2000 per year available at the beginning of each year, and bought at the YTD low every year, this resulted in $87,004. If you just invest immediately as soon as you have it, you’d have $81,650. If you invested $2000 equally every month over the course of the year, you’d have $79,510 If you had bad timing and bought at the YTD high, you’d have $72,487. And if you had cash investments, you’d be left with $51,291. http://www.schwab.com/public/schwab/nn/articles/Does-Market-Timing-Work The study concludes that the most reliable investment method has always been to buy immediately, and hold. Do not try to time the markets. So how do you deal with risks and the possibility of losing money? First, don’t invest money you will for sure need in the next 2-5 years. For all other investments, have a long term outlook - don’t be too short sighted to panic sell or try to time the market as soon as it’s down. Instead, you should see this as a long term 10-20 year play. According to research conducted by Charles Schwab Company in 2012, between 1926 and 2011, a 20-year holding period never produced a negative result!! For business/music inquiries, you can reach me at [email protected] Suggested reading: The Millionaire Real Estate Agent: http://goo.gl/TPTSVC Your money or your life: https://goo.gl/fmlaJR The Millionaire Real Estate Investor: https://goo.gl/sV9xtl How to Win Friends and Influence People: https://goo.gl/1f3Meq Think and grow rich: https://goo.gl/SSKlyu Awaken the giant within: https://goo.gl/niIAEI The Book on Rental Property Investing: https://goo.gl/qtJqFq
Views: 20460 Graham Stephan
Why I DON'T flip houses  (revealing my favorite real estate investing approach)
 
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Even though I’ve had the opportunity to flip the homes I’ve bought, and even though I’ve represented my own clients who’ve flipped real estate for massive profits, this is why I’ve preferred NOT to flip properties and instead, keep them as rentals. Add me on Snap/Insta: GPStephan Learn how to make money as a Real Estate Agent, build your network of clients, and the exact steps I’ve used to grow my business from $0 to over $120 million in sales: $50 off with code ThankYou50 for a limited time: https://goo.gl/UFpi4c To me, my priority and focus has been to build up my passive income as much as possible, year after year- so far, in the 6 years that I’ve been investing, my income from my rental properties covers pretty much all of my expenses, allowing me to save 100% of what I make from working as a realtor. This is the type of investing I prefer - partly due to laziness in that I can continue to increase my passive income and grow that up to be able to retire whenever and have total freedom to do what I want, when I want, and partly because it’s less time intensive than flipping properties. I take a very lazy, easy approach to real estate investing. It’s slow and steady wins the race attitude. Once you set up a rental property with the right tenants, it can pretty much run on its own, making you money while you sleep. Disclosure: People can make a lot of money flipping. This isn’t to say that it’s not very, very lucrative - I know and have represented people that have made hundreds of thousands per deal. It can be a great business to be in and there’s absolutely nothing wrong with it. Everyone’s goals are different and many people prefer the immediate profit of a flip - But here are my own personal reasons why I prefer to keep my properties as rentals. 1. It’s a lot of work to flip a property, especially in a competitive market. Inventory is low and finding a deal worth flipping could take months. While it can generate a lot of profit immediately, it requires your constant work to keep the momentum to continue flipping. 2. When you sell it, you pay taxes as ordinary income - not long term capital gains, which is taxed much less. 3. Market timing. Finding a good deal could take months in Los Angeles…add another 2-3 months of renovation, and another 30-60 days of having the house on the market before closing, and you’re looking at 5-9 months from start to finish per deal. 4. Profit. Given the amount of work and time I’d dedicate to flip a property, it doesn’t make sense for me when it takes my time away from my main focus, which is working as a Realtor. 5. If the property has that much equity in it that you can flip it for a profit, chances are you can charge much higher rents than before, improving your cash flow. For me, I’ll take passive rents without doing much - it just requires some upfront work and an initial upfront investment, but once you get it going, it can run for a very long time. Having this type of passive income really allows you the freedom to do what you want, when you want - and focus on what really brings you the most joy. For this reason, I prefer rental properties over flipping. For business inquiries, you can reach me at [email protected] Add me on Snapchat/Instagram: GPStephan Suggested reading: The Millionaire Real Estate Agent: http://goo.gl/TPTSVC Your money or your life: https://goo.gl/fmlaJR The Millionaire Real Estate Investor: https://goo.gl/sV9xtl How to Win Friends and Influence People: https://goo.gl/1f3Meq Think and grow rich: https://goo.gl/SSKlyu Awaken the giant within: https://goo.gl/niIAEI The Book on Rental Property Investing: https://goo.gl/qtJqFq
Views: 51104 Graham Stephan
How to find a good deal / off market properties in Real Estate
 
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As an investor, buyer, or wholesaler, finding a good deal in Real Estate can be time consuming and nearly impossible in a seller’s market, but it’s totally doable. These are a few of the top strategies I use to find the best deals and possibly find some off-market opportunities in real estate. Add me on Snapchat/Instagram: GPStephan Learn how to make money as a Real Estate Agent, build your network of clients, and the exact steps I’ve used to grow my business from $0 to over $120 million in sales: $50 off with code ThankYou50 for a limited time: https://goo.gl/UFpi4c First, you need to see EVERYTHING you can on the market. Everything. You won’t be able to know a good deal if you don’t already know everything else on the market and what it’s selling for. Without a solid foundation of how one home compares to another, you won’t be able to realize a home’s true value. Next, see homes as soon as they come on the market. You should be getting notified hourly about every new home that comes up or reduces its price. If something comes up that looks interesting, go and see it immediately. If it’s a good deal, which you’ll know by seeing everything else on the market, write an offer immediately. You should also focus on listings which have been on the market for a long time that people may have forgotten about. Sometimes these listings get overlooked, and sometimes the owner is extremely motivated to sell but won’t want to reduce their price quite yet. Ignore how the pictures look - sometimes great listings have the worst pictures, and the worst listings have the best pictures. Instead, focus on the location, square footage, condition, and price. When trying to find a property off market: Don’t be afraid to go door-to-door. Unfortunately it’s time consuming and many times nothing will pan out, however if you find the one home that will sell at a reasonable price, all of your time spent will be worthwhile. You can also send letters out to everyone in a particular area asking if they would sell. This can be expensive and time consuming depending on how many you send out, but one deal will pay for itself, plus some. Finally, looking through past listings which never sold could be a good option. You know they thought of selling at some point, so there’s a higher likelihood they’ll still sell. With these above options, you’ll have a great chance at finding a good deal - even in a seller’s market. I use these same strategies above and it’s worked very well, both for myself and for my clients. For business inquiries, you can reach me at [email protected] Suggested reading: The Millionaire Real Estate Agent: http://goo.gl/TPTSVC Your money or your life: https://goo.gl/fmlaJR The Millionaire Real Estate Investor: https://goo.gl/sV9xtl How to Win Friends and Influence People: https://goo.gl/1f3Meq Think and grow rich: https://goo.gl/SSKlyu Awaken the giant within: https://goo.gl/niIAEI The Book on Rental Property Investing: https://goo.gl/qtJqFq
Views: 33569 Graham Stephan
How To Save For A House (Plus EVERYTHING else you'll need to know)
 
15:40
Lets get back to the basics in terms of saving enough for a down payment to buy real estate, what you’ll need for lenders to give you money, and some things to prepare for before you start buying a house. Enjoy! Add me on Instagram/Snapchat: GPStephan Learn my exact strategies to help grow your career as a real estate agent to a six-figure income, how to best build your network of clients, expand into luxury markets, and exactly what you can do to begin taking your career to the next level…these strategies took me to $120,000,000 in sales volume: https://goo.gl/UFpi4c Join the private Real Estate Facebook Group: https://www.facebook.com/groups/therealestatemillionairemastermind/ It begins with the following: Good credit - Anything above a 740 generally gets the best rates. 2 years worth of tax returns - This shows that your income is consistent and that you’ve built up some work history. Bank Statements and proof of income for the last 2-6 months - this way you can prove how much money you’re actually making and spending. With that, they can calculate what your debt to income ratio is - banks prefer those who save a lot, and spend very little. Cash reserves - sometimes it can be 3-6 months of mortgage payments, taxes, insurance, and a buffer in liquid cash or assets. Pretty much any time you buy real estate, you’ll need a down payment. Banks want to see that you have your own money at risk when you buy a house…this down payment forms your initial equity in the property. Generally 15-20% down is about what I’m seeing. If you don’t put down 20%, you’ll generally need to pay PMI which stands for private mortgage insurance. This is an extra cost that helps assure the bank you’ll be making your payments, since the less money you have in the deal, the higher the risk is that the bank will lose money in the event you foreclose. If you can qualify lower down payments and the numbers make sense, go for it. But in more expensive markets, you’re going to need more money down. Some other options might be available like a VA loan where you can buy with 0% down - so this will be up to you figure out what’ll be best. When saving for a property, it’s really about setting your priorities and deciding what comes first - if buying a property is your number one priority, it might make sense to cut back in other areas just for the sake of accomplishing this. What I use that helps a lot is Mint.com and PersonalCapital.com - I use these to track all of my expenses. You need to know where every penny is spent and exactly how much you earn. It’ll be nearly impossible to save as much as you can without doing this. One other strategy I like to use is to automate my savings. I have one bank account where all of my money is deposited and saved - this is Ally Bank. Then I have a Bank of America account for my expenses. I’ll only transfer a certain amount of money every month to bank of America, this means that everything else I have is pretty much already stashed away. Finally, generally banks won’t want the mortgage payment to exceed about 44% of your total income after expenses. Again, with this, it’s all cutting back as much as you can. You really have to make this a priority to save as much as you can. Now for those who just don’t earn much money in the first place, the reality is that you’ll need to either cut back on your expenses as much as you can and save the difference - or work to increase your income. There’s no way around it, there’s no way to sugar coat this - if you’re not earning enough money, you’ll need dedicate yourself to making more money. This is one of those things where if you want it bad enough, you will somehow find a way to make it happen. Now one more thing I do when it comes to saving is to keep it all in a high interest savings account. Most people want to invest it, although in the short term, there could be too much volatility to risk it in the markets. Ultimately, when saving up for a down payment, it really just comes down to income vs expenses - and once that’s handled, banks will look at the bigger picture to determine what you’d be qualified to receive. And patience and discipline here goes a long way - you will need to do this long term consistently. For business inquiries or one-on-one real estate investing/real estate agent consulting or coaching, you can reach me at [email protected] Suggested reading: The Millionaire Real Estate Agent: http://goo.gl/TPTSVC Your money or your life: https://goo.gl/fmlaJR The Millionaire Real Estate Investor: https://goo.gl/sV9xtl How to Win Friends and Influence People: https://goo.gl/1f3Meq Think and grow rich: https://goo.gl/SSKlyu Awaken the giant within: https://goo.gl/niIAEI The Book on Rental Property Investing: https://goo.gl/qtJqFq Favorite Credit Cards: Chase Sapphire Reserve - https://goo.gl/sT68EC American Express Platinum - https://goo.gl/C9n4e3
Views: 78610 Graham Stephan
I’m over $1 MILLION in Debt (Lessons of Leverage in Business and Real Estate)
 
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I’m over $1 MILLION dollars in debt, and here’s why this is actually a GOOD thing and how you can leverage debt can make you more money. Enjoy! Add me on Snapchat/Instagram: GPStephan Learn how to start and grow your career as a Real Estate Agent to a Six-Figure Income, how to best build your network of clients, expand into luxury markets, and the exact steps I’ve used to grow my business from $0 to over $120 million in sales: https://goo.gl/UFpi4c Join the private Real Estate Facebook Group: https://www.facebook.com/groups/therealestatemillionairemastermind/ So here’s why I’m a million dollars in debt - there’s a big difference between good debt and bad debt. The reality is that almost every successful business, at some point, needs leverage if it’s to grow exponentially…especially in real estate…and how you manage debt could either make or ruin you. Think of debt a like fire. Fire could give you warmth, cook your food, bring you light…or it could burn you. Debt is very similar. I grew up in a family that was wrecked by debt…I grew up thinking debt was awful and that credit cards were the worst thing ever. But as I began to associate with people who were just insanely wealthy, I realized…these were people who weren’t afraid of debt. They embraced it and worked the system to their advantage. Bad debt: This is when borrow money to buy stupid things that depreciate in value and doesn’t make you money. I shouldn’t even need to explain it because this is pretty self explanatory. Good debt is money that you borrow to make you more money. Good debt is used as a tool to increase your cash flow by borrowing money at a cheaper rate than your money makes you. And right now, we’re at the end of an opportunity of borrowing cheap money - that’s why I’m trying to grab as much as I can while rates are still overall relatively low. This is why I’m over a million dollars in debt…I have one 30-year loan at 3.375% interest rate, and another one at 4.5% interest rate…my investments make way more than this, and I’m able to profit the difference. It allows me to invest way more long term and increase my cash flow. This is also why there’s absolutely no reason for me to pay this down early…I can pretty much invest my money anywhere and get higher than a 4.5% return, so it makes sense to invest my money than pay down low-interest, tax deductible debt. So what does this mean for YOU and how can this help YOU? Knowing the difference between good and bad debt will help you evaluate what you can do to maximize your profits and the amount of money you make. If you’re borrowing $10,000 at a 5% interest rate, but your money is making you 10% elsewhere…that’s a no brainer. Borrow the money, make 10%, pay 5% in interest, and you’ve just got a “Free” 5% without using your own money. This is basic real estate 101, but it also applies to just about any business. The tricky part, from my perspective, is when you start borrowing money in the 6%+ bracket. The higher your interest rate, the tighter the margins, and the more closely you need to evaluate if it’s worth it. If you’re borrowing in the higher tiers, you need to be absolutely sure you’ll be making a higher return and that it’s sustainable…at a certain point, it becomes more advantageous to pay down debt than re-invest. If I had an 8% loan, you bet I’d be aggressively paying that down as much as I can…but a 3.375% loan like I have on one of my homes? Nope. Keep it forever. So if you get to the point where you need to grow your business or if you decide to invest in real estate, know that debt CAN be good when managed appropriately…it’s a little like playing with fire, as I mentioned earlier. Used appropriately, it’s great…and it’s how I’ve been able to get some pretty good returns in real estate. So don’t be afraid of debt, but manage it carefully and consider what your money is really worth! For business inquiries or one-on-one real estate investing/real estate agent consulting or coaching, you can reach me at [email protected] Suggested reading: The Millionaire Real Estate Agent: http://goo.gl/TPTSVC Your money or your life: https://goo.gl/fmlaJR The Millionaire Real Estate Investor: https://goo.gl/sV9xtl How to Win Friends and Influence People: https://goo.gl/1f3Meq Think and grow rich: https://goo.gl/SSKlyu Awaken the giant within: https://goo.gl/niIAEI The Book on Rental Property Investing: https://goo.gl/qtJqFq Favorite Credit Cards: Chase Sapphire Reserve - https://goo.gl/sT68EC American Express Platinum - https://goo.gl/C9n4e3
Views: 48860 Graham Stephan
How to get leads in Real Estate
 
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I'm explaining exactly how I got my clients in real estate and the methods I still use today! Snapchat/Instagram: GPStephan Learn how to make money as a Real Estate Agent, build your network of clients, and the exact steps I’ve used to grow my business from $0 to over $120 million in sales: $50 off with code ThankYou50 for a limited time: https://goo.gl/UFpi4c When I got my real estate license at 18 years old, I knew NO ONE looking to buy or sell. My family wasn't in real estate, they weren't giving me business, so I had to do what works: 1. Letting everyone know you're in real estate and that you're there to help 2. Doing open houses every single Sunday to meet potential buyers and sellers. The more face-time you can get in front of new people, the better. Follow up with your open house contacts. 3. Cold calling and door knocking . Disclosure: I've done this in the past and stopped. I personally didn't see results from it. It's not something I enjoyed doing. But I'm including it regardless because it's still a viable option that many people use. This also includes targeting FSBO, expired listings, mailers, etc. - it works, there are ways to be successful, but I personally don't use them. 4. Zillow, Trulia, Redfin, Craigslist, WestSideRentals.com - I'm NOT talking about paying to advertise on these sites. I don't do any paid marketing. Paid marketing can work, I've done it in the past, but I'm referring to submitting your listing on the sites and getting calls from it. Sometimes it automatically populates from when a property is listed on the MLS, but if you have the authorization to advertise a property that's not yet listed, you can upload it manually and get calls. 5. Craigslist. This is the foundation of my entire success in real estate. I started with doing leasing on Craigslist which blossomed into $15,000,000-$20,000,000+ per year in sales after a few years. I'd meet lease clients on craigslist, help them find a home to rent, and they would refer me other clients, would want to buy something themselves, and they would become repeat clients. Craigslist took me nearly 4 years to begin seeing significant monetary results, so it's NOT a "get rich quick" tactic. But it's a great way to meet prospective future buyers in an area that not many agents are doing. 6. From the first 5, you'll begin to see repeat and referral business. This grows over time and after a few years, this type of business will become more prolific - if you're doing a good job. 7. There's an abundance of material to learn just about anything you want to. However, the unfortunate truth is that very few people will actually apply what they learn - it's great to listen to in theory, but without action and consistency this means nothing. So I recommend applying some of these and see what works for you. Thanks again for watching! Does anyone actually read this? If so, what are the chances someone would read this all the way through AND make it to me questioning if someone is actually reading this? If you're still reading and haven't subscribed....SUBSCRIBE RIGHT NOW! DO IT! Because there's more car videos and real estate videos in the making. And that's going to be epic. Add me on Snapchat if you're into it: GPStephan Since I get asked so often...suggested reading: Your money or your life: https://goo.gl/fmlaJR The Millionaire Real Estate Agent: http://goo.gl/TPTSVC The Millionaire Real Estate Investor: https://goo.gl/sV9xtl How to Win Friends and Influence People: https://goo.gl/1f3Meq Think and grow rich: https://goo.gl/SSKlyu Awaken the giant within: https://goo.gl/niIAEI The Book on Rental Property Investing: https://goo.gl/qtJqFq
Views: 35014 Graham Stephan
Pros and Cons of Stocks vs Real Estate: Is one better than the other?
 
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So which is the "better" investment...stocks or real estate? In this video, I do my best to break down the pros and cons of each option and weigh the results against the potential return one could possibly expect to achieve. Since picking individual stocks can vary so widely in price, as would flipping a house, I'm comparing long term rental real estate to an total stock market index fund. It’s a hard question to answer, and a lot comes down to personal preference, but these are some things to take into consideration before we break down the numbers. Just for clarification - picking individual stocks, day trading, or swing trading is NOT included - you could achieve much higher returns and many people do this. However, since you could also invest and flip real estate, I felt this would be an unfair comparison with too many variables - which is why index funds vs rental properties were used. Each have their upsides and downsides… Pros for index fund investing: -It’s completely passive. Once you spend a few minutes going to a website and buying a stock, you’re done. -You don’t need tens of thousands, or hundreds of thousands of dollars like you generally need with rental real estate. -There are no hassles of working with tenants, fixing items, or maintenance. -You can buy index funds within a tax advantaged account such as an IRA or 401k. -Stocks are fairly liquid and you can cash out quickly when you want to sell. Pros for real estate investing: -You have total control over what you buy and at what price -You can take advantage of undervalued properties and areas -You can add square footage, remodel, and gain quick equity and increase cash flow -You can leverage your money and achieve potentially higher returns -You can receive consistent rental income In terms of the raw returns, generally real estate CAN yield a higher return, usually if you leverage your money - HOWEVER, the higher return is balanced by the amount of work, skill, and knowledge needed to find the right deal and close on the right price. Real estate is also not an entirely passive investment, so even though you can make significantly more, it also comes with more work. If you’re looking for something entirely passive, stocks will likely yield a little less but it comes with the ease of not having any responsibilities or obligations. So much of it comes down to personal preference. My recommendation is to do both :) Add me on Snapchat: GPStephan Add me on Instagram: GPstephan For business inquiries, you can reach me at [email protected] Suggested reading: The Millionaire Real Estate Agent: http://goo.gl/TPTSVC Your money or your life: https://goo.gl/fmlaJR The Millionaire Real Estate Investor: https://goo.gl/sV9xtl How to Win Friends and Influence People: https://goo.gl/1f3Meq Think and grow rich: https://goo.gl/SSKlyu Awaken the giant within: https://goo.gl/niIAEI The Book on Rental Property Investing: https://goo.gl/qtJqFq
Views: 64650 Graham Stephan
The 80/20 Principle: How I went from $140k/yr to $500k/yr by working LESS
 
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The Pareto principle (aka 80/20 rule) suggests that, for many events, roughly 80% of the effects come from 20% of the causes. Here’s how I maximized this to increase my income and work LESS at the same time - enjoy! Add me on Instagram/Snapchat: GPStephan Learn how to start and grow your career as a Real Estate Agent to a Six-Figure Income, how to best build your network of clients, expand into luxury markets, and the exact steps I’ve used to grow my business from $0 to over $120 million in sales: https://goo.gl/UFpi4c Join the private Real Estate Facebook Group: https://www.facebook.com/groups/therealestatemillionairemastermind/ Given the 80/20 rule, you generally will find that you spend 80% of your time chasing that extra 20% of result. In THEORY, you should be able to do 20% of what you’re doing now and still get 80% of the result. So that’s what I did. I looked past all of my clients since the BEGINNING of my career and found the commonalities between the clients that produced the most income vs the ones that took up the most time. I found that I spent 80% of my time chasing little lease deals between $3000-$6000 per month that paid very poorly, and that was consuming most of my time. But even though my motto was “work with these people, eventually they’ll refer you more business which leads to the 80% of my income”… but I found that overall, those were the clients that generally didn’t buy after a few years and didn’t refer me business. Instead, I found my clients that were spending $8000-$30,000 per month were the ones that would end up buying and referring me the business that led to much larger commissions, not the lower end price ranges. So what did I do? I turned down every lease under $8000 per month. I stopped going after those listings and I stopped working with those clients - that freed up 80% of my day. I then focused that remaining 80% of my time on meeting more clients in the $8000-$20,000 price point that were statistically more likely to lead to more income and more business. And that one difference alone worked…I made an extra $50,000 JUST from that one change, while also working less. The next year, the same thing…but I took it a step further. I stopped taking listings that were overpriced. I stopped working with buyers who had unrealistic expectations that I couldn’t change. I focused my time on ONLY working with the people who were ready and realistic. By focusing only on those, it freed up more of my time to focus on meeting MORE people that fit that bill. And guess what? My income went up ANOTHER $50,000 per year, and I worked less. And the less I worked, the less stressed out I was, and the less stressed out I was, the better I did with my clients and the more money I made. And using this technique is what led to over $550,000 in gross commissions last year without any prospecting, and without driving myself crazy. First, focus on the area where you get the highest ROI. Either where you get the most done, make the biggest impact, or make the most income. There will almost always be an 80/20 rule at plays…from there, really narrow it down and identify what that it and WHY that is. Second, identify where you’re spending 80% of your time chasing that last 20%. Find out where you’re spending most of your time…and make the decision to cut it, automate it, or outsource it. Third, do more of what WORKS with your 20% output that generates most of your results. If you find that you get 80% of your business through cold calling, for instance…do more cold calling. If you’re in e-commerce and find that 80% of your income comes from iPhone cases…do more iPhone cases. Focus on replicating the 20% of your cause that leads to 80% of the effect. This is about optimizing as much as possible and working efficiently, not harder. It’s about remembering that the minority of your efforts produce the majority of your results. Then identifying this and leveraging it to do MORE of what works, and less of what doesn’t have the best ROI. This frees you up with MORE time and by focusing on your 20% that generates 80%, you should be able to INCREASE your revenue or productivity rather quickly - while optimizing at the same time. For business inquiries or one-on-one real estate investing/real estate agent consulting or coaching, you can reach me at [email protected] Suggested reading: The Millionaire Real Estate Agent: http://goo.gl/TPTSVC Your money or your life: https://goo.gl/fmlaJR The Millionaire Real Estate Investor: https://goo.gl/sV9xtl How to Win Friends and Influence People: https://goo.gl/1f3Meq Think and grow rich: https://goo.gl/SSKlyu Awaken the giant within: https://goo.gl/niIAEI The Book on Rental Property Investing: https://goo.gl/qtJqFq Favorite Credit Cards: Chase Sapphire Reserve - https://goo.gl/sT68EC American Express Platinum - https://goo.gl/C9n4e3
Views: 63255 Graham Stephan
SELLER ACCEPTED MY OFFER - BUYING MY 6TH PROPERTY!
 
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FULL DAY LIVE REAL ESTATE INVESTING EVENT AT MY NEW PROPERTY OCTOBER 27TH: https://goo.gl/QfeS1F For those of you that know, I’ve been looking to buy more real estate here in Los Angeles. I recently found something and after a few weeks, I got my offer accepted. Here’s how! Add me on Snapchat/Instagram: GPStephan Join the private Real Estate Facebook Group: https://www.facebook.com/groups/therealestatemillionairemastermind/ Get $50 OFF FOR A LIMITED TIME: Code THANKYOU50 - The Real Estate Agent Academy: Learn how to start and grow your career as a Real Estate Agent to a Six-Figure Income, how to best build your network of clients, expand into luxury markets, and the exact steps I’ve used to grow my business from $0 to over $120 million in sales: https://goo.gl/UFpi4c Here’s the video summed up for anyone who doesn’t want to watch the whole thing…but at least hit that LIKE button ;) I saw a property I really liked, and made an offer. They ended up getting several offers, and asked for a best and final. I made that offer at what the property was fundamentally worth, based on all the sold comparable and similar homes on the market. Unfortunately, other people were willing to over pay WAY more than what it was worth, and my offer was denied. However, later they came back to me when their higher offers fell through. I have a feeling the previous buyers regretted paying what they did, and felt it was best to back out. Now that I’m back in the picture, I made another offer at exactly what I felt the home was worth, given the square footage, size, condition, and other sold properties. However, again - that offer was rejected, even though I felt it was a very good offer for what I was offering. After over a week of going back and forth, I stayed firm and eventually my offer was accepted - here’s what I did, why I bought this specific property, and how I can add value over time! Lesson here: If you know what a property is worth, don’t over pay. Stick to your price. It’s a logical decision to move forward or not, and if you feel something is worth what you’re paying, don’t pay more. For business inquiries or paid one-on-one real estate investing/real estate agent consulting or coaching, you can reach me at [email protected] Suggested reading: The Millionaire Real Estate Agent: http://goo.gl/TPTSVC Your money or your life: https://goo.gl/fmlaJR The Millionaire Real Estate Investor: https://goo.gl/sV9xtl How to Win Friends and Influence People: https://goo.gl/1f3Meq Think and grow rich: https://goo.gl/SSKlyu Awaken the giant within: https://goo.gl/niIAEI The Book on Rental Property Investing: https://goo.gl/qtJqFq Favorite Credit Cards: Chase Sapphire Reserve - https://goo.gl/sT68EC American Express Platinum - https://goo.gl/C9n4e3
Views: 19439 Graham Stephan
Zillow's $1.6 Billion Dollar Mistake: What NOT To Do
 
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Despite some incredible success, Zillow has recently run into some hurdles which caused their market cap to decline by $1.6 Billion - here’s why. Add me on Instagram/Snapchat: GPStephan Join the private Real Estate Facebook Group: https://www.facebook.com/groups/therealestatemillionairemastermind/ Get $50 OFF + FREE Coaching Call FOR A LIMITED TIME: Code THANKYOU50 - The Real Estate Agent Academy: Learn how to start and grow your career as a Real Estate Agent to a Six-Figure Income, how to best build your network of clients, expand into luxury markets, and the exact steps I’ve used to grow my business from $0 to over $120 million in sales: https://goo.gl/UFpi4c The cause for this has been their two newest business models: The first, its home flipping business. And second, their newest addition: a mortgage company, where Zillow can now begin to originate their own loans. The criticism comes from both home owners and investor expectations…for home owners, the process isn’t quite as fast as they seemed. Flipping homes is also risky. Tying up assets is risky. Spending your resources home flipping can be a delicate matter, But now, Zillow expands into a different market…the mortgage market. And oddly enough, the stock continues to drop. Why? For INVESTORS…which, lets be real, this is a business that has to appease INVESTORS…this just means uncertainty and risk. Getting into the mortgage industry at a time where rates have begun going UP is, again, maybe another risk that they didn’t need to take. With investors uncertain about its slowing growth, its high expectations from home flipping, and rising rates…it makes sense that investors would be spooked about ANYTHING the company does that isn’t it’s core business…which is advertising. Zillow makes a LOT of money from their Zillow premier agents, and it’s a pretty good business all the way around. THIS is the platform they should expand further…since they’re in advertising, have homes LINK to furniture you can buy. Promote architects. Promote contractors. Promote ANYTHING related to homes that buyers or sellers want to see…ANYTHING. Promote Premier Lenders! Promote Premier Contractors! Zillow has slowly been seeing a saturation of premier agents on their site as growth has slowed. The reality is that prices are climbing, competition is fierce, and agents are spending their money wisely. It’s this uncertainty and risk taking that could be Zillow’s downfall, or it’s saving grace. In my opinion, originating loans makes sense…anything to streamline the process, in my opinion, is a positive. But do I think THIS is the right time to do that, as their growth is slowing and as rates are rising? Eh, maybe not. Instead, I believe their core focus should be advertising first and foremost, everything else secondary. Continue growing the advertising platform, while at the same time offering more options for the people watching the site, and this is recipe to success. But what do I know. I think the simple lesson is not to deviate too far away from what works. If you have something that works well, expand on it. Add to it, improve it, and make it better. Don’t necessarily take big risks elsewhere when you have one endeavor working so well. For business inquiries or one-on-one real estate investing/real estate agent consulting or coaching, you can reach me at [email protected] Suggested reading: The Millionaire Real Estate Agent: http://goo.gl/TPTSVC Your money or your life: https://goo.gl/fmlaJR The Millionaire Real Estate Investor: https://goo.gl/sV9xtl How to Win Friends and Influence People: https://goo.gl/1f3Meq Think and grow rich: https://goo.gl/SSKlyu Awaken the giant within: https://goo.gl/niIAEI The Book on Rental Property Investing: https://goo.gl/qtJqFq Favorite Credit Cards: Chase Sapphire Reserve - https://goo.gl/sT68EC American Express Platinum - https://goo.gl/C9n4e3 Sources: https://seekingalpha.com/article/4163007-zillow-need-panic-instant-offers https://www.bloomberg.com/news/articles/2018-08-06/zillow-to-buy-mortgage-lender-to-help-its-home-flipping-business https://money.cnn.com/2018/04/13/investing/zillow-house-flipping/index.html?iid=EL https://www.barrons.com/articles/zillow-struggles-to-find-new-growth-1533667427 https://www.bloomberg.com/news/articles/2018-08-07/tesla-jumps-on-report-of-saudis-building-about-2-billion-stake https://www.marketwatch.com/story/zillow-stock-suffering-biggest-plunge-in-six-years-as-host-of-analysts-slash-price-targets-2018-08-07 https://www.inman.com/2018/08/07/zillow-market-cap-plummets-after-mortgage-acquisition-earnings/
Views: 44869 Graham Stephan
The 5 Biggest Mistakes People Make In Their 20’s (And How To Avoid Them!)
 
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These are the 5 biggest mistakes I see people making in their 20’s - and how you can avoid them. Enjoy! Add me on Snapchat/Instagram: GPStephan Learn how to start and grow your career as a Real Estate Agent to a Six-Figure Income, how to best build your network of clients, expand into luxury markets, and the exact steps I’ve used to grow my business from $0 to over $120 million in sales: https://goo.gl/UFpi4c Join the private Real Estate Facebook Group: https://www.facebook.com/groups/therealestatemillionairemastermind/ 1. The first, and probably biggest one is living above your means and living a lifestyle that you can’t afford. This is also probably the most common one I see - and it’s easy to get carried away. It’s also easy to fall into this if everyone around you is spending money to the point where you feel compelled to spend more than you normally would, so you’re not left out. While you shouldn’t necessarily hold yourself back for fear of spending money, you shouldn’t be worried about saying ’no’ if you really can’t afford something. Make sure you have a 3-6 month emergency fund saved up so you have a cushion in case something happens, and do your best to manage your expenses. And remember to always live within or below your means - you can always increase your spending later if you really want, but that’s easier to do once you already have a healthy savings. 2. The second mistake I see so many people making is not building up their credit score. Building up your credit as early as you can will give you a significant advantage later on if you ever decide to buy a house or invest in real estate, buy or lease a car, rent an apartment, or finance just about everything. This doesn’t mean you need to spend any more than you normally would, or you need to go in debt just to improve your credit score…just treat the credit card exactly like it’s an extension of your cash. When you’re over the age of 18, just go and get a secured credit card. Don’t get carried away, you don’t need to charge thousands on the card, just gas or food money every now and then and you’re good. 3. The third mistake is when people just wait around, expecting something to magically happen to them. The realization is that nothing will happen if you don’t take the initiative to make it happen. And it’s sad that most people aren’t taught how to actually go after what they want…in school, you’re told exactly what you need to do and when you need to do it by. But in life, no one expects you to do anything, and you won’t get handed anything. I see too many people just waiting for the right opportunities to come along, but they don’t do anything to actively seek out those opportunities. If you want something to happen, YOU will need to make it happen - YOU will need to be the one to decide what you want and how you will get there. 4. The 4th mistake I see if people being too afraid to take chances. Your 20’s are a time where you can AFFORD to take risks and be okay, because with each failure comes with the knowledge and experience of what not to do. Sometimes you’ll just need to take the leap of faith to pursue something and your 20’s is the perfect time to do that…before you’re tied down, before you’re married, before you have kids, before you have too much to lose…take the riskier career option. Start your business. Don’t be stupid, of course, but you can afford more risk in your 20’s than you can in your 50’s. 5. Stay healthy. Stay in shape. Exercise. Get enough sleep every night. Take care of yourself. When you take care of yourself, you’ll be sharper, you’ll make more money, you’ll be happier, and you’ll live longer. These are habits that are easy to start when you’re young and keep them consistent, than putting it off forever. For business inquiries or one-on-one real estate investing/real estate agent consulting or coaching, you can reach me at [email protected] Suggested reading: The Millionaire Real Estate Agent: http://goo.gl/TPTSVC Your money or your life: https://goo.gl/fmlaJR The Millionaire Real Estate Investor: https://goo.gl/sV9xtl How to Win Friends and Influence People: https://goo.gl/1f3Meq Think and grow rich: https://goo.gl/SSKlyu Awaken the giant within: https://goo.gl/niIAEI The Book on Rental Property Investing: https://goo.gl/qtJqFq Favorite Credit Cards: Chase Sapphire Reserve - https://goo.gl/sT68EC American Express Platinum - https://goo.gl/C9n4e3
Views: 79598 Graham Stephan
Buying Real Estate for only $100: REITs vs Rental Property
 
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Here’s a way you can invest in real estate with as little as $100…it’s a REIT. But how does this compare with just straight up owning rental property, and is it even worth owning a REIT in the first place? So lets analyze the pros/cons of each! Add me on Snapchat/Instagram: GPStephan The Real Estate Agent Academy: Learn how to start and grow your career as a Real Estate Agent to a Six-Figure Income, how to best build your network of clients, expand into luxury markets, and the exact steps I’ve used to grow my business from $0 to over $120 million in sales: https://goo.gl/UFpi4c Join the private Real Estate Facebook Group: https://www.facebook.com/groups/therealestatemillionairemastermind/ Like I mentioned, this is an investment trust which acts as a holding company for real estate. By investing in this company, you thereby are entitled to some of their profit, in the form of dividends. Pros to doing this: -There’s pretty much zero barrier to entry. Anyone with $50-$100 can invest. -It’s also really easy to buy into a REIT…open up any stock trading website or app, and boom, you’re done. You don’t need to go out looking for properties that cash flow for weeks or months. -There’s also no management aspect of this. With a REIT you don’t do ANYTHING. You just buy it and forget it…done. -It’s also really, really easy to sell…no need to pay a 5% commission, no need to show your home to buyers, no need to negotiate prices…it’s just as easy as buying a REIT. You just click “sell” and you have your money almost immediately. -With a REIT, you’re really well diversified. Negatives: -How the income YOU get is taxed…you get paid in the form of a dividend. This is usually an amount that’s paid out quarterly, but it’s taxed as though it’s earned income, which means it’s taxed at your highest marginal rate. -Because REITs pay high dividends, they usually don’t increase much in price. -The third downside is that you don’t have any control over your investment…unlike a property where you can pick the color to paint the walls, how to remodel the property, or how to manage the property and how much to rent it for - with a REIT, you have zero control. -You also can’t build equity in a REIT like you can with real estate. Investment Real Estate Downsides: -High barrier to entry…you generally need a large down payment and will need to have the income to support the loan payments. -The second downside to owning real estate is the time commitment. Finding the right deal is essential - and it can take a lot of time. Then you have the time aspects of managing a rental property. -Lack of immediate liquidity. I can’t just sell my property for top dollar within a day - it just doesn’t happen. Rental Real Estate upsides: -You can leverage your money. While yes, a REIT does invest in leveraged properties and you own a portion of that, generally the returns aren’t as high as when you do it yourself. -Your income from rents is generally tax free. When owning physical real estate, you can depreciate the cost of the property against your rental income. Compare this to paying 22-37% taxes on dividend income. -You have total control over your investment. This means you can find a really, really good undervalued deal where you make a significant amount of money. -You’re able to borrow against the equity in your home - completely tax free. So at the end of the day, this is what it really comes to… If your goal is long term equity, owning physical real estate is the way to go. When you buy an investment property, you’re continuously building equity in a tangible asset. Having more equity in your asset also gives you the ability to refinance over time and use the proceeds to buy additional assets and grow your portfolio. More work, more time involved, more money long term. However, if you have a little money and want some exposure to real estate, a REIT could be a nice way to diversify. However, since dividends are taxed as ordinary income, it’s best to hold the REIT in a tax advantaged account like a 401k or Roth IRA to avoid paying taxes. This way you get all the benefits of having exposure to real estate, without the tax consequences of paying a stupid amount of taxes on it. Not financial advice ;) For business inquiries or one-on-one real estate investing/real estate agent consulting or coaching, you can reach me at [email protected] Suggested reading: The Millionaire Real Estate Agent: http://goo.gl/TPTSVC Your money or your life: https://goo.gl/fmlaJR The Millionaire Real Estate Investor: https://goo.gl/sV9xtl How to Win Friends and Influence People: https://goo.gl/1f3Meq Think and grow rich: https://goo.gl/SSKlyu Awaken the giant within: https://goo.gl/niIAEI The Book on Rental Property Investing: https://goo.gl/qtJqFq Favorite Credit Cards: Chase Sapphire Reserve - https://goo.gl/sT68EC American Express Platinum - https://goo.gl/C9n4e3
Views: 29637 Graham Stephan
The 7 BEST Tax Write-Offs when Investing in Real Estate!
 
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Here are my 7 favorite tax write offs when it comes to owning real estate or investment property and a few examples of how each of them apply. Enjoy! Feel free to add me on Snapchat / Instagram: GPStephan Owning real estate is much more than just owning a cash producing property that provides monthly profits, what makes it really unique against almost every other investment is the tax write offs associated with it. In real estate, a return could be calculated in so many different ways besides “I get $1000 per month in rent.” What makes real estate really special is that you could often make money every month, but on paper show a loss…and this cancels out your tax obligation. Here are some of the tax write offs that make real estate a phenomenal investment. 1. Mortgage interest write off - On an investment property, the interest that you pay on your mortgage is a write off against your rental income. On a primary residence, the mortgage interest on the first $750,000 could also be a write off, potentially saving thousands in owed taxes. 2. Property taxes - This is another deduction you can write off against your rental and personal income. As a primary residence, you’re allowed to deduct the first $10,000 of your property tax against your personal income As an investment property, you can still deduct 100% of your property taxes against your rental income. 3. Depreciation - This is what often leads you to be positive in your bank account each month, but on paper you could show a loss, lowering the amount you’d pay taxes on. With rental property, you’re allowed to depreciate the asset over a certain period of time. Cost segregation analysis can sometimes speed this dramatically. However, keep in mind that because you’re depreciating a property, eventually the tax you depreciate will need to be paid at the time of sale if you DON’T 1031 it, so it’s not a tax avoidance entirely, but this works great if you plan to keep the home as a rental or eventually do a 1031 exchange later on. 4. 1031 exchange. This is a very popular real estate tax benefit that almost every real estate investor uses. This means that you can sell your property and “Exchange” it for a like property of similar or greater value without paying taxes at the time of the same sale. This is how many people can buy and sell millions without ever paying capital gains taxes, as long as they don’t sell and continue 1031 exchanging properties. 5. Capital gains exclusion on a primary residence: As long as you’ve lived in the home for 2 of the last 5 years, you can sell a your primary residence up to $250,000 HIGHER than you bought it for if you’re single, or $500,000 if you’re married, without owning capital gains tax. 6. Cash out refinance - When used against a rental property, you can refinance the extra equity in the property and pull out the profits tax free. Even though this is technically a loan you have to pay back, you’re borrowing from the existing equity and using that money without paying taxes on the money that hit your account. This gets a little more complicated as a primary residence, but on a rental, this is a huge advantage because the new mortgage you pay on the amount pulled out counts against your rental income…so you can use this money for pretty much whatever you want, hopefully just to re-invest. 7. Finally, rental property income is not taxed as self employment income, which carries a 15.3% self employment tax (not fun). But keep in mind this is also dependent on how you hold the property and specific ways you’re treating your income. Disclosure: I am not a tax consultant or CPA. These are just a few tax advantages I have used myself and I have simplified these significantly for purposes of explaining them on YouTube. Check with your own accountant or CPA because every situation is going to be unique. For business inquiries or one-on-one real estate investing/real estate agent consulting or coaching, you can reach me at [email protected] Suggested reading: The Millionaire Real Estate Agent: http://goo.gl/TPTSVC Your money or your life: https://goo.gl/fmlaJR The Millionaire Real Estate Investor: https://goo.gl/sV9xtl How to Win Friends and Influence People: https://goo.gl/1f3Meq Think and grow rich: https://goo.gl/SSKlyu Awaken the giant within: https://goo.gl/niIAEI The Book on Rental Property Investing: https://goo.gl/qtJqFq Favorite Credit Cards: Chase Sapphire Reserve - https://goo.gl/sT68EC American Express Platinum - https://goo.gl/C9n4e3
Views: 12967 Graham Stephan
How to find a mentor - the RIGHT way
 
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This is my recommendation about how to find a mentor - the right way. This is the way that will give you the highest chance of actually finding a mentor. Snap/Insta: GPStephan Learn how to make money as a Real Estate Agent, build your network of clients, and the exact steps I’ve used to grow my business from $0 to over $120 million in sales: $50 off with code ThankYou50 for a limited time: https://goo.gl/UFpi4c Because click bait sucks, here’s what NOT to do: 1. Don’t just ask “Will you be my mentor” or “Will you mentor me?” 2. Don’t approach it having done no research about what you want to do 3. Don’t ask vague questions What you SHOULD do: 1. Already be doing and learning what you want to do and achieve - ON YOUR OWN 2. Do NOT let NOT having a mentor stop you from doing this 3. Be specific and have a basic background about what you want to do 4. Be open to ask for help, but if this is something you can learn from a 10 second google search…that’s bad 5. OPINIONS and EXPERIENCE are a mentor’s strong point, not necessarily factual knowledge 6. Offer something in return - doesn’t need to be monetary. Your time, your enthusiasm, your help..whatever you can give. I’ve never asked anybody I consider a mentor, “Will you mentor me?” It’s something that happened naturally over time. Asking “Will you mentor me? is a yes or no question and IF it’s a yes, it’s a HUGE obligation for that person. Very doubtful they’ll just say “yes” right off the bat. I’ve never approached anyone specifically - even with my mentors in real estate, it all happened organically. I hope the same comes to all of you watching. There are also a multitude of forums, websites, and videos for you to learn from on your own. Chances are if you’re interested in something, so are a million other people - use the internet to reach out and learn from as many people as you can and do what you want to do - mentor or no mentor. A mentor can be a great source of encouragement, knowledge, and wisdom. However, do what you want, regardless if you have someone coaching you or not, and eventually the right people tend to come along once they see how dedicated you are to whatever you do. Thank you for watching! Add me on Snapchat: GPStephan Add me on Instagram: GPStephan Suggested reading: Your money or your life: https://goo.gl/fmlaJR The Millionaire Real Estate Agent: http://goo.gl/TPTSVC The Millionaire Real Estate Investor: https://goo.gl/sV9xtl How to Win Friends and Influence People: https://goo.gl/1f3Meq Think and grow rich: https://goo.gl/SSKlyu Awaken the giant within: https://goo.gl/niIAEI The Book on Rental Property Investing: https://goo.gl/qtJqFq
Views: 26589 Graham Stephan
The BEST ways to invest your first $1000
 
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This has to be one of the most requested video topics I get, especially for the people just starting out. This $1000 amount should give you a head start in whatever you do and begin the foundation to you making a lot more money. Feel free to add me on Snapchat/Instagram: GPStephan Let me first preface this by saying that it really depends WHAT you want to do and what your situation is. I’ll give you my own recommendations, but ultimately your own situation will dictate what’s actually best for you. If you want to start a business, I’d likely give you different advice than if you want to invest long term in something passive. So I’ll try to cover as much as I can. My first and biggest piece of advice for anyone, no matter what you want to do, is to use that $1000 to invest in yourself. This will likely give you the highest return on investment. I’m not talking about spending it all on a $997 course, but use it towards good books - use it towards learning, taking seminars, taking some courses or classes, and expanding your knowledge about what you want to do. Investing in yourself is a good idea no matter how much money you have and would be the pinnacle of what will generally get you the highest ROI. My second piece of advice is for someone who wants to start a business. I’d recommend using that $1000 to get you towards starting that business you want to do. If you want to develop a website, use that money to start the website. Want to start an app? Use that money to start an app. Do you want to do something online but don’t have a computer capable of doing it? Use that money. If you want to wholesale real estate, use that $1000 towards marketing materials. Figure out what you want to do and see how you can stretch your $1000 to make your business a reality. Even if it fails miserably and you lose your $1000, I promise that will be the best learning experience of a lifetime. That $1000 mistake will be worth way more firsthand than any college class could ever teach you. My third piece of advice is for someone who wants a more stable, long term investment they can pretty much just forget about to give them some passive returns. In this case, I’d highly recommend a low-fee index fund, like what Vanguard offers. They have several funds with $1000 minimums that should get you a good head start on investing long term. You can also get a ton of diversification depending on what fund you go with and this would give you a solid foundation for investing. You’ll also learn some background about index funds and diversification in long term investing. My fourth piece of advice is for someone who wants to learn the stock market and doesn’t mind putting their money in riskier investments. With this, you can trade individual stocks and you will learn a TON by trading firsthand. The downside is that commissions will eat you alive when you’re making regular trades. BUT, it’ll be an amazing learning experience. You can do the same with cryptocurrencies and I’m sure it would be an equally good learning experience. Just understand the risks involved. The whole purpose of this first $1000 should really just be to use it to jumpstart whatever it is that you want to do. Because lets be real, $1000 is not a lot in the bigger picture. However, $1000 should be enough to start moving you in the direction to begin making $10,000…then $100,000…then a $1,000,000. It’s about creating a foundation that supports you to continue making even more money. It’s not about maximizing your returns at this level, it’s about creating learning experiences at this level where losing 10% costs you $100 vs losing 10% on $100,000 costs you $10,000. The mistakes you make on this level will be avoided when you begin doing things on a much larger scale. For business inquiries, you can reach me at [email protected] Suggested reading: The Millionaire Real Estate Agent: http://goo.gl/TPTSVC Your money or your life: https://goo.gl/fmlaJR The Millionaire Real Estate Investor: https://goo.gl/sV9xtl How to Win Friends and Influence People: https://goo.gl/1f3Meq Think and grow rich: https://goo.gl/SSKlyu Awaken the giant within: https://goo.gl/niIAEI The Book on Rental Property Investing: https://goo.gl/qtJqFq
Views: 95679 Graham Stephan
My BEST techniques for a successful Open House
 
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Here’s my complete comprehensive guide about how to hold the best open house and exactly what I do to make the most of it. Holding an open house is one of the most crucial parts of being a real estate agent - it’s a great way to meet clients/leads and help give your listing more exposure. DO IT. Learn how to make money as a Real Estate Agent, build your network of clients, and the exact steps I’ve used to grow my business from $0 to over $120 million in sales: $50 off with code ThankYou50 for a limited time: https://goo.gl/UFpi4c Step one: Host an open house as often and as frequently as you can (I prefer every Sunday afternoon) Step two: Put up as many open house signs as you can - ideally 7-10+ signs in busy street corners Step three: Print professional marketing materials in color paper - NEVER black and white, dude Step four: Remember to turn on all the lights (smh….sad I have to remind people to do this) Step five: Play music/light candles (optional, but it helps - preferably Drake because his new album is lit) Step six: Serve food and water (optional) - I still highly recommend it Remember everyone that comes into your open house is there for a REASON - they’re interested in real estate. Make this most of this. Also treat everyone the same and everyone as an opportunity to do business. What to do when people walk in your house: Step one: Smile :) Step two: Try to build a personal connection with them outside of real estate - talk about whatever you might have in common! Step three: Have EVERYONE sign in Step four: Ask them open-ended questions: how did they hear about the open house? Step five: Give them a bit of background information on the home Step six: Before they leave, find out what they’re specifically looking for (house, location, price range, etc) Step seven: ALWAYS follow up with them consistently Step eight: The result: meet great future clients! Remember - you’re there to help them out. That’s your priority! Between everything above, you should have a successful open house - these are my best tips and techniques that have worked very well for me. Let me know if you have any questions! Thanks for watching! Add me on Instagram: GPStephan Add me on Snapchat: GPStephan Suggested reading: Your money or your life: https://goo.gl/fmlaJR The Millionaire Real Estate Agent: http://goo.gl/TPTSVC The Millionaire Real Estate Investor: https://goo.gl/sV9xtl How to Win Friends and Influence People: https://goo.gl/1f3Meq Think and grow rich: https://goo.gl/SSKlyu Awaken the giant within: https://goo.gl/niIAEI The Book on Rental Property Investing: https://goo.gl/qtJqFq
Views: 11808 Graham Stephan
Why some people DON'T encourage you to sell Real Estate
 
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I'm shocked to see all the comments that people are AGAINST them getting into real estate. But come to think of it, I've had the same things told to me. Thankfully I didn't listen and I was lucky to also have a few people supportive of my decision. Learn how to make money as a Real Estate Agent, build your network of clients, and the exact steps I’ve used to grow my business from $0 to over $120 million in sales: $50 off with code ThankYou50 for a limited time: https://goo.gl/UFpi4c "Are you sure you want to sell real estate?" "It's super competitive, it's hard to make money." "You need more experience before you do that." "You can't make money in this market." "Go to college first, then should do it." I've heard it all. But now that I'm nearly 9 years into it, here's my perspective WHY some people don't want you to sell real estate. Logical, somewhat true reasons: -Inconsistent income -No guaranteed income -High failure rate -No experience Personal reasons: -Their own insecurities -Threatened that you will become more successful -Jealousy -Some people are misinformed -They really care about you and want to protect you from risk Watch until the end - there’s a puppy in a Pikachu costume. It’s totally worth it to watch all the way through. And add me on snapchat: GPStephan Because I post puppies. Since I get asked so often...suggested reading: Your money or your life: https://goo.gl/fmlaJR The Millionaire Real Estate Agent: http://goo.gl/TPTSVC The Millionaire Real Estate Investor: https://goo.gl/sV9xtl How to Win Friends and Influence People: https://goo.gl/1f3Meq Think and grow rich: https://goo.gl/SSKlyu Awaken the giant within: https://goo.gl/niIAEI The Book on Rental Property Investing: https://goo.gl/qtJqFq
Views: 20275 Graham Stephan
He PRETENDED to buy a $40,000,000 house...and I believed him!
 
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Here’s a hilarious story when I first started selling real estate, with a gentlemen I met at an open house. Turned out he wasn’t who I thought he was, entirely my own fault, and this is that story. Enjoy! Snapchat/Instagram: GPStephan Learn how to start and grow your career as a Real Estate Agent, how to best build your network of clients, expand into luxury markets, and the exact steps I’ve used to grow my business from $0 to over $120 million in sales: $50 off with code ThankYou50 for a limited time: https://goo.gl/UFpi4c Thanks again for watching! For business or one-on-one real estate investing/real estate agent consulting inquiries, you can reach me at [email protected] Suggested reading: The Millionaire Real Estate Agent: http://goo.gl/TPTSVC Your money or your life: https://goo.gl/fmlaJR The Millionaire Real Estate Investor: https://goo.gl/sV9xtl How to Win Friends and Influence People: https://goo.gl/1f3Meq Think and grow rich: https://goo.gl/SSKlyu Awaken the giant within: https://goo.gl/niIAEI The Book on Rental Property Investing: https://goo.gl/qtJqFq Favorite Credit Cards: Chase Sapphire Reserve - https://goo.gl/sT68EC American Express Platinum - https://goo.gl/C9n4e3
Views: 35286 Graham Stephan
How to prepare for the next recession…
 
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It’s inevitable…we’re going to see a recession SOMETIME in the future. Here’s how you can prepare and still make a profit at the same time, enjoy! Add me on Snapchat/Instagram: GPStephan Join the private Real Estate Facebook Group: https://www.facebook.com/groups/therealestatemillionairemastermind/ Get $50 off for a LIMITED TIME with code ThankYou50 - The Real Estate Agent Academy: Learn how to start and grow your career as a Real Estate Agent to a Six-Figure Income, how to best build your network of clients, expand into luxury markets, and the exact steps I’ve used to grow my business from $0 to over $125 million in sales: https://goo.gl/UFpi4c NUMBER ONE: The first thing is that you’ll want to pay down any high interest debt. Now this is something you should do REGARDLESS of the market conditions…in a great economy, pay down high interest debt. In a recession, DEFINITELY pay down high interest debt. The LAST thing you need is high interest debt bogging you down. NUMBER TWO: Pay down variable rate debt! Any time you have variable rate debt, you’re really at the mercy of the FED…throughout the last few years, variable rates have been incredibly favorable given we’ve been in negative interest territory…but as rates go up, it’s going to begin costing you a LOT more money. NUMBER THREE: Keep 4-12 months of living expenses saved in cash. This one is huge…keep money sitting on the sidelines in a high interest savings account that you don’t touch. NUMBER FOUR: Keep your spending to a minimum. This means don’t get used to a lifestyle where it’s completely reliant on a strong economy, and if the markets go down, it’s unsustainable. NUMBER FIVE: DON’T over extend yourself! Don’t take on more debt than you’re comfortable with paying…Buy things you can afford to own out right, and only finance real estate on fundamentals with a long term outlook! NUMBER SIX: Don’t rely on only ONE source of income! This is simply too risky in the event you lose your job and all of a sudden you find yourself with no more money coming in, and then you’re frantically trying to take anything you can because you need to pay the bills. NUMBER SEVEN: KEEP SAVING! You should try to keep your savings rate consistent whether we’re in a great market, or a bad recession…if we’re in a great market, that’s awesome because that should allow you more room to save and invest. If we’re in a down market, keep saving so you can deploy cash back into the markets when everything is on sale. Do not stop saving just because you think the money will keep coming in… NUMBER EIGHT…last but not least, stay on course. You shouldn’t concern yourself about when the market is going to drop, if you should wait to buy, if you should try to time the bottom…the BEST thing to do is literally STAY ON COURSE. NUMBER 9…Make sure to smash that like button and subscribe! For business inquiries or paid one-on-one real estate investing/real estate agent consulting or coaching, you can reach me at [email protected] Suggested reading: The Millionaire Real Estate Agent: http://goo.gl/TPTSVC Your money or your life: https://goo.gl/fmlaJR The Millionaire Real Estate Investor: https://goo.gl/sV9xtl How to Win Friends and Influence People: https://goo.gl/1f3Meq Think and grow rich: https://goo.gl/SSKlyu Awaken the giant within: https://goo.gl/niIAEI The Book on Rental Property Investing: https://goo.gl/qtJqFq Favorite Credit Cards: Chase Sapphire Reserve - https://goo.gl/sT68EC American Express Platinum - https://goo.gl/C9n4e3
Views: 31648 Graham Stephan
My $500,000 mistake...not getting a credit card sooner
 
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This is likely my biggest financial mistake to-date: not getting a credit card early enough. This is why that ended up costing me over $500,000 In lost profit and how you can avoid making the same mistake. Enjoy! Snapchat/Instagram: GPStephan Learn how to start and grow your career as a Real Estate Agent, how to best build your network of clients, expand into luxury markets, and the exact steps I’ve used to grow my business from $0 to over $120 million in sales: $50 off with code ThankYou50 for a limited time: https://goo.gl/UFpi4c Join the private Real Estate Facebook Group: https://www.facebook.com/groups/therealestatemillionairemastermind/ For business inquiries or one-on-one real estate investing/real estate agent consulting or coaching, you can reach me at [email protected] (Do not send me random questions here - the youtube comments are best. This email is for business or paid real estate coaching inquiries ONLY) Suggested reading: The Millionaire Real Estate Agent: http://goo.gl/TPTSVC Your money or your life: https://goo.gl/fmlaJR The Millionaire Real Estate Investor: https://goo.gl/sV9xtl How to Win Friends and Influence People: https://goo.gl/1f3Meq Think and grow rich: https://goo.gl/SSKlyu Awaken the giant within: https://goo.gl/niIAEI The Book on Rental Property Investing: https://goo.gl/qtJqFq Favorite Credit Cards: Chase Sapphire Reserve - https://goo.gl/sT68EC American Express Platinum - https://goo.gl/C9n4e3
Views: 15427 Graham Stephan
Why I'm ALWAYS broke by the end of the year…$300,000 gone
 
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Without even realizing it, I somehow nearly end up totally “broke” by the end of each year. It just happens. After it happening again this year, I realized I was subconsciously investing EVERYTHING I had left over by the end of the year and starting the new year off close to $0. This keeps me extremely motivated to continue working hard, AND keeps my money invested and continuing to grow. Enjoy! Feel free to add me on Snapchat / Instagram: GPStephan It started in 2011 when I began buying real estate. I dumped pretty much every penny I had saved up into buying rental properties and renovating them to rent out. At the end of 2011, I had maybe $1000 to my name by the time I was done. I was literally counting on the rent from one of the places to be able to pay for the expenses I had coming up…I also knew I had to work hard as a Real Estate agent to bump the savings up. Same happened in 2012. I continued buying rental properties - I even sold my Lotus Elise, which was my dream car at the time, to buy a triplex in San Bernardino. And just like the year prior, I was broke by the end of the year after renovations and other random expenses. Without this being a conscious decision, almost every year since then I’ve been broke by December 31st. I don’t even think this was something I intentionally set out to do, it just happened. Some years I’d max out retirement accounts, I’d buy another house, something would be renovated, I’d invest it in my real estate business with things that would bring me more future business. But here’s how I view it. Money by itself is useless unless it’s invested and making you even more money. If you have $100,000 sitting in account, what is that good for? Unless you spend it on something useful, it just sits there. Sure, it’s peace of mind in case of an emergency, I think it’s important to still be smart about it and take the risks you are comfortable with, but beyond a certain point, money sitting is money losing interest to inflation. It’s a massive opportunity cost with money that could be earning you more money, but isn’t. So I make sure I invest AS MUCH AS I CAN every single year. I like to invest every last dollar I have left over, every single year. I want it all invested and stashed away. My goal in doing this is just to increase my passive income and grow my net worth. By doing this, and being left with almost nothing at the end of the year, it is the best motivation you’ll ever have. When you have absolutely no other way out other than to make it work, you make it work. It’s very important I mention not to be too risky here - there’s a fine balance between the risks your willing to take and what makes the most sense for your situation. For me, I can afford more risk because I have a lot to fall back on…I can afford and feel comfortable with more risk than the person who’s one paycheck away from being evicted and on the streets. That’s the difference. Be smart about it and know yourself and what your situation is. Don’t just invest it all if it means you can lose everything. Suggested reading: The Millionaire Real Estate Agent: http://goo.gl/TPTSVC Your money or your life: https://goo.gl/fmlaJR The Millionaire Real Estate Investor: https://goo.gl/sV9xtl How to Win Friends and Influence People: https://goo.gl/1f3Meq Think and grow rich: https://goo.gl/SSKlyu Awaken the giant within: https://goo.gl/niIAEI The Book on Rental Property Investing: https://goo.gl/qtJqFq
Views: 40636 Graham Stephan
The Truth about the Real Estate Market Crashing...
 
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It’s no surprise that there’s a lot of discussion lately about the real estate market potentially dropping. Here’s why I don’t care if it does, why it shouldn’t matter, and how I invest in real estate. Enjoy! Add me on Snapchat/Instagram: GPStephan Join the private Real Estate Facebook Group: https://www.facebook.com/groups/therealestatemillionairemastermind/ Get $50 OFF + FREE Coaching Call FOR A LIMITED TIME: Code THANKYOU50 - The Real Estate Agent Academy: Learn how to start and grow your career as a Real Estate Agent to a Six-Figure Income, how to best build your network of clients, expand into luxury markets, and the exact steps I’ve used to grow my business from $0 to over $120 million in sales: https://goo.gl/UFpi4c Now before you think I’m absolutely crazy for saying something like that, since basically 85% of my net worth is in real estate…and I make most of my money as a real estate agent…so I definitely see myself as being pretty reliant on real estate for my income, just hear me out, because I promise this should hopefully make sense. I think one of the biggest concerns right now for most people is fairly surface level..they don’t want to lose money short term, and they’d rather just wait and see what happens. And I don’t disagree, this is a fair argument. But this ignores some other important aspects. For me, I don’t flip properties. In fact, I never intend on ever selling them - I keep them on low-interest, fixed rate mortgages for 30 years and I rent them out. Rent covers all my expenses and spits out some extra profit each month. I don’t plan on selling, so the properties value doesn’t really make a big difference. Instead, I care what the home is worth 30 years from now. Here’s what happens, and it’s happening RIGHT NOW. People are reading about the real estate market softening and because of that, they don’t want to buy now - instead, they want to wait for prices to drop even further, then buy in at the bottom. All those people who are sitting on the sidelines are doing what…they’re RENTING. All those people out priced from the market? They’re RENTING. Those sellers which sell their rental properties? That’s one less property on the market to rent. The one thing that does historically well in a real estate drop is…rentals. Rentals are making the money. So either way, from the way I see it, I win. I’m either getting a really strong rental market, which means more money in my pocket, or rising values…which means money in my pocket. So why would I care if my place is worth 5% less next year if that just means there are more tenants looking for rentals, which helps drive that market higher? In the bigger scope of things, unless you’re flipping real estate….which I personally don’t recommend, and I have a video about why I don’t flip real estate…timing the market is a gamble. You might get it right sometimes, you might get it wrong sometimes. I’ve seen more people get it wrong than get it right, however. If you can’t find a good deal, don’t buy…trust me, you can over pay for a property in a really bad market, and you can under pay for a property in a great market. Your individual skillset will prove much more profitable than the market dictates. Invest what you can afford, live below your means, buy properties that cash flow, buy them on a fixed rate long term loan so there are no surprises about your payments fluctuating, and wait. If you find a deal, go for it…if you don’t, then wait. Simple as that. No sense over complicating anything. For business inquiries or paid one-on-one real estate investing/real estate agent consulting or coaching, you can reach me at [email protected] Suggested reading: The Millionaire Real Estate Agent: http://goo.gl/TPTSVC Your money or your life: https://goo.gl/fmlaJR The Millionaire Real Estate Investor: https://goo.gl/sV9xtl How to Win Friends and Influence People: https://goo.gl/1f3Meq Think and grow rich: https://goo.gl/SSKlyu Awaken the giant within: https://goo.gl/niIAEI The Book on Rental Property Investing: https://goo.gl/qtJqFq Favorite Credit Cards: Chase Sapphire Reserve - https://goo.gl/sT68EC American Express Platinum - https://goo.gl/C9n4e3
Views: 30650 Graham Stephan
How I live for FREE by House Hacking and investing in Real Estate
 
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One of the BEST ways to begin investing in real estate and lowering your housing costs is what I call “House Hacking” — buying a multi-family property, moving in one of the units, and renting out the others to pay for your living costs. Here’s how I do it - enjoy! Snapchat/Instagram: GPStephan Join the private Real Estate Facebook Group: https://www.facebook.com/groups/therealestatemillionairemastermind/ For business inquiries or one-on-one real estate investing/real estate agent consulting or coaching, you can reach me at [email protected] Suggested reading: The Millionaire Real Estate Agent: http://goo.gl/TPTSVC Your money or your life: https://goo.gl/fmlaJR The Millionaire Real Estate Investor: https://goo.gl/sV9xtl How to Win Friends and Influence People: https://goo.gl/1f3Meq Think and grow rich: https://goo.gl/SSKlyu Awaken the giant within: https://goo.gl/niIAEI The Book on Rental Property Investing: https://goo.gl/qtJqFq Favorite Credit Cards: Chase Sapphire Reserve - https://goo.gl/sT68EC American Express Platinum - https://goo.gl/C9n4e3
Views: 22365 Graham Stephan
Just made an offer to buy another property...this is what happened
 
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For those of you that know, I’ve been looking to buy more real estate here in Los Angeles. I recently found something and made an offer…and this was what happened. Enjoy. Add me on Snapchat/Instagram: GPStephan Join the private Real Estate Facebook Group: https://www.facebook.com/groups/therealestatemillionairemastermind/ Get $50 OFF FOR A LIMITED TIME: Code THANKYOU50 - The Real Estate Agent Academy: Learn how to start and grow your career as a Real Estate Agent to a Six-Figure Income, how to best build your network of clients, expand into luxury markets, and the exact steps I’ve used to grow my business from $0 to over $120 million in sales: https://goo.gl/UFpi4c Here’s the video summed up for anyone who doesn’t want to watch the whole thing…but at least hit that LIKE button ;) I saw a property I really liked, and made an offer. They ended up getting several offers, and asked for a best and final. I made that offer at what the property was fundamentally worth, based on all the sold comparable and similar homes on the market. Unfortunately, other people were willing to over pay WAY more than what it was worth, and my offer was denied. However, later they came back to me when their higher offers fell through. I have a feeling the previous buyers regretted paying what they did, and felt it was best to back out. Now that I’m back in the picture, I made another offer at exactly what I felt the home was worth, given the square footage, size, condition, and other sold properties. However, again - that offer was rejected, even though I felt it was a very good offer for what I was offering. I can’t get into too many details at this point, but I thought my offer should’ve gotten accepted ;) Lesson here: If you know what a property is worth, don’t over pay. Stick to your price. It’s a logical decision to move forward or not, and if you feel something is worth what you’re paying, don’t pay more. For business inquiries or paid one-on-one real estate investing/real estate agent consulting or coaching, you can reach me at [email protected] Suggested reading: The Millionaire Real Estate Agent: http://goo.gl/TPTSVC Your money or your life: https://goo.gl/fmlaJR The Millionaire Real Estate Investor: https://goo.gl/sV9xtl How to Win Friends and Influence People: https://goo.gl/1f3Meq Think and grow rich: https://goo.gl/SSKlyu Awaken the giant within: https://goo.gl/niIAEI The Book on Rental Property Investing: https://goo.gl/qtJqFq Favorite Credit Cards: Chase Sapphire Reserve - https://goo.gl/sT68EC American Express Platinum - https://goo.gl/C9n4e3
Views: 23978 Graham Stephan

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