Real Estate Investing for Beginners: Expectation vs Reality

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
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/ @financialeducation
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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 [e-mail]
Suggested reading:
The Millionaire Real Estate Agent: goo.gl/TPTSVC
Your money or your life: goo.gl/fmlaJR
The Millionaire Real Estate Investor: goo.gl/sV9xtl
How to Win Friends and Influence People: goo.gl/1f3Meq
Think and grow rich: goo.gl/SSKlyu
Awaken the giant within: goo.gl/niIAEI
The Book on Rental Property Investing: goo.gl/qtJqFq
Favorite Credit Cards:
Chase Sapphire Reserve - goo.gl/sT68EC
American Express Platinum - goo.gl/C9n4e3

[@stjepanhauser7595]

Year-over-year inflation stood at 6.5% in December 2022-the lowest that figure has been in more than a year. Inflation was in line with what economists expected and gave many of them a reason to believe that the peak of inflation may be behind us. I have approximately $150k stagnant in my port_folio that needs growth. What is the best way to take advantage of this downturn?

[@mathebulamkhize876]

you’re right! The current market might give opportunities to maximize profit within a short term, but in order to execute such strategy , you must be a skilled practitioner

[@blkxr7]

Yes this is a very accurate video. I started off with my first rental property an 8 unit at 26 years old. I now have 18 units at 34 years old and realized I'm no longer spending my paycheck at my real job. It has been a long slow road but worth it in the end! Don't give up guys! The years tick by quicker than you think

[@GrahamStephan]

Amazing work man!

[@blkxr7]

Ashley Madison Yes it can be because my full time job is 55 hours a week, but now i just pay to have more of the maintence work done. I used to do it all myself

[@blkxr7]

Carlos Salinas It took me longer than it should have for a couple reasons. The main reason is I thought my career was going to take a different path and it was going to get hard to juggle all the responsibilities. The other problem was Finding properties that cash flowed and were close to each other. I wanted specific neighborhoods with better tenants. If you have ever dealt with low income renters im sure you will understand haha

[@GodsDiamond7]

blkxr7 can you teach me how to do this ?

[@raynguyen8638]

What should I do with $5000 right now?

[@remodelassets6523]

Graham, I usually fix everything myself but you still have a great point in having a reliable contractor in the local area for the tenants to be on call with. It makes perfect sense. Response is paramount.

[@RickyCarruth]

You are right about it not being completely passive. I have 8 long term rentals (paid for) and then I buy and sell houses on the side with two other partners. Its a grind, and I love it. Thanks for sharing.

[@GrahamStephan]

Thanks Ricky! That’s awesome, 8 properties all paid off! What area?

[@RickyCarruth]

Graham Stephan yea, paid off. I'm in Orange Beach, AL. I'm also doing over a million as a single agent. 100 deals a year since 2014. Just putting in work man. Grew up roofing houses.

[@GrahamStephan]

Well done man, I can't imagine doing 100 deals/year...I'm doing about 10-20 total deals/year and that's been full time in itself!

[@RickyCarruth]

Graham Stephan yea, its wild man. Its me and one assistant. This will be 5 years in a row. Average price is $350k. Mostly condos on the beach. I'm an animal in the "not worrying about shit" department, and I love to work. If you ever want to do a video, ill fly out there if it would help you. I love what you are doing.

[@joeschmo5988]

Ricky Carruth yes please make a video

[@YakMotley]

Great video! Ive learned this the hard way. There are always bumps at the beginning!

[@GrahamStephan]

I agree!

[@beerus553]

Imagine if "landlords" where called "lords of the land"

[@ebk3604]

That should be the new name

[@Thoughtseaux]

Literally what they used to be called

[@b.l.8755]

The "land" is implied if you just call them "lords."

[@charlietownsend2826]

Benjamin Lewis | Damn, I didn’t even think about it but you’re right.

[@jamesgellert1263]

Sounded like that movie "Lord of War".

[@stanko4333]

The real magic starts when you make a youtube channel, and remind your viewers every video to smash the like button for the YT algorithm.

[@davidbenjamin7165]

I worked a full time job for 13 years before I bought my first property. I wish I had done it sooner.

[@BouncyElves]

David Benjamin you cant change the past but you can change your future 🤷🏻‍♂️ buy more! 😁

[@BasementsFinestTV]

How much sooner

[@247randomguy]

Can you help me buy my first property?

[@davidbenjamin7165]

@@BasementsFinestTV 10 years sooner.

[@nom1959]

David Benjamin 13 years?! How much did you need to save up?

[@davidjonathannn950]

I really I appreciate your realness u are the only one i trust on KZbin 😭😂

[@GrahamStephan]

ahh you got it!

[@homepreptraining5877]

Yes be very careful on youtube.

[@alisafavirealestate]

Hey David! I'd love to know if you have any other investing questions! I just started an informational series on my page all about it!

[@RealGalaxyGamers]

Davidjonathan 20 never trust anyone.

[@scoobydoobers23]

Jaspreet Singh on Minority Mindset is pretty legit too.

[@TrailerCashAcademy]

Love your tips! Doing repairs was our biggest fear when getting started in real estate investing! So glad that we didn't let that stop us. Thanks for being so transparent.

[@storeystories5199]

Cosmetic repairs are the easiest way to increase your property valuation

[@tre2558]

I like how realistic you are most youtubers act like it’s an instant return you broke it down and explained it thank you

[@GrahamStephan]

Thanks so much!

[@laisonherberts6107]

Tre was m

[@albertwilson959]

Sometimes I get thoughts that the contractor can easily lie to you about repairs...but I am pretty sure you ask for pictures?

[@lucasamorimrabelo1278]

You hire a inspector for that, but people who never take action won't ever find out

[@st3v3nb915]

They can if you don’t know about construction 🔨 I’ve seen it all the tile it’s all business

[@MM203_]

Albert Wilson what kind of things would they lie about ?

[@MichaelP-ke1tm]

I know literally nothing about the construction field lol. My dad never taught me shit about fixing anything but then again, he never knew how to do plumbing electrical and all that too. I've only completed 1 out of 6 of my Real Estate classes but its all legal stuff and definitons so far. It's a shame they don't teach you about general construction and how to pick out certain types of materials for each house even as an agent

[@GrahamStephan]

I totally agree. Most of what you learn as an agent is a bit of a waste, I never really use any of that textbook stuff day to day.

[@adrianpeterson5171]

Patrick very true I feel like we should all know how to do hands on work but that’s just how the world is, some people never learn to cook but enjoy eating food and end up making a better career tasting food than cooking it. It’s a dog eat dog world but at the end of the day I feel like it’s about doing what you are most passionate about rather than the money, obviously money rules everything but at the end of the day are you left empty with a lot of money or are you left fulfilled with just enough to know you lived a happy life? That’s the day to day struggle I deal with.. making more money because that’s what we all want or making less money and be happy?

[@eastongentry6764]

Some community colleges will offer a basic carpentry class or too

[@MichaelP-ke1tm]

@@eastongentry6764 I will apply

[@storeystories5199]

We have a video about all our problems with builders... one of them caused $8000 damage, another stole our money and bought a plane ✈️

[@slashimagames3695]

Thanks so much for this video! I am 14 years old am want to do this when I grow up. You do a great job at teaching!

[@GrahamStephan]

🙌🏼

[@XxFalseSaucexX]

I’m 19 and I’m college and have 15k Ive been saving up from since I was 16 and I plan on make 10k in the next 2 years . Videos like this help me a lot . Obviously every investment is risky but investing in property to me seems better than stocks bc you can control more things. After graduating I plan on starting small and getting a home and using most of my salary to pay off the home so I own it. Then renting it out and earning passive income along with money from my job. Idk how realistic that sounds but I’m still learning and videos like this help.

[@GrahamStephan]

🙌🏼

[@Raci.1423]

Update?

[@eziisreal]

update??

[@Artsu1993]

Update plz

[@ryanrondon1119]

Update

[@maygun4030]

GRAHAM THE HOUSE IS ON FIRE PLEASE BRING SMORES!

[@GrahamStephan]

😂

[@SpicerCapital]

This is such an important message. Thanks, Graham! I have a great property manager now that deals with almost everything expertly. But he’s my third. I tried to switch too early and learned some hard lessons - my second property manager ended up claiming he fell off my roof and subsequently suing me... I was 23 and had to deal with that for 3 years. It sucked.

[@GrahamStephan]

That's CRAZY. So sorry you had to go through that!

[@SpicerCapital]

Makes for a good story at least...!

[@MichaelP-ke1tm]

Spicer Capital - Invest Smarter What was the result of the suing

[@SpicerCapital]

Ha, good question, Jordan. A year in we had official depositions and it became very clear he was lying - he changed his original story of which side he fell off (which fortunately he had told to two other people besides me) and lied about other facts that made it obvious he had fallen somewhere else and was just trying to game my insurance (ha, nothing personal, right?). Well, they drug it out two more years and then the insurance company settled with him for $25,000... I was annoyed but glad it was over. THEN the Insurance company had the nerve to tell me they wouldn’t insure that property anymore!!! That was annoying but probably good for me - I had always done everything through them and never shopped. Now I had to. I ended up moving like 12 of my policies away from them...

[@chrisbishop5343]

lol the dude fell off the roof on his own accord and tried to sue you what an absolute scumbag

[@tmdrake]

"Nothing will Last Forever" - Well Said.

[@grizzlybear2702]

Plot twist. The real estate investor gets divorced and his wife took the house. Now his real estate income is £0

[@grizzlybear2702]

civic vwb they get thrown out in court all the time

[@jlovesj3335]

Why I don't plan on getting married.

[@eastongentry6764]

Put it in an LLC. Avoids the prenup, and some liability

[@mclilzenthepoet2331]

Are yougay or European

[@nobodyhere1778]

Hyperinflation this happened to my parents now the both poor haha

[@DavidinSLO]

Best advice I ever got on rental properties - if you can't manage them yourself, don't do it. When I moved out of state, it was difficult/impossible to find a management company that cared about my properties like I did. Hiring contractors, plumbers, etc is fine. But I'd avoid a management company if at all possible.

[@1lambofan465]

I like the %20 down payment advice, cool learning from a youtuber that is an actual real estate investor! Thank you!

[@Thatboypancakes]

Idk and idc for real estate investing. I simple got into watchin you cause how genuine u are. The real estate education is just a plus♥️

[@GrahamStephan]

Thanks so much MJ! Anything specific you'd like to see topics on?

[@FinancialEducation]

Cant wait!! Going to be epic! P.S. that little doggy is going to make this video go viral lmao!

[@GrahamStephan]

Thanks so much for putting it all together, really looking forward to it! We should bring Teddy as a celebrity guest ;)

[@FinancialEducation]

I like that idea :))

[@TheOneAboveAllx]

U two together look like my financial fanfriction lol

[@FinancialEducation]

LMAO!

[@Ndasuunye]

@@versatilex97 food is my kryptonite. Saving up for a house is easy, not buying a good meal for the day is hard.

[@richardbelair5163]

I love all your videos man!! Keep it up with these awesome videos!!!

[@jessicaburroughs5763]

Teddy = best subscribe bait ever

[@GrahamStephan]

Haha Teddy is the real MVP! And absolutely, $900/mo is nothing to sneeze at!

[@Blackridge.]

Paycheck fam. Be my spouse.

[@bassam_salim]

Most people in my country get less than 300$ a month, so 900$ a month is a lot, though I can't get more than 250$ for renting a home here.

[@ericmoser575]

He said his income on that property was $1250, then after expenses it was $900. How? What about the mortgage payment? Unless you buy the home in cash there’s no way the expenses are that low. Im looking to buy a rental property and it looks like I can make maybe $50-$150 a month after everything including the mortgage.

[@Pentabacklift]

Eric Moser he does buy them in cash. He showed it in his old videos. His first one he bought it straight cash 59,500 and fixed it. Total was like 70k. 👍🏿

[@nicholass5075]

1. Start a business 2. Invest in business 3. Invest extra income into real estate 4. Scale and leverage (4 units, 6 units, 12 units) 5. Go into commercial real estate (office, industrial, retail) 6. Scale even more (refinance,leverage etc..) 7. Become financially free.. travel, family time, dream home... DREAM BIG 👊

[@XxS1l3nTxa1Mx]

What’s refinance and leverage???

[@nicholass5075]

XxS1l3nTxa1Mx I took this sample off a website…For example, if your home is worth $250,000 and you owe $150,000 on your mortgage, that means you have $100,000 worth of equity that you could convert into cash through a cash out refinance loan (lenders may let you use up to 80% of your equity or sometimes more depending on your credit rating). If you wanted to borrow $50,000 in cash, a cash out refinance would pay off your existing mortgage and give you a newly-negotiated mortgage with a principal balance of $200,000 (that's $150,000 for the original mortgage plus the new $50,000 borrowed amount). You'd get the $50,000 in cash when you closed on the loan. - Bottom line this a simple small residential deal but what a lot of the wealthy commercial real estate investors do is the same just with larger numbers and take the cash out refinance and acquire more deals. For example Grant Cardone used LEVERAGE meaning putting down a certain percentage using debt. The deal was 50 million he leverage by putting only 15 million down (30% down) and he said that in 5 years of having the investment the property went up from 50 million to now worth over 100m. He went to the bank on the appraised value and was able to cash out refinance 50 million. Non-taxable event btw. You could then pay off your mortgage and keep acquiring more and more property. This how the wealthy do it and they will keep on doing it. - Nick

[@XxS1l3nTxa1Mx]

Nick Schwarz thay doesn’t make sense. Your saying be refinanced for 50 million and got 50 million cash just cause his value went up to 100mill? I’m confused

[@nicholass5075]

XxS1l3nTxa1Mx understandable. I put in quite the laymen terms but here is the source where Grant explains it himself. kzbin.info/www/bejne/rpDToJ54irCDpKs&feature=share The part I’m referring to is between starts at 16:00 minutes and ends at 22:30. It takes a lot to grasp I even am still wrapping my head around it all.

[@kyleswarts6660]

What do you think about doing a 4 plex as a First time home buyer loan? Live in 1 rent out the other 3.

[@NegativeAccelerate]

Kyle Swarts if you can afford it and get the loan and the rent you receive is worth about twice the loan then I would but I’m just a 15 year old girl so like actually don’t trust me that’s just my opinion

[@advanceme-skincare3144]

@@NegativeAccelerate your account description 🤣🤣

[@NegativeAccelerate]

Johans world hahaha lol I once changed my name to Madeline McCann as I joke and forgot to bangs the description. (This also isn’t my real picture)

[@advanceme-skincare3144]

@@NegativeAccelerate yeah she looks more like a 7 yr old than a 15 yr old

[@NegativeAccelerate]

Kyle Swarts my profile picture or Madeleine?

[@levirock]

You make the most interesting to watch financial videos on KZbin! Keep it up

[@Michael-gd8xj]

Real estate investment is the best investment a man can decide to do

[@brianwoods6141]

Wow😳 That’s Impressive. Do you do that on your own.

[@moocharoo5337]

Pls how can I connect with him. I have heard so much about him on KZbin

[@jaberahmed2695]

That’s my trader too. I sold all my stocks and reinvested then to bitcoin with him. Now I earn over 3 grands weekly. All thanks to Artem Steve

[@jaberahmed2695]

[phone].

[@jaberahmed2695]

Yess. That’s it. For those trying to reach him

[@logancrawford6807]

Your channel was maybe like 1 of 3 that really got me into real estate. Last week, my wife and I put our first duplex under contract. We are using an FHA 203k loan and house hacking here in Cincinnati, Ohio 👍 cash flow baby!

[@GrahamStephan]

CONTRATS!!! That’s awesome, so happy to hear! Keep me posted

[@clintonwood8431]

The value of real estate crashed immediately after the lock down but bitcoin kept on increasing Real estate may be back in 6-7 months. for now it's best on bitcoin

[@Omar-kt2di]

Awesome content. I’m a licensed agent in NYC investing back in the Midwest. Been watching your videos the last couple weeks, very inspiring. Putting together a couple deals right now and closed on a 2 fam this year. Looking to do 2-3 deals/yr and my goal is 27 doors by age 30 netting 13K/month. I’m 27 now so i have some work to do.

[@jamenarmendariz1234]

How about a video on how to find what you would consider a "good deal" or "good investment"? especially for a multi family home

[@GrahamStephan]

I want to do this firsthand, will be looking for another property in the coming few months!

[@smithjones5730]

Enough to live a comfortable life

[@millerbrown9344]

To live a comfortable life you really need money and I'm happy because am a millionaire today thanks to forex trading

[@alisonalita797]

Forex trading is the best investment of the decade

[@brandycarina9083]

@@alisonalita797 REALLY

[@oldie44]

Hope this comment is finding you well, I really enjoyed the video keep up the great work 2:30!

[@arielivanna2095]

According to world’s top financial advisor and broker Sanjay Otter “Nany people find that investing in real estate is a good strategy for building personal weal things” but not everybody who buys a property becomes wealthy. If you make a bad investment decision you could struggle for years and it can eat away your bank account. You should get expert advice before jumping in on anything.

[@chijiokedaniel8262]

How can I get in touch with him? Would love to multiply my money too

[@zn-n]

Elizabeth Boats these scams

[@Moneykingkevo]

With Diversyfund your monthly dividends build up and you make a profit with the properties are sold...all you gotta do is sit back relax and watch and wait for your money to build up

[@tellitlikeitis5045]

You forgot to mention the importance of creating an LLC before investing. LLC's are a great strategy against taxes and lawsuits.

[@kevinknight233]

you can only use VA loans for a primary residence

[@jalabi99]

One of my friend's dad is a contractor. One day he came over to my house and saw me watching HGTV's _Flip or Flop_. He spent the next hour cussing at the TV screen about how stupid the show can be, like how every single time they find some "surprise" that costs them thousands to fix. "No contractor worth their license would have those 'surprises' every single episode!" I can't watch that show any more because I hear his voice in my head LOL

[@Mrsimpleton26]

jalabi99 lmao 😂

[@nickk861]

But they do buy the houses no inspection at auction

[@AlanJWatkins]

Partially agree. They do stage alot of that but DAMN I have found some pretty crazy stuff. Most recent I found out my overgrown yard was actually 2,500 sqft of asphalt covered by 2 inches of soil and 2 feet of ivy. That cost about $5,000

[@jalabi99]

Wow, that is crazy!

[@iamtheinternet7160]

Lmao my dad is the same. Although he continues to watch the shows, he sits there and criticizes it.

[@NicolasGanea]

Thanks for being realistic! It is like the chef world TV dramatize it... when in reality it can be boring and managing food cost and labor.

[@GrahamStephan]

🙌🏼

[@BoostAndRedline]

11:31 TeddyKrueger69 is like " hmmm what's that over there"

[@GrahamStephan]

😜

[@hearthealthyhustlebyjonath7414]

Hey Graham, liked. I have known a friend who’s property was ransacked by “druggies” in the city. They left drugs, broke in, screwed up the floors and walls .. there were needles etc. We spent all summer fixing it back up and making it live-able. But you’re right, as time goes on, the owner learned a lot and now typically avoids these issues.

[@farshadyasini929]

I’m a 15 years old is it possible if I learn about it and make my way up and become a successful man

[@ryancoleman8923]

I’m 16 and this is what I want to try and do

[@bmxadict1816]

Don’t want to brag but I’m 13 trying to get this all figured out early

[@noahcorona1397]

I’m 4

[@valuemotiv]

The fact that you are asking permision to become succeslfull means you will be broke

[@debbiedsinglegod4730]

You can be making up to 12k passively every week with bitcoin. It's really saved a lot of individuals this quarantine. My uncle introduced me to the platform in UK

[@Thetradingfraternity]

Love your videos brother! Keep up with the amazing content! I got a huge real estate team in SoCal, lets collaborate!

[@GrahamStephan]

Thanks so much man!

[@alisafavirealestate]

Congrats on having a great team! I do a lot of work in Santa Monica.

[@juanlopez-hg4xw]

I must say Graham Stephan is one of the few that really is getting hands on with how followers. Not just cranking out videos to get the views. Well that’s part of it.. but he really gives it to you like it should be done. Doesn’t sugarcoat it. Thanks a bunch GS... 🙏🏼🙏🏼

[@RachelSLee]

A very informative video, especially for those who want to make sure that they are making a good investment in terms of buying a house of your own.

[@GrahamStephan]

Thanks Rachel!

[@Iheartlifting]

So those problems you had with the waterline while renovating: did you get to write off those expenses in your taxes?

[@wafulamasikaAbbottjesselove]

SINCE NET WORTH BEATS NET INCOME, REAL ESTATE IS A TOP ASSET AS LONG AS THE WORLD POPULATION INCREASES.

[@GrahamStephan]

agreed!

[@nancyfahey7518]

Didn't take long for Teddy to train you. He's also worried your talking to the walls.

[@GavinJGallagher]

good video Graham, a lot of parallels with my own experience

[@GrahamStephan]

Thanks for watching!

[@v12bat51]

To get started in real estate investing I think places likes Detroit and Midwest in general make a lot of sense, as the property values are significantly lower.

[@jameskirkpatrick5569]

Yeah but who's gonna live there? Theres a reason those homes are so cheap in Detroit

[@joslu80eight5]

Insignificant amount of work shouldn’t stop anyone or make anyone scared of investing in real estate. You are already doing insignificant amount of work if you’re working a minimum wage job or working for someone you don’t want to work for. It’s like putting those 8hr shift in for yourself plus more because you want to assure the bag but the motivation comes from working for yourself you’re gonna want to do those extra hours. I feel like this is more of a mental challenge more than anything

[@ShaunCraikeHostHack]

Time really is the secret sauce of investing, be it shares or property.

[@GrahamStephan]

🙌🏼

[@snorttroll4379]

nope. its other peoples money

[@erickpina8802]

What happens if you buy a rental property and no one moves in for a few months ? Are u just wasting money paying off your mortgage?

[@KellanJames]

"You cannot deduct the cost of your own labour" - what a great point. Outsource, and move on to bigger and better things! Love your strategy for managing the properties - call the contractor, and then he calls you with whatever he fixed. I wouldn't mind receiving calls that go, "you had a problem, but it's already fixed - $50, please". Boom!

[@mattweller7379]

Kellan P. Would anybody even show up for less tha 50 bucks?

[@daanwever1725]

Could you tell me what you mean exactly with this? I live in the Netherlands and im just not sure what "deducting costs from labor" mean. Ad outsourcing, what are you outsourcing then exactly? Maybe its my lack of English, or the difference in countries. Hope to get an answer.

[@jero4576]

@@daanwever1725 dat je in je belastingsaangifte de kost van je eigen uren niet kan aftrekken maar van een aannemer dit wel kan hopende je hiermee geholpen te hebben grtn

[@goosecouple]

@@daanwever1725 If you do it yourself, your labor costs say $300. But some contractor may do it for a lot less say $50. So it is more cost effective to let the contractor do it, meanwhile you have the time to work on bigger things.

[@elizabethpenton2306]

@@daanwever1725 outsourcing is sourcing outside of yourself. So anything anyone else does for you is a form of outsourcing.

[@aim-for-greatn3z947]

Yup all markets are different the advantag I leaned from wholesaling was marketing you can find a possible deal and get seller financing. Theres many ways if you have direct access to a seller ESPECIALLY if you know to negotiate for both parties interest AMD create a win win situation for both

[@breakitdownbarneystyle508]

I listen to Kris Krohn and you just popped up in my feed. Seem like you know your stuff! I'm going to college for Real Estate investing and just got out of the Marines after 6 years. I have a VA Loan but want to make a living as an investor/landlord. What would you say is the best way to start?

[@TheC0mmentSection]

What if you create your own contracting business and then wrote it off to that business?

[@RealLifeMoney]

Nice exposed video haha. I like these real estate shows how they expect renovations to be so low like $1k and it turns into $10k 😂

[@GrahamStephan]

🙌🏼

[@HM-ro6cp]

Thank You.

[@hearthealthyhustlebyjonath7414]

Great point on remaining willing to hire out labor.. job will likely be done better / faster because expert doing the job. And wrote it off! The millionaire mind talks about this. Is it worth you cutting your own grass if you can hire someone else to do it for $20. How long will it take you to cut your own grass. If you can make more than $20 in one hour and it takes me one hour to cut your grass, you should hire it out.

[@ozzy032]

What if I LIKE to cut the grass??

[@fazeeugene9111]

Heart Healthy Hustle what if you weren't planning on doing anything that hour?

[@WiscoDrinks]

this does imply there is actually something you can do that is value added or cashflow positive. of course, if you can make 25 dollars doing anything else, you should outsource. 25 dollars an hour net is a pretty decent payrate for normal people.

[@debbiedsinglegod4730]

You can be making up to 12k passively every week with bitcoin. It's really saved a lot of individuals this quarantine. My uncle introduced me to the platform in UK

[@armandolevario4758]

Tish M Gonzalez how

[@ZeroSumLife]

Great Video! I don't do maintenance labor work my self either. Usually hire handy man or contractor to take care of it. What to look for in property for low maintenance cost? Low maintenance = peaceful life! ✌

[@GrahamStephan]

🙌🏼

[@animationcreation7078]

Everything good until you see that baphomet statue .... ILLUMINATI:am I a joke to you

[@deadman76111]

I’m trying to learn more ( taxes, mortgages, interest rates). Where should I start? I’m 20 years old almost finishing college with a nursing degree and I want to invest in real estate.

[@GrahamStephan]

BiggerPockets!

[@deadman76111]

Thank you!

[@xchubxyoda]

So when I thought everything in the graham KZbin realm had been perfected. You top it. With a dog. Living legend.

[@GrahamStephan]

Teddy did a “pawsome” job!

[@tylerk7577]

dislike for the terrible pun lol

[@Focusptch]

Thanks for the honesty about real estate investing.

[@GrahamStephan]

Thanks for watching!

[@sarahisanchez2637]

Im so glad I knew most of this! Thank you for making this.

[@GrahamStephan]

You got it!

[@alisafavirealestate]

That's great! Would love to know if you have any other questions!

[@cesarcossio4042]

Do REITs its more liquid less capital is needed and more diversification is provided while you can get any sorts of returns from capital and rental income depending on your risk tolerance, plus u do not have to bother managing the property. Obviously if you enjoy personally going and buying the properties plus managing them buying real assets might be the best way to go..

[@JOKBO1]

Love this video! You always keep it real Graham. I'll start my Software Engineering job very soon and I can't wait to start investing in real estate and other endeavors. Keep the good content coming!

[@GrahamStephan]

Thanks so much!

[@eddienajera5762]

How do you hire a property manager?

[@serban2139]

thanks, finally someone who admits it. it only becomes passive income after you put a lot of effort and time in it for FREE!

[@GrahamStephan]

Well, I mean it's not really free - it's just part of the process. Your time is absolutely made up and compensated once it's finished.

[@serban2139]

fair enough.

[@ZeeAndMia]

I really wanna start my own real estate empire. But first thing is that I’m afraid of my age stopping me. I’m 19 years old and have been educating myself on Corporations (C-S), LLCs, and investments for the past year. I believe I have what it takes but I’m afraid of banks denying me, me failing because of my age, and not having a college degree nor not planning on college. Any advice?

[@nicksteward1208]

Zee And Mia You can contact david_consults on Instagram for a better understanding.

[@geon-younghong7832]

What is 10%, 5% down,. etc, in that context, dude?

[@doctorqbert7643]

You can deduct the items you buy to fix it

[@user-mr1zs1np7w]

You have changed my future sir. Maybe in time i can go from rags to riches.

[@ThePatriot2]

Good luck, I mean that sincerely

[@whatitdo834]

And maybe I could move in with you

[@ap1986]

This actually gives me a lot of confidence. I just hit my 30s and I'm not really interested in being a millionaire tomorrow. I just want to be able to retire when I'm older lol

[@GrahamStephan]

awesome!

[@Kevinhanot]

The best confidence you can get is by doing your first investment and be profitable. This is an amazing feeling ! I did it after watching hundreds of videos and then bought my first rental prop and then 6 more before the age of 28... Know that it is possible then GO FOR IT. It is so cool to manage it !!

[@Mrsimpleton26]

Anything for teddy

[@GrahamStephan]

Teddy FTW

[@stiveyanes7528]

I like this because as a minor thinking of my future this is good way to see how this actually is, instead of all the other people sugarcoating things.

[@Itrustchels]

At 11:32 the dog was chasing a bug😂

[@刘剑-e7j]

capital has cost, even your own down payment has minimum 2% opportunity cost(you can buy T-bill instead). How can you justify positive cash flow if average rent-to-sale ratio is so close to 30 year mortgage rate? I see margin is very tight

[@nicksteward1208]

刘剑 If you need help on forex trading, bitcoins trading and real estate investment. you can reach out to David_consults on Instagram or [e-mail] .He is very reliable.

[@Kristina-mm2rl]

Teddy is adorable!

[@GrahamStephan]

He's the best!

[@mattsmith1332]

Its not easy to start. As long as expectations aren't to high it is usually a solid investment. That is hard to mess up.

[@cristiancortes4796]

Love the video, great heads up for people about to enter the real estate world!

[@GrahamStephan]

Thanks Cristian!

[@mohamedshour4529]

Lets say you pay 10% downpayment, and your rent income is X amount, don’t you have monthly payments to pay out your mortgage? So your rent income (X) should be higher than the monthly mortgage payment that you have to pay to the bank right? Or else you’de spend 20-30 years to fully own the property and start getting cash flow! Maybe it’s different in the states i don’t know!

[@MichaelP-ke1tm]

I have 2 questions. 1. In my area in Phx AZ, there are a lot of houses in a lower middle class area, houses around 200k renting out for about $1300 a month. Why would these investors buy these trash properties that have had almost zero appreciation since the crash and terrible cash flow?? I'm guessing they got great deals around 2009 during the crash??? 2. Renting out a duplex while living in it is less riskier than a typical rental investment, correct??? The numbers that you run to calculate cash on cash return is more flexible right?? Thanks.

[@GrahamStephan]

1. $200k renting $1300/mo is decent. Not the best but not the worst, either. That's much better than we're seeing here in California. Plus Phoenix isn't a bad area, either. Not the best appreciation but not the worst, either. I'd say it's pretty average all the way around. 2. Correct!!

[@cameronysidron2662]

Is there a certain ratio of property value to monthly rental that is considered ideal?

[@danielagalvan9166]

What advice or encouragement would you tell someone who’s simply afraid someone will not rent the property and they’d get stuck paying the mortgage themselves

[@raisingprivatemoneyrealestate]

Good luck at your event in Vegas. I am sure you'll do a great job!

[@GrahamStephan]

Thanks so much!!!

[@InvestorLifeInc]

This is so true! Not sugar coating anything! It is a lot of work and the results don’t come right away. But just stick to it and you will be so happy you did! When we started we had no idea what we were doing but we knew this was definitely what we wanted to do. 15 years later we’ve invested in over 100 properties and we have learned from many many mistakes!

[@NotoriousNUGS]

Have you heard of auction.com for real estate and if so what do you think about them?

[@247randomguy]

How are we supposed to get the money to invest if we already invested in real estate and still trying to pay it off.

[@MichaelJayValueInvesting]

Anyone else catch the special guest at 11:30?

[@ihdlv156]

Michael Jay - Value Investing its grahams tenant mr roachy haha

[@Ndasuunye]

@@ihdlv156 I didn't see a Roach

[@FKtdyvan]

Can you debunk the notion that in real estate investment it is important to start small? I am reading Grant Cardone, and he is saying that it is not profitable and a good strategy to start small in real estate by focusing on small deals that one can afford. In his view, that is not the best way to compete with real estate investors who get big real estate deals. He suggests that small real estate deals don't generate sufficient cash flow.

[@macranium]

I love watching a guy with a rented dog preach from his friend's foyer about making money. How about some specifics.

[@GrahamStephan]

😂

[@andrewb9595]

$900/month is a serious return. Everything in my area that's cash flowing with 20% down is closer to $200-$300/month after expenses. That's a difference between only needing 4 properties to quit my day job vs needing 15.

[@GrahamStephan]

The $900/mo was bought cash for about $60k + renovation, so that’s why the return was pretty high!

[@beaviswealth]

Congrats on the sweet news with Jeremy :)

[@GrahamStephan]

Thanks Brandon! Really looking forward to it. Nervous about speaking to so many people but will somehow get through it 😂

[@beaviswealth]

You'll do great! Just picture the audience as a bunch of cameras LOL 😂

[@ummk8741]

Graham Stephan But if you think about it it's all people you have spoken in front of before. And better yet only the once who leave good feedback haha.

[@Joeezep]

Great video man. Appreciate the honesty!

[@GrahamStephan]

Thanks so much for watching!

[@TartarianTopG]

So we are back to smashing lol

[@ML-pd7so]

Who can say no to a puppy? Also, thank you for boiling this down to the basics. I have been debating making a move since I was intimidated with all owning property entails. I don't do a lot of my own handy work and am just getting started with my career so don't have much time to spend on a venture like this. Found out that some of my friends do property management for properties nearby where I would like to buy and hearing this take on owning property makes my potential slow and steady start seem like a worthwhile plan. Thank you for your honest take on what real estate investing looks like.

[@GrahamStephan]

You got it!! 🙌🏼

[@lesliecooper1443]

Teddy was loving the affection lol

[@unknownanon6575]

What do you do if you're renting a property and the tenant is paying the mortgage for you but they leave, do you pay out of pocket? Anybody have any ideas other than paying out of pocket till new tenant is moves in?

[@jamesskelton698]

Yea, you put 3 months operating cost in a separate account for just that.