Responding to Gary Vee's thoughts on Homeownership

As one of the few Real Estate guys here on KZbin, I felt it was worth addressing and responding to Gary Vee’s thoughts on homeownership - and this is my view. Enjoy! Add me on Instagram: GPStephan
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So lets start here, and I think this was the main statement that got a lot of people shook: Home ownership is a bad use of capital.
The answer to this is debatable - there are situations where he is very much right, and home ownership is a TERRIBLE use of your money. But there are situations where home ownership can be TREMENDOUSLY more profitable than anything else you do. So how do you know which category you fall into?
Well:
If you’re buying a home to impress your friends - I think that goes without saying, that’s stupid.
If you’re buying a home because you want to say you “own a home” - chances are, that’s not a smart move.
If you’re maxing out what you can afford just to buy a the largest home you can - Ummm…no.
If you want buy a house to live in, but you also want the flexibility to move around as often as you like, wherever you like - Then I have a feeling, you’re better off renting.
If you’re running a business where every single dollar you invest BACK into that business doubles your profit - well, it’s safe to say, then you should focus on that BUSINESS and not tie up capital in a down payment buying a house, and I think Gary is right.
On the other hand:
If you’re buying a home because it’s undervalued and you can fix it up to make a profit - chances are, that’ll be good move.
If you’re buying a home because it’ll be a cash cow rental property after you’ve lived in - that’s a good move.
If you’re buying a home because you’ve crunched all the numbers and discovered the NET cost to own is CHEAPER than renting - then you should absolutely go for it, and buying a home can be a smart financial move.
Here’s the point I’m getting at though - your INTENTIONS and REASONING for home ownership should be the main topic of discussion, not the act of buying a home itself.
And unfortunately, the biggest problem I see with home ownership is that nearly EVERYONE considers their home an INVESTMENT, when in fact, very few people EVER truly run the numbers to determine whether or not it’s ACTUALLY a good use of money.
In order for a home to be an INVESTMENT to me, it needs to be something I can buy under market value - it needs to be something I can fix up to further increase the value - it needs to be something that cash flows - and it needs to be something that would get me at LEAST a comparable return to investing in the stock market. Now, do MOST people think of any of this when they buy a home? The answer is NO.
So why do people call their home an investment, anyway? For most people, owning a home just acts like a forced savings account, where every month you put some money away where it’s safe.
The thing is, when you begin viewing home ownership as an INVESTMENT FIRST, PLACE TO LIVE SECOND - it’s like starting to see the entire world in the matrix, where you notice the things most people don’t. Once you start viewing home ownership as not a GOAL to accomplish, but whether or not it’s a viable INVESTMENT - you begin filtering out all the non cash flowing properties, all the homes that barely make a profit - and instead, you can focus on few homes that becomes a money making machine. It’s also important to COMPARE that money making machine with other investment opportunities you have access to, and then decide from there - based on your risk tolerance - if it’s a good move or NOT.
And unfortunately, like I said, almost no one does this.
And uhhh…yeah. That’s my response to Gary Vee.
For business or one-on-one real estate investing/real estate agent consulting inquiries, you can reach me at [e-mail]
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[@ZacharyLaid]

I love Gary Vee but Graham is certainly right here, it’s how YOU LOOK AT THE HOME, as an INVESTMENT and not a place to live.

[@GrahamStephan]

Haha if Gary Vee responds to me, responding to him...I'd be amazed

[@markmittens]

But this is exactly why home ownership doesn't work for a lot of people. The world has flooded cities with investment money artificially inflating the prices. If you took 10k in 1980 and put it in the s&p 500 you would be much better off than a home.

[@tovopro]

Actually, to be more precise: Home as an investment first, then a place to live second. Let’s not forget about the recession of 2008 and one of the major elements that help lead up to it.

[@luigidaniele6613]

@@markmittens With the average home yes, but that's why you should never buy an average home and wait months for the best deal.

[@GroundbreakGames]

Ya because nothing unexpected can happen with a home... Ever had a water pipe break? House fire? You are taking a risk to make money. Gary is talking about finding your passion via self awareness and then deploying hard work to make that passion an income.. He never said buying a house can't make someone money. You people completely miss the point in order to make yourselves feel smart. You aren't. The proof is in the pudding. How much are ya'll worth?

[@anthonyunofficial]

This is why I refer to making my first home purchase as “losing my Vee-card”

[@InvestingBookSummaries]

Anthony's Garage lmao

[@RealLifeMoney]

HA! 😆

[@jacobbarncastle5994]

Lol

[@tmnic6971]

@@amylieu6084 this is called the nerd/geek tax. You get picked on in high school, you own the world after

[@amylieu6084]

@@tmnic6971 lol thats not really how it works. that is like .000001 percent of all nerds.

[@ZappedCard]

If you aren't a savvy investor, real estate is a low "maintenance" type of almost passive investment. But I agree with Gary Vee especially if you currently aren't paying much for your living expense it makes sense to invest in higher yielding investments. The catch is, you'll be taking on a much greater level of risk then most real estate investments. So if starting a business or keeping on top of the markets isn't your thing, real estate is probably your safer bet.

[@30minutesLess]

Dreamy Money TV either way if your all about making money neither are strenuous

[@tropicallyfit]

@@30minutesLess *you're

[@purplefabian]

The ROI on rental property is crap.

[@MrGiggity890]

Uhhh real estate investing is far less passive than dividend growth investing, but ok

[@sanjayaiyar4351]

@Dream Money TV. Disagree. People work very hard for their money. After all that effort they should definitely spend the time learning how to invest properly and become relatively savvy. It’s absurd anyone would come up with excuses why they can’t open their web browser or KZbin app and learn but somehow have time to go drinking, on dates, binging Netflix, etc. Whatever you decide to invest your hard earned dollars into, I hope to dear god you did everything you can to try to become as savvy as possible.

[@tonyanderson6085]

Hey Graham, just wanted to let you know that I'm one of the minuscule number of viewers who is actually putting your advice to work. You inspired me to house hack a duplex and jump into being a landlord. Closing March 1!

[@GrahamStephan]

Well done!! That was my best move ever. Congrats!! Let me know how it goes!

[@Midnight_Rain_Wolfgang-Telos]

Wow, great job.

[@corynorell3686]

On what grounds can you make the assumption you're one of the 'miniscule number of viewers'? Lol, calm down bucko.

[@mattmac5599]

Update?

[@travis3567]

Cory Norell 11:00

[@BrentInvesting]

I put a down payment on my home...now have over 100k+ of equity....used a HELOC...to buy a rental.... it's cash flowing....refinanced and paid the HELOC off....now I have my renewed credit line :-) Back out there for the next round!

[@GrahamStephan]

BRRRR METHOD FTW...that's the best!

[@350zLeMans]

what kinda rate did they give u on the HELOC?

[@BrentInvesting]

@@350zLeMans Hello! 1. Cost Me $398 to open the HELOC. 2. 80% LTV HELOC. 3. Annual Percentage Rate 5.24%. (Adjustable) 4. I Choose 1% Payback Per Month. I Work At The Credit Union, I Got My HELOC From - I Repayed my HELOC after my SFH was refinanced and I now have my HELOC avail for use.

[@DonteeWeaver]

Congratulations!!

[@jake10373]

That's exactly what I did! Rinse repeat. Onto the next rental!

[@viktoriya2145]

Gary Vee has left the chat...

[@GrahamStephan]

Viktoriya Tolkaneva has entered the chat

[@Latinblood59]

Oscar O you mean the fat guy behind the desk 🤔

[@Aquadood23]

You are the justin Y of this channel

[@stevenk4920]

Francisco Xavier she has a video showing her face on her channel

[@aurelianspodarec2629]

Firefighters entered the chat! :D

[@avocadotoast102]

MARRY ME

[@GrahamStephan]

I DO 🥑 🍞

[@benjamin7114]

Match made in heaven .

[@AustiuNoMatterWho]

lmao that was good

[@RealLifeMoney]

Thats actually really funny 😂😂

[@Samurai31631]

So cool how Graham interacts with the peeps.

[@mikemagruder9589]

You are far wiser than your years. Stay humble and keep doing what you're doing. Thank you for the great videos!!!

[@GrahamStephan]

🙏🏼

[@maqsview]

Some of the gems you drop are so mind bobbling I gotta rewind and pick apart your brain sometimes man. Keep up the great work!

[@GrahamStephan]

Ah thank you!

[@RealLifeMoney]

Lots of great ideas in one video! Some videos I put on a faster speed but need to listen to every word here! haha

[@AndrewOborny]

My whole life has been like a matrix seeing everything differently than everyone else. Saw behind the scenes of my dads rental business and construction business since i was a kid. So every house i look at i see it from an investment perspective.

[@GrahamStephan]

Lucky to start seeing that way at a young age!

[@AndrewOborny]

@@GrahamStephan absolutely, didn't learn about rental properties in school. Haha

[@calvinraab8798]

He says you should not buy a house and save the money and put it into a business that will grow your wealth. The other option is to save money for a house that you can rent out and grow your wealth. Real estate is a business. Love your input!

[@GrahamStephan]

Thanks man, I wish more people did the numbers to really figure out which is the best choice!

[@Everydayprojects365]

I was about to say the same thing.real estate is a business

[@seneca983]

"The other option is to save money for a house that you can rent out and grow your wealth." But if you're going to be a landlord doesn't it usually make sense to be a homeowner first? It's kind of like being your own landlord and paying rent to yourself, but there are a couple of advantages. First, you yourself are probably the easiest tenant you can have. Second, that "paying rent to yourself" might have a tax advantage. Usually actual rent income is taxed but the imputed rent you're paying to yourself often isn't (though some places, like Switzerland, do tax imputed rent). Also, even if the imputed rent isn't taxed, the interest on your mortgage might still tax-deductible (which is a totally stupid policy, but you might still want to take advantage of it).

[@lukewilliams9772]

Graham once again you are completely reasonable and wise in an unreasonable world. Thanks!

[@GrahamStephan]

Thank you! One day I can be the Philip DeFranco of the finance space haha

[@AmazonandeBayGuru]

But Gary, I bought my home at 25 and I’ve owned it for 3 years and it has increased in value over $400K Pretty hard to earn that in 3 years!

[@GrahamStephan]

Not really...I spent a LONG time trying to find and identify a location I felt was poised to go up in value. I was able to buy the property under market value (instant equity), fix it up (additional equity), in a market I felt was going to go up in value (and it did).

[@GrahamStephan]

Keep in mind we're talking about $1.3m+ homes here....so $400k profit isn't like a $200k home going to $600k

[@AmazonandeBayGuru]

Graham Stephan fair enough, mine went from $600K to $1M but that is in the booming British Columbia real estate market!

[@heyitsrs]

@@AmazonandeBayGuru you're just lucky lol not much else to say here

[@canadude6401]

Amazon and eBay Guru I have similar story in Toronto. I enjoyed a 20% increase in (2016) and 22% (2017) increase in my home. I don't know many investments that earn that kind of return, but again...market timing and conditions. I know of a Canadian who bought in Florida in 2010 when the Canadian dollar was at par with US dollar. and just after the housing collapse where foreclosures could be had for 50cents on the dollar!. They purchased a home cash for $300,000, 7 years later, now it's worth $700,000 USD which with the current exchange rate amounts to $1,000,000 CAD. $700,000 equity in 7 years. I sure wish I did the same as they did, but didn't have enough money to throw around in 2010. Real Estate has been my best source of wealth even though I only own one. But everyone's mileage may vary. Buying in L.A. right now would be a very risky move unless you do well at a fixer upper.

[@robert_iacob]

My goal in life is to have your work ethic and be 5 videos ahead on my upload schedule! You’re such an inspiration in so many ways 👊🏼

[@GrahamStephan]

Thanks Robert! That means a lot, I basically drove myself crazy to get 2 weeks ahead on videos - so now I'm just trying to keep up the momentum and stay two weeks ahead!

[@robert_iacob]

Graham Stephan you’re welcome! It’s honestly incredible. I will push myself to film a bunch of content and have it ready so that I never miss a day. Your channel is a perfect example of consistency and KZbin success.

[@calvinraab8798]

Planning ahead is always great! Every Friday I film 6 videos, I post three videos a week, and by filming six every week I really get ahead and I know I will always have a video. Plus if something comes up and I can't film on any given Friday I still have more than enough videos on hand to post.

[@robert_iacob]

Raab Journal I’ve always wanted to set a day and do this but I have trouble finding the time. It would take a solid 10 hours or so to film and edit that many videos 😭 maybe I just suck at editing haha

[@calvinraab8798]

@@robert_iacob If I did it all in one setting it would take me about 10 hours as well! I split it all into 3 different sittings. I film on Fridays which takes about 4 hours. I do my research and write my scripts on Thursday nights. And I edit videos in different multiple different settings. Yea I am trying to improve on editing. my goal is just to make every video better than the last. I have also seen your videos your edits are great! - Calvin Raab (creator of Raab Journal)

[@beaviswealth]

Good perspective. I find it funny when gurus like Tai Lopez talk like they are experts in Real Estate. They are very good at what they do but it's nice to hear from some who actually specializes in it, like yourself!

[@GrahamStephan]

thanks man!

[@markkao9954]

How dare you insult master tai lopez

[@avamasquerade]

I look at Tai and *immediately* think con artist. Not sure why others don't catch it, it seems so obvious to me...kinda seems like low hanging fruit if you wanna make a comparison between Tai and this guy tbh...

[@thinkpassiv]

Brandon Beavis Investing I thought Tai Lopez also do real estate investing!

[@dao9964]

My impressions are he's a con tho *Tai.

[@Lumencraft-]

If you buy the house right, and keep it at the low end of the budget, it saves a ton of money vs renting. It has been a huge blessing for my wife and I. We looked for a year, bought while the marked was down, and purchased one much lower than the credit we were approved for.

[@jaredburgster3689]

Graham! Please do a video on finding and working with good property managers! Thanks you’re the best!

[@GrahamStephan]

Sure!

[@tonygonzalez8832]

We're waiting on the "truth behind Dan lok" video 🤦‍♂️

[@XRXONE]

Please this!

[@InvestingBookSummaries]

Maybe some day, haha

[@mesta9997]

When A was Buuuuwoook!

[@Markism07]

Tony Gonzalez check out coffee break 2 channel. He has a video about woke dan and greedy dan

[@SleepyDan]

He can't. Dan Lok copyrighted his name 🤣

[@Mister_DMG]

I bought my house 2.5 years ago for $150K and currently, it is valued at $380K so buying a home can be good.

[@tonynawn]

Bruhhh what city

[@Mister_DMG]

tonynawn Las Vegas, Nevada

[@Paul-zv2gj]

There are lots of scenarios where owning a home is a good choice. He's just suggesting it should be a decision that's considered against the alternatives.

[@Mister_DMG]

@A W Nope. Worth $400K now, booming market

[@ItsDalan]

I love watching your videos and I love how you include a description in the comments for when I’m in public and just want to learn on the go thank you for doing this!! Keep up the great content! 🔥

[@GrahamStephan]

Thanks so much!!

[@loganpriceofficial]

your videos are always so helpful man... and yes I always smash that like button LMAO!

[@GrahamStephan]

haha thank you!

[@drakemiller4676]

Leverage real estate for cash flow 💸

[@GrahamStephan]

YES!

[@BKNb77]

What do you mean by that?

[@drakemiller4676]

Brian Browne use a property to get income

[@TheCRHKing]

Wow. You should write a book.

[@drakemiller4676]

TheCRHKing thanks lol

[@SantaBarbaraAlberto]

Dear Mr. Avocado Toast, Had mine for breakfast this AM and it was terrific. Agree 100% with you on this. We came through at a different time when information or mentality was not readily available. At least in our neiborhood. We tell this to people all the time, there is no competition at the top. Lots of empty seat waiting for those willing to do the work. We remain thankful, greatful, and blessed.

[@CLF-007]

Glad you made a video on this. I watched Gary V's video on that topic and thought the same thing. Both are good views to consider based on the person's circumstances. Great video!

[@GrahamStephan]

Thanks!

[@privacywanted434]

I like this video. I thought too many people jumped down Gary's throat because they didn't like hearing that buying a home isn't a good investment but he's right. If you're an entrepreneur, which is his target demographic, it's better to put that money into your business and not a down payment. For me, his video was timely. I was looking at homes last weekend and I decided not to buy. I'm starting a business and the money I would've used for the down payment, I'm going to use it for the business instead.

[@GrahamStephan]

Yeah, it totally depends on the situation and person - Gary has a point depending on the situation

[@hunterentrepreneur520]

Yeah, saying it's bad or good just for the sake of having a side, isnt smart, thanks to Graham we can have a no bs advice, where we can take decisions aligned with our goals.

[@GrahamStephan]

thank you :)

[@LIBRAGOD90]

Just so knowledgeable and transparent 🤷🏾‍♂️

[@devin_leary]

Your voice of enthusiasm at 3:15 lol! Love it!

[@kikkibibbi]

My younger 18 yo bro is starting to get into REI so as a protective sister I’ve been binge watching your videos so I know some of what he talks about with me. You encourage me because I worry about him because of his age but I know you’ve made it and thus so can he! You’ve been super helpful! So thank you! You never look at things through only one lens. (Also commenting for the algorithm 😂)

[@GrahamStephan]

Ah thank you so much, have him watch the channel!

[@kikkibibbi]

Graham Stephan when I told him about you he was like “oh yeah, I even reached out to him one time” 😂 he’s so ahead of me!

[@jgtv6269]

Krys awesome of u I told my younger bro the same thing 😀🤑

[@nordette]

Your a good big sister

[@YakMotley]

I actually agree with Gary. I also own 3 houses free and clear. My life was two unpredictable and I moved to much for my work. But this allowed me to stack cash like a beast. Then when I settled down I bought my rentals.

[@GrahamStephan]

🙌🏼

[@devonpeters5655]

AMEN... Great perspective and very true. Thanks!

[@GrahamStephan]

thanks for watching!

[@devonpeters5655]

Graham Stephan for sure. Also, I wrote that before finishing the video. I just finished, and it’s pretty funny and kinda sad at the same time how true your last statement is about how few people will actually use the wisdom/advice they hear haha. That can put a lot of things in perspective!

[@herbl4202]

i always smash the like button great video as always man, saving up for my first duplex now because of your vids keep it up!!!!!

[@GrahamStephan]

Ah thanks!! Good luck keep me posted!

[@ethansorenson6200]

Or you could take the down payment money and buy tons of Subway

[@GrahamStephan]

That's at least a 100% ROI

[@louisbuzzworld]

thats what Warren buffet would do

[@zoomtv2577]

He's just saying if someone wants to be a entrepreneur don't buy a house and use it for the start up business instead

[@GrahamStephan]

Agreed, I watched both videos in full before making this - his clarification and his original podcast video.

[@dh2266]

So if you don't buy a house, you still have rent which can be more than a mortgage payment (which gives you tax write-offs).

[@zoomtv2577]

@@dh2266 but renting can be cheaper sometimes. And once you buy you have expenses like these. Land tax, maintaince, and more. Say if your aircon breaks that could be a bill up to 4 grand. But this is a debatable topic

[@justthatpm]

Awesome video Graham! Probably going to rewatch this again because you gave some much good information that would be valuable for anyone.

[@GrahamStephan]

Thanks so much!

[@yadiralanderos3802]

Thank you for all the information you share.

[@GrahamStephan]

🙌🏼

[@TeddyMiller]

Can you please do a tour of your garage!

[@MikeRosehart]

No drama. Graham Opens mailbox to a law suit, lol. Jk, gary vee isn’t grant cardone. Good video. Maybe I should do a graham Stephan response video :P haha

[@GrahamStephan]

Do the Graham Stephan response video ;)

[@marer1000]

It's not like Stephan will go to Vee's place of business, trespass and disrupt the people working there. No reason for Vee to sue him right?

[@MikeRosehart]

Graham Stephan haha you know I’m going to now. Unsub, dislike. At least I’ll hit the notification bell ;)

[@MikeRosehart]

steven I think he’s fine :P

[@Ndasuunye]

Grant Cardone sued someone? 0_0

[@deelorenz8710]

Loved this! Learning about this at 18 and I'm from the Philippines!

[@GrahamStephan]

🙌🏼

[@skillnub70]

I saw him upload this video and knew you would make one about it 😂 good stuff man

[@GrahamStephan]

thanks!!

[@wnytrashtrucks]

Got my Avocado toast shirt yesterday can't wait for it to be washed and wear it for the memes

[@GrahamStephan]

ENJOY!!! They’re so comfortable!

[@IAmJeka]

@@GrahamStephan how would you feel seeing someone's bank statement with a $50 charge from buying your merchandize? Would that make you scream of anger? Haha would love to see that

[@ResourceTalks]

*So I bought an apartment because there is an avocado-toats shop just down the street. Is that good or bad?*

[@GrahamStephan]

AMAZING

[@coachaaronmba]

Love Gary Vee and I appreciate the conversation around this topic! I'm currently in my house hack and love it! Besides having to replace my furnace and roof sooner than expected.

[@GrahamStephan]

🙌🏼

[@MrWorldOfQuests]

Yeah, I think it applies to any business. Graham you have best insights in these fields so far (or at least you are sharing them) thank you. :)

[@GrahamStephan]

Thank you so much!

[@sdrasrodriguez6010]

And the long wait for Monday begins

[@GrahamStephan]

THE COUNTDOWN HAS BEGUN

[@DoubleOddJosh]

Sooooooo which is the better investment again? Home ownership or Bitconnect?

[@GrahamStephan]

BITCONNNEEEKKTTT

[@InvestingBookSummaries]

Tough choice!

[@Cahluvca]

Depending on the circumstances I agree somewhat. I waited till after getting a certain level of "passive income" before purchasing my primary home! Love the discussion regardless!

[@Brownie0027]

Great videos please keep sharing your knowledge

[@GrahamStephan]

Thanks for watching!

[@TheAmazingLucas]

Rule of thirds my guy. Scoot over a bit. My eyes are constantly being drawn to the right because of the negative space. Good vid thooo

[@GrahamStephan]

Oops...still learning, getting better :)

[@dh2266]

I have no issue with it. In fact it makes it easy when you occasionally throw graphics up on the screen.

[@dlnoir5960]

Is that THE Lucas?

[@icedynamite1560]

The Amazing Lucas he technically is using the rule of thirds. Just too far off lol

[@HeatCheck007]

Amazing Lucas... I personally cannot get enough of your videos. "OH MY GOOODNESS! "

[@MrBaseDubstep]

Graham great video firstly! Since you are the God of real estate pumping out KNOWLEDGE, I figured you would be the best to ask! As your friendly neighbour across the Atlantic Ocean (AKA Europe), it is great to hear about real estate investing in the U.S. and all of its glory. However, I feel that in Europe, be it Italy, UK, Germany etc..there doesn't seem to be the same opportunities in creating wealth in real estate. Could you address this and perhaps prove me wrong or how us 'Europeans' can overcome this etc..? Hope I'm making sense! ps. SoRry for BaD EngLIsh (not my first language)

[@sportsbettingeducation]

That's interesting. In America we have so many different markets. For example in Texas you can immediately cash flow rental properties. The same houses that are 250k in Texas cost 750k in Cali.

[@anythingtv6683]

Tax is killing us in UK

[@sportsbettingeducation]

anything tv that’s brutal. If you can own something and still have to pay a ton of taxes what’s even the point of owning it. We are very fortunate Trump has lowered taxes in America.

[@MrBaseDubstep]

@@sportsbettingeducation Exactly! Would be great to see Graham address markets outside of the US for his European viewers! Unfortunately, there are no youtube channels/ internet articles that provide information that is widely informative on real estate apart from the US market. For example, can EU residents invest in real estate in the US? etc.. Would be great see some videos on this :)

[@SpicerCapital]

Yeah, that was upsetting to hear... So glad I didn't hear him say that before I got started investing in real estate - I might have been conflicted. Thanks for spreading the good word, Graham!

[@GrahamStephan]

Thanks so much, man - figured I could at least clarify some thoughts from my perspective since it's not an easy decision for people to make

[@carlosrendon5396]

You are the man! Learning so much from you. THANK YOU!!!!!!

[@GrahamStephan]

Awesome!!

[@franklinlin1272]

Warren Buffett says that a lot of geniuses go broke because they use too much leverage. In a recent video, you suggest that taking out a mortgage will increase your rate or return and reduce the opportunity cost (so that you can buy say another property). What makes real estate a market where people are far more comfortable using leverage to their advantage than say the stock market? I personally also believe it's smart to take a mortgage out because of the general barrier to entry, but nonetheless, it is leverage. Your thoughts?

[@GrahamStephan]

Because: 1. The interest rate is a write off against your rental income 2. You can lock in a long term, fixed rate loan at a relatively low rate right now 3. Inflation eats away at the overall "balance" of that loan over time 4. Rental income tends to be fairly consistent Your mortgage just becomes a business expense, just like advertising would be for a product. Except it's a 30-year predictable expense that doesn't increase in price. As far as over-leveraging, you ABSOLUTELY CAN. But over-leverage, to me, is taking on a short term, variable rate loan with the expectation of flipping the home or refinancing it in the short term for a profit. Buying a rental property long term is the exact opposite of this.

[@simoncohn-gruenwald8867]

Rents dont just drop like flies. If youre cashflowing, you’ll likely be cashflowing forever and if you’re not, it shouldn’t be for long. The return is consistent, unlike leveraging stocks, especially where if you drop enough, its over. With homes, this can only really happen in a crash where the value of your home is less than you bought it for.

[@rabarjamal3213]

Come on people how many of your PERSONAL friends uses the advice that you give them to save/make money? These are people that see the results first hand and majority will ignore you and go their broke ways let alone a guy on KZbin that they don't know personally. With that said don't worry about "competition" most people are too lazy for that.

[@GrahamStephan]

Agreed, the competition out there is nothing when you really think how few people actually put in the effort!

[@WesleyFranks]

This was extremely helpful. The wife and I have been wanting to build our wealth. This is extremely valuable information.

[@GrahamStephan]

thanks for watching!

[@swordstrafe]

I love that you can be objective about these topics despite your personal experiences.

[@GrahamStephan]

THANK YOU! I try my best!

[@J.Red-The-Truth]

How do I click the notification the second I see it and there is already 11 comments ?? SMH

[@GrahamStephan]

I have no clue, people are fast!

[@markj2002]

Gary's worth 350+ million. Go to his Instagram and look at one of his latest videos with him predicting back in 2010 that people will be making lots of money doing simple things online.

[@GrahamStephan]

I don't doubt his worth and I don't discredit that he's done some INCREDIBLE things - I agree with his thoughts, but expand certain situations as to when it will and when it won't apply

[@RussianBot69420]

People have been "making lots of money online doing simple things" since 2000

[@Theoneandonly88able]

@@RussianBot69420 exactly, gary is not the only person to know this 2000 era boom. He can be pretencious and arrogant at times.

[@mrjones944]

Like a fortune teller predicting you have a mother...I had never heard of Gary vee before his video. Sounds like an egotistical turd

[@ritadougherty4403]

Another excellent video... Again thank you so much for all the hard work you put into what you do

[@GrahamStephan]

Thanks!

[@keith6293]

SMASHED that like button way before you asked me to...because I love your formula. House-hacking + fix a below market value house = rip the benefits in all directions!

[@jorgegomez524]

Dont think homeownership is the best investment at this stage of the cycle, but holding cash is today the really worse use of cash. lol

[@CommandoMaster]

Renting is basically throwing away money. If you put a down payment and pay a mortgage on a home, the money stays with you and you have full control of the property without having to worry about getting kicked out by a landlord.

[@rubyoro0]

It depends...My brother-in-law and wife are 45. I say they shouldn’t buy....their train already left. They pay $700 with all bills included. They live like sardines..., but if you never saved up..well that’s too bad.

[@marer1000]

Completely miss the point of the video. You also need to learn something call opportunity cost, renting vs owning to live in is a case-by-case basis and is a different topic than investing. Anybody who's biases is absolute just like Gary Vee's is the reason Stephan made this video to begin with.

[@NotShowingOff]

Not necessarily. Most ppl will buy on a mortgage with about 20% down. That interest over 30 yrs will be a killer because the amount you are paying for interest will be almost as much as the principal. Now when it comes to renting, you can’t be charged for too much based on the area. This is all assuming you rent cheaply. That being said, most ppl want to do other things with their time and don’t want to spend off hours chasing tenants for rent. And don’t want to spend ludicrous hours driving. So buy for the life you want.

[@jacklyndeans6590]

All valid and great points, Graham!

[@GrahamStephan]

THANKS!

[@bluetick67]

If you haven’t done a video on it yet, could you cover business structure and how you operate your rental properties? Are you an LLC, sole proprietorship, etc? Thanks for the great advice, quality videos, and avocado toast merch!

[@yovizx]

:D FIRST! I’m back

[@GrahamStephan]

YOVANI!!! OUT OF NOWHERE TODAY, WELL DONE!!

[@Nevil_Samnauth]

Wow no russian girl yet? Surprised

[@GrahamStephan]

Russian girl has entered the chat

[@annacost3373]

Я здесь

[@mesta9997]

🧞‍♂️

[@InvestingRobinhoodInvestor]

Great response video Graham! Home ownership really depends on your personal situation

[@GrahamStephan]

thanks!!

[@RichardWalls]

To add on, I enjoy home ownership quite a few for reasons that have nothing to do with "investment", though that should be a consideration. I just enjoy having a space that I can remodel as I see fit (within reason), and home projects, while sometimes frustrating, are extremely gratifying when complete.

[@goikofinanzas]

That Russian girl is hot a.f you guys should do a video together .

[@GrahamStephan]

I'll definitely do a video with a fat man behind a computer!

[@PreventClutter]

@@GrahamStephan 🤣 dead

[@D-Paramountcy]

Gary vee is the definition of cringe

[@CosmicGiles]

I’ve been sold on real estate investing since purchasing our first home that we currently live in. We got it below market value and have been able to turn our $500 down and $5k of “upgrades” aka paint and flooring into $35-40k of equity in the property in 6 months. Can’t wait to move onto the next one 🤓

[@2ndGenBen]

I love Graham Stephan style investing tips because your always like a mix of the extremes like Dave Ramsey or Gary Vee

[@GrahamStephan]

🙌🏼

[@neonclown2727]

Say what you want. Gary's a clown.

[@airlebron7467]

Hes very simplistic in his explanation. He shouldn't be taken serious all the time

[@daryl9799]

Agreed just another supposed know it all.

[@Imaboss42095]

I love how you decided to shed a little light on a video that everyone else is considering to be so wrong.

[@GrahamStephan]

🙌🏼

[@dwongcarreras]

Love the energy and content. Learning a lot. Keep up the great work!

[@GrahamStephan]

Thanks!!

[@ajshaughnessy4623]

You add such great value, Graham! Out of the many real estate mentors out there you do an awesome job delivering the message, keep up the good work!

[@GrahamStephan]

Thanks so much!!

[@reviewbrah522]

I'm using what I learned from you and am pursuing my license as we speak. Thank you Master Graham.

[@GrahamStephan]

congrats!!! let me know when you pass the test!

[@TheGreatTradingBros]

Great thoughts. I also appreciate how smooth the video is with very little amount of takes

[@GrahamStephan]

Thanks! I do a LOT of takes, but piece together the best bits!

[@TheGreatTradingBros]

Graham Stephan well I have really enjoyed watching you progress over the past 2 years. Keep it up

[@chemilmk8361]

So much respect. Very well put

[@GrahamStephan]

Thanks!

[@EmilioMendiolaJr]

Stable long term for me. Bought my house at 19 and it was just an ok house with it being close to market price. It will (hopefully) get good appreciation given that it’s in a good location and neighborhood. I screened prospects for a roommate and found one, now my mortgage “price” is less than half. And now I’m saving to brrrrr some properties now😁

[@rmt3589]

This is how I plan on starting in real estate: So I'm a very lucky and resourceful guy that's good at playing systems. I honestly never got... motivated enough to worry about money till last year. I'm in poverty and am working with a place that my old church started to help me get my life together. Right now one of the organisations is helping me get employed, and once I gain an "income" I get to work with organisations to help me budget, get an extremely undervalued house with habitats for humanity, and to get an undervalued car once I can drive. I'm working on a few information products (and getting over suicidal depression, I can't tell you how hard it is to motivate yourself when your number one passive thought is how you want to be dead) and setting up budgeting plans, and planning to take the courses (for free if things go according to plan) that I need to get a real estate license. This is all to prepare myself for the step after this. My plan is to buy at least one Vangard Dividend Index Stock per paycheck. I plan on my money being relatively liquid so I can continue to invest in real estate and fund my entrepenual persutes. (Which for the information products should easily cost less that 50/month, which will hopefully come out of what they make) What do you think of this plan?

[@RealLifeMoney]

This has been a big topic with Gary Vee and there are valid points. I agree a house should be viewed as an investment first and place to live second. For a normal person with no sense of money and paying into a house as a forced savings it could be worth it. But there are possible opportunity costs to look out for. Thanks Graham!

[@Papershire]

thanks Bro.

[@GrahamStephan]

Thanks for watching!!

[@125henni]

This is why i enjoy your videos. It can't really get more unbiased to this. My whole life I've been hearing the cliche answers about how renting is a waste of money, a house is an investment, blah blah. And I always felt that that was only half if not only part of the truth. I'm currently debating what my next move should be for when i move out of my apartment next year. I know i want a house, because i need more room for my daughter and I, but I'm not sure if I should buy or rent.

[@raitguy]

I LOVE this channel. Many people beat the drum of EVERYBODY NEEDS TO BUY and you tell the TRUTH

[@GrahamStephan]

thanks!!

[@realestateinvestingtips]

Buy a 4 Plex at 25years old using FHA. Live in 1 rent out the other 3 units and live rent/mortgage free. As it appreciates sell it, take the profits and go buy a house cash. This is a beautiful strategy for anyone. Great channel Graham 👍

[@GrahamStephan]

🙌🏼

[@demz30]

I bought my first house (condo) in 2012 because it was undervalue, cost of ownership per month is cheaper than renting... Turned my condo into a rental then bought a second home in 2017.... The 2nd home was an hour away from work but it was brand new house, a lot bigger, a lot nicer, more privacy, and was symbol for what I have achieved at that time (my excuse for buying it)... But I also knew that buying the 2nd house would cause inconvenience, which should push me to keep my hustle and be more motivated... Buying the 2nd house served it’s purpose after owning it for 2years... It pushed me to work harder then after getting tired of working hard, it allowed me seek further knowledge... I learned about personal finance, learned about investing, learned about self development & improvement... And most important, I learned more about myself & what Im capable.... I am now ready to move on... My 2nd home is on the Market for Sale & the condo is on the process of rehab to be for sale... Will be taking out all my equity & capital to further invest in myself and grow my businesses... Me & my wife will be renting a house closer to work, its about a $3500/mo rent which for is a bargain as the house is valued close to a $1M...

[@Aiphares]

yes i'm definitely your competition when im buying real estate in southern Germany. must have been exactly the same property you had in mind of buying right :D Great video Graham, keep it up!

[@jimn6376]

Spot on Sir!, Great observation. Thumbs up!

[@GrahamStephan]

Thanks!!

[@julioarcaiko]

I thought you were a “hater” but honestly I love the fact that these big names are being disputed. It opens up a lot of conversations and makes us smarter as an online community.

[@GrahamStephan]

🙌🏼

[@JORLANDO93]

Really appreciate your outlook! Very true about people knowing what to do but just not doing it! I’m guilty 🙋‍♂️

[@GrahamStephan]

🙌🏼

[@nichoffman2133]

I always make it to the very end. I am here to learn.

[@GrahamStephan]

🙌🏼

[@natem2367]

Currently on a Graham Stephan youtube watching binge. Highly recommend it. Far better than watching another round of the office or the bachelor like the other 99% of the population.

[@GrahamStephan]

Ah thank you!!! 😂

[@omreg123]

was waiting for this!

[@GrahamStephan]

Enjoy!

[@anne-mariecampbell7823]

Very nice response! Thanks for sharing 👍🏻

[@GrahamStephan]

THANK YOU!!

[@ThomasGapinski]

Another great video! When I bought my first home at 24, my mortgage payment was lower than rent for an apartment. It just made sense to me. I like your idea about buying a quadruplex -- living in one unit and renting the other 3. 👍

[@GrahamStephan]

Yes!!

[@jackmichael7342]

Hey Graham, could you do a video going over FHA loans, the pros and cons of trying to buy a house with little down, your experience opinion

[@Petekoko]

Can you do a example video of you doing the numbers on a properties?

[@SierraStrengthTV]

Amazing video Graham keep it up this is truly helping a bay area entrepreneur like myself 🙏

[@GrahamStephan]

Thanks so much!!

[@davidestradaflores]

Thanks for the great content!

[@GrahamStephan]

Thanks for watching!!