Real Estate Investing isn’t for everyone, and it’s important that we all take a realistic look at not only what makes it a good investment, but also why some people may chose to look elsewhere - enjoy! Add me on Snapchat/Instagram: GPStephan
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One of the biggest reasons I think a lot of people get excited about real estate is that they believe there’s a LOT of money to be made with minimal effort. If you’re not prepared to put in a LOT of work upfront, real estate investing isn’t for you. What most people will see happen is that they’ll invest a substantial amount of time and money buying the right deal, and then once they buy that deal, it’s less exciting than they thought. Real estate investing is often something you set up now, where the benefits and payoff comes years later.
Second, you should NOT invest in real estate if you don’t understand how it work. This isn’t limited to just real estate, this is ANYTHING you invest in…stocks, cryptocurrency, businesses, it DOESN’T MATTER. If you don’t fully understand it, don’t invest in it. Largely, the people who lose money in real estate simply don’t understand values, don’t know what they’re doing, over leverage themselves, and become emotional in the event the market goes down…or get too greedy and hold out when they want to sell.
Third, you should NOT invest in real estate if it’s meant to be a short term play. I’ll be the first to admit, this doesn’t apply to everyone in every circumstance…and people could disagree with me and they wouldn’t be wrong. But chances are, if you’re learning about real estate investing, you should NOT invest in real estate for immediate short term profit. The reality is that we don’t know if you will absolutely be profitable within 1-5 years to a point where it makes sense to sell. A lot can happen in the market in the short term, and if you go in with a short term outlook, there are so many variables with could disrupt your plan. Long term holding can overcome a lot of other obstacles along the way.
Fourth, don’t invest in real estate if you don’t have the TIME to devote to it. It’s NOT a passive investment without a substantial amount of work from the very beginning. If you don’t have the time to dedicate to this, either factor in the cost of a property manager or don’t invest. The last thing you need is to plunk down a significant chunk of money on something that you can’t give the attention it needs to make it worth it. This will be a time intensive process to get it streamlined to the point where you won’t need to spend much time on it..
Finally, don’t invest in real estate if you don’t like real estate. I know this doesn’t apply to most of you, but you’d be surprised that some people JUST DON’T LIKE REAL ESTATE. They don’t like tenants, they don’t like dealing with people, they don’t like the responsibility, they don’t want to be be tied down to a location …instead, they’d rather make money from a laptop on the beach without having to deal with anyone. And there’s nothing wrong with that, but it should go without saying - you should only invest in real estate if you actually have an interest in real estate. There are a lot of nuances when it comes to looking at properties, areas, architecture, styles, and trends that if you just aren’t interested in it, you won’t give it the attention it really needs to be profitable. Things will fall through the cracks, they don’t be done as well as they could be, and that means less money in your pocket.
For business inquiries or paid one-on-one real estate investing/real estate agent consulting or coaching, you can reach me at GrahamStephanBusiness @gmail.com
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

By Stock Chat

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25 thoughts on “Why you shouldn’t invest in real estate…”
  1. Avataaar/Circle Created with python_avatars J B says:

    I move around a lot for a pretty demanding (but financially rewarding) career. I don’t think I could put in the effort necessary to do it profitably.

  2. Avataaar/Circle Created with python_avatars adam boyd says:

    Gram is the only person who makes videos that randomly halfway through make me think to like. Which is weird because I really never even use that feature of YouTube what is the creator asks or not but these are worth. Its like a pocket account…for free

  3. Avataaar/Circle Created with python_avatars humdrum says:

    It's a lot of work, but its a more rewarding and energizing kind of work than punching a clock at someone else business.

  4. Avataaar/Circle Created with python_avatars Engku Hafiz 1 says:

    In malaysia. Real estate investment is a thing of the past. Price is now ridiculous. Those bought in 2010 is okay. But for those plan to buy now. I am so sorry…

  5. Avataaar/Circle Created with python_avatars chaff5 says:

    My microwave has that same problem. Weird.

  6. Avataaar/Circle Created with python_avatars Diana Sampedro says:

    Great video

  7. Avataaar/Circle Created with python_avatars Dorcas Bill says:

    Trading as a beginner was very difficult due to lack on trading experience, this resulted in losing my funds though I've been able to recover all that I lost, all thanks to Mr Charles_forex09 on Instagram , i never knew good trader still existed till I come in touch with him__.

  8. Avataaar/Circle Created with python_avatars puertorican v1nce cuh says:

    I’m a truck driver. Safe to say it’s hard for me to get some time to fully commit to it. Still, I’d like to try it out.

  9. Avataaar/Circle Created with python_avatars K W says:

    This video sucks. It didn't answer the #1 question everybody has before they buy a property.

  10. Avataaar/Circle Created with python_avatars Tristan N says:

    Do you usually include the water bill in the rent or do you charge it separate?

  11. Avataaar/Circle Created with python_avatars D Neuman says:

    If this vlog helped you or this the type of content your looking for please press the like button it helps me to know and I can make more vlogs.

  12. Avataaar/Circle Created with python_avatars Jim Salmon says:

    I bought a house 2.5 years ago, and I smashed the like button just now.

  13. Avataaar/Circle Created with python_avatars Mefirst Andthegimmiegimmies says:

    Every time I look at any kind of investment video there is always the same generic conversation of “I invested with so and so and they made some ridiculous return for me and someone I know” then the generic string continues with how did you find this person and they link some generic email. I swear the scams are running out of control.

  14. Avataaar/Circle Created with python_avatars Greg Thatcher says:

    Isn't there a point at which holding real estate long-term actually starts costing you money? Even if you get a great deal initially, at some point holding the property just doesn't make sense because real estate depreciates over time. Especially, when you factor inflation, repairs, and a cost-benefit analysis against lower-risk stock market returns.

  15. Avataaar/Circle Created with python_avatars ThePrivateguess says:

    @graham stephan can you please discuss the types of mortgages

  16. Avataaar/Circle Created with python_avatars Leo says:

    … if you pick a guy that grows weed in the garage 😀

  17. Avataaar/Circle Created with python_avatars Crappy Tour Guide says:

    Thanks for this awesome video! Helped answer a lot of questions

  18. Avataaar/Circle Created with python_avatars Silly Dilly says:

    I am almost 56 years old and just thought about investing in real estate.
    I have the money now to start..
    But it's too late😔
    Thank you for your honesty..
    No one ever talks about this..

  19. Avataaar/Circle Created with python_avatars SrSheepdog says:

    Engagement comment for the algorithm!!

  20. Avataaar/Circle Created with python_avatars ester wacasey says:

    Love this! I’m super excited to get my first property!

  21. Avataaar/Circle Created with python_avatars DeMac says:

    This is why I throw my cash in fundrise.

  22. Avataaar/Circle Created with python_avatars This_Is_Japes says:

    but then how am I gonna end up leading the lifestyle I want to lead. i know investing is not gonna get me there till i'm too old to care. and everything else that could get me there is practically a pipe dream.

  23. Avataaar/Circle Created with python_avatars MMO Archives says:

    one reason, taxes taxes taxes, property taxes is the highest it has ever been in 40 years

  24. Avataaar/Circle Created with python_avatars Sonny Zhang says:

    i am engaging

  25. Avataaar/Circle Created with python_avatars james vanya says:

    Love your channel

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