I know I’m super biased towards anything real estate related…and I do also invest in stocks, namely Vanguard Index funds….but real estate has always been my priority. These are my top 6 reasons WHY I invest the majority of my time and money in real estate. Forewarning: There’s no “right” or “wrong” investment…some people prefer stocks, some real estate, some “other,” there’s no best or worst here. But this is why I like 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
1. Leverage. This is probably one of the biggest reasons people like investing in real estate - you can borrow the majority of the money to fund your own deal. The interest can also be a tax deduction.
2. You have total control over the investment. Unlike stocks, in Real Estate you control the tenant you pick, the upgrades you do, if you want to add square footage and increase the home’s value. Everything is totally up to you, and it’s about finding the right balance between which upgrades yield the highest returns.
3. Cash flow. This is why I favor Real estate over dividend stocks, for example. The cash flow from real estate can be higher, long term, than from stocks. Additionally, the cash flow from real estate can be depreciated on paper to show a net loss on a tax return, while still making money. This is unlike dividend income which is taxed as ordinary income, unless held in a tax-advantaged account like a Roth / Traditional IRA, 401K, etc.
4. Potentially for the property to increase in value. While I don’t expect this to happen, typically homes increase in value on par with inflation. I do not like speculating real estate markets or riding a wave of appreciation to riches, BUT, if it happens…great. If not, that’s fine because you shouldn’t base your entire investment around a potentially increasing real estate market.
5. Tax write offs. Everything in real estate is a tax write off. You can write off the interest you pay on a mortgage, the expenses, the depcretion of the property, cost segregation analysis…the sky is the limit.
6. It’s not a full time job. You can invest in real estate on the side while keeping your normal day job. While it does require some up front work, once setup, real estate can be fairly passive.
That’s it! I hope you enjoy, I’ll have many more real estate videos to come in the future.
For business inquiries, 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
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
1. Leverage. This is probably one of the biggest reasons people like investing in real estate - you can borrow the majority of the money to fund your own deal. The interest can also be a tax deduction.
2. You have total control over the investment. Unlike stocks, in Real Estate you control the tenant you pick, the upgrades you do, if you want to add square footage and increase the home’s value. Everything is totally up to you, and it’s about finding the right balance between which upgrades yield the highest returns.
3. Cash flow. This is why I favor Real estate over dividend stocks, for example. The cash flow from real estate can be higher, long term, than from stocks. Additionally, the cash flow from real estate can be depreciated on paper to show a net loss on a tax return, while still making money. This is unlike dividend income which is taxed as ordinary income, unless held in a tax-advantaged account like a Roth / Traditional IRA, 401K, etc.
4. Potentially for the property to increase in value. While I don’t expect this to happen, typically homes increase in value on par with inflation. I do not like speculating real estate markets or riding a wave of appreciation to riches, BUT, if it happens…great. If not, that’s fine because you shouldn’t base your entire investment around a potentially increasing real estate market.
5. Tax write offs. Everything in real estate is a tax write off. You can write off the interest you pay on a mortgage, the expenses, the depcretion of the property, cost segregation analysis…the sky is the limit.
6. It’s not a full time job. You can invest in real estate on the side while keeping your normal day job. While it does require some up front work, once setup, real estate can be fairly passive.
That’s it! I hope you enjoy, I’ll have many more real estate videos to come in the future.
For business inquiries, 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
“SunCor Financial MPI review"
Thank you for this! Really helpful!
Mortage cannot be covered with rent income if you but a property in India. Maybe after 8-10 years. Not anytime before that unless you are extremely lucky.
Did he ever make a future video about tax deductions in realestate? I'm buying my first investment property this year and wanted to know how much I'm going to be taxed on my rental income.
It s just me or is he on like 1.05x speed in this one?
Wanna be a real estate investor
Invest everywhere – real estate hedge funds SIPs long term stocks savings bank account fixed deposits mutual funds bonds cryptocurrencies (initial coin offerings) to make a all weather portfolio as Ray Dalio put it, but we have to perform even better than Bridgewater funds
What do you think about owning condos And keeping them as rentals. One of my investor friends thinks that they’re bad investments and I should only invest in single-family homes.
Washington, Adams, and Jefferson? Hmm, what are your thoughts on Lincoln Heights?
The money ain’t made until the day the property is sold
Graham, I wasn't going to write this comment until I heard you say that you could "nerd out" and talk about tax deductions all day long. I've got a question for you. I'm a real estate investor in Michigan and I am using money from my home equity line of credit on my personal residence to finance my real estate investing. Under the new tax code passed since Donald Trump came into office, interest on home equity lines of credit and home equity loans are no longer tax deductible. My accountant, however, has advised me that if I use the proceeds from my home equity line of credit to finance my real estate investing, then in that case, the interest payments will still be tax-deductible despite the language in the new tax code. Do you have an opinion on this?
Hey graham , I'm a big fan of the videos . I live in Santa Barbara and have been told by many California isn't best place to invest right now . I am considering North Carolina however, I would prefer to stay in California . What would you recommend? Thanks !
Hey Graham, what's your opinion on doing sandwich lease options as a way to get some capital to start buying and renting out a properties? Love the videos man, keep it up!
How to you just prove your adding value in specifics. Does this mean you have to have a home adjustor come out and look at the house before and after then notify the bank or something? Can you make it more specific.
Yeah , you're different. In a good way. Ending of the video made me laugh. Sneaky but funny
lol
I’m featuring you on my channel. You’re just too honest to not get noticed. Great job. Crazy that it’s only been a year
Good content as always
Hi Graham, thanks for the great video. May I ask how do we know how much value the house gained after I remodel it?
Let's talk about real estate tax deductions in the new year 🙂 ?
Graham, Love your videos! watch it everyday. I am a real estate agent myself and would like to start investing in real estate. Would you recommend having two different LLCs for real estate sales and investing?
I think it's better to pay off your mortgage as quickly as possible so you have more equity, and can leverage that into buying more properties, or even paying it off and putting the rental income into a SEP IRA. You would have the same write off while actually having more money.
I just found your channel today and have already learned so much from the videos I've watched! I love the real answers you give, rather than "beat around the bush" fluff that most people give out on YouTube. Looking to make the transition from modeling full time to selling / renting luxe real estate in NYC. Congrats on all of your success!
Not everybody has a lot of time to do all that stuff. Not everybody is a real estate agent. I think REIT`s may be a good way to go to passively invest in real estate. What is your opinion??
The potential downside is what happened in 2007 – 2008. Too many mortgage defaults leaving too many homes on the market leaving people flipping houses without buyers for their property and having to pay taxes in the meanwhile.
This is why I prefer REITS no work involved owning them just proper research before buying. They can be held in a tax-free account.
Thank you for post response to my question. More power to you.
When you file taxes do you need to have a business name to claim on the rental properties. I have 2 condos I want to rent out. What do you advise to get maximum tax deductions
But, what about the monthly mortgage payments? That adds to your equity in the property so doesn't your leverage start to decrease as time goes on? Also, how do you get an estimate of how much your property is worth with remodeling?
Would be honored to "nerd out" about tax deductions with you man! Not sure if you made that future video about it yet but if you did I will be watching that next!
Hello Graham! I came across your videos today, and I love you!! Haha. You are informative and humorous. I like that you swear. It impacting, sort of like what Tony Robbins does. Anyway. I bought a single family home here in Minnesota in 2009. I got it for 75,000. It sold to the previous owner for 140,000. I have unfortunately noticed an increase in crime rates and the quality of my once loved neighborhood. I was planning to rent the property, but now I am considering selling. I could potentially make $550 a month in rent. What would you do? Thank you!
Thanks for all of the real estate information. Your passion for real estate and wealth building inspires young entrepreneurs to stick to the basics. It's also cool that you aren't trying to sell anything 😂😂
love your videos mate, glad i found your channel
That little hole for 800k?!?
How did you learn about tax deductions and the such. Would really like to learn how to this.
Would you consider buying 16 apartments at a time?