Here’s EXACTLY how I invest in real estate, as well as every detail about what I look for when picking the right rental property - enjoy! Add me on Instagram: GPStephan
The YouTube Creator Academy:
Learn EXACTLY how to get your first 1000 subscribers on YouTube, rank videos on the front page of searches, grow your following, and turn that into another income source: https://bit.ly/2STxofv $100 OFF WITH CODE 100OFF
The Graham Stephan Show Channel: https://www.youtube.com/channel/UCa-ckhlKL98F8YXKQ-BALiw/
Merch: http://www.GrahamStephanStore.com/
My ENTIRE Camera and Recording Equipment:
https://www.amazon.com/shop/grahamstephan?listId=2TNWZ7RP1P1EB
I practice the “buy and hold” investing strategy. I do not ever flip real estate, I never wholesale real estate, I never invest for the short term. So given that my intention is SPECIFICALLY as a buy and hold investor, what I do is known as the BRRRR method:
Buy, Renovate, Rent, Refinance, Repeat.
Buy:
I buy properties in high demand, up-and-coming areas. I also always look at properties JUST below the average price for the area
My specialty, if I have a specialty, is 2-4 unit buildings. Those are my favorite. WITHIN those 2-4 units, I always try to find a building where each unit is around 2-3 bedrooms, and 2 bathrooms. This is the sweet spot for rentals.
I also try to find places that need MINOR cosmetic renovation. This means that the structure and internals of the house are fine…but it just looks old and dated. To me, this really gives you the best bang for the buck in terms of ROI and adding value to the property.
What makes my strategy a little more unique is that I move in to one of the units, then rent out the others.
The other rented units should cover all of your expenses, and then you live there FOR FREE. The reason I do this is because it allows me to buy a 2-4 unit property under owner-occupied financing, meaning I get a lower interest rate, less money down, and much better loan terms on the building.
So anyway, lets then talk briefly about the next part of my strategy: Buying under market value.
There’s a saying in real estate that goes something like this: you make your money when you buy, not when you sell. This is EXTREMELY TRUE. Buying something under market value like this really just takes patience…good deals don’t come up every day, you’re going to miss out on so many of them until you finally get the right one.
In terms of renovating…I leave it all up to a contractor.
I don’t ever touch a hammer, or attempt to do any of the work myself. I just don’t know how to do any of that. So instead, I’ll find a contractor through either word of mouth, or finding someone highly rated on YELP.
And NOW…You rent it out!
Like I mentioned, the rents should ideally cover all of your expenses.
How to rent a property: https://youtu.be/hS8lIrzEwv0/
How to calculate cashflow: https://youtu.be/DgWcrsavcJs/
Now, after about 6-12 months or so - depending on your bank - you can do what’s called a refinance.
Given that you bought the property under market value, and you hopefully fixed it up to increase the value even further, you’re hopefully sitting on a good amount of equity in the property. If the numbers make sense, and interest rates are low enough like they are right now, you can do what’s called a “cash out refinance” on a property.
And then, obviously, the last step is just - REPEAT THIS PROCESS AGAIN.
If the market goes up as you’re doing this, amazing - that means your properties are going up in value, too.
If the market goes DOWN as you’re doing this, amazing - now you get to buy cheaper properties in the future.
For business or one-on-one real estate investing/real estate agent consulting inquiries, you can reach me at GrahamStephanBusiness @gmail.com
The YouTube Creator Academy:
Learn EXACTLY how to get your first 1000 subscribers on YouTube, rank videos on the front page of searches, grow your following, and turn that into another income source: https://bit.ly/2STxofv $100 OFF WITH CODE 100OFF
The Graham Stephan Show Channel: https://www.youtube.com/channel/UCa-ckhlKL98F8YXKQ-BALiw/
Merch: http://www.GrahamStephanStore.com/
My ENTIRE Camera and Recording Equipment:
https://www.amazon.com/shop/grahamstephan?listId=2TNWZ7RP1P1EB
I practice the “buy and hold” investing strategy. I do not ever flip real estate, I never wholesale real estate, I never invest for the short term. So given that my intention is SPECIFICALLY as a buy and hold investor, what I do is known as the BRRRR method:
Buy, Renovate, Rent, Refinance, Repeat.
Buy:
I buy properties in high demand, up-and-coming areas. I also always look at properties JUST below the average price for the area
My specialty, if I have a specialty, is 2-4 unit buildings. Those are my favorite. WITHIN those 2-4 units, I always try to find a building where each unit is around 2-3 bedrooms, and 2 bathrooms. This is the sweet spot for rentals.
I also try to find places that need MINOR cosmetic renovation. This means that the structure and internals of the house are fine…but it just looks old and dated. To me, this really gives you the best bang for the buck in terms of ROI and adding value to the property.
What makes my strategy a little more unique is that I move in to one of the units, then rent out the others.
The other rented units should cover all of your expenses, and then you live there FOR FREE. The reason I do this is because it allows me to buy a 2-4 unit property under owner-occupied financing, meaning I get a lower interest rate, less money down, and much better loan terms on the building.
So anyway, lets then talk briefly about the next part of my strategy: Buying under market value.
There’s a saying in real estate that goes something like this: you make your money when you buy, not when you sell. This is EXTREMELY TRUE. Buying something under market value like this really just takes patience…good deals don’t come up every day, you’re going to miss out on so many of them until you finally get the right one.
In terms of renovating…I leave it all up to a contractor.
I don’t ever touch a hammer, or attempt to do any of the work myself. I just don’t know how to do any of that. So instead, I’ll find a contractor through either word of mouth, or finding someone highly rated on YELP.
And NOW…You rent it out!
Like I mentioned, the rents should ideally cover all of your expenses.
How to rent a property: https://youtu.be/hS8lIrzEwv0/
How to calculate cashflow: https://youtu.be/DgWcrsavcJs/
Now, after about 6-12 months or so - depending on your bank - you can do what’s called a refinance.
Given that you bought the property under market value, and you hopefully fixed it up to increase the value even further, you’re hopefully sitting on a good amount of equity in the property. If the numbers make sense, and interest rates are low enough like they are right now, you can do what’s called a “cash out refinance” on a property.
And then, obviously, the last step is just - REPEAT THIS PROCESS AGAIN.
If the market goes up as you’re doing this, amazing - that means your properties are going up in value, too.
If the market goes DOWN as you’re doing this, amazing - now you get to buy cheaper properties in the future.
For business or one-on-one real estate investing/real estate agent consulting inquiries, you can reach me at GrahamStephanBusiness @gmail.com
graham, you look like someone that helps people. can you help me when i turn 18 by offering me a loan of 5000 dollars that I can use to become successful.
Thought I had a question for you but instead, I read every single comment that you have responded to and found all the answers I needed! Thanks a lot Grahamster 😂
@graham are you able to make an updated version of this.
Graham is the Goat
How do you deal with a downpayment? If it's %15 then it could be 60k
It is nice how you can get other people to pay your mortgage and take the money out immediately tax free to find another spot for your financial tumor. How does it feel to not contribute anything to society other than a middleman cut. It must be nice not caring at all about inflating the values of homes in your country and contributing to the collapse of the future of our society all so you can cash it out. Gotta make that profit off of your leverage. I hope the bubble pops and your overleveraged leech a** gets bled dry. Maybe then you can contribute your capital to business investments, or idk any other profitable venture you could live well on without cashing out the entire next generations hope. (Those in the bottom 90% of course)
Your credit card tips are great though!They were really helpful so nothing wrong with your YouTube career, keep it up!
Dude is doing gods work by providing the rest of us with a gold mine of info. Hit that Like!
Great Video. ty
Did you read this comment?
Hey
But I believe having someone who can provide you with quality entry and exit points in the trades markets , hence profits making….It’s been nine months of unvarying profits working with pros…
Like and comment for you
Do you have a course? I want to learn more
Hi Graham
I am inspired by your free knowledge and sharing of real estate information. I am a female african , aged 52 with two properties which I think I have invested foolishly. One in the Dominican Republic and the other in Accra Ghana . I have not profitted any money on the two properties so I have decided to sell the one in santo domimgo Dominican Republic for 270,000usd, an ocean view spartme. I am currently in Nairobi Kenya where I am working and renting, with rent and expenses for about 2500usd. I need your advice please
Grows plants in the garage 😅
Graham pls do a BRRR method update!
what are your thoughts on investing in south central LA/east LA?
u r gay
Get three bids, place them against each other, but expect 25% price increase and build time twice as long. Your content is great but that makes no sense. Maybe if you paid a fair value price you would save money by not having to wait twice as long for the finish project.
How can you check how much a property was sold for? I think only real estate agents have access to that…
Thank you Graham👌
I just wanna wake up and find out I won the lottery and never have to work again (ofc though I won’t waste it like literally almost everyone does)
Great video graham .How do l know the condition of the comps ,do l find out mayself or agents can give me the info? Thanks
Is the money taken out during a cash-out refi taxed?
"retire in Hawaii" Aloha from Big Island! see you down here when you retire!
Don’t let anyone deceive you Leopinhack on telegram is the only legit vendor that sells cc and dumps I got one from him
Someoneposted this guy Leopinhack on telegram yesterday and I tried him he is real💯
So do I need a real estate license to do all this ?
Can you do a video comparing real estate strategies? Apologies if you already have. Thanks!
how do i buy the house if i only have 300 dollars
Watching in 2020 Graham! Loved this video.. & smashed the like button 👍
What is a refinance? Is it leveraging your properties to get money to buy your next property?
Have you ever invested in mobile homes?
House hacking time
Hey there, your two video links: How to rent and how to calculate cash flow don't seem to be working. It takes me to a page that says server error.
Just wanted to give you a heads up! Wanted to check the videos out too, thank you for the great content! 🙏