When it comes to investing in real estate, it’s important to understand what to avoid…with that said, this is what NOT to do…enjoy. Add me on Snapchat/Instagram: GPStephan
Join the private Real Estate Facebook Group:
https://www.facebook.com/groups/therealestatemillionairemastermind/
Get $50 off for a LIMITED TIME with code ThankYou50 - The Real Estate Agent Academy: Learn how to start and grow your career as a Real Estate Agent to a Six-Figure Income, how to best build your network of clients, expand into luxury markets, and the exact steps I’ve used to grow my business from $0 to over $125 million in sales: https://goo.gl/UFpi4c
First: A big mistake is not properly running the numbers. This is why it’s so important that you KNOW how to properly evaluate a property, understand how much it’ll cost to renovate, AND realistically understand what the property will rent for.
Second: Taking on too much debt. Since you took on too much debt, your payments become considerably higher because you have a larger mortgage…and unless you either have the income or savings to carry the mortgage in the event of a vacancy, you can lose money really, really quickly.
Third: Don’t take out a short term loan, or an adjustable rate mortgage. Interest Tates will inevitably GO UP as time goes on…this means that your payments will get dramatically more expense. I recommend getting a long term, fixed rate, 30-year mortgage - this is the safest option out there, with the likelihood of the most profit long term.
Fourth: Picking a bad tenant. Do not necessarily pick the person who offers the highest price, either. Get a tenant who will stay long term, pay on time, no hassle, etc. You’ll make the biggest mistakes when you rush the process. Learn from my mistakes here.
Fifth: Overpaying for the property. When it comes to real estate, your money is VERY MUCH made at the time of purchase… Obviously don’t lose out on the perfect deal for a few grand, but also don’t pay more than what the numbers say it’s worth.
Sixth: Buying and renovating a property without having enough cash saved up as a reserve. Anytime you buy a property, it’s so important that you have enough money to cover ALL the renovations + 30% extra because that’s going over budget, AND enough to sustain the mortgage and all property expenses for at least 3-6 months. KEEP THIS AT ALL TIMES. That way when something comes up, it’s no big deal and I’ve already got all the money to cover it.
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
Join the private Real Estate Facebook Group:
https://www.facebook.com/groups/therealestatemillionairemastermind/
Get $50 off for a LIMITED TIME with code ThankYou50 - The Real Estate Agent Academy: Learn how to start and grow your career as a Real Estate Agent to a Six-Figure Income, how to best build your network of clients, expand into luxury markets, and the exact steps I’ve used to grow my business from $0 to over $125 million in sales: https://goo.gl/UFpi4c
First: A big mistake is not properly running the numbers. This is why it’s so important that you KNOW how to properly evaluate a property, understand how much it’ll cost to renovate, AND realistically understand what the property will rent for.
Second: Taking on too much debt. Since you took on too much debt, your payments become considerably higher because you have a larger mortgage…and unless you either have the income or savings to carry the mortgage in the event of a vacancy, you can lose money really, really quickly.
Third: Don’t take out a short term loan, or an adjustable rate mortgage. Interest Tates will inevitably GO UP as time goes on…this means that your payments will get dramatically more expense. I recommend getting a long term, fixed rate, 30-year mortgage - this is the safest option out there, with the likelihood of the most profit long term.
Fourth: Picking a bad tenant. Do not necessarily pick the person who offers the highest price, either. Get a tenant who will stay long term, pay on time, no hassle, etc. You’ll make the biggest mistakes when you rush the process. Learn from my mistakes here.
Fifth: Overpaying for the property. When it comes to real estate, your money is VERY MUCH made at the time of purchase… Obviously don’t lose out on the perfect deal for a few grand, but also don’t pay more than what the numbers say it’s worth.
Sixth: Buying and renovating a property without having enough cash saved up as a reserve. Anytime you buy a property, it’s so important that you have enough money to cover ALL the renovations + 30% extra because that’s going over budget, AND enough to sustain the mortgage and all property expenses for at least 3-6 months. KEEP THIS AT ALL TIMES. That way when something comes up, it’s no big deal and I’ve already got all the money to cover it.
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
Haven't completed the video, but as you are from CA, it's amazing to see what people pay for rent and how much owners paid for the property and the amount they put in vs. what they resold the property just a few years later. Not saying to '"speculate/gamble", but I've seen some opportunities for new or resale, you jump on it and buy it or kick yourself later for not purchasing it. Excellent video and a very down to earth engagement.
Dont rent to a lawyer/attorney. Say no more
Let’s say u did illegal things to make money and want to change and invest in real estate u have credit and cash but no proof of income is there away around that ?
Me: watched the video
Me: proceed to do it
Great content
That south park clip made me spit out my drink in laughter lmao! And it's gone °_°
FOR THE ALGORITHM
Probably reading about your county's tenant laws will be of good benefit.
Life changing vdo. Thank you Graham ❤️
Whelp the ARM part aged nicely…. 2.75% average
Moral of the story, NEVER trust a lawyer, they have sense of moral or shame. Why you think 95% of politicians are lawyers?
Great content, soo many ads
Is this a bad time to invest? Should I wait for a crash?
👍🏼
Nice car
Step 1: don’t buy houses that are upside down. They’re incredibly difficult to flip.
So you would use the rental income on the property from your tenant to pay off the monthly or yearly mortgage, and you pocket the difference?
You were wrong about lower interest rates😭
The fluttering router genotypically decay because planet recurrently exist worth a goofy bit. crabby, mundane plow
Lesson Learned: Don't rent to an Attorney
Haha Graham, I am long time watching your videos and just now realized that house on the preview is upside down house from my hometown Tartu, Estonia 🇪🇪
hey man, not to freak you out or anything but I think there's a car parked in your living room :/
When I first got interested in your videos, it was when I was trying to learn about and research how stocks work. I didn’t know anyone that was trustable and everyone in every YouTube video that I watched just seemed like they were lying, or trying to catfish you into buying “their new book” on how to make a million dollars every minute with 1 easy free step. After watching your videos for a very long time though, I am happy the “YouTube algorithm” actually worked for once and pointed me in your direction. You seem like a genuine person to be receiving this type of information from, unlike the majority of other people out there who might not know what they are talking about. Keep up the good work Graham 👍
A comment for the YouTube algorithm
Commenting for algorithm
I can’t believe 351 thousand ppl didn’t smash the like button
what kind of car is that? Ferrari?
Lmfao with that Tai Lopez bit 🤣🤣🤣🤣
Interest rates are only going to go up.. until a pandemic sends them to negative rates!!
Just came from your most recent video that was uploaded and wanted to request for a video that covers the "down payment gift" from family that doesn't need to be 20% down on your home. I'd like pros and cons why one should and shouldn't do it etc.
Lol who is from 2020 here with another historically lowest mortgage rates
Comment for the algorithm