These are the exact strategies I used to accumulate $4 million in real estate in just 7 years, and exactly how you can make money renting properties - enjoy! Add me on Instagram: GPStephan
70% OFF: The Real Estate Investing Blueprint:
https://bit.ly/2W5tZZs
GET $100 OFF FOR A LIMITED TIME WITH COUPON CODE: 100OFF
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
Join the private Real Estate Facebook Group:
https://www.facebook.com/groups/therealestatemillionairemastermind/
Step one: Buying a property below what it’s worth.
In real estate, you’ll find properties that sometimes go un-noticed…maybe they’re not properly advertised, maybe the the property is in disrepair, or maybe the seller under-priced it because they NEED to sell it immediately - and that’s where you come in. In real estate, it’s very well possible to find a property worth $100,000 - and buy it for $80,000. To you, that’s an extra $20,000 worth of value for just buying the home in the first place.
Step two: Fix it up to increase profits.
With every property I purchased, I’ve found a way to fix it up to INCREASE the value…real estate investing gives you the full control to fully analyze a deal and determine how much money is to be made, EVEN BEFORE YOU BUY IT. And when doing this, it all comes down to understanding value and how estimating how much it’ll be worth with the renovations you do.
Step three: Leverage your money
Now when it comes to buying something, the good news is that YOU don’t even need to use all of your own money…you borrow most of it from someone else, instead! AND THE INTEREST YOU PAY IS DEDUCTIBLE AGAINST YOUR RENTAL INCOME!
Step four: long term appreciation
Over the long term, your property should go up in value as demand increases…and this means your property is worth MORE than you bought it for. BUT, because your loan amount stays the same - this means you “profit” the difference.
Step five: CASHFLOW
You can invest your money and get paid back profit every single month as your tenant pays you rent. This was also the reason I started investing in real estate in the first place… I just wanted a stable income I didn’t have to actively work for, and I wanted it to be fairly passive…and real estate was perfect for this.
The more money you have invested in real estate, the more cashflow you get, the more cashflow you get, the more real estate you can get, which means the more cashflow you get. It’s quite nice.
Step Six: Depreciation
This is a tax-loss strategy where you can depreciate the cost of the property over 27.5 years against your rental income to show on paper that you’re taking a loss, even though you make money.
This is something that you can’t really do with any other asset out there, and this is why so many large investors prefer to put their money in real estate over just about anything else.
Step Seven: 1031 Exchange
This is when you can sell your property, and then roll that money into ANOTHER property and avoid paying taxes on profit. Another tax-avoidance option is to take advantage of the Home Sale Tax Exclusion. This means that if you live in a home as a PRIMARY residence for at least 2 of the last 5 years, you’re tax exempt from the first $250,000 worth of PROFIT as a single person, or $500,000 if you’re married.
Step Eight: Cash out refinance or HELOC
A HELOC is basically like using your home as a credit card…if you want to use $25,000 to go and buy a model 3 Tesla, you can “borrow” from your house and then pay it back. It’s just like having access to your money, except you’re just shifting it from one asset to another.
Or a cash-out refinance, which is where you literally can take out CASH from your property - completely tax free - and then pay it back in the form of a slightly larger mortgage payment.
And it’s by using these strategies that can help you accumulate $1,000,000 or MORE in real estate with patience, understanding of the markets, and a long term investing outlook!
For business or one-on-one real estate investing/real estate agent consulting inquiries, you can reach me at GrahamStephanBusiness @gmail.com
My ENTIRE Camera and Recording Equipment:
https://www.amazon.com/shop/grahamstephan?listId=2TNWZ7RP1P1EB
70% OFF: The Real Estate Investing Blueprint:
https://bit.ly/2W5tZZs
GET $100 OFF FOR A LIMITED TIME WITH COUPON CODE: 100OFF
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
Join the private Real Estate Facebook Group:
https://www.facebook.com/groups/therealestatemillionairemastermind/
Step one: Buying a property below what it’s worth.
In real estate, you’ll find properties that sometimes go un-noticed…maybe they’re not properly advertised, maybe the the property is in disrepair, or maybe the seller under-priced it because they NEED to sell it immediately - and that’s where you come in. In real estate, it’s very well possible to find a property worth $100,000 - and buy it for $80,000. To you, that’s an extra $20,000 worth of value for just buying the home in the first place.
Step two: Fix it up to increase profits.
With every property I purchased, I’ve found a way to fix it up to INCREASE the value…real estate investing gives you the full control to fully analyze a deal and determine how much money is to be made, EVEN BEFORE YOU BUY IT. And when doing this, it all comes down to understanding value and how estimating how much it’ll be worth with the renovations you do.
Step three: Leverage your money
Now when it comes to buying something, the good news is that YOU don’t even need to use all of your own money…you borrow most of it from someone else, instead! AND THE INTEREST YOU PAY IS DEDUCTIBLE AGAINST YOUR RENTAL INCOME!
Step four: long term appreciation
Over the long term, your property should go up in value as demand increases…and this means your property is worth MORE than you bought it for. BUT, because your loan amount stays the same - this means you “profit” the difference.
Step five: CASHFLOW
You can invest your money and get paid back profit every single month as your tenant pays you rent. This was also the reason I started investing in real estate in the first place… I just wanted a stable income I didn’t have to actively work for, and I wanted it to be fairly passive…and real estate was perfect for this.
The more money you have invested in real estate, the more cashflow you get, the more cashflow you get, the more real estate you can get, which means the more cashflow you get. It’s quite nice.
Step Six: Depreciation
This is a tax-loss strategy where you can depreciate the cost of the property over 27.5 years against your rental income to show on paper that you’re taking a loss, even though you make money.
This is something that you can’t really do with any other asset out there, and this is why so many large investors prefer to put their money in real estate over just about anything else.
Step Seven: 1031 Exchange
This is when you can sell your property, and then roll that money into ANOTHER property and avoid paying taxes on profit. Another tax-avoidance option is to take advantage of the Home Sale Tax Exclusion. This means that if you live in a home as a PRIMARY residence for at least 2 of the last 5 years, you’re tax exempt from the first $250,000 worth of PROFIT as a single person, or $500,000 if you’re married.
Step Eight: Cash out refinance or HELOC
A HELOC is basically like using your home as a credit card…if you want to use $25,000 to go and buy a model 3 Tesla, you can “borrow” from your house and then pay it back. It’s just like having access to your money, except you’re just shifting it from one asset to another.
Or a cash-out refinance, which is where you literally can take out CASH from your property - completely tax free - and then pay it back in the form of a slightly larger mortgage payment.
And it’s by using these strategies that can help you accumulate $1,000,000 or MORE in real estate with patience, understanding of the markets, and a long term investing outlook!
For business or one-on-one real estate investing/real estate agent consulting inquiries, you can reach me at GrahamStephanBusiness @gmail.com
My ENTIRE Camera and Recording Equipment:
https://www.amazon.com/shop/grahamstephan?listId=2TNWZ7RP1P1EB
Graham what would you recommend for a real estate property management team?
Sick let me go do this real quick
What app are you using for searching?
Loved The Vid. Thx 🙂
I got laid off at work cos of the pandemic, didn't really hit hard because i always invested in stocks with help from a broker Lorna Rose Sabbia, she made me my first $780,000 to my portfolio last year…i'm trading this year with my head high.
hey graham! If you could make a video on how to estimate the value of the property (I really have no idea how to tell how much the house should cost) that would be super awesome!!! I have been binge watching your youtube vdos and thanks so much for the great info!!! 😀
Do you use the money from the bank to renovate
Hey Graham.plz read this comment.Could you make a video about best books about real estate investing for beginners?
That would be awesome.
I googled it and there was Lot of books and I dont know where to start.
This is the best video by Graham hands down!
YOU and tapping that button …
Nice
What? 59k for a property?
Hey! I am ok
Very enjoyable to watch stuff like this. Practically a father figure of mine does this exact thing with duplex’s and owns about 15 and about 6 single family homes. I think I’ve remodeled half of them for him. I’m the process of getting my first duplex in 6 months to a year. Just need a little more cash on hand for the Remod and an emergency fund. Keep up the good work graham. Thank you.
Do I need to become a real estate agent to do this?
64 thumbs down are Supreme hoodie owners that just realized they overpaid.
Graham, how do you account for the things/damage that you can't see or account for? leak/clogged pipes? termite damage?
for me the only bad thing in real estate is that you dont really make cash, you building equity, for example you have garaham has 4 million in equity but i bet you dont make $60k+ dollar a year as a profit from rental properties after paying your monthly payment,
and yeah i wish if you make indepth vidoes about real state.
4 mill portfolio in 8 years is honestly not very impressive. you could build 4 mill portfolio in 2-3 years easy.
I hope Graham does another sale on his Real Estate Investing Blueprint at some point.
Would like to know if you’d consider reviewing some of the passive real estate investment opportunities like HomeUnion and other similar online platforms.
I got a question about number 7 (1031 exchange) I don’t expect a reply but if anybody is knowledgeable on this please help a girl out.
You say you don’t have to pay taxes on the difference now is this the difference of the profit (ex you pay 80k for a property sell for 100k profit 20k) or you don’t have to pay the difference between the two property prices (first property is 80k the second is 150k) so you don’t have to pay taxes on the 70k difference.
All in all thank you for this video I am working on my credit already to purchase my first investment property to have tenants and make some cash flow!
You’re a great source of inspiration to me. Keep doing what you do.
inb4 market crash
Good stuff brotha. I'm trying to watch ALL of your videos and in Hope's of gaining small things here and there to help me get my stuff together. Keep up the good work buddy.