These are the 5 Golden Rules of Real Estate Investing that I have lived by, which has helped grow my portfolio from $0 to several million invested in Real Estate since 2011. Enjoy! Add me on Snapchat/Instagram: GPStephan
Learn how to make money as a Real Estate Agent and the steps I’ve used to build my entire career: $50 off with code ThankYou50 for a limited time: https://goo.gl/UFpi4c
Join the private Real Estate Facebook Group:
https://www.facebook.com/groups/therealestatemillionairemastermind/
1. Make money when you buy.
This is absolutely crucial when you invest in real estate - you either need to buy into cash flow, buy into equity, or buy into a combination of the two. Do not do what everyone else does and buy something at market rate for market rent without allowing yourself some room to improve those numbers, and your investment
2. Never fall in love with an investment
This is one I see too many people fall victim to. They go out to look for an investment, then see a home they “fall in love” with, despite it being a terrible money-sucking investment. But hey…maybe it’s just really charming, or reminded them of their childhood house, or whatever…point being, if it’s an investment, it’s a BUSINESS. Not a romantic-comedy. You cannot get emotionally attached to a property you’re investing in.
3. Big picture, laster focus
While the bigger picture is fine to pay attention to, local markets are much more important. Don’t get too caught up in headlines and following trends because real estate is such a micro-economy. Each property and city is its own individual investment opportunity. While they can trail overall economics, every single property is like its own stock - some are undervalued, some are overvalued, some are going up in value, some are going down…the specifics are what make this type of investment really, really unique. Your market will have its own opportunities outside of everything else that’s going on.
4. Think long term - get a fixed rate loan
This is one that I’m a firm believer in. Some people might disagree with this, they might want to take a riskier approach, but my philosophy is simple: buy once and hold. Even though you might be able to get a cheaper loan by going for a 5-10 year Adjustable Rate Mortgage, which means that your interest rate will only be locked in for so many years before it’s adjusted to market rate, it’s much safer to lock in a one-time rate NOW and then hold it. You know your holding cost will at least remain consistent throughout the life of the loan, until you either refinance, pay it off entirely, or sell.
5. Finally, make sure it cash flows.
You should focus primarily on your cash flow - how much money are you investing into the deal and how much will that make you every single month. Do NOT barely operate on a thin margin of cash flow unless you’re making a significant amount of equity and have the cash reserves to pay out of pocket if and when something goes wrong. The biggest problem I see happening is when people cash flow a few hundred dollars on their investment, barely scraping by, and then something comes up and wipes out a years worth of profit…even if they made a ton of money by paying down the loan, they need some type of cash flow for it to really make sense. Focus on cash flow, while still taking everything else into consideration. Cash flow first…everything else second, then evaluate the deal from there.
6. Bonus tip…don’t be your tenants best friend.
I’m a really, really nice landlord…sometimes too nice. When I first started, I really wanted to be buddy-buddy with my tenants and be the “cool” landlord. No. Bad idea. This is often when you get taken advantage of, even if its not even intended…this is when they start calling for personal favors, extended time on rent, or fixing things that aren’t your responsibility to fix. This often puts you in a difficult position between being a friend and being a business person. And once you’ve opened the friendship floodgates, it’s difficult to shift into the mindset that you’re running a business and that this is your investment. My biggest piece of advice is to treat it strictly as a business - be friendly to your tenants, but do not be friends. Stick to the contract and enforce it. It’ll end up saving you in the long run.
For business inquiries or 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

By Stock Chat

where the coffee is hot and so is the chat

22 thoughts on “The 5 golden rules of real estate investing”
  1. Avataaar/Circle Created with python_avatars Thomas Enck says:

    Hit it on the button with the interest rate shooting up!!

  2. Avataaar/Circle Created with python_avatars AJMIT SINGH says:

    Are you from UK?

  3. Avataaar/Circle Created with python_avatars Tajmeel Khodabocus says:

    I have a question… Is it better to buy a land then build a house on….. Or to buy the an already built house?

  4. Avataaar/Circle Created with python_avatars Albs says:

    The younger picture of Graham looks a bit like Justin Bieber. Awesome content btw!

  5. Avataaar/Circle Created with python_avatars Jaycee Jackson says:

    The most fruitful decision of my existence was trading with Mr Charles @Charles_forex09 on Instagram, I wouldn't have a second thought of choosing him over every other trader. I started trading with just $700 and in few days I got a return of $8,500. His diligence and trustworthiness can't be compromised.

  6. Avataaar/Circle Created with python_avatars Panda 2007 says:

    Question:
    What is the best way to go about regarding mortgage loans-
    15 year fixed or 30 yrs ?

  7. Avataaar/Circle Created with python_avatars poo smith says:

    How do you learn about your area of real estate

  8. Avataaar/Circle Created with python_avatars Real Estate Cash flow ideas says:

    50k investment property on my channel !!

  9. Avataaar/Circle Created with python_avatars Mr B says:

    What are thoughts on Turnkey rentals. Smartland? Etc

  10. Avataaar/Circle Created with python_avatars Sirena says:

    What was your ROI on the first 2 rentals?

  11. Avataaar/Circle Created with python_avatars T Batong says:

    How do you run them after you bought them? Do you hire or rent consultants for the costs, taxes and maintance?

  12. Avataaar/Circle Created with python_avatars Alex S says:

    Graham, how do you feel about home warranties?

  13. Avataaar/Circle Created with python_avatars Renee Yeh says:

    What are some good ways to learn about how to estimate/calculate the value of the properties?

  14. Avataaar/Circle Created with python_avatars Benrabah Mohamed says:

    Good speech
    Thanks for valuable information

  15. Avataaar/Circle Created with python_avatars gunjo141 says:

    Regarding the cash flow point, what if there is a $10k-$12k duplex and you can get $250 from each unit. That would be $500/month before costs. Percentage-wise (compared to it's total cost) it sounds great, but in terms of absolute dollars it's not a whole lot (only a "few hundred dollars" as you say). Which matters more? Percentages or absolute dollars?

  16. Avataaar/Circle Created with python_avatars ReCycle Spinning says:

    I think your channel would be better if you gave specific examples of some of the projects you have done , however I realize that might be too much giving away your personal information….

  17. Avataaar/Circle Created with python_avatars ReCycle Spinning says:

    Can you daily drive a Lotus,well snow excluded?

  18. Avataaar/Circle Created with python_avatars Cosmic says:

    Thank you so much for this, Graham! I’ve only been watching your videos for a short period but I’ve learned a tremendous amount from you not only on real estate, but credit, mortgage,etc. Again, thank you! Also what kind of leather jacket is it you’re wearing in this video?

  19. Avataaar/Circle Created with python_avatars Veritech38 says:

    Take it for what it’s worth….

    really?! an exotic car after 5 rentals.

  20. Avataaar/Circle Created with python_avatars Desmond Duece says:

    Very cool man, thank you

  21. Avataaar/Circle Created with python_avatars Titilayo Travels says:

    Graham out here saving lives as usual.

  22. Avataaar/Circle Created with python_avatars Dylan Dean says:

    can't lock in loans that long in Canada :/

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.