For Those Who Are In A Rush: 1.) Not knowing the numbers 2.) Too much debt (Borrowing too much money) 3.) Short term loan/arm 4.) Picking a bad tenant 5.) Overpaying for a property 6.) Not having reserves You're Welcome! :)
0:51 LOL. To me, this is complaining! I hate it when things are more expensive that I can't justify investing on it. I still push through it hoping that I'm wrong and make money, then end up losing.
I just bought my first rental property at 20 years old, I have been on the hunt and preparation for a long time and your videos really helped me throughout the process to not make any stupid mistakes like you mentioned, keep up the great videos because you definitely have a long time viewer now
Wish you were around 6 years ago when I bought my 1st rental. I had no knowledge no help I struggled for the 3 years. But I learned from my mistakes so it's all good now. Still learning thank you for all your content.
Tonythetiger86 Have clauses in the contract based off the price you would pro-rate your rental. Every day it’s late = x amount of dollars. Wal-mart does this with every new construction & charges the GC $50,000 for every single day the project is late.
@@baileymaloney1961 when contractors promise things it is often based off of how long it takes if nothing goes wrong, when dealing with houses, even worse old houses, its almost impossible to tell what's going to go wrong. good luck getting any good contractor to sign that on a house that needs a lot of work.
When living abroad, I always used a very inconvenient exchange rate to calculate my budget. Ended coming back with about 17% of my initial savings, which was quite a lot
Ive had couple of bad tenants. My method was to annoy them back: Give them notice of rent hike, as per legal agreement. Do in-house inspection, thoroughly. Every month. Give them eviction notice, even if, the rent is late by 2 days. After the rent is paid the notice is invalid so i tell them they don't worry about this notice cause they will pay in 2 days anyways. 🙂 (These multiple eviction notices are your evidence that the tenant was giving you issues). Replace any necessary item with most oldest used item i can find on craigslist, so it fulfills the legal requirement but they won't like it. Take LOTS of pictures of any scratch i find new. After they ran away i renovated the place and sold it. Still made profit. Just my 2 cents. 👍
I'm 21 and looking into buying the home across the street from my parents. Not even on the market yet and below markey value. Definitely a fixer upper, but the idea is I live there for a year or two and fix it up, then rent it out to pay my mortgage and make alittle profit each month. Love your videos.
Video Idea: How to determine how much a property you are planning on buying will cost you to renovate. What to look for….how to research cost. That sort of thing. How long it takes to evaluate the cost of renovation and when do you decide to try to figure that out before you buy the property.
Hey Graham, I would love to see a video on renting out rooms in a house while living in the house? What are the pros and cons, and is it true that one big benefit is no laws protect them and you can kick them out next day if you really wanted too, without anything protecting the tenant. What is your perspective on this or how familiar are you on this field?
No, you cannot simply kick them out. You still have to go through an eviction process. Check your local state laws for specifics. I have done this and know someone who does. Works well as long as you don't mind strangers as roomates😊.
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.
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 TH-cam 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 “TH-cam 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 👍
Ask for bank statements for proof of rent. Walk the area and note other "for rent" signs, call n ask about rent. Note the condition of building vs. your building.
So we have been landlords for years. In multiple states. We don't buy homes that are in need of renovation, unless it is a house we are actually going to live in while we renovate over a few years. Instead of using listing agents (Real Estate Agents) we have a property manager who handles ALL the issues that pop up. Our management company charges us 7% per month and 1/2 the first months rent per year. However for that we also have full access to their attorney for evictions and other related issues. We have home warranties on our properties that saves us on repairs of all kinds. We are very selective of WHERE we buy. Properties on the wrong side of the tracks may look great because they are cheap but you're not going to get the quality tenants you need.
I tried posting this yesterday, but TH-cam never sent out notifications for some reason and it never appeared on the sub feed. So I had to re-post. Figured I'd test out what a Saturday morning does!
I was looking for his video yesterday and never found it, then went to Stradman’s channel and who do I see there??? Mr. Stephan!! I think he lost track of time watching TH-cam videos lol
9:57 Two years to evict! The property owner must have gone through hell on a daily basis! I don't think I would ever learn to trust anybody after that 🚫 I'm so sorry to hear about your peer having experienced this!
My tenant screening criteria: 1. Must have at least 750 credit score 2. Must have no eviction record in the past 3. Must have a stable job and not a job hopper 4. Must call up to 3 past landlords for reference 5. Must have no criminal record
Another comment: when it comes to properties, first of all a house is usually a place for a few people or family to live in or even a single person. It is not supposed to be a money making business. But now that housing is becoming a money making business, if you want to make money off a home, first of all check the house to make sure that it is in good condition before signing out a mortgage loan on it. Otherwise, those repairs are going to cost a lot. When it comes to tenants, the credit score is unreliable. You need to make sure that they are not faking it when they meet you especially if you want to rent out a home and make sure that you won't run into issues on it.
Hello Graham, do you recommend saving up for all these setbacks first before putting money aside for investing? Thanks For example, should the correct order be: 1) emergency fund; 2) save up a reserve for some of these mistakes; 3) money for a down payment on a house; 4) then investing in other areas, like funds edit: liked the video, smashed the button
You’ve made a lot of valid points that me, myself has made. I find that my HELOC is very helpful. But, I have a couple free and clear properties so makes it easy. Good advice. Thanks
It's more so a miscalculation of price than it being the wrong property. At a certain price, everything becomes a good deal. It's about understanding values and offering a price where there's enough upside to make money.
I love the pics of Tai as you spoke about renting tenants😂 Love the advise he gives and can definitely understand the “marketing strategy” behind having such an expensive house, cars and of course book shelves in the garage but most people don’t know that he actually rents that property (which obviously you have figured out). Awesome video, great to learn not only how to do something but how not so you have a broad idea of different possible scenarios both good and bad.
Thanks so much! And i totally agree with Tai Lopez's marketing strategy...it's honestly about as effective as it gets, and it's all done strategically. For results, everything he has works wonders!
Whoa. I just realized that you can get a fixed rate over 30 years. In Canada, the longest fixed term I've ever seen is 10, and the rate is usually really high.
I had a 5/5 ARM on a property @ 3% because the credit union paid the closing costs. Then when 5 years came and the rate was going to adjust higher I paid off the loan from the sale of another house that was a poor rental. If you have enough money to pay cash for the property an ARM can be useful. For most people I would recommend not having more than one rental at a time to prevent over-leveraging.
Thanks for your time in creating this particular video to help investors like me to experience the worst without actually being a victim of such incidents.
My experience has been that you should never rent to attorneys. My property manager rented an apartment to a young attorney, and when he refused to pay rent (because of a non functional light switch in a downstairs hallway........fixed in 24 hours, but that didn't stop him from filing a legal paper! It took months to evict him. All the time, he would make subtle lawsuit threats to the property manager, myself, and even tenants. I finally gave him $2500 to leave, but it was worth it. Be really careful whom you choose as tenants.....really, Graham is right.
Someone told me right now wouldnt be a good time to buy a property and the best time will be around march next year because interest rates are going up. Is this true?
Wrong wrong wrong... your future off spring will thank you. Buy that chit and invest in your great great great great great great great great great great grandkids future. Way not to care about the kids... un subin🤬
I haven't used hulu in a week cause this show. You're very real about money. I love it. Always smash the like button. I've been a stock investor since I turned 18. Now 21. My sisters keeps talking about real estate wholesaling and idk what wholesaling real estate exactly is or how to do it. Is it even worth it.
I've heard a variable interest rate is better because you will get a lower interest rate at the beginning when you owe a lot of money on the property, so you pay less in interest. The rate will increase over time, but the amount owed on the property will decrease, so less will be paid on interest. It depends on the market, but generally variable interest rates can be good if you think the interest rates will stay roughly the same over time.
If I want to open a Roth IRA should I contribute checks I get from my job or from my self employment ? What looks better and brings back more or is it the same?
My family can live without a yard for a few years if we are getting paid to live in our house. Get a fourplex, rent out the other three units and live in the fourth one.
Time 10:20 is so true I lost with to tenants the 1st I did not do research and had empathy to the Lady who wanted to rent, and she started selling beer and had a Hore house took me 4 months to get them out and destroyed my property, then the next year I did do research, but when I wanted to live in my own property I had to pay him out all the rent he gave and got greedy and wanted triple amount but rent control gave him a limit of 15,900. Dls even thou they knew he was taking advantage. What a double nightmare
I turned down 3 tenant applications because only one spouse was either working or both spouses were working part time or just started new jobs... better no tenants than “bad” tenants
Could you elaborate or link what you mean by the tenant offering rent? I live in Oklahoma and everywhere I’ve lived and all of my family’s rentals have a set rent. How would you go about asking for $X of rent OBO.
Graham, 2 questions. 1) Can you (if you have not already) go over your style for running pre buy numbers? 2) Can you tell us how you do background checks/screenings on new tenants. Once again, if you have not already, you have a lot of good videos, and I might not have found the answers in the ones I watched so far.
been through the bad tenant one. section 8 bum who took 6 months to leave cost about 4k in lawyer fees and we ended up spending all the money we got for him in rent. will never rent out to section 8 again. good vid btw
would it be a good idea to negotiate a lower rent in exchange for good behavior? meaning that if they don’t become a nuisance that first year they get a discount onwards.
_ Too many variables to know who's good or not. Even a stellar tenant, with years of early payments under his belt, could stop paying, and refuse to leave. _
My first building I gave half rent off for Christmas for paying on time, Now I just take off 100 bucks .. Note, this does not change there behavior...lol
_ Re: @@Postofficejoe's failed efforts. Technology&Globalization are displacing workers, causing homelessness. In Seattle, I feel the charity from Bill Gates and Jeff Bezos trying to ease this (ShortTerm) problem. _
I got an ARM on my first investment property. They can be good options because they offer lower interest rates and as long as you refi with in the set period you are all good.
Important advise video at this point where once again the lenders are going all out in lending and borrowers are borrowing so much. Too much debt with every bubble exceeding $trillion in size. The home loan bubble has reached $15 trillion, the car loan bubble is over $1trillion, the credit card bubble is over $1trillion, and the student loan bubble is reaching $2trillion, and the national debt is on its way from $22 trillion to $23 trillion. This is a lot of money in loans. I want lenders to become cautious with lending at this point by charging money upfront like at least a 10% down payment before being able to borrow and have high interest rate for new loans and low interest rate for old loans to make it easier for current borrowers to pay off debt but be prevented from borrowing more money.
Had the same issue, bought a house cash..posted to rent, got slammed with calls (over 72 in 3 days) and like a dork i rented it to a couple paying 6 months ahead just to get it. Called some of the references etc and basically should've done a better job to filter out the tenant. Cost me months of rent and damages done to the property. Lesson learned!!!
Frenchy Alicea I have 7 rentals. It took me a while to get them under control but now my rule is this. No Drama, if there is a big sob story or drama why they left the last one one, forget them! Go for good credit, good income, and nothing bad in background check and don’t waiver. It is better empty than renting to a bad renter. Only took me 10 years to learn this lol.
As a real estate broker and a property manager with MySmartLease.com this is some of the most sound advice I have ever heard from a TH-cam video regarding investment properties!
Should do a video on how you avoid bad tenates. Like what you do on the lease side. Not everyone can give a lawyer 10k to look over papers or draft something. Most rely on free to low-cost legal websites.
Im in the UK and these same rules apply.... I bought my first buy to let in 2014. People have told me to re-finance and just keep going and going. Im more conservative I plan to own at least 5 outright and the rest can be debt, currently have 14 properties and 5 mortgaged. One is a big one which I need to re-fi to pay a loan back to my dad (its a big loan). But yea total loan to value should still be under 50%.... people get carried away by buying more and more and more with massive debt and then when the rates change they have no headroom. Good vid.
Great video Graham thanks. Luckily for me I work for a big rental property company in Canada named Boardwalk. I have experienced bad tenants, evictions and all that fun stuff. You are right by saying it's worth more to take less money and have a good tenants then rent it out for more and have a bad tenant. As far as the reno costs, thankfully I have the knowledge, skills set, and tools to do everything myself. Se we are able to save by doing all that our self.
0:51 LOL. To me, this is complaining! I hate it when things are more expensive that I can't justify investing on it. I still push through it hoping that I'm wrong then end up losing.
a good tenant is worth their weight in gold. Pays every month? No damage, no drama? I never raise their rent for being good to me. I raise rent for the next tenant. And if something in the unit squeaks, it gets greased by day's end (light bulb, toilet valve, whatever). Otherwise, as you mention, you waste a month or two of mortgage waiting on a new tenant. And since I'm not a realtor, I then have to pay one a recruitment and background/credit check fee to get me a new tenant. And knock on wood I've never had to evict one. That must be a nightmare.
I love your videos they’re so informative I’m taking note of all of it I plan to become what you have but instead of retiring I plan to just look for more outlets to become as productive as possible with the money that I gain from these endeavors keep up the good work
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 🇪🇪
Real estate investment losing money is music to my ears. They are a major reason why the real estate market is the way that it is now.
To achieve greatness, you need to start working with a Financial Adviser Investing remains the smartest way to prepare for the future.
how do I get in touch with the adviser i really need a help.
For Those Who Are In A Rush:
1.) Not knowing the numbers
2.) Too much debt (Borrowing too much money)
3.) Short term loan/arm
4.) Picking a bad tenant
5.) Overpaying for a property
6.) Not having reserves
You're Welcome! :)
Thanks!
7) Subscribe to PewDiePie
@@GrahamStephan 😈make a deal with a devil 😈 😂✌
0:51 LOL. To me, this is complaining! I hate it when things are more expensive that I can't justify investing on it. I still push through it hoping that I'm wrong and make money, then end up losing.
Description tho
I have 23 years of real estate experience as a landlord and contractor and I approve of this video!
THANKS!!
O ya? What state are you in, want to build me a house? How much per sq foot?)
@@jajupa78 ohio, single family homes about $175 a foot now
@@marksoberay2318 help
@@da14a49 what do u need help with?
I bought a home in San Francisco when I was 27 for 475k now it’s worth 1.8m! Location is everything
That’s amazing!!
Awesome brother
How long ago was that?
@Rodimus Prime na just likely 10 yrs ago when housing crash.
Nice
I just bought my first rental property at 20 years old, I have been on the hunt and preparation for a long time and your videos really helped me throughout the process to not make any stupid mistakes like you mentioned, keep up the great videos because you definitely have a long time viewer now
Ah thanks man!!! Congrats on your first rental that’s awesome!
Any updates? Love to know how its going now
Broken.Bimmer lol same
Looking back on this, the whole "interest rates will never be this low" thing didn't age so well...
Wish you were around 6 years ago when I bought my 1st rental. I had no knowledge no help I struggled for the 3 years. But I learned from my mistakes so it's all good now. Still learning thank you for all your content.
Thanks so much for watching! Yeah, the first one is ALWAYS a learning experience, no matter how much you prepare.
As it is said, experience is the best teacher
Make a video about LLC’s in real estate
I might mention this in a future video, we'll see
@@GrahamStephan I would like to see that
Multiple people would like to see that. Pros/cons
Do it please. I'm ready.,. Thanks😀
do this please!!!!
Love Graham’s videos. Detailed but concise and he takes the time to write out the summary in the description!! It really helps!!
Thank you so much!
Forgot to mention remodeling takes 25% longer than contractors promised.
YES!! Very very true.
Yep
True statement!
Tonythetiger86 Have clauses in the contract based off the price you would pro-rate your rental. Every day it’s late = x amount of dollars. Wal-mart does this with every new construction & charges the GC $50,000 for every single day the project is late.
@@baileymaloney1961 when contractors promise things it is often based off of how long it takes if nothing goes wrong, when dealing with houses, even worse old houses, its almost impossible to tell what's going to go wrong. good luck getting any good contractor to sign that on a house that needs a lot of work.
when i do spread sheet i add 10% of expense just for the sake of add it for no reason lol! while I already over estimate the cost of everything.
When living abroad, I always used a very inconvenient exchange rate to calculate my budget. Ended coming back with about 17% of my initial savings, which was quite a lot
Ive had couple of bad tenants. My method was to annoy them back:
Give them notice of rent hike, as per legal agreement.
Do in-house inspection, thoroughly. Every month.
Give them eviction notice, even if, the rent is late by 2 days. After the rent is paid the notice is invalid so i tell them they don't worry about this notice cause they will pay in 2 days anyways. 🙂
(These multiple eviction notices are your evidence that the tenant was giving you issues).
Replace any necessary item with most oldest used item i can find on craigslist, so it fulfills the legal requirement but they won't like it.
Take LOTS of pictures of any scratch i find new.
After they ran away i renovated the place and sold it. Still made profit.
Just my 2 cents. 👍
Real American hero. Depending on the state real estate investing can be a legal nightmare.
Great video Graham!!!
Hey thanks so much man, hope all is well!
I'm 21 and looking into buying the home across the street from my parents. Not even on the market yet and below markey value. Definitely a fixer upper, but the idea is I live there for a year or two and fix it up, then rent it out to pay my mortgage and make alittle profit each month. Love your videos.
Video Idea: How to determine how much a property you are planning on buying will cost you to renovate. What to look for….how to research cost. That sort of thing. How long it takes to evaluate the cost of renovation and when do you decide to try to figure that out before you buy the property.
Hey Graham, I would love to see a video on renting out rooms in a house while living in the house? What are the pros and cons, and is it true that one big benefit is no laws protect them and you can kick them out next day if you really wanted too, without anything protecting the tenant. What is your perspective on this or how familiar are you on this field?
No, you cannot simply kick them out. You still have to go through an eviction process. Check your local state laws for specifics. I have done this and know someone who does. Works well as long as you don't mind strangers as roomates😊.
lol the Tia Lopez part was awesome!
haha thanks!
Damn, well that 15 minutes went by fast. Good stuff.
Thanks so much!!
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.
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 TH-cam 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 “TH-cam 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 👍
Graham, what is the best way to calculate projected rental income for a potential property? Thank you. Love your videos on all the topics you cover.
Did he ever make a video on this
They way you put all this info makes me feel like i can actually do some realstate investment
Ask for bank statements for proof of rent.
Walk the area and note other "for rent" signs, call n ask about rent. Note the condition of building vs. your building.
So we have been landlords for years. In multiple states. We don't buy homes that are in need of renovation, unless it is a house we are actually going to live in while we renovate over a few years. Instead of using listing agents (Real Estate Agents) we have a property manager who handles ALL the issues that pop up. Our management company charges us 7% per month and 1/2 the first months rent per year. However for that we also have full access to their attorney for evictions and other related issues. We have home warranties on our properties that saves us on repairs of all kinds. We are very selective of WHERE we buy. Properties on the wrong side of the tracks may look great because they are cheap but you're not going to get the quality tenants you need.
Upload on a Saturday?? Was not expecting this but I’m happy I got the notification! Cheers
I tried posting this yesterday, but TH-cam never sent out notifications for some reason and it never appeared on the sub feed. So I had to re-post. Figured I'd test out what a Saturday morning does!
@@GrahamStephan I was waiting for my Friday night notification, glad its up now.
I was looking for his video yesterday and never found it, then went to Stradman’s channel and who do I see there??? Mr. Stephan!! I think he lost track of time watching TH-cam videos lol
9:57 Two years to evict! The property owner must have gone through hell on a daily basis! I don't think I would ever learn to trust anybody after that 🚫 I'm so sorry to hear about your peer having experienced this!
Yeah it was a pretty crazy situation!
My tenant screening criteria:
1. Must have at least 750 credit score
2. Must have no eviction record in the past
3. Must have a stable job and not a job hopper
4. Must call up to 3 past landlords for reference
5. Must have no criminal record
🙌🏼
Just wanted to add: no bounced checks.
Another comment: when it comes to properties, first of all a house is usually a place for a few people or family to live in or even a single person. It is not supposed to be a money making business. But now that housing is becoming a money making business, if you want to make money off a home, first of all check the house to make sure that it is in good condition before signing out a mortgage loan on it. Otherwise, those repairs are going to cost a lot. When it comes to tenants, the credit score is unreliable. You need to make sure that they are not faking it when they meet you especially if you want to rent out a home and make sure that you won't run into issues on it.
Interest rate section didn't age too well.
Sounds like the moral of #4 is don't rent to a lawyer??
Basically
😂
Lawyer probably owns the property now. Should be up for lawyer review board. This is just wrong.
If that happens again with a lawyer, report him to the Bar of his state license. I know, I'm a lawyer. That would have gotten his attention.
YogaWellnessMoney, I am a lawyer and I agree.
Hello Graham, do you recommend saving up for all these setbacks first before putting money aside for investing? Thanks
For example, should the correct order be: 1) emergency fund; 2) save up a reserve for some of these mistakes; 3) money for a down payment on a house; 4) then investing in other areas, like funds
edit: liked the video, smashed the button
TH-cam community engagement engaged! Thanks Graham, I’ve been digging your content big time.
You’ve made a lot of valid points that me, myself has made. I find that my HELOC is very helpful. But, I have a couple free and clear properties so makes it easy. Good advice. Thanks
How does one choose the worst property to buy out of all of them? What should the property feature to be a very bad idea? Next video perhaps?
It's more so a miscalculation of price than it being the wrong property. At a certain price, everything becomes a good deal. It's about understanding values and offering a price where there's enough upside to make money.
I love the pics of Tai as you spoke about renting tenants😂 Love the advise he gives and can definitely understand the “marketing strategy” behind having such an expensive house, cars and of course book shelves in the garage but most people don’t know that he actually rents that property (which obviously you have figured out). Awesome video, great to learn not only how to do something but how not so you have a broad idea of different possible scenarios both good and bad.
Thanks so much! And i totally agree with Tai Lopez's marketing strategy...it's honestly about as effective as it gets, and it's all done strategically. For results, everything he has works wonders!
All mentioned in the video is obvious but surprisingly every new investor should watch this so they are reminded about these.
Whoa. I just realized that you can get a fixed rate over 30 years. In Canada, the longest fixed term I've ever seen is 10, and the rate is usually really high.
Commented just anything for the TH-cam's algorithm engagement thing: Great Video Stefan, as always!
Thanks so much!
Graham, never stop doing the descriptions. It's the best quality of life thing ever.
Never plan to stop!
I had a 5/5 ARM on a property @ 3% because the credit union paid the closing costs. Then when 5 years came and the rate was going to adjust higher I paid off the loan from the sale of another house that was a poor rental. If you have enough money to pay cash for the property an ARM can be useful. For most people I would recommend not having more than one rental at a time to prevent over-leveraging.
not bad!
What does closing costs means?
Hope this comment helps you with the algorithm
Thank you so much...every comment matters :)
@@GrahamStephan In that case.... nothing. My pleasure
Commenting anything
@@ievaa.2319 no
Comment
passive income: give yourself to a single mother in need.
Thanks for your time in creating this particular video to help investors like me to experience the worst without actually being a victim of such incidents.
My experience has been that you should never rent to attorneys. My property manager rented an apartment to a young attorney, and when he refused to pay rent (because of a non functional light switch in a downstairs hallway........fixed in 24 hours, but that didn't stop him from filing a legal paper! It took months to evict him. All the time, he would make subtle lawsuit threats to the property manager, myself, and even tenants. I finally gave him $2500 to leave, but it was worth it. Be really careful whom you choose as tenants.....really, Graham is right.
Jeez that’s crazy
Someone told me right now wouldnt be a good time to buy a property and the best time will be around march next year because interest rates are going up. Is this true?
Who knows...I have a video posting next week about my prediction for 2019!
yo wtf did you know about the RONA and the low interests rates making may-june a great buy period. SUS DUDE VUTE TRIDZO HE VENTED
@@aarongold7220 lmaoo for real
Youre friend was right LOL. big prediction.
@@aarongold7220 wait who said what
Number 7: Don't buy land deeds for the moon.
Number 8: Don't buy on mars, either
Elon would disagree
you don't need to buy it if you conquer it
Wrong wrong wrong... your future off spring will thank you. Buy that chit and invest in your great great great great great great great great great great grandkids future. Way not to care about the kids... un subin🤬
@@Templarswordxx7 why not look after the land we already have?
I like the tip about keeping a separate account for each house. Definitely an organized way of doing things.
I haven't used hulu in a week cause this show. You're very real about money. I love it. Always smash the like button. I've been a stock investor since I turned 18. Now 21. My sisters keeps talking about real estate wholesaling and idk what wholesaling real estate exactly is or how to do it. Is it even worth it.
Great video Graham! Very helpful
Thanks so much!!
lol
I'm in LA this weekend! woo hoo!
Enjoy!!
There was no gentle tapping... I smashed that button.
🔥🔥
I've heard a variable interest rate is better because you will get a lower interest rate at the beginning when you owe a lot of money on the property, so you pay less in interest. The rate will increase over time, but the amount owed on the property will decrease, so less will be paid on interest. It depends on the market, but generally variable interest rates can be good if you think the interest rates will stay roughly the same over time.
You'll likely end up paying even more during the remaining 20-23 years as the interest rate increases annually!
Omg a video by Graham that I havent watched yet! I wonder how many more there are xD
🙌🏼
If I want to open a Roth IRA should I contribute checks I get from my job or from my self employment ? What looks better and brings back more or is it the same?
It'll be the same, it won't matter where the money is coming from
Whelp the ARM part aged nicely.... 2.75% average
(Hopefully) I will be purchasing my first property, within the next 1 1/2 - 3 months. Thank you Graham, for these bullet points.
I have a dilemma: should i buying a rental property or buying my first home???
Can we get a video on this topic?
th-cam.com/video/mmusZ66uH7A/w-d-xo.html
Buy a duplex or a fourplex and live in one and rent out the other units.
Bubble Buster If you don’t wanna live in your own multi family cause you have a family and want a yard and all that
Then I’d buy a home over rental
My family can live without a yard for a few years if we are getting paid to live in our house. Get a fourplex, rent out the other three units and live in the fourth one.
I actually SMASHED the Like Button, I hope that is ok! Gently tapping is against my nature.
THANKS!!
How’s your screen?
Time 10:20 is so true I lost with to tenants the 1st I did not do research and had empathy to the Lady who wanted to rent, and she started selling beer and had a Hore house took me 4 months to get them out and destroyed my property, then the next year I did do research, but when I wanted to live in my own property I had to pay him out all the rent he gave and got greedy and wanted triple amount but rent control gave him a limit of 15,900. Dls even thou they knew he was taking advantage. What a double nightmare
I turned down 3 tenant applications because only one spouse was either working or both spouses were working part time or just started new jobs... better no tenants than “bad” tenants
agreed!!
Could you elaborate or link what you mean by the tenant offering rent? I live in Oklahoma and everywhere I’ve lived and all of my family’s rentals have a set rent. How would you go about asking for $X of rent OBO.
Any videos about buying foreclosed properties and auctions?
I'll do some in the future!
@@GrahamStephan have you?
Graham, 2 questions. 1) Can you (if you have not already) go over your style for running pre buy numbers? 2) Can you tell us how you do background checks/screenings on new tenants. Once again, if you have not already, you have a lot of good videos, and I might not have found the answers in the ones I watched so far.
th-cam.com/video/hS8lIrzEwv0/w-d-xo.html
been through the bad tenant one. section 8 bum who took 6 months to leave cost about 4k in lawyer fees and we ended up spending all the money we got for him in rent. will never rent out to section 8 again. good vid btw
Jeez sorry to hear man!
would it be a good idea to negotiate a lower rent in exchange for good behavior? meaning that if they don’t become a nuisance that first year they get a discount onwards.
Never hurts to ask!
_
Too many variables to know who's good or not.
Even a stellar tenant, with years of early payments under his belt,
could stop paying, and refuse to leave.
_
My first building I gave half rent off for Christmas for paying on time, Now I just take off 100 bucks .. Note, this does not change there behavior...lol
_ Re: @@Postofficejoe's failed efforts.
Technology&Globalization are displacing workers, causing homelessness.
In Seattle, I feel the charity from Bill Gates and Jeff Bezos
trying to ease this (ShortTerm) problem.
_
When they think they are an awesome renter they usually are a pain...
#4. This is why the tenant law in Seattle is completely garbage. They require the first qualified applicant to get the unit.
😬
I got an ARM on my first investment property. They can be good options because they offer lower interest rates and as long as you refi with in the set period you are all good.
My only concern is that if rates go up, which they will, you’ll be refinancing at a much higher rate than if you did that now
Important advise video at this point where once again the lenders are going all out in lending and borrowers are borrowing so much. Too much debt with every bubble exceeding $trillion in size. The home loan bubble has reached $15 trillion, the car loan bubble is over $1trillion, the credit card bubble is over $1trillion, and the student loan bubble is reaching $2trillion, and the national debt is on its way from $22 trillion to $23 trillion. This is a lot of money in loans. I want lenders to become cautious with lending at this point by charging money upfront like at least a 10% down payment before being able to borrow and have high interest rate for new loans and low interest rate for old loans to make it easier for current borrowers to pay off debt but be prevented from borrowing more money.
I don't gently tap like buttons. I smash 'em!
THANKS!!
A big mistake is not smashing the like button!
Man! This guy’s serves 🔥 with good practical advice.
Had the same issue, bought a house cash..posted to rent, got slammed with calls (over 72 in 3 days) and like a dork i rented it to a couple paying 6 months ahead just to get it. Called some of the references etc and basically should've done a better job to filter out the tenant. Cost me months of rent and damages done to the property. Lesson learned!!!
Frenchy Alicea I have 7 rentals. It took me a while to get them under control but now my rule is this. No Drama, if there is a big sob story or drama why they left the last one one, forget them! Go for good credit, good income, and nothing bad in background check and don’t waiver. It is better empty than renting to a bad renter. Only took me 10 years to learn this lol.
@@tammyhensley3575 yeah i totally agree! I do have 1 single family rentes out via sec8 and has been a total money maker for me in the last 11yrs!
Dammit
So close man....so close... *tears slightly
😞
Worst real estate mistake you can make is not subscribing to Graham Stephan...Oh and subscribe to Pewdiepie!
subscribe to T-Series
Oh, and also UNSUBSCRIBE from T-Series
@@viktoriya2145 Ali that facts
Damn! Nicely done...
Very sensible advice! Saving up properly for the first deal takes patience & discipline
As a real estate broker and a property manager with MySmartLease.com this is some of the most sound advice I have ever heard from a TH-cam video regarding investment properties!
Thanks!!
Just invest in PewDiePie
I'll put about tree fiddy on it
Annnnnd it's gone...
It's been a minute since I watched any of your videos but you still cute
Even though you haven't watched in a minute, *still thank you haha
Should do a video on how you avoid bad tenates. Like what you do on the lease side. Not everyone can give a lawyer 10k to look over papers or draft something. Most rely on free to low-cost legal websites.
I already did! th-cam.com/video/hS8lIrzEwv0/w-d-xo.html
Im in the UK and these same rules apply.... I bought my first buy to let in 2014. People have told me to re-finance and just keep going and going. Im more conservative I plan to own at least 5 outright and the rest can be debt, currently have 14 properties and 5 mortgaged. One is a big one which I need to re-fi to pay a loan back to my dad (its a big loan). But yea total loan to value should still be under 50%.... people get carried away by buying more and more and more with massive debt and then when the rates change they have no headroom. Good vid.
Thanks!! That’s an awesome plan!
graham will you eat my feet?
I'm not into cannibalism, sorry
@@GrahamStephan shame, probably wouldn't be half bad with some toe jam lol...
But Graham your videos are too long and you have a different hair cut than me. Disliking and unsubscribing!😠🤮😬
IM UNSUBBING SO I CAN SUB TO PEWDIEPIE INSTEAD!!
Great video Graham thanks. Luckily for me I work for a big rental property company in Canada named Boardwalk. I have experienced bad tenants, evictions and all that fun stuff. You are right by saying it's worth more to take less money and have a good tenants then rent it out for more and have a bad tenant. As far as the reno costs, thankfully I have the knowledge, skills set, and tools to do everything myself. Se we are able to save by doing all that our self.
YOU are GOLD, learned so much, brand new to real estate, was just referred to you to learn about intro to finance as a renter
No days off; love the Saturday post, chief. This is definitely it.
Thanks!!
To find a decent tenant you almost always need to offer somewhat below market and be picky.
I love your videos. They're a great combination of being interesting and informative. I am learning so much. Thank you. :)
0:51 LOL. To me, this is complaining! I hate it when things are more expensive that I can't justify investing on it. I still push through it hoping that I'm wrong then end up losing.
Your videos are badass, great information for an aspiring real estate mogul like myself. Keep those real estate vids coming
Thanks!!
Probably reading about your county's tenant laws will be of good benefit.
a good tenant is worth their weight in gold. Pays every month? No damage, no drama? I never raise their rent for being good to me. I raise rent for the next tenant. And if something in the unit squeaks, it gets greased by day's end (light bulb, toilet valve, whatever). Otherwise, as you mention, you waste a month or two of mortgage waiting on a new tenant. And since I'm not a realtor, I then have to pay one a recruitment and background/credit check fee to get me a new tenant. And knock on wood I've never had to evict one. That must be a nightmare.
I totally agree!
I'm just here for the engagement. But fo rizzles, this is one of your most valuable videos. Gracias.
Thanks!!!
TH-cam, bless this man with a promotion
I love your videos they’re so informative I’m taking note of all of it I plan to become what you have but instead of retiring I plan to just look for more outlets to become as productive as possible with the money that I gain from these endeavors keep up the good work
gently tapping the like button?? nah im gonna smash it. Graham Stephan style.
😜🙌🏼
The best video on real estate that I have seen for a long time ;) good work
Thanks!!
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 🇪🇪
That south park clip made me spit out my drink in laughter lmao! And it's gone °_°
Can you make a video about the advantages/disadvantages of buying real estate in cash.
Sure!
CONGRATULATIONS on 1M subscribers