Why I Stopped Buying Real Estate

2021/01/26
 
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Lets talk about why I’m not investing in any more real estate, my thoughts on the current housing market, and how I plan to invest the rest of my money in 2021. Enjoy! Add me on Instagram: GPStephan

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My thoughts on the 2021 real estate market:

First, interest rates are at their historical all time lows, ever. Typically, this would bode REALLY well for a real estate investor like myself….

But, SECOND…that comes at a cost. Because interest rates have become so inexpensive, it’s driven up the price of real estate because – now – people can afford to spend just a little more than before, and there’s more demand to lock in a mortgage.

Third, speaking of demand – there’s a LOT of it. So much so, that it’s caused inventory to drop to its all time lowest level…also, in history.

That means, fourth – when you combine low interest rates, with low inventory, with high demand…you get a market that’s EXTREMELY difficult to find the type of deals that I’m looking to buy.

WHY I’M NOT BUYING REAL ESTATE:
For the last 10 years, I’ve invested nearly EVERYTHING I save into Real Estate, and for the longest time – that made up almost the ENTIRELY of my investment portfolio.

Even though it was VERY PROFITABLE…it’s NOT SMART to hold 90% of your net worth in real estate, in one city. It’s just too big of a risk that something COULD happen, without at least having SOMETHING ELSE to hedge that position. Something like this never really clicked when I was younger, because I was all about going after whatever made the most money…but, at a certain point, it becomes more important to PRESERVE your wealth, then CONTINUE growing it as fast as possible…and by diversifying AWAY from Real Estate, it’s given me a LOT more peace of mind that – no matter what happens – I’ll be good.

Next, another recent revelation that I’ve come to understand over the last year – is that value of my time. I’ve gotten to a point where I don’t have enough time in the day to get everything done. Even something like “hopping on a 30 minute call” has turned into a “I need o schedule this a few days in advance” because otherwise, everything else is booked up and I have to pull away from something else just to make the time. If I didn’t prioritize EVERYTHING this way, NOTHING would get done, and things would fall through the cracks…so, I now have a value for my time, and I ration it very precisely.

Because of that, I’m not able to spend the time I used to to be able to find the right deal, and manage the work myself.

For me, and – I think for MOST people – Real Estate is a PHENOMENAL TOOL for wealth CREATION. There’s no other investment that offers the opportunity to potentially DOUBLE your money, YEAR AFTER YEAR, through sourcing the right deals, fixing them up, and renting them out.

However, at a certain point – I need to take a step back, and realize that I’ve been TOO oriented around real estate, from a diversification standpoint, and it MAKES SENSE to take a more hands off, passive approach so that I have more time to focus on other endeavors.

My investments right now are all about lower risk, lower return, more diversification, and a safer allocation that allows it to continue to grow – but, at a slower, more consistent rate. It’s less stress, less work, less for me to think about, the more I can streamline my entire life – the better I can work on other things. .

For business or one-on-one real estate investing/real estate agent consulting inquiries, you can reach me at GrahamStephanBusiness@gmail.com

*Some of the links and other products that appear on this video are from companies which Graham Stephan will earn an affiliate commission or referral bonus. Graham Stephan is part of an affiliate network and receives compensation for sending traffic to partner sites. The content in this video is accurate as of the posting date. Some of the offers mentioned may no longer be available.

この記事を書いている人 - WRITER -
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  1. Avatar anstaafl says:

    This is really smart. Yr smart.

  2. Avatar Alexander says:

    Biden is planning on making laws to cap rent prices. So eventually people will no longer be able to make sky high rent prices.

    • Avatar Graham Stephan says:

      Contact me .

    • Avatar Alexander says:

      @Graham Stephan lol fake account.

  3. Avatar Michael Trujillo says:

    I’m planning to buy my first house for less than $15,000. I will not be taking out a loan. I can’t see how this will be a bad move.

    • Avatar Graham Stephan says:

      Contact me

    • Avatar Graham Stephan says:

      + 1 4 0 6 4 0 4 3 3 9 2

  4. Avatar Amirali Boisov says:

    Graham, it would be easier for users to subscribe to your second channel, if you put a link in the description

  5. Avatar M D says:

    “What’s up Graham, it’s guys here…”. Thought it was funny. Good video.

  6. Avatar Doge Smith says:

    Why would you buy rental properties when the government will tell you not to collect rent anymore, but you still have to pay property tax.

  7. Avatar Ken Kaufman says:

    Hard to collect rent? Hard to find borrowers with jobs? Extreme real estate taxes? High maintenance costs? Now is not the time to buy a home.

  8. Avatar Muddobber McCrablice says:

    A ridiculous amount of commercials. I’m out.

  9. Avatar Edward Duarte says:

    Real Estate Real Estate Real Estate.
    Hey did campaigns with Irvine Company so I know. I worked with developers in 2005 and we know what happened in 2008. Got the ball rolling there as far as it being developed.

  10. Avatar Money Sense says:

    Mortgage forbearance extended to September of 2021. That will alter the course a bit. Superb video Graham!. You always keep it informative. 🙂

  11. Avatar Saturated Odin says:

    So that’s why you talk so fast

  12. Avatar BlackLab says:

    nice jacket

  13. Avatar Laura Powell says:

    The super deer interspecifically head because reduction quickly march near a substantial open. accurate, untidy peer-to-peer

  14. Avatar jonpaul pezzo says:

    “Whats up graham it guys here “- brilliant way to get us all the comment and boost algorithm. Well played

  15. Avatar Google User says:

    Let me save you 11 minutes. Because his youtube channel makes more than real estate with much less effort and expenses. Thus, his priorities has shifted – where money is. There you’ve got your answer. You’re welcome.

  16. Avatar Apple Face says:

    You are young and sharp…aggressive…congratulations
    But you need to start fixing your image ..you look lack of sleep and need a good facial massage recharge . Make you like millions bucks as you do had

  17. Avatar John the surfer says:

    So basically pay someone less than what their asset is worth. I guess that’s the American way.

  18. Avatar Laser Wood Shapes says:

    When you spread out your “risk” what you end up doing is guaranteeing you will feel pain in the next down turn, since at least some of your portfolio is exposed to the failures in the market. If you are invested in truly valuable and profitable enterprises, you will succeed. period. full stop.

    If your invested in trash, even diversified trash, you will lose in the long run.

  19. Avatar Haynes LaLonde says:

    He said it the other way around to get more comments nice gram

  20. Avatar Haynes LaLonde says:

    Gram Ik u did the intro to get more comments I’m on to u

  21. Avatar dlwatib says:

    Actually, the fastest money I ever made was holding TSLA in 2019 and 2020.

  22. Avatar Austen Paterson says:

    How do you kick people out your house tho

  23. Avatar Supercars official says:

    Whats up graham, its guys here?
    -graham stephen

  24. Avatar Jake Caissie says:

    You bugging me to smash the like button makes it so i cant morally ignore your request lol

  25. Avatar Nobuhle Sibanda says:

    Whats up Graham its guys hear 🤣🤣, l love that intro

  26. Avatar Marty Ott says:

    I’ll save you a seemingly lifetime of babbling . Real estate is overpriced now due to low inventory.

  27. Avatar Slayer Mill says:

    We’ll all be too poor to buy homes with how bad the government is tanking our currency and are hell bent on redistribution of wealth. On the bright side we’ll all be equal… equally poor but equal. Yay progress!!!

  28. Avatar Ștefan Popa says:

    Mr Wonderfull got to you

  29. Avatar Stephan Rodriguez says:

    Graham: . . . You’re saying I can make how much money, just increasing my ads on videos?

    Youtube: $$$$$$

    Graham: let’s make this 10 min video 20 minutes long with ads! 🤑

  30. Avatar Cat Lady says:

    I feel like this isn’t a good time for investors.

    • Avatar Colin says:

      The stock market is literally at all time highs. LOL

  31. Avatar Keb Lee says:

    Dude, you got a “i dont work here” sign right next to you… thats clearly a lie. You seem like a 10/10 workaholic. Most 20 year olds spend their nights trying to netflix and chill not… husslin like you did. I guess everyone places value in different things. I certainly dont want to be broke, but life has some pretty rich experiences you cant buy.

  32. Avatar Ida Girl says:

    I’m not liking your video before you’ve said anything.

  33. Avatar Emily Christine says:

    The only reason I got a house in September and am not still living in my parents’ basement was because my uncle and his girlfriend moved in together and he wanted to sell his house. He gave me a good deal on it and I was able to get a gift of equity because of that & him being my uncle… Meaning I didn’t need a down payment because I was buying the house for about $20,000 less than market value. And I got the awesome interest rate.
    My parents cosigned just because I don’t have enough credit history. But they can get off of it once I have 20% equity… Which honestly I’ve probably got considering the upgrades I’ve done. I just need to get the money to pay for an appraisal. The mortgage company told me they’ll cover a refinance to get them off my mortgage as long as I do it within 5 years. (I know I need to do it soon or I’m not gonna get a good interest rate)

  34. Avatar Kyler Cook says:

    When you give up on the lady that brought you to the ball.

    Too bad LA investing was doomed.

  35. Avatar Aria Flores says:

    you are the best

  36. Avatar Colin says:

    The bigger issue is owning so much real estate in California. I don’t trust that state not to violate the constitution and confiscate wealth to fuel their failed state.

  37. Avatar MDA Medical, Inc. says:

    He’s giving up on real estate because he has lost his touch. He is paying $1.5 million for a house in Vegas that is sure to tank.

    • Avatar Nicole Diaz says:

      Exactly ! He goes back and forth with the crash. Just another kid that should just keep his option to himself.

  38. Avatar monserrate perez says:

    Nice 🔥

  39. Avatar Shondrella Avery says:

    The simplest advice I can take ATM is to keep investing, but invest smartly. I’ve been going a bit more aggressive for a few months now and my 1 year old portfolio has smashed $450k in value from an initial allocation of $180k. Learn to diversify and DIY or get a professional help. However investing has no one way to it

    • Avatar Energy god says:

      this is what I am talking about. how did you manage this make all that swiftly?

    • Avatar Shondrella Avery says:

      @Energy god Nothing out of the ordinary. I would say i was lucky to have the guidance of a successful and highly knowledgeable wealth advisor – (Freda Lynn Johnson) That was a smart move since my portfolio has grown at a tremendous pace. unlike i can say for my IRA which has just been trudging along. i even had to roll most of it over to Freda’s strategies. my account just mirrors what she trades and not just on some particular industries of my choosing

    • Avatar R Oneal says:

      @Shondrella Avery I am going to follow your steps,so I looked up Ms Freda in google and researched her accreditation with FINRA. She seem very proficient and pretty genuine to me. I will contact her through her webpage and I expect to hear what she has to say about my situation.

    • Avatar Bryan Ramirez says:

      How did you get the initial 180k saved up?

  40. Avatar Chris Rugh says:

    Graham you hiring? I’m I finance major in need of a internship.

  41. Avatar Marty Forkwater says:

    Graham wastes his own potential fooling with all the contracters , he could be doing most of the work him self learning skill on the job and putting on muscle to his dwarf frame

  42. Avatar bill b says:

    Graham, when we first discover your videos, we find interesting contents. But over time your videos get quite boring and annoying. It is annoying to have to wait 11 minutes to hear and answer that can be resumed in seconds. We have to wait 1 minute for the time you make your introduction and remind us to smash the like button. I wish you could start the video by giving the answer followed by the explications.

  43. Avatar JM Lav says:

    because you realise that communist/socialism just got elected?

  44. Avatar Ora Labora says:

    in this episode we have learnt that Graham, after cutting down on Starbucks, is now cutting down on his editor.

  45. Avatar voicedbydarion says:

    Real reason, he knows David Dobrik and thats all you need to make it now

  46. Avatar MM MM says:

    MAKE SHORTER VIDEOS

  47. Avatar MM MM says:

    YOU NEVER GOT TO THE POINT BLAH BLAH

  48. Avatar Aad1 says:

    If you look at the faces Graham makes on his thumbnails you’d think that he is spiralling towards bankruptcy. Somehow I think that’s not the case, lol.

  49. Avatar Ty Nichols says:

    Basically, he’s retiring. Enjoy it buddy!

  50. Avatar wj ebel says:

    Probably because he knows is smarter to just buy Bitcoin which is a new asset in its adoption phase as compared to real estate which is at all time high.

  51. Avatar Imelda RV says:

    stop dont say phoenix they’re mine! lol

  52. Avatar gegernaut says:

    weed selling albanian click bait guy

  53. Avatar Kevin O'Hare says:

    He doesn’t want to say it, but here it is- real estate is a crappy investment right now.

  54. Avatar Jacob H says:

    I smashed the dislike button does that still count?

  55. Avatar Kin Tsang says:

    So. Diversify

  56. Avatar Jenny Cela says:

    i love your honesty

  57. Avatar Landen Keller says:

    $tsla 😎

  58. Avatar roy alfred seaberg says:

    He stopped buying real estate for several reasons. One he gets enough cash flow from what he has already. Two he is doing a bunch of other things and real estate takes a fair amount of time to find deals. It’s something you do when you have time on your hands. Three I think real estate has become boring to him. It looks like he sticks with something for a while until he has mastered it but once he mastered it he is bored and wants to move on. Even if I had a bunch of other things going on I can make time to buy real estate. There is things like property management companies. He just doesn’t want to make time for real estate because it bores him now

  59. Avatar UniQ says:

    Why would anyone buy real estate during Covid times. The house prices are insane.

  60. Avatar 649684361B says:

    The journey is very individual and your evolution has brought you to this point now. I too started in real estate and still have some interest there. But transitioning from a full time job being a full time landlord is not that different. It’s still a job. But 2020 taught me the diversification lesson too. Had to lay off a few managers and refinance to stay in the black. The plus side was that not only did I have real property but REITs and mREITs. And many have performed well even through the lockdowns giving fair distributions. If stocks are your thing, maybe look into those or some ETFs that automatically diversify your portfolio. Since security is important in your portfolio, look into DLR, CONE or AMT for exposure to real estate outside of residential.

  61. Avatar Behamounde Reymoundo says:

    LOCATION LOCATION LOCATION THATS WHAT SELLS

  62. Avatar Charlie Buttons says:

    Cause biden is putting 39% tax on all home sells

  63. Avatar Steemium says:

    Can’t tell if facial hairs or moles.

  64. Avatar IrishNomad ORourkeGlynn says:

    Flippers etc have destroyed the ATL market for those living here and just trying to move

  65. Avatar Zacharoni Macaroni says:

    okay but where’d you get that jacket?

  66. Avatar Travis D says:

    Maybe look into real estate in Wyoming

  67. Avatar Joseph Leary says:

    You can’t take his advice. He contradicts everything

  68. Avatar Alec Pascoe says:

    YouTube getting real comfortable putting 5 ads in a 10 min video

  69. Avatar Ball Zock says:

    This is so adorable. He’s following Kevin’s advice

  70. Avatar gavyn gurdine says:

    Nice copying humble trader

  71. Avatar RED TALKS says:

    I always play videos at 1.5 speed. ABSORB THAT GOOD INFO FAST ⏩

  72. Avatar Fashionloverdebut says:

    Well congrats on your new chapter! Thank you for letting us be apart of world continue sharing ❤

  73. Avatar FatGuy says:

    He started investing in Fake Estate that’s why

  74. Avatar Suaz Diablo says:

    It’s safe to say I merited the huge success I achieved these past weeks from trading bitcoin after a woeful adventure trading stocks in 2020

    • Avatar Thompson Smith says:

      Investing in bitcoin now should be at the top of every wise individuals list

    • Avatar Derrick Arthur says:

      @Thompson Smith You are right the market is profiting a lot if you have good guidance

    • Avatar Thompson Smith says:

      I work with an experienced, trusted and sincere expert broker by name Mrs Catherine Sawyer who manages my capital and return profits

    • Avatar Stanley Martins says:

      Wow you really know expert Mrs Catherine Sawyer? I’m a living testimony of expert Mrs Catherine, She has been trading for me for months now.

    • Avatar Thompson Smith says:

      @Stanley Martins My first investment with Mrs Catherine gave me profit over $25,000 and ever since then I trade with her weekly investment plan and it has been a good move

  75. Avatar j w says:

    Why does every real estate investment training video have 1000 ads….

    • Avatar Rickshi and Moku says:

      Cough cough YouTube premium

  76. Avatar Isha Locke says:

    Not even farmland like Bezos and Gates?

  77. Avatar Taylor M says:

    The intro 🤣

  78. Avatar Matthew Overstrom says:

    I’ll save you all 11 minutes..it’s not like he fully stopped he’s just diversifying and investing in other endeavors like 3 mill in stocks. He is really enjoying it.

  79. Avatar Lance Hayabusa says:

    dealing with contractors is a nightmare

  80. Avatar yq9hqh A says:

    Is there anyway we can invest in the company Yotta Savings?

  81. Avatar TisMyIsland says:

    Do you do all of your own repairs? How do you avoid being scammed by construction?

  82. Avatar Mr. Andrew says:

    What’s the point of buying real estate when the world economic forum says in 2030 “you’ll own nothing, and be happy”

  83. Avatar Derek says:

    I find it refreshing that you don’t lie about what motivates you: the pursuit of the dollar; and the rest is the means to the end.

  84. Avatar Breyana Kristine says:

    your videos are amazing but you talk so fast

  85. Avatar Tobias Salas says:

    Did Kevin O’Leary convince you into diversifying?

  86. Avatar Decimate says:

    For the algorithm

  87. Avatar Nicole Biancorosso says:

    what’s up graham it’s guys here

  88. Avatar StraightShooterGaming says:

    I wouldn’t do real estate. the headache of finding a good tenant alone isn’t worth it. Its fine I don’t mind slower more boring growth.

  89. Avatar Nicholas Wennerstrom says:

    What’s up Graham it’s guys here

  90. Avatar Murray Oickle says:

    Rental properties can be very profitable but are a pain in the butt type of investment. Apartment REITs offer less direct control and possibly (but not necessarily) less profit but as Graham alluded to, time also is worth something.

  91. Avatar systemshock says:

    What are tesla call options. Looked it up and have no idea what it’s trying to tell me

  92. Avatar Shawn Green says:

    He over leveraged, legislative bodies and governors have ruled that he can no longer collect rent or evict deadbeats so he is giving up and moving in with his mom and dad.

  93. Avatar Kristin says:

    When you said you are known as the real estate guy I thought you were going to say that you are known as the click bait guy.

  94. Avatar Josh says:

    Now he is the Bitcoin guy

  95. Avatar Futurist Dreamer says:

    Considering the recent changes coming from the Biden administration (particularly the minimum wage change), I think that this is exactly the time to purchase, even though the market seems to be inflated. I would say it’s riskier, because the minimum wage change could cause an economic collapse and higher unemployment, but I don’t think it will, I think it will cause inflation (including the price of a home), so you can get a home right now at $500k and in five years it will likely be closer to $750k because of the upward cascade and increase in prices/wages across all segments and it will be at 2.8% interest.

    I think that we’re on the verge of the biggest inflationary period in 40 years (since the late 70s/early 80s). If I’m right, then you should take advantage of it and get homes with historically low interest rates at what will be deflated values in five years.

  96. Avatar Jeff Evans says:

    The only thing you need is to claim Jesus as the son of God and your savior and repent as time is up.

  97. Avatar Rishi Gunness says:

    not exactly click bait but kinda

  98. Avatar Clark Loeffler says:

    The crowded kettledrum spindly listen because adjustment feraly paddle past a outrageous bowling. luxuriant, jealous robert

  99. Avatar Tyler Amazon PL says:

    heres why. hes dirty rich from YouTube and stocks. real estate is for the minor leagues.

  100. Avatar russel brown says:

    GOOD TIMING GET RID OF EVERYTHING EXCEPT WHAT YOU WANT TO KEEP FOR YOURSELF IT IS GOING TO POP AGAIN SOON

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