I’m proud to say that this property…was free. It cost me $0. I was able to buy an income generating property…in Los Angeles…for nothing. Here’s how – enjoy! Add me on Instagram: GPStephan
The YouTube Creator Academy:
Learn EXACTLY how to get your first 1000 subscribers on YouTube, rank videos on the front page of searches, grow your following, and turn that into another income source: https://bit.ly/2STxofv $100 OFF WITH CODE 100OFF
Get 2 Free Stocks on WeBull when you deposit $100 (Valued up to $1400): https://act.webull.com/k/Vowbik9Tm5he/main
My ENTIRE Camera and Recording Equipment:
https://www.amazon.com/shop/grahamstephan?listId=2TNWZ7RP1P1EB
24 months ago, I began looking for an income property around the mid-city area of Los Angeles. I liked this area in particular because it was close to nearby transit, surrounded by several large new developments, it was only a 15 minute drive away from the beach…and most importantly, it was one of the few areas in Los Angeles where property prices were still selling under $1 million dollars.
After 6 months of searching, writing offers, getting out bid, and otherwise not finding a single opportunity – the perfect spot came up. And the price? Listed for…$585,000.
So I made them an immediate offer: I’ll pay full price, guaranteed to close…under the condition, that the owner accepts it immediately.
I bought it for $585,000…I put $150,000 as a down payment, and I got a loan for $438,000 to cover the rest.
Then, I spent another 2 months, and roughly $80,000 fixing it up. This meant, when I was finished, I had invested a total of 2 months worth of time, and $230,000 into a property.
So I went to the bank, and I told them I wanted to do what’s called a REFINANCE. This is when the bank will give you a new loan on the property, based on the CURRENT value of what it’s worth – NOT what you paid for it.
And the market value was very favorable to me…an appraiser determined the market value of my property, for a remodeled 1920’s Spanish duplex, was now $780,000, just shortly after I bought it.
So given the new value, the bank is able to give me a mortgage of up to $585,000, and give me back $145,000 in cash.
My current mortgage is $438,000
The bank’s NEW loan is $585,000
The new loan pays off the old one, and that leaves us with $145,000 left over after paying some transaction fees.
That was in 2017. NOW…I can do it again. I went from bank, to bank, to bank…to get a quote on a new mortgage. I was able to get at 3.75% fixed rate mortgage for 30 years, on a cash out refinance. The bank appraised it for $965,000. And given the new $965,000 value, I was allowed a $675,000 mortgage – leaving 30% worth of equity still in the property.
That meant…after all was said and done…not only do I have $290,000 worth of equity in the property…but I now SAVE an extra $200 per month on my mortgage interest payments, and I got back ALL of the $230,000 I invested, leaving a total out of pocket cost, to buy this property, of $0
Like I said, the first refinance got me back $145,000…and the second got me back $85,000. That was everything I had invested in this property…and it’s basically free real estate.
In real estate, your ideal situation is that you can control 100% of an income-generating asset…by having as LITTLE of your own money invested in it, as well. This gives you the opportunity to INVEST your money in other, higher generating opportunities – than keeping your money tied up in an asset where it isn’t actively working for you.
This is the name of the game in real estate…it’s to find a good deal, put your money in, make it work for you, refinance your money back out, keep the property…then go and use that money to do it again. And it’s by doing that, over and over and over again, that you can soon build up an empire of real estate, for free, by just…smashing the like button.
For business or one-on-one real estate investing/real estate agent consulting inquiries, you can reach me at GrahamStephanBusiness@gmail.com
thanks for the house bro i needed this
I like your funny words magic man
I’m too stupid to understand anything you said
🧢
this video just made me unsubscribe from you. you just increasing Debt and on debt. yes is does makes sense to refinance if the int goes down like it did now but not always.
I’ll buy it from you for $2, and you can get infinite returns!
In India loans are around 10%
I’m still confused. He would still need to pay that $675,000 loan off right? and his tenants are paying that monthly mortgage for him? So are you even getting trickling income every month because the rent money goes straight to the mortgage payment? Then 30 years later the home is finally paid off, then the rent money would be seen as pure profit??
Is that X in the background I love this guy more every video!
My humble suggestion is, use the opportunity to engage with Easymakesolution🟢net, discuss your requirements and observe first hand, how the professionals come up with interesting solutions, I liked working with thems as they have a professional approach, are open to suggestions and very much oriented towards customer
Easymakesolution did an excellent job in explaining the concepts of value investing. I understood how to effectively and confidently select stocks based on the value investing approach. After taking the course I found Easymakesolution🟢net ongoing support and encouragement helped a lot, especially when first getting started with value investing."
The time lost in preparation for future goals is not going to come back. The earlier one starts the better. Easymakesolution🟢net has helped me to organise my savings for Emergencies as well as towards preparation for Future requirements.
This is my first year with Easymakesolution. Rather than analysing the profit / monetary figures right investment, I would like to highlight that a feeling of security that someone is looking after and analysing my investments is there. A proper plan of how to continue with investment is drawn and discussed, If it wasn’t them, then I might be continuing with a poor plan of financial investment which was managing myself before, They are drawing a financial plan for the goals which I have set, They are friendly, cooperative and ready for discussions at any time. The ideal partner for all those especially mariners who cannot actively track the market conditions due to sailing and connectivity issues, If you are thinking of hiring Easymakesolution🟢net, then go for it!!!
Hi
But you have to pay higher mortgage than before 😂
Did you listen to what he said???
this man has some cheat codes
Title is a bit misleading, as I’m sure you’re aware. There’s a difference between being $0 all in on a property over the course of several smart and well timed actions, and buying a property for $0.
Does not take away from how great of a deal that was and the great job you did at capitalizing on the transaction at every possible instance. Good info here.
Lmao I love how when he tried to make the small nerdy voice it was just a more exaggerated version of how he actually talks
Good Job!
Now it’s almost the end of 2021 and the house is worth 1.5 mil easy. Good for you graham
Graham I just wanted to let you know that I’ve been watching you for years and you motivated me to finally start my YouTube channel. I kept telling myself that I don’t have time and I finally stopped making excuses and I started. Thank you for the motivation and keep up the good work.
But wouldn’t you still have to pay off the second loan?
Nice work man.
It’s free real-estate
FTA!
More like this please.
In the words of pokimane, this guy has cheats on
Graham Annoying
You’re a goof, Graham.
Is he still paying a mortgage?
It’s Free Realestate.
mean olympic when shaft refuse excuse such country neither next present draft
Wow that’s a huge figure 👍
This is really interesting I thought I’m the only one facing the challenges, This is really interesting I thought I’m the only one facing the challenges
@The Next step hello, can I talk to you please
Who’s this professional everyone keep talking about I always see the good recommendation about her on top comments on almost all the YouTube videos I watch
I understand the Facts that tomorrow isn’t promised to anyone, but Investing today is a hard thing to do because i have no idea of how and what to invest in, I would appreciate any pointers or tips to help me maximize coloce al profite
Uncle Rey!!
Wait so don’t you owe the bank the new value of the loan
He probably bought it cash, and sold it for $0 to himself
Leverage works both ways. This is how we got the meltdown of 2008
I am currently too stupid to do this 😅
I like these real estate values from Graham.
hi
it’s free real estate
damn this guy is a genius
had to watch this 3 4 times to understand (I’m 17 don’t attack me lol)
It’s a dangerous game for those who are not fully in real estate.
If I get that house, I could claim all beds and my own pets
So you paid a sales price of $585,000 for house (plus $80,000 in renov/repairs). That sounds like more than $0.
Man i wish i have a new house that is free im in malaysia
Nicely done, Graham.
I love this video!
Thanks Graham, cool video! 😀
Misleading you implied it was $0 as in free not $0 to get a loan 😂
Interesting, and does make a lot of sense! … But hard to believe that the owner and the agent didn’t research the price point to sell the house.
So you risked almost 600k to make money congratz just give me 600k to risk without risking a life in dept/prision and ill do the sam
At what point would you sell the property? Where does it make the most financial sense? If the the 2nd appraisal came 10x your monthly rental income. What’s the threshold ?
Man how u got it free by buying it 🤦🏿♂️
Come on man….
I believe almost everyone’s dream is to own several properties and live off of passive income. The first step is to get tons of money saved from your main job or whatever, then the rest is study really hard and be EXTREMELY lucky that your area of interest will move up in price. He makes it sound simple but it isn’t so easy as he makes it. He is a trained real estate agent , for him these stuff is a piece of cake. Try your average joe doing all this work and thinking and will most likely end up screwing up and a buy an overrated property that the loan will eat him for the rest of his life and his children only will benefit from it.
nothing is free…we get free advice only… I want free or at low cost property to which I can sell at good price bcz I want to earn money
Not sure how your lower financed contingency offer wasn’t bumped by the higher all cash offer! 🤔
Mindblown! Always enjoy watching your content Graham.
literally free real estate
10:50
I smashed that like button so hard my phone screen cracked
I was wondering when you refi, do you have to pay PMI since you’ve taken out money? Or did you go with higher interest sans PMI? I’m interested to hear from you since we just canceled our PMI recently.
Thanks Graham for always showing detailed steps and visuals to see each action step. I really appreciate you. Just discovered you a month ago and catching up on all your videos. I work near San Bernardino so you when you shared that was your first investment home I thought how cool- you’re doing this in California- I can too!
How is paying for $500,00 plus amount to free? Desperate to have view if you ask me.
Okay, brain blown.
Time to grow my $200 bank account to get a house.
I didn’t understand why it’s free since there’s a loan to pay month after month? Where is he getting that money from?
You made a property an affordable one into one that you woudlnt wanna buy $900k property who tf is gonna buy that small house I haven’t seen the whole video but we need to look out for each other, sell it to someone with a fairish price
That house is worth 900k BECAUSE people would buy it for that much. LA is very populated with not much housing
Watched this in 2x very nice
Just have to give it to you, you are one of the smartest people i have seen
Al gore’s rhythm
3:18 Instead of paying the full price right away, he could have made an option, am I right?
“How I Bought This House For $0”
Recommendation: *MrBeast* *”I Sold My House For $1″*
It seems like you’re doing the same thing that I’ve kinda hit a brick wall doing — using loans backed by your income to cash out. I can’t make the numbers for any of the stuff I own in the Seattle area work re debt coverage ratio to use commercial loans. Any thoughts?
He really didn’t explain how he paid zero when he initially put down $150,000
I get that you recycle (that’s we call it here) the mortage but why would the bank knowingly let take a new loan .that you profit 150k . Bank can’t give the smallest duck about you
If you can explain
I enjoy how he puts all these people in their PLACE! 💀
Your a funny guy lol, had me a cracking up a few times
but hey
Its free real estate
Smart
This has to be a joke. You’re literally just pulling out bigger and bigger loans to pay off the old ones🤣🤣🤣🤣. Congrats on going from a few hundred grand in debt, to well over half a million 🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣
I dont get how you got a new mortgage and you don’t you owe the “extra” money? A mortgage is a loan so you owe that money.
It is so unrealistic, unless you own a bank it will take many many months if not years of time and very very high credits scores plus income sources to get through the approval process for the original loan and then the refinancing. That is to say you got to be a multi millionaire and have a ton of cash to be able to do these
Please teach me I need a house
Aren’t you just taking on bigger and bigger loans with bigger monthly payments?
I don’t have the money for the initial investment and don’t qualify for a loan so I’m out! Great vid though!
Notice it took you $80k out of pocket to fix so hence you still need money to play in this real estate sandbox .. you have to first spend money to make money..
AFV real estate
Great video
It’s free real estate.
<⬆️Let's discuss, I'll link you to something ProfitabIe...
I just can’t understand why the seller wouldn’t have left the home on the market for a couple days just to collect offers. Not like there was even the slightest chance they would struggle to sell it. I can’t believe you got them with the guarantee to close but you gotta agree immediately line. 10 out of 10 times if anyone else tried that line the seller would realize they underpriced the home and would just wait for more offers.
This guy doesn’t make sense. Another liar! $438,000 but the price you paid for the property is $585,000. He did not explain this correct.
Yeah like I’m so confused like you yes you got cash back but that money is still needing to be paid back to the higher loan…
The real question is WHERE DO YOU LOOK to find these deals??
Let’s talk 🎉
This video makes him 200000$
⬆️🆙⬆️
But like don’t you still need to pay off the higher mortgage?
How much was it for the appraiser to do the appraisal?
It’s a game for the young. When in elementary school start by doing competitive math “does not matter if you are good or not, you are in elementary school, in college people expect you to know it anyways”. The after elementary school have your parents sign up for a real estate class at a community college online.”your parents don’t care they already have there degree and a job lol”. Then as time goes by you pay attention to what is new and hot and you gain knowledge as you grow older making a lot of cash lol. With this knowledge you can be a millionaire at the age of 23, rather being suck in a community college or any college like me lol.