This is exactly how I ended up making $65,000 per month in real estate last year, and some of these concepts and strategies you could begin implementing in your business going forward. I’ll break it down, share the numbers, and share what’s worked best with me. Enjoy! Snapchat/Instagram: GPStephan
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I have three main sources of income when it comes to this number:
1. Working as a real estate agent
2. Rental property income
3. Equity gained by buying a renovating a property
So lets talk about the largest income source, and that’s working as a Real Estate Agent. In 2017, I had 19 total transactions…11 sales and 8 leases. In total, that worked out to $21,838,100 in total sales volume. Now my business isn’t so much structured around selling as many houses as possible, but it’s about focusing on fewer, higher priced listings throughout my current and existing clientele.
Most of this sales volume was made up between repeat and referral business, and this is how I’ve structured my business. This is how I was able to achieve a $22m sales volume without much prospecting, without driving myself crazy working nutty hours, and how I’ve still managed to increase my sales volume every single year, while still making 2-3x youtube videos per week, buying properties, and having free time. That’s why I also put such a huge importance on customer service, because making a good impression early on = huge payouts later on, and everyone benefits from this.
The next income source is my rental income. Right now I have 7 tenants, and this worked out to about $4650 per month…it was about 30% lower for most of last year since I was in the process of buying a duplex, so the net income was a little less than it is now, but you get the idea. Again, to get this rental income, this is about 6 years in the works in terms of of savings and investing since buying my first place. So didn’t come quick, but it’s something that was able to scale nicely over time. This is also where I try to keep my expenses at every year, and that allows me to save everything else I make…so even though I make way more, there’s no sense spending it if you don’t absolutely have to.
Finally, my last source is equity. The last two main properties I bought and renovated both went up in value by about $150,000 last year, which means I’ve gained an extra $300,000 home equity. Yes I count this as income because I purposefully bought these properties to fix up in areas that I felt were going to increase in value, and they did, and I could sell them for profit if I wanted to, but I’d rather keep them and do a cash out refinance. This saves on taxes AND I get to keep the property. This has always been my philosophy when it comes to investing in real estate – it’s to buy something that needs work in an area next to other ares that have rapidly increased in value, fix it up, and reap the increased equity as it goes up in value. From there, you can cash-out refinance and continue.
So between the approximately $480,000 of income from my first two sources, plus $300,000 in appreciation, my real estate total for 2017 came to $780,000, or $65,000 per month. Again, not counting some other things in this just to keep this simple, but you get the idea.
So here are my main takeaways from this:
First, in any business, do it for the long run. Customer service is so important, and without it, there’d be no way I’d have any repeat clients, ever. Nothing great is built overnight. Set long term goals and stay consistent with it.
The next…save. Doesn’t matter if you make $50,000 per year or $500,000 per year. Save as much as you can. And once you save, invest it.
Finally, diversify your income if you can. Plus it’s easier to make more money when you have a few different sources of income coming in, especially if those other sources are passive and it’s something you can leverage.
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
Favorite Credit Cards:
Chase Sapphire Reserve – https://goo.gl/sT68EC
American Express Platinum – https://goo.gl/C9n4e3
How do you gauge your rent? Do you have a number based on comps? Also, how much do you increase the rent?
Great video brother
Once again, solid gold man 👊🏻
Excellent …
lol @ that which has no life
wut
11:38 😀 from my fav South Park episode. “How do you kill that which has no life?” Referring to the highly leveled fat troll in their World of Warcraft game.
I think you should look into Personal Capital in tracking your net worth. It is a better tool than Mint, although I do use both. talkable.com/x/uBJShH
I used personal capital for awhile but never really got into it. Just decided to stick with mint.
Hi Graham, big fan from New Orleans, I own two duplexes, can you do a video or provide a spreadsheet that breaks down net rental income.
Thanks
Do Epic Shit …. I like it haha
Ha Thanks dude!
Graham, Can I buy real estate with credit cards? I have over $30,000 in credit line
No, you generally can’t put real estate on a credit card.
Graham Stephan ok.
thanks for your video and I want to know how do you know exactly what the value after you repair and renovated the property? and how do you know the monthly income before you buy it, which means how to define what the price can I rent it out and the price of the house after I repair it, cause if you have the wrong number the results will be different.
You should make a series, (preferably at-least once a week) where you just list off simple ways to save money. If you do then please spread out the best tips, instead of just one with great effective tips, and then the rest of the series just being how to save $5 a year.
I was actually going to do something like this next week! 🙂
Graham Stephan will it be one time or continual. You probably know but to clarify by save I mean not spend as much on the same thing. Kinda like that video where you speed the image search trick.
But are we talking profit
Real estate income is gross, so there’s realtor dues, marketing expenses, etc. but it’s not much. Properties are net profit.
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Do you own your own agency or work for someone else?
Something I really need help with, when you talk about forced appreciation, could you make a video about how you do that? What areas do focus on to force appreciation, how do you find the right people for the work or do you use the same people all the time? What’s the best way to find someone good to do that kind of work for you?
Graham, thank you for making and uploading this video! This one, is the reason I decided to subscribe to your channel, wich very seldom do. It IS encouraging, it IS helpfull and it Is detailed and realisticly sounding. Didnt see any other like that, on youtube or elsewhere.
Sincerely wish you all good luck in all your future plans.
That really means a lot to hear!
Fake
Wtf
FAAKE EXPOSED
UNSUBBED
Best financial Channel on YouTube in my opinion because it seems like everyone else is trying to give you false information for their own good
Thanks so much reece!
Do you think it would be smart for me to get my real estate license in my current state and get experience then move to a better area (california) or wait longer and waste time of experience to save money to move then get my license? Thanks in advance! great content!
How much where you putting down on your rentals to aquire them? Also is that $4600 from your rentals before paying the mortgage on the property?
I was putting between 20-25% down! And $4600 is AFTER paying the mortgage and everything. That’s net left over.
Do you have a course on flipping? Or a strategy on buying rental properties?
I don’t man. But these videos are pretty comprehensive!
Thanks for the transparency; you did hit your mark with providing real info that was actually helpful! Takes guts man. Made an impression on me and I’ll be following you from here on out!
Thanks so much man, means a lot! Really appreciate it, I do my best to make the videos id actually want to watch myself.
Excellent job done!Keep it up my man!💜💜
Thanks so much!
My utmost pleasure mate!
no offense…. but.. vyvanse?
?
Its cool don’t worry about it. I was just curious about something but it wouldn’t be appropriate to ask anyway.
Man i skipped some videos need to catch up 😪
There’s a lot to catch up on 🙂
Where are most of your rental properties located?
Great content, Graham!
Love the way you take your time to reply to all the comments.
Cheers from India!
Thanks so much man! I have fun replying!
Graham, what’s cash and refinance?
Cash out refinance. You pull out the equity in your home as a loan!
Great video
Thanks Luis!
Graham, these are great videos that you’re putting together and really giving me some motivation to think about things differently. I currently rent in a duplex in the Carthay Square area probably near your hood. Man oh man, I’ve been looking for a SFR within mid city and you know how it is! I was really bent on having my own space and a backyard but now considering a duplex. Do you have any links/info you can share about lease agreements (legalzoom?), how to go about finding the right maintenance guy and how that arrangement should work (I travel 90% for work), and other ideas are maintaining/screening tenants? I just want to get a sense of what all that entails. Hope you get that lambo brotha!
Thanks so much! Carthay is certainly close by! As for lease agreements, I just use the standard CAR lease agreement and it’s done the trick. Right maintenance guy = people from Yelp. Depends what breaks, or a good handyman. if you get a place let me know and I’ll give you my guy, he’s busy now but he’s awesome.
I loved your videos thanks a lot…
I love how transparent you are. Thank you for being so transparent. 😉
EXCELLENT
THANKS!!
Graham how do I become a real estate agent as I am really interested and want to follow your path. I am 17 years old. Any advice and do you use a broker. Sorry I am new and don’t know much which is why I’m watching your videos.
Same, but for real-estate investing
Paying down mortgage is money earned for sure… Less for the bank more that you’ll SEE!!
I appreciate your authenticity man
Thank you so much!
4:10 lmaoo
and great knowledge man
i always try remember
the only purpose to SAVE is to invest
Dear Stephan, you are awesome. Please do not worry about what negative individuals say.
Where did you get the picture’s in the background? They’re amazing!!!!
Thank you, got them from Etsy!
Thank you. I can’t find them. KEEP UP THE WONDERFUL VIDEOS!!
Do you have a video for how you have your finances set up for the houses? Do you have them under a llc with its own bank account or maybe have any suggestions for that?
This sounds a lot like how Arnold Schwarzenegger invested his Mr. Universe winnings into Real Estate wealth before making movies. Without the Mr. Universe part.
How much should a property rent for? I’ve heard that it should more or less be 1% of the property value per month…
That’s a great rule of thumb! But ultimately it depends on the area and property.
Cant stop laughing 11:38
bro…YOU FAILED….at failing lol! great video dude! love the transparency!
haha thanks man!
Have you ever tried doing business out of state?
Not yet!
Just wanna Say I am from Ireland & I love your videos I try absorb what I can. Just started 3rd year of college (no student loans or super crazy tuition fees like in america, we dont have that stuff) & my first goal when i get a job in my field is to save for a deposit for a mortgage and rent the house to generate more passive income & continuing to do so. Wanna be retired from 9-5 before 30 or late 20’s. Keep up the work by the way. 🙂
Thanks so much!! 🙌🏼
I wanna learn how to do this
Dude you should really write a book
I’m down to do that at some point!
Watched 👀 #AndIMustSay. Thanks for sharing.
To become a real estate agent, is it worth moving to LA to the higher priced market?
I wouldn’t make the move to a different state unless you REALLY want to live in LA. But i would recommend selling in the most expensive area you can within a 45 minute drive from where you live.
Graham, I have a question. Every residual income video I find in YouTube talk about 3% interest rate mortgages for 30 years, but where I live banks lowest interest rates are 9 or 10% going all the way up to 14 to 15% interest rates. How can I make these strategies work with loans so expensive? I can’t seem to figure it out.
Where do you live..?? …because that interest rate is nuts..!
…Go see a Mortgage Broker for best rates…
@@Postofficejoe I live in Dominican Republic but other countries in Latin America also have interest rates like that or higher. And mortgage loans are the ones that have the lowest rates, usually consumer loans go all the way up to 20%. It is nuts, but GOV says economy is strong and growing. It is just a little obstacle to overcome tho.
Ok I had a quick look . without knowing what you want to purchase.?
1) Try owner financing.
2) Find an investor.
3) Developers are offering 6.5 to 7.5% on newly completed or near completed properties, but must have 25% down
4) Scotia Bank (also in Canada) will do mortgages in Dominican Republic at 8% For loans from US$0.00 to US$1,500,000, they finance up to 70% for up to 25 years.
Personally, I used to work with a guy who always bot homes that were in the process of being built, he would rent them out for 2 years then sell them for a huge profit, because after 2 years it looks more like a residential area rather than a construction zone, this is in Toronto Canada, he was doing 2 to 3 at a time when I last seen him 20 years ago, probably a millionaire now.
Last thing theirs a YouTube channel here called “Bigger Pockets” they are great for getting ideas and they also have investors, might want to run your ideas by them… Never give up, keep crunching the numbers, be creative, and you will get there…best of luck.!
Succeeded buddy really helping me get through these long trucking days
AWESOME!!
Have you ever heard of “lease option”? How do you feel about? Have you done it?
I’m a little familiar with it, never done it before !
great video thanks for the insight
Can you explain in more depth the Cash out refinance please?
https://youtu.be/Bw5y_EWblCI
Over the top—You have had huge success from starting with just personal savings. A suggestion is to stop arguing with the non believers. It will make your presentation way less disconnected.
Graham is so right: most YouTube videos on success stories are kind of vague. I’m addicted to Graham’s channel because he’s totally open and tells us exactly what he did and how to do it. BiggerPockets takes a 2 hour podcast to vaguely explain what Graham clearly explains in 15 minutes.
Ah thank you!!
how about your youtube income? haha
Didn’t cover that here, I wasn’t making any money from youtube at this time – it was very minimal
How do you make money by helping people find rental leases?
Same as you do from helping them find a house. You’re paid a commission.
Can you make a video on mint?
Do you have a checking account for each property? or each unit? Thank you!!
Each property!
What about Property Management, you handle it or outsourced?
Berislav Mlikota was i think he has 1 duplex being managed. the rest he does. i think
Hi Graham! Love you videos and breakdowns. Do you recommend buying rentals outside your area the prices in your area has gone up too much for the numbers to work.
Thank you for your channel. Thank you for sharing your knowledge.
Thanks for watching!
In my chanel, ” Here how i made $24,000 per year ” And at the end i say i work at mcdonald.
You are a young man of principle. You give good service! Hence the money. Blessed. Love it!
0:22 Thanks for the surprise acid relapse
😱
Learning lots from you .. wish can meet u one day in real life 👌🏻
Hmmm… I mean, it could be possible to make that much money. However, the real estate market with high value assets in the millions is not a market that anyone can get into. I think there’s some sort of connection (family or friends) that’s in the real estate business. Plus, being good looking helps a lot. It’s not something most people can rely on.
I’d like to learn more about being a real estate agent in the future. I’m so done with this fake estate agent gig. 😂 Okay, I’m done.
dear graham, I am about to move to new york city and I want to ask you that is there any good real estate company that you cam recommend??
Stephan, have you tried dropshipping?
You’re a good man
you think I will be able to do this.
Graham, well done you for working hard and sharing the knowledge transparently. Loving how half of your points are reacting to the trolls (or people who are making excuses and justifying why they have not achieved the level of success you have in the same circumstances). It’s all fun and games from the peanut gallery! Please keep posting these kinds of videos as they are most insightful. Thank you!!
in 20, recently married, making about 60K a year between me and my wife, she’s going to school for nursing, im in the navy training as a nuclear power plant operator. (which will qualify me to work at civilian plants when i get out in 5 years, a roughly 100,000$ job) plus my wife will be pushing close to that as a nurse practitioner once she gets that education. i want to start working towards passive income though, i dont want to do shift work at a plant for the rest of my life. my plan right now is to become a landlord swapping your job as a real estate agent for our income.
Hey Graham can you please contact me.
Leave a message for questions and more insights ✍️☝️
So in 17 real estate agent was number one for you. I’d love to hear how that has changed now
hey hey! Nice video you have there! Since you are on this topic; have you heard about ” Vidadsmedia Real income “? (Have a quick look on google…cant remember the exact words)? My sister had some transactions with them and was impressed by their super treatment when they shared their knowledge about generating residual income !
I’m student and i don’t even have computer and i cant buy it 🤣🤣🤣
Its soo funnyy that i i’m looking for how to make 1m/yr or month right🤣🤣🤣
But i have planes to make money but my problem is i don’t 1$ to start right now
I’am sure i will it
I will comeback this comment after year and see where i’m
Now i’m taking screanshot🤣🤣
Hi Graham, I have a friend deeply sucked into Amway MLM. He’s been losing 10K every year and countless of hours trying to sell this business plan. Can you create a video of why MLM are scams? Any thoughts or advice how I can get my friend out? He’s in heavy debt of student loan as well..
Hi Graham, do you still use Mint? Would you recommend it?
Wow
Thank you, sir, for the interesting video.
I know this is two years old but I literally just found this channel so…. Any advice for young ones to make passive income when they’re just starting out in the workplace and are in a different industry 👀?
Yo if u look closely it looks like he is really good cgi
Thanks so much I been doing trading for 4days now by following my instructor *Feliciafx_trades* on in.sta gram after investing $700 in 48hours I was able to withdraw $4500 to my bitcoin wallet. ..
Taking a decision to place your trading investment under an expert for risk management and guidance, if you ask me is a bold step taken. The higher your capital the higher your profit returns, contact coach ventre on how to invest through forex trading
What type of real estate do you work in
Dude you’re the freakin best! Always helpful content and always speaking facts!
“There’s no sense spending money on something if I don’t absolutely have to” has a fucking dinosaur skull in the frame
Well he grinded for that Dino head hahaha
Your video was amazing, I’m going to go watch all your real estate videos💪🏼
just tossing in a comment for the algorithm.. keep scrolling
Watch in 1.25x speed, your welcome.
Your honesty is so refreshing 🙂
Yo
Graham the tax rates in India will make you mad 🤣
That shouldn’t be a barrier. For more insights and tips leave a message 📩🔝
“Investing” in real estate is great until it is time to sell. Never invest in an illiquid asset like real estate. Oh, and it is no treat at tax time either.
Hello Graham, I have a question. I live in Canada and I was checking rental properties here and my question is. How do you guys make residual income on a rental house on which you pay 3800$ and the rental income is 3750$ (Keep in mind that 3750 is the gross income everymonth). I am just learning about real estate 😊
Thoughts on providing a referral rewards to incentivize people to share your information with their friends and family? Like a 500-1000$ referral payout for successful sales on the lead. Let people do the work for you.