Mortgage Loan

The 5 Golden Rules of Real Estate Investing





These are the 5 Golden Rules of Real Estate Investing that I have lived by, which has helped grow my portfolio from $0 to several million invested in Real Estate since 2011. Enjoy! Add me on Snapchat/Instagram: GPStephan

Learn how to make money as a Real Estate Agent and the steps I’ve used to build my entire career: $50 off with code ThankYou50 for a limited time:

Join the private Real Estate Facebook Group:

1. Make money when you buy.
This is absolutely crucial when you invest in real estate – you either need to buy into cash flow, buy into equity, or buy into a combination of the two. Do not do what everyone else does and buy something at market rate for market rent without allowing yourself some room to improve those numbers, and your investment

2. Never fall in love with an investment
This is one I see too many people fall victim to. They go out to look for an investment, then see a home they “fall in love” with, despite it being a terrible money-sucking investment. But hey…maybe it’s just really charming, or reminded them of their childhood house, or whatever…point being, if it’s an investment, it’s a BUSINESS. Not a romantic-comedy. You cannot get emotionally attached to a property you’re investing in.

3. Big picture, laster focus
While the bigger picture is fine to pay attention to, local markets are much more important. Don’t get too caught up in headlines and following trends because real estate is such a micro-economy. Each property and city is its own individual investment opportunity. While they can trail overall economics, every single property is like it’s own stock – some are undervalued, some are overvalued, some are going up in value, some are going down…the specifics are what make this type of investment really, really unique. Your market will have its own opportunities outside of everything else that’s going on.

4. Think long term – get a fixed rate loan
This is one that I’m a firm believer in. Some people might disagree with this, they might want to take a riskier approach, but my philosophy is simple: buy once and hold. Even though you might be able to get a cheaper loan by going for a 5-10 year Adjustable Rate Mortgage, which means that your interest rate will only be locked in for so many years before it’s adjusted to market rate, it’s much safer to lock in a one-time rate NOW and then hold it. You know your holding cost will at least remain consistent throughout the life of the loan, until you either refinance, pay it off entirely, or sell.

5. Finally, make sure it cash flows.
You should focus primarily on your cash flow – how much money are you investing into the deal and how much will that make you every single month. Do NOT barely operate on a thin margin of cash flow unless you’re making a significant amount of equity and have the cash reserves to pay out of pocket if and when something goes wrong. The biggest problem I see happening is when people cash flow a few hundred dollars on their investment, barely scraping by, and then something comes up and wipes out a years worth of profit…even if they made a ton of money by paying down the loan, they need some type of cash flow for it to really make sense. Focus on cash flow, while still taking everything else into consideration. Cash flow first…everything else second, then evaluate the deal from there.

6. Bonus tip…don’t be your tenants best friend.
I’m a really, really nice landlord…sometimes too nice. When I first started, I really wanted to be buddy-buddy with my tenants and be the “cool” landlord. No. Bad idea. This is often when you get taken advantage of, even if its not even intended…this is when they start calling for personal favors, extended time on rent, or fixing things that aren’t your responsibility to fix. This often puts you in a difficult position between being a friend and being a business person. And once you’ve opened the friendship floodgates, it’s difficult to shift into the mindset that you’re running a business and that this is your investment. My biggest piece of advice is to treat it strictly as a business – be friendly to your tenants, but do not be friends. Stick to the contract and enforce it. It’ll end up saving you in the long run.

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

Suggested reading:
The Millionaire Real Estate Agent:
Your money or your life:
The Millionaire Real Estate Investor:
How to Win Friends and Influence People:
Think and grow rich:
Awaken the giant within:
The Book on Rental Property Investing:

source

38 comments

  1. Bates motel hahaha

    Reply
  2. 3:15 is that the house from "the game of life"?

    Reply
  3. For #4, what do you suggest about a long term loan if it's not at a great rate?

    Reply
  4. Graham, love the vids but one thing I feel you haven't touched on yet is, going into partnerships in real estate deals. In not sure if this is something you're covering in your real estate academy. It would be greatly appreciated if you make a video on your insights into the topic.

    Reply
  5. 🤑Real estate Investors always send me postcards to trying buy my home I wonder why. I get like 4 of them a year.

    Reply
  6. If you give me 45 seconds I’m gonna ask you if you would recommend me buying a lotus evora ?

    Reply
  7. Unrelated but can you market a property as a real estate agent if you are wholesaling a property?

    Reply
  8. Yay another video, I wonder why some people don’t hold their investments lifetime 😔

    Reply
  9. #3 was a personal breakthrough for me…."Big picture, laster focus".  I've wasted so much time trying to be laser focused when I should have been concentrating more on being laster focused.  Can't wait to see how making this change will improve my game.  Thanks Graham!

    Reply
  10. I actually heard your first rule from Dave Ramsey first. Glad to hear it from more than one source.

    “The profit is made at the purchase!”

    Keep it up man.

    Reply
  11. Hello Graham. Just thought I mention this.
    Regarding cash flow and equity, under an LLC, additional cashflow will increase the value of your investment because the banks looks at it, not as living space, but purely as a business. So increasing performance of these assets should also be an objective and is seen favorably by the banks. This then increasing your equity and ability to cash out and refinance.

    Reply
  12. Where would you find the market value of your home? Is that the same as the provincial/government assessment of your home? Its really tough to find homes that come with equity.

    Reply
  13. AMEN to #6…!!! Don't Be Friends with Your Renters…

    Reply
  14. Graham i have to say thank you for giving me so much knowledge i have learnt alot from watching your videos! Im 18 and hoping to buy an investment property in the near future keep up the good content!

    Reply
  15. I loved this video.

    Reply
  16. Valuable content 👌🏼

    Reply
  17. 🙂

    Reply
  18. Boo yah!

    Reply
  19. When looking for a property what should i look for, for a good cash flow investment? Thanks graham keep up the good vid bro!

    Reply
  20. i like cars 😀😀😀😀😀
    ░░░░░░░░░░░█░░█░░░░░░░░░░░░░
    ░░░░░░░░░░░█░░█░░░░░░░░░░░░░
    ░░░░░░░░░░█░░░█░░░░░░░░░░░░░
    ░░░░░░░░░█░░░░█░░░░░░░░░░░░░
    ██████▄▄█░░░░░██████▄░░░░░░░
    ▓▓▓▓▓▓█░░░░░░░░░░░░░░█░░░░░░
    ▓▓▓▓▓▓█░░░░░░░░░░░░░░█░░░░░░
    ▓▓▓▓▓▓█░░░░░░░░░░░░░░█░░░░░░
    ▓▓▓▓▓▓█░░░░░░░░░░░░░░█░░░░░░
    ▓▓▓▓▓▓█░░░░░░░░░░░░░░█░░░░░░
    ▓▓▓▓▓▓█████░░░░░░░░░██░░░░░░
    █████▀░░░░▀▀████████░░░░░░░░
    ░░░░░░░░░░░░░░░░░░░░░░░░░░░░
    ░▀█▀░░░▀█▀░▀█▀░▀█▀░░▀█▀▀▀▀█░
    ░░█░░░░░█░░░█░▄▀░░░░░█░░░░░░
    ░░█░░░░░█░░░█▀▄░░░░░░█▄▄▄░░░
    ░░█░░░░░█░░░█░░▀▄░░░░█░░░░░░
    ░▄█▄▄█░▄█▄░▄█▄░░▄█▄░▄█▄▄▄▄█░
    ░░░░░░░░░░░░░░░░░░░░░░░░░░░░

    Reply
  21. ░░░░░░░░░░░░░░▄▄▀▀██▀▄▄▒
    ░░░░░░░░░░░░▄▀░▄▀▀░░░▒▒▀▀▄
    ░░░░░░░░░░░▐░▄▀░░░░░░░░░░░█
    ░░░░░░░░░░░▌▌▄▀▄▒░░░░░░░░░░█
    ░░░░░░▄▄▄░▐▄▀▄▀▄▒░░▒▄▄▄▄░▄░░▌
    ░░░░▄▀░▄░▐▐▄▀▄▀▒░░░▀░░░░▀░▄▀▐
    ░░░█░▌░░▌░▐▐▀▄▀▒░░░▒▌██▐░░▌▄▐
    ░░▐░▐░░░▐░▌▐▐░▐░░░░░░▀▀░░░░░▀▌
    ░░▌░▌░░░░▌▐▄▀░▀▄▒░░░░░░░▄▀▄░░▐
    ░▐▐░▌░░░░▐▐░▌▄▀▄▀▄▀▄▀▄▀█▄▄▄░░░▌
    ░▌░░▌▌░░░░▌░▐▄▀▄▀▄▀▄▄▄▄▄▄▄▄▀▄▄▀ Who mentioned gold?!
    ░▐░░▌▌░░░░▐░░▌▀▄▀▄▀█▄█▀█▀█▀
    ░▌▌░▌▌░░░░░▌░▐▀▄▀▄▀▄▀▄█▄█▄
    ▐░░░▐▐░░░░░▐▐░▌▄▀▄▀▄▀▄▀▀▀▄▀█
    ▌▌░░░▌▌░░░░░█▐░▌▀▄▀▄▀▄▀▄▀░▄▐▄▄
    ▌░░░░▐▐░░░░░░▀░▐▀▄▀▄▀▄▀░░░▀▀▄▀▌
    ░░░░░░▌░░░░░▄▀█▄█▄▀▀░▀▄░░░░▀░▀▐
    ░░░░░░▐░░░░░░░▌░░░░░░▐▐░▀▄▀▄▀▄▀
    ░░░░░░░█░░░░░▐░░░▌░░░█▀▀▄▀▄▀▄▀
    ░░░░░░░░▀▄░░▄▄▄▀▐▄▄▀▀
    ░░░░░░░░░░▀▄▄▄▄▄▀I

    Reply
  22. Yes I have tenant that are real pains in the ass

    Reply
  23. Hello My name is Geronimo I am getting my Agents license here in Sacramento, Moved down here for college and to play ball, found my passion in real estate a few months ago. I am ambitious and curious about this game, Can I contact you sometime Mr. Stephan?

    Reply
  24. Graham dropping knowledge as always!

    Reply
  25. Graham, do you regret not putting yourself in a position to go to college when you were high school. Do you view it as a blessing in disguise or a missed opportunity. If you had gone to college what would you have taken and what job would you have today. Thanks

    Reply
  26. Just skipped out on pewdiepie to watch this video.

    Reply
  27. Just skipped out on pewdiepie to watch this video.

    Reply
  28. 24th comment!!!

    Reply
  29. 10/10

    Reply
  30. #1 Rule: Listen to Graham

    Reply
  31. Yo Graham! Useful video, man, as always.

    Reply
  32. Can you explain "buying into equity". Do you mean being to renovate and getting equity?

    Reply
  33. there should be a real estate reward given to the young superstars every year called the  "Grahamy's"

    Reply
  34. Oi mate, just realised you uploaded a video, went in, saw "50 views" and my mind went woop woop

    Reply
  35. I might not get the first comment but i will comment on every video. I always look forward to a video from you Graham. Keep up the good work bro. Notification squad!!!!! And i can wait to join the academy too. Super excited

    Reply
  36. 3rd ;c WHYYYYYYYYYYY GRAHAM, WHY?

    Reply
  37. First

    Reply
  38. LETS GOOOOO!!!! (First)

    Reply

Leave a Reply