How Much I Make From 6 Rental Properties



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Entire video summed up for my real estate investing –

SO FAR, I have INVESTED ROUGHLY $756,000 OUT OF POCKET through down payments and renovations…and that made me a total of $2,158,800 in profit through home appreciation, rent, and mortgage payment. That works out to be just under $270,000 per year, ON AVERAGE, each and every year in profit.

That also works out to be an OVERALL return of 285% for my real estate investments between 2012 and 2020. Obviously, most of that money was invested between 2016 and 2019…but, still, that’s our average.

In terms of cashflow from this…my NET return between rent and mortgage equity is about $9400 per month, so on that $756,000 originally invested…that works out to be a 14.92% annual cash return on my money, NOT accounting for home appreciation.

HOWEVER:

One, real estate is a leveraged investment – meaning, I can BORROW most of the money I need from the bank at a low interest rate, and that will increase my returns. This is something that’s not as COMMON to do with the stock market, and you certainly don’t get the tax benefits of depreciation and a locked in interest rate like you do with owning a house.

Two, real estate is a lot of work – this was not a PASSIVE investment, BY ANY MEANS, until it gets rented out – and even then, it still requires a little work from time to time. These were all deals I spent a considerable amount of time finding and fixing up – so, it’s a little unfair to compare that with stock market investing which is nearly entirely passive if you just buy an index fund and hold it.

Three, I’m comparing this with an SP500 index fund…which, lets be real, is a safe and stable investment long term without much upfront work. But, had I picked individual stocks and gotten lucky….I would have made MORE money during that same timeframe.

So, at the end of the day…based on all of this, YES – picking individual stocks CAN make you more money, OR you could end up losing more money. But, real estate, CAN be a relatively safe and stable return compared to a broad index fund, IF you’re willing to put in the work, and ONLY buy properties with potential for IMMEDIATE upside.

Real estate investing can be absolutely phenomenal, and now that I’ve added up my total returns…it makes me want to continue buying just EVEN MORE REAL ESTATE…and smash 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

*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.

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  1. Can someone explain to me why using a mortgage to buy real estate is better? I was taught that mortgages are pretty dangerous because you could lose all your money, then be struggling to pay off your mortgage, so in my eyes it’s better to just buy your house and own it. But I’d like to now if there are some benefits

  2. Yes, the home value may appreciate, but that appreciation is contingent on the market. Including the appreciation into you ROI estimates (on each property) is a bit foolish, and ultimately misleading. The true value is the income from the investment. You only have the "value" of the home when you actually sell it… Yes, you can use that as leverage, but it is a fluid game… I see the end where you mention the actually ROI, but it is on borrowed money, which is also a bit dangerous (in case of a collapse, inflation, etc.)
    just my two bits.

  3. I have a question:
    So how were you getting the cash to put a downpayment on the houses from? I know you got some cash from renting out those properties but if I'm not wrong I don't think that would have been enough for the downpayments you were putting in for those houses. Thanks

  4. Was there no maintenance, upkeep or repair costs or did I just miss where that is lumped in? Hard to imagine nothing went wrong in 9 years with any of the properties.

  5. You say invest in the S&P and I have done that for years and years but I am very worried at what is coming and I worry about my retirement and would like to diversify with some hard real assets that will be there come what may. I mean as interest rates drop bonds are worthless and eventually the stock market is going to explode as the feds print money like hot cakes.

  6. Thank u for ur tips brother…imma about to do a refi or Heloc pull $600,000 out my Los Angeles home and start my journey…thank you Graham! couldnt have learned this without ur advice

  7. Hi sir im a 16 year old from South Africa i want to get into real estate and i think i know how to but i need a mentor (NOT A INVESTOR) please if you can if you willing take me under your wing

  8. Nice vid, but how did u make money to buy the first house what did u do? How did u have 50k in cash, or am i missing something? I do know a way to make money but I will be mabye 22 or something when i have that money.? And did u do the renovation youreself bec thats my plan, if not how did u pay for people to do it,
    is it youre stoks money lol?

  9. Question, Based off your videos on income/youtube revenue. why not just pay off all your houses cash? You have the cash flow. Why even bother with a mortgage. Maybe this can be a video. Thank you very much! Also, I gave a thumbs up and subscribed.

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