The ULTIMATE Beginner's Guide to Investing in Real Estate Step-By-Step

Here's a Real Estate beginner tutorial where I can really cover the blueprints and outline the basics of what’s needed in order to prepare for, and actually invest in real estate. Enjoy! Snapchat/Instagram: GPStephan

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Step 1: BUILD YOUR CREDIT. This is one of those steps that you can can do NOW. If you’re watching this and you don’t already have a credit card, when you’re done with this video, watch this:

Step 2: SAVE YOUR MONEY. The reality is that you can’t invest in real estate with no money down, no income, no credit…it just doesn’t happen. So this means that in order to save money, not only will you be required to live somewhat frugally so you don’t spend everything you make, but you will need to MAKE MONEY. I know this sounds common sense, but it’s at least every day that I get people asking how they can buy real estate without having any money…it doesn’t happen.

Step 3: SHOW YOUR INCOME on a tax return. his means that you can’t just have one great month on Shopify and then expect to use that as a down payment…lenders want to see consistent, stable income before they give you a loan.

Step 4: Get prequalified. It’s as easy as going to a few major banks, having them run your credit, giving them your tax returns, bank statements, and some other minor information…and they will give you a pre-approval amount based off those numbers. You can then take that pre-approval and shop that around a few other banks, getting them to match or beat those terms.

Step 5: LOOK AT EVERYTHING IN THE MARKET YOU WANT TO BUY IN. Do your research. Find out which areas you feel are undervalued and where you feel people will be moving to. Drive around on weekends through every street and neighborhood. See every open house on a Saturday and Sunday within your price range, plus maybe a few hundred grand so you know what’s out there. The more you see, the better you’ll be able to recognize a good deal when it comes up.

Step 6: Make offers on places you feel are a good deal. Know your price, know what it’s worth, and have patience. It’s more important to get the right property at a fair price than wait years trying to find the unicorn of a deal.

Step 7: Do your inspections. I usually tell my clients to do all the inspections they can, and usually it’ll be a break even when you re-negotiate a credit with the seller. I also take it a step further and also walk two contractors through the unit who will give me a free bid on how much things cost to repair. This way, I know everything that’s “wrong” from a cosmetic standpoint and exactly how much it’ll cost to fix.

Step 8: Close on the property. In the interim here, you’ll be speaking with your lender, getting in all the information they request from you, do an appraisal on the property to make sure it’s worth what you’re paying, and you close. Once the property is yours, this is where the fun begins!

Step 9: Do minor renovations. Most people ask “where do you find your contractors?!” And my answer to this has always been Word of mouth, and yelp. Also make sure to get various bids to understand the costs associated with what you want to do, never just hire the first person.

Step 10: Rent it out. Here’s how I post my ads on craigslist:

Suggested reading:

Favorite Credit Cards:

[thepap]

Watched this video a year ago and buying my first house now

[InvestingHustler]

I bought my first house at 21. It’s near a university so I rent out bedrooms there. I turned my Dining room and living room into a bedroom and added 3 bedrooms in the basement turning laundry room into a bedroom as well. Now I rent all the rooms for 4-500 each a month. Soo all my tenants pay off my mortgage utilities and make a little profit on top 👌 just some proof that this actually works 🙌

[bwwsfrt]

The best investment one can do right now is investing on real estate though stocks are good but ever since I swapped to real estate, I've seen so much difference.

[andrewcleverly]

The amount of time we spend believing we can't is more than enough time to learn how you can.

-my Brain.

[frenchyalicea]

I bought my 1st home at 21 for 57k sold for 187k, 2nd home 107k and sold for 250k, 3rd 300k and sold for 589k and buyers paid all closing costs expenses etc...it is possible and very lucrative as long as all steps and details are followed.

[instinctively_awesome]

How to outperform the stock market; read thousands of annual reports, learn about margin of safety, buy undervalued stocks, insider information and seek professional help.

[vinhecktor]

SUCCESS IS NOT FINAL; FAILURE IS NOT FATAL: IT IS THE COURAGE TO CONTINUE THAT COUNTS.
BUSINESS OPPORTUNITIES ARE LIKE BUSES, THERE'S ALWAYS ANOTHER ONE COMING

[anastasiazoya]

The U.S. is short 5.24 million homes, but there
are 5.9 million commercial buildings,
containing a total of 97 billion square feet.
Many business owners are wondering if
living in their office space is a viable option.

[RB-pfht]

Was listening to this in 2020 after wasting over $50k in 'pay-to-win' online game and slapped myself in the face. Three years later I built myself a property portfolio (inspired by Graham) and became a millionaire. Watching this now, I am in a bit of tears. Thank you Graham for sharing your story, it sure inspires many people just like me :)

[jasperslims]

INVESTING MAKE UP THE TOP-NOTCH
HEMISPHERE OF WEALTH, THAT IS MORE
REASON ONE SHOULD SAVE AND INVEST TO
SECURE MORE PROFIT AND ENSURE SUCCESS

[claradidi]

Nobody can become financially successful over night. They put in background work but we tend to see the finished part. Fear is a dangerous component, hindering us from taking bold steps we need in other to reach our goals.

[stevencunningham]

I’m 18 and I’ve been watching these videos for like 2 months straight and holy cow I’m so excited to get this going

[RichardBayer]

More immediately than a collapse in the stock or real estate markets, inflation directly impacts people's standard of life. It is hardly surprising that the present market attitude is so negative. If we are to live in this economy, we are in dire need of assistance. ETF and stock markets are still unpredictably volatile, just like the housing market. My $370, 000 portfolio has been reduced to rubble.

[zachhomolka]

During step 10, one thing I would add is to spend time screening tenants! Make a google poll with some basic questions (estimated credit score, criminal record, etc) to keep you from giving 15 house tours. Being upfront about requiring background checks and credit checks has weeded out most unsuitable tenants in my experience

[constanciacollene]

A First-Time Homebuyer Must Earn from other Source before ever thinking of buying a Home. I am earning more this year because I have been investing while working at the same time. I invested through TERESA JENSEN WHITE, same woman that an anchor kept mentioning on CNBC, and made multiple of my start up capital within three months . She lives here in the USA and she is licensed

[cassiejacobs]

When you invest, you're buying a day you don't have to work.

[Shawk]

Graham
Great job squeezing years' worth of real world knowledge into a 20 minute video. Highly valuable but free service. Thanks a bundle.

[financialwolf]

I’m 15 right now, but after high school I plan on starting a business as a real estate agent and I also want to invest in rentals properties. I am currently saving and investing money to purchase my first rental property at 18. Thank you, your videos have helped me understand real estate much better.

[cabragooncabulous]

Perfect advice. Honest straight up TRUTH. As a part time realtor, single dad, home owner and blue collar worker. You have told me more significant info. (which I can confirm being in the biz.) waiting a bit longer for the next investment. Thanks for grounding the smart ones.

[de]

Graham you're one of the only people on YouTube giving good, realistic advice!