The Top 6 Reasons why I Invest in Real Estate!

I know I’m super biased towards anything real estate related…and I do also invest in stocks, namely Vanguard Index funds….but real estate has always been my priority. These are my top 6 reasons WHY I invest the majority of my time and money in real estate. Forewarning: There’s no “right” or “wrong” investment…some people prefer stocks, some real estate, some “other,” there’s no best or worst here. But this is why I like real estate! Add me on snapchat/instagram: GPStephan

1. Leverage. This is probably one of the biggest reasons people like investing in real estate - you can borrow the majority of the money to fund your own deal. The interest can also be a tax deduction.

2. You have total control over the investment. Unlike stocks, in Real Estate you control the tenant you pick, the upgrades you do, if you want to add square footage and increase the home’s value. Everything is totally up to you, and it’s about finding the right balance between which upgrades yield the highest returns.

3. Cash flow. This is why I favor Real estate over dividend stocks, for example. The cash flow from real estate can be higher, long term, than from stocks. Additionally, the cash flow from real estate can be depreciated on paper to show a net loss on a tax return, while still making money. This is unlike dividend income which is taxed as ordinary income, unless held in a tax-advantaged account like a Roth / Traditional IRA, 401K, etc.

4. Potentially for the property to increase in value. While I don’t expect this to happen, typically homes increase in value on par with inflation. I do not like speculating real estate markets or riding a wave of appreciation to riches, BUT, if it happens…great. If not, that’s fine because you shouldn’t base your entire investment around a potentially increasing real estate market.

5. Tax write offs. Everything in real estate is a tax write off. You can write off the interest you pay on a mortgage, the expenses, the depcretion of the property, cost segregation analysis…the sky is the limit.

6. It’s not a full time job. You can invest in real estate on the side while keeping your normal day job. While it does require some up front work, once setup, real estate can be fairly passive.

That’s it! I hope you enjoy, I’ll have many more real estate videos to come in the future.

Suggested reading:

[DavidMarinoJr]

i get notified every time you post a video, and it's basically like i'm being notified to learn some useful shit. thanks for that graham

[TheBrokencyde]

Man, thank you so much for your videos! I'm currently in college, but after I get out and start making a decent income, I plan to invest in real estate.

[alisaez]

Keep these videos coming, they are really interesting ! :)

[maximtheconqueror]

Lord Graham you are and will always be my main source of entertainment

[kingviper]

I'm only 16 years old and in high school, I was unsure of what I was going to do after school but you have definitely changed that, I want to get into real estate when I graduate and follow what you did you're a big inspiration to me. P.S love your videos

[Brandond]

Please do these Video Ideas:
- Pros and Con of having real estate license?
- Transactions and paperwork?
- How much knowledge and work is needed in real estate?
- Entrepreneur in real estate investing and/or buying and selling?

[crypto.focused]

Thanks for the awesome video Graham! You and Grant are the reason why I will invest in real estate as soon as I have enough cash to get started. Here in Romania things are a bit different though and you need between 30%-50% down payment and the interest rates are much higher (at least 10-12%) but I REALLY hope I'll be able to do this since I'm very passionate about it. Keep it up!!

[sethharvell]

Another amazing video Graham, as always. Hell yes!

[QuintilusCastle]

The last 3 Real Estate videos have been super solid and informative. I'm looking to get started similar to how you did so these help out a lot. This one's another solid banger! Keep em coming, G!

[HonestFinance]

I’m featuring you on my channel. You’re just too honest to not get noticed. Great job. Crazy that it’s only been a year

[woriwins]

I appreciate your videos. I get the same way nerding out explaining things. I love your candor about not having anything to sell me. Very refreshing.

[ThisWorldIsTodayOver]

damn i have been watching you since you had 500 Subs. you deserve everyone of these subs.

[Alan-hwly]

Would you be able to possibly set up a event somewhere in California where your subscribers come and hear you speak, ? I feel like you're such a great inspiration to many people including myself.

[yowdeli]

i subscribed earlier this year and i definitely appreciate the gradual increase in content that you provide for us. keep up the good work.

[widewatching]

There is so much value in this channel!!

Stay Hungry Graham!

[jordim]

I hope you never stop doing these and at some point I'll have an actual conversation with you. This is REALLY interesting and I know it's where I'll be ending up.

[TheMonkWay]

Real Estate is definitely the way to go if you can afford it!

[KingOfHearts]

Thanks for all of the real estate information. Your passion for real estate and wealth building inspires young entrepreneurs to stick to the basics. It's also cool that you aren't trying to sell anything 😂😂

[SubZeroEric]

Graham: I appreciate your videos, you take a practical, "no-bullshit" approach to real estate investing. Thank you!

[nathangodson]

Nice videos Graham. They really speak to me when i watch them. I feel we are so like minded it's crazy. I've always been super into investing and appreciate how you lay out all the facts. Keep up the good work. I'm 24 and looking forward to investing in real estate.