Graham Stephan’s Top Real Estate Tips
If you're a fan of Graham Stephan, here are some of his top real estate tips.
If you wanting to be successful in anything that you do, you should always seek advice from those who know their stuff. And this is no different for those wanting to invest in real estate. Investing in real estate can be tricky, and if you are able to get some advice and tips from someone who has found great success, then this is going to help. One person who offers such advice is Graham Stephan, and his top real estate tips can be found all over the internet and YouTube. So, who exactly is Graham Stephan and what are his top real estate tips?
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Who is Graham Stephan and what is he known for?
If you are looking for a role model in the real estate industry, then look no further than Graham Stephan. Graham has found great success with real estate investing, having obtained his real estate license at the tender age of 18. He currently works for the Oppenheim Group Real Estate, and in his spare time likes to write articles and make YouTube videos providing tips to help others make it big in real estate.
Graham Stephan is best known for his star clientele. He has sold million-dollar properties to some big names. Orlando Bloom, Chloe Moretz and Suki Waterhouse to name a few. Aside from selling real estate, Graham is a savvy investor, currently owning five rental properties through the Los Angeles area. He is known for his podcasts and YouTube videos providing tips to becoming a millionaire. One reason why Graham’s YouTube channel is so popular is that he shows how he managed to be successful in real estate in Los Angeles, which is arguably one of the hardest real estate markets to get into.
Tip 1. Start with small, profitable investments
In a Bigger Pockets podcast, Graham Stephan talks about the time when he was a real estate agent and would notice his wealthy clientele purchasing cheap $100,000 homes and doing small renovations to them. They would then earn a surprisingly large rental income from them. And this taught him his most important real estate lesson to date. Start investing with small, profitable investments. The lesson is that you do not need to purchase a multimillion-dollar home to make money in real estate. Smaller, more affordable properties can be just as profitable. And are a really great way to build your portfolio when you are just starting out.
This is exactly how Graham Stephan started his investment journey and is what he credits to his success. If you are smart about the properties you purchase and look for the hidden value, then you can end up making a lot of money. And this is what real estate investing is all about. You do not need to wait until you have hundreds of thousands of dollars in the bank to get started in investing. Look for smaller properties that you can afford, that have the potential to bring a great return.
Tip 2. Keep an eye on market values and purchase undervalue
If you want to make it big in real estate and see some real profit, then one method that Graham Stephan has found success in is keeping a keen eye on market values. Graham would notice that a particular area would drop in value and suddenly houses were being sold greatly undervalued. So, he would then snag an exceptionally good deal at a low interest rate, and spend some time and money fixing it up waiting for the market to improve. Then when the market does improve, he was the owner of a high value property that he paid hardly anything for. And this happens more often that you would think.
If you have an understanding of the value of certain neighborhoods, then you will be able to see when properties become undervalued. This is the best time to buy as long as you can be patient and wait for things to improve.
Tip 3. Look for misrepresented properties
One way that you can get yourself a particularly good deal on real estate purchases is to keep an eye out for misrepresented properties. An example of a misrepresented property would be one that is listed as being a one bedroom but is in fact a two bedroom. It will be priced as being a single bedroom but has the potential to be rented out as a two bedroom. Graham Stephan mentions in his Bigger Pockets podcast that he has bought a few properties this way. By noticing that the actual property was much nicer than it was described.
Often one-bedroom apartments will be marketed as a studio, so investors will ignore them (as there is little value in purchasing and renting out studios). This can be a simple oversight by the real estate agent. Or it could be that it is technically a studio that can be easily converted into a one bedroom. Either way if you can pay studio price for a one bedroom, you will be immediately ahead. This tip does require some patience and there are no guarantees that a misrepresented property will be in your favor. But there is definitely the potential to snag a great deal if you know what to look for.
You may notice a trend in the tips offered by Graham Stephan – that he uses the real estate market to your advantage. And you can too, if you have the skills and patience that he has to keep an eye on the market and pounce when the time is right. Being successful in real estate is a little bit luck, and a little bit skill. However, with some savvy skills you will be able to use luck to your advantage. Graham Stephan has found great success in the real estate world using these strategies, and there is no reason why you cannot have the same successes.
Charles is the founder of infoSpike.com. His real estate investing experience started in 2004 and he is currently focused on rental property projects. He enjoys learning about real estate investing, personal finance, and marketing. Read more about Charles here.