G
raham Stephan, a real estate mogul and YouTube personality, is reevaluating his investment strategy. After amassing a multimillion-dollar fortune through savvy property purchases, he's now questioning the viability of US real estate investments. In a recent video, Stephan revealed that even with his extensive experience, he can no longer make the numbers work at today's prices.

    Stephan's success story began in 2008 when he started buying and renting properties, leveraging cheap debt to fuel his growth. He attributes much of his wealth to this early start, citing the example of a property he purchased in San Bernardino for $59,500 in 2012, which is now worth around $400,000 and generates $1,500 in monthly rental income.

    However, the real estate landscape has shifted dramatically since then. The median US home price surged by nearly 24% from 2020 to 2024, while mortgage rates skyrocketed from 2.7% to 6.95%. These changes have made it increasingly difficult for investors like Stephan to find profitable opportunities.

    "I'm only able to run a profitable rental business because I bought these properties at low prices almost a decade ago," Stephan admitted. "Financed with cheap debt locked in for 30 years. At today's prices, none of this would be feasible." He now believes that passively investing in the stock market is easier and more lucrative than actively managing real estate investments.

    Stephan's decision to pivot away from US real estate reflects a broader trend among young Americans seeking alternative assets to shield their wealth from market volatility. As inflation continues to rise, investors are reassessing their portfolios and exploring new opportunities that can provide stability and growth in uncertain times.