Self-Made Millionaire: How Graham Stephan Did It by Age 26 — and How You Can Too
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Martin Dasko
5 min read
Numerous videos on becoming a millionaire are vague and filled with empty motivational quotes. You feel more confused after consuming the content because you’re unsure what steps to take next. Luckily, Graham Stephan, a popular personal finance YouTuber, released a video sharing how he became a self-made millionaire by 26.
Stephan opened up the video by sharing the truth about becoming self-made. You can become rich without connections and don’t have to come from a family with money to get started.
Stephan started working at a marine aquarium wholesaler around 13 years old. He was paid $1 for every picture he helped take for the website and made $20 to $35 per hour. At this point, he started to dislike schooling. He didn’t see the point of studying history or science because he wanted to focus on making money. Stephan also wanted to focus on making money instead of studying since he didn’t see the point of taking time away from projects and bringing in money.
When he was 16, the business he worked for closed, so he turned his energy towards joining a band where he was a drummer. Graham dreamed of being a famous rockstar until he almost completed high school when he realized it was time to give up on the band. This left him confused about his next direction in life.
Getting Into Real Estate
When Stephan completed high school, he found a data entry job in investment banking because he knew he enjoyed making money and investing. He quickly learned that this job wasn’t for him, so he turned his focus to earning his real estate license to sell some properties. As he worked towards his license, he met other disenchanted agents who tried to discourage him from getting into the field. Fortunately, he met one agent at an open house who encouraged him to continue. This agent offered Stephan the opportunity to work under him in exchange for a 50-50 split.
Stephan invested the $5,000 he saved in high school to get started in this new industry. Stephan noticed many agents weren’t into the lease listing since the profit was only $500 per deal. Stephan observed that the business had gaps in the quality of the photography. So, he offered his photography services for the right to represent the tenant.
This new venture brought in $35,000 within nine months. He ended up finding a buyer who gave him the opportunity to make his first home sale. He earned a commission on a $3.6 million deal that was more money than he had ever made. He decided that he definitely wouldn’t go to college at this point.
He purchased his dream car with this commission because he felt he had made it. This was enough evidence to drown out the naysayers and everyone who doubted him. The sales kept on rolling in.
Since his parents filed for bankruptcy when he was 16, he knew he had to embrace frugality no matter how large his commissions were. As he saved up, he looked for ways to get to the next level.
What helped Stephan get to the next level in real estate?
He started buying investment properties.
His lease clients contacted him to purchase real estate.
In 2011, Stephan discovered that real estate prices were pretty cheap in the areas he wanted to invest in. Since he had about $200,000 saved at this point and wanted to create a more consistent income, he started investing in rental properties. These San Bernadio properties were discounted from over $250,000 to around $60,000.
The first rental property was purchased in cash for $60,000. Stephan purchased three rental properties, which all started to cover his living expenses.
Then the lease clients from 2009 were ready to purchase homes a few years later. The clients also referred other clients. This led to an increase in income and opportunities in real estate.
Stephan continued to invest his money into retirement accounts as his real estate commissions grew. He focused on saving as much of this money as he could. He started purchasing properties to renovate. By 26, he was worth over a million dollars. Stephan focused on his real estate income, which he funneled into investment properties to become a self-made millionaire.
Closing Thoughts.
Stephan reminds us that everything happens for a reason. He pivoted numerous times as he tried to find what he wanted to do with his life until he ended up with a successful career in real estate. Stephan looked for opportunities in the real estate market as a professional and investor. These risks led to him becoming a self-made millionaire eventually. If you want to become a self-made millionaire, you can follow these steps. Look for investment properties as you focus on increasing your income to have more money to invest.
