@GrahamStephan <\/p>\n
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YouTube star Graham Stephan grew up in Los Angeles, built his career in real estate there and spent years investing in the city. Now he\u2019s calling it quits.<\/p>\n
In an emotional YouTube video titled \u201cI\u2019m selling everything,\u201d Stephan said he\u2019s unloading all of his LA properties \u2014 the very market where he launched his real estate empire (1).<\/p>\n
\u201cI have just had enough. I\u2019m tired of dealing with failed California policies, red tape, restrictions and endless bureaucracy to the point where I\u2019m going to start selling off everything that I own there,\u201d he said. \u201cI can\u2019t justify investing any more money into a city that\u2019s obviously headed down the wrong direction.\u201d<\/p>\n
For Stephan, the turning point began during COVID-19.<\/p>\n
\u201cIn 2020, everything changed. All of a sudden, Los Angeles enacted an eviction moratorium, meaning a tenant could not be evicted if they failed to pay their rent \u2014 and this lasted for 3 years \u2026 Meanwhile, the landlord was still responsible for the mortgage, property taxes, insurance, repairs, upkeep, you name it.\u201d<\/p>\n
Stephan said none of his own tenants stopped paying and he had \u201czero\u201d problems. But the policy still bothered him.<\/p>\n
\u201cI just didn\u2019t like that the city was putting the entire financial burden of housing on the landlord,\u201d he said.<\/p>\n
In January 2025, Stephan decided to build an ADU \u2014 an accessory dwelling unit \u2014 on one of his properties. His math was simple: invest $220,000 to build a two-bed, one-bath, 700 square foot unit, rent it out at market rates and add \u201cmuch needed inventory to the housing market.\u201d<\/p>\n
Then came what he described as a \u201cnightmare.\u201d<\/p>\n
First, getting the permits required to start building took three months and cost more than $4,000.<\/p>\n
Then, when the ADU was nearly finished in July, he had a tenant lined up to move in Sept. 1. All he needed was a final inspection by the city.<\/p>\n
After two weeks of delays, the inspector arrived and failed the unit over a missing AC drain line. Stephan\u2019s contractor said he could install the drain line in 10\u201320 minutes. It was Friday at around 4:30 p.m. The inspector simply declined and left.<\/p>\n
They fixed it. But the next inspector came with a completely different list of issues the first inspector never mentioned.<\/p>\n
They fixed those too. The inspector returned \u2014 and said they now needed a sewer line CCTV inspection before he could approve the unit. That cost $600.<\/p>\n
The CCTV showed the sewer line functioned properly, but at the connection in the middle of the street between Stephan\u2019s sewer line and the city\u2019s, there was \u201ca little bit of a crack.\u201d Because of that, the inspector said the city wouldn\u2019t sign off. That repair, because it was in the street and tied into the city system, was quoted at $22,000.<\/p>\n
Stephan asked the city for a temporary occupancy allowance while he completed the repair. Silence. A week later, he was told the matter had been sent to Public Works.<\/p>\n
He moved forward with the $22,000 repair \u2014 only to be told he couldn\u2019t begin until he gave his existing tenants 75 days\u2019 notice that their water might be shut off for a few hours in the afternoon while the repair was done. Stephan said those tenants worked during the day and wouldn\u2019t be affected. He asked for an exemption. None.<\/p>\n
Three weeks later, yet another inspector arrived and said the repair couldn\u2019t proceed until Stephan also fixed 22 feet of sidewalk in front of the property that was uneven because the roots of a city-owned tree were intruding.<\/p>\n
To trim those roots, he needed a permit from the Urban Forestry department, which required another 60-day approval process.<\/p>\n
\u201cAt this point, it feels like I’m getting pranked,\u201d Stephan said. \u201cAll of this just feels like a system that’s designed to punish people who are actually willing to invest in the community and make it as difficult as possible for them to try to do anything about it.\u201d<\/p>\n
And he\u2019s done. \u201cThis experience has really just been so bad for me that I want to cash out of Los Angeles and just invest my money elsewhere.\u201d<\/p>\n
Read more: Warren Buffett used 8 solid, repeatable money rules to turn $9,800 into a $150B fortune. Start using them today to get rich (and stay rich)<\/a><\/p>\n Stephan\u2019s experience highlights a blunt truth: Real estate can be a powerful wealth-building tool \u2014 providing rental income and long-term appreciation \u2014 but actually building and operating properties can come with major headaches.<\/p>\n The good news? You don\u2019t need to buy a property outright \u2014 or deal with endless regulatory red tape \u2014 to invest in real estate today. Crowdfunding platforms like Arrived<\/a> offer an easier way to get exposure to this income-generating asset class.<\/p>\n With Arrived, you can invest in shares of rental homes with as little as $100<\/a>, all without the hassle of mowing lawns, fixing leaky faucets or handling difficult tenants.<\/p>\n The process is simple: Browse a curated selection of homes that have been vetted for their appreciation and income potential. Once you find a property you like, select the number of shares you\u2019d like to purchase and then sit back as you start receiving any positive rental income distributions<\/a> from your investment.<\/p>\n Owning a rental property sounds great \u2014 until something goes wrong. One bounced check and your rental income disappears.<\/p>\n But institutional investors don\u2019t face that problem. Their portfolios are diversified across hundreds \u2014 sometimes thousands \u2014 of units.<\/p>\n Now, accredited investors can tap into that same approach through platforms such as Lightstone DIRECT<\/a>, giving you access to institutional-quality multifamily and industrial real estate \u2014 with a minimum investment of $100,000.<\/p>\n Founded in 1986 by David Lichtenstein, Lightstone Group is one of the largest privately held real estate investment firms in the U.S., with more than $12 billion in assets under management.<\/p>\n Over nearly-four decades, their team has delivered strong, risk-adjusted performance across multiple market cycles \u2014 including a 27.5% historical net IRR and a 2.49x historical net equity multiple on realized investments since 2004.<\/p>\n With Lightstone DIRECT, you gain access to that proprietary deal flow<\/a>.<\/p>\n Here\u2019s the kicker: Lightstone invests at least 20% of its own capital in every deal<\/a> \u2014 roughly four times the industry average. With skin in the game, the firm ensures its interests are directly aligned with those of its investors.<\/p>\n If you\u2019ve ever been a landlord, you know how important it is to have reliable tenants.<\/p>\n How do grocery stores sound?<\/p>\n That\u2019s where First National Realty Partners (FNRP)<\/a> comes in. The platform allows accredited investors to diversify their portfolio through grocery-anchored commercial properties without taking on the responsibilities of being a landlord.<\/p>\n With a minimum investment of $50,000, investors can own a share of properties leased by national brands like Whole Foods, Kroger and Walmart<\/a>, which provide essential goods to their communities. Thanks to Triple Net (NNN) leases, accredited investors are able to invest in these properties without worrying about tenant costs cutting into their potential returns.<\/p>\n Simply answer a few questions \u2014 including how much you would like to invest \u2014 to start browsing their full list of available properties<\/a>.<\/p>\n We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.<\/p>\n