My response to Kevin O’Leary | Shark Tank

what's up guys it's Graham here so let me just start off by saying this I've been watching the show shark tank back when it first came out in 2009 and for anyone who's not aware of the show is it's basically where entrepreneurs can pitch their ideas to a group of investors known as sharks and then we get to be a fly on the wall to look into some really bad business ideas some really genius inventions and the investor Kevin O'Leary always asking for an overly ambitious royalty deal that sends people into tears anyway I've been a big fan of the show and I found it insanely inspirational to see and hear about other people's businesses see how it works behind the scenes and hear the investors criticism that people always think their business is worth way more than it actually is and in the back of my mind I always really looked up to the Sharks in the show to me they were really like the pinnacle of success and what you could achieve with a good idea and hard work so when I found out that kevin O'Leary was gonna be reacting to my episode of millennial money I knew I had to react to Kevin O'Leary reacting to me because no joke he's someone I absolutely look up to and on the show he's kind of known for being that blunt mean guy kind of like the Simon Cowell of business so I knew this is going to be a really interesting episode not to mention and he's never gonna remember this but six years ago I ran into him at LAX Airport and I walked up to him and I gathered up the courage to ask him for a selfie and he was nice enough to say yes and here's that picture taken all the way back in 2014 so now that he's watched my video I want to respond to him and address a few the comments he made about me so go ahead get ready for some good old-fashioned finance youtuber drama beginning right now hi there mr. wonderful here aka Kevin O'Leary and today I'm gonna have a look at a video I've never watched called millennial money living on 1.6 million a year in Los Angeles see immediately right off the bat he forgot to say wait for it millennial money you always need that wait for it in there and for that reason I'm out just kidding I've always wanted to say that and I finally said that before you start smash the like button like I'm doing here that helps the algorithm actually Kevin the new thing is to ask people to destroy and obliterate the like button the truth is the like button built up an immunity from so many times of being repeatedly smashed that now it just takes a little bit more work to make it turn blue and that's why now we have to practically destroy our phone and computer screens to hit the like button and only and once it turns blue may we proceed with the video so I'm a full-time real estate agent real estate investor and youtuber you know I just started watching I thought this guy's gonna be a dick but now as I'm just seeing the first few frames sounds like he's for real you know what to be honest I totally understand that I think it's very easy for people to see a few my absolutely ridiculous thumbnail pictures that look as though I've experienced a root canal or in the middle of suffering from a migraine combined with over-the-top titles with the word millionaire written in them with my monthly income plastered in big bold font and it's really easy for people to miss categorize me rightfully so however in my defense I really try to back up the type of content that I make in such a way that's educational informational and helpful and the reality is that many times in order to stand out or incentivize people to click on the video to begin with you need to go to such extremes and I try to cater my content around what people want to see more on so I'm totally okay being a little bit shocking for people who only see a title and a thumbnail as long as that means they actually click on the video enjoy it and then stick around for the long run my mortgage is just over $2,800 a month the market value of the other unit next to me is about $2,500 a month then between the equity I get and the tax write-offs from using the garage as my office it basically works out to be a free place for me to live okay that's pretty shrewd this guy knows what he's doing he's basically about 2 properties and he's using the tax code fairly and legally to try and live in his place for free because he's profiting off the amount he's getting on rent after he services the mortgage good idea no it's funny quickly off topic here but I have a feeling he's only wearing a suit top and then down below he's probably wearing shorts and flip-flops how do I know this well the other week he posted a video about his morning routine and you know what let me just I'll have you watch this yeah I got short pants on and a suit top why cuz I'm about to Broadcasting Network they're not gonna see it I'm wearing flip-flops you know what though it's totally ok I do the same thing I've worn the same pair of sweatpants for like a week now here here's here's proof that's just what happens when you work from home and don't leave the house and have insanely comfy sweatpants I think it's absolutely ridiculous the mark-up of coffee at Starbucks and coffee bean and a lot of those places out there so I just make it at home for 20 cents I love this guy this is exactly what I'm talking about he's not an idiot he knows exactly what he's spending his money on he's got it doubt he's very very conscious of not wasting a single cent nothing wrong with that that's very smart Coffee is a big money waster you get really hosed when you buy it see that's been my philosophy for as long as I could remember and here's the thing the truth is going and buying Starbucks every now and then is not going to make you go broke but what I have noticed is that overwhelmingly when you don't budget or pay attention to your spending in one area it tends to spill over into everything else as well if you don't pay attention to all the times you go and buy a Starbucks you're gonna be less likely to pay attention to getting a good deal and your rent you're gonna be less likely to pay attention to negotiating your insurance cost we're trying to maximize the value of a dollar I truly believe that if you're prudent and you track the small day-to-day expenses like going and buying a cup of coffee that is going to trickle over into other more expensive things as well and the net benefit is going to be so much more than just you going and buying a four dollar cup of smash the like button Frappuccino also designer clothing don't see the point in going in 2,700 ollars unlike a Gucci shoes now the one thing I would disagree with them on is you know buying really cheap clothes I'd rather say look that's okay for jeans and a t-shirt maybe but every once in a while by a spectacular piece it's gonna last your lifetime I like to buy great suits I want to look good but I don't waste money all my suits are the same I just have 25 of them they last forever okay I'll admit I know is a good point about buying high-quality clothing for the appropriate occasions he's a suit and tie guy and I agree that a good-quality suit could easily last you over a decade versus my $3 H&M shirt where the caller tends to curl a little bit after the first wash all right you got it oh there's more it's Graham as a Realtor that it's the same fit no I'm so glad they decided to keep that part in there I mean that would be hilarious if just that was the end of the video it's just me how much money I make and then how I refuse to spend any of it on coffee and designer clothing well I mean actually that's not too far off from the truth anyway I guess that would actually be pretty accurate the first property I bought was when I was 21 years old it was a short sale for 59507 adeno it was a foreclosure that was being sold by the bank so he took advantage of dislocated market mm in 2008 some part of 2009 housing had been crushed he took advantage of that he bought it out of foreclosure from the bank obviously was a great trade you can't do it all the time but he was able to do it because he'd saved his money this is something I wholeheartedly agree with and even though we don't have a lot of these types of real estate deals today the only reason how I was able to do this in the first place is because I prioritize saving as much money as I could even now I still keep the exact same savings habits as I've had back then and I'm sure whenever the next big opportunity comes up I'll have the money ready to redeploy back into those investments nothing wrong with doing what you're great at that's clearly what he's doing here Graham is focused on real estate bringing in about 15,000 a month but here's what you should be doing while this is happening because real estate is just one sector of the economy and goes through cycles too if you're investing diversify out of real estate but it's very prudent sometimes to put something aside and just buy the overall market and index or something so you get diversification of your network all right you know I think he wins and I can't disagree with that I think he's right this is something I've slowly started to realize as they've begun making and investing a lot more money is that after a certain point it becomes less important to take a risk for a higher return and more important to maintain your investment and have stability and this is something that I have learned over time I think in the beginning for anyone who's looking to grow their wealth as fast as possible real estate is a phenomenal way to go but once you've built that up everything after that is about maintaining that growth and not necessarily trying to maximize it and that one for me has been a big realization so yes I've already started taking his advice and I've been diverting a lot of money lately back into index funds and my entire investment strategy right now is just by consistently and hold that's it so I started making more videos and once it started doing about two videos a week it's just the growth really just exploded it seemed like so he's really figured out how the algorithms work and how to produce content that people want to generally check in on every week and we have a million subs you basically have a business you're you're a broadcaster that's what you're doing so he really has figured that model out kids a hustler for anyone who doesn't know this if you couldn't already tell I am obsessed with making YouTube videos but also the YouTube algorithm for me is like this never-ending game of chess there is very much a strategy to try to figure out what people want to see topics people are gonna click on what thumbnail is gonna get the most attention how to title the video in such a way that piques people's curiosity to want to click on it and then you got to figure out how to keep people entertained the entire time and how long you need to make the video and all of this is constantly changing I found that now what works best on YouTube did not work three years ago when I started making videos and the entire algorithm is constantly changing and adapting so I dedicate hours every day trying to figure this out and how it works and even though I'm far away from figuring out all the tricks it's been an insanely fun challenge each and every day so right now probably like 85 percent of my income is affiliated with YouTube in some way or another and then the remaining 15% is through real estate sales or real estate investments his monthly income is 150 grand you know from before that he told you fifteen thousand of that came from his rental income this kid is a youtuber he's making the majorities of income of his income running a broadcasting facility that's the way you should look at it that's a big number for YouTube you can only do that if you have a million plus subs and he does that's extraordinary so this is something I absolutely want to address because yes at this point I make the majority of my money through YouTube this began to happen about eighteen months ago where all of a sudden I started making more money on YouTube than I did from working as a real estate agent and owning rental properties before that point I was spending about 80 percent of my time working in real estate and then the remaining 20% of my time I spent making YouTube videos very late at night what's the 20% of time I spent making YouTube videos began making more money than the $500,000 a year gross commissions I was making as a real estate agent where I spent eighty percent of my time I decided to take the risk and flip those around and instead spend 80 percent of my time making YouTube videos and 20 percent of my time in real estate and I got to say almost immediately once I did that the channel took off I was able to dedicate more time and focus towards making YouTube videos I was able to go and start up the second channel I was able to talk about more in-depth topics I was able to feel a sense of purpose and fulfillment that was so much more than just myself and that just happened to make more money as a by-product 18 months ago I think it would have been short-sighted and irresponsible not to take the opportunity to spend 80% of my time on YouTube but again I would not have been able to take that jump having not saved and invested the majority of my income prior to then by the time I focused on YouTube I was already in a position where the rental properties were covering all of my expenses I knew in the worst case scenario if YouTube didn't pan out and I didn't earn a single dollar from anything ever again I was going to be okay total cost of the car with everything all out the door with taxes and like all of the options everything was like 44 grand so I ended up making money from getting the car I actually don't think it cars that necessary anymore cars also have insurance costs to them you have to store them I'm not a big fan of owning anything anymore when it comes to transportation but he's done it well nothing wrong with that and he enjoys driving it now this is the part I found a bit confusing because I've seen Kevin's videos in the past and it seems like any time he goes somewhere he's going and ordering an uber Lux SUV and those are not cheap those could be like 40 to 60 dollars depending on where you're going I think in certain cities we're walking or public transportation isn't that good I think a car is really just a necessity so if you're gonna have to spend money in a car you may as well do it in such a way that doesn't cost you a lot of money and if you can't afford a Tesla or use the business tax write-offs I highly recommend instead you go and buy a car that's 5 to 7 years old that's already seen the bulk of its depreciation and then just drive it until it stops running so I have an amazing girlfriend and her and I share a lot of the same values in terms of saving and spending money it's always great to have a partner that shares your economic values you really don't want somebody that spends their brains out that's why he's so happy she's a wonderful gal looks like but she also is in sync with the way he spends money very smart oh yeah I'm sure she's gonna love that frame that they just paused us on but yeah I think financial compatibility is something that is so important and it's vital to find someone who shares those same qualities he's right that's why I'm so happy sounds weird too but I do end up rewarding myself every now and then at McDonald's from the dollar menu not a chance in hell I'd eat that look the guy's in shape so maybe indulging once in a while for some reason McDonald's is just like this really good splurge I even tried this thing on the dollar menu when you take the McChicken and the cheeseburger and then combine them into one you got to try this thing it's really good so in terms of net worth goals I really don't have any I would like to hit 10 million I feel like that would be just a decent number 10 million is a good number you know they say it's almost impossible to make the first million he's already done that five million is next to impossible ten million gets easy you're actually once you have five million you're investing in other things and it helps you grow your net worth this is something I've noticed it's actually very true it took me about seven years of saving and investing to hit a 1 million dollar net worth from there it only took me 18 more months after that then hit a 2 million dollar net worth so I was able to do in 18 months what previously took me seven years which is absolutely incredible after that it only took a year to go from 2 million to 3 million dollars and two years later I was able to nearly double that to six million dollars sure these last few years had a lot less to do with my investments and a lot more to do with a high surge of income but still it goes to show you that once you get the ball rolling it becomes that much easier for your work and your investments to do a lot of the heavy lifting for you and from there with persistence and consistency the sky is the limit you don't need to be as Extreme as I am you don't need to skimp on every purchase at all you don't need to work 12 hours a day but you do need to think outside the box yes you do you have to do all of that stuff don't listen to him listen to me yeah you got a skimp yeah you got to work 15 hours a day that's what it takes it's very competitive out there I think it really just comes down to what you want I would argue that not everyone is as Extreme as I am and not everyone thoroughly enjoys saving and investing money I think there's no sense in being unhappy or feeling deprived it's just for the sake of saving more money so if you want those things just understand what you're giving up in return to obtain them well let me rate Graham on a scale of one to ten one being a horrible saver and ten being just brilliant I'm gonna give him an eight point two three four he's got a little bit more to go in terms of diversification he wasn't at ten because he didn't diversify enough but he's really good at staying focused on saving and making money I like that eight point two three four I'll take it it is mentally hard for me to go and invest in something that I know won't give me as much profit as if I went to go and hunt out a real estate deal myself personally but I also agree there's a benefit to safety diversification and stability so I think it's good feedback and I acknowledge that and Kevin if you're watching this if you're interested in coming on the channel and doing the collaboration I would be more than happy I would love that so I slid in your DMS I sent you a DM on Instagram so if you're interested just let me know and if you are I could teach you how to obliterate and destroy the like button for the YouTube algorithm can't do that then you're dead to me I've always wanted to say that - I'm just kidding yeah so with that said you guys thank you so much for watching I really appreciate it as always if you guys enjoy videos like this make sure to subscribe and hit the notification bell also feel free to add me on Instagram I posted pretty much daily so if you want to be a part of it there feel free to add me there that's on my second channel the Graham Stefan show I post there every single day I'm not posting here so if you want to see a brand new video from me every single day make sure to add yourself to that and lastly if you guys want to free stocks use the link down below in the description and weeble is going to be giving you 2 free stocks when you sign up on the platform and deposit $100 with one of those stocks potentially being valued up to $1400 so again you want to free stocks use that link down below in the description thank you guys so much for watching and until next time

Channel: Graham Stephan

Views: 1,190,801

Rating: 4.9094524 out of 5

Keywords: millennial money, cnbc, cnbc make it, graham stephan, kevin oleary, shark tank, how to invest, investing for beginners, how to invest in stocks, stock market investing, real estate investing, stock market investing for beginners, how to be a millionaire, how to be a millionaire in 3 years, how to make passive income, passive income ideas, how to build wealth, credit score, credit score explained, best credit cards, credit cards for beginners, how to make money, ral estate

Id: abXmK91fLtU

Length: 16min 16sec (976 seconds)

Published: Fri May 22 2020