Famous landlord selling all his properties over ‘failed California policies.’ Build wealth without ‘endless bureaucracy’

Famous landlord selling all his properties over ‘failed California policies.’ Build wealth without ‘endless bureaucracy’

Jing Pan

Tue, December 9, 2025 at 8:57 AM EST

7 min read

Graham Stephan talking about — @GrahamStephan

Moneywise and Yahoo Finance LLC may earn commission or revenue through links in the content below.

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’s calling it quits.

In an emotional YouTube video titled “I’m selling everything,” Stephan said he’s unloading all of his LA properties — the very market where he launched his real estate empire (1).

Must Read

Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don't have to deal with tenants or fix freezers. Here's how
Dave Ramsey warns nearly 50% of Americans are making 1 big Social Security mistake — here’s what it is and 3 simple steps to fix it ASAP
Approaching retirement with no savings? Don’t panic, you're not alone. Here are 6 easy ways you can catch up (and fast)

“I have just had enough. I’m tired of dealing with failed California policies, red tape, restrictions and endless bureaucracy to the point where I’m going to start selling off everything that I own there,” he said. “I can’t justify investing any more money into a city that’s obviously headed down the wrong direction.”

For Stephan, the turning point began during COVID-19.

“In 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 — and this lasted for 3 years … Meanwhile, the landlord was still responsible for the mortgage, property taxes, insurance, repairs, upkeep, you name it.”

Stephan said none of his own tenants stopped paying and he had “zero” problems. But the policy still bothered him.

“I just didn’t like that the city was putting the entire financial burden of housing on the landlord,” he said.

The breaking point

In January 2025, Stephan decided to build an ADU — an accessory dwelling unit — 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 “much needed inventory to the housing market.”

Then came what he described as a “nightmare.”

First, getting the permits required to start building took three months and cost more than $4,000.

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.

After two weeks of delays, the inspector arrived and failed the unit over a missing AC drain line. Stephan’s contractor said he could install the drain line in 10–20 minutes. It was Friday at around 4:30 p.m. The inspector simply declined and left.

Story Continues

They fixed it. But the next inspector came with a completely different list of issues the first inspector never mentioned.

They fixed those too. The inspector returned — and said they now needed a sewer line CCTV inspection before he could approve the unit. That cost $600.

The CCTV showed the sewer line functioned properly, but at the connection in the middle of the street between Stephan’s sewer line and the city’s, there was “a little bit of a crack.” Because of that, the inspector said the city wouldn’t sign off. That repair, because it was in the street and tied into the city system, was quoted at $22,000.

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.

He moved forward with the $22,000 repair — only to be told he couldn’t begin until he gave his existing tenants 75 days’ 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’t be affected. He asked for an exemption. None.

Three weeks later, yet another inspector arrived and said the repair couldn’t 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.

To trim those roots, he needed a permit from the Urban Forestry department, which required another 60-day approval process.

“At this point, it feels like I'm getting pranked,” Stephan said. “All 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.”

And he’s done. “This experience has really just been so bad for me that I want to cash out of Los Angeles and just invest my money elsewhere.”

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)

Earn rental income without becoming a landlord

Stephan’s experience highlights a blunt truth: Real estate can be a powerful wealth-building tool — providing rental income and long-term appreciation — but actually building and operating properties can come with major headaches.

The good news? You don’t need to buy a property outright — or deal with endless regulatory red tape — to invest in real estate today. Crowdfunding platforms like Arrived offer an easier way to get exposure to this income-generating asset class.

With Arrived, you can invest in shares of rental homes with as little as $100, all without the hassle of mowing lawns, fixing leaky faucets or handling difficult tenants.

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’d like to purchase and then sit back as you start receiving any positive rental income distributions from your investment.

Invest alongside a $12B AUM real estate owner

Owning a rental property sounds great — until something goes wrong. One bounced check and your rental income disappears.

But institutional investors don’t face that problem. Their portfolios are diversified across hundreds — sometimes thousands — of units.

Now, accredited investors can tap into that same approach through platforms such as Lightstone DIRECT, giving you access to institutional-quality multifamily and industrial real estate — with a minimum investment of $100,000.

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.

Over nearly-four decades, their team has delivered strong, risk-adjusted performance across multiple market cycles — including a 27.5% historical net IRR and a 2.49x historical net equity multiple on realized investments since 2004.

With Lightstone DIRECT, you gain access to that proprietary deal flow.

Here’s the kicker: Lightstone invests at least 20% of its own capital in every deal — roughly four times the industry average. With skin in the game, the firm ensures its interests are directly aligned with those of its investors.

Be the landlord of Walmart

If you’ve ever been a landlord, you know how important it is to have reliable tenants.

How do grocery stores sound?

That’s where First National Realty Partners (FNRP) 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.

With a minimum investment of $50,000, investors can own a share of properties leased by national brands like Whole Foods, Kroger and Walmart, 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.

Simply answer a few questions — including how much you would like to invest — to start browsing their full list of available properties.

Famous landlord selling all his properties over ‘failed California policies.’ Build wealth without ‘endless bureaucracy’