Financial Advisors React to the Worst Housing Advice on TikTok!

[@matthewsawczyn6592]

These TikToks inspired me to cash out my 401k, max out twelve credits cards, and do x100 house flips... just this month alone! 😤💪

[@gjchawks17]

Wow! How are you enjoying your newfound early retirement?

[@reverselee3218]

Me too, except I put 10 more credit cards in my kid's name flipped 150 homes using their social security numbers 💪💪👌👌

[@stephaniegrehan9084]

And what colour is your Lamborghini?

[@Executor009]

Lol

[@mandizmouth2952]

😂😂

[@jbgrifter23]

I didn't hear the guys mention it, but I'm 99.999% sure the "max out your credit cards on real estate" guy was standing on a stage in an empty theater that he probably rented to make that video.

[@gjchawks17]

I was thinking the exact same thing. No one is there and it’s faked. Just like those “podcast” clips that are just a person (or people) talking for 20 seconds and there’s no full length episode. Legit they just filmed like there was

[@MikeN5]

That was Ryan Pineda he actually has a really big following on social media so i doubt it was empty. Seems like he has made it big but he definitely took some big risks in his early days

[@samtrejojr5057]

@@MikeN5Na I just checked it out and it looks like he bought those followers, or at least faked them. Guy has 420k followers but less than 100 likes on his pictures

[@MikeN5]

@@samtrejojr5057 having watched hime for years, I doubt that. Maybe they aren't super active followers and he might not be as popular right now as he was when the real estate wholesaling niche was exploding, but he's not fake

[@gamesguy]

It's BS. I did a lot of flips and when you max out your credit lines like this very quickly the lenders start dropping your credit limit or even closing accounts. You'll have a very hard time getting even hard money lenders to give you a loan as well.

[@gojl5567]

"I have a lot of money in my 401k" and "I have 50k in my 401k" are not the same thing I'd love to see you react to Shelby Church's video on the cost/profit on her AirBnb

[@Draggonny]

I wonder what their salary is. I could certainly make 50k last a couple of years in retirement but for a lot of people that's a drop in the ocean.

[@bryan__m]

@@Draggonny The lowest minimum wage in the US works out to $15k/year full time, so that'll wipe out a $50k balance pretty quickly. Though to be fair at that level there would have to be quite a bit of government assistance, so that'll stretch it out. Not exactly "get wealthy behavior" though!

[@jonathonvoegtli4699]

@@gojl5567 well it depends. You could say both if you're like 20. If you're 55 and it's not the financial place I'd like to be.

[@cvzphotography]

Just had to replace the entire floor in our "passive income rental" because the tenant didn't tell me the icemaker line was leaking.

[@IamAlan867]

I put 50k into a house and all I got was a mortgage payment

[@Monkofthecaribbean]

I put 30k into a house and all I got was 210k in equity and $1000 per month in rental income profit in just 4 years.

[@IamAlan867]

@@Monkofthecaribbean I bought a foreclosure for 6,200 in 2020, put another 6k into renovations and it rents for $1,200/month

[@dylono.t.2509]

@@Monkofthecaribbeanin what area are you in?

[@Joenzinator]

@@Monkofthecaribbean You bought right before the housing market doubled and interest rates doubled, which is great timing. Those are not typical results.

[@Monkofthecaribbean]

@@Joenzinator True but regardless real estate is about the long game. Tbh it will be impossible for most to buy a home in the near future and it’s possibly by design.

[@ehlesdee]

Interesting what you said about making your kids pay for things even if you’re wealthy. I had a rich-ish grandma (used to have more but never worked and made poor investment decisions) who wrote my sister and me out of the will for many years because she didn’t love my dad. My cousins lived their lives knowing they would inherit and acted accordingly as she spoiled them, paid for their college, and helped them buy houses. On her deathbed she changed her mind and my sister and I inherited as well (I didn’t know this happened until after the fact). My cousins never visited her as she was dying. They have already either spent the money or are using it to finance a lifestyle of not working and will end up with no retirement. I put it into index funds and haven’t touched it, and it’s already increased by 25% in a few years. I think if I thought I would inherit my whole life I’d be in a different position right now for sure. There was value in struggle, in having a single mom and not getting everything I wanted. I learned that there’s not much value in material possessions. We can’t take it with us. Our choices should make our lives comfortable and more joyful for the duration.

[@christinewallace9251]

Wow. Great lesson. Easy to fall into the lifestyle trap. We aren’t doing any favors for our young people if we let that happen.

[@Draggonny]

My nana is still alive and my parents are both OAPs. I'll not be seeing any inheritance until I'm already retired and I have 6 siblings so it's not going to go far. Anything I inherit will be a nice bonus but I'll need my own money to retire on. I'm going to knuckle down and graft for the next 30 years.

[@sprint7412]

I see this in my cousins as well. I grew up with a single mother but my cousins had both parents and their father made an extremely good income. I'm worried for their future. Their father will not be able to work forever, they are in their early thirties now and don't have sustainable careers. One does music but it's more like a hobby that brings in some money. Not enough for him to support himself. The younger one is still taking college classes working on her Masters, but it took almost 8 years just to get her bachelor's. They both still live with their parents which I'm not against but they need to start earning money and saving for their own retirement and to be able to take care of their parents when they get old.

[@secondsea2]

My parents told my siblings and I in college that they were going to spend all their money in retirement and not to expect an inheritance. Only after we were all years graduated did they tell us, “oh yeah, we lied, you’re going to inherit.” They wanted us to work hard, invest, and understand how much a dollar was worth. It worked well. We all have stable finances and live well within our means, and my parents have retired without having to worry about their kids. I’m definitely stealing this tactic for my own lol

[@VictorHernandez-nt3tw]

My best friends cousin sells Herbalife and try to be a good social media influencer... They say on their videos that they bought those nice house and truck and cars when they are actually renting the house and we're borrowing the truck from family to move. 😅 They lost the house they bought and forced to rent with thousands in CC debt. Can't believe so many people believe these influencers and listen to them. It's sad.

[@SixthSenseSynesthete]

I actually wrote my master's thesis on predatory MLMs like Herbalife...the fact that people still get sucked into those boggles me. It's all smoke and mirrors and 99% of people either 1) make a meager profit that equates to a McDonald's income or less OR 2) lose money and/or get into serious debt.

[@jl3303]

@@SixthSenseSynesthete Damn that’s a cool thesis idea, Is it published? I would love to read it.

[@suides4810]

You can just look at the income statistics and compare that to the monthly inventory they have to buy....​@@jl3303

[@hockeyhalod]

Nothing passive about RE. It is a grind to actually get those outcomes.

[@me0101001000]

Frankly, the amount of time, energy, and money that goes into RE isn't worth it for me. I'd much rather put my time and energy into my actual work and the people I care about, and that money towards a broad market index fund that I don't need to think too much about.

[@LuisVelazquezLV3]

you can definitely do it passively but it'll cost you so much money you won't make any money.

[@Boblol126]

As a young person the most exposure I’d want from real estate would come from REITs and even so it wouldn’t occupy a large portion of my portfolio

[@Monkofthecaribbean]

People invest in real estate to quit their 9-5s quicker

[@AustinMathias]

@@me0101001000This!

[@enubisgaming6829]

Anyone that says real estate is passive has never been in real estate.

[@cvzphotography]

Preach!

[@Riggy931]

And anyone who says this is likely a landlord and sniffing their own farts too much. May be it’s not the most passive income out there but its certainly mostly passive. Bad things happen, but real estate investment is just that, an investment with risks attached. Regardless, the vast majority of renters pay their landlords well and on time. If you’re complaining about the necessary repairs that you have to do to your property I hope you also complain every time you have to get an oil change for your car

[@enubisgaming6829]

@@Riggy931 My comment wasn't a complaint as much as it is a fact. TikTok and KZbin creators try to convince people how passive rental properties can be but truth be told is that owning rentals isn't for everyone.

[@rebeltheharem7028]

@@Riggy931 Still a worse investment than the stock market, in every way. The time, effort and gains compared to simply buying a whole stock market ETF is simply far superior to real estate. Any object calculation always puts real estate up ahead. And considering housing prices are directly correlated with economic conditions (and thus the stock market), no matter whether its a recession or a boom, they will both following along the same trajectory. Its just that one Real estate has more risk than the stock market.

[@Kangsta665]

​@Riggy931 "most poeple pay on time", "it's like getting an oil change for your car" okay so you have no idea what landlords do lol

[@lmelior]

The wealth that guy at 8:05 built up is going to disappear in two generations, tops. Great video as always!

[@eddiemalvin]

Most family wealth is gone in two to three generations so that's a pretty safe bet. Having said that, if that guy also teaches his kids about real estate investing when he turns over the properties, they might have a fighting chance.

[@eddiemalvin]

Several years ago, I cashed out 150k from an IRA to buy a beach house and paid 50% in taxes and penalties. It was incredibly stupid except for the fact that the property generates $80,000 a year in income and has increased over $400k in value. I don't recommend that anyone do what I did but... Sometimes stupid works.

[@waldoc2829]

Damn, you lucked out.

[@soapa4279]

Luck of timing. Sometimes you’re at the right place at the right time. me *crying* in corner realizing I missed out on hundreds of thousands of $ on ethereum before it exploded

[@eddiemalvin]

@@soapa4279 This was a very rare instance where luck actually worked in my favor. In 2012, some drunk guy at a bar told me to buy Bitcoin when it was about $10 and I told them they were crazy.

[@TeKnoVKNG23]

It works for a few people, but the majority fail and go broke when it comes to real estate/house flipping.

[@rayeiswriting4372]

Yeah, it’s when I heard a doctor say that someone cured their diabetes with Crack. She’s like “Did it work? Yes. Should she have done it? No.”

[@La_sagne]

why does he buy his car cash while maxing out his credit cards? car loans are cheaper than credit card interest.

[@jl3303]

Because he doesn’t understand basic math

[@Lamentlogic]

The trick is to never pay back the credit cards

[@Lamentlogic]

Works Everytime. I mean except for when it doesn't, but don't worry about that. More Risk More Better. That's my motto when dealing with your money.

[@lamike9860]

Because he is smarter than everyone else

[@unlikelydeity]

He couldn't borrow against his cars because they're already leveraged too I bet.

[@bgoode652]

As far as kids appreciating their things, my parents always took us to Payless Shoe Source to get some crappy $20 shoes. If we wanted something nicer or trendier (i.e. Nike), we had to pay for half the cost. Needless to say, I was never interested in the $180 Jordans but would buy something decent and durable in the $50-80 range. Making sure we understood that we needed to sacrifice something to have things more than the basic necessities was an important trait they instilled early on. I think this played a key part in me not caring about the Jones's or keeping up with them.

[@blairkinsman3477]

We did the same .. I paid the Walmart price .. if they wanted more, they paid the difference .. they did it once

[@captnmike3260]

My upgrade was jeans, sears jeans were paid 100%, I upgraded slightly, but no where near the expensive ones.

[@Roaming725]

I love this idea, thank you for sharing 😊

[@BiggMo]

5:13 (Brian’s Troll here) … Bo’s perspective on credit scores is spot on

[@Aragnatim]

Agreed, they need to clip that as a short and send it everywhere

[@jonathonvoegtli4699]

George doesn't mention how much him and his wife made in those 26 months to pay off the house.165k breaks down in 26 months comes out to 6350 a month towards the mortgage. Even if everything else in life is costing 1000$ (food electric gas ECT) they were bringing home nearly 8k a month meaning they were probably 200k+ a year. A median household makes I think 76k a year. Debt is easy to pay off when you make a huge amount like that but they probably could of paid it off in 3/4 years if they didn't have "no spend month" with an income like that.

[@danielr951]

Something I’ve notice watching the Ramsey show is that the average listener makes 6 figures. I think he’s principles are useful and they work but you need to make 6 figures to be able to pay off a house that fast

[@jonathonvoegtli4699]

@@danielr951 this is so true. Low end housing is like 300k in most areas. If your making net 50k and even able to pay 50% towards the house you'll still take probably 15+ years. Me and my wife together make 160k+ and with insurance bills taxes 401k ECT it's really hard to put much extra towards mortgage

[@jacobpierce6153]

The Ramsey principles are good, but golly George’s household net worth increased really fast, even for a dual income household. So when he says “anyone can do it” there should be a note that says “but it’ll be slower than I did”

[@bryan__m]

I'm guessing he's just assuming his audience knows he has to have made more than $165k to pay off $165k in debt, so he let the reader do the math if they were really that interested.

[@jonathonvoegtli4699]

@@bryan__m well obviously my point is they were making likely triple the median household income and even if their goal was like a semi focus and not a throw everything at it they would have been able to pay it off quickly either way.

[@HodgeChris]

Back in the day, when I purchased my first home to live-in; that was Miami in the early 1990s, first mortgages with rates of 8 to 9% and 9% to 10% were typical. People will have to accept the possibility that we won't ever return to 3%. If sellers must sell, home prices will have to decline, and lower evaluations will follow. Pretty sure I'm not alone in my chain of thoughts.

[@PatrickFitzgerald-cx6io]

If anything, it'll get worse. Very soon, affordable housing will no longer be affordable. So anything anyone want to do, I will advise they do it now because the prices today will look like dips tomorrow. Until the Fed clamps down even further, I think we're going to see hysteria due to rampant inflation. You can't halfway rip the band-aid off.

[@brucemichelle5689.]

I wholeheartedly concur; I'm 60 years old, just retired, and have about $1,250,000 in non-retirement assets. Compared to the whole value of my portfolio during the last three years, I have no debt and a very little amount of money in retirement accounts. To be completely honest, the information provided by invt-advisors can only be ignored but not neglected. Simply undertake research to choose a trustworthy one.

[@brucemichelle5689.]

There are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with ‘’Colleen Rose Mccaffery” for about five years now, and her performance has been consistently impressive. She’s quite known in her field, look-her up.

[@KaurKhangura]

Thanks a lot for this suggestion. I needed this myself, I looked her up, and I have sent her an email. I hope she gets back to me soon.

[@anniealexander9616]

I put a $10k roof on a house with a 0% intro credit card. I worked 3:30am till 4pm 5 days a week and sometimes worked 6 hours on Saturday. I paid it off in 4 months. It was a very long 4 months. 😮‍💨

[@elmateo77]

Good work on paying it off quickly, but hopefully next time you'll be able to just pay it out of an emergency fund without the stress.

[@anniealexander9616]

@@elmateo77 No pain, no gain!

[@afridgetoofar1818]

@@anniealexander9616Hopefully you’re taking time for your health. How many days a week do you hit the gym?

[@anniealexander9616]

@@afridgetoofar1818 I'm doing the best I can. I build fiber optic cables. So, I get lots of exercise at work. I have a treadmill at home and do yardwork and gardening. The fiber optic cables are too heavy for me but that's what I do....for now.

[@CaraMarie13]

Boy, I hope you worked enough to save for q vacation

[@NealBurkard-ut1oo]

"The majority of houses sold in 2024 will be during these 8 months".... as long as the rate didn't double for the remaining 4 months, she'd be right. Pretty sure the majority of sunrises in 2024 will happen in those 8 months too

[@pfifltrigg]

😂

[@TonyCox1351]

“66% of home sales will happen in these 8 months” a regular Nostradamus

[@chappell721]

She's not wrong that if you're selling your house you need to have it on the market by August...School starts in late August/early September. Demand for housing peaks in the summer and you'll have a much easier time selling then than you will in November. It doesn't have anything to do with politics or the monetary policy of the federal reserve.

[@alexs_toy_barn]

First rule of finance influencers, if they use the term 'k' as opposed to 'thousand', so for example the first video when the guy says '50k'. If they talk like that, you automatically know that they don't know anything.

[@Cole-Toone]

As an insurance advisor, there is no way that you could convince me to buy property in Florida

[@rayeiswriting4372]

*cries in disabled family in florida*

[@flavvsdasilver6442]

What are the odds that Florida doesn't act like Atlantis in the next 50 years?

[@Erin-rg3dw]

Big fan of the staying at home (if feasible) plan. Especially if you're paying something towards utilities, etc., it's a great way to save money, pay down debt, and help the family some. It also takes some of the burden if your starting income isn't very much. My first FT job out of school didn't pay enough to cover the bills and pay loans, so living at home for a while helped offset that.

[@oreo507]

I'm going on 4 years now living at home after college. It's been amazing for my savings, so hopefully I'll have more flexibility in my 30s for life goals.

[@stevenporter863]

I lived with my parents after college for a year or so. The difference is there was a plan I had in mind, and not the housing market or whatever crashing or using my parents as a barrier between the real world and myself, that would be a dream and not a plan. When my career and numbers worked according to the realistic plan, I moved OUT a year early.

[@Erin-rg3dw]

@@oreo507 I did it for a combined total of 4 years. That's when I did the bulk of paying down my debt, 401(k) saving, and emergency fund. After that, life gets expensive 😅

[@SixthSenseSynesthete]

I lived at home for 5 years after graduating college. I saved aggressively during that time and just now bought my first home. I don't regret it at all!

[@thinkeightsix]

The military gave me a huge boost to become financially successful. Got a mortgage through a VA loan with no down payment required. The only time I've ever needed to use a credit card was with my issued GTC, so I've never had use for my own credit cards.

[@beckypetersen2680]

I had to laugh at them including George's TikTok into that list! Loved your reaction as well!

[@christinewallace9251]

The hungry hungry hippo clip TOOK ME BACK to my childhood. Awesome job editing team. 😂

[@srl0003]

Love George, but yeah agreed, I disagree on his strategy. Thanks for all the great videos and info! Wish I knew about you guys years ago.

[@charleslemaire8137]

I find George interesting and entertaining. But I disagree with using one's home as part of their Millionaire Status. His heirs may get that money, but he has to live somewhere. I don't list it at all, but at cost is more reasonable.

[@beckypetersen2680]

@@charleslemaire8137 But as part of your net worth, your home equity has always been part of that figure - at least as long as I've been aware of anything like this (I'm in my 60s).

[@timprussell]

Yeah that whole pay the house off early when you have a 2.25% mortgage makes little sense. Rather grow my army of dollars. Those "buck" privates are doing the heavy lifting now.

[@louisepotter651]

I always appreciate this videos. I'm steadily working my way towards my first 100k in my retirement accounts, but doubt often sets in when I'm flicking through social media. Thanks for being here Guys.

[@bobbyboricua21]

Love these React videos, please make more. Thanks guys!

[@bryanvouga3104]

In reference to the first video: I’m an administrator for 401k plans. My company gets contracted by one of those self direct IRA companies to help administer their self directed 401ks. The fees they charge are crazy. There are also some IRS rules attached to purchasing real estate inside a 401k that may be a deal breaker for some people. In the dozens of plans I’ve worked on the ROI is seldom better than investing in good old mutual/index funds on a cheap platform like fidelity or vanguard.

[@MattR88]

Careless whisper George! hahaha love it

[@bryan__m]

7:43 100% if you hear that music it means whatever you are watching is total BS.

[@michaelmurphy2112]

If you want an example of the local government getting involved in short term rentals, Richmond, VA recently passed a bill to limit the ability to use your home as an AirBnB.

[@benlaine400]

It drives me insane how many people think becoming a landlord is just a cheat to print money. And then they act like they're providing value while actively contributing to housing shortages for people who are just looking for a home.

[@JWallWest]

Inflation data indicates a rate hike not a cut. It's stagnated at 3.5%. Needs to reach 2% prior to a cut.

[@oliviabees]

I just hope that short term rentals start getting banned in the near future. So much of the single-family housing in my area is being used for AirBnBs and the like, and it's depressing as a young person who wants to own a home one day! It's hard to dream for the future when the cheapest houses in your area are 500k+.

[@Draggonny]

You could always move to where the cheap houses are. My local area isn't a vacation spot and has a bad reputation. My house is ridiculously cheap. This area is a HOA's nightmare with waist high weeds and broken appliances in the gardens. There is a constant smell of smoke in the air from the house on the corner burning rubbish. Within 5 minutes walk in either direction are tendy new builds and massive old houses where rich people live but my street would be worth more if they levelled it than it is now. I could not be any happier. My mortgage costs less than £500 a month even after we increased the monthly payment to shorten the mortgage term.

[@coya8coy]

My only issue about the 3% down is I don’t want to pay PMI and I want a lower monthly payment.

[@thehomeless_trucker]

PMI is usually really cheap money.

[@bryan__m]

You can use 3% down to get into the house sooner, then pay while the house appreciates. You then will be able to get PMI removed before you end up putting the full 20%. When you factor in the low cost of PMI vs the high cost of waiting the lower down payment will be better off in the long run.

[@Chris-xt8io]

Inflation just came in hot… and it doesn’t look like the Fed will lower rates. Some Fed officials are talking about raising again

[@chemquests]

Our society got used to the historically low fed rate & want to get back there. We need to get used to the idea that it’s likely to stay well above that 0-2% rate for decades. It’s just more normal

[@Agent77X]

These TikTok advice is the best out there for financial advice!

[@richarddavis703]

I am pretty sure Orange County (Orlando) doesn’t allow short term rentals without authorization.

[@risa-ru]

Orlando doesn't but people still do it until they get caught 🤷‍♀️

[@AustinMathias]

Social media, where everyone is an expert on everything. It's way to easy to give advice about something you know nothing about.

[@AbruptAvalanche]

7:18 Even then, why would you pay off low interest debt after you're over 45? If your mortgage is 4% and your money makes >8% in the market, there's no age where it makes sense to pay extra toward the mortgage.

[@jadonsteinmetz9319]

There comes a point where peace of mind > added profits. I think that only applies when you have a solid portfolio that will more than reasonably supply your needs. I don't want to have debt forever if I am set, but I also don't mind debt if I'm not yet set. I think it's less an age thing, and more a "where are you at financially" thing. I would imagine they chose 45 as a default number since that's around when most millionaires hit their first million

[@AuthenticHD]

My car loan was 22%. I needed it to rebuild my credit though (it worked), so I paid off half the loan the day I got the paperwork to log in

[@capes8395]

Housing inventory is actually growing exponentially

[@demep]

Focus on the process and the goals/results will come

[@coletrain9173]

OMG that intro 😂. Loved it

[@zacknelson8918]

Wait did i hear you saying good inflation report......it was bad, very bad missed on everything, inflation went up, core went up, and super core through the roof, its been ticking up each month, and it would be a horrible decision to cut rates. Cause inflation is inbeded now, if rates get cut, inflation will skyrocket out of control

[@user-kv4eb8pr3w]

Good luck getting real estate loans with maxed out or bad credit. As a mortgage lender you’re going to have a really tough time with really unfavorable terms if you even manage to qualify.

[@jm9565]

Did George get read the riot act by Dave for suggesting 10% down is okay? My theory is George has his own money beliefs that differ slightly but smartly from Dave that he'll pivot to once Dave relinquishes control or he breaks off independently of Ramsey Co.

[@xiaosha1558]

I understand your reasoning for putting down 3-5% on a house instead of, say, 45%, but in my case I think it makes more sense to do it like George. My income is fairly low (

[@MoneyGuyShow]

It depends- do you want to only own a house or own a house and build liquid wealth outside of your house?

[@xiaosha1558]

I also want to build liquid wealth outside of a house.

[@Resolve_DigitalMedia]

I’m vibing the new intro jingle song thing. Lol

[@sherling4663]

It's like saying there is going to be no tax on overtime - leaving out that you have to work 160 hours to get overtime

[@christinewallace9251]

What’s the new ring on Bo’s R hand. Fitness tracker? Just curious.

[@demontrav1918]

15 year fixed rate with payments at 25% of income? That's just completely unreasonable for most people in most of the US in this age. Completely out of touch

[@crashtestdummy1972]

I used the ramsey method to get out of debt and grow my long-term wealth, but the 15 year, i just don't care for it. I understand the reasoning behind it, but if you are good with finances and are saving for retirement, you'll find a way to pay your mortgage off whether it's a 30 or 15.

[@jiayilu8995]

The last clip is so funny

[@andresjmontanez]

Love these videos

[@119Agent]

FYi - short term rentals are banned in Orange County Florida.

[@apnudi]

I'm with Ramsey and Kamel on this. Gotta get the first house paid off as soon as all other debt is paid off.

[@edwardrhoads7283]

Credit cards with regional banks will often times give you convenience checks that do 12-18 months with 0 interest and 4-5 points. Way better than hard money for a flipper. I doubt that guy was paying 20%+.

[@rebeltheharem7028]

Man, most of these tiktoks telling people to buy houses are basically saying "Why are your poor? Just get rich, its that easy", without really saying it. Most of those guys were already rich before getting richer. I mean, the real reason why so many people are doing this is because they have skin in the game. They own property and they want to create a demand so people want to buy houses and thus keep their asset values up, when in reality, less and less people are able to afford it, and the majority of buyers are other LLC's looking to make an investment.

[@jerrystauffer2351]

The girl 16 minutes in gives strong Bertie Wooster vibes. (Jeeves and Wooster) "Being a publisher is easy, you just write checks from time to time".

[@masquereseau5635]

Good relationship with my parents made me a "prodigy" investor according to your calculator on your website.

[@ncooty]

I agree about not chasing a credit score, but I strongly disagree that credit scores are a valid measure of financial prudence or credit-worthiness.

[@Br0micz]

These guys are the best. Kind of guys I want to go golfing with.

[@devinsarno8917]

So if I have maxed out credit cards, does my credit usage right now have any impact on my credit score once i have them paid off

[@jackiecs8190]

Good question! The answer is no, usage is based on the most recently reported balance from each lender. Reports are monthly, but the day of the month differs

[@Rusty5000]

i have just one house i am fixing to sell and its been a headache, it takes time and is complex with all the phone calls, things that need to be fixed, and hoping to get it on the market in time. Flipping five in a year I'm assuming is insane. plus all the inspections, tax's, and anything that randomly pops up

[@tweakyapollo]

People my age (35) and younger are just looking for a get rich quick to then show off on social media. Not a lot of people want to understand how building wealth/sustaining wealth works.

[@IrisP989]

George paid off his townhouse while living in a low cost of living area. That is why is was more doable.

[@Erin-rg3dw]

Exactly. To do that same setup for myself (15-year mortgage and under 25% take home), I'd have to have a mortgage (not cost) of $110k. That's also assuming I can get a massive down payment together first.

[@ehlesdee]

Yeah condos here are a million plus lol

[@IrisP989]

@@Erin-rg3dw I would take that $110K any day haha... That's because I live in a high cost of living area in an expensive state. My 15 year mortgage would be 7 figures in that case. It would not be doable without sacrificing so many things if you have kids - contribution to retirement, after school activities, money for college, savings, an emergency fund, etc.

[@IrisP989]

@@ehlesdee It sounds ridiculous, right? A condo/ townhouse with no backyard and a tiny patio at the entrance can be sold for $900K (and not in some fancy area even).

[@Erin-rg3dw]

@IrisP989 Oh I would too 😂 there's nothing anywhere near me remotely near that amount 😅

[@ericeven4090]

What kind of credit cards are you getting with a 500 credit score? A while bunch of macys cards with a $300 limit lol. And get used to always paying for those new cars with cash cause aint no one ever gonna give you a loan. Or a cell phone.

[@rasmub18]

My main issue with all of these TikToks is best case they embody the "survivorship fallacy", you're only seeing the successful folks that managed to hit everything just right and thread a needle to make a bunch of money on flipping real estate. You don't see the ones that crash and burn under the debt and end up in bankruptcy with nothing. The added layer here is that there is no accountability or auditing fo the claims made in the video. You don't know if they "own" 10 houses free and clear or of they actually have negative total net worth because of the loans on those houses.

[@GabrielPerez-ml2go]

Maybe it’s bc I’m from another country but, how the f is your credit limit going to help you buy a house. In my country a normal house can be $100k USD, any mortgage requires AT LEAST 30% down otherwise banks are not going to lend you the money. The average credit card limit is around $1-2k USD, let’s say you have 3 credit cards like this, great, where are u guys getting the other $22k USD? Literally the average salary is $500 dollars a month, people do not have access to that kind of money and credit cards are not only going to pull you down even further but also don’t really matter getting the down payment

[@Ojisan642]

3-5% down payment is just really bad advice. You just got finished talking about risk. The reason they tack on PMI with a low down payment is *because of the added risk*. Your down payment is equity once you buy that house, which means you’re a lot further along with paying off the mortgage. Telling people to buy a house with little to no down payment and PMI tacked on is just irresponsible.

[@timluyten7330]

My Kids need to buy their first car themselves, if You can't buy it, you cannot afford the operating cost. They will love that first rust bucket and build great memories.

[@FIRE_DrNinjaTurtle]

My wife and I put down 45% on our retirement home

[@kckuc310]

You guys still don’t apply any risk to not paying your mortgage off, money in your IRA is almost useless if you loose your job.

[@thehomeless_trucker]

The same goes for having all your money tied up in an illiquid and undiversified asset.. and if you weren't quite done paying it off, the bank will still foreclose on you.. property taxes and homeowners insurance sky rockets to 20k/yr and can't pay it? Bank takes your home even though you dont have a mortgage on it. if you didn't overspend on your house and save/invest a good percentage of hour income, you can make the money to cover your basic expenses if you ever lose your job and have to take something that pays much less.. Plus, you can actually pull funds from your eoth IRA if you need them. You would make a withdrawal of the short fall each month of the short fall. If you were being paid 7k/mo and can't figure out how to make 4k/mo to cover your expenses immediately with new employment, you was never worth the 7k/mo job in the first place... likely why you got fired.

[@DefenestrateYourself]

lose

[@DTFFP]

You don't get hit with a penalty by taking the money out for a house purchase. I did and no penalty whatsoever.

[@k_kelsey]

Love the tip of the hat to Aerosmith!!!!

[@Forwarrd]

Brian! It's an asterisk!!

[@adrianbot2435]

Notice how in the second video the guy speaking didn't show anyone in the audience? He's probably talking to an empty room

[@LawrenceTimme]

45% down. Damnnnnn lol 😂😂😂

[@daguy9305]

Half my monthly money goes to my rent 🌚

[@rino152]

Confusing "scam" with, not the maximum possible return.

[@userunknown7675]

With those real estate guru's the scam is whatever they are trying to sell.

[@DanCooper404]

This video inspired me to never go on TikTok.

[@exqueue3813]

The guy buying his kids multople houses is the reason his kids won't be able to afford to buy their own house.

[@BM-tk1cn]

ALL OF THESE GUYS(EVEN YOUR FRIEND....)ARE COMING FROM A PLACE WHERE THEY HAVE A LARGE AMOUNT OF MONEY TO PUT DOWN 48% DOWNPAYMENT ON A HOUSE. JUST CRAZY

[@RupertMDoc]

6 rate cuts in 2024? Ha, 50/50 we get one or less right now.

[@alext1723]

Rates will surely go up, so 50/50 it goes up or stay the same instead.

[@chemquests]

We should get used to the fed rate being higher than pre-pandemic because that was a historically low anomaly.

[@jamesphan8306]

Lol fuck the Ramsey guy, $6000 on his mortgage and overpayment and it’s supposed be 25% of your gross income?? I guess anything is possible when you’re rich af

[@brandonwaller4328]

Are you smoking crack? He said they worked extra to pay it off. They weren’t rich, they were disciplined. And their mortgage wasn’t $6000

[@JakoWako]

@@brandonwaller4328He said they paid an extra $165k in 26 months. Most people don’t even make that much! Completely out of touch!

[@brandonwaller4328]

@@JakoWako again they worked extra, and paid $6346/mo. Assuming they had no other debt, which is most likely, it’s not that hard. You don’t do a lot of other things. If you and a spouse can’t make 8-9k a month, what the hell are you doing? DoorDash as a side hustle and make an extra 3/400 a week each, there are ways if you’re willing to work

[@stealthwarrior3303]

My friend has a 21 percent car loan

[@Jmo4sho2097]

Money talks, wealth whispers

[@CHRIS-tg5cn]

So u want George to put 3-5% down, AND have a higher mortgage payment + PMI?

[@WealthyInvestorRE]

Hey, since you guys use my clip, you guys should have me on your show and we could discuss the topic of making more money in real estate. I think the advice of just go save 50 K to get into real estate doesn't work for 99% of Americans. So that's why I was saying you should get into active income jobs like flipping houses or wholesaling so you could make more money so then you could actually build a savings. Just telling people to go save money doesn't work that's why most Americans do not have 50 K and savings they could use whenever they want. And I believe 401(k)s are a scam because you have to pay so much taxes , penalties and interest just to use the money that you've saved.

[@greenlantern1986]

I guess you guys need to define economic outpatient care, because the living at home thing (which I think is good if you're saving money and not spending it) seems like something you would rail against. I know you've gotten some criticism for the staying on your parents health insurance answers you've given recently, just saying, some clarity might help.

[@kes9171]

I think the difference should be pretty clear. Basically the same setup as when the kids were in highschool, but with the young adults contributing something financially back to the household, such as $400/month. That's a stark contrast to subsidizing their lifestyle. One is "I will ease the burden on you by sharing my home with you" (which wouldn't increase the parents costs, especially if the young adults are paying them a relatively fair amount for the accommodation) and the other is "I will ease the burden by directly taking money our of my pocket and giving it to you. Also comes down to the intent, if the young adults are using it as a step to get ahead vs blowing the money on discretionary spending. Same thing for the health insurance. Every dollar I saved staying on my dad's insurance went into my Roth.

[@stevenporter863]

Bottom line: an exit strategy, not a permanent or multi year solution.

[@maxshiraz3447]

Real estate "investment" is incredibly hard. Don't let anyone tell you that it's easy and "passive". Forget flipping unless you have a TV show.

[@tiffanym4202]

The demographic George is after is younger folks. He's following the baby steps, which means he was putting away 15% into their retirement accounts before attacking the mortgage. While he managed to pay it off in just a few years, keep in mind that they chose an inexpensive house to begin with. Here's the thing, though: George has a 100% paid off home for the rest of his life. He is 100% debit free. He can now put as much as he wants into his retirement accounts. He WILL retire a multimillionaire. Today's young people will not have a 3% mortgage. If they are putting away 15% and then knocking out their mortgage, they will be financially better off then the majority of their peers. Why? Because they will be 100% debit free.

[@ThePixlPerfect]

they changed the projection this didn't age well lol 11:50

[@ncooty]

Buying residential properties is a great way to have a very illiquid, undiversified portfolio, especially in a single market. The long-term capital returns will be limited and volatile, and the asset-management costs are high (whether you do it or you pay someone).

[@unlimitedpower4101]

Putting George Kamel on here was not right. George knows what he's doing and talking about.

[@Historyhappenshere]

But guys it’s easy.. just max out your credit cards, 3x your money in 2 months, pay them off, rinse & repeat 😅

[@SF-fb6lv]

Out of state AirBNB = squatters.

[@userunknown7675]

+ likely not understanding small but important differences that make or break a location. + not being on top of local regulations.

[@eegernades]

15:50 hope airbnbs get banned nationally soon.

[@dbdb4962]

Why

[@mikeyman1974]

I don’t think it’ll get outright banned but with all it’s controversies it will definitely make it less popular for consumers.

[@stevenporter863]

​@@dbdb4962If you pay for a home in a nice neighborhood you don't want it changed to a rentals. It is changing the rules mid stream.

[@eegernades]

@dbdb4962 it's a cancer. On top of low housing supply, this strangles the already low supply. In small towns, it's starting to snuff out residents. Making it very costly for people to live near where they work in already small towns with limited income. Whole lot of issues with housing, airbnb is part of the issue.

[@eegernades]

@mikeyman1974 I expect a ban soon. New York is working on it. Texas Republicans have commented on this being a problem that has gone out of control, and Hawaii just issued a ban. California looks to be next, and Florida has talks about it, but nothing concrete yet. I expect a national ban soon.

[@Jake-pf4kv]

Buy now refinance later is the worst advice there is😂

[@shobull8695]

Hard to argue with the most houses being sold will happen in a 75% period of a year. Way to go out on a limb there toots.