This Guy Thinks His Kid Is Smarter Financially Than You BOOM!

[@superspeeders]

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[@bellluna9017]

Sounds like you got an arbitrage on ED treatment

[@PhilJLF]

There’s a video on real world police they just put out today of some dude who rented a 2021 lambo evo for 2 hours, got caught speeding 150 in a 60 and was arrested, car towed… Im curious how much the rental company could potentially F the dude who rented the car or visa versa … would make an interesting video

[@NoClearly]

I think this really just boils down to the dad thinking he’s a lot smarter than he really is.

[@superspeeders]

He sells a $400 financial E-book.

[@OneOut1]

Does he sell it or offer it for sale? Big difference.

[@edlomonaco]

He's into Arbitrage for God sake. You just don't understand.

[@bk2les]

@@edlomonaco 😭😭😭😭

[@entrepreneurx3]

@@superspeeders 🎃🎃🎃 O

[@q7272]

As a former finance guy, you didn't miss anything here

[@superspeeders]

Easy for me to ramble facts when I get fired up :)

[@harryn3109]

😂

[@justinfargas2367]

As a current rational human, you didn't miss anything here.

[@thejhp1]

can't wait to see Rob and yell "ARBITRAGE! BOOOM." 😂

[@AJUSA1]

🤣🤣🤣

[@pararanthecaveman]

100% am going to do this if I ever meet him lmao

[@kirkwoodhawk2]

She’s 16 and is not of legal age to sign a contract on her own so Dad is doing all of this for her. Boom.

[@brian5o]

My thought exactly. I couldn't even get a checking account until I turned 18. My thoughts is that dad is whoring his daughter out to sell his book or sell his ideas through her. It's disgusting.

[@johnnychimpo7539]

@@brian5o whoring is excessive. But ya he’s using his daughter to help his reach but maybe she’s learning something or at least they are close. Who really cares. I get food from this chicken place where the Asian parents have their two kids working there every day it’s open…same thing

[@Emerica-wp9ch]

Everything in their vid was fake innorder to sell his dumb book

[@Lacostelp]

@@Emerica-wp9ch who is he?

[@Just_Joe71]

Everytime my wife goes "I saw this on TikTok" I immediately ignore it.

[@thefleegle7202]

Anytime anyone says that I ignore it.

[@kingtrawal]

Tick-tock is like television or KZbin. It’s just a vehicle. You really need to grow a brain.

[@MediumRareSteak]

Next time I see Rob in public, I'm going to ask him about arbitrage.

[@gsmith207]

When my Dad told me “Believe nothing what you hear, and 1/2 of what you see, and you will get it…”. Now at 55 now I am pretty sure he was talking about social media 40 years ago. Just sayin… Thanks Rob nailed it bud.

[@nothingtoseestill]

Ahh the 2 edge sword of the internet, Giving a voice to those who should have a voice, and also those who shouldn't.

[@JonHop1]

Everyone should have a voice.. I don't care how bad or offensive. No one is forcing u to read said voice online. I just ignore these people. Doesn't bother me in the least.

[@dschrock23]

@@JonHop1 the uneducated listen to this crap though. You may be able to ignore it, but millions of morons think it is true. Freedom of speech does not equal freedom of consequences of said speech.

[@JKlein713]

She's 16 so her dad had to sign the car loan. A minor can't enter into a contract.

[@JonHop1]

He co signed so he is responsible n her Rate is based off his credit

[@superspeeders]

I question if there is even a car loan or they were just faking it for content.

[@postshawn]

@@superspeeders Maybe dad IS the car loan?

[@TheOriginalLugnuts]

@@superspeeders I think their whole story is BS

[@JKlein713]

@@superspeeders That's entirely possible!

[@p.f.droney8973]

In this episode Mr. Spaghetti gives an innocent child who is being manipulated by Dan Bilzerian a reality check.

[@yourmom9442]

@@cu2277 prison?

[@yourmom9442]

@@cu2277 hello my child

[@christopherhouck3846]

Dan Bilzerian 😂😂

[@chrishall2290]

I love this. It's about time someone started calling BS on all the nonsense that's being spewed on social media. Thank you!!

[@jeffreylevin9728]

No bank enters into a loan contract with a 16 year old. The minor status creates a real headache. Enforceability and the requirement for legal action to attempt enforcement would take away any potential profit. No way a bank does this.

[@brian5o]

I bet daddy gave her the loan...... and bought her the Airbnb. I can't imagine she'd be able to get a loan from a real bank herself at 16. I had to be 18 in order to even open up a checking account at my credit union.

[@TroubledSoul0]

saying "Boom"is the word to watch out for because people who say it really think there is no argument against it, I'd love to see debates where "BOOM'" gets used, or better still try using it in court.

[@vinniebagodonuts9391]

Thank you for your knowledge Rob. Good to know the BS from the real people trying to help others.

[@EcoAcid]

Video starts at 1:35

[@ToxicReflexs]

The real mvp thanks

[@irdestroyer]

Not if you have ED

[@alecmoreno9330]

@@irdestroyer oh my god that comment was gold my boy, well done

[@fuzzycuffs]

Market arbitrage exists, but I only experienced it working when I was in financial services and saw a global bank use their funds and connections to various exchanges to capitalize on it.

[@Sizukun1]

I saw this on the Ramsey show. Its pure idiocy and she has no concept of risk because her dad would likely be able to bail her out or fill in the losses when they happen. Shame on him for supporting over-leveraging yourself.

[@roccomicelotta3798]

Rob once again I could not agree more, you made the case BOOM….Thank You, Ric

[@MrInternFTL]

First thing I said is "Isn't that fraud?"

[@TheBrokenLife]

No. She borrowed the bank's money to buy a car and took her own money to put into an investment rather than use that money against the car loan. It's risky, but not fraudulent. Simply put, she's leveraging her credit rather than paying cash.

[@MrInternFTL]

@@TheBrokenLife I guess I misunderstood, 14% on $7000 seems impossible in this market

[@TheBrokenLife]

@@MrInternFTL From reading the other comments, you're not alone in the misunderstanding. TikTok is a useless media for actual education. There's simply not enough time for anything but the most basic concepts. Ehhh... I have a few making near or over 14%, but I'm not crazy enough to bet my entire egg on them. Right now (if you _hurry)_ risk-free Series I bonds are paying nearly 10%. That would be the real "boom" money tip, but it's a tip that's months old at this point and it's not as glamorous as Air BnB sounds.

[@bk2les]

@@TheBrokenLife couldn’t she have just waited to earn enough interest on 7k investment and then buy car cash. That eliminates the 3.5 interest and owing the bank being the middle man?

[@bk2les]

@@MrInternFTL what exactly is she investing in to get anywhere close to 14%?

[@rmorris003]

TikTok is full of financial advisors

[@brian5o]

It reminds me of an old saying, "A fool and his (or her) money is soon parted."

[@Run_k24]

I'm glad you broke this down because when I had seen this on tiktok it seemed a little to good to be true. And these days everyone just believes everything they see or hear instead of looking into the facts. Thanks again Rob

[@corydock8289]

I sure do enjoy a good Rob rant, you tell ‘Em!

[@attilamorvai]

I just love when Rob goes nuts like this!!!!!

[@martyconsidine8628]

Thank you Rob! I saw this and typed out a book in the comments describing how wildly inaccurate the video was, then deleted it because I couldn't explain what arbitrage was lol.

[@dissaver]

When I saw that guy's beard I didn't need to watch further to know whatever came next was BS.

[@scottieray]

It's too 'perfect'...which weirds me out.

[@CanadiansInCarsGettingCocky]

Looks like it was drawn on with a sharpie!

[@brolohalflemming7042]

@@scottieray Someone that spends that much time/money on grooming isn't spending enough time understanding risks. Or even inflation. Plus he used the word boom, which is almost as bad as arbitrage. So he's going to be guarantor on the kid's car loan. The car is a liability, not an asset. The AirBnB income won't come close to covering the loan repayments, let alone running costs, and the kid's $7k investment is lost. There's an awful lot of pseudo-REITs out there parting savvier fools from their money with scams like this. Plus because she's too young to invest in a REIT anyway, he'll probably end up on the hook for anything that goes wrong deriving from small print. Like the 'investor' also picks up liabilities for management fees, property damage, dilapidation etc etc. Taking out a secured loan to make an unsecured loan isn't a very safe bet.

[@TheBrokenLife]

...it was the gold chains for me.

[@jguillot72]

The Bilzerian Effect.

[@CarYouTuberNews]

GREAT video, shared with comments on my Facebook page!!! Fantastic!!!!

[@gordonlitz4824]

Rob, you are right. Thanks for the advice

[@Mike_219]

I cannot wait to yell this at Rob next time I see him around 😂

[@king_br0k]

You can get a perfectly usable old clunker for 7k,no need to go into debt for a kids car

[@johnnyg9804]

Oh jeez, thank you Rob.👏👏👏 I needed a good laugh today.

[@bk2les]

This makes zero sense. Why buy the car now why not wait until you make 15k from ‘14% interest” your getting on investing 7k? She’s only 16 I couldn’t imagine she really needs a car right now.

[@sp33dou]

I bet you have many young people following you. Thanks for posting this stuff to slightly educate them with common financial knowledge 👍

[@veedubzz88]

dude!!! I love that scene in billy Madison, but nobody remembers it!!!! thanks for this!!! love you man!!

[@MRTuning704]

Today Mr.spaghetti explains why tipping your waitress based on The percentage of the dinners cost is a load of ravioli

[@ShusterComputer]

Rob, please explain your background in real estate investment, including typical and atypical rentals.

[@ProSynyster]

solid advise: you probably shouldn't take anything you hear on tiktok as good advice 😂

[@25566]

One thing you missed (because they explained it like crap) is that "investing in airbnb" means renting an apartment and then renting it in Airbnb for short stay. Not legal in most places, terrible idea. All they're foing with this video is get followers to buy their masterclass scammy training course.

[@fubar2163]

The thing I’d add is that the 3.5% vs 14% might work better - except that they are ignoring the need to repay the principal (ie actually pay for the car, not just the interest). If you’re asserting you could pay interest only, you have a pretty big issue when the (rapidly depreciating) asset isn’t worth anywhere near $15k at end of term.

[@mrgucciman]

Fantastic video, thank you Rob i was laughing so much 🤣🤣

[@francoislindstrom9313]

It makes complete sense! As long as you don’t think about it…

[@ianandersen2130]

Yeah that was pretty painful to watch, firstly as Rob noted it isn't even arbitrage, there is no product price differential between markets being exploited. Even on the most generous reading which I guess is taking advantage of cheap credit, its just a leveraged investment,. Also ignoring the obsurdity of believing 14% risk free returns actually exist.

[@carguyuk7525]

Well put!

[@frederickbehn5610]

Thanks man, thank you for dealing with these types of videos that are floating out there misleading a lot of people

[@cosmostrek2001]

the first problem is getting a bank loan. car loans from credit unions are always cheaper than banks. second no body is going to give you 14 percent for 7 k.

[@woodyholland9865]

If is sounds too good to be true, RUN as fast as you can. No free lunches in life

[@swift__]

Spot on good sir👌🏻

[@jeremyhayes1756]

Where can I get an air b n b for 7 grand? Definitely not stock in it. Her dad is definitely the Catalina wine mixer type

[@harleyharleyharley]

This is like saying I'm eating Italian and then BOOM you're eating spaghetti Oz

[@MorisevaVuorikauris]

We need more financial videos Rob. Funny and educational.. Boom!

[@aaronredbaron]

Like Tone Loc said in Ace Ventura "Something ain't stirring the cool-aid man"

[@hgarage7544]

I totally agree with you!

[@RaspingPompano2]

They'll let Airbnb price raise and then dump it causing a bunch of people to lose money...

[@nighthawkviper6791]

Everybody thought that about Bhad Babie but the exposure made her a millionaire in this clown world 🤣

[@Tieaga]

I learned a new word today. That's the real BOOM of that video

[@PulpComic]

Today we learned that loaned noodles and leveraged tomato sauce don’t make spaghetti.

[@justinkroeker1464]

I agree but just want to point out that you can get 3.5 auto loan, I got get them from ufcu often

[@kumaylsajjad3809]

Fast and Furious 10.5: ARBRITAGE !!!!!

[@psubuster]

You can’t get a loan or sign a contract to purchase a car anywhere in the US until age 18. Not even with a parental co-signer. Dad conveniently skipped over that minor detail.

[@eleo_b]

How old was she though?

[@PhilJLF]

I dislike the “B” word too, I don’t think I’ve ever even said it except maybe if an M80 went off lol… oh wrong word!! Hahahahah

[@dimitrijensk2845]

What property can you buy for 7k that you can then put on AirBnB? I would LOVE to know.

[@bellluna9017]

Thanks cause I was trying to convince people of the same.

[@davidjohansson1416]

There is arbitrage in some financial derivatives, problem is usually when ”it’s free money”. Costs on acting upon it outweight benefit or market for such an instrument is shallow and very illiquid. Making you able to ”get in” at one price but not being able to unwind you position elsewhere to use the arbitrage. There could be arbitrage in lending because of differences in contracts. But commiting faud and using funds for a loan to fund other things than what you said you would and/or not having an underlying security, in case of default is usually very illegal. To me it sounds like she almost admits to fraud because she want’s to borrow 15000 to use towards a different thing other than what she got the loan for..

[@TheOneWhiteST]

I love how nostaglic his videos are. All uncut editing.

[@singular9]

16 years old, 7000$ saved up in cash, got approved for 15,000 at 3.5%. I stopped caring when she said she went to a bank to get a loan, because even with a cosign you CANNOT get a car loan under 18. The end. Let alone anyone letting her buy ANY property with ONLY 7000$. Sure she can always put everything in daddys name, but people really need to stop making shit up. Besides, WHO is getting 3.5% interest on their first car loan? Unless you are buying a new car (where you definitely need more than 15000 unless you are buying a shitbox) with interest incentives, you aren't getting bellow 5.9%. My first NEW car purchase had me at 3.9% EVEN with a 765 credit score and a cosign because at 20 years old, there is ZERO way anyone would think I had any credit history no matter what I said. EDIT: One more thing, decided to do some math. Her payment (60mo, 3.5%, 15000) is 273$ PER MONTH and a 14% yoy return on 7000 is 980. So....Rob is correct.

[@tocsa120ls]

Every time something like this comes up and I try to tell people that the finbros who toil night and day to live in a snazzy SoHo apartment do it for 2-3% returns - at best! When you hear an investment opportunity that is way over 4-5% (*cough*cardonecapital*cough*) be very very wary.

[@whatsnew1267]

I agree it dose not make sense at all but what I think they mean when they say “arbitrage”is just the interest-rate of the car payment which still doesn’t make sense and very stupid

[@ilukatube1972]

well said....

[@Jstruble3131]

Ahh yes using a bank loan for something other than the purpose you told the bank it would be used for…

[@oliverlathe]

The insanity in some people’s logic is ineffable.........🙄

[@diegocella6791]

This remands me: i was at work, i work for an international house stuff shop (nice definition) and i overheard a couple who was buying stuff to outfit.. you guessed it... a b&B and she was reluctant to buy the expensive stuff, but HE said, oh, don't worry, you will make up the money with your first reservation... THAT"S NOT HOW MONEY WORKS! BOOM!

[@brian5o]

I'm guessing her Airbnb has an oceanfront view in the middle of the Arizona desert. She's so famous that George Strait even wrote a song about it. LOL!!!!

[@n.0rr0.w]

Today Rob's spaghetti is nice and stiff, thanks to roman! No more limp noodle

[@littlejohn-pi7kk]

No bank will give a 16 year old $15k loan for a used car at such a low interest rate. Too much risk. I know cause at 16 I had to have high interest rate when borrowing because of young age, no history of long term employment etc

[@GolfsMyJawn]

The word of the day is…ARBITRAGE!!!😂

[@jensgronning4436]

“Passive income” is what’s really dumb. There is no such thing as money you don’t have to work for.

[@dschrock23]

Never mind the mental gymnastics they are trying to do with Airbnb. She has big Altima energy, which is about all 15k is going to get you. 😂

[@jguillot72]

with the faded clearcoat option thrown in free!

[@matthoward1174]

That's Rob Dahm in a magic shop beard

[@irdestroyer]

I think what they were going for is that she is using her $7,000 as 5% down, so buying a $140,000 property earning a 14% cap rate by Airbnb'ing it. That's about $1,633.33 per month EBITDA and an estimated mortgage payment of $861.90 (assuming $140k is mortgaged for the sake of argument as there are closing costs, insurance premium for insured mortgages, other taxes, etc.), for a cash flow of $771.43 per month. If she really is getting a car loan of $15k @ 3.5% over 2 years her payments would be $648.04 per month thus covering her car payment. Obviously her family is helping her out, no teenager has the credit to get anything let alone a mortgage for a rental property with only 5% down AND a used car loan at the same time. Not sure what sort of property you can buy for $140k and Airbnb for about $80-100 a night with almost 80-90% occupancy either to arrive at her numbers. Here in Canada $140k will get you a very run down condo in a dangerous city that nobody is going to book on Airbnb unless they're selling their bodies or dope. Even then, Airbnb's are not passive, you still have to work at them, and there is a risk to owning rental property in general. Regardless, I hate those types of videos anyways. They never get into any detail to actually help anyone, and the advice essentially boils down to "have rich parents who can co-sign or lend you money". It seems more like a flex video of a parent trying to show-off that they are financially able to help their daughter and are thus better than parents who can't than trying to give genuine advice. Doesn't help that he looks like a dbag. Her "arbitrage" explanation makes absolutely zero sense and it's clear they have no clue what they're talking about so I'm being very generous to them here with my interpretation.

[@Jay-kk3dv]

Ignoring everything that goes into operating an AirBnB business

[@jonlee5642]

I mean he's right on 1 part. Buy assets and not liables

[@you7uber5]

My banks offering 2.9% on cars right now.

[@BillyTwoGuns]

In what state can you enter into a legally binding contract while still a minor? I believe some states allow you to be on registration for insurance purposes but I’m not aware of any loans for children. If I’m wrong, I’m wrong.

[@LowJSamuel]

The original video fails to account for two things: risk and a person's potential willingness to buy a more expensive car if they choose to finance it versus if they buy cash. The part of this video though where it points out that the return won't be enough to pay the monthly car payment isn't very relevant, though. If the 14% truly were guaranteed and the person really was going to buy that same car if they paid cash, then it would make sense to do this, even if the returns are less than the car payment and you take the difference out of principle. But the risk makes it not worth it... hence why the bank doesn't do it themselves.

[@dennisbryan7522]

So I just bought a roush mustang and was trying to figure out if it was good deal so I went to cargarus type in my cars info and they gave me a cash offer for 800 dollars. The car is a 2005 roush mustang stage 2

[@lnr12241]

He thinks his the smartest guy in the room but everyone is laughing behind him

[@Segphalt]

The only time I have successfully engaged in arbitrage was in a videogame. That required I buy out the entire bottom of the market of a relatively rare item then relist at a higher price, I made 10% gains on my fake money. There was still risk there too cause for all I knew some other guy was sitting on a stockpile because the prices had dipped rather low compared to historic norms.

[@tbaker1985]

At the risk of getting steamrolled, my idea would be this. If you invest that 7k instead of putting it as a down payment and you did in fact get 80 dollars a month, over the course of 5 years (the length of the loan) you would make apprx about 4500 while spending 1500 in interest on the loan. So netting about 3k. Which would make sense to me. The down side would be you don't know how the market is gonna go. But you could make the risk smaller by investing in more safe things like bonds and of course you return would be smaller. Ed at VinWiki made a video similar to this about investing. There are always risks involved but as you said passive income is always a plus. The 14% is laughable. Probably not gonna happen. But getting 3-7% is pretty reasonable. Another example of why we need more financial education to our young people.

[@q7272]

there's a lot in there. First, they aren't taking into account anything like taxes. We don't know what the investment is but there's obviously some risk involved in it as well. nothing gets a guaranteed 14%. Beyond that, we do not know the terms of the car loan and what is required of it. She may or may not be breaching the terms of the loan by repurposing the $7k. Assuming the income is taxed as ordinary income and she's in the 10% income bracket she would only be netting 1-3% on the money. optimistically, that is around $1,000 over the course of the loan. That money would be much better served going into a roth IRA and being invested in equities. Assuming a 6% annual (making this overly simple and very conservative) interest rate and putting all the money in in january as 2022 and 2023 contributions it would become $85,753 by the time she was 59 and a half and could be withdrawn tax free.

[@MattButzen]

but bonds wouldn't get millions of views on TikTok :(

[@fcscouto]

@@q7272 "She may or may not be breaching the terms of the loan by repurposing the $7k. " the loan is 15k, for the car, the 7k is savings....

[@diegocella6791]

In the last video he mentioned the cobweb... now i can not stopping looking at ti....

[@ashishpatel350]

She's going to be on the pole when those air bnb loan defaults on you 😂 gucchi puchi arbitrage

[@youneszreika]

Why put that out in the public IS .they're so up their own arses. I agree with Rob

[@stefano973]

Good one Rob

[@toddtreat1835]

Great advice Rob. Leveraged debt is good until something goes wrong. As you noted the Airbnb could be very risky. Unfortunately this girl might learn a hard lesson when the Airbnb investment no longer can cover her car loan.

[@kodessa]

TIL about arbitrage and i still have no idea what it is

[@geoffreywhite1340]

Hey Rob, off topic what's going on with the Supra build?

[@WOWexe-ey9pm]

AirBnb “arbitrage” is when you rent an apartment and then Airbnb it out so you only need first & last and some money for furniture.

[@gwalker1652]

Somewhere a little girl with a $1500 car is crying.

[@MattButzen]

Same as arbitrage betting haha no one throwing that term around has enough money to make it worth the time

[@oneeleven9832]

Ha ha the internet is forever..dad won’t be able to forget his idiocy..ever😂

[@ES-wn6fx]

The blind leading the blind. A concise statement of what the majority of the internet is.