Mortgage rates are currently at an all time high since 2000(24 years) and based on statistics on inflation, we might see that number skyrocket further, a 30-year fixed rate was only 5% this time last year, so do I just keep waiting for a housing crash before buying or redirect my focus to the equity market
True, I mostly just buy and hold stocks, but my portfolio has been mostly in the red for quite awhile now. Unfortunately to be able to make good gains, you’ll need to be consistent and restructure your portfolio frequently.
This is precisely why I like having a portfolio coach guide my day-to-day market decisions: with their extensive knowledge of going long and short at the same time, using risk for its asymmetrical upside and laying it off as a hedge against the inevitable downward turns, their skillset makes it nearly impossible for them to underperform. I've been utilizing a portfolio coach for more than two years, and I've made over $800,000.
*The amazing skills of real estate are that it help keep the family, aid financial support, and can serve as a retirement tool when retired. It's passive income which rewards hard work and patience*
Correct me if I’m wrong, but a 401k is not meant to “leave to your kids”, it’s meant to provide funds in your retirement age, supplemental to social security. Why not set yourself up for wealth and teach your kids to build wealth for themselves, and you won’t have to worry about funding their future lifestyles.
Yeah, and The guy already admitted at the start that he doesn't know how to manage money. His statement on the 401k just proves his point. He's actually that bad with money.
Agree… 💯. But it’s funny, I too live in San Jose CA and I have have two sons, 28 and 23…. It’s so expensive here, I almost feel like I have to help them out. Yes, I’ve taught them financial principles, stay away from bad debt, invests… Etc. But rent and mortgages are out of wack here…. It’s crazy.
@@theshow1269 yeah, unfortunately you’re not the only one feeling this way, seems like the cost of things increasing so much in California, I feel like my aging parents and in laws are going to be in pickle if things keep going up here in California (auto insurance, utility costs, and groceries, etc)
@@VS-fo9py 100%…. My Mom has no money, but is currently in a care facility… me and my sister pay for it, plus insurance. My wife’s parents, same, we help them with rent. We do okay financially but It’s Scary!
A budget is important but it has to be built on a foundation of good habits that take a long time to develop. You could have Dave Ramsey himself spend an hour with most of these callers and give them a detailed plan but they have no frame of reference for execution. I think most of us heard the guy say his 2nd house was worth $2 million while his total debt was about $1.5 and we knew selling it was a no-brainer but he had no clue.
The construction business is hemorrhaging money. The credit card debt and zero retirement savings tells me the money is no longer there. That's where the panic is coming from.
I got a wild call today out of the blue from a guy who remodeled my master bathroom 3 years ago. He said he was going through a divorce and the contractor he was currently working for idled him because there was some building materials on backorder. He wanted to know if there was anything I needed done THIS WEEK. Dude is broke and about to get kicked out of his house. Construction business is boom or bust.
@@Primitive_Code >>>>> I want you to be RICH, Why would you wish Hard work on a child? My parents did not allow working. STUDY When you make money, it is hard to become a starving college student. I studied and went to a #1 university for FREE. $100K/yr in 1980, $250K mid 90's
@@aolvaar8792 That's great, you had rich parents that can afford that type of college and money for you, but not many parents can do that for their children. I got my bachelor's degree and parents didn't pay a dime. Also, children should be working from age 16 to cover their own expenses (maybe not rent) and save from then to pay for college or move out later.
YES!!! That's exactly her name (Elizabeth Rossiello) so many people have recommended highly about her and am just starting with her from Brisbane Australia 🇦🇺
Thats how leverage works, u will never prosper if u only buy rentals with cash, he has too many houses thats true, with proper rent income and his own income it could work
that's how things work in bayarea, if you expect to buy all your houses with cash in bayarea, you be renting all your life, and you still be broke, cause rent in bayarea is super highntoo 😂
This guy: I don’t know how to manage money and I’m broke! Dave: Take these steps and you’ll be debt free. This guy: Nah, never mind. Dave: *deep sigh, eye roll*😂
I've got two homes in the Midwest. They're not worth near as much as houses in CA would be - but they're both paid for and have been for over a decade ;)
@@lazyshira not at all. the guy in the call just need to sell one of his property, and he can end up buying the 2 properties in midwest and while still have extra cash left. Where as most properties in midwest would have a loss when they sell it cause the closing fees due to the value of the homes don't increase much over the years. Sure, it might seem safer in midwest, but you wouldn't actually end up with as much profit. It's just the difference in what path you choose.
AAAAAAAAAAAAAAAAAAAAAAAAAAAAHHHHHHHHHH! I said I was going to scream if I saw one more comment on a Ramsey video that said "We're not getting the whole story"
Something is weird. If he sold the second home, he could probably net about $300K. That could pay off the loan of the business and then he would have his current home to pay off. His problem would be significantly fixed. Something else has to be going on.
@@JK20239 He owes 850K (700K mortgage + 150K HELOC) on the investment property and it's worth 1.8M+. He'll do better than 300K, even after costs and taxes.
We don't view ourselves as broke and don't complain about our mortgages. Having two homes put us in the 7 figures net worth. The interest rates are low and the homes will be paid off before retirement. This guy took a HELOC and has a problem with his finances.
@@IrisP989 is your net worth actually millions if you're still paying for the houses? I think you can only count the equity towards your networth until the mortgages are fully paid off.
@@BanhMiAu The net worth is $1M plus (no need to say the exact number). You don't just look at the houses. You include everything in your net worth. You count the equities. That is market value of the homes minus what we still owe on them. We are in a high cost of living area in an expensive state and the appreciation grew over the years.
*I'm 54 and my wife and I are VERY worried about our future, gas and food prices rising daily. We have had our savings dwindle with the cost of living into the stratosphere, and we are finding it impossible to replace them. We can get by, but can't seem to get ahead. My condolences to anyone retiring in this crisis, 30 years nonstop just for a crooked system to take all you worked for.*
I feel your pain mate, as a fellow retiree, I'd suggest you look into passive index fund investing and learn some more. For me, I had my share of ups and downs when I first started looking for a consistent passive income so I hired an expert advisor for aid, and following her advice, I poured $30k in value stocks and digital assets, Up to 200k so far and pretty sure I'm ready for whatever comes.
My advice: for newbies to grow financially this year, invest. Saving is good, but investing elevates your finances. Why newbie make huge losses on trade is because investing without proper guidance can lead to mistakes and losses. that will stop you from trading, this has been one of the biggest problem to new traders, I've learned this from my own experience
Tracy Britt Cool Consulting was my hope during the 'bear summer' last year. I made so many mistakes but also learned so much from it, and of course from Tracy.
I found it useless without paying for connection to a bank/credit card with automatic updates. So, yeah, it’s “free” but I’d never use an app without automatic updates from spending.
His reasoning is that he wants to leave an inheritance. That makes no sense for someone who has credit card debt and no retirement savings. He's trying to skip to step 7 😂
The home will be taxed heavily with the inheritance tax. His kids will have to maintain the house with home insurance plus property taxes. This home is a burden, not life saving.
and his kids may have their own lives, spouses and kids when this man passes away. For myself, I don’t want to live in my parents house when they pass, I have my own home that I like.
@barnabusdoyle4930 in texas, homestead exemption can shed up to 1000 dollars a year with the reduction of 100k taxable value. It helps. But for the caller. he can't claim home stead exemption on the rental so if the 1 million dollar home is the rental, he's screwed. He's looking at paying close to 20k a year in taxes.
Sell the investment property, get rid of all debt. The money you will free up can be saved and invested. Best of all, you will have zero stress from being in debt.
Yeah I I lived in Palmdale for a while on contract at Skunkworks facility then NASA on the Space Coast before moving to Oklahoma. Since I already lived there going to aeronautics school I bought condo two years before moving there. Figured if I made the same salary anyway I might as well live somewhere more affordable with less expenses and retire early with my dream beach home debt free. One of the reasons I felt so good about paying off my home in nine years 16 years ago in Oklahoma was my realtor friend telling me it’s close to impossible to do that in California where she lives. She also said an identical condo with same amenities as mine would be $900k more and 3-4 times more in total monthly household living expenses.
@@blackworldtraveler3711 Palmdale is not what people refer to when talking about CA housing being unaffordable. Houses out in that desert shit hole are actually pretty cheap.
@@joejohn. It’s still California and I’m guessing you haven’t been there lately if at all. Up to individual to stay broke or live somewhere affordable. My pay was $160k-$200k a year in the early 90s. Lived in corporate owned home during my stay there. Employees I know who worked there lived in Santa Clarita area. Already said I worked at NASA on Florida space coast. Always wanted a beach condo there. Bought my dream condo with cash in 2008 on Marco Island.
That’s fine if they can afford their home, but if they can’t then it makes no sense. Worth is only extracted when it’s sold. They’re obsessed with the idea of equity being wealth.
@@tracyaf6084 Well said, but the truth is in Cali more people CAN'T afford them that CAN afford them. Yes they will never sell their homes because the idea of them being worth MILLIONS makes them want to hold onto them even more.
@@jeffreywhitaker5154 I get it. I live in Southern California. We’ve seen our house more than double in value in less than 15 years. We could barely afford a home in our neighborhood if we had to buy now. This caller is so ridiculously greedy he can’t see the obvious solution to his problem. He’d still own one amazingly expensive home 😂
@@tracyaf6084 Yes, but the difference between you and the caller is that the caller owns multiple homes, you just own one. So I would expect you to hold onto your house because you're already on the 'house elevator" that keeps going up. The caller like you said is so fucking greedy he cant even think about letting ONE of his houses go. I'm an RN, his wife is an RN they making BANK and he wants to grit and grind just to not get rid of one house?? SELL the house and make a lifestyle change and they should be in good shape. I live in Fresno and we are seeing an influx of SoCal and NorCal people selling their old ass 50yr old 2000sf home in Santa Monica and coming to Fresno and buying a BRAND NEW 4000 sf home on the nice part of town.
@@jeffreywhitaker5154 I know the type. I’ve got in-laws in Fresno who love to brag about their beautiful house. I understand the appeal but I’m not moving just to have more rooms to clean. When I move, I want it to be out of state.
@@watsonanthony8438 not if u can’t afford to pay the mortgage off. He has 1.6 million in debt if he sells at 2 million he would be lucky to gain 150,000 and be debt free if he doesn’t have any other debts. I would rather be debt free and have 150,000 invested in stocks as opposed to owing 1.6 million.
I have a question and this may sound stupid...when was leaving gobs of money for inheritance mandatory? He said he was holding that $2Mil house so his kids would have something.
Who ever said it was mandatory? He’s just looking out after his kids. He probably realizes that if things will continue to go the way they’re going, his kids will really have a difficult time with this cost of living crisis.
Whats the point of having stuff if it makes you miserable and in constant stress... Mostly pride and keeping up appearances, its as someone else here said hes not leaving any inheritance just s legancy of debt if he has a heart attack tomorrow from the worry . Then there's a business thsts stiffled and drawn off and not getting the reinvestment to grow bigger as his distraction is the lifestyle and the quudoss that is represents. Its very fragile if theres a crash in the market
Just sell the second house. 😂 His kids can make their own way! My parents gave up a lot to raise me and my younger siblings so I honestly expect nothing from at this point. I’d be totally fine if they left me nothing in their will and gave everything to my siblings.
Kids need either a sizable start up fund from their parents or their core family needs to have at least one high income job to live somewhat comfortably in California.
People like these are one of the reasons there are poor housing supply and the typical responsible American is being priced out of a basic home. Its pretty sad that banks let people like this cause the mess that we are in.
The housing market is inflated and oversaturated with homes being on the market with astronomical price tags just stagnant for months. It is very clear that our generation will be likely one of the most devastating bubble pops in modern history. Seeking best possible ways to grow 250k into $1m+ and get a good house for retirement, I'm 54.
I don't think here is the place for personalized investment guidance. However, I suggest consulting with a reliable advisor like Azul to ensure appropriate retirement planning.
I’m closing in on retirement, and I have benefitted much from using a financial advisor. I didn’t really start early, so I knew the compound interest of index fund investing would not work for me. Funny how I pulled in over 80% profit than some of my peers who have been investing for many years. Maybe you should consider this too
Well, there are a few out there who know what they are doing. I tried a few in the past years, but I’ve been with Melissa Terri Swayne for the last five years or so, and her returns have been pretty much amazing.
I just looked her up on the internet and found her webpage with her credentials. I wrote her an outlining my financial objectives and planned a call with her.
I have 2 homes in the Bay Area and the rents are through the roof. If that house is worth $2 million he can rent it out for $6k -7k a month, he just needs to clean up the loans and get rid of any debt. I wouldn’t sell that rental property. Not in the Bay Area. His kids will never be able to buy a home when they grow up
@@pjsaki4797 he's servicing the property taxes because he can't claim homestead exemption on rental property. The property taxes alone on house that's 2 million is 1%, 20k a year. Good luck
@@JK20239no need for homestead exemption. California has prop 13/19 with capped property taxes. Many people here have $2-4m homes and pay only a few thousand a year in property taxes.
@@jml9550Prop 19 is already in effect as of 2021, but if his kid’s inherit and live there as their primary home, they are able to claim an exemption ($1m assessment limit).
For the Newbie if you are actually trading in the crypto space and you don't have a sound mentor. Then you are certainly going to get liquidated in 90% of your trades. Yeah that's sad truth. I remember when i just got into crypto back in 2019 but later in 2020 i ended up selling it because i have lost alot trading all by myself without a guide. Got back into crypto early in 2024 with $20k and I'm up with $232k in a short period of time
I'm new to cryptocurrency and i don't understand how it really works. How can someone know the right approach to investing and making good profit from cryptocurrency investments?
I started working with devion back in February, and my financial goals have been clearer. It's like having a strategic partner for my money with a solid track record.
@Hectrrod it's already at risk. If he can't pay the property taxes, county will seek a judgement and seize the home. Property taxes have to be paid first.
the way explained it to this guy that he needs that detailed plan like his construction is excellent... people will hang up and not do it and that really is all you have to do to look forward
I dont think Dave ever asking him what the mortgage rates were. The callers struggling because everything theyre earning is going into equity, or interest. Not entirely bad.
I live in San Jose CA… Real-estate is insane here. We’re 45 minutes from San Fran, Bay Area…. Ppl are putting up ADUs in their backyards like crazy, finding alternative housing for family.
Why not pay off your debt with your 2 incomes and keep both properties? Dave doesn’t look at house loans as good debt. As long as you have enough cash on reserve, you should withstand most downturns. Just pay off your loan and have 6 months of expenses on reverse for the rental. The rental property is 100% cash flowing if his loan is only $700k. It sounds like he has owned it for a while since it has appreciated to $2m. Why not pay the mortgage and when it is paid off, it will be his retirement?
Dave's sooo different than when I used to listen as a SAHM, over 20 years ago. He used to talk about the BABY STEPS on every call. Now he jumps around.... pay off everything, even the house, without first talking about an Emergency Fund or 15% for retirement. The poor Baby Steps have been all but forgotten. 😢
I watch this every so often and don't get people. Folks have to watch the show to call and get advice. They know what's coming and hesitate to answer questions then seem to guess at the values of their stuff or amount of debt.
I'm so sick of this "houses are a good investment" culture. Isn't a mutual fund a million times less headache and with no liability? The ROI is on par on average anyways
I hope this man is reading these comments because sir I have a message for you. I am the oldest of 4 siblings and there is not an inheritance amount or asset in the world that would make me happier than my parents being able to retire comfortably. My mother's mom is currently in a state provided home and her finance situation combined with her declining health (due to weight mostly) makes it very hard on her daughter (my mom). They get in fights all the time (better since she moved from my parents home into assisted living) and my mother resents her now. Please even if you cannot pass a DIME to your children set yourself up for retirement. It's the best gift you can give.
I have a similar situation if anyone can give me an opinion I have a mortgage for my primary home and another one for a land ( that can possibly be useful in the future to sell or build on it ) 180 thousand in consumer debt If I sold the land now I have 200k in equity, which can make me debt free except my primary mortgage If I kept my land I will stay in debt for more than 2 years I think about it daily
*Amazing video despite the economy disaster and political war in the country, investment remains best for earnings. Imagine you work for 40yrs to have $1M in your retirement, meanwhile some people are putting just $10K into trading from just few months ago and now they are multimillionaires*
Hello , I am very interested. As you know, there are tons of investments out there and without solid knowledge, I can't decide what is best. Can you explain further how you invest and earn?
Good day all👍🏻 from Australia 🇦🇺. I have read a lot of posts that people are very happy with the financial guidance she is giving them ! What way can I get to her exactly ?
YES!!! That's exactly her name (MARIA FRANCES HANLON) so many people have recommended highly about her and am just starting with her 😊from Brisbane Australia🇦🇺
This guy is not the smartest tool in the shed. Sell one of the house and pay all your loans. Also the money that you saved on interest alone you could put that on a retirement account. Smh!
Yes, both federal and state level. I have 3 rentals all paid off, I will have to live in every one of them for 2 years to get $500k tax exempt. The remaining profit after $500k+base will be taxed as long time capital gain.
He needs to move to the rental and sell the primary. Then he can exempt $500,000 from income tax. That will save about $100,000 vs selling the rental. Property tax will be killing him even paid off. He will probably owe about $1000 a month in tax. Probably wants to keep the primary loan if it is under 4% as after tax deduction in CA That loan would be less than 2% and he could get a 5 year CD that will pay more.
To a lot of Californias, home ownership is seen as equivalent to wealth because it can seem so out of reach to poor and middle class people. And the more homes in California that you own, the more wealth you must have. So people do whatever is possible to own as much real estate as possible even though homes appreciate slower than stocks and come with lots of extra costs. Owning your own home can make some sense. But owning more real estate than your own home and maybe an ADU or triplex that you live-in is a bad idea for most people. Far better to invest in stocks. They’re more boring and less of a show-off to friends. But they are more simple and have higher average returns with fewer costs. It shouldn’t be viewed as shameful to own no property and instead invest over $1,000 a month into stocks as well. That will likely make one a millionaire too, if one starts early and is consistent. Obviously having a home and lots of stock investments is terrific. But if owning a house leaves you without the ability to invest at least $1,000 a month into stocks from day 1 of ownership, I wouldn’t buy. Even if rents go up a lot recently in your area. Rent will always be influenced by the market demand more than what an owner wants to rent a place for, in order to make a good profit.
I bought my two homes as a nice place and area to live and enjoy as priority. Quiet gated condo community between suburbs and countryside in Oklahoma and nice 4th floor condo with marina,beach,and Gulf views from large balcony in Florida which is my dream home. The two rentals I bought in 2008 and sold in 2023 were investments and income streams.
Our economy struggling with uncertainties, housing issues, foreclosures, global fluctuations, and pandemic aftermath, causing instability. Rising inflation, sluggish growth, and trade disruptions need urgent attention from all sectors to restore stability and stimulate growth.
With the US dollar losing value to inflation and other currencies gaining traction, uncertainty looms. Yet, many still trust in the Dollar's perceived safety. Worried about my $420,000 retirement savings losing value, I seek alternative security for my money.
@@EdmundEthan093 With my demanding job, I lack time for investment analysis. For seven years, a fiduciary has managed my portfolio, adapting to market conditions, enabling successful navigation and informed decisions. Consider a similar approach. It appears that your investment advisor is highly skilled. Could you please let me know if you are still in contact with this advisor and, if so, how?
@@ericgrantl Claire Robert’s Durand is the licensed coach I use. Just research the name. You'd find necessary details to work with a correspondence to set up an appointment
He has no frigging idea what the hell he’s doing !!! He bit off more he can chew !! His finances are a frigging mess !! He doesn’t know how much is coming in and going out !! Simple as that 🙄🙄
Mortgage rates are currently at an all time high since 2000(24 years) and based on statistics on inflation, we might see that number skyrocket further, a 30-year fixed rate was only 5% this time last year, so do I just keep waiting for a housing crash before buying or redirect my focus to the equity market
True, I mostly just buy and hold stocks, but my portfolio has been mostly in the red for quite awhile now. Unfortunately to be able to make good gains, you’ll need to be consistent and restructure your portfolio frequently.
This is precisely why I like having a portfolio coach guide my day-to-day market decisions: with their extensive knowledge of going long and short at the same time, using risk for its asymmetrical upside and laying it off as a hedge against the inevitable downward turns, their skillset makes it nearly impossible for them to underperform. I've been utilizing a portfolio coach for more than two years, and I've made over $800,000.
my partner’s been considering going the same route, could you share more info please on the advisor that guides you.
Rebecca Nassar Dunne is the licensed advisor I use. Just search the name. You’d find necessary details to work with to set up an appointment.
Thank you for the lead. I searched her up, and I have sent her an email. I hope she gets back to me soon.
*The amazing skills of real estate are that it help keep the family, aid financial support, and can serve as a retirement tool when retired. It's passive income which rewards hard work and patience*
It’s the same talk everywhere but no one is saying how to get started?
I work with a *Financial adviser;*
*Donald Nathan Scott.*
How do I reach him ;
You can reach him by searching this names 👇
BORROWING MONEY TO MAKE INVESTMENTS USUALLY ENDS UP IN A MESS.
Every time it never fails.
Ok but he has 1.3M in equity from that investment. Pretty sure he doesn’t regret borrowing to buy it.
@@arienfoxunless you know what you are doing and are disciplined on your exit plan regardless of profit or loss.
@@BedWetter707 There is nothing in this world that can make me ever go back to borrowing money for anything else.
@@Josh-lp2ng It's called "lucky".
Correct me if I’m wrong, but a 401k is not meant to “leave to your kids”, it’s meant to provide funds in your retirement age, supplemental to social security. Why not set yourself up for wealth and teach your kids to build wealth for themselves, and you won’t have to worry about funding their future lifestyles.
He's simply using it as an excuse not to sell the house nothing more.
Yeah, and The guy already admitted at the start that he doesn't know how to manage money. His statement on the 401k just proves his point. He's actually that bad with money.
Agree… 💯. But it’s funny, I too live in San Jose CA and I have have two sons, 28 and 23…. It’s so expensive here, I almost feel like I have to help them out. Yes, I’ve taught them financial principles, stay away from bad debt, invests… Etc. But rent and mortgages are out of wack here…. It’s crazy.
@@theshow1269 yeah, unfortunately you’re not the only one feeling this way, seems like the cost of things increasing so much in California, I feel like my aging parents and in laws are going to be in pickle if things keep going up here in California (auto insurance, utility costs, and groceries, etc)
@@VS-fo9py 100%…. My Mom has no money, but is currently in a care facility… me and my sister pay for it, plus insurance. My wife’s parents, same, we help them with rent. We do okay financially but It’s Scary!
Caller: I'm house smart.
Papa: You are house stupid.
He probably would make 1m from that investment property…
This shows how crucial it is to have a solid budget in place. If you can manage a construction project, you can definitely manage a household budget.
A budget is important but it has to be built on a foundation of good habits that take a long time to develop. You could have Dave Ramsey himself spend an hour with most of these callers and give them a detailed plan but they have no frame of reference for execution. I think most of us heard the guy say his 2nd house was worth $2 million while his total debt was about $1.5 and we knew selling it was a no-brainer but he had no clue.
Why is he calling with this foolishness? Sell the house and you’re debt free. Sir you have no problem here, you want to make one.
Bragging?
The construction business is hemorrhaging money. The credit card debt and zero retirement savings tells me the money is no longer there. That's where the panic is coming from.
Business has to be falling off.
I got a wild call today out of the blue from a guy who remodeled my master bathroom 3 years ago. He said he was going through a divorce and the contractor he was currently working for idled him because there was some building materials on backorder. He wanted to know if there was anything I needed done THIS WEEK. Dude is broke and about to get kicked out of his house. Construction business is boom or bust.
Greatest gifts you can give to your kids are wisdom and hard work, not money.
Gift of a relationsip with Jesus
My father said to me:
I never want you to have to work,
and I want you to pay $1MM/yr in taxes.
@@aolvaar8792 Huh?
@@Primitive_Code >>>>> I want you to be RICH, Why would you wish Hard work on a child?
My parents did not allow working.
STUDY
When you make money, it is hard to become a starving college student.
I studied and went to a #1 university for FREE.
$100K/yr in 1980, $250K mid 90's
@@aolvaar8792 That's great, you had rich parents that can afford that type of college and money for you, but not many parents can do that for their children. I got my bachelor's degree and parents didn't pay a dime. Also, children should be working from age 16 to cover their own expenses (maybe not rent) and save from then to pay for college or move out later.
I'm favoured, $50K every week! I can now give back to the locals in my communitv and also support God's work and the church.God bless
America
How
..? Am a newbie in crypto investment, please can you guide me through on how you made profit?
A lot of people still make massive profit from the crypto market, all you really need is a relevant information and some professional advice.
No I don't trade on my own anymore, I always required help and assistance
From my personal financial advisor
..
YES!!! That's exactly her name (Elizabeth Rossiello) so many people have recommended highly about her and am just starting with her from Brisbane Australia 🇦🇺
Sir you don’t own two homes, you borrowed two homes. 🏠
Thats how leverage works, u will never prosper if u only buy rentals with cash, he has too many houses thats true, with proper rent income and his own income it could work
@@johndone8045you should ask yourself what you consider prospering
This right here. Exactly.
that's how things work in bayarea, if you expect to buy all your houses with cash in bayarea, you be renting all your life, and you still be broke, cause rent in bayarea is super highntoo 😂
goodluck saving 2mil to "own" the home
Why did this guy even call? It's such a simple solution.
😂😂😂😂
probably because he wanted a solution to keep the property even know he knows to sell it
He can sell both homes and buy somwhere in the bay area for alot less. San jose is crazy. You need to be making like 400k to live there comfortably.
He owns a construction company he should be making more than 400k but clearly he’s terrible at business.
@@Ap_twsh I worked for a guy with a construction company and he went bankrupt within the first year. Not every company is profitable.
That is crazy!!!!
Sell both homes and move to Alabama
Land is cheap in Iraq !
This guy: I don’t know how to manage money and I’m broke!
Dave: Take these steps and you’ll be debt free.
This guy: Nah, never mind.
Dave: *deep sigh, eye roll*😂
I've got two homes in the Midwest. They're not worth near as much as houses in CA would be - but they're both paid for and have been for over a decade ;)
❤
Both broken POS probably.
You're better off than they are.
@@lazyshira not at all. the guy in the call just need to sell one of his property, and he can end up buying the 2 properties in midwest and while still have extra cash left. Where as most properties in midwest would have a loss when they sell it cause the closing fees due to the value of the homes don't increase much over the years. Sure, it might seem safer in midwest, but you wouldn't actually end up with as much profit. It's just the difference in what path you choose.
We are still sitting on our 3% home mortgage, but I paid off the mortgage on my (one) rental home, and it feels wonderful!
He needs to sell one of the houses before the housing bubble pops.
This is a very california story 😣 to many of friends and friends parents pulled this kind of life 😭
Sell your second house. This guy is not telling the full story.
Dude has 2 extra houses
It’s cool that you know so much about his life. Wow, you’ve got it all figured out
@@19hundoc47It's not hard. The guy's broke.
AAAAAAAAAAAAAAAAAAAAAAAAAAAAHHHHHHHHHH!
I said I was going to scream if I saw one more comment on a Ramsey video that said "We're not getting the whole story"
Something is weird. If he sold the second home, he could probably net about $300K. That could pay off the loan of the business and then he would have his current home to pay off.
His problem would be significantly fixed. Something else has to be going on.
Nope....Capital gains taxes... he's looking at 33% of 300k... that's 100k...
@@JK20239 He owes 850K (700K mortgage + 150K HELOC) on the investment property and it's worth 1.8M+. He'll do better than 300K, even after costs and taxes.
@@JK20239you forgot that taxes don't exist in the Ramsey world
@@JK20239 Capital gains is not 33%. And he won't be paying that on 300k.
We don't know how much he bought the house for.
He said it's worth $2M and he owes $850k. How did you get $300k out of that?
The two homes in California might be the cause of being broke.
exactly
We don't view ourselves as broke and don't complain about our mortgages. Having two homes put us in the 7 figures net worth. The interest rates are low and the homes will be paid off before retirement. This guy took a HELOC and has a problem with his finances.
@@IrisP989 HELOCS are deadly.
@@IrisP989 is your net worth actually millions if you're still paying for the houses? I think you can only count the equity towards your networth until the mortgages are fully paid off.
@@BanhMiAu The net worth is $1M plus (no need to say the exact number). You don't just look at the houses. You include everything in your net worth. You count the equities. That is market value of the homes minus what we still owe on them. We are in a high cost of living area in an expensive state and the appreciation grew over the years.
*I'm 54 and my wife and I are VERY worried about our future, gas and food prices rising daily. We have had our savings dwindle with the cost of living into the stratosphere, and we are finding it impossible to replace them. We can get by, but can't seem to get ahead. My condolences to anyone retiring in this crisis, 30 years nonstop just for a crooked system to take all you worked for.*
I feel your pain mate, as a fellow retiree, I'd suggest you look into passive index fund investing and learn some more. For me, I had my share of ups and downs when I first started looking for a consistent passive income so I hired an expert advisor for aid, and following her advice, I poured $30k in value stocks and digital assets, Up to 200k so far and pretty sure I'm ready for whatever comes.
My advice: for newbies to grow financially this year, invest. Saving is good, but investing elevates your finances. Why newbie make huge losses on trade is because investing without proper guidance can lead to mistakes and losses. that will stop you from trading, this has been one of the biggest problem to new traders, I've learned this from my own experience
Tracy Britt Cool Consulting was my hope during the 'bear summer' last year. I made so many mistakes but also learned so much from it, and of course from Tracy.
I'm surprised that this name is being mentioned here, I stumbled upon one of her clients testimonies on CNBC news last week...
I keep hearing a lot about Mis. Tracy Britt Cool Consulting O'Reilly, she must be really good
I like Dave's and George's advice. Have a good day everyone! 😊✨
Your kids are going to sell those houses and go through the money in 2 or 3 years
Even if not, maybe they want to live somewhere else or in a smaller/bigger/different house.
This guy has 2 homes and gets EveryDollar for free? Dave I have 2 kids and drive a 2007 Toyota. Can I have it for free too????
It is a free app.
I found it useless without paying for connection to a bank/credit card with automatic updates. So, yeah, it’s “free” but I’d never use an app without automatic updates from spending.
@@dependablenh4472 clearly you are being dense on purpose. We ALL know he’s getting the premium version for free. Go away troll
His reasoning is that he wants to leave an inheritance. That makes no sense for someone who has credit card debt and no retirement savings. He's trying to skip to step 7 😂
The home will be taxed heavily with the inheritance tax. His kids will have to maintain the house with home insurance plus property taxes. This home is a burden, not life saving.
and his kids may have their own lives, spouses and kids when this man passes away. For myself, I don’t want to live in my parents house when they pass, I have my own home that I like.
The best thing a parent can do for their kids is to take care of themselves so the kids don’t have to worry about them.
@2:30 Dave plugs both the app and the program like a pro! 😅
yup. like clockwork 😅
@@Kim-bv3xn Yes, Dave owns/runs a business.
This guy is much well off than 99% of others in Bay Area. Two houses in SJ worth total 4m!
@@jt6231 property taxes??? 1% of 4 million is 40k a year...
He’s broke…
@@JK20239 property tax depending on the city is 1.25%-1.5%
Both houses are probably 1,700 sq. Ft. Max
Sell your homes bro
Imagine the property taxes. You can only get homestead exemption for 1 home, not 2. Good luck😂😂😂😂
In commiefornia.
How much do you think the homestead exemption removes from property taxes? In Oklahoma my homestead drops our taxes by $100, less than 5%
@barnabusdoyle4930 in texas, homestead exemption can shed up to 1000 dollars a year with the reduction of 100k taxable value. It helps. But for the caller.
he can't claim home stead exemption on the rental so if the 1 million dollar home is the rental, he's screwed. He's looking at paying close to 20k a year in taxes.
@@JK20239 He can depreciate the rental but when he goes to sell he's cooked.
@djpuplex can't depreciate the taxable value. County will suck him dry of the property taxes...
Sell the investment property, get rid of all debt. The money you will free up can be saved and invested. Best of all, you will have zero stress from being in debt.
@GAFB1122 if he sells, then he's Hit with a capital gains tax. He'll have to get into debt to pay off the tax bomb.
The bay is full of people like this. They do great in hot bubble times then when the bubbles ends they are in trouble. This guy at least has assets.
Living in california is the problem. Wow paying on 2 homes in califonia is crazy..
Yeah I I lived in Palmdale for a while on contract at Skunkworks facility then NASA on the Space Coast before moving to Oklahoma. Since I already lived there going to aeronautics school I bought condo two years before moving there.
Figured if I made the same salary anyway I might as well live somewhere more affordable with less expenses and retire early with my dream beach home debt free.
One of the reasons I felt so good about paying off my home in nine years 16 years ago in Oklahoma was my realtor friend telling me it’s close to impossible to do that in California where she lives.
She also said an identical condo with same amenities as mine would be $900k more and 3-4 times more in total monthly household living expenses.
@@blackworldtraveler3711 Palmdale is not what people refer to when talking about CA housing being unaffordable. Houses out in that desert shit hole are actually pretty cheap.
@@blackworldtraveler3711 Also... beach home? How does that relate to Palmdale or Oklahoma?
@@joejohn. SMH, that's why all the people that lived in "LA" now moving to Pdale and they're mostly blacks and mexicans.
@@joejohn.
It’s still California and I’m guessing you haven’t been there lately if at all.
Up to individual to stay broke or live somewhere affordable.
My pay was $160k-$200k a year in the early 90s. Lived in corporate owned home during my stay there.
Employees I know who worked there lived in Santa Clarita area.
Already said I worked at NASA on Florida space coast. Always wanted a beach condo there. Bought my dream condo with cash in 2008 on Marco Island.
Never understood people paying mortgage talking about how they own the home.
As a native Cali, people NEVER like the idea of selling their houses because they're worth so much. This clown is NEVER going to sell his houses.
That’s fine if they can afford their home, but if they can’t then it makes no sense. Worth is only extracted when it’s sold. They’re obsessed with the idea of equity being wealth.
@@tracyaf6084 Well said, but the truth is in Cali more people CAN'T afford them that CAN afford them. Yes they will never sell their homes because the idea of them being worth MILLIONS makes them want to hold onto them even more.
@@jeffreywhitaker5154 I get it. I live in Southern California. We’ve seen our house more than double in value in less than 15 years. We could barely afford a home in our neighborhood if we had to buy now. This caller is so ridiculously greedy he can’t see the obvious solution to his problem. He’d still own one amazingly expensive home 😂
@@tracyaf6084 Yes, but the difference between you and the caller is that the caller owns multiple homes, you just own one. So I would expect you to hold onto your house because you're already on the 'house elevator" that keeps going up. The caller like you said is so fucking greedy he cant even think about letting ONE of his houses go. I'm an RN, his wife is an RN they making BANK and he wants to grit and grind just to not get rid of one house?? SELL the house and make a lifestyle change and they should be in good shape. I live in Fresno and we are seeing an influx of SoCal and NorCal people selling their old ass 50yr old 2000sf home in Santa Monica and coming to Fresno and buying a BRAND NEW 4000 sf home on the nice part of town.
@@jeffreywhitaker5154 I know the type. I’ve got in-laws in Fresno who love to brag about their beautiful house. I understand the appeal but I’m not moving just to have more rooms to clean. When I move, I want it to be out of state.
Sell the house worth $2M and get out of debt. No brainer to me!
He doesn’t own anything, he owe on his houses, his business and i bet he has a car note…
@@akui88 he don't even own those 2 houses. He has to pay rent every year through property taxes...
Truck note
If he sell he can get 2 million on the secondary home. It’s called equity
@@watsonanthony8438 not if u can’t afford to pay the mortgage off.
He has 1.6 million in debt if he sells at 2 million he would be lucky to gain 150,000 and be debt free if he doesn’t have any other debts.
I would rather be debt free and have 150,000 invested in stocks as opposed to owing 1.6 million.
He doesn’t own two houses he doesn’t even own one. Once they are paid off then he owns them.
I have a question and this may sound stupid...when was leaving gobs of money for inheritance mandatory?
He said he was holding that $2Mil house so his kids would have something.
Who ever said it was mandatory? He’s just looking out after his kids. He probably realizes that if things will continue to go the way they’re going, his kids will really have a difficult time with this cost of living crisis.
Whats the point of having stuff if it makes you miserable and in constant stress... Mostly pride and keeping up appearances, its as someone else here said hes not leaving any inheritance just s legancy of debt if he has a heart attack tomorrow from the worry . Then there's a business thsts stiffled and drawn off and not getting the reinvestment to grow bigger as his distraction is the lifestyle and the quudoss that is represents. Its very fragile if theres a crash in the market
Just sell the second house. 😂 His kids can make their own way! My parents gave up a lot to raise me and my younger siblings so I honestly expect nothing from at this point. I’d be totally fine if they left me nothing in their will and gave everything to my siblings.
Kids need either a sizable start up fund from their parents or their core family needs to have at least one high income job to live somewhat comfortably in California.
People like these are one of the reasons there are poor housing supply and the typical responsible American is being priced out of a basic home. Its pretty sad that banks let people like this cause the mess that we are in.
Plenty of cheap houses to buy, the problem is entitled people want the CA lifestyle on an Alabama budget. Got to get in where ya fit in.
The housing market is inflated and oversaturated with homes being on the market with astronomical price tags just stagnant for months. It is very clear that our generation will be likely one of the most devastating bubble pops in modern history. Seeking best possible ways to grow 250k into $1m+ and get a good house for retirement, I'm 54.
I don't think here is the place for personalized investment guidance. However, I suggest consulting with a reliable advisor like Azul to ensure appropriate retirement planning.
I’m closing in on retirement, and I have benefitted much from using a financial advisor. I didn’t really start early, so I knew the compound interest of index fund investing would not work for me. Funny how I pulled in over 80% profit than some of my peers who have been investing for many years. Maybe you should consider this too
I've been considering getting one, but haven't been proactive about it. Can you recommend your advisor? I could really use some assistance.
Well, there are a few out there who know what they are doing. I tried a few in the past years, but I’ve been with Melissa Terri Swayne for the last five years or so, and her returns have been pretty much amazing.
I just looked her up on the internet and found her webpage with her credentials. I wrote her an outlining my financial objectives and planned a call with her.
I have 2 homes in the Bay Area and the rents are through the roof. If that house is worth $2 million he can rent it out for $6k -7k a month, he just needs to clean up the loans and get rid of any debt. I wouldn’t sell that rental property. Not in the Bay Area. His kids will never be able to buy a home when they grow up
@@pjsaki4797 he's servicing the property taxes because he can't claim homestead exemption on rental property. The property taxes alone on house that's 2 million is 1%, 20k a year. Good luck
@@JK20239no need for homestead exemption. California has prop 13/19 with capped property taxes. Many people here have $2-4m homes and pay only a few thousand a year in property taxes.
@@Wes_Huexactly on Prop 13. But it may be too late to add his kids into the deed before prop 19 takes into effect?
@@jml9550Prop 19 is already in effect as of 2021, but if his kid’s inherit and live there as their primary home, they are able to claim an exemption ($1m assessment limit).
Sell the second home, pay off everything and become a super saver utilizing retirement programs.
Something tells me that this guys kids are living in those two houses…so selling houses maaaaaay come with some drama
Not many people stick to the plan, they make excuses and go off it. Just stay structured for a time and see what happens.
For the Newbie if you are actually trading in the crypto space and you don't have a sound mentor. Then you are certainly going to get liquidated in 90% of your trades. Yeah that's sad truth. I remember when i just got into crypto back in 2019 but later in 2020 i ended up selling it because i have lost alot trading all by myself without a guide. Got back into crypto early in 2024 with $20k and I'm up with $232k in a short period of time
I'm new to cryptocurrency and i don't understand how it really works. How can someone know the right approach to investing and making good profit from cryptocurrency investments?
As a beginner, what do i need to do? how can i invest, on which platform If you know any please share.
I started working with devion back in February, and my financial goals have been clearer. It's like having a strategic partner for my money with a solid track record.
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Of all the debts I still don't get the heloc thing. Why just don't get a personal loan? Why put your property at risk?
@Hectrrod it's already at risk. If he can't pay the property taxes, county will seek a judgement and seize the home. Property taxes have to be paid first.
the way explained it to this guy that he needs that detailed plan like his construction is excellent... people will hang up and not do it and that really is all you have to do to look forward
I dont think Dave ever asking him what the mortgage rates were. The callers struggling because everything theyre earning is going into equity, or interest. Not entirely bad.
I live in San Jose CA… Real-estate is insane here. We’re 45 minutes from San Fran, Bay Area…. Ppl are putting up ADUs in their backyards like crazy, finding alternative housing for family.
I'm favoured, $27K every week! I can now give back to the locals in my community and also support God's work and the church. God bless America.
If that house was paid off he would be right 1.8-2 million dollar house would make a good investment to sell for retirement
Why not pay off your debt with your 2 incomes and keep both properties? Dave doesn’t look at house loans as good debt. As long as you have enough cash on reserve, you should withstand most downturns. Just pay off your loan and have 6 months of expenses on reverse for the rental.
The rental property is 100% cash flowing if his loan is only $700k. It sounds like he has owned it for a while since it has appreciated to $2m. Why not pay the mortgage and when it is paid off, it will be his retirement?
Poor nurse wife she is the bread winner. All money is going to his losing business he keeps just to keep his fake pride that he's a business owner.
Dave's sooo different than when I used to listen as a SAHM, over 20 years ago. He used to talk about the BABY STEPS on every call. Now he jumps around.... pay off everything, even the house, without first talking about an Emergency Fund or 15% for retirement. The poor Baby Steps have been all but forgotten. 😢
That certainly sounded like an easy one to get out of the mess.
If he sells the second, he can be debt free. I am doing that, man
I would keep the houses and cut back other expenses. This guy is a millionarie
Caller: My bank owns two homes.
My business owns me.
and my wife has a job
It's amazing how much Dave has amassed because people can't do simple arithmetic.
The kids don't even care, sell that house 😒 and stop laughing so much.
Gosh.
Great clip 💪🏼
I watch this every so often and don't get people.
Folks have to watch the show to call and get advice. They know what's coming and hesitate to answer questions then seem to guess at the values of their stuff or amount of debt.
I'm so sick of this "houses are a good investment" culture. Isn't a mutual fund a million times less headache and with no liability? The ROI is on par on average anyways
I hope this man is reading these comments because sir I have a message for you. I am the oldest of 4 siblings and there is not an inheritance amount or asset in the world that would make me happier than my parents being able to retire comfortably. My mother's mom is currently in a state provided home and her finance situation combined with her declining health (due to weight mostly) makes it very hard on her daughter (my mom). They get in fights all the time (better since she moved from my parents home into assisted living) and my mother resents her now. Please even if you cannot pass a DIME to your children set yourself up for retirement. It's the best gift you can give.
Keep finances simple - sell the house & pay off the cards. Extra money put away for retirement / kids. Must be more to this situation
I have a similar situation if anyone can give me an opinion
I have a mortgage for my primary home
and another one for a land ( that can possibly be useful in the future to sell or build on it )
180 thousand in consumer debt
If I sold the land now I have 200k in equity, which can make me debt free except my primary mortgage
If I kept my land I will stay in debt for more than 2 years
I think about it daily
*Amazing video despite the economy disaster and political war in the country, investment remains best for earnings. Imagine you work for 40yrs to have $1M in your retirement, meanwhile some people are putting just $10K into trading from just few months ago and now they are multimillionaires*
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believe in God
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This guy is not the smartest tool in the shed. Sell one of the house and pay all your loans. Also the money that you saved on interest alone you could put that on a retirement account. Smh!
he thinks he maybe could have 20K in CC debt... i wouldn't trust this guy to manage building my home....
If you’re broke, you’re going to burden your kids with taking care of you after retirement
CA is an awful state for a rental when you sell it. We just did and the taxes paid to state and federal cost a fortune.
Rent on a 2 million home is maybe 6-8k a month.
If mortgage is like 4k, I'll keep it as a rental.
Mortgage, property taxes, insurance, and emergency funds for all the stuff that goes wrong with a rental. Sell it.
@@thirdcoast-nx7jx Most times insurance and taxes are included in your monthly payments.
@@thirdcoast-nx7jx Most mortgages includes insurance and taxes in the monthly payment.
@@thirdcoast-nx7jx The is included in the mortgage payment.
Most times, beside maintenance, it's included every month.
so, he has $1.4m and doesn't know how to get out of debt ? 😂
IF HE SELLS THE RENTAL, WILL HE NOT GET HIT WITH A BIG CAPITAL GAIN?
@@miketracy9256 yup. Not only federal but I think california... he's looking at both coming after him for capital gains taxes...
Yes, both federal and state level. I have 3 rentals all paid off, I will have to live in every one of them for 2 years to get $500k tax exempt. The remaining profit after $500k+base will be taxed as long time capital gain.
He needs to move to the rental and sell the primary. Then he can exempt $500,000 from income tax. That will save about $100,000 vs selling the rental. Property tax will be killing him even paid off. He will probably owe about $1000 a month in tax. Probably wants to keep the primary loan if it is under 4% as after tax deduction in CA That loan would be less than 2% and he could get a 5 year CD that will pay more.
Sir, your second home that is leveraged to the hilt is not going to help your kids. Sell the darn thing.
To a lot of Californias, home ownership is seen as equivalent to wealth because it can seem so out of reach to poor and middle class people. And the more homes in California that you own, the more wealth you must have. So people do whatever is possible to own as much real estate as possible even though homes appreciate slower than stocks and come with lots of extra costs. Owning your own home can make some sense. But owning more real estate than your own home and maybe an ADU or triplex that you live-in is a bad idea for most people. Far better to invest in stocks. They’re more boring and less of a show-off to friends. But they are more simple and have higher average returns with fewer costs. It shouldn’t be viewed as shameful to own no property and instead invest over $1,000 a month into stocks as well. That will likely make one a millionaire too, if one starts early and is consistent.
Obviously having a home and lots of stock investments is terrific. But if owning a house leaves you without the ability to invest at least $1,000 a month into stocks from day 1 of ownership, I wouldn’t buy. Even if rents go up a lot recently in your area. Rent will always be influenced by the market demand more than what an owner wants to rent a place for, in order to make a good profit.
the problem with Americans. Home is an investment.
I bought my two homes as a nice place and area to live and enjoy as priority. Quiet gated condo community between suburbs and countryside in Oklahoma and nice 4th floor condo with marina,beach,and Gulf views from large balcony in Florida which is my dream home.
The two rentals I bought in 2008 and sold in 2023 were investments and income streams.
Sell the car
😂😂😂
Typical Californian logic.
How can you have 2 homes in San Jose and be broke. Something not clear.
Just sell the homes and get the F out of the golden state
Managing a company but not able to manage personal finances.
Consdering taxes and inflammation is real estate really a god investment.?
Our economy struggling with uncertainties, housing issues, foreclosures, global fluctuations, and pandemic aftermath, causing instability. Rising inflation, sluggish growth, and trade disruptions need urgent attention from all sectors to restore stability and stimulate growth.
With the US dollar losing value to inflation and other currencies gaining traction, uncertainty looms. Yet, many still trust in the Dollar's perceived safety. Worried about my $420,000 retirement savings losing value, I seek alternative security for my money.
@@EdmundEthan093 With my demanding job, I lack time for investment analysis. For seven years, a fiduciary has managed my portfolio, adapting to market conditions, enabling successful navigation and informed decisions. Consider a similar approach. It appears that your investment advisor is highly skilled. Could you please let me know if you are still in contact with this advisor and, if so, how?
@@ericgrantl Claire Robert’s Durand is the licensed coach I use. Just research the name. You'd find necessary details to work with a correspondence to set up an appointment
Everyone loves to blame California for all their problems 😂😂
With those 2 houses you can buy a company in other state lol poor guy
I am broke.... I have 1.3 mill in equity......
He needs to manage money correctly or he’s going to lose everything easily
Sounds like he knows how to manage money really well. He just manges it stupidly.
He has no frigging idea what the hell he’s doing !!! He bit off more he can chew !! His finances are a frigging mess !! He doesn’t know how much is coming in and going out !! Simple as that 🙄🙄
Sell the houses and leave California.
This guy must have pulled the Robert Kiyosaki and failed miserably
Dave didn’t go off on him
Did john wick get banned?
This dude is crazy
Dave saved him and his kids.