Real Estate Hacks That Sound Smart (But Are Really Dumb)
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- Опубліковано 26 вер 2024
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Real Estate Hacks That Sound Smart (But Are Really Dumb)
In this video, I talk about real estate “influencers” trying to convince you that they’ve discovered the secret to getting rich quick.
Check out these links:
How I Went From Broke To Millionaire: • How I Went From Broke ...
Real Estate Hub: www.ramseysolu...
George Kamel is a personal finance expert and co-host of The Ramsey Show. Following Ramsey’s proven money plan, George went from negative net worth to a millionaire in under 10 years. His goal is to help people spend less, save more, and avoid money traps so they can live a life with more margin, options and freedom.
This channel will simplify complex money topics, bust money myths with actual facts, and debunk the stupid financial advice you're seeing in your social media feed. All with a healthy dose of pop culture, humor, and snark.
George has become my favorite personality in the Ramsey Group. Keep it up George and team!
I have to agree!!
Nah Chris hogan was the best lmao.
Agreed!
I really like Jade
mine too
"you should buy multiple rental properties"
"yeah the bank isn't exactly thrilled with my first mortgage, i don't think they're going to give me another 2 or 3 just for fun"
They give you bad advice so they can buy your foreclosed home at a discount 😂
That first "hack" must involve magical properties that require no major repairs or upgrades in 30 years. I am sure the others will be equally ridiculous. Thanks George for another great video!
Or slumlording! We can never forget about our precious neighborhood slumlords. Those duplex properties won't rent themselves, you know 😉
good advice. I enjoy the house flipping shows on HGTV, but they make it look too easy. and they are always profitable. they should have shows where the flip is a disaster and they lose their shirt to provide a more balanced perspective.
When George first joined Ramsey he was the nice push over guy NOW I LOVE this version of George. He will give you the truth whether you like it or not
10 houses before 30 😂. I thought people were living in their parent's basemensts until 30 because they couldn't even afford 1 house 🙄
I LOVE that you are responding, in a sense, reviewing, these TikTok crazy get-rich-quick videos. They scream for a wise-voice to guide.
Thanks for being that voice, bro. ✨
George you the man. Everything you said is true! I have house hacked and used BRRRR. It was ALOT of work and it wasnt another part time job it was another full time job. It put stress on me and my marriage. Do not do this without a SOLID financial base. We came out on the other side better off but it was a hard 3 years.
George is really coming into his own. Love the content and he's really good to learn from.
These heloc loans and debit cards are one of the most dangerous things out there. I'm shocked with the amount of people doing these.
Hey George, UA-cam needs a video exposing the concept of Velocity banking. Love your channel!
Just curious, have you tried velocity banking?
I have a decent sized real estate portfolio. He's right, its not as simple as some people like to think it is.
I've done something similar to the 'BRRRR' method. It was a lot of work up front. The 'repair' part was a huge amount of labour, but it paid off. I could ask more rent, and the value of the property went up (I got lucky, and bought low). I have recently sold high, and i'm taking the capital gains to pay off our primary residence. I will say that WHEN you are ready to invest (and have no debt) it can be a viable method, but it also assumes your property goes up in price and you pay it down, thus building equity. She's wrong about buying another property with 'the money the bank gives you'. They dont' give you money, they allow you to take on more debt, and more risk, by financing the next loan. But more debt means more risk and more houses means more problems with tenants, maintenance, vacancies, etc.
I agree. I purchased an income property in Redlands, CA., and 10 out of 10 callers had no job/income on Section 8. Ironically, they all owned pets!! I decided to sell and net $100K versus dealing with jobless tenants.
You cant be selected for section 8 housing with no income...
Do you not understand how section 8 works?
Surprises me. Redlands is the nicest town in the area, better than Colton, Rialto or San Berdoo.
The puns are too funny 😂😅🤣
Don't buy rental properties until your home is paid off and only pay cash and make sure you want to deal with the headaches and cost
I would recommend against throwing the chupacabra. They *really* don't like it...
George's dad jokes are on point!
when are you gonna spend the 80m on avernic? come on man!
@@amazinglats6020 fellow OSRS/ personal finance enjoyer.
I just saved up for a Bowfa, going for mage upgrades next then Avernic :)
I laughed too hard at George’s facial expressions on the last hack!!!! 😂😂😂 man I love this guy and his sense of humor!!!!!
Magic rentals that cash flow $2k a month! 🤣
These videos give me heartburn!
Loving the channel, George!
Buy 10 houses before you’re 30. If you could do that you’d already be financially free
I owned 13 properties before 30. bought 12 of them with no money out of my pocket. this was back in the mid 90s .. then when the housing market boomed in the early 2000s I sold them all and made a fortune ... would I do that now? no way ... houses are WAY over valued right now. When I bought them people couldn't give their houses away.
How would you invest in real estate now then? Or would you completely avoid it and just invest in stocks
Any attempt at building significant wealth is going to require risk and effort. Some people have a fair appetite for both - and that’s ok. Others aren’t cut out for it. That’s ok too.
Darn it now i want krispy kreme donuts, probably this weekend . But thank you for reacting to these videos George! still waiting for a Frenchie guest star appearance
George: "You can't throw a chupacabra while your tenant lives with you."
Me: ...*puts Goat-Sucker back in its cage*
Remember people, when everyone and their dog is talking about it. Better stay away. The people that got in early who think they're "geniuses" would love to sell you their course on how to do it too😂
I just found this channel today, i love it, I love it a lot
Omg! George, your sass and snark! I just love it. 😆 You’re going to be a great girl-dad too. You’re all ready to embarrass her in front of her first crush with all those dad jokes you have and she’s not even here yet!
I didn't even get 1 minute through the video before getting a smile/laugh out lol. Thank you for your content George and team!
I made it about 6 seconds. The first 15 seconds was a comedy goldmine
I’m loving this channel!
For most this coney is great. You won’t get burnt. He’s 100% right about risk.
The key point he doesn’t cover is with less risk there’s less potential. More risk has more potential. You have to figure out what you can handle. For most that’s minimal risk.
Affording luxury is everyone's dream, the challenge is acquiring money to make your
dreams come true.
I agree with you, I had the opportunity to make an investment with mr Robert David
Trade I am so happy I didn't waste that opportunity because it changed my life
he's really using his knowledge and experience to help everyone who is opportune to come across him
You can reach him on *instagram*
@ Robert David Trade
*instagram* ⤴⤴⤴
The moral of the story is it ain’t worth it.
I'm thinking in 2024 - 2026 we are going to grow our net worth another 200 - 300% from picking up these properties from these desperate sellers like we did in 2009 - 2013. Keep it up tik tok, we need more bag holders for us to pick apart in the coming years.
For real, I want to be ready with cash on hand to jump on the opportunities. Between Biden's brilliant new credit score penalty on home buyers, student loan payments about to start back up, people buying houses at overinflated prices, purchasing vehicles with insane monthly payments, and overall managing money poorly, it just seems inevitable.
Thanks for doing this video George! People make it look so easy but it’s not!
George without risk there’s no reward
Yeah but taking on stupid levels of risk..9o percent of that time ends badly.
It's not rocket science.
Ever notice how Life doesn't kick ya in the teeth as much or as hard when you get your shit in order and start doing the right things?
🤔 Geee. Big damn mystery eh.
Life happens..are you dumb enough to walk down the streets without a bullet proof vest and or being armed on foot in any of the most common pants sagging thug infested major cities nationwide?
Or do you think taking on a HELOC is the same sensible risk as getting wet in a swimming pool when you're learning how to swim.
Bullshit.
Yeah..there is a big difference in taking sensible risks and ones you must take to learn a USEFUL lesson in life, versus going to a damn casino and playing slots praying you'll hit for a Powerball lotto s worth of winnings long before you end up putting in either that same amount in first or more than it spanning across a lifetime.
Critically thinking...try it. 😉
There's no reward for most, with or without risk.
Maybe if the title was how I went from broke to millionaire in 10 seconds, more people would watch it.
When push comes to shove, the loan will always need to be paid. Debt free is always better!
House hacking is the best thing going. Just buy a house you can already afford.
I’m both terrified and thrilled for the day a video of mine end up in a George video
You’re too logical and reality-based to roast. 🤣 You need some truly sensational content like “Quit your job and just churn credit cards as a passive income hack using an IUL owned by your LLC!”
@@GeorgeKamel challenge accepted!!! Haha, kidding of course! Thank you, George! You’re too kind brother 🙏🏼💚
@@GeorgeKamel go on 🤔
I borrowed against the first home to buy our second. We are almost 5 years in, with the same tenants. We are well below market rates which keeps things easy. It’s one of the best and few ways for regular people to get a rental property.
It’s funny how many new names they can come up with for zero down financing and flipping houses none of this is new it’s just the same thing with a different name
Risk is always there and I have learned to appreciate Dave Ramsey style advice. Just because market/real estate/ whatever grows 10 or 20 percent a year on average, doesn’t mean that your particular stock picks/ housing market is not going to go down in value 20 percent next year. A lot of these hacks work on average, but you could also get unlucky and in that case you better have some money in savings account to ride out the downturn.
It's crazy how many house of cards there are vs true wealth.
Money HACK:
1. Form an LLC
2. Max out all the LLC's credit lines
3. Pay out a large dividend from the LLC
4. Have the LLC file for bankruptcy - they can't come after the owner's personal assets, and they can't come after dividends which have already been paid out.
Issue is, no bank would be willing to lend much to your LLC.
GREAT CONTENT
Thank you George!
Nothing about RE is passive. Agree that these are not passive income. But they are very much ways that can make money. Risk is everywhere, just be aware and be cautious getting into RE or business for that matter.
I thought the lady at 3:29 was gonna say "Divorce" lol😅
I love his videos. This dude is a mini Dave Ramsey. I appreciate what he does and in my firm we breathe and eat the Ramsay and we teach client to buy term invest the difference. And the baby steps.
I was trying to figure out where I saw that HELOC girl before. I keep seeing her for those ads about the Cirkul bottle, which is another failing gimmick.
So basically a bunch interest rate arbitrage plays that no longer work now that the Federal Funds Rate rises every month. I gotta think some of these tiktoks are from the days when rates were below 2%. Those days are over, probably for many, many years.
Great video to share. Thanx
😂George is funny , in that dry humor way … love watching his segments… also his face says a lot 😂
I like how you keep it real and provide devils advocate for this stuff investing in real estate is a full time job no matter the strategy
Great job i loved it
We're doing the "house hack" thing, but the basement has a mother in law suite and it's all college friends, so it's not bad. Would NOT recommend it with strangers. Honestly, I appreciate that it's college students because they leave for summer and holidays. Makes the strain of extra people much more manageable.
Omg the house hack portion intold my wife was BS . Glad you covered it so i cam show hwr
Literally none of these Tik Tok Influencers who are pushing these strategies talk about the Risk. Nothing in life comes without risk, and if you don't fully understand it, then you're likely in a world of hurt when the hammer drops. Thanks for the content George, keep it up!
I love his videos it’s like a spoonful of reality
Regarding the chupacabra part if you are house hacking a duplex you don’t have others living with you. They live next door, not a passive investment but if handy and willing to work on it you can get better returns and tax advantages over the stock market. Big support of house hacking and chupacabras
6:37 Not to mention, if the lender, depending on the loan you got, finds out you're renting out the residence you said you were living in, they can call the loan or take possession, as that's considered fraud. Again, depends on the type of loan you used.
False
On a very technical level, yes, maybe. But no lender is interested in upsetting the apple cart as long as the payments come in as scheduled. Also, as soon as the loan originates, it is sold, and the servicing handed off to a mortgage servicer.
Again, they also have neither the interest nor the manpower to look into that.
I will have to disagree with the BRRRR method. It actually does work but there is a system that has to be put in place. Unfortunately that system can really be done in lower priced states.
lolol your jokes are the best!😂
These influencers are so irritating!! 😣 the Aven girl? 🤮
I just wanted to let you know that I liked the lichen joke.
With the house hack thing of taking out a HELOC but only putting down 3.5% and 2.5years in, what equity do you to take out?
Not only that, we contractors do buy the rehab homes. We don't hire out the work. About 1x every other a few of us will go in of a house from my company and we rehab and split cost and profits.
The leveraging one was hilarious. Does she think money knows where it is coming and going? You could easily say she bought her house and borrowed to invest in her business. Debt is debt.
are you talking about the brrr lady? its actually not that hilarious. its actually a super common method used by lots of people. i know alot of people who have become multi millionaires using that strategy. the key is obviously making sure the numbers work and not taking out blind loans. and fyi i work in the industry, i have 11 rental properties mortgage free and flip houses as well. if you know how to add your costs it works very well. refinancing properties has allowed me to expand my business but the key is i make sure the numbers make sense. the only hilarious thing is people talking about something they have no experience doing and saying its funny
@@zesolodar I was referring to the Kim Kardashian one, but the concept is the same. Leveraging one house to go out an buy another can be a recipe for disaster if rates go up or if the market has a correction. It's exactly how Dave Ramsey went bankrupt. It's the same with trading on margin in stocks or any other type of leveraging (such as all these banks getting wiped out this year being overleveraged in bonds). As long as you aren't overleveraged, you are probably fine, but a lot of flippers got burned to the ground during '08 with unsellable properties that lost their value combined with huge loans, putting them under water.
That is exactly what is happening in commercial real estate right now. Previously, the numbers made sense. Now, re-financing loans that are coming due at twice or three times the original interest rate, they don't make sense anymore.
But what happens?? These investors - and we are talking professional business people, not mom and pop owning a few single family houses - are walking away from their deals and mailing the keys back to the lenders.
And why?? Because the risk and the hurt is confined to the property. They gambled, they lost, they are leaving the casino, and the pay doesn't follow them home.
1:00 Man George really is a fungi
YES BEEN THERE DONE THAT. THESE PEOPLE ARE ONLY MAKING THEMSELF MONEY FOR YOU IT IS SUPER, SUPER RISKY. DO NOT DO IT PEOPLE
That intro 😂
How much is the 'rice & beans' budget Dave talks about? I want an actual number, preferably for someone living in Chicago
George, you make some good points.....however, is it true that you have only ever bought one house?
( meaning you have very little experience in making money from real estate.)
I’ve owned 3. And no, I have not owned investment property. That does not preclude me from calling out stupid advice.
This “advice” video is almost entirely useless if you have even the slightest idea of how real estate investing actually works. All of the examples he gives as negatives also completely ignore math. For example - you own your own home and house hack a room to a friend who’s paying you an additional $750/month towards your mortgage each month that you could apply directly to principal if you wanted to as a means of paying down your mortgage at breakneck speed. But the downside of living with a roommate??? 90% of 20-30 year olds already live with roommates in RENTED spaces. Why not own it yourself if the math works.
A million other reasons his advice and the Ramsey personalities approach to “real estate investment” is terrible 95% of the time as well.
TLDR - you are right to question his info and opinions because they are fright with inaccurate info and invite simple math entirely.
@@GeorgeKamel Some of the advice you categorize as stupid is actually worth considering. For example,I have been house hacking for 10+
years with very few problems and with great financial rewards. It's not for everyone, but it can work.
bottom line is ... if you are taking financial advice from tik tokkers then you deserve the misery you are about to run into
No one should be taking financial advice from anyone on the internet without doing their due diligence. Sadly, most people have attention spans worse than flies now.
FACTS!!!😂
@@sal5604 that is true ... why would anyone listen to financial advice from complete strangers online. I'll never get it, but to each their own.
So don't take advice from George Kamel since he's also a tik tokker lol
@@whasian2007 I dont
Passive headaches 😅😅
You are my favorite UA-cam celebrity. And HELOC credit card??? That is terrifying!!!
Mmmm no.
Just say ur afraid of risk!
Cuz Vivian is on point.
The others... not so much.
How did they use a HELOC for the down payment on their next mortgage? When we bought our homes both times we had to prove that our down payment did not come from a loan. That meant supply bank statements and even getting a gift letter for the 10K my parents gave us. If your down payment is coming from a loan it’s not really a down payment according to the banks.
It is a common way to do it, I did it this way myself in order to put over 10% down. You just provide the documents to the bank that it came from a HELOC. Plus you need a certain amount coming from your own cash, but the PMI can be reduced or eliminated by the money used from the HELOC.
Literally bought a house 2 months ago with a heloc. Got it rented out, and then refinanced and paid it off. It's a common strategy and very lucrative if done right
@@obie1coby interesting that was never an option for us didn’t know it was a thing.
@@brookecarrillo3432 if you're using it as a down payment you'd have to be able to qualify based on your income to cover both debt payments. It used to be more common to do conventional loans with a second mortgage to cover the down payment. This removed PMI. Essentially the same principle.
@@obie1coby well we had more than enough to cover both but they never said that was an option haha. Well you learn something new everyday!
I Lichen that joke!😅😂😂😂
Yo that moss joke was a real knee slapper I enjoyed that
George! {Linda shakes her head bemused} George, George, George. Not everybody is in the same age and stage as you in life! I'm an elderly woman. Renting out one of my bedrooms to another woman guarantees an immediate 50% reduction in utility bills, greatly reduced mortgage, and companionship. I'm old enough that my friends are dying off, George. I'm widowed and loneliness kills even more surely than a smoking habit (look it up if you don't believe me). I'm not worried about privacy nearly as much as I'm worried about being hurt or sick and having nobody to call an ambulance for me. "House hacking" or, as we used to call it "getting a roommate" is a brilliant idea at the distal ends of life (college years and retirement). And BRRR works great IF you are a talented remodelling contractor and see it as a business instead of "passive income" (you're right on that score, BRRR requires full-time effort and the right market conditions to work).
Well if you have 100k to put in to the stock market and it’s a diverse portfolio and you have time… then it is better to borrow at low rates.
My mortgage rate is so low that I make more in a HYSA than paying off my mortgage quicker. Stock, over time, is a better investment than anything else out there. It does have risk, but it’s minimal.
Depends on if you have time basically and what rate you’re borrowing at.
The house hack of buying a multi-unit property - like a four-plex - , living in one, renting out the rest, is not bad. You need to look at the advantages. Instead of being worried about chupacabras and lack of privacy, you get to keep a real close eye on your investment.
So when your tenant is doing something shady, you know about it right away. Not like that property manager in Temecula, who had no idea that there was a pot-growing operation going on in the house.
Good opening jokes.
Another insurance one...
Why did the Stripper get sued? Had no coverage.
Id love a video on what you don't recommend doing what kimK does. 😂🤣😂🤣 Hahaha hey you gave the idea first
Finally, a representative for the Moss loving community! 🤣
I have a rental unit and my renter is moving out at the end of June. I'm deciding if I should sell it. Everyday I wait for an email or text saying something is broken and need to be replaced. Prior to that, when my last renters moved out, it needed a new water heater and carpet as it was time. I made no money that year on a rental. So much for "passive" income.
I'd say set your rent higher. The corporate landlord near me replaces the carpet and puts on a new coat of paint when there is turnover. The water heater has a projected life span of 8 - 12 years. Plan for it and price the inevitable replacement cost into the rent.
Landlording is a business. If you half-ass it, you are better off in the stock market.
No shade, just fact.
Time to run away from the tic tak real estate 🏡. I think 🤔 I’m going to follow George Kamel’s advice. A safer bet.
Yes house hacking doesn’t work and real estate is actually hard work not passive and risk should be avoided at all costssssssss…….
“Lichen - kind of a fungi algae combo” a hahaha!😭
Jeff Bridges I’m dead
Are those laughing bits in the beginning AO? Lol sounds like Anthony o Neal
Jeff Bridges 😂😂
Baby steps are very boring. Not cute but they’re affective if done correctly.
Keep it simple. Don't go do something that high risk unless you know what you are doing. At the minimum do you homework and make a solid plan before jumping in the deep end. If you don't know how to swim would you jump into the ocean 20 miles out with great whites hunting? No, but you can learn how. Get your real estate license and get a job with an agent or broker. Learn the ropes. Manage an actual property on someones else's dime first.
It’s called arbitrage
5:43😂😂😂😂😂😂😂😂