djvlad yo you are preaching a horrible message about buying homes. My parents bought a home in the 70s now it's paid for so now I have a home I don't have to pay any rent on at all so when I have children my children doesn't have to pay any rent
djvlad Dear Vlad, why you doing this to your viewers.... leaving us in suspense with clips of an interview. We gonna show you love by watching them repeatedly, just post the full interviews with DJ Paul, my girl Luenell, and of course Lord Jamar and Godfrey #901 #HomeIsWhereTheHeartIs
LegitMusic Being poor is a state of mind. If you want it, you can have it. I know shit happens, but it's how a person responds to their circumstances that separates the haves from the have nots.
Flaquis oh don’t get it twisted. I’m going to be rich, Give it 10 years max. I know my worth and I hope all you homies do too. Get on your grind gentlemen 💯
If he would have kept the house he would have made a profit because the market bounced back. Vlad logic only makes sense if your constantly moving around
TheFDream context is everything. Yes he said that in the clip but he goes so hard on this topic because he lost money by owning property that the general audience would miss that. He's preaching about how millionaires should move to an audience that's primarily comprised of middle class and lower. The average person is going to be in that 1st home 30yrs. Now a savvy person like myself bought a foreclosure property put 50k into it then 2yrs later i had 150k in equity which i tapped into to start a biz and buy another property. I vehemently disagree with vlad especially that I'm living proof that you can change your circumstances if your smart and disciplined enough. Besides Black ppl don't own shit as it is in our own communities now we shouldn't even own the roof over our heads? The so called middle class was created thru home ownership. This is why Jay Morrison shut Vlad down on this topic and he keeps trying to find ppl to agree wit his shit
Rollin225 you don’t buy a home for a profit you buy it to live in until your dead. And just say the house went up in value the only way you can get your profit is if you pawn it for a second mortgage or you sell it and then you have taxes, realtor fees, closing cost and then you have 2 years to put that money into another house before the IRS wants the capital gains taxes.
First off i would like to commend you for finding a good hustle to improve your income. Buying a foreclosed house and flipping it is a good way to make money. Well i think he is trying to give his side of the story on why it may not be a good idea even though it is always recommended by the majority. I for myself cant predict me staying in the same city for 30 years or that i will always be able to provide the money to make the necessary mortgage payments. I am all for ownership but for ownership that makes passive income. Buying a building for your business or a club or house to rent out i am all for.
@Davide Lecky sell your house for the taxes owed and put you out on the street. The property taxes are based on the home value. If you buy a house in a good area your property value will go up. So every year you will owe more property taxes. Depending on the state you live in taxes will be several thousand dollars a year
I'm 28, I got a massive settlement from a work place injury I got when I was 25, First thing I did was buy myself a nice house (4 bedrooms, 2 bathrooms, on a big block of land) and I'm sweet. I don't owe the bank or anyone anything.
I personally save money for a rainy day and have the other half in blue chip stock. The dividend pays out yearly and i reasonably do well for myself. As for investing in yourself, working out and educating yourself goes a long way.
Vlad is making sense y'all don't understand. He's saying FINANCING a house with property tax on top of it is more expensive than simply renting a home.
I think it depends on your perspective; home ownership provides you with (hopefully) capital appreciation, in Toronto you should be "making" 7%/yr. Then you have to compare it to what could my $50-200k (down payment) generate in cashflow in an alternative investment. For me personally, I did the math and it made more sense for me to rent and invest that money in my business which generates a healthy cashflow and I get the benefit of capital appreciation- the better the business does, the more valuable it becomes. You should read the book Rich Dad, Poor Dad- I didn't understand it when I read it but makes sense now. Either way, you can never go wrong with home ownership if you're in it for the long term :)
It's because it is not an asset. You pay into your house it doesn't pay you. So Vlad actually make perfect sense. I almost fell for the banana in the tailpipe just this week. Also the older bald guy ( can't recall how name right now) said the EXACT same thing they are saying.
As a real estate investor with multiple properties I couldn’t disagree more. The key is to buy right and rent them out. I used my primary property to build my net worth. It’s dangerous to tell dumb broke people not to buy property.
Ah not exactly what Vlad said. You’re not exactly not looking to be right either. Vlad said if you’re gonna buy anything it should be your last forever home to retire and payoff. Here’s the real and best truth: the average person who buys any RE outs and sells 3 in their lifetime. So your first 2 properties at the minimum should be investment. Too many honeymoon couples in the heat of love trying to buy their dream home 1st one. They over extend for the dream. I got lucky and wasn’t blinded by anything during my 1st purchase so as a 35yr old man I bought a duplex in San Diego in 2007. Both were 2/1. So I had one unit helping goto mortgage and still had one for myself and roommate. So I was almost living free off my first home purchase ever since! Still am! Added a bigger master bed and bath in bak of each one making them 3/2s. So then even more rent in 2013. Then built a whole third unit in the second story during early COVID and dint get fu@ked by any welching moratorium losers either and now have three 3/2 units all on the same property! Same old low mortgage rate, same old low purchase price from way back. Never took any loans for the additions. Cruising!!! Thank god I’m smart and not a simp and didn’t get suckered into any woman’s unrealistic dream and I saved and paid cash for wood and supplies and didn’t get tattoos and aren’t a dork and nerd that falls for lame trends and I invested in myself ! Bahaha. Sorry fools! Sucks to be y’allllll🫣🤣
so rent is $1300 while mortgage is $1100 - what happens when the place goes unrented for a few months, needs repairs, needs a new roof, needs new plumbing, your tenant sues you, the economy falls and people lose their jobs, etc etc etc
Donald Snow lol they're not hearing you. I'm 22 years old and I got financed for a used car (first car from a lot). I've flat out bought all my other cars, and let's just say after I did the damn math. After I'm done paying it off I can own three of the same damn cars with a few grand left if i had the money in cash right then and there.. Don't want to go into detail but yeah I'm getting fucked ...
djvlad ...what happens if your stocks you own, the companies belly up?! Enron and other companies had this happen lol you speak as though stocks are a safe haven 🤣😂 there are risk with many things man. Stop leading your viewers astray and polarizing things.
I'd rather buy duplexes and triplexes to rent out and live in my house forever and keep it in the family...as soon as my equity goes up, in gonna get a duplex
It shows you that no matter how much money you have, you still don't own shit. This is a dumb comment. You should always be willing to learn. And if you every come up on some money one day, you wont go buying up 15 houses across the country like this nigga.
It’s always good to won property. You can always make money off property. During the recession property value went down but that is rare. Property value usually increases over the course of the loan but if you buy out right that is a profit. Black people don’t let others discourage you from owning America
True wealth means you are diversified. Real estate, stocks, art, memorabilia, bonds, and cash for new opportunities. Take the rental money but it in the stock market. Profits from the market into another rental. I appreciate VLad having the conversation, but i wouldn't be taking it as financial advice.
Gotta know how the mortgage process works. Principle only payments, deferments if you need to skip a month or two, refinancing after some odd years for a lower interest rate, BUYING BELOW YOUR MEANS. it can be worked in your favor if you know what to utilize
You didn't mention having equity in the home. True it depends on where it is and how much you paid but in many cases real estate goes up and you come out ahead over time. Get a good interest rate and pay down the principal in less time than the loan is for if you want to stay for a long time.
Vlad is right about mortgage payments and how you’re paying towards interest for the first 15 years, but it’s all about how you approach the situation. I was fortunate to buy two properties after the market crashed in ‘08 and ‘09 and the value on both spots rose since. I sold one in ‘14 and should’ve waited til now to sell it
this ideology does not work everywhere in the world I live in london and it is cheaper to pay for a mortgage than rent as long as you dont mind putting down £40k deposit right now I bought my place at £320k 10 months later its valued at £360k I have made a profit so why would it be better for me to rent my mortgage is £1200 a month to rent a place like mine its £1400 a month minimum
Jei Jeilani So you put 40k down to save 200/mnth on rent? To save 2400 a year you gave the bank 40k plus however many years of interest plus closing cost? You also have not made a profit because the value increased. You make the profit or loss when you sell. Thing about value is it can move up or down depending on what the markets doing. I have a property with over 100k in equity, but that's not profit because if i keep it for 30 years im going to pay over 100k in interest, and that's with a great interest rate under 4%. Good thing is I'm not paying the mortgage back, my tenants are. You get my point though.
you may feel it's worth 360k based on estimates, but when you actually sell it you may get a lower amount - and when you count the realtor fees, escrow fees, closing costs, and the money you put into improving it, you'll be lucky to break even
The problem is there not comparing homes as an investment if you by homes low and rehab , rent, rinse and repeat. Once it’s a rental it becomes an controllable asset that will raise your net worth and cash flow monthly
Lol Paul has The Mafia on his mind even if its subconsciously! For instance, when he said something about paying $10,000 a month for 3 years; he just threw those numbers out there but what's it add up to?... $360,000. Lol
Vlad says 30 yrs your paying double for the house.... True but If its a 15yr fixed your paying more on the mortgage but your not paying double on that house at the end....
Vlad. Ever heard of appreciation? Bro if you own a house for 15 years. Trust me. Your house is worth more than it was when you bought it. My boss said it best. Buy property. Hold it for 30 years. I bet you make money. The hard part is being able to park your money for that long. This is how you build wealth.
or you can remt and use the same amount of money you would have put in your down payment and put it in an s&p500 stock for 30 years and see how much of a better investment that is
Right but real estate has more plays than just appreciation. You can make money off of money cashflow from the rent. So while your stocks are appreciating so is the house but on top of that the rental property is kicking down X amount of dollars the owner in cash. And when you refinance you don't get taxed on that money. And you can write expenses off for personal/business.
Renting does make more sense if you are someone that does not plan on staying in a spot every few years. But that isnt of the norm, everyone buy as much property as you can. You leave a legacy for your kids and family if that applies to you. Everyone that are really wealthy are owners of multiple properties, and in many cases that is how they become wealthy based upon the leverage that it gives you. You want that leverage to extend your wealth in other revenue streams.
Good concept but if you're in a position to pay cash pay cash all interest money is negated and you're principal is that cash payment you NEGOTIATED for that property. A one time payment
Vlad is actually right and exact on this one. It is better to rent than buy. All the mortgage company is doing is transferring the debt to you. I challenge anyone reading this to look up the definition of Mortgage and you’ll see you’ve been played! Lastly, even if you paid it off after 30 years, if you don’t pay the “ insurance “ they will take it, so how do you own it, and can be taken so easily after completing the mortgage?? Put the debt on them!!!
Moreno Bey yep don’t pay those taxes and they will auction the house off so you never own a house or anything that you still have to pay taxes or registration on every year even though it’s paid off!
+Moreno Bey I have a mortgage , yea yea yea just like financing a car a certain amount goes on the principle !! That's why it's a loan for a certain amount of time !! Of course if you can afford to pay full out it's better or you can always by a foreclose property or even cheaper a abandon property !! It's better in most cases to rent business property especially first time owners
Moreno Bey same thing with rent. You don’t pay, you don’t stay. The main difference where I stay is a mortgage is always cheaper than paying rent. Another difference, if a mf want to kick you out of their property so they cousin can move in, you have to leave! Scratch that, give me the liability.
I don't really agree with vlad's renting vs buying logic it makes no sense the argument he uses... especially if you aren't rich moving around and you are an everyday middle class working person raising kids and married. I keep trying to understand Idk if he realizes there are 15 year mortgages... renting isn't cheaper rent goes up every year after 15 years renting you own shit either so wtf... the scary part is this is a trick a rich white immigrant with a all black young audience telling them "don't buy just rent" meanwhile all of our communities are being gentrified by white immigrants buying every thing up while they OWN property both here and in their home country... I love my beautiful black brothers and sisters don't listen to this nonsense just cuz he gets a rapper on talk to a financial consultant from our own community PLEASE. I can tell you my mortgage amortization is NOT set up how he is explaining there is almost half of my monthly payment that goes to the principle
Philly4/4 x When it comes to stocks and media I think vlad has a good handle in that arena, but I don’t suggest anyone take real estate advice from him. I’m a seasoned investor and just knowing the different tax codes according to ones business type, structure, income and investments strategy all come into play whether it makes sense to rent vs buy! I’m not saying he’s clueless, he’s just not an expert. Just the language in their conversation shows me that they both are babes in the real estate business. Truth be told I love DJ Paul for his legendary music PERIOD!!!
Exactly!! I love the music interviews but this real estate topic is kinda retarted... if everyone is renting who are they renting from?? Usually when someone tries to sell you in one direction its because they have a vested interest i bet he has a bunch of rental properties... because even sports athletes who can be traded at any moment go and buy homes in the cities they play even though they may only be there a year and alot of them have mortgages
The unexpected costs of repairs and maintenance as a home owner will eat your lunch, and it can't be written off on your taxes, but when you rent there are no expenses to incur on normal ware and tare and upkeep, you call the property owner.
No one has mentioned appreciation of ur real estate..in this interview. ..buy for 200k and sell it for 400k..after 5 yrs in sum neighborhoods...I guess that's bad .hmmmm...if u are not stable renting is always better ...invest in good neighborhoods and get the shortest mortgage possible and make a extra payment every 3 months...eliminates alot of the banks profit. 😎💪💥💥💯
I finally got my dad to understand own what you rent & rent where you live!! Its funny how many people think I'm the dumb 1 for saying the samething vlad is saying!!
You buy the right Investment properties for rental income. You purchase your personal home in the right area and hopefully you build equity. Renting is for short term purposes or those who like to move frequently.
Great stuff vlad...please do more investment successes n fail story questions. This is educational n thanks to dj Paul for being honest about his purchases/rentals. A lot of artists lie about what they own. Most jewelry n cars houses are rented. Touch on stock questions from artists too...what stocks specifically they invested in fails n successes. N other investment opportunities. W our generation not going to see social security, we need something new!
Paying cash for properties and holding them is far superior. It is an asset regardless of the state of economy or depreciation because you still have something tangible that is yours.
Vlad sometimes you gotta look at it like this, when your renting property from somebody else you're putting money in someone else pockets and also every year the landlord is raising the rent so I would rather buy
Renting vs owning is all relative to your lifestyle. If you're the type to move a lot then rent. If you already have a stable career and don't plan on going anywhere then own. Try and find a house that will appreciate in value over the years and try to knock down the principle every month.
Well Glad your family moving up the ladder to middle class helped enable you to pursue your interests as you have. If your growing up dirt poor your finding a way just to keep a roof over your head and fed. Rather than being able to start your own business in your early twenties. So their mindset helped you more than you think.
Or you could have just kept your home in LA and not took such a loss. The market now is higher than it was at the height of the recession. The problem with cash is its usually wasted. Paying cash for a home makes zero sense unless its a fixer upper you plan on flipping. A 30 year fixed mortgage is a great option for write off purposes for the average American. You can loose thousands in equity waiting to save to pay cash. Renting also makes no sense and is a huge waste of money. I know its a sensitive subject as there are strong feelings on both sides, but paying someone else's mortgage will get you no where.
Jon B I'm so shocked they are saying to rent over buying and paying mortgage. I'm glad I found someone else on here who thinks like me. Where I live rent is high and owing and leaning towards owning is the goal
Yes. Rent is higher everywhere now as the cost of homes have gone up. Land is the only thing we can buy that will always have a value. Even jewelry is hard to resell.
In my opinion what vlad is saying only makes sense if you are already rich and financially secure. The reason i would choose to buy rather than rent is because my monthly payments on a mortgate would be cheaper vs renting. Plus if i was to ever get into any financial difficulties after a few years i would be able to sell and recoup the money i invested ( minus usual agent fees etc). buying a house gives you a level of financial security. plus you can always remortgage if you need to. if you rent a house/different houses over the course of 10 years and then run into financial difficulties you cant ask your landlord/landlords to give you some of the money back!
You multiply 15 houses by $2000 a month income X 12 months = $360000 A year. -$60000 taxes and insurance with the money you buy an extra house a year. Soon you can make $1000 a day with out doing much. "Use the houses , Dont let the houses use you"
People, everything they are talking about is dependent on the area you live in, which will also determine your tax and insurance costs. Most Americans will never buy a $200,000 house which sounds like is the low end of the prices they were discussing. If youre in a low cost of living area you can buy an $80,000 house that would cost $300,000 in LA or NY and youll have a super cheap mortgage you can pay off in far less than 30 years. Of course if you have to move all the time you shouldnt be buying houses unless you have a substantial income and plan on using them as investments or to rent out.
Renting only makes sense if you are living in the property short term. If you plan on living in a property for an extended period, then owning may make more sense. Vlad keeps leaving out the appreciation aspect of owning. In most markets, owning is a very stable investment over time. The other thing vlad clearly doesn't understand is LEVERAGE. Debt is not always bad. Mortgage rates are still historically low. Why would you pay $1 million cash if someone will lend it to you at say 4.5%? You then take your $1 million and invest it in equities earning say 10-15% or more. For Vlad to talk so much about investing, I am surprised he doesn't touch on this point.
Uncommon Sense exactly. Tying up your cash when you could be investing it doesn’t make sense. But some people are just against debt, and it works for him so it is what it is lol.
One size doesn't fit all...we've been through this. If you've been paying a mortgage for 15 years, you should damn near own the house, not just paying interest like Vlad says. We paid off ours in 10 years. Just because one doesn't have the discipline to do it, doesn't mean it's a bad deal....
He mentioned insurance, with the right type of life insurance you will get your money back and some. But basic insurance then yea he right you won’t get nothing back
To use the example that vlad used, if you get a 200k mortgage and you want to sell the house in 15 years, research an area where the market is going up in value to where the market will top out in 15 years when you sell or is still going up when you sell.
Buying a house is circumstantial to its use. It’s different for everyone. Long term or short term. Creating equity in the home is what you want and you want to get into the property for the right price. Money is there to be made, but you can’t expect to hit a home run on every single property and that’s where the finesse starts. Good lessons in this conversation, but it’s hard to capture the real estate hustle in 9:44. I’d like to hear vlad elaborate on this a little more amongst himself to us. Hook us up vlad with more info
A home isn't an investment ever! If it makes capital gains they're negated by the fact that you have to buy a new home in the same inflated market. Buying a home is about security
I own a home in Queens, NY whose value is going up and up everyday. Been here 12 years and the value has gone up 200k plus. I am trying to wrap my head around the renting argument, but even if we sold now and the principal did not got down much, we make a profit. Maybe he means buying as opposed to renting in areas where the value stays the same or you are under water?
Vlad you forget that after 15 years the house has appreciated in value. So even if you paid only interested in that time when you sell it you profit from the equity gained over time.