I’m Losing $100,000 on an Investment Property 

I only contribute 5% to get full company match, that’s it. The 401K plan is designed for you to work until you are about dead. Also, the government does not have their hands on it yet either.

My wife and I live off of our 401K. We don't work. I recommend highly to everyone to build your 401K or Roth IRA's as an alternate revenue stream in retirement to your Social Security. An observation on 401K's is when it gets over 300K it starts to accelerate. When you get over 500K it can really accelerate as the stock market grows.

If I may ask, as in withdrew all of the money from the 401K and IRA programs? If so, what was your strategy behind that decision? Thank you.

I learned about govt actions from cfp in ny by name MonicaMaryStrigle. Ms. Strigle explained the benefits of long-term Treasuries and alternative investments, which the govt doesn't disclose.

I learned about govt actions from cfp in ny by name Monica Mary Strigle. Ms. Strigle explained the benefits of long-term Treasuries and alternative investments, which the govt doesn't disclose.

When people started to spend hours on social media every day.

Greed and impressing others

Im around the same and idk how people could even try to justify this.

They are idiots, that’s how

By a house?

I make 6k a month and I bought my house last year for 159k. Payment is $880 a month. It's only 1300 square feet but it works and doesn't leave me broke.

Many people did that because housing price keep going up. It's an investment for them.

Housing costs will come down eventually, but for now; get your money (as much as you can) out of the housing market and get into the financial markets or gold. The new mortgage rates are crazy, add to that the recession and the fact that mortgage guidelines are getting more difficult. Home prices will need to fall by a minimum of 40% (more like 50%) before the market normalizes.If you are in cross roads or need sincere advise on the best moves to take now its best you find an independent advisor who knows about the financial markets.

This is exactly why I like having an asset manager look over 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 manager for more than two years, and I've made over 85% of my initial deposit

I hope you don't mind if I ask you to recommend this particular coach you using their service...

'Angela Lynn Schilling, is respected in her field. I suggest delving deeper into her credentials, as she possesses experience and serves as a valuable asset.

She looks to be well-educated and well-read. I ran an online search on her name and came across her website; thank you for sharing.

Brave because they are active military (which I’m always happy to support) or brave because they’re in such an “embarrassing” bind?

I advise you to invest in stocks to balance out your real estate, Even the worst recessions offer wonderful buying opportunities in the markets if you're cautious. Volatility can also result in excellent short-term buy and sell opportunities. This is not financial advice, but buy now because cash is definitely not king right now!

You're correct! With the help of an investment coach, I was able to diversify my 450K portfolio across markets and produce slightly more than $830K in net profit from high dividend yield equities, ETFs, and bonds.

This sounds interesting. My portfolio is in the red. Can you recommend your analyst, please?

Jennafer Beaver Turner is the licensed advisor I use. Just Google her name. You'd find necessary details to work with to set up an appointment

Thanks for this. I curiously searched for her full name and her website came first. I looked through her credentials and did my due diligence before contacting her. Once again many thanks

😮😮😮😮 We make that much. My god. We drive a rusty minivan with 175,000 miles.

Holy shit, yes. My wife and I made $130k last year, and a $500k house with $200k down is our realistic dream scenario. Maybe $750k someday if we get big pay increases.

down right delusional

Doable if interest rate is really low, but too naive at current rate

@@blessedpapa even at 2.5% that’s $4,000. Plus property taxes on 1.1m home is conservatively $1,500/mo. $5,500 not counting any utilities. If you want your mortgage to be 70% of your take home I suppose it doable

Now days it's called "flexing"

Ehh they are in Canada 1.1 million dollar house is very average

I feel like ya’ll didn’t listen to the call. This is an investment property, they weren’t planning to live there. It would be the house’s renters who are keeping up with the Jones. It was still a dumb idea but not for the reason you’re describing.

@@Michael-kv5ffon $130k income it’s brain dead.

All those RU-vid and HGTV shows will have you believing that nobody loses in real estate. Clear example here that tha'ts far from the truth.

I agree, if they put the downpayment down when interest rates were around 2% and now they’re around 6% I think they have a good case

Now just imagine how the bottom feel? Who don’t see $100,000. Shit is all the way fxcked up. 🤷🏾‍♂️ at this point as I make more, trying to reach 100,000. I’m actually okay with renting. I get to move as I please. NO RESPONSIBILITIES OTHER THEN PAYING RENT AND KEEPING THE PROPERTY THE SAME WAY WHEN I MOVED IN. That’s it!! 😂 Fxck that equity shit. I’m good. BUT if we talking investing to rent out? That’s a whole different story!

This is Canada where Uber drivers are having million dollar houses.

$130K.

@@kobe9843 then don’t buy them.

@@kobe9843Everywhere in Canada? Or just in the big cities? It's expensive like that in the US if you want to live in downtown NYC or LA, etc. If you live in a small town in the south or midwest you can find houses under $150k.

​@@penguin12902not everyone in Canada but in the gta

you know, they “loved” the house, and eyes just went blurry and signed it.

If I were in there shoes I'd be trying to find a buyer who wanted that property instead and see if I could make it a 50k loss instead of a 100k loss.

@@mathehack1Where do they come up with the extra $5+ per month to wait it out and try that strategy?

It's an investment property. They thought the renters would pay their mortgage, so they can just sit back and relax!

​@@megalodon1726bingo

Banks make most of their money on the front end with closing costs and with the way amortization works. If everything goes to crap after 5-7 years, they basically just laugh at you and begin the foreclosure. They almost want you to fail so that they can start the process over again with a new borrower

Shame on you for selling it to an investor

@@MS-ty8eq I’m pretty sure that was sarcasm but if it wasn’t no one else could get a loan to buy it because of the shape it was in.

@@MS-ty8eqpotential homeowners were smarter as they knew what it would take to fix it. This guy probably made one successful flip and then thought he was a guru.

​@@MS-ty8eqwhen a house needs a lot of work (trust me we saw them house hunting ourselves) it's better when someone has the extra money after the mortgage to flip and do the upgrades and don't have to live in it while all of the construction is going on. Especially if it's an older house and you find asbestos or other things that make it a hazard work environment.

Well, if the price keeps going up in Canada like that said. She can keep the house and hope it goes up by 1-300k in a year and sell it.

Yup, I was looking at some houses before covid, $120k for one that needs some work. Now the same house is $400k (6 years later).

It's same in Australia...the real estate ponzi on steroids

Yep, rocks are smarter. 130k and a 1M mortgage doesn't even make sense.

Every woman needs to have a 5000 foot $1.1M dollar house just like Real Housewives.

Maybe. You are taking into account that this caller is from Ontario Canada, right? 1 mil for a house is fairly normal there, certainly around Toronto. Average Ontario house price for March 24 is $880-970k

@@aweisen1I don’t think it matters how expensive the houses are there, the income ratio to the house mortgage is off

I make $300 k and my most expensive home ever was 260k. The idea of a million dollar house is a joke to me. Dont they have crazy taxes in Canada?? Just the taxes are out of her league.

...And a significant part of why real estate prices have rocketed up.

No it's not. You only think this if you're not good at it.

Couldn’t have said it better

This!!!!

Some of us DONT want to be good at it. We just want to live ​@@JT883

Exactly! My grandparents were so frugal but they had a TON of money on both sides. I remember my grandfather telling me "you want to make money while you sleep." And I guess that attitude passed down to my dad (RIP), because I remember going to his house one day and I had bought something I really liked, so I wanted to show it to him. So I said "Look at this! Isn't it cute? It was on sale...I saved 50%!" My dad replied "Well, if you're spending, you're not saving." Obviously I had no retort, and that has always stuck with me.

Saving and investing wisely while prioritizing necessities and a few small luxuries in relation to one's total assets is a great approach. It helps ensure financial stability and I my for the enjoyment of life's little pleasures without compromising long-term financial goals. It's all about finding a balance that works for you!

very true, a huge part of my portfolio growth has come during this bear market. I've been able to scale from $180K to $572K in a short period of time.

How do you do that? I'm interested

1 operate a wide- range of Investments with help from My Financial Adviser. My advice is to get a professional who will help you, plan and enhance your management skills. For the record, working with Stephen Milne Ebert, has been an amazing experience.

They’ll just lose more because then they’ll have a mortgage and the house will probably only sell for say 70% if they’re lucky.

I’m surprised Rachel didn’t ask about the appraisal to determine if selling it (without moving in) would cost them less than $100k. Something is only worth what you give for it: it sounds like they borrowed the $100k and netted this money after selling a prior home.

Canadians can absolutely do the Ramsay plan. We’re in Canada, and We did the basics of the plan without even knowing it, and paid off our mortgage in just under 12 years. All of which we did with 5 year closed terms or less. At the end, we paid a very small penalty to break the remaining time of our closed term to pay off. Yes, we can’t take out a 15 year fixed rate mortgage, but one can make plans ahead of time that will result in the same outcome. The main difference here is that paying down a low interest rate mortgage makes far more sense than it does in the US. As your rate is only fixed for 5 years on average, you only have a 5 year window to focus on having potential returns beat out your interest rate. Then you have to also factor in the risk of your mortgage rate increasing and having it coincide with a market downturn. It rarely makes sense for any average person to invest any of the difference vs paying extra towards the principle.

Great idea.

@@jjr6929 That's only

Yup, sounds like the US, circa 2007. That worked out well. US is at it again too

This is what happens when you have mass immigration and no housing to support it.

Same in Australia...dog shit house for 2 million dollars

​@@greggpurviance7252It's actually worse because there was no 2008 crash in Canada so prices have only gone up since 2001.

Agree. Interest rate means very little in comparison to a high price home

I made $100K/yr and bought a $50K house, in 2011

That is because you know basic math!

Easy they fake thier income alot of peopel do it in Canada cause they have to or else how would anyone afford million dollar olus houses

Unfortunately this is most of Canada, specifically Toronto, right now. It’s awful.

In Toronto people fake documents to get mortgage approvals...

Unfortunately we bought at the peak of the pandemic and are most likely looking at a $50k loss on our home when we will need to move 😢

The developer got $100K up front, so they don't care if the caller can get a mortgage. If anything, the developer hopes they can't get a mortgage. If the bank doesn't approve the mortgage, it's a free $100,000 for the developer and then the house will be sold to somebody else.

@@megalodon1726 There is a lot of risk to the developer in that. They might not be able to find a new buyer for a while or house prices may have fallen in the interim. They've already spent all the money building the house, so they could lose a lot if they can't sell it quickly for a good price.

Sounds like a Canadian thing to penalize people for something that petty

@@MrJimmy3459 It's political virtue signalling to make it look like they are doing something about the housing shortages.

That's great news!! Maybe the U.S. can tax people with more than one property to the point where it's not profitable! It raises prices for those trying to get their first home! ✌️🇺🇲

Since risk is at an all-time high right now, perhaps you should be a little more patient and return when it has decreased. Alternatively, you can consult a trained financial expert for strategy.

Yes true, I have been in touch with a brokerage Advisor. With an initial starting reserve of $80k, my advisor chooses the entry and exit commands for my portfolio, which has grown to approximately $550k.

I’ve been looking to switch to an advisor for a while now. Any help pointing me to who your advisor is?

“Angela Lynn Shilling’’ is the licensed fiduciary I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.

I searched for her full name online, found her page, and sent an email to schedule a meeting. Hopefully, she responds soon. Thank you

Ontario, 1 mil is a common price. And their gross income is ~$158K

@@aweisen1 She said 80 for him and 50 for her. Thank would be $130.

@@lindap.p.1337 you should listen later in the call when her husband says they take home $8,900 per month. I understand how you could have missed it.

In the area, houses start at $800k for a fixer upper, this is not a luxury dwelling.

No. Adjustable rate mortgages are the norm in our friendly northern neighbor.

Because George and Rachel have no experience besides doing sound at the Ramsey show while following the baby steps and being Dave’s daughter…

​@@nailatiylluf She's an expert at the "NEPO" steps 😂

Would still lose like tens of thosands in realtor fees and closing costs

@@Michael-kv5ff I mean they’re literally telling them to chalk up $100k as a stupid tax. Not exactly savvy financial advice.

@@nailatiylluf no, although Rachel's husband handles Ramsey's real-estate I believe

Merica 🦅 🇺🇸

They live in Canada..

Not really quite normal in Canada which is sad

@@Michael-kv5ff if that is normal it is still insane. When I bought my house in 96 they told me as a general rule you could afford a house about your annual house hold income. I get that houses have went up but, 300 to 500 is about what most average income people could probably afford in America. My house hold income is more than that and there is no way in hell I could afford a 1.5 million dollar house.

8900, but still dumb

Waking up every 14th of each month to $210,000 it’s a blessing to I and my family… Big gratitude to Andrew Stella 🙌

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?

Same, I operate a wide- range of Investments with help from My Financial Adviser. My advice is to get a professional who will help you, plan and enhance your management skills. For the record, working with Andrew Louis Stella, has been an amazing experience.

YES!!! That's exactly her name (Andrew Louis Stella) so many people have recommended highly about her and am just starting with her 😊from Brisbane Australia🇦🇺

Hello how do you make such monthly?? I'm a born Christian and sometimes I feel so down 🤦‍♀️of myself because of low finance but I still believe in God

LOL are you saying builders are ethical?

@@austinmallar5430 It's not in their best interest to do this, they want to build and sell. thats it

Not in Ontario.

Thats every one in Canada

@@Michael-kv5ff guess you can thank Trudeau

She is making me feel stupid because I can even understand what she is saying lol

The realestate ponzi ....Australian and Canadian uber drivers can get 2 million dollar mortgage, it's super easy here mate