Real Estate Hacks That Sound Smart (But Are Really Dumb) 

George has become my favorite personality in the Ramsey Group. Keep it up George and team!

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!

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. ✨

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.

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.

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

George is really coming into his own. Love the content and he's really good to learn from.

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

Love your podcast !! Yes, I did the hack approach to real estate. I own my 1st home. Then I purchased another home. The 2nd home my daughter & I live with our tenants. There 7 of us living in the home during the school year & up to 9 in the summers. The home is 5,000 sq ft, so no one feels to cramped. It is a small college town with limited housing options. The tenants do cover mortgage, insurance, taxes, & utilities. My 1st home is rented out with that we put in savings for unexpected repairs . I do fully agree with you TikTok makes things look easy . I can tell you it is not passive. It is hard work. Things always come up & need attention. With anyone living in community (roommates), we always have to ask can we have family over, parties, etc. We have a planner on the fridge so no one overlaps events. Going out of town is more difficult. Overall I have enjoyed mentoring these college students. It has also allowed my daughter who is in her 20’s to live here rent free & her income goes to savings.

Hey George, RU-vid needs a video exposing the concept of Velocity banking. Love your channel!

I have a decent sized real estate portfolio. He's right, its not as simple as some people like to think it is.

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.

"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"

The puns are too funny 😂😅🤣

bottom line is ... if you are taking financial advice from tik tokkers then you deserve the misery you are about to run into

George's dad jokes are on point!

They give you bad advice so they can buy your foreclosed home at a discount 😂

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.

Loving the channel, George!

Thanks for doing this video George! People make it look so easy but it’s not!

George without risk there’s no reward

Great video to share. Thanx

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!

Maybe if the title was how I went from broke to millionaire in 10 seconds, more people would watch 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 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.

These videos give me heartburn!

Thank you George!

GREAT CONTENT

I just found this channel today, i love it, I love it a lot

I’m loving this channel!

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

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.

Great job i loved it

When push comes to shove, the loan will always need to be paid. Debt free is always better!

The moral of the story is it ain’t worth it.

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.

It's crazy how many house of cards there are vs true wealth.

House hacking is the best thing going. Just buy a house you can already afford.

George: "You can't throw a chupacabra while your tenant lives with you." Me: ...*puts Goat-Sucker back in its cage*

Affording luxury is everyone's dream, the challenge is acquiring money to make your dreams come true.

I laughed too hard at George’s facial expressions on the last hack!!!! 😂😂😂 man I love this guy and his sense of humor!!!!!

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.

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!

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.

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.

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

Omg the house hack portion intold my wife was BS . Glad you covered it so i cam show hwr

was not expecting that laugh at 0:23 😂😂😂😂

I’m both terrified and thrilled for the day a video of mine end up in a George video

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.

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.

lolol your jokes are the best!😂

Magic rentals that cash flow $2k a month! 🤣

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.

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.

YES BEEN THERE DONE THAT. THESE PEOPLE ARE ONLY MAKING THEMSELF MONEY FOR YOU IT IS SUPER, SUPER RISKY. DO NOT DO IT PEOPLE

Yo that moss joke was a real knee slapper I enjoyed that

Are those laughing bits in the beginning AO? Lol sounds like Anthony o Neal

Great jokes! 🎉🎉 I’m a Realtor in AZ!

Buy 10 houses before you’re 30. If you could do that you’d already be financially free

I would recommend against throwing the chupacabra. They *really* don't like it...

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.

Id love a video on what you don't recommend doing what kimK does. 😂🤣😂🤣 Hahaha hey you gave the idea first

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!

That intro 😂

How much is the 'rice & beans' budget Dave talks about? I want an actual number, preferably for someone living in Chicago

so ive done this professionally for years, i have 11 rental properties mortgage free and flipped a few houses as well. the lady with the brrrr method actually isnt that stupid or wrong. what shes saying is actually how alot of people grow their business and i know people who have done that and made a fortune. the key shes leaving out it to not blindly take out loans. the numbers have to make sense. after average repair numbers, taxes and insurance does the monthly repayment make sense. ie after the repairs and carrying costs does the rent payment cover the mortgage payment and then some. if its below the month rent payment and you can pay additional principle its actually a really good strat but you have to know your numbers which most people dont know. for example i can ball park insurance and taxes and can pretict how much longer im going to have before a major repair through experience. also it really only works for rentals where you plan on holding for the next 30 years and like he said you have to have contractors you know. like i said makes sense if you know what your doing and have the infrastructure in place already and its def not passive thats for sure. and investment properties you have to put down 20 percent? hm thats new to me ive pulled loans before and ive never "had" to put 20 percent down. and thats not a bad thing, the more you put down the less your going to pay in interest over the long term so its dumb she streats that as a abd thing

You are my favorite RU-vid celebrity. And HELOC credit card??? That is terrifying!!!

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.

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😂

BRRRR used to be quite lucrative, but home prices and inventory have made this difficult to do in most markets.

Summary of the video, everyone was forgetting one thing...risk!!!

Nice shirt

I house hack my house. It is probably the easiest of these strategies to implement without disrupting one’s day to day job. Many of those other strategies are like full time jobs in their own right. If you’re in a relationship, it’s probably best to house hack a duplex or other multi-family property over a larger single family house. That way you have the option of having your own space. The jump from renter to homeowner is probably a bigger jump than the jump from a homeowner to a landlord. So I definitely think its possible to jump into homeownership through house hacking (like I did). Especially if you live in an expensive and desirable area which will attract good tenants. However, it’s still important that you do your due diligence in considering the living logistics. Any home needing TLC adds a bunch more time, risk and expense in getting a place rentable to good tenants. Also don’t forget to factor-in some vacancy, HOA costs and the property taxes when running your numbers.

As a contractor of 35 yrs, some of the dingbat chicks that use words like “thingamijigabob” or “that board” or “ move that wall over there” or no that is not a load bearing wall.

Finally, a representative for the Moss loving community! 🤣

also it how much dept to wealth say i have 1.6 MILLION in market but it down from 2 million, and i wnat to buy a rental income house for 300k i could sell the stock and buy it, or take a loan VS the stock and hten in a few year whne the stock goes up to the 2 it was i could then take it out,

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.

What happens when you pull out 100k of equity but the next year your house isnt worth the same anymore.

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 Lichen that joke!😅😂😂😂

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.

Passive headaches 😅😅

The HELOC card 😳

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.

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).

Jeff Bridges 😂😂

BrrrrrrRISK!

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

These influencers are so irritating!! 😣 the Aven girl? 🤮

Yes house hacking doesn’t work and real estate is actually hard work not passive and risk should be avoided at all costssssssss…….

If someone got 50000 in stock. Should he buy the huis with this 50000 or just let it run in the stocks?

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.)

During the “house hacking” segment she say to live in it for 2.5 yrs before renting it out. So as a first-time homeowner you’ll only need to have a 5% down-payment. Once you rent out your house you still need to find a new home to live in. You’re no longer a first-time homeowner. Buying subsequent has you need a minimum of 20% down. Her hacking logic is to avoid putting down 20% for your first house but neglect to point out you still need it on the next house. Even with a HELOC. her reasoning not much of a hack

Baby steps are very boring. Not cute but they’re affective if done correctly.

It’s called arbitrage

Time to run away from the tic tak real estate 🏡. I think 🤔 I’m going to follow George Kamel’s advice. A safer bet.

Mmmm no. Just say ur afraid of risk! Cuz Vivian is on point. The others... not so much.