Social Media Got Me Into a $1,000,000 Mistake!

[Music] brought to you by the every dollar app start budgeting for free today I'm 36 years old and I just need an advice on I've racked up about a million dollar debt before I apparently started listening to you guys wow my mortgage uh from $900 a month has gone up to about $4,500 a month and I'm just trying I'm just very concerned because I've been constantly listening to you guys and Dave um to see okay what's the best way to tackle some of this I've got two investment property in my primary house and I'm trying to combine all and you know with the current market I just don't feel like I should sell so what would be the best advice in terms of getting you know financially out of the situation I guess so when you say you have a million dollars in debt is that Consumer Debt are you including all these mortgages just the mortgages uh I had some I had some car loans as soon as I started listening I had the money already saved up um so I paid off my car it was about $1,200 in the car car loan that was left I was planning to buy another car I stopped that already so I've got a two 200 under three-year-old baby so I was planning to buy a minivan already stopped that plan okay so you no Consumer Debt you just have a mortgage and then a rental mortgage and another rental mortgage correct and you're saying your total payments add up to 4,500 a month or is that just on the One Mortgage just on my primary house mortgage both the other houses the investment properties are more or less self- sustaining the other one I have got bit of a positive cash flow for about $900 a month okay so if you sold both rentals what would you net after paying off the loans I would probably have $60,000 additional because I bought all those houses maybe around the peak one of the houses around the peak of the market so I may have to sell for maybe a bit less yes and then the current house the previous house i' may make about $120,000 on that so why you said your mortgage went from 900 to4 500 so I used to live in one of the properties that I'm renting right now I just moved last year so okay and you have a wife before yes I do have a wife she was working before the maternity leave now she's no longer working because I've the two kids okay so just your income what do you make a year I make about $160,000 a year okay and that's before any rent I'm sure the rental income isn't much at this point like you said it's barely cash flowing yeah I got maybe about $900 from one house that's per month you called in because you don't want to be in debt anymore and so to pay off these you know to have your you know the idea is people get into real estate investment thinking well the renters is going to pay my mortgage so it'll just be super easy and no stress well as you know it doesn't really work out like that and so that you have a few options number one is you just tackle these mortgages on these rentals or you sell the one you like the least and you start to help I would if I'm in your shoes I would probably just start from scratch get rid of the rentals pay down your primary home because $4,500 a month is not sustainable for your income I I I agree uh I make about $10,000 a month so half of your income is going to the mortgage yes yes which tells me there's no way to we're not going to be able to get this mortgage lower unless we just sell in downsize could you sell in downsize to a different home I would rather not uh since it's a you know something that I bought for the kids and I'm trying to live this for the kids they're two years old they don't know what they won't remember this house don't say it's for the kids the kids are going to watch you and Mom be in stress for the rest of your life because half of your income is going towards this house it was a very hard decision to buy the house and I just don't feel but yeah I think I think you're right you tell me what do you want to do yeah yeah I want to be financially free that's all but what do you want to do what is what is your next step let's say you hang up today and you say forget those guys on the show who I called to get their opinion you tell me what you think is the best move for you so I've got about 650,000 on my primary house as a mortgage and uh the rest is on the those two houses so even if I were to sell those two houses I could make a bit of a dent on my primary house and get a maybe a bit lower on the mortgage and then start to pay off maybe like every year I could save maybe about 60 70,000 and start to pay maybe in the fiveyear plan or the other option like you said is just downsizing to a smaller house or maybe move to my older house which was which is the one that's cash flowing about $900 a month so now tell me which of those plans gets you the most piece in the quickest amount of time I think selling my current home would I may have to take a big hit though about $120,000 on that one if I were to sell it because you can't get what you paid for it yes sir you can pause as long as you want to make this decision but half of your income is going toward that mortgage and these properties aren't cash flowing which means you're losing money it's adding stress to your life I would sell the rentals take that 60 I would sell your house take that 120 that gives you 180 to put on your next Residence at as you downgrade and hopefully we can get that mortgage lower to about 2500 on a 15-year fix that's your sweet spot making 10K a month yeah that's the problem to solve for I don't know that I mean I wish that I could change the numbers and stamp my fingers Dave I I want to be helpful but there's a lot of just a lot of debt and you can undo a lot of it because it's just sitting there in the properties but I don't think continuing down this path is going to be a blessing for you I just wish my wife would have started working maybe with the with the kids maybe she was making about $100,000 before which is not feel like Dave it feels like George laid this thing out for you about as clear as anybody could lay out and you're just sitting there in pain realizing how dumb your decisions were and then you're then as soon as he lays that out and and he's just going look you can you can get out of this it's going to be painful but it's more painful to stay in it you're laughing about it and then your first comment is I wish my wife been making more money like I feel like it's it's lost on you what's what what is going on here which is just owning the fact that you didn't make some good decisions and now you got a chance to get out of it it's going to be painful but you got to do it it just feels like you're not I mean again you do what you want to do but it doesn't feel like you really locked in and accepted personal responsibility am I right or am I Am I Wrong yes you are right sir and I'm I'm sorry if I'm laughing no no no no you can laugh all you want one of one of the thing that I was I was just listening in maybe previous calls was like looking at some of these Instagram Realtors and you know trying to get into the real estate and that's how I got into this you saw on Instagram real and they were like you need to get investment property now there's a crazy idea I watched an Instagram reel and got myself stuck yes any Instagram reel that causes a million dollar mistake is one worth unfollowing yeah so I'm glad you learned the lesson Dave I guess I'm trying to just lay it on you here and I'm trying to Spur you to action stop talking about your wife and her making a 100 and not making a 100 you got into this because you watched the wrong Instagram accounts you got under you got into this because you wanted to get rich quick yes I know so it's okay there's no shame all right and you will survive this this is not life or death you're not in a crisis situation but we need to make some drastic changes and whether you do that now or 3 months from now and hope the market does whatever I don't know what the Market's going to do it may get worse for a while before it gets better but I do know this your life is real tight right now and you got two little babies and you want to see them flourish and grow and you want to have joy I don't want to see you distracted by money stress during that as they grow up they're not going to remember the house I promise they're going to remember their dad being there making eye contact and they Channel your energy it's contagious their nervous system will take on the stress that you have yeah so true create your free every dollar budget today the simplest way to budget for your life