June 6, 2024 • 60 mins
Some call it chaos; we call it comedy! James and Johnny are back with a hysterical recount of their moving and home buying escapades. From shedding pounds and unnecessary junk to the hilarious misadventures of loans and misspelled names, our latest episode is loaded with real-life drama and laugh-out-loud moments. We navigate the financial and emotional hurdles of relocating, sharing our tips and tricks for a smoother ride, and trust us, you'll need the laughs if you're in the middle of a move yourself.
Ever wondered about the hidden costs lurking in home buying? Brace yourselves as we uncover the impact of mortgage interest rates over the long haul and the crucial role of realtors and loan officers in this labyrinth. We'll dissect the Florida Save Our Homes Act and reveal how to make the most of its portability option. Plus, we expose the shocking fees in commercial real estate, like the dreaded CAM reconciliation fee, and clear up common misconceptions about credit checks during the loan process. Get ready to become a smarter homebuyer!
Finally, we weigh the pros and cons of renting versus owning, especially for today's younger generations grappling with a tough housing market. We'll explore state-by-state housing price trends, spotlighting the most and least affordable places to buy a home. And as always, we'll sprinkle in our personal moving nightmares and triumphs, from battling Florida's sweltering heat to dealing with storage companies. Whether you're contemplating a move or just love a good story, this episode promises a blend of humor, practical advice, and a whole lot of heart.
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Ryan Selimos (00:09):
Good Hello gents.
How are we doing today?
James, you're looking slimbuddy.
James LaGamma (00:18):
Oh, fuck off.
Ryan Selimos (00:19):
It also looks like you're in a very empty room
with an echo.
It looks like it's just youyourself in the room.
What's going going on there?
Do you like take everything out?
James LaGamma (00:28):
oh well, I you know I slimmed down on the body.
I also slimmed down in, uh, allthe furniture and stuff I have.
My house it's all gone.
Just got this chair and alaptop.
Ryan Selimos (00:40):
That's it what's going on?
We got a garage sale this week.
You got the whole room out inthe front yard.
What's the situation, man?
He was in an.
Kenny Massa (00:48):
XS scan and just got rid of everything in his
life.
James LaGamma (00:51):
Yeah, I got rid of everything in my life.
Lose the XS.
I had to lose all the weightman I was carrying around too
much.
Kenny Massa (01:00):
Yeah, exactly One XS scan in your life Yep, yep
yeah exactly One deck's a scam.
James LaGamma (01:03):
It's in your life , yep, yep, no, no, no, we're
moving, exciting, really Okay,why are you?
Ryan Selimos (01:15):
acting like you didn't know that.
For the suspense, let's go topart two.
Johnny, are you in the sameroom with him?
You're looking at me as well.
What's going on on that?
Kenny Massa (01:23):
Yeah, he kind of looks like the same walk-on A
little bit, a little bit.
Ryan Selimos (01:26):
It does, it does.
This is our virtual backdrop.
You didn't know, guys.
Obviously I did not miss thememo there.
Jonny Strahl (01:34):
You mentioned he's slimming down a little bit on
the body slimming down on thefurniture.
You know he's moving a newhouse.
Ryan Selimos (01:40):
I am doing that also, but I also think, James,
you missed one point we'reslimming down to the bank
account right now.
Jonny Strahl (01:46):
That's for damn sure, yo Holy crap.
James LaGamma (01:52):
It's bad, dude.
It's like a crisis.
Ryan Selimos (01:54):
Woo, my lantern.
James LaGamma (01:56):
Oh my God, the stress Just money is going out,
none is coming in.
Ryan Selimos (02:01):
It's the first time my signature ever felt so
important in my life.
Jonny Strahl (02:05):
Just keep signing away, keep giving them.
Kenny Massa (02:07):
Oh yeah.
Pack it like that big.
You're just like shit to sign.
Ryan Selimos (02:13):
Just wait because you know the loan is going to
get sold off somewhere, probablyto a big bank.
Just let it be the bank thatyou actually bank with, and then
you get to log in every day andsee just how much you owe and
how little you have in youraccounts to pay it off.
Kenny Massa (02:28):
I'm not gonna name any names, but last time we we
got, uh, our last property thatwe got, they sold off the loan
like literally within like 24 Idon't even know if it was 24
hours, like fucking yeah weliterally went to our car after
we signed everything.
It was sold off.
It was a big bank, the one whobought it.
But they typed my fucking namewrong and it was a like.
(02:55):
It was like a.
They added like some letter atthe end of my first name and it
was like a whole thing to get itchanged.
Jonny Strahl (03:02):
Yeah.
Kenny Massa (03:04):
Apparently, I didn't do anything wrong.
Someone typed it wrong in thesystem and then everything was
wrong, like how the hell did youguys close?
James LaGamma (03:14):
you shouldn't have been able to close it was.
Kenny Massa (03:16):
We know we did close with the people who we
originally got the loan with andthen when they sold it off,
during that process it gotmessed up.
Everything on the original sidewas fine, but when they bought
the loan, when they sold it off,the new bank that acquired the
loan typed it in wrong, yeah, sothat was a whole.
That took like six months oftime.
James LaGamma (03:38):
I really want you to name names now.
Ryan Selimos (03:40):
What was that movie with Michael Scott.
You know the Big Short.
If I write a loan Fridayafternoon, big Bang's going to
buy it by Monday lunch.
There you go, kenny.
They're right there.
We're just back in 2008.
Didn't even take that long.
James LaGamma (03:54):
Every loan is getting sold onto the secondary
market.
That's how they commit you andhow you're getting your rates
and all that stuff.
Kenny Massa (04:02):
At the end of the day, who really gives a shit
where the money's coming fromit's?
All coming from the same placeon the very, very top, even the
local banks.
They're just trying to buildbig enough to get bought by the
big banks and the big banks justpower it down.
Anyway, it's all coming fromthe big banks.
Jonny Strahl (04:19):
It's probably the same five.
Kenny Massa (04:21):
There's like five of them.
That's it, we could go down areal interesting.
We'll get back on track.
Jonny Strahl (04:33):
Actually, you know what this is a great time to
take advantage of James' silence.
Kenny Massa (04:37):
Yeah, you just go in on it, good comment.
James LaGamma (04:41):
You guys are ridiculous.
Ryan Selimos (04:42):
He's very comfortable in the process
because he's going through itright now.
That's the only reason he'svery comfortable with the
process.
The home buying experience.
James LaGamma (04:51):
No, I'm not comfortable at all.
This has been miserable Buyingand selling.
Johnny has the luxury ofkeeping his house.
I'm fucking selling and buying.
That shit is just the worst.
Timing problems so muchinformation that you do not have
to be able to make decisions onthe next home.
It's nuts, it's really.
(05:11):
The moving process is terrible.
Thank God it's just like 45minutes down the road.
I'm not moving like acrossstate lines that would be.
I couldn't even imagine doingthat.
Ryan Selimos (05:25):
Hey, listen, the moving process is not that bad
when you hire movers.
Baby, when I moved into thishouse I played golf with you
that morning, james.
We went out, I played horrible,came back.
All my shit was at the newhouse.
It was a very nice experienceoutside of the shitty golf.
Kenny Massa (05:44):
Well, we know where James's stands DIY or pay the
guy.
James LaGamma (05:49):
No, I went in the middle.
I'm in the middle of the packrunner here.
All right, I've got pods.
Okay, so the shit will be there.
Kenny Massa (05:57):
Pods are good, it's just a lot cheaper.
James LaGamma (06:01):
So I just, I just had to fill them up myself, you
know, because none of myfriends wanted to come around
and help me.
Ryan Selimos (06:08):
That is inaccurate , inaccurate.
Kenny Massa (06:12):
You didn't even ask .
James LaGamma (06:14):
Oh, I asked Ryan and Johnny.
Ryan Selimos (06:16):
Hey, I was out of town.
Right, I was out of town.
James LaGamma (06:20):
You were here last weekend, but I was not
asking you to come after yourfucking honeymoon.
Jonny Strahl (06:26):
I got back on Saturday.
Ryan Selimos (06:27):
That's kind of crazy.
Kenny Massa (06:29):
You just got back from Europe.
James LaGamma (06:30):
That's when the pods showed up.
Jonny Strahl (06:34):
Hey babe, we're going to put our house on hold
when we're moving.
I'm going to go fucking moveJames and stuff Because he
doesn't want to hire too many totruck.
Okay.
James LaGamma (06:45):
So you know that name really just puts a puts a
thought in your head we're goingto leave it there.
We're going to leave it there.
Ryan Selimos (06:57):
If you have not tuned in, to never mind Too many
of us very good company.
Jonny Strahl (07:05):
It's been Very good experience.
James LaGamma (07:08):
Instead it was like one and a half men over
here.
Jonny Strahl (07:11):
Yeah.
James LaGamma (07:16):
I thought you liked that reference.
Two and a half men in the showMe and.
Lydia, I thought it would befunny, whatever.
Kenny Massa (07:25):
You know what's got to be true, though, that I was
just thinking about when yousaid that you were selling and
buying kind of in in synergy,james, there's people like you
had.
You were fortunate to be ableto find a home and then sell in
a really time, like it reallythere was a scare for a hot
second there, though.
There's people that they selltheir home and then they got to
rush to go find something thatsucks.
James LaGamma (07:48):
Well, that's kind of what happened.
So right now, inventory isreally low, and so we've been
monitoring the market of wherewe want to move, which is the
Claremont area of Florida, andwe just hadn't seen many things
pop up that met our wants andneeds list.
We wanted a pool, this time thefour bedrooms, so these things
(08:08):
that we were like these arenon-negotiables.
Blah, blah, blah.
There wasn't just many homesavailable and so when we put our
house on the market, it went inless than 24 hours and we still
hadn't picked a home.
So it was crazy, because we wentand saw homes.
We were like the pictures weretoo good to be true on like
(08:30):
Zillow and all those websites,so we had no clue if we were
going to find a house thatactually looked the way the
pictures were portraying it.
We thought we were just goingto get totally just thrown off
guard every time we tried to goview homes totally just thrown
off guard every time we tried togo view homes.
Thank God, we found somethinglike three days later that
popped up and we were able tosnag it.
(08:50):
So we got lucky because we had30 days to find a home.
Yeah, so we only had six.
We were allowed 60 days toclose on this house, so it
worked out, everything workedout.
It was good, but for a hotthree days we were stressing.
Kenny Massa (09:09):
Yeah, I think it happens a lot.
James LaGamma (09:11):
You're 100% correct.
Kenny Massa (09:14):
Well, it's definitely stressful.
I would think I've never beenin that situation.
James LaGamma (09:20):
Well, on the other side of that, Kenny, one
of the things that we hear thathappens a lot in the mortgage
industry there's a lot of timerequirements, all this crap that
happens and so sometimes, eventhough you want to close on a
certain day, you're not allowedto close on that day.
And so there are people that areselling their home that
literally the moving truck isparked outside the next house
(09:41):
and they can't close and so theyhave to go get hotels and all
this stuff.
So it's really important tomake sure you're staying on top
of the mortgage process,understanding what documents are
getting sent to you, beingtimely with signatures and all
that shit.
So that also could suck, soit's kind of the flip side of
that.
Kenny Massa (10:01):
Yeah, tough.
And then on top of the factthat people aren't able to find
houses in affordable priceranges these days because of the
market, that's a wholedifferent story.
But finding a house easybecause of the features and
desires that you're looking for.
But now it makes it even moredifficult because the prices are
(10:21):
just insane, especially incertain markets, but it's just
through the roof in many areas,from what I've seen.
We're just looking but, I don'tknow You've seen it kind of
more firsthand because you'vebeen actively going into these
houses.
Ryan Selimos (10:39):
It's a crazy time to be a homebuyer in the good
old US of.
James LaGamma (10:43):
A time to be a home buyer in the good old.
Jonny Strahl (10:47):
US of A John.
Did you have?
James LaGamma (10:48):
similar experience trying to find your
house, or was it felt lessstressful or just about as
stressful?
Ryan Selimos (10:56):
I would say the main stress trigger was
obviously buying a house andthen not having someone rent
right away, so paying twomortgages.
(11:16):
That was always a fear, alwaysa hesitation there.
When you're thinking about it,it was just.
You know, we're proactivelylooking, never like very
aggressive, but in this marketright right now, even though you
keep hearing different mixedmessages, things are cooling
down, it's not as crazy.
You have to be aggressive.
There was two or three houseswe looked at waited a couple of
days.
By the next week they were goneor they were impending right.
(11:41):
So the house we looked at mostrecently last month it was same
day put in an offer next day,had four different offers and it
was a bidding war.
So, um, yeah, it's, it's funtimes, obviously fortunate,
thankful to be in the situation,but it is, uh, it's a stressful
piece and what's reallystressful is going through it
(12:03):
your first time, but also likeyou just don't know, like
there's just so much informationand you're putting trust in so
many different people's handsthat are experts and
knowledgeable in what they knowand until you start to really
look at the end of the numbersafter 15 years or 30 years, it
really gets you like dang, I'mreally spending this much money
at this rate to hope it goesdown at some point.
(12:25):
So yeah, it's been quite theexperience.
Let's just say that.
James LaGamma (12:33):
Dude, when you got your closing disclosure, go
look at the tip, the totalinterest percentage, and it'll
tell you a total percentage ofthe amount of interest you'll be
paying based off of the loanamount that you have.
And it makes you sick, it'sscary.
I think mine's somewhere around70% and it's just going to be
(12:55):
an astronomical amount.
So, like you, never because ofinterest, obviously, you're
never paying the mortgageamounts.
So if you get, like, say, thenational average mortgage amount
right now, which is like400,000, you're not paying
400,000.
You're paying basically 750,000over 30 years.
Jonny Strahl (13:15):
Yep.
James LaGamma (13:16):
If that's the proper math, 70% of 400,000.
Kenny Massa (13:20):
Give or take, yeah.
James LaGamma (13:21):
On top of it.
Yeah, it's about, it's aroundthat figure, probably give or
take $20,000.
Jonny Strahl (13:26):
Yeah.
Kenny Massa (13:28):
Assuming that you make regular payments on
schedule for a 30-year term.
James LaGamma (13:32):
Yeah, and not to mention taxes.
Taxes keep going up.
And, johnny, by the way, youmight want to look into this
thing.
We're going to be doing it, butin Florida there's actually a
statute on the Save Our HomesAct where you can do this thing
called portability, so youtransfer your taxes from your
(13:55):
current home that's homesteadedto your new home.
Ryan Selimos (14:00):
You only get to do that one time, though in a
lifetime.
James LaGamma (14:03):
So we're going to do it.
So that could be something.
Yeah, I think you have to justfile by March of next year when
Homestead's required, and thenyou can get the portability, so
that way your next assessmentthe following year doesn't go up
to the market adjust value.
Ryan Selimos (14:24):
Which is interesting because when you
like sit down with someone andthey break that down and share
that with you, like that's justsuch a good thing to know that
many people may not know right,or unless you do a significant
amount of research and you'reable to really retain whatever
information you're reading,because, again, there's just so
much out there.
James LaGamma (14:44):
But yeah, no, that's a good call for sure did
someone actually tell you aboutthis, or is this your first time
hearing about it?
Ryan Selimos (14:52):
no, our um, our realtor um, who's obviously
family friend, you know beendoing it for years sold the
first house, worked with bray onher house um, so yeah, but it's
I mean it's critical, right?
James LaGamma (15:10):
yeah, well, I was curious just if who told you,
if it was someone that was anindustry professional?
Because I mean, even though mymother is our realtor, that's
who told me about it, which ismy mother.
So it's like, well, where doyou hear this stuff from?
That's what I was more kind ofgoing towards, is do you
actually hear it from theindustry professionals trying to
(15:30):
set you up for success and give, like you kind of said, you're
you're kind of putting yourstuff in their hands and so you
hope that they can guide you?
You got your loan officer, yougot your real estate agent.
You know they're kind of yourteam to help get you into a home
of your dreams, but also withinyour means.
So it's hard, it is.
Kenny Massa (15:50):
I think one of the biggest things is just being
aware of all the unexpectedexpenses that come with buying a
home.
It's not like you pay $400,000and you just write a check for
10%, 20%, whatever it is, andthen it's done.
There's a laundry list ofadditional expenses between fees
(16:10):
and from every single personthat you talk to.
But that was one thing thattook me by surprise when I
looked at that.
When we bought our first, itwas a rental property when we
bought the first property, butstill regardless was that was a
lot, it was.
There's a lot of like a lot ofI wouldn't say hidden shit, but
unaware shit that is on this bigbill that you don't expect yeah
(16:35):
, but they try to it's all theytry
James LaGamma (16:37):
to alone they try to do a good job of getting you
the information up front withthe loan estimate, and fees
aren't supposed to change.
There's certain tolerancesdepending on whether or not
you're shopping for stuff andall this other stuff that goes
along with that.
I won't get into it, but you'resupposed to, as a buyer, look
(17:01):
at that loan estimate that'skind of your document to compare
quotes.
Use it as a quote in a saying.
That's how you should shoparound and compare LEs to other
lenders, because one of thebiggest things is I can't
remember if it's 30 days, 3months or what the timeline is,
but when you're shopping aroundand you're getting your credit
(17:21):
pulled, you can do that multipletimes at multiple different
institutions to find the bestdeal essentially, and not get a
ding on your credit for allthese hard pulls, and so that's
kind of the thing you want toget that loan estimate so you
can see, okay, what's the feestructure looking like, what
rates.
Am I getting that kind of stuffto stare and compare the deals.
Now, how many of you usedifferent lenders?
Kenny Massa (17:47):
Or shopped around at all.
James LaGamma (17:48):
I guess you were one and done you did two, ryan,
I did two.
Kenny Massa (17:52):
But I think everyone's afraid of getting
their credit.
Ryan Selimos (17:56):
I don't want to sell the topic.
That is the dumbest thing.
Do it, do it.
Do it For something that needsto be done that is required you
something that needs to be done,that is required, you get
dinged for that.
That's right, baby.
That's the good old US of A.
Kenny Massa (18:11):
Anyway, yeah, there's fees that come about in
anything.
Right now we're talking aboutresidential, but the commercial
real estate fees don't get mestarted on that oh well, yeah,
that's a whole different camreconciliation fee.
Dude, if you're thinking aboutcommercial real estate, just ask
(18:34):
someone about camreconciliation fee.
If you want to get kicked inthe balls, pay cam
reconciliation fee once a year.
That's a kick in the balls.
No one one tells you about itMm-hmm.
Yeah, that's not fun,especially if you have a big,
decent-sized monthly payment.
Ryan Selimos (18:53):
Is that like the cost from landscaping and
janitorial, all that type ofstuff?
Kenny Massa (19:03):
CAM is Common Area Maintenance.
But the issue is, if we're inSouth Florida, like all that
type of stuff, like it comeswith it, cam is common area
maintenance.
But the issue is if, like we'rein South Florida, right, so
technically common areamaintenance could be increases
of insurance the building's airconditioning unit fails and they
got to get new air conditioningunits for whatever $80,000 or
whatever the fuck it is.
They're paving the roadsoutside, they're updating rugs
(19:27):
and changing this and changingthat.
Now I would say most of itdepending on the commercial
property company.
I would say they're pretty fairwith a lot of things, but the
biggest thing that I've seenkind of like kick us in the
balls, to say the least, is theinsurance aspect.
Insurance increases on theproperties get fed back down to
(19:53):
the tenants and it all comesdown to an additional fee per
square foot and that shit addsup a lot.
Tens of thousands of dollars, alot, I mean.
Ryan Selimos (20:07):
At least you still have insurance in South Florida
Isn't there almost a run oninsurance companies where
they're starting to pull out ofthe state, especially in the
coastal areas like a West Palm,a Florida Lauderdale or Miami?
So, on the one hand, what wouldyou rather be getting kicked in
the balls for the increases ininsurance or being put in a
situation where you don't haveinsurance?
Kenny Massa (20:26):
Technically, I don't own the fucking building
anyway.
So who gives a fuck?
I rent, so then fuck them.
It's kind of like 50-50.
I don't fucking own theproperty, so it's a little bit
different.
Do I lose my unit?
Technically?
Yeah, but I'm on a shorter term.
I don't own the building.
So it's just one of those typesof scenarios where, yeah, I
(20:51):
don't.
I don't know when you, when youlook at it, all said and done,
over a five-year term, how muchyou've paid for for these types
of expenses.
It's a lot of money, yeah, yeah, but it's all I couldn't
imagine in New York City, wherethese buildings are close to God
only knows $75 to $150 a squarefoot.
(21:12):
And then they have massiveincreases on insurance and all
of these different rules andregulations that everyone's
aware of that don't abide bypopular demand.
And I couldn't imagine,couldn't imagine.
Well, I guess that's the reasonwhy they have issues with
filling office space in new yorkto your point, ryan.
James LaGamma (21:41):
Insurance has been going up nationwide too,
which has been hurting a lot ofpeople.
Ryan Selimos (21:47):
What isn't going up nationwide.
Find me one thing that's goingdown nationwide.
I would love to hear that,because everything is fucking
going up Going down.
James LaGamma (21:58):
My bank account.
Kenny Massa (22:00):
James' bank account is going down.
Jonny Strahl (22:04):
Yeah, now it's.
James LaGamma (22:06):
You know, what I was mostly looking forward to
with selling this house wasseeing for one day, and one day,
only $100,000 in my bankaccount.
I don't even get to see it.
They're wiring it straight tothe other house.
Ryan Selimos (22:23):
Crazy, how quickly , crazy how quickly wiring money
can happen though, when theyneed the money just goes right
through, no questions askedcapital test for $25 in two
business days through Venmo.
It doesn't go through but hey,wire $100,000 right away unreal
(22:44):
kind of a question for for ofyou, james and John, since
you're going through thisprocess and you were previously
homeowners.
You bought at a time likearound 2018, 2019, 2020, where
rates were at an all-time low,and now you're buying at a time
where rates are not all-timehigh, but they're a lot
(23:05):
different.
So how did that affect yourdecision to get into the market?
Johnny, on your hand, you'rekeeping that house.
You're renting, james, you'reselling and then moving into new
one.
Did you hold off thinking therates were going to go down?
How long have you been thinkingabout this?
And just what was thatexperience?
What was that thought processaround the rates being so high
(23:27):
at this point in time?
James LaGamma (23:30):
Johnny, you want to go first?
Jonny Strahl (23:31):
You can go first, good sir.
James LaGamma (23:35):
I insist.
Ryan Selimos (23:38):
I don't know.
I just feel like you can doublethe rates and it still doesn't
even quote unquote match it'sstill higher.
You double the rate we it stilldoesn't even match.
It's still higher.
If you double the rate we hadin 2019, which is nuts, we can
almost triple it.
That's how low it was.
I don't know.
I think there's a lot thatcomes with it.
What are you looking to do inthe future when it comes to the
(24:03):
family?
Purchasing a bigger home youwant a pool, you want this, you
want to be in the future, rightlike when it comes to the family
, you know.
Purchasing a bigger home youwant a pool, you want this, you
want to be on the lake, you wantthat all these things that come
with it, right?
Um, for me, one of the biggestdrivers was from renting, or
trying to rent was one to be putin a position where you have to
do it to really figure out ifyou're built for it, and that
(24:26):
was something I kind of.
I'm nervous, right, cause weall been in a spot where we
rented.
It's always nice to pick up thephone and be the guy that says,
hey, this is broke, go fix it,but to then be in the position
to where you're going to getthat call.
Jonny Strahl (24:40):
And then, hey, I'm working on the DIY thing.
We're going to get there.
Ryan Selimos (24:43):
Hopefully I've quite the learning curve.
But again, I don't know.
I just it's just a crazy timeand you know who knows, six
months from now, what could themarket look like?
(25:04):
We have absolutely no idea.
It's an election year.
Two Things always get a littlebit unique.
In November it's we're in a.
I feel like we said this forthe last couple of years, but
it's like what if scenarios likewhat can happen?
What will happen?
Nobody knows.
So the more pondering and themore waiting, it's just created
this gap to where we're here.
(25:25):
We're now doing it and, um, Idon't know.
We'll see if it was worth it ornot when the market goes,
whatever direction eithergreater or less, I don don't
know.
Jonny Strahl (25:34):
Ryan, you could be buying a foreclosed house for
$150,000 for all we know herepretty shortly, who knows?
I don't know Hope, so That'd benice.
I mean, james and I would bekicking ourselves.
James LaGamma (25:50):
I agree with you, johnny.
One of the biggest things is,like you're right, the election
year, right, that couldmassively change where rates go.
Depending on who's in officechanges the whole economic
outlook, what's going on, howthings are going to work out.
(26:14):
So there's just a what, if?
But at the end of the day, Idon't have a crystal ball.
So to Johnny's point you've gotgoals and aspirations.
Do you want to start a family?
You want these things?
Blah, blah, blah.
If you have the means, youcan't gamble too much.
I mean, yes, you can, but atthe same time, if you're ready
(26:39):
to go and you have the means andthe timing's still okay for you
, there's no way to say, well,no, I'm going to hold off a
couple of months because I feellike rates are going to drop.
You guys have heard me say Ialways said we were going to
start looking in August,september time.
We decided to go earlier.
It kind of happened all of asudden.
(26:59):
But it's just, we alwaysplanned for this year.
Three, four years in the houseis when we wanted to basically
exit.
Now, granted, I actually wasthinking about doing what Johnny
was doing originally too.
Granted, I actually wasthinking about doing what Johnny
was doing originally too, butwe decided we wanted to go for
the forever home, and so we didneed the extra equity out of
(27:27):
this house.
However, walking away from a2.5 interest rate is that's hard
, that hurts.
Ryan Selimos (27:33):
You'll refinance, don't worry.
It's going to bust at somepoint.
It's a bubble.
James LaGamma (27:39):
Don't worry, james.
Oh man, it hurts.
But here's the other side ofthings too, because we were able
to make a larger down paymenton a house, hoping that housing
prices stay a little stagnant,if not just continue to rise,
especially in the area that wepurchased, where we're expecting
the market to only increasejust because Claremont is an up
and coming area.
(28:00):
A lot of building is happeningout there, et cetera, et cetera.
The minute that you put, say,20% down on a home, you've
already got 20% in equity, right?
It's kind of an interesting wayof looking at it.
I already have that much equityin this house.
Now, straight out the gate, acouple more years we're paying
(28:20):
down the mortgage on it, blah,blah, blah.
We can use that and leveragethat to do other things, like
maybe go into figuring out if wewant to get a rental later on,
when maybe rates are lower andinstead of we could refinance.
But instead of that, you know,take the cash out and
essentially go maybe buy anotherproperty and start that process
.
Then you never know, there is,there is a way to finagle debt
(28:45):
in your favor.
But again, you know, sometimesyou're lucky and you've got the
means and you have the abilityto do these kind of things, and
so you might as well just jumpon the opportunity if it's, if
it's, if you feel like you'reready for it.
Ryan Selimos (29:00):
so facts and you guys, I'm curious, like and I
know there's one person thatcomes to mind right away, he
he's all over social media butlike, do you guys know anybody
who are just 100% against thementality of owning a home and
(29:25):
are all about renting and thinkthat there is no such thing in
owning a home as an asset?
Like, do you know anybody thatway a home as an asset?
Do you know anybody that way?
I wouldn't say I know aspecific person, but I do think
(29:45):
that mentality is becoming moreand more common, just of
everyday people.
I think it has to do with justthings being more expensive and
people from a DIY standpoint,maybe this generation and
younger generations not being ashandy as older generations, so
kind of those factors, and justtalking with people about it,
people are more open to the ideaof renting.
People are more open to theidea of, like, leasing a car
versus owning a car.
So I think that mentality isdefinitely more prevalent now
(30:07):
than 15, 20 years ago.
Now is it a fad or is itsomething that continues We'll
wait and see but definitely morecommon, whether that's a good
thing or a bad thing.
Also, I think this group heremaybe not, but who knows?
James LaGamma (30:31):
I feel like that's a funny question that you
asked, johnny.
I feel like I do know someonethat told me I'm renting until I
die, that there's just no meansfor me to fucking.
I'm not going to buy becauseit's all bullshit.
I'm trying to remember who thefuck said that to me.
But anyways, again the problemis you're throwing, throwing
(30:54):
your money away.
At least you get equity.
Yes, you can get foreclosedupon.
So that's probably the wholepoint of like.
Do you actually own the home?
No, you don't.
You have a fucking mortgage,you have a loan.
It's the same thing foreverything.
Like you don't own your truckwhen you buy your truck until
you pay off the loan, it's.
It's just, it's a means ofbeing able to get something when
(31:14):
you don't have the ability topay it full out.
You know right at the gate, butthen again you can leverage
debt Most rich people leveragedebt to make more money.
You can do that with buying ahome where, instead of paying
$2,000 a month if that's if youcan even find rent for that
these days for a house you'rejust throwing that money away.
(31:39):
If you're at least putting ittowards a mortgage again, you
can do things with that.
You can pay for schools, youcan pay for getting improvements
, whatever you need.
You can take the money out ofthe equity in your home and
build that.
Yeah, you need.
You can take the money out ofthe equity in your home and
build that.
Plus, there's a lot of anargument to be made that buying
a home can help buildgenerational wealth, because
(32:00):
then you can give that assetwhen it's actually paid off in
30 years, when you're older, andnow it's just straight profit.
Whatever, your kids want to endup doing with it Now.
Granted, it can get ugly atthat point in time, some people
get a little greedy.
But kids want to end up doingwith it now.
Granted, it can get ugly atthat point in time.
Uh, some people get a littlegreedy, but yeah, uh, yeah, I
don't know if that mentality issmart.
Kenny Massa (32:23):
Um, I don't think I don't think it's a straight and
narrow answer.
I think that it really comesdown to someone's personal
finances at that point in timeand also their way of life.
At that point in time Now, whenyou're a single guy and you're
younger and you're moving arounda lot, you're not really sure
(32:45):
about stability.
Yeah, I don't think it'sprobably the right
recommendation to maybe owning ahome if you're going to be
moving around a lot, the rightrecommendation to maybe owning a
home if you're going to bemoving around a lot and you're
not going to really be takingcare of your home, because I
think it's something that itjust depends.
Maybe an apartment, a condo,there's certain things like that
that I think might be better,because then you don't really
(33:06):
have the minimal maintenancethere.
You have HOA payments.
But I think it really justcomes down to personal finances
at the most.
I do see why they say that.
Right, because if you can make alower payment now because
renting is cheaper than amortgage, it depends where you
are.
Go buy something in downtownMiami, buy a condo in downtown
(33:35):
Miami.
Tell me that you're not goingto find something for less than
a couple million.
Go rent.
Probably going to findsomething cheaper.
If someone bought that homefive to 10 years ago because the
mortgage, the, the amount ofthe home was less.
And they can essentially likecharge you at a lower rate
(33:56):
because they're not paying on a$4 million home, they're paying
on a 1.5.
There's just very manycircumstances.
I do think that there arecertain markets that you can
rent for cheaper than mortgaginga home.
I think that concept is you'rebasically having more cash in
your pocket today and that'sallowing you to be able to do
(34:19):
things like invest it.
That has something that ahigher yield.
I would say a very, verystrategic and devoted way of
investing, knowing that everypenny is going into a higher
yield return, by saving themoney in their pocket today and
(34:42):
putting it into a, an assetthat's going to yield a return
of 10, 15% or whatever.
The likelihood of them savingthat money and then investing it
.
I don't know, but yeah, andlike that's, I think, where the
person that you're talking abouton social media.
That's what he's pushing yeah,well, he's.
Ryan Selimos (35:02):
you know it's funny.
You have, like all of you guys,valid points right and like
it's like, yeah, you can.
Let's just say you buy a fivehundred thousand000 house, right
, you put 20% down, yeah.
If you don't do that, yeah, youcould save $100,000.
But to your point, where areyou putting that $100,000 to
invest in?
And is that going to returnpositive?
(35:26):
You never know, because if youinvest in the market, maybe in
something else, maybe into acompany, I don't know Then again
you also see those people whohave developed long-term wealth
that own a bunch of multifamilyhomes and properties.
They go ahead and rent somethingbecause they own a bunch of
properties themselves.
It's interesting.
James LaGamma (35:48):
House hacking is really interesting too.
You get a duplex and then youlive in one side and rent out
the other.
My buddy's doing that right now.
He's getting ready to getanother duplex, I think maybe
even a triplex, I don't know.
Ryan Selimos (36:01):
Well, think about who did that in good old D-Land.
That's what Lynn used to do orstill does.
Jonny Strahl (36:09):
Oh, there still does.
Kenny Massa (36:11):
Oh, but I also think the concept of having a
home on the asset side of aledger is not correct.
I think that is a it's theright way of saying this a
bank's way to get more people tobuy homes, because a home is
(36:36):
not an asset, because you'rejust're just shoving money.
Yes, you're gaining equity init, but, like james said earlier
, how much of that is interestand how much of this is that
principle for the first five toten years you're not paying.
You're not gaining much equityin the initial five to ten years
unless you're paying downprinciple and you know all that
bullshit.
James LaGamma (36:53):
But which is the smart move, but that's so hard
for people to be able to do that.
Ryan Selimos (36:58):
And I know I can't do it.
Kenny Massa (37:00):
And it's a what if right.
No, like I think we know ofthat, like we learned that.
I learned that like years agoactually in college and one of
the finance classes.
But there's a lot of peoplethat don't know that you can pay
that additional principal andthen like that's.
James LaGamma (37:20):
But then you also have the comment of time value
of money.
Well, why am I paying downextra on principal Instead?
Why can't I just go invest itIf I've got the money?
That's a so essentially like.
The idea is you get a homewhere maybe it only takes up
about 10, 15% of your debt, towhere you can add about, uh, an
extra mortgage payment a year ontop of that in in principle
(37:43):
down payments, essentiallypaying extra on your on your
mortgage payment and and yeah,but again, that's more money.
You could be investing in thestock market or whatever the
fuck you want to invest.
It's just dude.
Everyone's got their own ideason what works and what doesn't.
There's really no recipe thatworks for any of this stuff.
You just got to do your own duediligence, figure out what you
(38:04):
think is going to work out, makesure that you put the time and
effort in researching it and arewilling to lose too, because
not everything's a winner.
Kenny Massa (38:14):
Yeah, going back to that old saying right, there's
more than one way to skin a cat,definitely on your road to
creating financial freedom, ormillions, or whatever you're
after, but there's definitelymore than one way and it's
different for everybody, basedoff of many different factors.
Jonny Strahl (38:33):
Yeah, yeah.
Ryan Selimos (38:38):
Good times more than one way and it's different
for everybody, based off of manydifferent factors.
Yeah, good times.
Take the dave, uh, dave ramsey,uh, what is the baby steps?
Jonny Strahl (38:47):
step number six pay off your home early.
Pay for it in cash.
Kenny Massa (38:53):
Yeah, I mean I.
James LaGamma (38:55):
Is that the guy on social media you're talking
about, Johnny?
Ryan Selimos (38:58):
No, I was Name drop.
I was talking about GrantCardone.
Kenny Massa (39:01):
Yeah, I knew exactly who he was.
Oh, okay.
Ryan Selimos (39:03):
He's been all over it lately.
Kenny Massa (39:05):
I mean Gotcha, Listen, Look.
I mean I think that there's alot of concepts that I believe
that he's got a point on Forsure, but there's just so many
variables to that.
If you're looking to staysomewhere for 20 years, 30 years
or forever, or if you're buyinga forever home, why would you
rent forever?
(39:26):
I agree.
Jonny Strahl (39:28):
I agree.
Kenny Massa (39:29):
But if you're someone who's young and you're
moving around and you're notsure and the market's crazy and
interest rates are high there'sa lot of printing money going on
, I mean you can probably find abetter deal.
And it also just depends onwhere you're living, right, if
you're in, if you're in utah,compared to new york city the
(39:51):
totally different world, totallydifferent factors.
James LaGamma (39:54):
So just so many variables world, totally
different factors, so just somany variables.
Yeah, I think uh, I actuallyhave the lowest states uh,
housing prices, uh, where is itwhere?
Is it yeah, right here thelowest state is iowa, with
(40:14):
medium home prices.
Kenny Massa (40:16):
What's the highest?
James LaGamma (40:18):
California.
Kenny Massa (40:20):
Florida's up there too, man.
Ryan Selimos (40:22):
Getting bigger.
Jonny Strahl (40:23):
Yeah, for sure I got a PSA announcement Listen,
florida.
Ryan Selimos (40:26):
We got hurricanes, we got insurances leaving the
state.
You know we're going to be gone.
South Florida is going to begone in 20 years from climate
change, all right.
So it's not a great place to be.
Don't move here.
It's not a great place to be.
Don't move here.
It's too expensive.
Stay the fuck out of Florida.
We're too far gone.
Go to Iowa or these otherplaces.
(40:47):
Just stop looking at Florida.
We can't help you.
We can't help ourselves.
Ryan, what people are youtalking to?
From what states though?
Fucking California, forstarters.
My wife, are you talking to?
From what state is that?
From?
Fucking California, forstarters.
Like my wife?
No, but these people, they comein, dude.
I see my parents, like someonecame in with a cash offer of a
(41:12):
million dollars.
My parents have lived in the.
It's just it's crazy.
Locals can't keep up the newmoney.
It's just it's crazy.
Locals can't keep up the newmoney that's coming in.
It's outrageous and I just Idon't understand it, because
Florida is just, it's a shit.
It's terrible.
So stay away.
That is my message.
Get the fuck out of here.
We don't want you.
We don't need you.
James LaGamma (41:32):
Ryan, did you see the video that I sent in our
group chat?
Ryan Selimos (41:36):
The Ryan, did you see the video that I sent in our
group chat?
James LaGamma (41:38):
The 30-minute video that you sent.
Yeah, you just needed to watchthe first five minutes.
Ryan Selimos (41:42):
Made about a minute and a half.
Kenny Massa (41:46):
I didn't check the time on it.
James LaGamma (41:48):
It's all about the first statement.
Florida is the fastest growingstate in the country right now
Get them out.
Yeah, I watched them.
Insane, Insane.
But let's play a quick littlegame.
Growing state in the countryright now.
Get them out.
Insane, insane.
Let's play a quick little game.
Let's see if you guys can guesswhat Florida's average home
price is right now.
Ryan Selimos (42:10):
Average.
James LaGamma (42:12):
The median home price.
Kenny Massa (42:15):
I would think really high, but I'm going to
say something like $450,000.
Ryan Selimos (42:20):
Okay, To scare people off $600,000.
Kenny Massa (42:25):
What I really feel like saying is about $1.7
million, but because everythingis expensive as fuck in South
Florida.
Ryan Selimos (42:34):
Realistically.
I'm going to say $350,000.
No way is in there, Dude.
There's a lot of areas outsideof the four main Orlando, Tampa,
South Florida.
Jonny Strahl (42:45):
Three main Orlando .
Ryan Selimos (42:46):
Tampa, south Florida.
You got to think of those otherareas, so that's why I think
350,000.
Yeah, 375.
James LaGamma (42:58):
402.
Ryan Selimos (42:59):
C2, get up, Stay out.
James LaGamma (42:59):
C2 get up, stay out now, this is from Forbes and
it's based on 2023 Q4 data,which is actually, I would argue
is probably higher than what itis now.
I think it's dropped a littlebit nationwide.
In comparison, though what wasthat, kenny?
Kenny Massa (43:28):
I said, if there's a place that has held those
prices, florida would probablybe most likely.
Obviously, there's some statesthat have home prices come down
more, but I feel like Florida ismore resistant to that than.
James LaGamma (43:42):
Yeah, I agree, I agree, but so for our good
friends in Iowa, where Ryanthinks everyone should move what
do?
You guys think is the medianprice there $175.
Ryan Selimos (43:54):
Oh geez, $260?
.
No, you said $260?
Yeah, $260.
I got $175,000.
Oh geez, no, you said $260,000?
Kenny Massa (44:00):
Yeah, $260,000.
Jonny Strahl (44:01):
I don't know, Okay , $175,000, $260,000.
I couldn't even freaking guesswhat it would be.
Let's go $300,000.
James LaGamma (44:08):
$229,000.
Ooh, kenny, you were close.
You know what happened.
Ryan Selimos (44:14):
But if the price is right.
James LaGamma (44:15):
you're close, you know what happened, but in the
prices you're over.
So I think technically Ryanwins.
Damn All right.
Ryan Selimos (44:27):
You know how big the average lot size in Iowa is?
That's actually a good question, acres.
James LaGamma (44:31):
Well, my in-laws live there, my sister-in-law.
Kenny Massa (44:36):
Do they all have land?
James LaGamma (44:39):
No, it's about the same as a normal house here
in Florida.
It's nothing crazy.
They're in Des Moines, Iowa.
I do think they got really goodprice for the house.
I mean, my aunt lives in theCarolinas, specifically South
Carolina.
She got crazy yard and a crazybig house for the money that she
spent.
Jonny Strahl (44:59):
Like it was insane , nice Um.
James LaGamma (45:02):
So there's definitely that case.
A lot of people like whatthey're doing essentially
leaving from the large pricedyou know States and moving to
those lower price States andthen you get just so much more
bang for your buck, yeah, somuch more.
It's insane.
Kenny Massa (45:20):
Yeah, it is crazy.
James LaGamma (45:23):
But the the crazy part right now is obviously
you're seeing everybodycomplaining about how people
younger people don't have theability to buy homes like
everyone else does.
Jonny Strahl (45:38):
Yeah.
James LaGamma (45:40):
And it's interesting.
So one of the like Bankrate hasa table out there that shows
you like, based off thehomebuyer's age, the younger the
buyer, the more likely they'regoing to have a smaller down
payment.
Jonny Strahl (45:57):
Makes sense which is insane.
James LaGamma (46:02):
That hurts qualification rates, that kind
of stuff.
Ryan Selimos (46:08):
Is that really that insane, though, that the
younger the buyer, the morelikely to have a smaller down
payment, I mean, they have lessnet worth.
I'm not totally surprised, tiedto that, though they have less
net worth.
Kenny Massa (46:17):
And the reason, but I'm not totally surprised.
James LaGamma (46:18):
Tied to that, though, it's percentage based
right Right now, uh, 24 to 32 is8% down.
Um, but that's percentage of ofthe home values that are higher
nowadays than what everyone wasused to.
I mean, literally three yearsago the house that I bought was
lower than 300K and now it'sselling for 400K.
(46:42):
That percentage back then wouldhave been much higher.
It used to be like in the 13,15%.
Now it's down to 8% becausethey're not catching up the
household income.
That's the problem right there.
Income's not adjusting with theinflation and it's tough, you
(47:03):
know.
Yeah.
Kenny Massa (47:04):
I see it from both angles.
James LaGamma (47:07):
It took us a while to start making some
decent money, you know, but Ican see it's tough.
They want to buy a home, justcan't afford it Compared to back
in the day.
That's what everyone's doing.
They're comparing it to back inthe day.
Rates back in the day Blah,blah, blah.
(47:28):
Rates back in the day, though.
Ryan Selimos (47:32):
Our parents bought at 10%, 11%, 12%.
It's an interestingconversation when you hear you
know individuals 20 to 30talking about, yeah, it's too
high, it's too expensive, andthen you have the older
generation come in and say, well, you know the prices they paid.
Now again, a house back thenwas 150 000, but also wages back
then were were less, so it'sit's.
(47:54):
It's an interesting debate.
Yeah, I mean, but 10% to 11%.
At a $100,000 house, the brandnew five bedrooms, yeah, you
might be making less money, butlet's just keep it real.
Someone making, let's say,$60,000, $70,000 out of college
right.
Nowadays a lot of places arelike $50,000, $60,000.
(48:18):
Okay, college, right.
Nowadays a lot of places arelike 50, 60k, four or five
hundred thousand dollar houseversus a hundred.
And you said 150 000 house at30, 40k, like the cost of of
what people have been making orwhat people make.
I feel like it's different whenyou look at it from like
$10,000, $20,000, $30,000.
(48:38):
But when you talk about a homeand what the actual breakdown is
, I feel like it's way craziernow.
Jonny Strahl (48:46):
Oh, it 100% is.
James LaGamma (48:48):
So let me put the perspective behind it Ryan
You're talking about.
Back in the day, I think themedian income was somewhere
around like $35,000 for thehousehold income On the $100,000
house.
At a 9% to 11% interest rate.
The income to qualify wassomewhere around that $35,000
(49:10):
mark Because that's incomeratios and such income ratios
and such.
Well, nowadays, at a $400,000,mortgage rates are sitting
around 7% national average.
Your income to qualify,generally speaking, is around
$120,000 for household income.
(49:31):
That's two people if you havetwo people in the household.
If it's just one, you got to bemaking $120,000.
But the median income right nowis $75,000.
Ryan Selimos (49:43):
Johnny just said people coming out of college are
making $50,000 to $60,000.
Put two of them together that's$120,000.
That math checks out to me.
James LaGamma (49:50):
But the median household income You're saying
median household the average,that's two people already.
Kenny Massa (49:55):
I get that.
Ryan said boss up.
That's what he said.
Johnny just hit us with a stat.
Ryan Selimos (50:04):
I agree.
People coming out of collegeright now are making probably
$40,000, $50,000.
Put two of them, I mean thenumbers if you're $75,000.
James LaGamma (50:15):
You're still $20,000 short of $50,000, Ryan,
but also coming right out ofcollege.
If you're 75,000, you're still20 K short of 50,000, right.
Ryan Selimos (50:18):
But also coming right out of college.
Are you really expected to beowning a house?
No, parents pay for it.
So you probably put, put someput some skin in the game too.
We're in a time now where wewant everything right now.
Put in some work, put in somehours.
Kenny Massa (50:33):
What's the average first time home buyer age?
James LaGamma (50:41):
Um some hours.
Kenny Massa (50:42):
What's the average first time home buyer age?
Um, I believe it's like 25,which okay, so that's cool, not
terrible.
Ryan Selimos (50:45):
and and listen, boomers, american dream or a
steady paycheck.
Get your one, two percent raise.
Get Like that's a little bitdifferent nowadays too Like
pensions, you know, different.
It's just they're hard tocompare apples to apples I'll
(51:06):
disagree with that.
It really is.
But you can even see a lot ofthe generation where like oh
back in my day.
I bought a house when I waswhatever blah, blah, blah.
Well, yeah, it was also normalto get married earlier, have
kids earlier, all these otherfactors.
But you've also seen them samepeople also start to kind of
agree like it is a heck of a lotdifferent now.
(51:28):
It's also way more competitive.
James LaGamma (51:36):
Holy shit 28, 28.
Kenny Massa (51:48):
Holy shit, 28, 28.
No, the no 30s, bro.
It's been going up and downfrom like 31, 33, 36.
First time did you say 38 yearsold?
James LaGamma (51:55):
no 36 is in one of these articles.
Ryan Selimos (52:00):
It's called 30.
James LaGamma (52:02):
I haven't seen one article on this search that
says anyone lower than 30 yearsold.
Kenny Massa (52:08):
Wow, that's surprising.
Ryan Selimos (52:12):
I feel like that data, though, can also be a
little skewed.
Could it be skewed, like, ifyou're living in New York City,
you're not buying, you'rerenting, right, Like okay, then
you have a family, you move toFlorida?
Jonny Strahl (52:26):
Like Ryan loves.
Ryan Selimos (52:28):
Get them out, right.
Jonny Strahl (52:30):
Like $600,000 studio apartment you're living
in in New York City and buy thenext door neighbor house to Ryan
Say hello, ryan, I'm from NewYork City, get the fuck out of
my lawn.
James LaGamma (52:50):
What lawn?
Ryan Selimos (52:51):
in New.
James LaGamma (52:51):
York City, isn't it nice?
Jonny Strahl (52:53):
to see, no, when they're in Florida.
James LaGamma (52:54):
I know.
Jonny Strahl (52:58):
Oh man.
Ryan Selimos (53:04):
It's an interesting debate, though,
either way whether right, wrongand different, there's a lot of
different ways you can go with alot of this data.
Well, here's the reality, man.
We talk about how old you are,the younger at the interest rate
.
We talk about how old you are,the younger at the interest rate
, dishing off a lot of money anda lot of responsibility for
someone at that age that's goingto quote-unquote, pay their
(53:26):
house and you know what, shouldthey be mature enough to make
that decision.
I mean, listen, you got peoplethat are 40, 50 years old making
mistakes every single day,people all the time.
When it comes to housing,there's a lot of tradeoffs.
There's a lot of risk, so it'sjust tough.
(53:49):
James, I'm sure you probablycould educate us all for days on
how that all works Another time.
James LaGamma (53:56):
Another time.
It's fun.
In a consumer-driven market,man, everyone wants you to spend
, spend, spend.
Credit card debt is crazy.
Ryan Selimos (54:06):
Just forgive it.
It's fine, Sorry.
Sorry, we won't go down thatpath.
I heard you're no come on, no Ijust heard you're a really big
believer in student loanforgiveness.
Oh for sure, 100%.
Oh my gosh.
James LaGamma (54:29):
Yeah, you know kids coming out of college and
they're making $50,000.
Ryan Selimos (54:34):
They should be able to buy a home.
Too many people want ahousehold.
James LaGamma (54:38):
Student loan debt .
Ryan, there you go.
Kenny Massa (54:41):
Well, that's something that probably delays
it right?
Student?
James LaGamma (54:44):
loans.
Hell yeah, that's probably whypeople wait until their 30s.
Ryan Selimos (54:48):
Definitely why I mean in the time of 2020, just
keep delaying it, Keep pushingit, delay it as much as you can.
Jonny Strahl (54:58):
Because once you pay those student loans off,
your credit score is going downa lot.
Kenny Massa (55:09):
I'll leave you with this.
You want to see something crazy?
Look up the increasing amountof phantom debt in the United
States or globally.
But phantom debt is aninteresting new way of debt
collection through the entiresystem that is not reported on
(55:32):
credit.
That is continuing to grow atexceedingly high rates.
To give you a, for instance,phantom Debt is like those pay
multiple payment options whenpurchasing a good on any of
these platforms.
Like a firm right, pay this inthree options out of your bank
(55:55):
account over the course of threemonths or whatever.
Three to six months.
There's different plans, butthey're not reported on credit.
But it is a collection of debt.
James LaGamma (56:05):
Oh, so, like, if you miss a payment on, like, say
, your Verizon bill, that's whatthey're using as an example
here.
Seven years later, it grows to$4,000.
Kenny Massa (56:16):
11 cents it's just crazy shit, crazy, crazy shit,
but it's.
It's growing at exceedinglyhigh rates, mostly because of
the way that people purchasegoods today, with online
accessibility and whatnot, um,but I feel like just a whole new
realm of debt.
Ryan Selimos (56:34):
Go look at it, it's fucking nuts so and it so
that, like when you're on Amazonor like you're on like Best Buy
, and there's that like hey, forthree months you could pay a
$43.
That's, that's what you'retalking about.
That's phantom debt.
James LaGamma (56:48):
The buy now, pay later debt yeah.
Ryan Selimos (56:50):
Also called zombie debt.
This shit's coming crashingdown, and that's a smart idea.
Kenny Massa (56:58):
It's smart for the companies, but you got to look
at the statistics, dive into it,look at it.
It's completely new.
That's a way of changingconsumer behavior and it's like
almost a subscription model fordebt like, but because of how
(57:20):
consumers are spending, it'snormalized, so it's really
interesting good subscriptionmodel you know, I've I've heard
about this.
James LaGamma (57:33):
The ftc and the cfd have been issuing a lot of
statements about this stufflately.
Kenny Massa (57:40):
Yeah, and you're going to see some different
changes, of course, over time.
But you know, as new thingscome out, that always happens,
damn.
But yeah, dive into it a littlebit if you have some time to
read about it.
Ryan Selimos (57:58):
Don't send me a 30-minute video on.
You have some time to readabout it.
Don't send me a 30-minute videoon it, but I'll read it.
James LaGamma (58:03):
Fuck you, Ryan.
Everything's going to be short.
Hopefully people are listeninginto this podcast at 58 minutes
Fucking joker.
Kenny Massa (58:12):
Ryan just wants the first thing, goodness gracious.
Oh shit.
But yeah, I mean, it's justinteresting stuff.
Got to check it out becauseit's different and it'll make
you think a little bitdifferently than making a
purchase.
Maybe I don't know.
But yeah, interesting stuff.
James LaGamma (58:35):
Nice.
Kenny Massa (58:36):
Cool.
Anyone got any last-minutethings?
Jonny Strahl (58:43):
before they fall in a hole of reading about debt.
James LaGamma (58:44):
No, moving sucks.
That's my last comment.
Moving fucking sucks.
Two men in a truck storageunits, storage pods.
Jonny Strahl (58:56):
What a business, if you made it this far to the
podcast we should do a podcastfrom James' pods podcast from
the pods.
James LaGamma (59:06):
There's a lot of chairs in there.
We could do that.
Wifi reception still on untilthe 10th air conditioning or the
sweat box.
It's a sweat box.
I have a fan, I can, or anextension cord.
Kenny Massa (59:23):
Sounds terrible.
James LaGamma (59:26):
It's a commercial .
It's a commercial fan.
Kenny Massa (59:29):
It's hot as fuck here.
That's bad.
James LaGamma (59:32):
I was fucking nervous.
It's up at 97 degrees.
I was drenched, it was.
So it's up at 97 degrees, 97.
Dude, I was drenched, it wasbad.
Ryan Selimos (59:39):
It was so hot in Florida.
The water isn't even refreshinganymore.
Just stay away.
We got nothing good to offeryou.
Kenny Massa (59:47):
Jesus, awesome.
Well, we'll see you down herein Florida, everybody.
Jonny Strahl (59:55):
The vendor continues.
James LaGamma (59:57):
The vendor continues the vendor continues.
Ryan Selimos (59:59):
Oh my gosh.
Good Hello gents.
How are we doing today?
James, you're looking slimbuddy.
James LaGamma (00:18):
Oh, fuck off.
Ryan Selimos (00:19):
It also looks like you're in a very empty room
with an echo.
It looks like it's just youyourself in the room.
What's going going on there?
Do you like take everything out?
James LaGamma (00:28):
oh well, I you know I slimmed down on the body.
I also slimmed down in, uh, allthe furniture and stuff I have.
My house it's all gone.
Just got this chair and alaptop.
Ryan Selimos (00:40):
That's it what's going on?
We got a garage sale this week.
You got the whole room out inthe front yard.
What's the situation, man?
He was in an.
Kenny Massa (00:48):
XS scan and just got rid of everything in his
life.
James LaGamma (00:51):
Yeah, I got rid of everything in my life.
Lose the XS.
I had to lose all the weightman I was carrying around too
much.
Kenny Massa (01:00):
Yeah, exactly One XS scan in your life Yep, yep
yeah exactly One deck's a scam.
James LaGamma (01:03):
It's in your life , yep, yep, no, no, no, we're
moving, exciting, really Okay,why are you?
Ryan Selimos (01:15):
acting like you didn't know that.
For the suspense, let's go topart two.
Johnny, are you in the sameroom with him?
You're looking at me as well.
What's going on on that?
Kenny Massa (01:23):
Yeah, he kind of looks like the same walk-on A
little bit, a little bit.
Ryan Selimos (01:26):
It does, it does.
This is our virtual backdrop.
You didn't know, guys.
Obviously I did not miss thememo there.
Jonny Strahl (01:34):
You mentioned he's slimming down a little bit on
the body slimming down on thefurniture.
You know he's moving a newhouse.
Ryan Selimos (01:40):
I am doing that also, but I also think, James,
you missed one point we'reslimming down to the bank
account right now.
Jonny Strahl (01:46):
That's for damn sure, yo Holy crap.
James LaGamma (01:52):
It's bad, dude.
It's like a crisis.
Ryan Selimos (01:54):
Woo, my lantern.
James LaGamma (01:56):
Oh my God, the stress Just money is going out,
none is coming in.
Ryan Selimos (02:01):
It's the first time my signature ever felt so
important in my life.
Jonny Strahl (02:05):
Just keep signing away, keep giving them.
Kenny Massa (02:07):
Oh yeah.
Pack it like that big.
You're just like shit to sign.
Ryan Selimos (02:13):
Just wait because you know the loan is going to
get sold off somewhere, probablyto a big bank.
Just let it be the bank thatyou actually bank with, and then
you get to log in every day andsee just how much you owe and
how little you have in youraccounts to pay it off.
Kenny Massa (02:28):
I'm not gonna name any names, but last time we we
got, uh, our last property thatwe got, they sold off the loan
like literally within like 24 Idon't even know if it was 24
hours, like fucking yeah weliterally went to our car after
we signed everything.
It was sold off.
It was a big bank, the one whobought it.
But they typed my fucking namewrong and it was a like.
(02:55):
It was like a.
They added like some letter atthe end of my first name and it
was like a whole thing to get itchanged.
Jonny Strahl (03:02):
Yeah.
Kenny Massa (03:04):
Apparently, I didn't do anything wrong.
Someone typed it wrong in thesystem and then everything was
wrong, like how the hell did youguys close?
James LaGamma (03:14):
you shouldn't have been able to close it was.
Kenny Massa (03:16):
We know we did close with the people who we
originally got the loan with andthen when they sold it off,
during that process it gotmessed up.
Everything on the original sidewas fine, but when they bought
the loan, when they sold it off,the new bank that acquired the
loan typed it in wrong, yeah, sothat was a whole.
That took like six months oftime.
James LaGamma (03:38):
I really want you to name names now.
Ryan Selimos (03:40):
What was that movie with Michael Scott.
You know the Big Short.
If I write a loan Fridayafternoon, big Bang's going to
buy it by Monday lunch.
There you go, kenny.
They're right there.
We're just back in 2008.
Didn't even take that long.
James LaGamma (03:54):
Every loan is getting sold onto the secondary
market.
That's how they commit you andhow you're getting your rates
and all that stuff.
Kenny Massa (04:02):
At the end of the day, who really gives a shit
where the money's coming fromit's?
All coming from the same placeon the very, very top, even the
local banks.
They're just trying to buildbig enough to get bought by the
big banks and the big banks justpower it down.
Anyway, it's all coming fromthe big banks.
Jonny Strahl (04:19):
It's probably the same five.
Kenny Massa (04:21):
There's like five of them.
That's it, we could go down areal interesting.
We'll get back on track.
Jonny Strahl (04:33):
Actually, you know what this is a great time to
take advantage of James' silence.
Kenny Massa (04:37):
Yeah, you just go in on it, good comment.
James LaGamma (04:41):
You guys are ridiculous.
Ryan Selimos (04:42):
He's very comfortable in the process
because he's going through itright now.
That's the only reason he'svery comfortable with the
process.
The home buying experience.
James LaGamma (04:51):
No, I'm not comfortable at all.
This has been miserable Buyingand selling.
Johnny has the luxury ofkeeping his house.
I'm fucking selling and buying.
That shit is just the worst.
Timing problems so muchinformation that you do not have
to be able to make decisions onthe next home.
It's nuts, it's really.
(05:11):
The moving process is terrible.
Thank God it's just like 45minutes down the road.
I'm not moving like acrossstate lines that would be.
I couldn't even imagine doingthat.
Ryan Selimos (05:25):
Hey, listen, the moving process is not that bad
when you hire movers.
Baby, when I moved into thishouse I played golf with you
that morning, james.
We went out, I played horrible,came back.
All my shit was at the newhouse.
It was a very nice experienceoutside of the shitty golf.
Kenny Massa (05:44):
Well, we know where James's stands DIY or pay the
guy.
James LaGamma (05:49):
No, I went in the middle.
I'm in the middle of the packrunner here.
All right, I've got pods.
Okay, so the shit will be there.
Kenny Massa (05:57):
Pods are good, it's just a lot cheaper.
James LaGamma (06:01):
So I just, I just had to fill them up myself, you
know, because none of myfriends wanted to come around
and help me.
Ryan Selimos (06:08):
That is inaccurate , inaccurate.
Kenny Massa (06:12):
You didn't even ask .
James LaGamma (06:14):
Oh, I asked Ryan and Johnny.
Ryan Selimos (06:16):
Hey, I was out of town.
Right, I was out of town.
James LaGamma (06:20):
You were here last weekend, but I was not
asking you to come after yourfucking honeymoon.
Jonny Strahl (06:26):
I got back on Saturday.
Ryan Selimos (06:27):
That's kind of crazy.
Kenny Massa (06:29):
You just got back from Europe.
James LaGamma (06:30):
That's when the pods showed up.
Jonny Strahl (06:34):
Hey babe, we're going to put our house on hold
when we're moving.
I'm going to go fucking moveJames and stuff Because he
doesn't want to hire too many totruck.
Okay.
James LaGamma (06:45):
So you know that name really just puts a puts a
thought in your head we're goingto leave it there.
We're going to leave it there.
Ryan Selimos (06:57):
If you have not tuned in, to never mind Too many
of us very good company.
Jonny Strahl (07:05):
It's been Very good experience.
James LaGamma (07:08):
Instead it was like one and a half men over
here.
Jonny Strahl (07:11):
Yeah.
James LaGamma (07:16):
I thought you liked that reference.
Two and a half men in the showMe and.
Lydia, I thought it would befunny, whatever.
Kenny Massa (07:25):
You know what's got to be true, though, that I was
just thinking about when yousaid that you were selling and
buying kind of in in synergy,james, there's people like you
had.
You were fortunate to be ableto find a home and then sell in
a really time, like it reallythere was a scare for a hot
second there, though.
There's people that they selltheir home and then they got to
rush to go find something thatsucks.
James LaGamma (07:48):
Well, that's kind of what happened.
So right now, inventory isreally low, and so we've been
monitoring the market of wherewe want to move, which is the
Claremont area of Florida, andwe just hadn't seen many things
pop up that met our wants andneeds list.
We wanted a pool, this time thefour bedrooms, so these things
(08:08):
that we were like these arenon-negotiables.
Blah, blah, blah.
There wasn't just many homesavailable and so when we put our
house on the market, it went inless than 24 hours and we still
hadn't picked a home.
So it was crazy, because we wentand saw homes.
We were like the pictures weretoo good to be true on like
(08:30):
Zillow and all those websites,so we had no clue if we were
going to find a house thatactually looked the way the
pictures were portraying it.
We thought we were just goingto get totally just thrown off
guard every time we tried to goview homes totally just thrown
off guard every time we tried togo view homes.
Thank God, we found somethinglike three days later that
popped up and we were able tosnag it.
(08:50):
So we got lucky because we had30 days to find a home.
Yeah, so we only had six.
We were allowed 60 days toclose on this house, so it
worked out, everything workedout.
It was good, but for a hotthree days we were stressing.
Kenny Massa (09:09):
Yeah, I think it happens a lot.
James LaGamma (09:11):
You're 100% correct.
Kenny Massa (09:14):
Well, it's definitely stressful.
I would think I've never beenin that situation.
James LaGamma (09:20):
Well, on the other side of that, Kenny, one
of the things that we hear thathappens a lot in the mortgage
industry there's a lot of timerequirements, all this crap that
happens and so sometimes, eventhough you want to close on a
certain day, you're not allowedto close on that day.
And so there are people that areselling their home that
literally the moving truck isparked outside the next house
(09:41):
and they can't close and so theyhave to go get hotels and all
this stuff.
So it's really important tomake sure you're staying on top
of the mortgage process,understanding what documents are
getting sent to you, beingtimely with signatures and all
that shit.
So that also could suck, soit's kind of the flip side of
that.
Kenny Massa (10:01):
Yeah, tough.
And then on top of the factthat people aren't able to find
houses in affordable priceranges these days because of the
market, that's a wholedifferent story.
But finding a house easybecause of the features and
desires that you're looking for.
But now it makes it even moredifficult because the prices are
(10:21):
just insane, especially incertain markets, but it's just
through the roof in many areas,from what I've seen.
We're just looking but, I don'tknow You've seen it kind of
more firsthand because you'vebeen actively going into these
houses.
Ryan Selimos (10:39):
It's a crazy time to be a homebuyer in the good
old US of.
James LaGamma (10:43):
A time to be a home buyer in the good old.
Jonny Strahl (10:47):
US of A John.
Did you have?
James LaGamma (10:48):
similar experience trying to find your
house, or was it felt lessstressful or just about as
stressful?
Ryan Selimos (10:56):
I would say the main stress trigger was
obviously buying a house andthen not having someone rent
right away, so paying twomortgages.
(11:16):
That was always a fear, alwaysa hesitation there.
When you're thinking about it,it was just.
You know, we're proactivelylooking, never like very
aggressive, but in this marketright right now, even though you
keep hearing different mixedmessages, things are cooling
down, it's not as crazy.
You have to be aggressive.
There was two or three houseswe looked at waited a couple of
days.
By the next week they were goneor they were impending right.
(11:41):
So the house we looked at mostrecently last month it was same
day put in an offer next day,had four different offers and it
was a bidding war.
So, um, yeah, it's, it's funtimes, obviously fortunate,
thankful to be in the situation,but it is, uh, it's a stressful
piece and what's reallystressful is going through it
(12:03):
your first time, but also likeyou just don't know, like
there's just so much informationand you're putting trust in so
many different people's handsthat are experts and
knowledgeable in what they knowand until you start to really
look at the end of the numbersafter 15 years or 30 years, it
really gets you like dang, I'mreally spending this much money
at this rate to hope it goesdown at some point.
(12:25):
So yeah, it's been quite theexperience.
Let's just say that.
James LaGamma (12:33):
Dude, when you got your closing disclosure, go
look at the tip, the totalinterest percentage, and it'll
tell you a total percentage ofthe amount of interest you'll be
paying based off of the loanamount that you have.
And it makes you sick, it'sscary.
I think mine's somewhere around70% and it's just going to be
(12:55):
an astronomical amount.
So, like you, never because ofinterest, obviously, you're
never paying the mortgageamounts.
So if you get, like, say, thenational average mortgage amount
right now, which is like400,000, you're not paying
400,000.
You're paying basically 750,000over 30 years.
Jonny Strahl (13:15):
Yep.
James LaGamma (13:16):
If that's the proper math, 70% of 400,000.
Kenny Massa (13:20):
Give or take, yeah.
James LaGamma (13:21):
On top of it.
Yeah, it's about, it's aroundthat figure, probably give or
take $20,000.
Jonny Strahl (13:26):
Yeah.
Kenny Massa (13:28):
Assuming that you make regular payments on
schedule for a 30-year term.
James LaGamma (13:32):
Yeah, and not to mention taxes.
Taxes keep going up.
And, johnny, by the way, youmight want to look into this
thing.
We're going to be doing it, butin Florida there's actually a
statute on the Save Our HomesAct where you can do this thing
called portability, so youtransfer your taxes from your
(13:55):
current home that's homesteadedto your new home.
Ryan Selimos (14:00):
You only get to do that one time, though in a
lifetime.
James LaGamma (14:03):
So we're going to do it.
So that could be something.
Yeah, I think you have to justfile by March of next year when
Homestead's required, and thenyou can get the portability, so
that way your next assessmentthe following year doesn't go up
to the market adjust value.
Ryan Selimos (14:24):
Which is interesting because when you
like sit down with someone andthey break that down and share
that with you, like that's justsuch a good thing to know that
many people may not know right,or unless you do a significant
amount of research and you'reable to really retain whatever
information you're reading,because, again, there's just so
much out there.
James LaGamma (14:44):
But yeah, no, that's a good call for sure did
someone actually tell you aboutthis, or is this your first time
hearing about it?
Ryan Selimos (14:52):
no, our um, our realtor um, who's obviously
family friend, you know beendoing it for years sold the
first house, worked with bray onher house um, so yeah, but it's
I mean it's critical, right?
James LaGamma (15:10):
yeah, well, I was curious just if who told you,
if it was someone that was anindustry professional?
Because I mean, even though mymother is our realtor, that's
who told me about it, which ismy mother.
So it's like, well, where doyou hear this stuff from?
That's what I was more kind ofgoing towards, is do you
actually hear it from theindustry professionals trying to
(15:30):
set you up for success and give, like you kind of said, you're
you're kind of putting yourstuff in their hands and so you
hope that they can guide you?
You got your loan officer, yougot your real estate agent.
You know they're kind of yourteam to help get you into a home
of your dreams, but also withinyour means.
So it's hard, it is.
Kenny Massa (15:50):
I think one of the biggest things is just being
aware of all the unexpectedexpenses that come with buying a
home.
It's not like you pay $400,000and you just write a check for
10%, 20%, whatever it is, andthen it's done.
There's a laundry list ofadditional expenses between fees
(16:10):
and from every single personthat you talk to.
But that was one thing thattook me by surprise when I
looked at that.
When we bought our first, itwas a rental property when we
bought the first property, butstill regardless was that was a
lot, it was.
There's a lot of like a lot ofI wouldn't say hidden shit, but
unaware shit that is on this bigbill that you don't expect yeah
(16:35):
, but they try to it's all theytry
James LaGamma (16:37):
to alone they try to do a good job of getting you
the information up front withthe loan estimate, and fees
aren't supposed to change.
There's certain tolerancesdepending on whether or not
you're shopping for stuff andall this other stuff that goes
along with that.
I won't get into it, but you'resupposed to, as a buyer, look
(17:01):
at that loan estimate that'skind of your document to compare
quotes.
Use it as a quote in a saying.
That's how you should shoparound and compare LEs to other
lenders, because one of thebiggest things is I can't
remember if it's 30 days, 3months or what the timeline is,
but when you're shopping aroundand you're getting your credit
(17:21):
pulled, you can do that multipletimes at multiple different
institutions to find the bestdeal essentially, and not get a
ding on your credit for allthese hard pulls, and so that's
kind of the thing you want toget that loan estimate so you
can see, okay, what's the feestructure looking like, what
rates.
Am I getting that kind of stuffto stare and compare the deals.
Now, how many of you usedifferent lenders?
Kenny Massa (17:47):
Or shopped around at all.
James LaGamma (17:48):
I guess you were one and done you did two, ryan,
I did two.
Kenny Massa (17:52):
But I think everyone's afraid of getting
their credit.
Ryan Selimos (17:56):
I don't want to sell the topic.
That is the dumbest thing.
Do it, do it.
Do it For something that needsto be done that is required you
something that needs to be done,that is required, you get
dinged for that.
That's right, baby.
That's the good old US of A.
Kenny Massa (18:11):
Anyway, yeah, there's fees that come about in
anything.
Right now we're talking aboutresidential, but the commercial
real estate fees don't get mestarted on that oh well, yeah,
that's a whole different camreconciliation fee.
Dude, if you're thinking aboutcommercial real estate, just ask
(18:34):
someone about camreconciliation fee.
If you want to get kicked inthe balls, pay cam
reconciliation fee once a year.
That's a kick in the balls.
No one one tells you about itMm-hmm.
Yeah, that's not fun,especially if you have a big,
decent-sized monthly payment.
Ryan Selimos (18:53):
Is that like the cost from landscaping and
janitorial, all that type ofstuff?
Kenny Massa (19:03):
CAM is Common Area Maintenance.
But the issue is, if we're inSouth Florida, like all that
type of stuff, like it comeswith it, cam is common area
maintenance.
But the issue is if, like we'rein South Florida, right, so
technically common areamaintenance could be increases
of insurance the building's airconditioning unit fails and they
got to get new air conditioningunits for whatever $80,000 or
whatever the fuck it is.
They're paving the roadsoutside, they're updating rugs
(19:27):
and changing this and changingthat.
Now I would say most of itdepending on the commercial
property company.
I would say they're pretty fairwith a lot of things, but the
biggest thing that I've seenkind of like kick us in the
balls, to say the least, is theinsurance aspect.
Insurance increases on theproperties get fed back down to
(19:53):
the tenants and it all comesdown to an additional fee per
square foot and that shit addsup a lot.
Tens of thousands of dollars, alot, I mean.
Ryan Selimos (20:07):
At least you still have insurance in South Florida
Isn't there almost a run oninsurance companies where
they're starting to pull out ofthe state, especially in the
coastal areas like a West Palm,a Florida Lauderdale or Miami?
So, on the one hand, what wouldyou rather be getting kicked in
the balls for the increases ininsurance or being put in a
situation where you don't haveinsurance?
Kenny Massa (20:26):
Technically, I don't own the fucking building
anyway.
So who gives a fuck?
I rent, so then fuck them.
It's kind of like 50-50.
I don't fucking own theproperty, so it's a little bit
different.
Do I lose my unit?
Technically?
Yeah, but I'm on a shorter term.
I don't own the building.
So it's just one of those typesof scenarios where, yeah, I
(20:51):
don't.
I don't know when you, when youlook at it, all said and done,
over a five-year term, how muchyou've paid for for these types
of expenses.
It's a lot of money, yeah, yeah, but it's all I couldn't
imagine in New York City, wherethese buildings are close to God
only knows $75 to $150 a squarefoot.
(21:12):
And then they have massiveincreases on insurance and all
of these different rules andregulations that everyone's
aware of that don't abide bypopular demand.
And I couldn't imagine,couldn't imagine.
Well, I guess that's the reasonwhy they have issues with
filling office space in new yorkto your point, ryan.
James LaGamma (21:41):
Insurance has been going up nationwide too,
which has been hurting a lot ofpeople.
Ryan Selimos (21:47):
What isn't going up nationwide.
Find me one thing that's goingdown nationwide.
I would love to hear that,because everything is fucking
going up Going down.
James LaGamma (21:58):
My bank account.
Kenny Massa (22:00):
James' bank account is going down.
Jonny Strahl (22:04):
Yeah, now it's.
James LaGamma (22:06):
You know, what I was mostly looking forward to
with selling this house wasseeing for one day, and one day,
only $100,000 in my bankaccount.
I don't even get to see it.
They're wiring it straight tothe other house.
Ryan Selimos (22:23):
Crazy, how quickly , crazy how quickly wiring money
can happen though, when theyneed the money just goes right
through, no questions askedcapital test for $25 in two
business days through Venmo.
It doesn't go through but hey,wire $100,000 right away unreal
(22:44):
kind of a question for for ofyou, james and John, since
you're going through thisprocess and you were previously
homeowners.
You bought at a time likearound 2018, 2019, 2020, where
rates were at an all-time low,and now you're buying at a time
where rates are not all-timehigh, but they're a lot
(23:05):
different.
So how did that affect yourdecision to get into the market?
Johnny, on your hand, you'rekeeping that house.
You're renting, james, you'reselling and then moving into new
one.
Did you hold off thinking therates were going to go down?
How long have you been thinkingabout this?
And just what was thatexperience?
What was that thought processaround the rates being so high
(23:27):
at this point in time?
James LaGamma (23:30):
Johnny, you want to go first?
Jonny Strahl (23:31):
You can go first, good sir.
James LaGamma (23:35):
I insist.
Ryan Selimos (23:38):
I don't know.
I just feel like you can doublethe rates and it still doesn't
even quote unquote match it'sstill higher.
You double the rate we it stilldoesn't even match.
It's still higher.
If you double the rate we hadin 2019, which is nuts, we can
almost triple it.
That's how low it was.
I don't know.
I think there's a lot thatcomes with it.
What are you looking to do inthe future when it comes to the
(24:03):
family?
Purchasing a bigger home youwant a pool, you want this, you
want to be in the future, rightlike when it comes to the family
, you know.
Purchasing a bigger home youwant a pool, you want this, you
want to be on the lake, you wantthat all these things that come
with it, right?
Um, for me, one of the biggestdrivers was from renting, or
trying to rent was one to be putin a position where you have to
do it to really figure out ifyou're built for it, and that
(24:26):
was something I kind of.
I'm nervous, right, cause weall been in a spot where we
rented.
It's always nice to pick up thephone and be the guy that says,
hey, this is broke, go fix it,but to then be in the position
to where you're going to getthat call.
Jonny Strahl (24:40):
And then, hey, I'm working on the DIY thing.
We're going to get there.
Ryan Selimos (24:43):
Hopefully I've quite the learning curve.
But again, I don't know.
I just it's just a crazy timeand you know who knows, six
months from now, what could themarket look like?
(25:04):
We have absolutely no idea.
It's an election year.
Two Things always get a littlebit unique.
In November it's we're in a.
I feel like we said this forthe last couple of years, but
it's like what if scenarios likewhat can happen?
What will happen?
Nobody knows.
So the more pondering and themore waiting, it's just created
this gap to where we're here.
(25:25):
We're now doing it and, um, Idon't know.
We'll see if it was worth it ornot when the market goes,
whatever direction eithergreater or less, I don don't
know.
Jonny Strahl (25:34):
Ryan, you could be buying a foreclosed house for
$150,000 for all we know herepretty shortly, who knows?
I don't know Hope, so That'd benice.
I mean, james and I would bekicking ourselves.
James LaGamma (25:50):
I agree with you, johnny.
One of the biggest things is,like you're right, the election
year, right, that couldmassively change where rates go.
Depending on who's in officechanges the whole economic
outlook, what's going on, howthings are going to work out.
(26:14):
So there's just a what, if?
But at the end of the day, Idon't have a crystal ball.
So to Johnny's point you've gotgoals and aspirations.
Do you want to start a family?
You want these things?
Blah, blah, blah.
If you have the means, youcan't gamble too much.
I mean, yes, you can, but atthe same time, if you're ready
(26:39):
to go and you have the means andthe timing's still okay for you
, there's no way to say, well,no, I'm going to hold off a
couple of months because I feellike rates are going to drop.
You guys have heard me say Ialways said we were going to
start looking in August,september time.
We decided to go earlier.
It kind of happened all of asudden.
(26:59):
But it's just, we alwaysplanned for this year.
Three, four years in the houseis when we wanted to basically
exit.
Now, granted, I actually wasthinking about doing what Johnny
was doing originally too.
Granted, I actually wasthinking about doing what Johnny
was doing originally too, butwe decided we wanted to go for
the forever home, and so we didneed the extra equity out of
(27:27):
this house.
However, walking away from a2.5 interest rate is that's hard
, that hurts.
Ryan Selimos (27:33):
You'll refinance, don't worry.
It's going to bust at somepoint.
It's a bubble.
James LaGamma (27:39):
Don't worry, james.
Oh man, it hurts.
But here's the other side ofthings too, because we were able
to make a larger down paymenton a house, hoping that housing
prices stay a little stagnant,if not just continue to rise,
especially in the area that wepurchased, where we're expecting
the market to only increasejust because Claremont is an up
and coming area.
(28:00):
A lot of building is happeningout there, et cetera, et cetera.
The minute that you put, say,20% down on a home, you've
already got 20% in equity, right?
It's kind of an interesting wayof looking at it.
I already have that much equityin this house.
Now, straight out the gate, acouple more years we're paying
(28:20):
down the mortgage on it, blah,blah, blah.
We can use that and leveragethat to do other things, like
maybe go into figuring out if wewant to get a rental later on,
when maybe rates are lower andinstead of we could refinance.
But instead of that, you know,take the cash out and
essentially go maybe buy anotherproperty and start that process
.
Then you never know, there is,there is a way to finagle debt
(28:45):
in your favor.
But again, you know, sometimesyou're lucky and you've got the
means and you have the abilityto do these kind of things, and
so you might as well just jumpon the opportunity if it's, if
it's, if you feel like you'reready for it.
Ryan Selimos (29:00):
so facts and you guys, I'm curious, like and I
know there's one person thatcomes to mind right away, he
he's all over social media butlike, do you guys know anybody
who are just 100% against thementality of owning a home and
(29:25):
are all about renting and thinkthat there is no such thing in
owning a home as an asset?
Like, do you know anybody thatway a home as an asset?
Do you know anybody that way?
I wouldn't say I know aspecific person, but I do think
(29:45):
that mentality is becoming moreand more common, just of
everyday people.
I think it has to do with justthings being more expensive and
people from a DIY standpoint,maybe this generation and
younger generations not being ashandy as older generations, so
kind of those factors, and justtalking with people about it,
people are more open to the ideaof renting.
People are more open to theidea of, like, leasing a car
versus owning a car.
So I think that mentality isdefinitely more prevalent now
(30:07):
than 15, 20 years ago.
Now is it a fad or is itsomething that continues We'll
wait and see but definitely morecommon, whether that's a good
thing or a bad thing.
Also, I think this group heremaybe not, but who knows?
James LaGamma (30:31):
I feel like that's a funny question that you
asked, johnny.
I feel like I do know someonethat told me I'm renting until I
die, that there's just no meansfor me to fucking.
I'm not going to buy becauseit's all bullshit.
I'm trying to remember who thefuck said that to me.
But anyways, again the problemis you're throwing, throwing
(30:54):
your money away.
At least you get equity.
Yes, you can get foreclosedupon.
So that's probably the wholepoint of like.
Do you actually own the home?
No, you don't.
You have a fucking mortgage,you have a loan.
It's the same thing foreverything.
Like you don't own your truckwhen you buy your truck until
you pay off the loan, it's.
It's just, it's a means ofbeing able to get something when
(31:14):
you don't have the ability topay it full out.
You know right at the gate, butthen again you can leverage
debt Most rich people leveragedebt to make more money.
You can do that with buying ahome where, instead of paying
$2,000 a month if that's if youcan even find rent for that
these days for a house you'rejust throwing that money away.
(31:39):
If you're at least putting ittowards a mortgage again, you
can do things with that.
You can pay for schools, youcan pay for getting improvements
, whatever you need.
You can take the money out ofthe equity in your home and
build that.
Yeah, you need.
You can take the money out ofthe equity in your home and
build that.
Plus, there's a lot of anargument to be made that buying
a home can help buildgenerational wealth, because
(32:00):
then you can give that assetwhen it's actually paid off in
30 years, when you're older, andnow it's just straight profit.
Whatever, your kids want to endup doing with it Now.
Granted, it can get ugly atthat point in time, some people
get a little greedy.
But kids want to end up doingwith it now.
Granted, it can get ugly atthat point in time.
Uh, some people get a littlegreedy, but yeah, uh, yeah, I
don't know if that mentality issmart.
Kenny Massa (32:23):
Um, I don't think I don't think it's a straight and
narrow answer.
I think that it really comesdown to someone's personal
finances at that point in timeand also their way of life.
At that point in time Now, whenyou're a single guy and you're
younger and you're moving arounda lot, you're not really sure
(32:45):
about stability.
Yeah, I don't think it'sprobably the right
recommendation to maybe owning ahome if you're going to be
moving around a lot, the rightrecommendation to maybe owning a
home if you're going to bemoving around a lot and you're
not going to really be takingcare of your home, because I
think it's something that itjust depends.
Maybe an apartment, a condo,there's certain things like that
that I think might be better,because then you don't really
(33:06):
have the minimal maintenancethere.
You have HOA payments.
But I think it really justcomes down to personal finances
at the most.
I do see why they say that.
Right, because if you can make alower payment now because
renting is cheaper than amortgage, it depends where you
are.
Go buy something in downtownMiami, buy a condo in downtown
(33:35):
Miami.
Tell me that you're not goingto find something for less than
a couple million.
Go rent.
Probably going to findsomething cheaper.
If someone bought that homefive to 10 years ago because the
mortgage, the, the amount ofthe home was less.
And they can essentially likecharge you at a lower rate
(33:56):
because they're not paying on a$4 million home, they're paying
on a 1.5.
There's just very manycircumstances.
I do think that there arecertain markets that you can
rent for cheaper than mortgaginga home.
I think that concept is you'rebasically having more cash in
your pocket today and that'sallowing you to be able to do
(34:19):
things like invest it.
That has something that ahigher yield.
I would say a very, verystrategic and devoted way of
investing, knowing that everypenny is going into a higher
yield return, by saving themoney in their pocket today and
(34:42):
putting it into a, an assetthat's going to yield a return
of 10, 15% or whatever.
The likelihood of them savingthat money and then investing it
.
I don't know, but yeah, andlike that's, I think, where the
person that you're talking abouton social media.
That's what he's pushing yeah,well, he's.
Ryan Selimos (35:02):
you know it's funny.
You have, like all of you guys,valid points right and like
it's like, yeah, you can.
Let's just say you buy a fivehundred thousand000 house, right
, you put 20% down, yeah.
If you don't do that, yeah, youcould save $100,000.
But to your point, where areyou putting that $100,000 to
invest in?
And is that going to returnpositive?
(35:26):
You never know, because if youinvest in the market, maybe in
something else, maybe into acompany, I don't know Then again
you also see those people whohave developed long-term wealth
that own a bunch of multifamilyhomes and properties.
They go ahead and rent somethingbecause they own a bunch of
properties themselves.
It's interesting.
James LaGamma (35:48):
House hacking is really interesting too.
You get a duplex and then youlive in one side and rent out
the other.
My buddy's doing that right now.
He's getting ready to getanother duplex, I think maybe
even a triplex, I don't know.
Ryan Selimos (36:01):
Well, think about who did that in good old D-Land.
That's what Lynn used to do orstill does.
Jonny Strahl (36:09):
Oh, there still does.
Kenny Massa (36:11):
Oh, but I also think the concept of having a
home on the asset side of aledger is not correct.
I think that is a it's theright way of saying this a
bank's way to get more people tobuy homes, because a home is
(36:36):
not an asset, because you'rejust're just shoving money.
Yes, you're gaining equity init, but, like james said earlier
, how much of that is interestand how much of this is that
principle for the first five toten years you're not paying.
You're not gaining much equityin the initial five to ten years
unless you're paying downprinciple and you know all that
bullshit.
James LaGamma (36:53):
But which is the smart move, but that's so hard
for people to be able to do that.
Ryan Selimos (36:58):
And I know I can't do it.
Kenny Massa (37:00):
And it's a what if right.
No, like I think we know ofthat, like we learned that.
I learned that like years agoactually in college and one of
the finance classes.
But there's a lot of peoplethat don't know that you can pay
that additional principal andthen like that's.
James LaGamma (37:20):
But then you also have the comment of time value
of money.
Well, why am I paying downextra on principal Instead?
Why can't I just go invest itIf I've got the money?
That's a so essentially like.
The idea is you get a homewhere maybe it only takes up
about 10, 15% of your debt, towhere you can add about, uh, an
extra mortgage payment a year ontop of that in in principle
(37:43):
down payments, essentiallypaying extra on your on your
mortgage payment and and yeah,but again, that's more money.
You could be investing in thestock market or whatever the
fuck you want to invest.
It's just dude.
Everyone's got their own ideason what works and what doesn't.
There's really no recipe thatworks for any of this stuff.
You just got to do your own duediligence, figure out what you
(38:04):
think is going to work out, makesure that you put the time and
effort in researching it and arewilling to lose too, because
not everything's a winner.
Kenny Massa (38:14):
Yeah, going back to that old saying right, there's
more than one way to skin a cat,definitely on your road to
creating financial freedom, ormillions, or whatever you're
after, but there's definitelymore than one way and it's
different for everybody, basedoff of many different factors.
Jonny Strahl (38:33):
Yeah, yeah.
Ryan Selimos (38:38):
Good times more than one way and it's different
for everybody, based off of manydifferent factors.
Yeah, good times.
Take the dave, uh, dave ramsey,uh, what is the baby steps?
Jonny Strahl (38:47):
step number six pay off your home early.
Pay for it in cash.
Kenny Massa (38:53):
Yeah, I mean I.
James LaGamma (38:55):
Is that the guy on social media you're talking
about, Johnny?
Ryan Selimos (38:58):
No, I was Name drop.
I was talking about GrantCardone.
Kenny Massa (39:01):
Yeah, I knew exactly who he was.
Oh, okay.
Ryan Selimos (39:03):
He's been all over it lately.
Kenny Massa (39:05):
I mean Gotcha, Listen, Look.
I mean I think that there's alot of concepts that I believe
that he's got a point on Forsure, but there's just so many
variables to that.
If you're looking to staysomewhere for 20 years, 30 years
or forever, or if you're buyinga forever home, why would you
rent forever?
(39:26):
I agree.
Jonny Strahl (39:28):
I agree.
Kenny Massa (39:29):
But if you're someone who's young and you're
moving around and you're notsure and the market's crazy and
interest rates are high there'sa lot of printing money going on
, I mean you can probably find abetter deal.
And it also just depends onwhere you're living, right, if
you're in, if you're in utah,compared to new york city the
(39:51):
totally different world, totallydifferent factors.
James LaGamma (39:54):
So just so many variables world, totally
different factors, so just somany variables.
Yeah, I think uh, I actuallyhave the lowest states uh,
housing prices, uh, where is itwhere?
Is it yeah, right here thelowest state is iowa, with
(40:14):
medium home prices.
Kenny Massa (40:16):
What's the highest?
James LaGamma (40:18):
California.
Kenny Massa (40:20):
Florida's up there too, man.
Ryan Selimos (40:22):
Getting bigger.
Jonny Strahl (40:23):
Yeah, for sure I got a PSA announcement Listen,
florida.
Ryan Selimos (40:26):
We got hurricanes, we got insurances leaving the
state.
You know we're going to be gone.
South Florida is going to begone in 20 years from climate
change, all right.
So it's not a great place to be.
Don't move here.
It's not a great place to be.
Don't move here.
It's too expensive.
Stay the fuck out of Florida.
We're too far gone.
Go to Iowa or these otherplaces.
(40:47):
Just stop looking at Florida.
We can't help you.
We can't help ourselves.
Ryan, what people are youtalking to?
From what states though?
Fucking California, forstarters.
My wife, are you talking to?
From what state is that?
From?
Fucking California, forstarters.
Like my wife?
No, but these people, they comein, dude.
I see my parents, like someonecame in with a cash offer of a
(41:12):
million dollars.
My parents have lived in the.
It's just it's crazy.
Locals can't keep up the newmoney.
It's just it's crazy.
Locals can't keep up the newmoney that's coming in.
It's outrageous and I just Idon't understand it, because
Florida is just, it's a shit.
It's terrible.
So stay away.
That is my message.
Get the fuck out of here.
We don't want you.
We don't need you.
James LaGamma (41:32):
Ryan, did you see the video that I sent in our
group chat?
Ryan Selimos (41:36):
The Ryan, did you see the video that I sent in our
group chat?
James LaGamma (41:38):
The 30-minute video that you sent.
Yeah, you just needed to watchthe first five minutes.
Ryan Selimos (41:42):
Made about a minute and a half.
Kenny Massa (41:46):
I didn't check the time on it.
James LaGamma (41:48):
It's all about the first statement.
Florida is the fastest growingstate in the country right now
Get them out.
Yeah, I watched them.
Insane, Insane.
But let's play a quick littlegame.
Growing state in the countryright now.
Get them out.
Insane, insane.
Let's play a quick little game.
Let's see if you guys can guesswhat Florida's average home
price is right now.
Ryan Selimos (42:10):
Average.
James LaGamma (42:12):
The median home price.
Kenny Massa (42:15):
I would think really high, but I'm going to
say something like $450,000.
Ryan Selimos (42:20):
Okay, To scare people off $600,000.
Kenny Massa (42:25):
What I really feel like saying is about $1.7
million, but because everythingis expensive as fuck in South
Florida.
Ryan Selimos (42:34):
Realistically.
I'm going to say $350,000.
No way is in there, Dude.
There's a lot of areas outsideof the four main Orlando, Tampa,
South Florida.
Jonny Strahl (42:45):
Three main Orlando .
Ryan Selimos (42:46):
Tampa, south Florida.
You got to think of those otherareas, so that's why I think
350,000.
Yeah, 375.
James LaGamma (42:58):
402.
Ryan Selimos (42:59):
C2, get up, Stay out.
James LaGamma (42:59):
C2 get up, stay out now, this is from Forbes and
it's based on 2023 Q4 data,which is actually, I would argue
is probably higher than what itis now.
I think it's dropped a littlebit nationwide.
In comparison, though what wasthat, kenny?
Kenny Massa (43:28):
I said, if there's a place that has held those
prices, florida would probablybe most likely.
Obviously, there's some statesthat have home prices come down
more, but I feel like Florida ismore resistant to that than.
James LaGamma (43:42):
Yeah, I agree, I agree, but so for our good
friends in Iowa, where Ryanthinks everyone should move what
do?
You guys think is the medianprice there $175.
Ryan Selimos (43:54):
Oh geez, $260?
.
No, you said $260?
Yeah, $260.
I got $175,000.
Oh geez, no, you said $260,000?
Kenny Massa (44:00):
Yeah, $260,000.
Jonny Strahl (44:01):
I don't know, Okay , $175,000, $260,000.
I couldn't even freaking guesswhat it would be.
Let's go $300,000.
James LaGamma (44:08):
$229,000.
Ooh, kenny, you were close.
You know what happened.
Ryan Selimos (44:14):
But if the price is right.
James LaGamma (44:15):
you're close, you know what happened, but in the
prices you're over.
So I think technically Ryanwins.
Damn All right.
Ryan Selimos (44:27):
You know how big the average lot size in Iowa is?
That's actually a good question, acres.
James LaGamma (44:31):
Well, my in-laws live there, my sister-in-law.
Kenny Massa (44:36):
Do they all have land?
James LaGamma (44:39):
No, it's about the same as a normal house here
in Florida.
It's nothing crazy.
They're in Des Moines, Iowa.
I do think they got really goodprice for the house.
I mean, my aunt lives in theCarolinas, specifically South
Carolina.
She got crazy yard and a crazybig house for the money that she
spent.
Jonny Strahl (44:59):
Like it was insane , nice Um.
James LaGamma (45:02):
So there's definitely that case.
A lot of people like whatthey're doing essentially
leaving from the large pricedyou know States and moving to
those lower price States andthen you get just so much more
bang for your buck, yeah, somuch more.
It's insane.
Kenny Massa (45:20):
Yeah, it is crazy.
James LaGamma (45:23):
But the the crazy part right now is obviously
you're seeing everybodycomplaining about how people
younger people don't have theability to buy homes like
everyone else does.
Jonny Strahl (45:38):
Yeah.
James LaGamma (45:40):
And it's interesting.
So one of the like Bankrate hasa table out there that shows
you like, based off thehomebuyer's age, the younger the
buyer, the more likely they'regoing to have a smaller down
payment.
Jonny Strahl (45:57):
Makes sense which is insane.
James LaGamma (46:02):
That hurts qualification rates, that kind
of stuff.
Ryan Selimos (46:08):
Is that really that insane, though, that the
younger the buyer, the morelikely to have a smaller down
payment, I mean, they have lessnet worth.
I'm not totally surprised, tiedto that, though they have less
net worth.
Kenny Massa (46:17):
And the reason, but I'm not totally surprised.
James LaGamma (46:18):
Tied to that, though, it's percentage based
right Right now, uh, 24 to 32 is8% down.
Um, but that's percentage of ofthe home values that are higher
nowadays than what everyone wasused to.
I mean, literally three yearsago the house that I bought was
lower than 300K and now it'sselling for 400K.
(46:42):
That percentage back then wouldhave been much higher.
It used to be like in the 13,15%.
Now it's down to 8% becausethey're not catching up the
household income.
That's the problem right there.
Income's not adjusting with theinflation and it's tough, you
(47:03):
know.
Yeah.
Kenny Massa (47:04):
I see it from both angles.
James LaGamma (47:07):
It took us a while to start making some
decent money, you know, but Ican see it's tough.
They want to buy a home, justcan't afford it Compared to back
in the day.
That's what everyone's doing.
They're comparing it to back inthe day.
Rates back in the day Blah,blah, blah.
(47:28):
Rates back in the day, though.
Ryan Selimos (47:32):
Our parents bought at 10%, 11%, 12%.
It's an interestingconversation when you hear you
know individuals 20 to 30talking about, yeah, it's too
high, it's too expensive, andthen you have the older
generation come in and say, well, you know the prices they paid.
Now again, a house back thenwas 150 000, but also wages back
then were were less, so it'sit's.
(47:54):
It's an interesting debate.
Yeah, I mean, but 10% to 11%.
At a $100,000 house, the brandnew five bedrooms, yeah, you
might be making less money, butlet's just keep it real.
Someone making, let's say,$60,000, $70,000 out of college
right.
Nowadays a lot of places arelike $50,000, $60,000.
(48:18):
Okay, college, right.
Nowadays a lot of places arelike 50, 60k, four or five
hundred thousand dollar houseversus a hundred.
And you said 150 000 house at30, 40k, like the cost of of
what people have been making orwhat people make.
I feel like it's different whenyou look at it from like
$10,000, $20,000, $30,000.
(48:38):
But when you talk about a homeand what the actual breakdown is
, I feel like it's way craziernow.
Jonny Strahl (48:46):
Oh, it 100% is.
James LaGamma (48:48):
So let me put the perspective behind it Ryan
You're talking about.
Back in the day, I think themedian income was somewhere
around like $35,000 for thehousehold income On the $100,000
house.
At a 9% to 11% interest rate.
The income to qualify wassomewhere around that $35,000
(49:10):
mark Because that's incomeratios and such income ratios
and such.
Well, nowadays, at a $400,000,mortgage rates are sitting
around 7% national average.
Your income to qualify,generally speaking, is around
$120,000 for household income.
(49:31):
That's two people if you havetwo people in the household.
If it's just one, you got to bemaking $120,000.
But the median income right nowis $75,000.
Ryan Selimos (49:43):
Johnny just said people coming out of college are
making $50,000 to $60,000.
Put two of them together that's$120,000.
That math checks out to me.
James LaGamma (49:50):
But the median household income You're saying
median household the average,that's two people already.
Kenny Massa (49:55):
I get that.
Ryan said boss up.
That's what he said.
Johnny just hit us with a stat.
Ryan Selimos (50:04):
I agree.
People coming out of collegeright now are making probably
$40,000, $50,000.
Put two of them, I mean thenumbers if you're $75,000.
James LaGamma (50:15):
You're still $20,000 short of $50,000, Ryan,
but also coming right out ofcollege.
If you're 75,000, you're still20 K short of 50,000, right.
Ryan Selimos (50:18):
But also coming right out of college.
Are you really expected to beowning a house?
No, parents pay for it.
So you probably put, put someput some skin in the game too.
We're in a time now where wewant everything right now.
Put in some work, put in somehours.
Kenny Massa (50:33):
What's the average first time home buyer age?
James LaGamma (50:41):
Um some hours.
Kenny Massa (50:42):
What's the average first time home buyer age?
Um, I believe it's like 25,which okay, so that's cool, not
terrible.
Ryan Selimos (50:45):
and and listen, boomers, american dream or a
steady paycheck.
Get your one, two percent raise.
Get Like that's a little bitdifferent nowadays too Like
pensions, you know, different.
It's just they're hard tocompare apples to apples I'll
(51:06):
disagree with that.
It really is.
But you can even see a lot ofthe generation where like oh
back in my day.
I bought a house when I waswhatever blah, blah, blah.
Well, yeah, it was also normalto get married earlier, have
kids earlier, all these otherfactors.
But you've also seen them samepeople also start to kind of
agree like it is a heck of a lotdifferent now.
(51:28):
It's also way more competitive.
James LaGamma (51:36):
Holy shit 28, 28.
Kenny Massa (51:48):
Holy shit, 28, 28.
No, the no 30s, bro.
It's been going up and downfrom like 31, 33, 36.
First time did you say 38 yearsold?
James LaGamma (51:55):
no 36 is in one of these articles.
Ryan Selimos (52:00):
It's called 30.
James LaGamma (52:02):
I haven't seen one article on this search that
says anyone lower than 30 yearsold.
Kenny Massa (52:08):
Wow, that's surprising.
Ryan Selimos (52:12):
I feel like that data, though, can also be a
little skewed.
Could it be skewed, like, ifyou're living in New York City,
you're not buying, you'rerenting, right, Like okay, then
you have a family, you move toFlorida?
Jonny Strahl (52:26):
Like Ryan loves.
Ryan Selimos (52:28):
Get them out, right.
Jonny Strahl (52:30):
Like $600,000 studio apartment you're living
in in New York City and buy thenext door neighbor house to Ryan
Say hello, ryan, I'm from NewYork City, get the fuck out of
my lawn.
James LaGamma (52:50):
What lawn?
Ryan Selimos (52:51):
in New.
James LaGamma (52:51):
York City, isn't it nice?
Jonny Strahl (52:53):
to see, no, when they're in Florida.
James LaGamma (52:54):
I know.
Jonny Strahl (52:58):
Oh man.
Ryan Selimos (53:04):
It's an interesting debate, though,
either way whether right, wrongand different, there's a lot of
different ways you can go with alot of this data.
Well, here's the reality, man.
We talk about how old you are,the younger at the interest rate
.
We talk about how old you are,the younger at the interest rate
, dishing off a lot of money anda lot of responsibility for
someone at that age that's goingto quote-unquote, pay their
(53:26):
house and you know what, shouldthey be mature enough to make
that decision.
I mean, listen, you got peoplethat are 40, 50 years old making
mistakes every single day,people all the time.
When it comes to housing,there's a lot of tradeoffs.
There's a lot of risk, so it'sjust tough.
(53:49):
James, I'm sure you probablycould educate us all for days on
how that all works Another time.
James LaGamma (53:56):
Another time.
It's fun.
In a consumer-driven market,man, everyone wants you to spend
, spend, spend.
Credit card debt is crazy.
Ryan Selimos (54:06):
Just forgive it.
It's fine, Sorry.
Sorry, we won't go down thatpath.
I heard you're no come on, no Ijust heard you're a really big
believer in student loanforgiveness.
Oh for sure, 100%.
Oh my gosh.
James LaGamma (54:29):
Yeah, you know kids coming out of college and
they're making $50,000.
Ryan Selimos (54:34):
They should be able to buy a home.
Too many people want ahousehold.
James LaGamma (54:38):
Student loan debt .
Ryan, there you go.
Kenny Massa (54:41):
Well, that's something that probably delays
it right?
Student?
James LaGamma (54:44):
loans.
Hell yeah, that's probably whypeople wait until their 30s.
Ryan Selimos (54:48):
Definitely why I mean in the time of 2020, just
keep delaying it, Keep pushingit, delay it as much as you can.
Jonny Strahl (54:58):
Because once you pay those student loans off,
your credit score is going downa lot.
Kenny Massa (55:09):
I'll leave you with this.
You want to see something crazy?
Look up the increasing amountof phantom debt in the United
States or globally.
But phantom debt is aninteresting new way of debt
collection through the entiresystem that is not reported on
(55:32):
credit.
That is continuing to grow atexceedingly high rates.
To give you a, for instance,phantom Debt is like those pay
multiple payment options whenpurchasing a good on any of
these platforms.
Like a firm right, pay this inthree options out of your bank
(55:55):
account over the course of threemonths or whatever.
Three to six months.
There's different plans, butthey're not reported on credit.
But it is a collection of debt.
James LaGamma (56:05):
Oh, so, like, if you miss a payment on, like, say
, your Verizon bill, that's whatthey're using as an example
here.
Seven years later, it grows to$4,000.
Kenny Massa (56:16):
11 cents it's just crazy shit, crazy, crazy shit,
but it's.
It's growing at exceedinglyhigh rates, mostly because of
the way that people purchasegoods today, with online
accessibility and whatnot, um,but I feel like just a whole new
realm of debt.
Ryan Selimos (56:34):
Go look at it, it's fucking nuts so and it so
that, like when you're on Amazonor like you're on like Best Buy
, and there's that like hey, forthree months you could pay a
$43.
That's, that's what you'retalking about.
That's phantom debt.
James LaGamma (56:48):
The buy now, pay later debt yeah.
Ryan Selimos (56:50):
Also called zombie debt.
This shit's coming crashingdown, and that's a smart idea.
Kenny Massa (56:58):
It's smart for the companies, but you got to look
at the statistics, dive into it,look at it.
It's completely new.
That's a way of changingconsumer behavior and it's like
almost a subscription model fordebt like, but because of how
(57:20):
consumers are spending, it'snormalized, so it's really
interesting good subscriptionmodel you know, I've I've heard
about this.
James LaGamma (57:33):
The ftc and the cfd have been issuing a lot of
statements about this stufflately.
Kenny Massa (57:40):
Yeah, and you're going to see some different
changes, of course, over time.
But you know, as new thingscome out, that always happens,
damn.
But yeah, dive into it a littlebit if you have some time to
read about it.
Ryan Selimos (57:58):
Don't send me a 30-minute video on.
You have some time to readabout it.
Don't send me a 30-minute videoon it, but I'll read it.
James LaGamma (58:03):
Fuck you, Ryan.
Everything's going to be short.
Hopefully people are listeninginto this podcast at 58 minutes
Fucking joker.
Kenny Massa (58:12):
Ryan just wants the first thing, goodness gracious.
Oh shit.
But yeah, I mean, it's justinteresting stuff.
Got to check it out becauseit's different and it'll make
you think a little bitdifferently than making a
purchase.
Maybe I don't know.
But yeah, interesting stuff.
James LaGamma (58:35):
Nice.
Kenny Massa (58:36):
Cool.
Anyone got any last-minutethings?
Jonny Strahl (58:43):
before they fall in a hole of reading about debt.
James LaGamma (58:44):
No, moving sucks.
That's my last comment.
Moving fucking sucks.
Two men in a truck storageunits, storage pods.
Jonny Strahl (58:56):
What a business, if you made it this far to the
podcast we should do a podcastfrom James' pods podcast from
the pods.
James LaGamma (59:06):
There's a lot of chairs in there.
We could do that.
Wifi reception still on untilthe 10th air conditioning or the
sweat box.
It's a sweat box.
I have a fan, I can, or anextension cord.
Kenny Massa (59:23):
Sounds terrible.
James LaGamma (59:26):
It's a commercial .
It's a commercial fan.
Kenny Massa (59:29):
It's hot as fuck here.
That's bad.
James LaGamma (59:32):
I was fucking nervous.
It's up at 97 degrees.
I was drenched, it was.
So it's up at 97 degrees, 97.
Dude, I was drenched, it wasbad.
Ryan Selimos (59:39):
It was so hot in Florida.
The water isn't even refreshinganymore.
Just stay away.
We got nothing good to offeryou.
Kenny Massa (59:47):
Jesus, awesome.
Well, we'll see you down herein Florida, everybody.
Jonny Strahl (59:55):
The vendor continues.
James LaGamma (59:57):
The vendor continues the vendor continues.
Ryan Selimos (59:59):
Oh my gosh.
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