when should you actually move out of the basement?

I've been paying for my housing since I was 19 years old and it did teach me a ton of independence.

50 of people who make $150,000 to $200,000 a year are literally living paycheck to paycheck.

Don't make it so expensive to find out what you don't want to do.

if you're really nervous about going out into the marketplace and not sure how you can afford, it have that conversation with your parents. financial literacy is going to make a big comeback with millennials and Gen Z. Forget about all those people out

there. Forget about it.

about those people out there.

They're not

not here. We're just having a conversation about our favorite pastime and our income source, which is real estate.

Yeah.

Yeah. Yeah. Yeah. Fuck. Yeah.

Welcome back. I'm lighting you up. Yeah!

last two weeks, we've been talking about something near and dear to your heart, and this is something I want to talk about, which is near and dear

let me have mine, I'll let you have yours.

I have a lot of experience talking to younger especially as they decide to enter into the home buying stage,

Cool, same.

but I also mentor a lot of younger people who work for another company that I'm affiliated with. it's hospitality, lots of 21 to 27 year olds, lots of people going through college, coming out of college that Gen Z that like. first part of Gen Z. I think Gen Z's are like 20

getting old.

They are getting old. I think that they're like 20, 28 now? You're a young millennial and I'm like, the youngest Gen X er.

an elder millennial. They might be like 26, 27. if you're a Gen Z er and you're on the upper end, just let us know how old you are. Yeah. Cause my cousin's, oh no, he might

He's 28? Yeah.

Ooh. Okay.

Yeah, so you know that first wave of Gen Zers are getting shit on the same way that Millennials got shit on which is For living in the parents basement,

I've got to say, so I just saw a, a reel on Instagram of some Gen Z er popping off and telling on the other generation, about how they left them screwed and it's literally, I think, they didn't specifically say hey, I almost thought they were talking to Millennials and I was like, ah da da da da, but then like, hey, I was like, they're talking to the Gen Xers and They're saying everything that us Millennials have been saying and man it just felt like I could get my popcorn and sit back and just watch them go and I was like You tell them that's what we've been trying to say. maybe after two generations worth it'll start actually catching on

we said in our very first episode shitting on other generations is just, that's just an American pastime. I think it's like more of a human pastime. I think that generations have always said that the younger generation and that there's always been resentment across the

Gen Z is weird, but

but you know what man as somebody who is

but as far as their struggles, I think that we're going to find a commonality in the shit we got to pick up and the pieces that we ought to put back together. Yeah.

I listen I don't disagree I think that I first saw these generational distinctions are in a way dumb the difference between a 31 year old and a 28 year old is going to be very marginal. It's just the fact that one happens to be a millennial, one happens to be a Gen Xer, right? But,

on it more and I'm sure I'll have more to say, but carry on. Okay.

so one of the pastimes and one of the political footballs that occur and the thing I hear a lot of older people talking about and younger people talking about is when should you actually move out of the basement? when you come home from college, should you live with your parents or should you do this thing where you go out into the world, you've gotten your degree. Should you go out into the world and start renting, making your own mark, whatever, a cliche, pull yourself by your bootstraps, whatever. I'm in a minority that says I think it's ridiculous that 23 year olds, 24 year olds are asked to go out and start renting homes. I don't think it's financially feasible. don't think it's viable from an economic standpoint. And I tell older people who are like their fifties and sixties and seventies where they're like, and I know 50 year olds are going to be like, I'm not old, but it's for the sake of our conversation. Bear with me.

did you hear that guys? Yeah.

damn it. you can either pay for your kids when they're 21 22 23 or you can pay for them when they need financial assistance because they've been they're hemorrhaging cash into rent with no return on investment whatsoever. There is none. there's a lot of people who talk about renting your house and investing and that's like a whole other side of a strategy. But I make the argument that a person only has one chance at like launching into their life, from a wealth standpoint, from a health standpoint, and from a relationship standpoint. We just got done talking about relationships.

say like somebody stays in the house from 22, 23, 24. So then what do you think the So age should be that being at home with mommy and daddy is a little bit much.

the age should be that being at home with mommy and daddy is a little bit much? right just outside the city. Somebody's in residency at University of Pennsylvania. I have no problem with that person until they're 27, 28. If they're comfortable living there and their parents don't give a shit, why do we care? they've got a boatload of bills and Frankly, depressed wages when they first become a doctor and debt waiting for them. And like, why would you then also ask them to go spend 2, 000 a month on rent and they got to buy their own food and everything like that. And listen, I have no problem with a parent charging like a small rent or saying you got to get your own like my net.

my take on that. that did happen to me and, I was not as fortunate to be able to, have an option to not rent. my living conditions were not, great and not favorable. So I did get out on my own when I was 17. But, for a short time I did stay with a family member who charged me rent. and I was working part time and I thought it was a little ridiculous that she was charging me rent because I was freshly 18 years old. so here's how I think it should be handled. So if you are going to be somebody who is charging, your son, daughter, niece, nephew, whatever they may be, stay in your house and you do want to get a rent from them. I think that you should keep all of that money. spend it on yourself, but put it into a fund for them for when they are ready to go buy a

of that money. don't spend it on yourself, but put it into a fund for them for when they are ready to go buy a house. I think there's not enough conversations going on. with parents and their kids about putting that plan together and understanding that like, listen, if this person's working full time they're not going to be home that much and they're not going to, but if they're loafing around and not doing shit all day that's totally different and maybe sometimes kicking them out of the house and

go see how hard the world is.

how hard

how hard it is to save

And, cash flow

just like pissing their money away every month. Like, Oh, I don't have to pay a rent. So I have all of this money instead

and, and that could be, I'm talking about responsible adults and just basically the, the parents and the kids who are organized and they want to put together a plan. And I see a lot of people that are like, 27, 28, they have no savings and they've been living on their own for four or five years. I want to make the case that strategically and economically it's better for that person to just stay home. Forget what your neighbors say or your friends say, I'm talking to the parents, there's this whole thing about like bootstraps and the older, older, older generation is always shit on the younger generation. Be like, I made it. So now you have to make it. And it's like, the world's a little different, man. World's a little more expensive. are,

I could take that take. like I said, I've been out of the house and on my own since I was 17 I started paying to rent when I was 19. I got my own apartment, but I've been paying for my housing since I was 19 years old and it did teach me a ton of independence. It did teach me how to have to manage my finances, and taught me a lot about having to be like, I've always was hyper independent, but

So you disagree with me?

hold on, A, this was also at a different time. So this was also back in like 2009, 2010, 2011 where cost of living was a little bit lower than it is now. Uh, the cost for rent was a lot lower than it is now. my first apartment, I'm gonna piss so many people off. It was like, I paid for my half, I paid 600 or like 650 a month for a two bedroom, two bathroom

apartment. Dude, my wife and I rented an entire house for 950 in Lafayette Hill. In

2008.

2008.

So I can say I did this, so like, why can't you? That I think is the Boomer way of saying it because I can also admit to the fact that like it was cheaper for me to do that at the time. And it would have been a hell of a lot easier if I didn't have to. Like I was also really stressed. I lost myself a lot during that time. I was too busy having to like. hustle and work hard and make that extra money and I was exhausting myself and it was just really just surviving to get through versus being able to sit down and actually have a smart, strategic financial plan to get me like into a home. I mean I did I made it happen but what I did and what how I got it was not what people are facing right

people are facing right now. But it was not, it would have been a

did it, it would have been a lot easier if I didn't have to.

didn't have to. Right, it's like, can they, yeah, but

Because I think where this could go wrong too, though, is like if somebody is just stay at, like parents let their kids just stay at home and it just, for me, it just gets too comfortable because then also imagine that somebody has been staying at home all this time. That sticker shock has got to be so much stronger

if there's a plan, it's less so because it's like, listen, I'm going to let you stay here for the next four or five years, but you're going to save your money. And we're going to talk to somebody now and I'm going to show you how expensive it is to buy a

Right.

you're not going to pay someone else's mortgage for five years and stretch yourself out. I'm going to let you stack your cash here, and then we're going to go out and make a good investment for you, your payment's not through the roof. there's such a lack of financial know how in this country. It doesn't surprise me that this is a problem. I think that there are a lot of people out there they're just checking boxes. It's okay, you got through high school, now it's time to go to college. You go to college, okay, now, again, this is what I did in 1995. I moved out

And not acknowledging that times have changed and things are different, and so does the path and direction that people are going in. Don't even get me started on how the people just have no option, or it's not even presented to them, to like, do like, vo tech stuff. Or to do, just like, go be an HVAC technician, we need more.

Well, like

go be a roofer, go get into construction.

think one of the biggest rackets in this. Country is college. I really do. it is a cash grab. It is a way for a lot of loans to be issued. I'm not a conspiracy theorist, but I do believe there is an effort to send that message that you should get a college education to, and going into debt,

It's killing people's chances of getting a house too. plenty of people who want to buy a house come to me, put, they go through the process, get in touch with the lender, lender comes back and says, everything looks great except your debt to income ratio is just, it's too high. You could barely qualify because of your student loan debt. And

we haven't even talked about that. Like maybe you take that 22 to 25 year and crush that debt. And maybe try to pay off those like small loans that you have maybe for your education. But being able to retire that debt will then put

in a

better position. But you can't do it while you're renting. that's what you can, but it's hard.

I think that this will start becoming a little bit more and more normal as like time goes on because of all these like issues that have been going on, but I think where it can go wrong is where the, when there's not going to be any plan in place it's one thing to say stay at home and save some money, period. And then, it stops there, but people have no idea, like, how to save the money, what they're saving it for, in what amount of time, how much they need. they have the right idea of, I'm gonna stay home and, save up my money. But, there is, that's it, and that's where it stops. And I think that's where a problem is gonna

I had a buyer who was 25 years old and his parent and I said, Oh, it's like, man, you got all this cash. He said, yeah. Cause when I was 19, my father had me talk to a lender and he showed me exactly what it was going to take to buy a house.

god, that's so

That's so smart. but guess what? The kid lived at home. he was making 25 and then we found a mouse. And he knew how much it was going to cost, he knew what the costs were involved.

Talk about there's no such thing as too soon, but there is such thing as too late. You're talking six years ahead of time. We're not even talking months or even like 12 months.

and during that time he was able to take care of some of his student loan debt. like I said, there's such a lack of financial, literacy in this country, I just was watching this Instagram post, from Rachel Cruz, who's highly affiliated with, Dave Ramsey, I think it was like 50 of people who make $150,000 to $200,000 a year are literally living paycheck to paycheck. And it's not because it's not enough money. It's because they just don't know how to manage their money. So, like, you're thinking about somebody who makes 175, 000 who's living paycheck to paycheck. How the hell is that person going to be like, okay, I'm a disaster financially, but this is what you're going to do, son or daughter. and so it makes sense. I also believe that financial literacy is going to make a big comeback with millennials and Gen Z. And I've always said that the party is going to stop with college when. Millennials have to start sending their kids to college. Or like younger Gen Z ers. People who started to really feel the crunch in like the late 90s to early 2000s. And now like college is just so expensive.

Oh my God, I get into such a rant on college. You can ask any of my old kids from my old job. It would be a gen after dark once the doors were closed and locked where I would just go on tangents to them about how, cause there's so much pressure on them to like their take getting ready for the SCTs and having to apply to colleges. And I was like, college is a scam. And I was like, people don't tell you like what else you can do with your time. And plus it. Things that take four years and then to be told that it might take another four years after that, oh my God, two of them is like, okay, I want to be a doctor. But first you have to take a yoga class. You have to do some like phys ed or English 100 where it's stuff that I learned in 10th

grade English listen, if you're going to be a doctor or lawyer or engineer that's highly specialized, go to college. Please

do. I'm not saying

want some bro doing heart surgery on me.

But like an accountant,

An accountant should probably go to

I'm not saying they shouldn't go to college. I'm saying there are certain classes that are prolonging the amount of time, the amount of money you're hemorrhaging

that's their first world problems. I'm talking about the person who like wants to go into sales, they end up going, getting a history degree and they become cooks. They,

communications

psychology degrees and they become construction workers. There's a lot of parents out there who don't clearly communicate with their kid like You're gonna go borrow all this money and I know it's where like your buddies are going or it's where you've always wanted to go You know

Or take the community college,

there go, go

to a community college for, to find out what you don't want to do. don't make it so expensive to find out what you don't want to do. cause you also shouldn't have the pressure at 17, 18 years old to know exactly what you want to do with the rest of

life. Here's a little fun fact. Most 37 year olds don't know what they wanna do with the rest of their life. Most people are unhappy with what they do. So the idea of asking a 17 or 18-year-old what they want to do is complete unless they're like absolutely passionate

And I love

And that's great, but that's not, that's like the jenky version of knowing, like with like home buying. We're like, you were able to rent for all those years and you ended up buying anyway, like it's hard to do what you did. You should be proud.

Thank you. I am.

But at the end,

Being impulsive also.

being impulsive and, and impatient. that's for another time, but I still very firmly believe that the younger Xers and millennials will start this trend where they're going to be like Johnny and. And Susie are not going to the college. They are not doing this four year thing. Because a lot of times by the time those parents are sending their kids to college, they are still paying off their own debt. And so they're gonna be like, I'm not putting my child through that. and so whether you want to go to college or not is totally your business. I would just implore, have a plan. Or have a couple of options you want to go for. So like my father gave me great advice. He said, I don't care what you go to college for. if it's not in business, you're going to minor in it. And if you're not in some forward facing business minor, you are going to take public speaking classes. He said, you have to know how to actually talk to people in order to have options. And it was great advice, but the same thing goes for buying a house. If you want to buy a house before the age of 30, you absolutely must have a plan unless you're receiving an inheritance or you're making gobs and gobs of money where you don't have to, plan. Or you had college paid for by your parents or some other kind of fund. getting out ahead of this is very important, and I do strongly believe that a reversion from this like fierce independent American ideology of everyone gets a house, everyone stays in their own house, grandma's got her house, the kids and then the grandkids have their own house is nonsense, and as things become more expensive, it is going to be harder for everyone to afford all these houses. I'm just

I was just going to say that I think as time goes on, it's going to get harder

to get harder. It's going to

millennials and the Gen Z to buy houses.

no, but I think it's going to get harder and harder for these three generations to be in separate houses. like we were already seeing it with seniors moving back with their kids because they can't afford that they're too young to go into assisted living or they're not sick enough to go, they're in good health, but they just can't afford to take care of this whole house on social security. That has already happened, but I feel that there's way too much pressure for young people to get out of the house. And like, go and like, make your bones. You should do. You should do. Now listen, you live in Cincinnati, and, your daughter goes to, NYU and gets an apprenticeship on Broadway. that's totally different. Yeah, she's gonna have to live in a shoebox for, for as long as it takes. That's different.

But have a

plan. But have a plan. And also, if you live in Cincinnati, and you go to Ohio State, and you have no idea what you wanna do, and you don't know where you wanna work, come home. Regroup. Create a plan.

Do what I did. Just live vicariously through your friends at their colleges when they have to go to class and you don't you use their meal plans And their friends meal plans. Trust me. I mastered this one

do that. Don't do that. No, but I, I

follow for

I, I, I don't want, I don't want to be a dead horse, but I wanted to get on here and just really assure the younger listeners here, if you're really nervous about going out into the marketplace and not sure how you can afford, it have that conversation with your parents. And talk to them about, Hey, I got a plan. I could pay you like a small rent, but the reason I want to stay here is because of X, I want to be able to buy a house in four years. I've already talked to a lender where I've, I want to talk to a lender. I want to get set up because I don't want to be. Pour a shit at 27 and nowhere I want to have a plan and I think most parents as long as you have a pretty constructive relationship would listen to that Probably be pretty impressed, too. So that's my spiel

Okay. That's good spiel.

Yeah, good. Yeah, I'd like I like this one. This is good. See

Well, tune in next time. but for today, that's it.