@@lukasvisby1156 He's cracking jokes. It's not exploitation. They're paying rent to live in a place and he's using the thing. They're willing to pay him rent to buy a house at no cost to him. If they didn't do it, he just do it with other tenants. It's pretty common and it's a pretty smart thing to do. The only thing that sucks is it's hard to keep tenants
@@TheJonnyhankins It's still a difference, since the "friends" in this scenario apparently didn't know who the owner was ... which is another problem entirely if they rent the place
Here is the thing... it's HIS house... Meaning, you are paying rent to stay there.... So it makes sense. If it was someone else's place and he was sharing, that'd be a douche thing to do... But he's literally just renting out the room...
@@TheDeathmail But see, it’s not presented properly. This is honestly just a super slimy thing to do. If I found out this was the case for me I would not only leave, but I would do my best to avoid that person for the rest of my life.
@TheDeathmail what your missing is the fact that not everyone can do this. In order for him to get that mortgage he has to have the money available to pay the deposit. The renters on the other hand have no option to buy the house directly, so are forced to rent, which is (as explained in the video) more expensive than if they had been able to buy the house. The landlord here isn't renting out something that is his, he's simply a meddlesome middleman.
@Oblivi0n it's a problem because this option isn't open to the renters. The land lord here isn't just renting out his spare rooms, he has likely bought a house with a mortgage which the renters couldn't do as they wouldn't have the money to lay down a deposit. Thus the land lord here is a meddlesome middle man, doing literally nothing and yet reaping 500 dollars a month.
I mean, he is bearing a lot of the risk. Prices crash, the unit gets damaged, the roomates turn out to be assholes who trash the place, or even they just found somewhere better or decide to take a different direction in life, and it's him who is left holding the metaphorical ball. But yeah, it's definitely the kind of thing that needs to be entered with full disclosure from the start, not something your "friends"/roomates/room renters should discover months after.
@@nikadgod5152 Some of the risks he would be able to pass to said roommates, such as prices going up instead. It wouldn't be very friendly of him to just pass along any such shock, mind you, but he'd be able to do so. Although given that the whole (fictional) situation was entered under a misconception, I wouldn't call them friends either.
No, scalpers find the true price of the concert ticket. If someone is willing to pay scalper prices, then that's what it's worth. Fault the other parties for not pricing them correctly.
@@Pteromandias riiiiight, but they "find the true price" by removing all supply from the market thus making it a more expensive product. In the same way that landlords remove the supply of housing for sale from the market thus increasing the price of housing. If all landlords sold their property then the price of housing would go down.
@@higbeez That's precisely what they do. Prices are supposed to match the number of buyers with the number of available units. If a concert only has 1,000 seats, then there are 1,000 tickets to be sold. How do you allocate them? Throw them up in the air and let people fight it out? Tell people to line up? Then you get the people who can be in a line two days early. Or you can allocate by willingness to pay. For the first ticket you charge the highest price someone is willing to pay. The second ticket you sell to the person willing to pay the second-highest price. If you run out of tickets before you run out of buyers, that means you are setting some of the prices too low. Something is only as expensive as the highest value the next person in line puts on it.
@@higbeezAnd your example of landlords is false. Do you know what else prices do? They tell people who make the supply that people are willing to pay high prices down to the last unit. So what do they do? They make more supply. That's what's happening in real estate right now. Prices are going to crash here soon. Not because landlords are selling, but because there has been a ton of building and there is soon to be a glut on the market. You didn't need landlords to sell. You just needed a higher price to get the builders to try to capture that high price by building more and bringing it down. I see this all the time in oil. Oil prices skyrocket. What happens? People enter production who couldn't produce oil profitably when it was $50/bbl, but can when it's $100. And when it gets there and stays there for a while, people are willing to take the risk, build more wells, and increase the supply. We saw that very thing happen a few years ago. Saudi Arabia got slapped by thousands of independent producers in the US.
@@Pteromandias I feel like you and I have different perceived goals of a healthy market. Finding the highest possible price that people are willing to pay is bad for the consumer and good for the sellers. If the venue for a concert is slotted at 1,000 people and the cost for that show overall is deemed to be $100,000 after paying for labor and everything, then the tickets should be priced at an average of $100 each (assuming they know they will sell all tickets). Scalpers know that they can buy at this initial price point and sell it for a higher price to desperate people who want to see that show. This provides no service and does not help the people wanting to see the show. It does not support the artists providing the entertainment. It's an entirely parasitic form of cash generation. Also your point of using high prices to incentivize more building assumes that we do not have enough housing. What I am suggesting is that there generally is enough housing in most places for each family to own a home, but having the homes only available for rent artificially reduces the amount of housing available for purchase and increasing the prices for said housing. You agree at least partially that this is true when you say that prices will crash. The houses they are building will not all be sold or rented out because they are building too many houses and eventually we will have a surplus of housing that we will not need.
@@jujubee531 no one has ever made a living from renting out a single home. Most rental properties will probably yield less than 2k profit from their mortgages. No one is living off 1k a month. Hell even 3k a month isn’t enough to live off of comfortably. You’d need to own multiple properties to have a comfortable “passive” income all while paying a property manager, taxes, insurance, any repairs, ect… you live in a socialist wonderland if you think otherwise.
@@cande231 you’re literally a child that doesn’t understand the implications of what you’re saying. You’re young and that’s fine. Just don’t be so confident in something when you literally have no idea what you’re saying.
I knew a sketchy guy who did basically the sane thing he rented a house and made his roommates pay for the property every year he said the landlord increased rent which was false. However once the roommates by mistake opened a bill from the landlord they realized what he did. He lived for free and made 500 bucks off them. They left the house as a result. The guy was always sketch though as in high school he stole his dad's credit cards and went on a spending spree racking up 40 grand. He is 32 now and his family doesn't even talk to him.
get like 1 renter and your set for life. there was dude on facebook who happened to learn that his landlord was living on his renters paycheck to his renters paycheck when one day this dude paid probably last minute, so the bank overdrafted on landlords account and landlord complained that his bank overdrafted on his account. TO HIS RENTER.@@rooks786
I lived in a friend's spare bedroom in LA for two months and paid him rent. Should I feel like I was taken advantage of? Should i have stayed for free?
@@jonathanw1019you went in knowing it was your buddy's place already. If you actually watched the clip. In this scenerio, the two paying him $1500 each, were never made aware of it. And the 3 of them are living under the same roof
The internet is crazy. Its just rich people explaining how they exploit you and painting it as a good thing or a grind 💀 not everyone is 14 and falls for that
What you’re missing is that nobody has to “fall for it”. It’s just the way the market works. Most people will continue to rent whether they understand this or not.
@@zbrcht because there arent alternate options. People dont rent because they like renting, they do it because mortgages cost more than renting by a good amount. Saying that im missing something here makes it seem like society necessary needs to be structured in such a way when that is simply not true
@@jakstew8168 "Nationally, the cost of owning is 31 percent higher than renting, but the disparity is greater in metropolitan areas where housing prices have surged, the report said." Just from the top result on googling which is more expensive. If you have a good source for your claim, though, im happy to look at it
The comment trying to pretend he understands the housing market and not realizing it’s Democratic single family home policies that drive up the cost of living.
@@dillzilla4454 I never said you were and these policies can last years to decades after a democrat has been in office. If there was ever a single democrat in office in your state or county, then you can be certain they are the reason you can’t afford anything.
exactly how is he drving market forces? he's not . what drives it up is supply and demand, he's actually making prices less by making it affordable for them to have a place to live. why don't you be smart and do the sme thing?
wouldn't you call your friend parasitic if you would learn that you are paying them 1500 a month and your other friend is also paying them 1500 and the cost with all the payments for them is like 2000 or eventually when the loans are paid , that 2000 cost for them suddenly drops to 1000 and you are still paying 1500 wither your other friend to your 2nd friend@@rooks786and since he was most likely living at same place, i dont think he gave them proper notice to visit their rooms when they were gone.
People do this all the time, but you need to keep a bunch of things in mind: 1. There are other people in your house. If you're cool with this then that's fine - I don't know too many people who permanently want roommates for decades. Else you would need something like a 3-flat where each unit is separated. 2. That $500 has to go towards maintenance and potentially utilities if it is an old-school building where the units might share water and sewage, etc. 3. You have responsibilities as a landlord. If you're lucky maybe you are renting to a friend and they're fairly lenient/relaxed when something goes wrong. Otherwise if a washer or fridge breaks down you need to drop everything and get it fixed immediately. Each day that it's broken the less money your renter owes you for that month. In moar places you also just can't tell your renter to leave or move if you want to do something with the property. 4. You have to PAY TAXES on that rental income. 5. You have to be smart about things. If you are depending on renters to cover your mortgage you can end up in a tough situation if you end up with vacancies for extended periods of time. If you don't have renters for 4 months you're still on the hook for $10,000. You also have to keep the units in good shape or they become harder to rent out again. Not saying that this isn't worth doing, but there is some real work and caveats to understand. Normally this is something that people do in their 20's or 30's and then they buy their actual home later on. Note that this works entirely different if you are renting out a place that you don't live in.
My friends would enjoy the fact that I provided them a full disclosure of what I was doing. I don't know who those people are in his life. But the way he just told them was not how I would speak to my friends. And that grin is not friendly.
@@shagunsharma6973 Not a "scam" but something really foolish. You shouldn't buy a home you can't afford on your own. This has no guarantee and depending on where you live, squatters have rights
It’s not being fucked over. It’s 1 person getting a mortgage & giving a home to others for a market price. “Fucked over” is forcing vulnerable people to live in unsafe homes & pay above-market price, while threatening them with eviction. Grow up.
If room rentals in the area are 1200 a month + a portion of the utilities say 1400 How are they getting screwed over? How much is Peace of mind when it comes to your roommates? Most people would rather pay the extra 100 to stay with people they like or a landlord they believe will cut them a break if they are in a rough spot. Besides A) he can afford the house on his own or he wouldn't have been given the loan. (Excluding investment loans which have higher costs but he still has to have enough of an income to cover a minimum portion of the loan payment. few years back one of the loans I was looking at, expected rental income only "covered" 70-80% and you where required to have a "holding" account with like 6 months payments and an LLC. Essentially it was an intro real-estate investor program through a local credit union.) B) most likely they signed a contract could be a month to month but if they signed a 6 month or longer they are still on the hook for the remainder of the lease.
Yeah maybe we should go back to Soviet Russia where they gave you a free apartment. That sounds amazing doesn’t it? Or maybe Cuba where your land is basically leased from the government and can be seized at any moment they want.
how is that different or worse than bankers? the fact that you don't mind bankers, who sit atop landlords and everyone, exploiting everyone shows your naivete
Man that's crazy. I guess if you hate landlords so much head out and spend your money on a house. Just become your own landlord if it's so easy and affordable.
Wrong. They maintain the property. They go through the effort of acquiring tenants. You really don't know shit about real estate my friend. Land lords have to exist if you want to be able to rent a house to live in.
@@micahslash anyone with capital ... Most people don't have capital .. and the people WITH capital do stuff like this so our money builds THEIR capital and we can never improve our own. Landlording as a business is exploitation unless done ethically, and this ain't ethical
@@lorenebonsu146 it could be mortgage fraud if you don't disclose to the lender that you're planning to rent all or part of the house out to others. I think they charge different interest rates depending on if it is going to be a personal home, or if you are using it to generate income
@@annaku_wantsnewbfI'm not sure of the legality of it but, its not safe on the home owners part. If the lease isn't legally recognized and theres a problem with the tenant im sure it would be much harder to them them out. Also its beneficial to report the income and research tax benefit associated with real estate and home ownership. The home owners that do this are either lazy or ignorant.
Keep in mind that renting rooms still makes you a landlord and those people have rights and if you want to kick them out it might be super hard as long as they keep paying their rent. Depending on your area it may be cheaper to rent a room than it would be to rent your own place.
@@rooks786 no, im one of the poors. however I actually follow the rental agreements so aside from owning the property my landlord does essentially nothing.
Somebody tried to get my daughter to move in to a house like this. When I heard how much she would have to pay, I went online and looked up how much the house actually cost. Turns out, one of the roomies was the daughter of the owners. If she had moved in, she and the two other roommates would have ended up paying at least $1,000 over what the actual cost of the mortgage, insurance, lights water and internet. I called the girl out on the scam.
For those saying it's not a scam consider this, when you rent a house it is legally your residence and the homeowner is not allowed to encroach. They may not store things without your permission, they may not wander through the house without first notifying you. It is your residence. If my daughter had agreed to this, she would essentially be paying to live in someone else's residence as a room renter. That would be fine if that's what was being promised here. However, it was not. They were saying it would be equal roommates. Obviously one person would be more equal than everyone else. That kind of setup breeds discontent and malaise. The owners child would be on uneven footing with the rest of the occupants.
@@niceverswhen me and my daughters mom split up I rented out the 2 rooms in my condo to friends. I charged them both $500 per month. My mortgage was only $895 per month. This was in 2013. Lol no one felt scammed and I paid my mortgage and made a little off the top. I did however get drunk and pull the "I own this place" card a few times.
@@willishadams you rented out rooms in your place. They understood that. The scam was, this girl was claiming to be roommates. It didn't come out that she was the owner's daughter and getting a better deal than the other girls. It was being offered as an equal share roommate situation. Not a rent a room situation
@@willishadams so your friends payed you mortgage for you and you even went out of your way to get more money off of them. And then threatened them with the legal power you held over them. Even if the last part was only jovially that’s f’d up.
@@jaykilbourne1110 are you a landlord? Are you a bank? Does your dad pay your rent? Are you a child? Are you a Robber Baron? Decommodification of basic needs is an obvious step to take.
I cannot ethically do this to other people and held contempt for a coworker who tried this and failed. I did not feel bad when her roomies 'somehow' found out she was scamming them.
@@AlexConnor_ tbh, thats mostly just america. I have a 4 bedroom apartment with 2 bathrooms, balcony and everything close to the capital and its like 1000 euros a month
The ability to rent an apartment is important to modern society. Your paying someone who took on a massive debt for the ability to live in a home without that debt.
@@christianmoore7932no, you're paying someone's debt because no one is giving you a mortgage and/or you can't afford it in the first place. Landlords aren't soma magical creature that provides housing to us mortals, they are leeches that leverage their money to make more money off the backs of people who actually bring something to society.
You know if you have a problem with him doing that, you can take a loan to buy a house, but you don't wanna do that, there's risks involved? This is the price you are paying to him for taking the risks. His rent payments will go away if the house is vacant. But not his mortgage. You can change houses if uou loose your rental income, on the basis of your safety margin money. He has to take the risk of paying more money during period of high interest rates, versus fixed rent obligations.
"house hacking", no it's a huge scam to rent out a bedroom with limited house access for 1500. Most mortgages in my area are less than 1500. Sad thing is, people will pay this, and this is just using people. Also needs to be in your mortgage agreement that you can rent out rooms. If leasing, it needs to be in your lease agreement.
Are you really this slow? Its a TH-cam video and he made up the numbers. You really don't understand economics in general. The way the rental market, and really any other market works, is supply and demand. You are acting like the landlords are just arbitrarily deciding the numbers. They charge what the market is willing to pay. Is McDonalds using you by charging you 4 bucks for a 50 cent cheeseburger?
I had a buddy in a bad situation rent half my house. Things went bad fast. I ended up paying $10K from damages from him. He didnt have to pay for it but I did. Thats why peope dont rent their place for free -because people are terrible.
I bought a house and shared rooms about 5 yrs: had 3 crazy housemates, 1 couple brought kids in to occupied the whole house, 2 times had to evict them, and many times lost stuff.... There are pros and cons. If you can deal with these happily, you can continue. I'm out.😢😢😢
@@ElizabethUkeh so your saying, “don’t ever have friends, just have people who are ok with being lied to and have their trust broken, so that you can make money… Whoo.”
If I remember correctly, what was being showed was 3 people paying rent to an outside landlord they didn’t know. when actually one of them was the landlord and not paying at all towards “rent”. while there’s nothing wrong with this set up if everyone is actually aware of it, the problem comes from the lies, because as far as the others are aware, all three of them are paying equal rent to an outside landlord.
@@faizaqadirBi really hope this is sarcastic so he rented the house thats it, then he let his friends move in Saying they will "split it" while he contributes NOTHING to the rent and makes 500 dollars off of them A MONTH
@@faizaqadirB Not telling them that hes takimg more momey than he needs feom his FRIENDS so the he himself gets a house. Not being honest and upfront with friends is never a really good idea.
This sounds like that one drunk friend talking about how he’s gunna “buy property and rent it out” and how he won’t have to work because he’s gunna have “passive income” lmao
I own my house and have two roommates. Living under the same roof makes them like friends or even like my family. I charge them one-quarter what you charge them despite the fact that my house is in a very nice neighborhood in California.
According to the law in the UK, everybody within the tenancy agreement has the same legal obligation to pay rent. This means that other tenants can take you to court if you are unwilling to pay, or if you manipulate them into paying for you.
It might depend on where you live. In my town the regulations are base in the amount of rooms a house has. All you need to do is make sure is not extra cars in your driveway. Example if the house has 3 rooms You are allow to register 4 cars under that address
@@diaz-kasper I agree with you. In Hawaii, up to 5 unrelated adults can rent one single family home. Still a lot of “friends” to scam. However, if there family you can scam rent as many of them as you want.
Not necessarily I have known some great landlords but the problem is how many bad renters are out there. They never raised the rent but you had to pay for utilities. But renters can be the worst. One renter turns out was stealing from everyone in the area. Then one renter broke everything with a hammer. Another rubbed shit on everything. Another renter burned down there rental. That same renter caused all there neighbors to change rental properties due to there bad behavior and it turned out to be a great thing because the fire also burned down the rentals next to it. Then this one renter broke into the big house next door and moved in. Then there is all the people who break in and steal everything in a empty rental. Then there was the person who broke into different rental properties when people weren't home and lived in there house eating there food and they where a renter and a neighbor.
@@windyhawthorn7387 it's not about random examples of bad people but the over all class of people that are profiting from others need for housing check out second thought's channel he has s great video on this
@@technomad9071 I knew a man who did low income housing and because of him there was affordable housing in my area and even after his death it still going strong and people who started renting from him 30 years ago there rent has never gone up and never will. Because of him people who had no credit, no down payment, and a bad renting history where able to afford a place to live. And some of these people ended up buying the house they where renting or buying from someone else . Because while he had rental properties he preferred people to own there own property and encouraged it. I saw him help out young people to acquire land and even build themselves a small home. Yes there is a lot of greed in this world that drives bad practices there are non greedy people out there making a living without having to step on people.
@@windyhawthorn7387 they contribute nothing, and I mean literally nothing, to the economy, society or wellbeing if future generations. If you defend them, I hope you get the Mao treatment too.
I’m so confused on why everyone is so upset about this in the comments. As long as the rent is a fair price and the renters agree to be roommates I don’t see the issue. They’re going to have to rent either way. This is still equivalent to any other landlord who rents out their house, room, etc.
Step 1. Have shiet tons of money for down payment on house Step 2. Put a huge down payment so your monthly mortgage is low Step 3. Get a few sucker “ friends” to pay a super high rent Step 4. Sit at home and do nothing
I thought this was common knowledge. You're paying someone to live in their house, you're essentially paying the mortgage and some extra so they make a living off that.
This scenario is worse than that. There are two land owners here. Friend #3 and the real owner who is being paid. Friend #3 is pocketing the excess cash. Without him, the two friends could've co-signed for the house and paid $1250 for rent + expenses. Friend #3 is just a useless middleman bumping up the price for no reason.
surely he could have given his friends like 200 each mates rate.surely he can live with 100$ a month. not to mention i dont think he gave them notice if he visited at their rooms.@@jonathanw1019
@@jonathanw1019no but it doesn’t seem fair if they work hard to pay for the house and yet this ‘friend’ doesn’t have to pay anything, the 2 friends could pay much less if all three were paying for the house. Would you seriously not hate someone who you trusted that was taking advantage of you
This! My ex-friend tried this on me when I was in my early 20s. Brought another girl, and she had a child. Rents weren't insane then so spent an extra 100 for my place.
My older brother does this. And I have to say he played it well. He rents to people not smart enough to realize they are paying off his house but smart enough they can make rent reliably and consistently
I really don't understand the hate for landlords. They provide a service. Believe it or not there are people out there who WANT to rent a house and not buy one.
This is what I did two years ago... bought a bigger house, and (while i live there) rent out the extra two bedrooms to people I trust... Even with good tenants I'm basically not making anything and just covering the cost of bills as I didn't raise rent since two years ago when electric spices spiked... and they also caused a leak in the bathroom requiring a full repair accounting for over an entire years of rent for both of them. rent total: £1200 (bills included) gas / electric: 400 internet: 70 water: 40 misc for house monthly: 40 total costs 550 (650 left) -40% income tax of 650 = £390... Would you let 2 strangers live in your house for 390 a month profit, it feels like there's far more monthly degradation of the house than that covers
Landlords don't die from stress; they don't have any. They are taking a piss easy investment because they are literally speculating with a living necessity that every person needs, don't work or contribute anything to society like the leeches they are and live stress free because they haven't lifted a finger in their life.
Active duty military, mortgage 1,450. got 1,600 housing stipend(non-taxable), rented 2 rooms out for 700 each. Both roommates also got a 1,600 stipend. Great cash flow all around
And then your two 'friends' (in quotes because you don't do this to people you're actually friends with) leave to go rent somewhere else from someone who isn't lying to them and taking advantage of them, and let everyone know what you're doing so that you suddenly have to get a job and pay that mortgage by yourself. With no friends to help you if you get into trouble.
I have a friend who did this. And then he bought three other houses in the same college town and rented them all out room by room. That’s how he paid off his student loans.
One of my first landlords did this. He bought a house that had three bedrooms upstairs and four bedrooms downstairs. He rented out every room for $300. Everything included, even Internet. Till this day he still owns that property and has moved out with his wife. Now he rents out all seven bedrooms for 500 apiece.😮
Yeah...I had something similar to this. The landlord got clued in that if he rented out the bedrooms in our apt and made the kitchen, bathroom, hallways/small living room all "common areas", he could make a mint. I didn't begrudge him that. I had 3 roommates and one came around and asked for my rent for my room. When I gave it to her, she said she would give it to the landlord...and under her breath, said "minus a service charge"...was the last time I did that. All the rest of the times, I paid the landlord directly myself.
Don't let them know if they are a lawyer. Because you can live in a place for free if you know the landlord did not paid his/her mortgage yet. And its legal. And you can go bankrupt and lose your property
I work at my brother’s retail shop. When someone came in with an unrealistic haggling. I told them “we are not a charity, and nobody open a business to not make a profit”.
I own a house and have a roommate. He is well aware how it works but he's happy to pay 500 compared to 900 monthly that he normally was paying somewhere else. It's a win win in this situation.
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What a horrible way to exploit your friends
What the hell…
You are not a friend... you are a d...
@@lukasvisby1156 He's cracking jokes. It's not exploitation. They're paying rent to live in a place and he's using the thing. They're willing to pay him rent to buy a house at no cost to him. If they didn't do it, he just do it with other tenants. It's pretty common and it's a pretty smart thing to do. The only thing that sucks is it's hard to keep tenants
@@TheJonnyhankins
It's still a difference, since the "friends" in this scenario apparently didn't know who the owner was ... which is another problem entirely if they rent the place
Exhibit A why everyone thinks landlords are d1cks
For making a profit on an investment? Lol stay in school.
@@giovalladares1022yes, exactly
*why everyone knows
This statement does no make any sense…
Go ahead.. Start a mortgage and maintain the building and take care of the tax, nobody's holding you back..
Imagine presenting this as a cool life hack and not a cautionary tale able who you move in with
Here is the thing... it's HIS house...
Meaning, you are paying rent to stay there....
So it makes sense. If it was someone else's place and he was sharing, that'd be a douche thing to do...
But he's literally just renting out the room...
@@TheDeathmail But see, it’s not presented properly. This is honestly just a super slimy thing to do. If I found out this was the case for me I would not only leave, but I would do my best to avoid that person for the rest of my life.
@@deathcon911why? Because you're evious?
If the rent price is adeguate to the market price and the living conditions are good why not stay?
@TheDeathmail what your missing is the fact that not everyone can do this. In order for him to get that mortgage he has to have the money available to pay the deposit. The renters on the other hand have no option to buy the house directly, so are forced to rent, which is (as explained in the video) more expensive than if they had been able to buy the house. The landlord here isn't renting out something that is his, he's simply a meddlesome middleman.
@Oblivi0n it's a problem because this option isn't open to the renters. The land lord here isn't just renting out his spare rooms, he has likely bought a house with a mortgage which the renters couldn't do as they wouldn't have the money to lay down a deposit. Thus the land lord here is a meddlesome middle man, doing literally nothing and yet reaping 500 dollars a month.
"This ladies and gentlemen is known as taking advantage of people and perpetuating the rental market."
I mean, he is bearing a lot of the risk. Prices crash, the unit gets damaged, the roomates turn out to be assholes who trash the place, or even they just found somewhere better or decide to take a different direction in life, and it's him who is left holding the metaphorical ball.
But yeah, it's definitely the kind of thing that needs to be entered with full disclosure from the start, not something your "friends"/roomates/room renters should discover months after.
@@fbalterAlso don't forget Property taxes and utilities, which I would gues exceed 250 USD per person.
He has all the risk. His friends could buy a house too if they could
@@nikadgod5152 If one could one could...
@@nikadgod5152 Some of the risks he would be able to pass to said roommates, such as prices going up instead. It wouldn't be very friendly of him to just pass along any such shock, mind you, but he'd be able to do so.
Although given that the whole (fictional) situation was entered under a misconception, I wouldn't call them friends either.
Warning, if you tell your roommates this they will hate you
I never expected so many likes lmao
Landlords provide housing in the same way scalpers provide concert tickets.
No, scalpers find the true price of the concert ticket. If someone is willing to pay scalper prices, then that's what it's worth. Fault the other parties for not pricing them correctly.
@@Pteromandias riiiiight, but they "find the true price" by removing all supply from the market thus making it a more expensive product.
In the same way that landlords remove the supply of housing for sale from the market thus increasing the price of housing. If all landlords sold their property then the price of housing would go down.
@@higbeez That's precisely what they do. Prices are supposed to match the number of buyers with the number of available units. If a concert only has 1,000 seats, then there are 1,000 tickets to be sold. How do you allocate them? Throw them up in the air and let people fight it out? Tell people to line up? Then you get the people who can be in a line two days early. Or you can allocate by willingness to pay. For the first ticket you charge the highest price someone is willing to pay. The second ticket you sell to the person willing to pay the second-highest price. If you run out of tickets before you run out of buyers, that means you are setting some of the prices too low.
Something is only as expensive as the highest value the next person in line puts on it.
@@higbeezAnd your example of landlords is false. Do you know what else prices do? They tell people who make the supply that people are willing to pay high prices down to the last unit. So what do they do? They make more supply. That's what's happening in real estate right now. Prices are going to crash here soon. Not because landlords are selling, but because there has been a ton of building and there is soon to be a glut on the market. You didn't need landlords to sell. You just needed a higher price to get the builders to try to capture that high price by building more and bringing it down.
I see this all the time in oil. Oil prices skyrocket. What happens? People enter production who couldn't produce oil profitably when it was $50/bbl, but can when it's $100. And when it gets there and stays there for a while, people are willing to take the risk, build more wells, and increase the supply. We saw that very thing happen a few years ago. Saudi Arabia got slapped by thousands of independent producers in the US.
@@Pteromandias I feel like you and I have different perceived goals of a healthy market. Finding the highest possible price that people are willing to pay is bad for the consumer and good for the sellers.
If the venue for a concert is slotted at 1,000 people and the cost for that show overall is deemed to be $100,000 after paying for labor and everything, then the tickets should be priced at an average of $100 each (assuming they know they will sell all tickets). Scalpers know that they can buy at this initial price point and sell it for a higher price to desperate people who want to see that show. This provides no service and does not help the people wanting to see the show. It does not support the artists providing the entertainment. It's an entirely parasitic form of cash generation.
Also your point of using high prices to incentivize more building assumes that we do not have enough housing. What I am suggesting is that there generally is enough housing in most places for each family to own a home, but having the homes only available for rent artificially reduces the amount of housing available for purchase and increasing the prices for said housing.
You agree at least partially that this is true when you say that prices will crash. The houses they are building will not all be sold or rented out because they are building too many houses and eventually we will have a surplus of housing that we will not need.
If you live somewhere where a 3bed house mortgage is less than 2k a month, no one’s gonna pay you $1,500 a month for one bedroom
It’s an example. Not supposed to be a 1 to 1 comparison
Laughs in Californian
@@darbodrake89 this makes even less sense in cali
@@timbabak3715 1500 a month is a real rent people pay for a studio with shared common area.
@@darbodrake89 yes but then your not getting a 2k mortgage in that area
This is how homes became unaffordable
This is literally how the renting market has always worked. Go outside and experience the real world.
@@giovalladares1022 renting market used to be that you'd rent out an extra home you've had for a little extra cash. Not for It to be your sole income.
@@jujubee531 no one has ever made a living from renting out a single home. Most rental properties will probably yield less than 2k profit from their mortgages. No one is living off 1k a month. Hell even 3k a month isn’t enough to live off of comfortably. You’d need to own multiple properties to have a comfortable “passive” income all while paying a property manager, taxes, insurance, any repairs, ect… you live in a socialist wonderland if you think otherwise.
@@giovalladares1022 just because that's how it's been doesn't mean it's not messed up it's just scamming honest people
@@cande231 you’re literally a child that doesn’t understand the implications of what you’re saying. You’re young and that’s fine. Just don’t be so confident in something when you literally have no idea what you’re saying.
I knew a sketchy guy who did basically the sane thing he rented a house and made his roommates pay for the property every year he said the landlord increased rent which was false. However once the roommates by mistake opened a bill from the landlord they realized what he did. He lived for free and made 500 bucks off them. They left the house as a result.
The guy was always sketch though as in high school he stole his dad's credit cards and went on a spending spree racking up 40 grand. He is 32 now and his family doesn't even talk to him.
So he’ll find other roommates no big deal.
This the type of guy to tell you the importance of hard work
Go own a house and rent it and tell me its not hard work. You have no idea what you are talking about my friend. Go pass economics and then talk.
get like 1 renter and your set for life. there was dude on facebook who happened to learn that his landlord was living on his renters paycheck to his renters paycheck when one day this dude paid probably last minute, so the bank overdrafted on landlords account and landlord complained that his bank overdrafted on his account. TO HIS RENTER.@@rooks786
he was the breadwinner in his landlords family.@@rooks786
Thanks for perfectly encapsulating how if your friend did what your landlord does, you’d hate him
I lived in a friend's spare bedroom in LA for two months and paid him rent. Should I feel like I was taken advantage of? Should i have stayed for free?
@@jonathanw1019 Was the rent 120% of his mortgage?
@@jonathanw1019you went in knowing it was your buddy's place already. If you actually watched the clip. In this scenerio, the two paying him $1500 each, were never made aware of it. And the 3 of them are living under the same roof
Your landlord is not your friend, he is a person offering a service.
@@Yawyna124 He was renting. He didn't have a mortgage. Or pay property taxes.
The internet is crazy. Its just rich people explaining how they exploit you and painting it as a good thing or a grind 💀 not everyone is 14 and falls for that
What you’re missing is that nobody has to “fall for it”. It’s just the way the market works. Most people will continue to rent whether they understand this or not.
@@zbrcht because there arent alternate options. People dont rent because they like renting, they do it because mortgages cost more than renting by a good amount. Saying that im missing something here makes it seem like society necessary needs to be structured in such a way when that is simply not true
@@raineredacted161mortgages cost more?🤔 But usually the monthly amount is less tho.
@@jakstew8168 "Nationally, the cost of owning is 31 percent higher than renting, but the disparity is greater in metropolitan areas where housing prices have surged, the report said." Just from the top result on googling which is more expensive. If you have a good source for your claim, though, im happy to look at it
Rich? Dude literally just explained how he didn't have to be rich to do it.
The guy trying to pretend like he is not a total scumbag that is driving up the cost of housing.
The comment trying to pretend he understands the housing market and not realizing it’s Democratic single family home policies that drive up the cost of living.
@@kimmiewise1044 I'm not a Democrat and don't live in a Democrat state or county.
@@dillzilla4454 I never said you were and these policies can last years to decades after a democrat has been in office. If there was ever a single democrat in office in your state or county, then you can be certain they are the reason you can’t afford anything.
exactly how is he drving market forces? he's not . what drives it up is supply and demand, he's actually making prices less by making it affordable for them to have a place to live. why don't you be smart and do the sme thing?
@@yourfriendlyneighborhoodic128 he could also, ya know, get a job? instead of living off someone else's paycheck
imagine writing and filming this, and at no point feel like a parasite of society xD
He is providing housing and with enough people doing the same thing brings the prices of renting down which an essential industry
@@christianmoore7932 he’s not doing shit
@@christianmoore7932 he does the literal opposite of provide housing lmao
@@christianmoore7932 that statment is so wrong just looking at the fucking housing market right now
@@christianmoore7932 no. He is basically hawking a human necessity. He buys it to make other people pay for it because they have to
Tell me you're a parasite without telling me you're a parasite. Oh wait...he said the quiet part out loud.
How is renting a house to people parasitic?
wouldn't you call your friend parasitic if you would learn that you are paying them 1500 a month and your other friend is also paying them 1500 and the cost with all the payments for them is like 2000 or eventually when the loans are paid , that 2000 cost for them suddenly drops to 1000 and you are still paying 1500 wither your other friend to your 2nd friend@@rooks786and since he was most likely living at same place, i dont think he gave them proper notice to visit their rooms when they were gone.
Looool. Someone who never could save up for a downpayment talking down to the people responsible for keeping them housed. Stay homeless.
People do this all the time, but you need to keep a bunch of things in mind:
1. There are other people in your house. If you're cool with this then that's fine - I don't know too many people who permanently want roommates for decades. Else you would need something like a 3-flat where each unit is separated.
2. That $500 has to go towards maintenance and potentially utilities if it is an old-school building where the units might share water and sewage, etc.
3. You have responsibilities as a landlord. If you're lucky maybe you are renting to a friend and they're fairly lenient/relaxed when something goes wrong. Otherwise if a washer or fridge breaks down you need to drop everything and get it fixed immediately. Each day that it's broken the less money your renter owes you for that month. In moar places you also just can't tell your renter to leave or move if you want to do something with the property.
4. You have to PAY TAXES on that rental income.
5. You have to be smart about things. If you are depending on renters to cover your mortgage you can end up in a tough situation if you end up with vacancies for extended periods of time. If you don't have renters for 4 months you're still on the hook for $10,000. You also have to keep the units in good shape or they become harder to rent out again.
Not saying that this isn't worth doing, but there is some real work and caveats to understand. Normally this is something that people do in their 20's or 30's and then they buy their actual home later on. Note that this works entirely different if you are renting out a place that you don't live in.
Fancy way of saying, I’m a jackass and I scam my friends.
not really. he is taking all the risk and they can always just move out if they find a better deal.
My friends would enjoy the fact that I provided them a full disclosure of what I was doing. I don't know who those people are in his life. But the way he just told them was not how I would speak to my friends. And that grin is not friendly.
Scam... Lol... You are naive
His friends are free to live elsewhere if they so desire.
@@shagunsharma6973 Not a "scam" but something really foolish. You shouldn't buy a home you can't afford on your own. This has no guarantee and depending on where you live, squatters have rights
And as soon as your roommates find out that they're being fucked over that way, they walk out and leave you holding the bag and it serves you right.
So you find other roommates lmao. This is how all rentals work
It’s not being fucked over. It’s 1 person getting a mortgage & giving a home to others for a market price. “Fucked over” is forcing vulnerable people to live in unsafe homes & pay above-market price, while threatening them with eviction. Grow up.
If room rentals in the area are 1200 a month + a portion of the utilities say 1400 How are they getting screwed over? How much is Peace of mind when it comes to your roommates? Most people would rather pay the extra 100 to stay with people they like or a landlord they believe will cut them a break if they are in a rough spot.
Besides
A) he can afford the house on his own or he wouldn't have been given the loan.
(Excluding investment loans which have higher costs but he still has to have enough of an income to cover a minimum portion of the loan payment. few years back one of the loans I was looking at, expected rental income only "covered" 70-80% and you where required to have a "holding" account with like 6 months payments and an LLC. Essentially it was an intro real-estate investor program through a local credit union.)
B) most likely they signed a contract could be a month to month but if they signed a 6 month or longer they are still on the hook for the remainder of the lease.
how are they being fucked over? he got the loan for the house, and he is giving them a fair market rate.
Lol “fucked over” they’ll probably pay more going elsewhere.
Landlords are the worst. Everything is an investment opportunity. People can't afford anything because they keep driving up prices.
Yeah maybe we should go back to Soviet Russia where they gave you a free apartment. That sounds amazing doesn’t it?
Or maybe Cuba where your land is basically leased from the government and can be seized at any moment they want.
Someone who is motivated will outcompete anyone who isn't. As they say in the gaming community, get good.
how is that different or worse than bankers? the fact that you don't mind bankers, who sit atop landlords and everyone, exploiting everyone shows your naivete
@@DarkLordJmac someone who is motivated? No. This is about money. You can have the money but you are only going to have so much
Man that's crazy. I guess if you hate landlords so much head out and spend your money on a house. Just become your own landlord if it's so easy and affordable.
Until your roommate situation doesn’t work out and you’re left with a mortgage you can’t afford
“Stop calling landlords leeches! We are productive members of society just like you!”
Landlords:
Wrong. They maintain the property. They go through the effort of acquiring tenants. You really don't know shit about real estate my friend. Land lords have to exist if you want to be able to rent a house to live in.
I've heard dishonesty is great for friendships
How EXACTLY is this dishonest?
@rooks786 Do you REALLY need it spelled out? The fact that he withheld that he was the landlord until people started asking questions.
@@rooks786 In this video its clear that he lied and said everyone was paying an even amount
Your tenants aren't always your friends. Sometimes business is business.
@@jasonssavitt5297 Okay? In THIS scenario, they are friends.
And this is why normal people can't buy houses anymore ...
Anyone can do this though
Is he supposed to be abnormal?
@@micahslash anyone with capital ... Most people don't have capital .. and the people WITH capital do stuff like this so our money builds THEIR capital and we can never improve our own. Landlording as a business is exploitation unless done ethically, and this ain't ethical
@@twit9129 I'd settle for ethical
@@micahslash anyone can mail a pipe b[redcated], doesn't mean it's ethical, moron.
That’s if you don’t mind the inconvenience of third parties sharing your space. For investors this isn’t a factor. For families it is.
$1500 seems like a lot of money for renting a single room in a shared house.
Come to London
Normal in Socal lol its ridiculous
2,500$ for 1-2 rooms in Colorado 😂🥲
@@thatzevy
So happy I live in Europe when I read this
@@thatzevy I said in a SHARED house.
It’s also known as sub-letting which can be an illegal thing to do, depending on the mortgage contract and the area you live in.
Not if you own a home, that’s for apartments and maybe condos.
@@lorenebonsu146 it could be mortgage fraud if you don't disclose to the lender that you're planning to rent all or part of the house out to others. I think they charge different interest rates depending on if it is going to be a personal home, or if you are using it to generate income
@@gwendolynhartung7424 interesting, hmmm I didn't know that. Im definitely gonna look into it then. Thanks
@@annaku_wantsnewbf Guess his roommates can now f him over for deceiving them in the 1st place.
@@annaku_wantsnewbfI'm not sure of the legality of it but, its not safe on the home owners part. If the lease isn't legally recognized and theres a problem with the tenant im sure it would be much harder to them them out. Also its beneficial to report the income and research tax benefit associated with real estate and home ownership. The home owners that do this are either lazy or ignorant.
Keep in mind that renting rooms still makes you a landlord and those people have rights and if you want to kick them out it might be super hard as long as they keep paying their rent.
Depending on your area it may be cheaper to rent a room than it would be to rent your own place.
In the UK it makes them lodgers not tenants. Lodgers have very few rights. Still makes him an arsehole landlord tho
why would you want to kick out free money? you could just move yourself out, lol.
@@Born_Stellar "free money" Tell me you've never rented out a house without telling.
@@rooks786 no, im one of the poors. however I actually follow the rental agreements so aside from owning the property my landlord does essentially nothing.
Dam, friend 1 really seems like the kind of guy who would buy his buddies beer and expect money back with interest…
Rule 1. Never live with the landlord.
Somebody tried to get my daughter to move in to a house like this. When I heard how much she would have to pay, I went online and looked up how much the house actually cost.
Turns out, one of the roomies was the daughter of the owners.
If she had moved in, she and the two other roommates would have ended up paying at least $1,000 over what the actual cost of the mortgage, insurance, lights water and internet.
I called the girl out on the scam.
The owners daughter gets cheap rent will the op daughter gets scammed higher
For those saying it's not a scam consider this, when you rent a house it is legally your residence and the homeowner is not allowed to encroach. They may not store things without your permission, they may not wander through the house without first notifying you. It is your residence.
If my daughter had agreed to this, she would essentially be paying to live in someone else's residence as a room renter. That would be fine if that's what was being promised here. However, it was not. They were saying it would be equal roommates. Obviously one person would be more equal than everyone else.
That kind of setup breeds discontent and malaise. The owners child would be on uneven footing with the rest of the occupants.
@@niceverswhen me and my daughters mom split up I rented out the 2 rooms in my condo to friends. I charged them both $500 per month. My mortgage was only $895 per month. This was in 2013. Lol no one felt scammed and I paid my mortgage and made a little off the top. I did however get drunk and pull the "I own this place" card a few times.
@@willishadams you rented out rooms in your place. They understood that. The scam was, this girl was claiming to be roommates. It didn't come out that she was the owner's daughter and getting a better deal than the other girls.
It was being offered as an equal share roommate situation.
Not a rent a room situation
@@willishadams so your friends payed you mortgage for you and you even went out of your way to get more money off of them. And then threatened them with the legal power you held over them. Even if the last part was only jovially that’s f’d up.
This is a great way to lose your friends and your money at the same time
Who said you're renting it out to friends
@@multiimediiadid you watch the video with your eyes closed?
Yup. We need to decommodify housing.
No, we do not.
Definitely not
Definitely based
@@jaykilbourne1110 are you a landlord? Are you a bank? Does your dad pay your rent? Are you a child? Are you a Robber Baron? Decommodification of basic needs is an obvious step to take.
@@chandlersohns6258 No.
I cannot ethically do this to other people and held contempt for a coworker who tried this and failed. I did not feel bad when her roomies 'somehow' found out she was scamming them.
went from being cool to being a land scalper real quick.
Remember guys, landlords are parasites
Sleep on the street or go buy your own house
@@WCGwkf i would if this parasites didn't hoggle all the housing market and inflated rents mate
Not all of them, but *definitely* this one.
@@WCGwkf Difficult when landlords are buying up all the housing and driving prices through the roof.
@@AlexConnor_ tbh, thats mostly just america. I have a 4 bedroom apartment with 2 bathrooms, balcony and everything close to the capital and its like 1000 euros a month
And this is why people call landlords leaches
The ability to rent an apartment is important to modern society. Your paying someone who took on a massive debt for the ability to live in a home without that debt.
@@christianmoore7932no, you're paying someone's debt because no one is giving you a mortgage and/or you can't afford it in the first place.
Landlords aren't soma magical creature that provides housing to us mortals, they are leeches that leverage their money to make more money off the backs of people who actually bring something to society.
You know if you have a problem with him doing that, you can take a loan to buy a house, but you don't wanna do that, there's risks involved? This is the price you are paying to him for taking the risks. His rent payments will go away if the house is vacant. But not his mortgage. You can change houses if uou loose your rental income, on the basis of your safety margin money. He has to take the risk of paying more money during period of high interest rates, versus fixed rent obligations.
@@subhamagarwal7547 how can I buy a house when land lords buy up all the property so people are forced to give them money
"house hacking", no it's a huge scam to rent out a bedroom with limited house access for 1500. Most mortgages in my area are less than 1500. Sad thing is, people will pay this, and this is just using people.
Also needs to be in your mortgage agreement that you can rent out rooms. If leasing, it needs to be in your lease agreement.
Are you really this slow? Its a TH-cam video and he made up the numbers.
You really don't understand economics in general. The way the rental market, and really any other market works, is supply and demand. You are acting like the landlords are just arbitrarily deciding the numbers. They charge what the market is willing to pay.
Is McDonalds using you by charging you 4 bucks for a 50 cent cheeseburger?
I had a buddy in a bad situation rent half my house. Things went bad fast. I ended up paying $10K from damages from him. He didnt have to pay for it but I did. Thats why peope dont rent their place for free -because people are terrible.
I bought a house and shared rooms about 5 yrs: had 3 crazy housemates, 1 couple brought kids in to occupied the whole house, 2 times had to evict them, and many times lost stuff....
There are pros and cons. If you can deal with these happily, you can continue. I'm out.😢😢😢
How to make your friends, not your friends anymore.
Make new friends
@@ElizabethUkeh so your saying, “don’t ever have friends, just have people who are ok with being lied to and have their trust broken, so that you can make money… Whoo.”
@@iceboyuno1324 I don't understand your logic. As a landlord you don't have to explain every little business decision to your tenants.
@@rooks786 yeah no, that’s true, but that’s not what was being shown in the video.
If I remember correctly, what was being showed was 3 people paying rent to an outside landlord they didn’t know. when actually one of them was the landlord and not paying at all towards “rent”. while there’s nothing wrong with this set up if everyone is actually aware of it, the problem comes from the lies, because as far as the others are aware, all three of them are paying equal rent to an outside landlord.
That’s called how to make your friends hate you
my friends would be totally okay with like what the issue
@@faizaqadirBi really hope this is sarcastic
so he rented the house
thats it, then he let his friends move in Saying they will "split it" while he contributes NOTHING to the rent and makes 500 dollars off of them A MONTH
@@faizaqadirB Not telling them that hes takimg more momey than he needs feom his FRIENDS so the he himself gets a house. Not being honest and upfront with friends is never a really good idea.
IF this is how he treats his "friends" imagine how he treats his enemies.
@@faizaqadirB "You are paying 120% of my mortgage, and my paying for this house is independent of my actual labor."
This sounds like that one drunk friend talking about how he’s gunna “buy property and rent it out” and how he won’t have to work because he’s gunna have “passive income” lmao
Well, this is pretty scummy. You need to tell people up front whether you're their landlord or not BEFORE they move in.
Alternative title: how to be an asshole and get all your friends to leave you
Calling them friends 🤣🤣🤣
i have never seen someone so cheerfully explain why they dont deserve to live
Wow man, I don't think you need to take it that far. Talk about being an ass.
Right? Imagine writing and filming this whole thing and having not even one twinge of guilt about screwing over people who trust you!
@@bluedragonfly8139 sooooooo providing housing to people for an agreed upon price is screwing people over? Lmao go back to school
@@CoralBlueNumber2Lipstick You’d call taking an extra $500 from your supposed friends NOT screwing them over?
@@Thatguy7242 for a place to stay? Do you expect them to just live there for free?
This folks is what’s known as taking advantage of your friends and this is how I don’t have friends anymore
I think the real reason reflects on your comment.
I own my house and have two roommates. Living under the same roof makes them like friends or even like my family. I charge them one-quarter what you charge them despite the fact that my house is in a very nice neighborhood in California.
Difference between being a friend living with friends and a landlord using friends as a stepping stone, I suppose.
so this is why it's impossible to buy an house in the us
According to the law in the UK, everybody within the tenancy agreement has the same legal obligation to pay rent. This means that other tenants can take you to court if you are unwilling to pay, or if you manipulate them into paying for you.
The landlord isnt a tenant. Unless you mean that the landlord would have to pay himself the third of the rental price.
House has to be zoned multi-family. Many are zoned single-family making this illegal. Unless you can find two family members to screw!!!
I don't think he would have a second thought at scamming his family.
The house doesn't have to be zoned for multifamily to rent out a room.
It might depend on where you live.
In my town the regulations are base in the amount of rooms a house has.
All you need to do is make sure is not extra cars in your driveway.
Example if the house has 3 rooms
You are allow to register 4 cars under that address
@@diaz-kasper I agree with you. In Hawaii, up to 5 unrelated adults can rent one single family home. Still a lot of “friends” to scam. However, if there family you can scam rent as many of them as you want.
Sweet home Alabama!
Landlords are leaches
Not necessarily I have known some great landlords but the problem is how many bad renters are out there. They never raised the rent but you had to pay for utilities. But renters can be the worst. One renter turns out was stealing from everyone in the area. Then one renter broke everything with a hammer. Another rubbed shit on everything. Another renter burned down there rental. That same renter caused all there neighbors to change rental properties due to there bad behavior and it turned out to be a great thing because the fire also burned down the rentals next to it. Then this one renter broke into the big house next door and moved in. Then there is all the people who break in and steal everything in a empty rental. Then there was the person who broke into different rental properties when people weren't home and lived in there house eating there food and they where a renter and a neighbor.
@@windyhawthorn7387 they are still fundamental not adding anything real and are having the renter buy the property for them
@@windyhawthorn7387 it's not about random examples of bad people but the over all class of people that are profiting from others need for housing check out second thought's channel he has s great video on this
@@technomad9071
I knew a man who did low income housing and because of him there was affordable housing in my area and even after his death it still going strong and people who started renting from him 30 years ago there rent has never gone up and never will. Because of him people who had no credit, no down payment, and a bad renting history where able to afford a place to live. And some of these people ended up buying the house they where renting or buying from someone else . Because while he had rental properties he preferred people to own there own property and encouraged it. I saw him help out young people to acquire land and even build themselves a small home.
Yes there is a lot of greed in this world that drives bad practices there are non greedy people out there making a living without having to step on people.
@@windyhawthorn7387 they contribute nothing, and I mean literally nothing, to the economy, society or wellbeing if future generations. If you defend them, I hope you get the Mao treatment too.
Basically: I'm killing the American dream by forcing others to buy it for me.
The way you put that at the end.
Paying me for the privilege of paying my mortgage” lol
I’m so confused on why everyone is so upset about this in the comments. As long as the rent is a fair price and the renters agree to be roommates I don’t see the issue. They’re going to have to rent either way. This is still equivalent to any other landlord who rents out their house, room, etc.
This folks is called being a bad friend.
The blatant disrespect for your roommates, wth
Where's the disrespect? What do you propose he does? Give them the room for free?
People like this are why the prices of houses are too damn high.
And... you survived your renters discovering this? With that self-satisfied smile? Truly amazing.
Step 1. Have shiet tons of money for down payment on house
Step 2. Put a huge down payment so your monthly mortgage is low
Step 3. Get a few sucker “ friends” to pay a super high rent
Step 4. Sit at home and do nothing
Step 5. Enjoy hell
Step 5, run when your "roommates" come after you with baseball bats
Step 6. Wonder why you have no friends after pulling this crap.
Type of person to wonder why friends don't invite him out
Sorry I can't hear broke people talking.
Imagine recording this and thinking " yea, this is something I'm proud to share!"
Except he has a downpayment tied into the house. Also you are not going to rent a place 100% of the time, tenants abuse the rules against you etc.
I thought this was common knowledge. You're paying someone to live in their house, you're essentially paying the mortgage and some extra so they make a living off that.
This scenario is worse than that. There are two land owners here. Friend #3 and the real owner who is being paid. Friend #3 is pocketing the excess cash. Without him, the two friends could've co-signed for the house and paid $1250 for rent + expenses. Friend #3 is just a useless middleman bumping up the price for no reason.
Strange definition of friendship
Should they live there for free?
surely he could have given his friends like 200 each mates rate.surely he can live with 100$ a month. not to mention i dont think he gave them notice if he visited at their rooms.@@jonathanw1019
@@jonathanw1019no but it doesn’t seem fair if they work hard to pay for the house and yet this ‘friend’ doesn’t have to pay anything, the 2 friends could pay much less if all three were paying for the house. Would you seriously not hate someone who you trusted that was taking advantage of you
Landlords are just property scalpers
Wrong. They maintain the property. They go through the effort of acquiring tenants. You really don't know shit about real estate my friend.
I wouldn’t pay $1500 for a room
This! My ex-friend tried this on me when I was in my early 20s. Brought another girl, and she had a child. Rents weren't insane then so spent an extra 100 for my place.
That’s how much a room is in a city though
@@negan4089 well I’d opt for a tent
imagine having 1500 just to pay rent.
My older brother does this. And I have to say he played it well. He rents to people not smart enough to realize they are paying off his house but smart enough they can make rent reliably and consistently
works until your friends can't or won't pay and you gotta go find a good paying job fast before you get foreclosed on
'friends', they're tenants
The key part is "hopefully cover your mortgage".
If they are your friends never tell them you are the landlord
Always request to meet a landlord for a home or duplex, ignore it for an apartment complex (
bc the scam only works if they dont find out
Or don't scam people who trust you.
Please can you create a course on this real estate, it'll be appreciated by a lot of people 😊
They shouldn’t be called “friend 1” or “friend 2” because friends don’t treat each other this shitty
Imagine buying a house, claiming it to be a primary residency and then renting other rooms…. Fraud alert!
You can rent other rooms of your primary residence. That is not fraud.
And how is it fraud? It's your house, you live in it. When I got married I didn't call the bank and ask permission for her to move in lol
if he entered into their rooms without giving them proper notice, then he broke rules.@@kstorm889
How did someone make 100% of this video without realizing the first 50% was made to make your blood boil at landlords
I really don't understand the hate for landlords. They provide a service. Believe it or not there are people out there who WANT to rent a house and not buy one.
It’s kind of a duck move, but you gotta make money some how.
job? with this modern day times thx to covid, you don't even have to live in same country to work for company.@@TropicalityCat
This is what I did two years ago... bought a bigger house, and (while i live there) rent out the extra two bedrooms to people I trust... Even with good tenants I'm basically not making anything and just covering the cost of bills as I didn't raise rent since two years ago when electric spices spiked... and they also caused a leak in the bathroom requiring a full repair accounting for over an entire years of rent for both of them.
rent total: £1200 (bills included)
gas / electric: 400
internet: 70
water: 40
misc for house monthly: 40
total costs 550 (650 left)
-40% income tax of 650 = £390...
Would you let 2 strangers live in your house for 390 a month profit, it feels like there's far more monthly degradation of the house than that covers
This is one of the best ways of investing in real estate, provided you can find 2 people you can live with, without them driving you nuts !!!
Man I love being a piece of shit to my friends!
Literally what this man just posted on main.
Pfft. It may be called "house hacking" NOW, but it's been around forever. In my day, we called it "screwing your tenants".
it's called having slaves. It's not a hack, it's predatory.
This is how you lose all you friends and die alone due to stress when your 40
Landlords don't die from stress; they don't have any. They are taking a piss easy investment because they are literally speculating with a living necessity that every person needs, don't work or contribute anything to society like the leeches they are and live stress free because they haven't lifted a finger in their life.
Active duty military, mortgage 1,450. got 1,600 housing stipend(non-taxable), rented 2 rooms out for 700 each. Both roommates also got a 1,600 stipend. Great cash flow all around
And in some cities counties and states it's illegal to charge any tenant more than you pay as the master tenant or acting landlord.
so basically you’re living off the backs of your roommates
And then your two 'friends' (in quotes because you don't do this to people you're actually friends with) leave to go rent somewhere else from someone who isn't lying to them and taking advantage of them, and let everyone know what you're doing so that you suddenly have to get a job and pay that mortgage by yourself. With no friends to help you if you get into trouble.
Every landlord will make money from the property. The only difference is you dont have a friendly relationship with the landlord
There was once a Chinese man with some good ideas on how to approach your "friend" on this subject.
I have a friend who did this. And then he bought three other houses in the same college town and rented them all out room by room. That’s how he paid off his student loans.
One of my first landlords did this. He bought a house that had three bedrooms upstairs and four bedrooms downstairs. He rented out every room for $300. Everything included, even Internet. Till this day he still owns that property and has moved out with his wife. Now he rents out all seven bedrooms for 500 apiece.😮
Thanks for highlighting why landlords are bastards
Also your advice on equity/land ownership is some of the worst I’ve ever heard
“Oh, okay, well now we’ll each pay $667 then so it’s fair”
Great move bro
They don't want you to know!
Feels illegal to know!
They're gonna take it down!
This type of thing is exactly why I started agreeing that no, actually, all landlords suck, not just the big ones. This is messed up.
Yeah...I had something similar to this. The landlord got clued in that if he rented out the bedrooms in our apt and made the kitchen, bathroom, hallways/small living room all "common areas", he could make a mint. I didn't begrudge him that. I had 3 roommates and one came around and asked for my rent for my room. When I gave it to her, she said she would give it to the landlord...and under her breath, said "minus a service charge"...was the last time I did that. All the rest of the times, I paid the landlord directly myself.
Don't let them know if they are a lawyer. Because you can live in a place for free if you know the landlord did not paid his/her mortgage yet. And its legal.
And you can go bankrupt and lose your property
And this is why no one can buy a damn house anymore!
That and corporations like Black Rock.
I work at my brother’s retail shop. When someone came in with an unrealistic haggling. I told them “we are not a charity, and nobody open a business to not make a profit”.
I own a house and have a roommate. He is well aware how it works but he's happy to pay 500 compared to 900 monthly that he normally was paying somewhere else. It's a win win in this situation.
Awful people propping themselves up
I bought my three flats like that and I am 24 years old. Now, I just bought 3800sf house in North Vancouver , renting the rooms. Life is gooooddddd
Great...until they move out, you can't find another renter and now you're 500-2500 dollars short on your mortgage every month...
Or the next tenant is less considerate