My friend sent me a bunch of really cheesy ‘millionaire TikTok advice’ type stuff. In a recent YouTube video, I give my honest reaction to these TikTok finance influencers. I initially had a feeling that I might actually agree with them, but it turns out my mate was right – many of them give terrible advice! If you are watching these TikTok finance influencers for financial advice, be extremely careful!
In the video, I review a number of these TikTok finance influencers. I highly recommend watching the full video (above) if you want to learn what advice to avoid. In this article, I will review 3 of these TikTok videos.
1. Real Estate Investment and Working Hard
TikTok Finance Influencer’s video:
“There is no reason for you to be broke in the United States. Starting pay at a fast-food restaurant is $10 per hour. If you work two full-time jobs for an entire year, you should be able to save at least $20,000 net after expenses. You do this for two years, put that money into a quadplex or a Triplex, a multi-unit building. Pay a 3.5% down payment, rent out the other rooms. In just 2 years, you can start cash flowing several thousand a month net, all from working at a fast-food place.”
My response:
I like some of this and disagree with some of it. Yes, there is no reason to be broke. But I think that the average job is so low paid now, you are not going to do it by working low-end jobs and saving. Also, often when you work hard and your money goes up a little bit, it's so easy for your expenses to go up a little bit as well. You might think you are going to save 20k, but you end up saving 4k. The better option is to find a great property deal and joint venture with someone who has money. Use your time networking, not on a second low paying job.
2. Living Trust and Property Inheritance
TikTok Finance Influencer’s video:
“I just bought a house, and I'm going to add my kids' names to it so when I die, they'll inherit it. Don't do that. Why not? If your house goes up in value, your kids will pay the tax on the appreciation. Put it in a living trust. A living trust eliminates having to go to court, transferring the property to your kids, and most of all, it's tax-free on the appreciation.”
My response:
Okay, you have no idea what you are talking about. For a start, you can't just move a property or just put it in a living trust. You are going to need a reason for the trust, you are going to need to hire experts to help you, and you are going to need to sell the property to the trust. Therefore, you're going to pay stamp duty tax again on the property and there will be a lot of expenses involved. It can make sense in some circumstances, but it isn’t as simple as this kid is making out!
3. Business Credit and Obtaining Loans
TikTok Finance Influencer’s video:
“Let's say, for example, you will get a car or a credit card in your personal name. You're personally held responsible for that. With business credit, you are not personally held responsible for that line of credit.
So let's say, for example, how I got this watch. I was able to open a business that I didn't really give a f*** about. I went and opened business credit cards in that account. I then proceeded to go on and buy this $100,000 watch. I'm going to turn around and sell it to a jeweller for $80,000 in cash, which now gives me the cash. I'll file bankruptcy on the company. I'll never have to actually pay it back.”
My response:
That's the worst advice I've ever heard! That is absolute nonsense. Do you really think that people that give out £100,000 loans to businesses would be so stupid that they would give him a loan? Remember, in his own words, he doesn’t ‘give an f about’ the business. Even if he somehow did get a loan like this, he is destroying his credibility in business by doing so!
Do Better Than TikTok Finance Influencers
If you want to do better than these TikTok finance influencers, why not join me at my next training event?
On the course, you will learn how to:
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Become a property investor using other people’s money so that you can get started straight away
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Utilise the 5 different types of raised finance so that you know exactly what to offer and when
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Find the perfect properties for the BRR strategy
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Recycle your money so that you can ‘rinse and repeat’
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Build a power team you can trust, so that you can save time and money
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And much more!
Tickets are only £1, and you can get yours here. If you are ready to take action, I hope to see you very soon!
