Video Closed Captioning:
good morning good afternoon good evening
folks michael’s uber one rental at a
time back with the tv star great real
estate investor mom all-around good
person laura morby how you doing laura
you’re doing great how are you doing i’m
doing very very well so one of the
things that i thought we would talk
about in our second conversation today
is debt
obviously there’s the whole good debt
bad debt discussion
uh but one of the things i think that’s
often missed in the debt discussion is
debt is generally speaking the way most
rich people got rich whether it’s
starting a company uh buying real estate
doing all of these things it’s obviously
you’ve got to be
safe debt
uh but yeah it debts powerful kind of
both positive and negative so um when i
bring up this kind of debt conversation
what do you think about
um i mean i i
i guess i’ve seen both sides of it but
i’ve seen during the last recession the
people that
had very little they you know they
weren’t no matter what happened they
were fine so if you had a car paid off
if your house was paid off to a certain
level that your payment was fine
in full
because a lot of people
you know structure
a lot of people only end up only one
home and then
these people that have their house paid
off are usually people who have been
there 20 years and they you know did
something where they you know paid a
hundred dollars extra towards principal
or payment at half or whatever they
could do
um
and those people seemed to be during the
recession it was like oh my gosh you
guys are so smart look at all these
people losing their homes and they’re
getting their cars repossessed and
um
again this goes back to what you just
said it depends on good and bad debt so
the people that were losing their homes
were the people that were overpaid
they were at the top of their
um what they could afford and so yeah if
a spouse or a significant other loses
their job as well or something happens
then you can’t afford it so all of a
sudden you’re losing your house or
um you bought the house and then half
the value went away and now you
purposely are just not making your
payments because you’re upset
um
a lot of stuff like that happened where
it’s just kind of ignoring
the fact that they got a bad moon in the
first place or they were
living at the top of their knees when
they shouldn’t have
so people like dave ramsey like push
people to
you know
not have any debt that’s bad you should
if you can’t pay it in cash then you
shouldn’t buy it
and
you know i think that creates a lot of
people who are afraid
and of course anything that’s fear-based
isn’t right but yes you like you have to
like no if you were waiting until you
have cash to go make any sort of move as
an investor you’re never gonna make it
um
and you might but you might only get one
deal done or you can go get you know
utilize other people’s money you know
opm that’s a whole thing you know
um it doesn’t even have to be a private
investor it can just be getting a loan
so then you can go get into the game and
as long as you’re making
a smart financial decision and you’re
not getting a bad loan product you
should be fine yeah
yeah when i think about debt you know i
think there’s a couple of things first
and foremost i don’t think enough
families talk about money in general and
very few even talk about debt
right they talked about income right i
think more i think right we’re coming up
on the holidays i would challenge
listeners here to talk about money and
debt and things of that nature interest
because you either use interest or you
pay interest right and um you know there
are lots of safe ways to do it but again
kind of dave ramsey point i think
there’s a lot of people
the majority i’ll say it this way right
so greater than 50 really should focus
on paying off their debt because they’ve
they’ve kind of just racked up
bad debt and they don’t even know it
right i remember the first so i was i
went to
i remember my first day at santa clara
university i was getting my books and i
was walking up to get books at the
bookstore and there were these tables
and of course i’m just gonna say what it
is there’s a bunch of pretty girls there
uh you know
giving away stuff and i’m like i’ll go
stand in line to the pretty girls and
credit card stuff
so of course i
don’t know any difference i had a job i
had some income right so i filled that
application lo and behold got my first
credit card
right i never never talked about it with
my mom or dad i just it was just yeah
it’s just um
we we’ve gotta we have to talk to the
next generation
about debt credit cards income taxes
uh i don’t know was it talked a lot
about in your family because it
certainly wasn’t in mine
um
yeah because um
i mean i’m probably more of a unique
situation because my mom my dad ran
you know multi-million dollar
construction
oh cool
and my dad did have an office when i was
really young but then
my dad just had me so late in life that
he was in a different season of his life
um by the time i started to be 10 11 12
where i was paying attention
and
also it was during a time where stuff
was switching to the internet and
switching to computers and away from
facts and in person and stuff and so
there was a lot of things that i think
my sister and i got involved with
because my mom was involved or because i
needed help with technology
and so like i was involved in
life insurance conversations and getting
health insurance quotes and um
uh osha reviews like i was a part of
like
some pretty interesting stuff so if i’m
a part of that of course i was a part of
conversations about taxes and write-offs
and
um
you know
my dad buying another work truck for the
year to you know offset some of his tax
liability stuff like that so
um but also my parents weren’t
my parents my parents came from nothing
their their parents were incredibly poor
my mom grew up in a garage like
they lived in a two-bedroom house and
six kids and all the girls lived in the
garage
and my dad grew up in a trailer park in
like
the worst town in arizona i don’t even
want to tell you what it is
so they had no concept of
um
you know how to invest properly and so
my parents made a lot of terrible
decisions they lost
almost half a million in the stock
market they invested in an airport here
in town that went nowhere and lost like
almost a million dollars doing that so
just like stuff that like
and i i talked about my dad the last
video building a spec house and losing
that and so they made a
they tried
but i was also a part of like different
investing conversations and like why did
you do that and
i don’t know so it’s it’s interesting
because i have some aspects
of them
where i’m like my dad always makes a
joke when he makes money it’s burning a
hole in his pocket like he’s got to
spend it yeah and my dad loves
beautiful homes and nice fast cars and
stuff like that and my mom loves to shop
and so like there are some things that
i’ve had to be like that wasn’t
normal
and it’s fine when money’s fine
but it’s not fine when money’s not
overspending no concept of a budget
and bad investments
you know like you can recover really
easily when you’re just bringing in a
ton of money but
if
if something’s going on with your
business or something’s going on market
you’re in trouble so
i experienced a lot of ups and downs
because of that
that’s
it’s
i love the fact that and again you bring
all of that history and experience to
what you and your husband are building
now
yeah um so it’s
obviously your your oldest son how old
is he again your oldest he’s 14 you just
turned 14. yeah and you were bringing
him i remember we had a conversation
probably six months ago about him rent
or owning i think a dump truck i
remember that right uh trailer or
trailer yeah yeah dump trailer right so
again just getting involved in the
business and having him now probably
file taxes this year if not this year
next year so
it’s just you’ve got to you we we we
need to talk about money more
i agree
right
the good and the bad because again my my
childhood was yeah i’m guessing we had
the we didn’t have as many ups we had
lots of downs i mean i remember a
recession in the 80s early 80s
um
you probably weren’t even born yet but
anyways early 80s
my dad was unemployed for nine months i
had to get i had to go get a job as a 12
year old right to put food in the fridge
so um
yeah money
my biggest memory of money is if you
have it you’re happy if you don’t you’re
you’re angry right
it was very
there was no middle ground
so yeah just do i want parents to
realize your kids are watching right my
mom my mom did a great job to try to
shield us from that but you can’t shield
your kids from your parents fighting
about money
so have the conversations talk about it
and it’s interesting that you brought
that up too because even though your
parents didn’t necessarily involve you
in any of these conversations
um kids watch you they
are learning about how to act and how to
their relationship with money
um
you know even if my parents didn’t talk
to me about it i would
i mean i wouldn’t have as good of a
understanding of what they were going
through
but
um
i
my attitude towards money and how i
spend money and how i save money and
budget stuff is
um
how i started is because i watch them i
watched how they lived life i watched
how they spent money i watched how they
acted so it’s one of those things where
it’s like yes you need to have a
conversation
too but like you also need to
be aware that your
habits and your attitudes towards money
um whether you talk about them or not
are going to affect how your kids handle
money yeah your your kids are watching
whether you like it or not they’re
watching some of my some of my memories
about money as a kid where a my i
remember my mom having a big old thing
of coupons
right literally cutting up newspapers to
say i mean
that’s one of the reasons i don’t do
coupons today because no i’ll pay the
extra 50 cents i’m good
it’s like ah coupons i remember fighting
i remember i remember one time during
because again i lived through inflation
yeah uh which again we’re feeling now i
remember her in her checkbook i remember
looking at the line or maybe it’s just a
visualization i have it’s like she’s got
87 bucks left and she has three bills
left to pay and she can’t pay them all
because everything’s going up and the
income’s not there and
inflation is a tax people you don’t get
it inflation’s attacks
and um
yeah
i don’t feel good about where we’re
going folks talk about money it’s the
holidays you’re going to be home with
your kids hopefully you’re off work you
get time to enjoy it talk about money
taxes
investing because if you don’t they’re
watching
they’re they’re learning anyways and i
think it’s fine too like i’ve had
conversations with asher where i’m like
this was a mistake and here’s why
i do the same thing um
i mean obvious
i’m in charge of teaching him how to
manage his emotions and talk to people
and stuff and there has been times where
i emotionally reacted incorrectly
and it doesn’t even have to do with him
but because he was around i will 100
when it’s over be like that was not
handled correctly i didn’t do that right
and here’s why and here’s how i should
have acted here’s how i should have
approached it
because that’s like anything that you’re
doing they’re learning so i think the
same can be said for money like if you
if your kids see you racking up credit
card debt and you can’t even stop
yourself
then at least tell them that what you’re
doing is not right you know you don’t
have to like obviously crap all over
yourself but um yeah i think it’s
important too to acknowledge mistakes um
and i think that’s one of the things
that my parents did and why
um
like my parents weren’t like that was a
genius idea i mean obviously we had
conversations about why they thought it
was a good idea
um and like jokes and stuff like you
know the money burning a hole in my
pocket and stuff so
um but yeah there was no like
there was honest conversations about
mistakes as well which i think is really
powerful too because those are sometimes
life’s greatest learning lessons because
life isn’t always perfect you’re not
always going to make the right call
um
but yeah yeah i think that’s really
important
yeah folks again your kids are watching
the last thing i remember about uh you
know at money is i remember
hearing the phrase robbing peter to pay
paul
where you pay one bill and you let the
other one slip and then i remember i
don’t know if they do this still but the
envelopes coming in different colors
like white then pink than yellow than
green right based on how many months
you’re late yes folks they used to use
different color envelopes when you were
like well that’s embarrassing i did not
know that yes they did yes that’s
horribly embarrassing oh my gosh yes oh
we got no pink ones today
oh my gosh i had no idea that would be
so embarrassing especially when you’re
going through a bad time it’s like you
don’t need anybody else to like
like you know you know you’re losing
sleep over it you don’t need your
neighbors to see a mailbox full of peak
envelopes there you go oh
yep
so laura if somebody wanted to buy some
real estate in arizona or just reach out
to you and follow you how would you like
them to do that um my instagram is
lauren warby no spaces there you go
thank you very much laura thank you