Cullen and Katie: Shifty eyes and constant lies | Part #25

[snowyday54]

Didn't anybody notice that in the last video Katie slipped up and said that Gaines was annoyed when the cleaners would have to come? Um, are we all be taken for a ride here? Is this just BS that they are struggling? Because you do not hire cleaners when you can't pay your bills. Insanity.

[chloe6124]

Didn't anybody notice that in the last video Katie slipped up and said that Gaines was annoyed when the cleaners would have to come? Um, are we all be taken for a ride here? Is this just BS that they are struggling? Because you do not hire cleaners when you can't pay your bills. Insanity.

I have said that all along. No one continues to pay for a private school, after care, and tithes that much when they can’t make their house payment. I have thought they were exaggerating too.


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[HelloSweetie]

People who overspend absolutely would continue to spend on things like this. That’s why so many “rich” people still end up declaring bankruptcy.

It isn’t people making $40k a year calling into Dave Ramsey. It’s most those making $80+ a year because they overestimate what they “deserve” and how far their money will actually go.


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[honeybear]

I think once they sell their house they will be able to pay off their debt

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[rosie_dalia]

I think once they sell their house they will be able to pay off their debt

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No, they will still OWE money on the house after they sell. They bought the house for $640K and it's now listed for just $599K. That's a major loss considering they haven't been paying much off—other than interest. Plus, they also have to pay the 5-6% in Realtor fees and often other fees at closing.

I doubt it'll even sell for $575K. They made a massive mistake with that house. If they could afford it, it would be wise to just stay there. They are definitely losing money selling this house right now.

I did the math awhile ago and they didn't reinvest all their earnings from selling their old house on the downpayment for this new house and one of their mortgages on this house is REALLY just interest payments. They are in deep doo-doo.

[lmmomSD]

I think once they sell their house they will be able to pay off their debt

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Not bloody likely. They're upside down-- they owe more on the house than it's worth. They are probably going to have to bring cash to the closing. They've already dropped the price way below what they paid for it.
They'll be lucky to make anything off the sale. I honestly don't think they are going to make a penny. And if they don't make anything and have to bring cash to the closing, they won't have anything to pay their debt off with...

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[lmmomSD]

I think once they sell their house they will be able to pay off their debt

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No, they will still OWE money on the house after they sell. They bought the house for $640K and it's now listed for just $599K. That's a major loss considering they haven't been paying much off—other than interest. Plus, they also have to pay the 5-6% in Realtor fees and often other fees at closing.

I doubt it'll even sell for $575K. They made a massive mistake with that house. If they could afford it, it would be wise to just stay there. They are definitely losing money selling this house right now.

I did the math awhile ago and they didn't reinvest all their earnings from selling their old house on the downpayment for this new house and one of their mortgages on this house is REALLY just interest payments. They are in deep doo-doo.

We must have been typing at the same time!

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[WatchinTheWreck]

I think once they sell their house they will be able to pay off their debt

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No, they will still OWE money on the house after they sell. They bought the house for $640K and it's now listed for just $599K. That's a major loss considering they haven't been paying much off—other than interest. Plus, they also have to pay the 5-6% in Realtor fees and often other fees at closing.

I doubt it'll even sell for $575K. They made a massive mistake with that house. If they could afford it, it would be wise to just stay there. They are definitely losing money selling this house right now.

I did the math awhile ago and they didn't reinvest all their earnings from selling their old house on the downpayment for this new house and one of their mortgages on this house is REALLY just interest payments. They are in deep doo-doo.

I agree! I think they will be lucky to sell for 550. They are going to have to get a loan for what they will need to bring to closing, and they probably won’t qualify for that because of their credit. They are screwed.

[rosie_dalia]

I think once they sell their house they will be able to pay off their debt

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No, they will still OWE money on the house after they sell. They bought the house for $640K and it's now listed for just $599K. That's a major loss considering they haven't been paying much off—other than interest. Plus, they also have to pay the 5-6% in Realtor fees and often other fees at closing.

I doubt it'll even sell for $575K. They made a massive mistake with that house. If they could afford it, it would be wise to just stay there. They are definitely losing money selling this house right now.

I did the math awhile ago and they didn't reinvest all their earnings from selling their old house on the downpayment for this new house and one of their mortgages on this house is REALLY just interest payments. They are in deep doo-doo.

I agree! I think they will be lucky to sell for 550. They are going to have to get a loan for what they will need to bring to closing, and they probably won’t qualify for that because of their credit. They are screwed.

They really are screwed. People can see it's been on the market for almost 9 months and that the original price was FREAKING $695K!!!!!!! They've dropped the price $100K and that would send me red flag signs as a potential buyer. Dropping the price that much would make me think the house has issues—like mold.

[FakingIt_MakingIt]

Selling the house is not going to fix their mess.
First of all, they’re going to loose a significant amount of money. Nobody is interested in buying a huge, dated, needing completely updated home when they could spend far less, in the same neighbourhood, for WAY better of a home. They’ll be lucky to offload that house and not have to bring money to close.
Secondly, they’re not even currently budgeting their mortgage into their monthly budget. It’s $3400. There is NO way Katie will settle for a small, cheap rental. I’m sure they’re going to look for a new build to rent and I’d be shocked if they get away under $2000 in rent each month. IF they even can get a rental. Their credit has to be shot. And they don’t have first and last and damage deposit. Katie can back track and claim they have savings but come on, if they did she would have spent it on Christmas gifts rather then sell computers and other junk. Let alone use that savings to PAY THE MORTGAGE. There’s no savings account.
Thirdly, apart from the house they have over $80,000 in debt. Debt that as long as they have to make a mortgage payment isn’t getting touched. Its not getting lowered at all while they own that house or from the sale of that house.

They made a poor choice in buying that home. All for Katie to keep up appearances with her family and YouTube friends.
At this point they’d be better off to sell the suburban and take that $900 a month and put it on the mortgage and stay put. Try in a few years to sell, update the appliances during that time and pay more then interest only like they have been. At least then they could walk away from closing with some cash albeit still loosing money overall.

[MilkingTheClicks]

In this last video Cullen seems to really grasp they have no money and can't afford anything. Katie is still talking in circles. So if this is all fake Cullen is a pretty good actor.

They have new mech coming out soon so the viewers can help pay off their debt. Who buys this stuff?

[MilkingTheClicks]

Selling the house is not going to fix their mess.
First of all, they’re going to loose a significant amount of money. Nobody is interested in buying a huge, dated, needing completely updated home when they could spend far less, in the same neighbourhood, for WAY better of a home. They’ll be lucky to offload that house and not have to bring money to close.
Secondly, they’re not even currently budgeting their mortgage into their monthly budget. It’s $3400. There is NO way Katie will settle for a small, cheap rental. I’m sure they’re going to look for a new build to rent and I’d be shocked if they get away under $2000 in rent each month. IF they even can get a rental. Their credit has to be shot. And they don’t have first and last and damage deposit. Katie can back track and claim they have savings but come on, if they did she would have spent it on Christmas gifts rather then sell computers and other junk. Let alone use that savings to PAY THE MORTGAGE. There’s no savings account.
Thirdly, apart from the house they have over $80,000 in debt. Debt that as long as they have to make a mortgage payment isn’t getting touched. Its not getting lowered at all while they own that house or from the sale of that house.

They made a poor choice in buying that home. All for Katie to keep up appearances with her family and YouTube friends.
At this point they’d be better off to sell the suburban and take that $900 a month and put it on the mortgage and stay put. Try in a few years to sell, update the appliances during that time and pay more then interest only like they have been. At least then they could walk away from closing with some cash albeit still loosing money overall.

That is a great idea. It would free up 1/3 of the house payment (if you add in insurance + gas + tags) and they won't have an excuse to keep it because the house is off the market.

[FakingIt_MakingIt]

Also, will there be a penalty for getting out of their mortgage early if the house sells? Here in Canada there would likely be a penalty for paying the mortgage out before your term is up. So for example most mortgages are 5 year terms, if you sold your house anytime in that term you could roll it over into your new mortgage (porting I believe they call it) or pay the early exit penalty. Depending where you’re at in the term it can be quite hefty.
Is that a thing they’re going to have to consider since they’ll be renting after?

[lmmomSD]

Selling the house is not going to fix their mess.
First of all, they’re going to loose a significant amount of money. Nobody is interested in buying a huge, dated, needing completely updated home when they could spend far less, in the same neighbourhood, for WAY better of a home. They’ll be lucky to offload that house and not have to bring money to close.
Secondly, they’re not even currently budgeting their mortgage into their monthly budget. It’s $3400. There is NO way Katie will settle for a small, cheap rental. I’m sure they’re going to look for a new build to rent and I’d be shocked if they get away under $2000 in rent each month. IF they even can get a rental. Their credit has to be shot. And they don’t have first and last and damage deposit. Katie can back track and claim they have savings but come on, if they did she would have spent it on Christmas gifts rather then sell computers and other junk. Let alone use that savings to PAY THE MORTGAGE. There’s no savings account.
Thirdly, apart from the house they have over $80,000 in debt. Debt that as long as they have to make a mortgage payment isn’t getting touched. Its not getting lowered at all while they own that house or from the sale of that house.

They made a poor choice in buying that home. All for Katie to keep up appearances with her family and YouTube friends.
At this point they’d be better off to sell the suburban and take that $900 a month and put it on the mortgage and stay put. Try in a few years to sell, update the appliances during that time and pay more then interest only like they have been. At least then they could walk away from closing with some cash albeit still loosing money overall.

That is a great idea. It would free up 1/3 of the house payment (if you add in insurance + gas + tags) and they won't have an excuse to keep it because the house is off the market.

But they won't. Just like getting jobs, they have dozens of excuses not to sell the Suburban. It's been suggested multiple times.
They're not being logical at all. They're approaching all of this from an emotional standpoint. Katie even said it was "hard" selling the golf cart because she and Gaines were "emotionally attached to it". A golf cart. I have a couple of items passed down from my mom that would be difficult to sell. That I could understand
But a golf cart? Give me a tiny break.

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[rosie_dalia]

Could the house be "owned" by their business (LLC) to protect their personal credit? If they bought the Suburban as a business car, I could imagine they'd also but the house as a "business house."

I think if they did buy the house via the LLC they have some sort of extra protections. Maybe that's why they haven't seemed too panicky about selling until really recently.

[fossilfinger]

Also, will there be a penalty for getting out of their mortgage early if the house sells? Here in Canada there would likely be a penalty for paying the mortgage out before your term is up. So for example most mortgages are 5 year terms, if you sold your house anytime in that term you could roll it over into your new mortgage (porting I believe they call it) or pay the early exit penalty. Depending where you’re at in the term it can be quite hefty.
Is that a thing they’re going to have to consider since they’ll be renting after?

I've never heard of that penalty and I'm in the US.

We bought a house and sold it only 1.5 years later and there was no penalty.

[GigglyMint]

Could the house be "owned" by their business (LLC) to protect their personal credit? If they bought the Suburban as a business car, I could imagine they'd also but the house as a "business house."

I think if they did buy the house via the LLC they have some sort of extra protections. Maybe that's why they haven't seemed too panicky about selling until really recently.

Yes. I think that’s why the house and car aren’t calculated into “their” monthly bills because the business is paying for them.

[FakingIt_MakingIt]

I don’t think the house is in the company name... none of their budget makes sense though. They’ve repeatedly said the credit card is in the company name yet that minimum payment is in their personal budget. The credit card should be coming out of the company account before wages are paid but they’re paying it out of their wage.

[GigglyMint]

I don’t think the house is in the company name... none of their budget makes sense though. They’ve repeatedly said the credit card is in the company name yet that minimum payment is in their personal budget. The credit card should be coming out of the company account before wages are paid but they’re paying it out of their wage.

Yeah but I don’t think that matters. The business is them. Part of all this should be meeting with an accountant who could help them sort out things like that.

[FakingIt_MakingIt]

I don’t think the house is in the company name... none of their budget makes sense though. They’ve repeatedly said the credit card is in the company name yet that minimum payment is in their personal budget. The credit card should be coming out of the company account before wages are paid but they’re paying it out of their wage.

Yeah but I don’t think that matters. The business is them. Part of all this should be meeting with an accountant who could help them sort out things like that.

They’re not going to take advice from anyone. Katie is a number loving nerd who knows all .

It matters because the company is a separate entity. Business debt should be paid from the business budget, before taking a wage. If there isn’t enough to pay payroll then they’ll need to get other jobs to pay personal debt. One floating budget, sometimes including company debt and company money doesn’t work.
They need to separate the business from personal. 2 separate budgets.