Pathetic Loser Borrows $450,000 To Date College Girls | Financial Audit

0:00To watch episodes of Financial Audit a week earlier, check us out on YouTube. I had an RDR8 and I lost it Someone that has a lot of debt to pay off And is about to get a car repo Because the payments are too high You seem like someone that is trying to act rich I try to sell it so that I can fund the business So why aren't you paying? I mean it was my first time doing it And you allowed as a first time to borrow 230? What the f*** is happening? I don't find it very funny That's an insane amount of debt This is a f***ing mortgage Hi my name is Jose I am 30 years old and I am based out of San Antonio.

0:34This is Financial Audit. Thanks for coming up from San Antonio. What do you do for a living? And I kind of have some information on that based on loans for businesses, but what do you do for a living? So I am a general manager at a roofing company. Okay. And what do you make in this position? Base pay is$20 ,000 a year, but commissions wise uh i made 176k last year okay how do you get the commissions uh selling roofs uh roof selling roofs um managing teams um yeah just you know knowing how to sell hyping people up being a manager getting overrides from the entire office how many hours a week you're working uh i'm i mean i don't really keep track i just do uh i don't know seven days a week i guess pretty much seven days a week yeah okay total income i only have va benefits coming in oh so that's that's completely separate um i have no other income coming in oh oh okay well that would be my income for that and then my the va would be the uh well right but i saw nothing else come in other than the va in your statements in my statements i thought i told you guys the i mean i showed you my statements for the bank statements and everything and all of that was on there there There's no payroll.

2:01How do you get paid? What do you get paid through? $10.99. ADP. Do you through ADP? Yeah. By check? Physical? No, direct deposit. It's in the bank savings. We'll look. Yeah, it's in the bank savings. We didn't see them. Which bank? Bank of America. Okay. I'm taking an actual look right now. But we only had VA benefits of$3 ,700 coming in. So what did you serve? I was in the Army. Okay. and what are the benefits? So with 100 % disability, you get... Why do you have 100 % disability? I get panic attacks. I have knee issues, lower back issues, shoulder issues. What do those other ones stem from? I had some issues in the military.

2:53I had a... Man, you're about to... But I wasn't expecting this. Really? Yeah, I wasn't expecting that. Okay. I ask about anything. So I want to know because pretty almost every veteran that has come on this show has essentially some form of disability. It almost feels like is there anyone that doesn't? So I didn't deploy. Right. I didn't deploy. Mine came from. I'm just going to say abuse. Oh, yeah. I used to be 120 pounds when I was in the military. How heavy are you now? 200. Oh, I'm a bodybuilder now. So I got a lot bigger and I, you know, learned how to fight. all this other stuff but um essentially uh at the time i was you know a little bit under yeah 120 pounds uh so i was very easily taken advantage of i'm sorry i'll say that so no that's horrible it is what it is it's fine uh it's it's not it's not fine but um i appreciate your honesty and that is that's up yeah and i'm glad you're getting help for that it is what it is honestly like dead ass like it's just it it's it happens things happen it is what it is you know if i if i stay stuck there then uh i don't move forward are we in therapy uh no i'm not in therapy no well no any reason uh i try to avoid people as much as possible before i'm very anti-social like even here i'm just sitting here like you know like shaking and stuff for no reason like it's just it just comes from it that doesn't stop me from doing leadership skills when i need to and I can switch that.

4:24I can turn that on and off. How many people do you work with in this job? About 15, 20. That's a lot of people. Yeah. Okay. No, we only had an online banking transfer from another checking account come in 3 ,737 in the Air Bank of America. Yeah, that would be the military. We have nothing else. I can. Okay, well, I can definitely collect it up for you. We've scoured and we've looked and we've controlled F and everything. There's no way. You got somebody that needs some glasses back there. I guess. Yes, and we all have them. We're nerds. If I pull up that same checking account, it'll say in the last 12 months, this amount has been deposited in that same one.

5:03Okay, does it say deposited from where? Or just deposited in general? It just says deposited in general. My producer almost wants me to pull, well, he wants me to pull out the statement to shove it in your face because he spends so much time on it. But we'll get there. We'll get there. The thing that interests me the most is i mean we have a business loan a business loan of 232 351 dollars but you're working as a general manager so or are you doing okay you're picking it yourself i'm good i'm telling you it's one of those things i'm fine i'm fine um keep going okay i just i want to make sure you're good yeah 232 351 dollars yeah so yeah i have a business loan and uh doesn't sound like you're working in this business um so truth be told my issues got in the way of it the issues that we discussed yeah okay got in the way of it and i found myself hiding at home a lot too much was it like like a phobia almost yeah it's like you know if whenever i need to get out of it i can but i would stay at home as much as possible and and just stay away from all of it as much as i could not realizing you know how bad things were getting because in in like the business side of things you don't really see uh profit margin stuff for like three months down the line right so when you catch something it's kind of too late and then we try to fix something it'll still take another three months on top of that to try to fix it so it just became like a huge snowball effect that just kind of yeah so where is whatever that was now um well uh you know i spent it trying to you know fix the business so okay so how was the money that you borrowed reinvested into the business so that's a lot of money 232 000 351 yeah where did that go what's the business so uh the business is within in construction completely separate from my my my main job that was with a done with a partner of mine which uh really so there's a partnership involved as well yes he fronted the money uh for that business so more money on top of the 232 yeah so you find much he funded 70k up front of his own money um why'd you guys need so you weren't funding the construction through the orders of the construction project through the contracting projects yeah it was i mean we i mean i kept my main job completely separate from the business no i'm talking about in in this business if there was a project did you guys charge nothing up front so because it sounds like you were just funding everything so it's insurance work uh so a lot of a lot of money um was lost in the process from the sales managers not doing their job properly and me on top of that not managing properly and over how long were you not over a spam of about a year a year this much debt in a year yeah so it's pretty bad so essentially um the you're 61 days late yeah and over what are you doing so with insurance what the f*** is happening so i don't find it very funny that's an insane amount of debt this is a f***ing mortgage it's a nervous laugh it's a nervous laugh don't it's a cope laugh okay this is but this is a this is a that's a mortgage man yeah for sure so as many of you know before i started this youtube channel before I started running this business, I was in a lot of debt.

8:36It was overwhelming and it is one of the main reasons I started this channel, to share information with people and tools that can genuinely help them find financial freedom or build businesses. For me, the most important thing was making a plan and creating a way to track my progress. So I did what many people do. I took notes on my phone or created a spreadsheet, but my plan always fell apart. I needed a way to organize my entire life. My finances, my personal life, my business, all in one place. I'm sure a lot of you can relate. And what I found is the easiest, most effective way to organize your life is the sponsor of today's video, ClickUp, which I personally use.

9:16ClickUp isn't just the tool I use to manage budgets or my business. It's the tool that holds me accountable and allows me to make a plan and act on it. And that is the number one thing I want for people who come on my show. I want them to be able to create a plan to live a better future and get it done. That's why I recommend ClickUp. ClickUp is the ultimate productivity tool. It's the one app that can replace all your productivity and reminder apps. With ClickUp, you can create folders for all of your projects, drag and drop checklist boards, collaborate with partners, set reoccurring reminders, track your time on various tasks, manage calendars, and leverage a whole suite productivity tools and templates created by experts.

9:58Lately, I've been using ClickUp totally for free, by the way, to manage my upcoming filming schedules. And I've got everything organized from budgeting the finances to content planning and filming schedules all in one place. And they have a ton of easy to use budgeting templates. So here's what I want you to do. Go to try ClickUp.co slash hammer and find the personal budgeting template that is right for you. I'm excited to see how ClickUp can help you in the same way it has helped me. Now, let's get back to the episode. So how it works is with insurance deals. Let's say you have, you know,$10 ,000, right?

10:33Insurance will only give you about 20 % of the entire thing up front. Now, grab that 10 and multiply it by two or three. In a project? Yeah, per project, right? Cost$200 ,000? No, no, no. It's like 20, right? It's like 20. Okay, then what the f***? I still don't understand the 230 allocated. Within 10 projects, you're at 200K. Within 10 projects. Or you're doing 10 at the same time because if you're completing some of the other projects, you get the rest. That's not how it works, unfortunately. I wish that's how it works. So essentially how it works is you get paid a certain amount up front. So it is, you know, if the job is, you know, 20K, sometimes they only give you 2K up front out of that 20 ,000.

11:08Up front. But you still have to, yes, 2 ,000 out of 20 ,000. When you're done, then what? Then after we're done, then we have to tell the homeowner, hey, tell your insurance the job is done. And then insurance, you know, we'll give you the rest. Well, there you go. You weren't doing 10 at the same time. The problem is homeowners stopped answering the phones or they would keep the text. There has to be some legal ramifications you can pursue. There is. It's called insurance fraud. And I have about 17 homeowners being sued at the moment. How are we finding that? Okay. Credit cards. Well, first of all, that seems like a lot over the course of a year.

11:42And if it is so common that you've been able to stack up 17 in just the course of a year, then every contractor in the world would essentially be suing basically 17 homeowners a year for insurance fraud because that seems like a beyond significant amount unless you were just irresponsible and horrible at communication which contractors are known for in general the the communication part but i don't know it seems like you're well above the norm or else everyone else will be suffering this and there's a lot of contract there is a mix of a lot of things that went south that's just one of the things that went south along with probably i would probably bring up probably like five other things how much is od right now uh 130 000 okay well but that right now doesn't that covers half of this yes so what else then so i had a manager that was pushing jobs through that were unprofitable and that were profitable so that he would hit his quotes his monthly quotes so he would get bonuses right bonuses from you yes from the from the company well when did you start learning that because that's something you should be able to see if you're doing your books well that that's the thing i i mean it was my first time doing it so i wasn't doing very good like running a business like that and you allowed as a first time to borrow 230 well not me but the company that you know i can get the materials and stuff from oh wait this is a loan to the materials company itself like an internal loan so so essentially i have different loans one i have the sba loan right so that's right there is like 130 000 then i have the construction company that gives us our materials which is like 230 000 on top of that and then i have some other stuff as well that you know just adds to it so this is all in material costs is 230 yeah it's all material costs that's all material and you guys were taking a lot at a loss so that he could hit his bonus quota yes the problem was i wasn't realizing that oh it has to be like half yeah and then the other half they just weren't they were just committing insurance fraud yeah so i yeah so i have uh actually just had a couple people served this week about it so so using four different sources from national insurance crime um and a contracting research site in the field that you were in specifically and the law said as well, it's very uncommon that roofing contractors have to take illegal action against homeowners for this.

14:15So there has to be more than they were just throwing out. So, I mean, again, there's still more to it on top of that. So on top of this, our out-the-door expenses were$20 ,000 a month, like just to operate, just our operating expenses. When you look at a job, let's say$100K, our profit margins was really low. about 25 percent percent yeah about 25 percent okay well i mean when we're talking in the world the punches of thousands though it's not the worst but remember so let's say you have 20k just to break even right no i i understand okay you're only going to get 25 000 but you only get you only get uh what was it um 20 of that 100k up front well especially when you're completely mismanaging the finances and having bonus structures that don't make sense so it's after if after four months you collect 25k out of that 100k but per month you have to spend 20 000 in expenses you know yeah you would need a lot of startup capital but you did get 70 000 to start no that was just to that was just you're essentially oh it's almost like funding purchase orders so it was a franchise so it was a construction franchise so i got um yeah so So they required me, one, I had to get the SBA loan for$130K just to pay the franchise.

15:32And then we had to pay$70 ,000 up front just to get the franchise. And then on top of that, they wanted 6 % monthly of our gross revenue, of the gross, on top of that. So it was a very, very, very... How does any franchise survive in this? That's the thing. Right now, obviously, I can't disclose the specific companies or anything like that. But out of eight Texas branches, six have failed. And I'm one of them. And they were wondering why. And now they're being sued by a lot of other business owners.

16:11But you've transferred those skills, I guess. Yes, I definitely have. And learning lessons. Yes, I definitely have, for sure. I wouldn't have the knowledge that I have now if I hadn't gone through that, which now I can go in the future and turn it into something else or redo it myself without having a franchise. All right, so materials,$232 ,351.03. What's the interest rate? Do you know? It's pretty high. It's like 12%. 12 % on$232 ,000. It's fucking insane, dude. Yeah. looks like you owe like 10 000 a month yeah so you just haven't paid that for now let's let's backtrack a little bit now let's say let's make this worse right i'm gonna oh sure why not let's make let's make this worse right so let's say we have you know reps that are selling and then you have a bad month right let's say you need a break even at 20k profit a month right so obviously you have in that in the construction industry okay construction industry let's say the reps are selling things right but reps and just you know the office the business itself isn't selling as much construction as it should to break even well now next month you need to make you know 26 000 in profit to to cover the previous month's losses well what happens when you have three months back to back and now you know for a fact failing business exactly now you can't have it's it's what are you trying to say what what i'm trying to say is you know before you have to hit 150k a month in sales to break even and make some money well if you have one bad month now the next month you have to hit you know 175 obviously and that's why a lot of businesses they again need startup costs it takes a while for it to be just you know month over month making profits like that so there are months that are kind of like a loss leader almost yeah for the sake of the business like that's not uncommon yeah so within the first year we you know yeah but you guys were funding it via horrendous debt yeah and then you just couldn't keep up with your minimum monthly payments instead of like an investment into the company or taking on smaller scale projects to start instead of trying to start so big that it was one year and you had how many reps about 15 about 15 per month buddy usually i think you just started too big yeah you went into a business that required having like almost hundreds of thousands of dollars coming in and out of it constantly with nothing and no ability to sustain that because even still if you're doing a heavy investment month for whatever reason for you know big payouts in a couple months okay maybe you're taking a loss for that month but a business that is coming in to be successful would have what is necessary to weather a year yeah of like solid losses yeah so we did not and then just a horrendous bad debt to start okay what do you think your financial situation is overall for you zero to ten ten being the best zero being the worst personal or business that's i feel like you in general because this is still tied to you right that's the problem the problem is whenever we started it i tied my personal so you personal guarantee so now it's affecting me personally yes you um yeah so i would probably say like like a four, four out of ten, maybe five.

19:38And I'm only saying that in the middle, just straight down the middle. I'm going to say middle because I'm good. A failed business that you still owe$232 ,000 to 12 % on that you are behind nine to 12 months. Okay, great. If you want your hammer financial score, it's free. Link in the description below. Also, if you have interesting stories for what it's worth, this is at least an interesting story. Interesting financial situation that we don't get to take a look at often. So I really appreciate that. Feel free to apply to be on the show at CalebHammer.com And give the guests some love for being on here.

20:09Jose is putting his s*** out there. That's really brave, so make sure you're giving the guests some love. Why are we so late on this? Because technically, you wouldn't have any money left over really, but technically you are making enough to pay this. Well, we kind of panicked. okay wait what was your equity position so he put 70k down he put 70k down and i put zero down i owned 80 of the business he owned 20 did you say 80 okay yeah 80 so i owned 80 he owed 20 but he didn't have to do anything besides pay those is he on any of the debts uh no he's not okay so okay so you feel morally responsible for any of the debts 20 of it i he doesn't feel morally responsible for any of it okay besides or is he legally he feels like he's entitled to his 70k back um well he's not uh probably i mean i understand he wants it back i'd want it back in my defense you know i lost a lot as well what'd you lose well you're a dad uh i lost my i had a second home that um that i lost second home yeah i had a second you had two homes yeah two homes But you couldn't fund a business.

21:24What was the value of the second home? It was his idea. What was his idea? His idea was he had a bunch of money sitting around. So he just wanted to invest. Yeah. He wanted to put it into some brick and mortar. Yeah. Okay. What was the second home worth? And you had to foreclose on it? Yeah. Oh, my. So I sold it to. Well, I didn't get foreclosed. I sold it to try to fund the business to try to help it. Oh, you didn't lose it then. but i understand i lost it in in your head and then on top of that what did you sell it for uh

21:56equity wise it was what did you sell it for i'm trying to remember i can't remember when was it about a year ago but i do not know what you sold it for okay what did you walk away with fine i didn't walk away with much it was only like 40k like 30 30 or 40k that's not horrendous okay Well how long did you own it? Two years Okay see that's not horrendous Out of all of American history Walking away with 40k after all expenses And then I lost my car I lost my other car that I had I had an RDRA And I lost it I tried to sell it so that I could fund the business To help it You seem like someone Is that an expensive watch?

22:39No it's not You seem like someone that is trying to act rich uh an audi r8 yeah i had an how much is that what was the purchase price it was it was 96 i'm gonna punch you and then you'd kick my butt come on that's that's crazy in what world were you able to well i was good before this what was good before like my finances and stuff was good what's the second home was it a vacation home uh no it was in san antonio as well and i rent yeah and i rented out i rented it out uh by by the room so it increases profit margins by about okay well you still walked away with the profit did you pay taxes on that yes i did okay but i owed taxes which is why i owed a bunch of money and then i don't even get me started on like solar panels on that home are you oh my yeah so i had solar panels on that home my profit was going to be about 75 or 70 and then i owed taxes and then i owed like apparently uh whenever i signed for solar panels on that home they put a lien on my property and i didn't know i didn't know they told me that they told me i didn't have a lien on the property and i did and i didn't find out until two years later they didn't tell you there might be some legal shady yes i i but also you signed the contract but then again where you let it straight i don't know there's different things did you talk to a lawyer yeah yours it was 90 000 yes uh 2023 audi r8 no no no no no 2023 it was 2014 2014 audi r8 i was gonna say because that goes for 160 Gen 1.

24:04Gen 1. You can see them all over the place, man. Yeah, so I was doing really good. Honestly, I was doing way better before I even took on this venture, and I highly, highly regret taking the venture. But at the same time, by taking the venture, I opened up a lot of skills and stuff that I can use. The thing is, I actually love the idea of people that are entrepreneurial. I'm an entrepreneur. You're entrepreneurial. I love the idea of trying. It doesn't work. Try again. you're hundreds of thousands of dollars into debt for that this is following you along this isn't you just trying something and then you can try the next thing i don't care that you sold the car sold a business people do that in the business world the fun business okay that's that's you taking a sacrifice sacrificing something and you're reinvesting you're hundreds of thousands of dollars so okay we need to continue going through these documents i want to hear though because obviously it failed when did you determine it's failed we're no longer going to borrow money to fund it well if i go if i'm gonna backtrack back in october back in october yeah back last year yeah last year back in october of last year i saw a big you know a big like downfall i guess of sales we had three months back to back with like really why really bad sales like it like uh it's a mixture of a lot of things it's a mixture of you know people were answering doors we had a we didn't have enough enough reps at the time um people weren't sticking with the uh the um what was your cost to run the business at that time month same thing 20 20 000 and then one of those months we only did 20 000 in sales so like just one of those months alone so three months back-to-back losses yeah okay yeah and then i took a loan should not be the end of the business by the way well i took a loan i took a loan uh and it was the next loan yeah so i took a$50 ,000 loan, which I already paid off.

26:01Sorry,$25 ,000. $25 ,000 or$50 ,000. Okay, so that funds the month. So it funded us for a while, and then once January, February, March hit, we did really good. We did pretty good, close to$200 ,000 every one of those months, but all that money was used to pay off the loan. That got us. Yeah, no, you locked yourself in that cycle. Again, that's why we don't scale a business to where it costs so much until we are ready to support that for a year of assuming no revenue. You need a full year's business emergency funds set aside. Yeah, we didn't have that. We just got no shit. Like raw dog. Yeah, and look what raw dog did.

26:35You got pregnant with debt. Like, this is what happens, buddy. Pull out method, my man. Yep. Well, eventually you did. Well, I want to hear about that. What was the pull out of the business? When did you guys determine, okay, we're done? Wait, wow. So we're talking January, February of this year was successful. This is so recent. Okay, and then? Well, the problem with that is, remember, to get the money back is it takes about three to four, sometimes even six months before you even see the profits. Sure. But you said you used that to pay towards the debt. Yeah. So we were neutral at that time.

27:09Well, neutral with the loan that I took on in October and I'm still back in the same spot. Yeah. Okay. So go on. And so from there, because I was so far behind in this construction business, I was so far behind on everything. I wasn't being able to pay anyone. They pretty much kicked me out of the business, of the franchise, the construction franchise, the franchise, the business itself. The business, the overarching business. they probably usually in franchise agreements there are legal rights where if you know based on performance they can kind of take one of their partners so i owed money to their partners and you're not supposed to fall behind you owed money everywhere yeah well i mean that's a 230 that that's that that was their partner which is you know their construction material company was their partner with them so they have people start the franchise and then buy from them yes all their business thing yes so because they were partnered with them i think i guess well mcdonald's kind of does that in a way so it's not yes it still sounds weird but because they were partnered with them and we owed them money and we owed way too much money and they knew we weren't going to be able to pay it back they gave us the notice of hey you have 30 days to pay back 230 000 or you're or we're shutting your branch down yeah why don't you sell your first house and i'm glad you didn't i think but well that's my primary my primary is protected oh but why didn't you yes i'm just saying why didn't you try to come up with the funding via because at that point i knew it wasn't going to work out okay good yeah yeah which that's fair i'm glad you didn't get into like any kind of sunk loss type of mindset yeah okay so what is this next one that is at current balance of 149 955 we're talking hundreds of thousands of dollars that's the sba loan that that was given directly to the franchise to open up the business.

29:03So this is the initial. So you started going in with that heavily. Yeah, SBA. And a lot of people do open with an SBA loan. A lot of people do. It's not uncommon. A lot of businesses, a lot of small businesses, but it's not how I'd go. Yeah, so right off the bat with the SBA loan, right off the bat, I think it was like$2 ,000 something a month that we had to pay for that. but then i you know found out that it was like an increasing depth as well that if we don't pay off it would slowly start increasing in the amount of payments you mean if you don't pay it off is what you said yeah if i don't no no no so like so for example so it starts lower and it goes higher to give you a chance for the business to get off the ground so it's an accelerated loan exactly Well, it is$70 ,000 less than you took out.

29:56You took out$220 ,000. It is$149 ,000. Are you paying on this? I stopped paying on it because there's no business, so I stopped paying on it. Well, yeah, but it is money you owe. Yeah.

30:10So why aren't you paying? I'm trying to figure out what the next move is and what I have to do. What I have to do. So right now I've been looking for like jobs and things like that on the personal side, obviously, because business is no more. So right now I'm trying to, you know, get a different job that pays more, which I've had success with. So you're trying to get a different job right now. Moving on from your 176, what were you going? So same thing in the roofing industry. And I have a couple of job offers already in mind that pay a lot more. What's a lot more? What are you going to make? Well, my base pay for this business was$20 ,000.

30:46And I have a couple offers for$50 ,000 base. And then I have one for$80 ,000 base pay. Yeah, but how's the commission, though? Because you're at$176 ,000. The commission is way better. And it would be for a regional manager position. Wow. Essentially overlooking all of Texas. Okay. Well,$2 ,232 a month. What's the interest rate on this? On which one? SBA. I'm not sure. I have no idea on that one. Neither am I. I just know the payments are like$2 ,000 a month or something. $2 ,230. $2.91, yes. So you sold your car to pay for the business. Now, San Antonio, it's not necessarily a car, or it's not necessarily a public transportation city.

31:29You definitely got to have the cars around the highway. Do you have a car? Yeah, so I have other, I mean, I have other cars. Other cars? Cars, yeah. You have all this stuff, and you have cars. What do you have? Well, I have a car that's completely paid off. What? I was advised not to sell it by my lawyer, so I'm not going to sell it. I have a Porsche that's paid off. You talked to your lawyer? Wait. Yeah. Wait, is that in the episode or? What? Wait, what? Yeah, yeah. So I have a car, right? That your lawyer told you not to tell me? No, no, no. Not to tell you. Not to sell it. Not to sell it. Oh, why?

32:01He told me to hold it for a year in case I want to do bankruptcy. So he said hold it for a year. Okay. Okay. So what Porsche? How much is it worth? So it's worth about 43K. It's nothing crazy. It's a Porsche 2019 Cayman 718. Sure. Okay. And then the one. Living like you're rich. And then the other one is a Tesla Model Y. But that one I definitely, definitely want to get rid of for sure. Do you owe on it? Yeah. I owe a lot on that one. I don't think I have a statement for that. Yeah. I believe I gave it to them. Or sort of how much I owed and everything. So you're getting rid of this. What's your plan?

32:41Now, legitimately, guys, I believe that you, everyone in your life, everyone around us can actually take control of their financial future and make their lives better. And we've spent over a year here creating tools to help make those goals a reality. Right now, our budgeting program and investing program are bundled together at a 15 % discount and you get$100 in cash gifted to you right into your Moomoo account. There's honestly no time like the present to actually take control of your future. Don't wait. Don't let this opportunity pass you. uh so the plan i spoke to my lawyer and i told him what the plan was on it and essentially for the 2023 model y whenever it first came out it was about 50 53k yeah and then elon musk kind of shot all of his prices down yes and now the same exact car is like 30k so okay so what i was planning on doing was because i use that for work and i use it for tax write-offs because you know uh electric and then i just connect it to my house so i can write off my electricity um essentially the plan electricity well you know what i'm trying to say okay uh essentially well maybe another one get another one this literally the same thing same year same even lower miles except for 28 000 30 000 and then let them take that other one let them take that yeah let them take the repo yeah repo that one yeah what are you do you have any responsibility or like morals of borrowing in your life why it's tesla it's fine they'll be they'll be fine they'll be all right they'll be all right they barely just started making a profit like a year ago i mean but even still that's not what it's about it's the fact that it just the way you're living life is just like you borrow debt then you never pay it it's just so weird well i mean i've never been in this position i've never actually been in this position so you are and you're doing it still now that's your action that you're gonna do get a 30 000 amount of why yeah and even by the way i'm surprised your tax guy didn't recommend like a model x or something because you get uh because it's a certain weight class that you get the write-off like a lot but yeah but the model x is also a lot more it is a lot more expensive so i don't want to do that because right now for the model y 23 with which the loan is 52k i pay 100 a month for model three the sorry the model y right that i got in 23 so you have a loan you're gonna get a repo you're still gonna owe money on it though because they're gonna sell it you're gonna owe the difference yeah um i haven't gotten that far yet so i mean that's a pretty important part of the process i'm still thinking of what to do right well there you go either way though i still need to get rid of that model y and replace it with something else because i can't i can't work in you know roofing with a porsche so i need to get rid of the y though because of how much it costs it costs 800 a month and on top of that elon prices on the car so how much is owed on it still Like$50 ,000,$49 ,000.

35:34When did you get this? Last year. Oh, my. This has been a weird year for you. Yes, it has. So either I need to get a cheaper one or cheaper older one or a truck instead. Why don't you sell your Porsche and pay it off? Because I can't sell my Porsche. Oh, well, your lawyer just wants you. Yeah, I can't sell it. I would, and I would do that, and I would split it into two lower cars or get a much cheaper car and then use the money to invest or pay something off or something. but he didn't recommend doing that. Oh, this is a mess. Yeah, he didn't recommend doing that because of the situation I'm in.

36:06He said hold it for a full year. Oh, man. Okay. Let's see if this Tesla's in here. I don't think I saw it, but okay. We have an Amex business, Platinum. I mean, new charges,$20 ,000. Wait, why? I thought the business was done. No, I still have. so I have to close out quite a couple jobs and stuff and obviously I don't want to screw any customers over. I already asked this but you did not answer. When did you decide the business was done? July. Okay so basically right now. Yeah July. A month ago? June or July. It was either June or July. One or two months ago. Okay wonderful. Yeah. Oh you owe$5 ,983.87 on it.

36:55Interest rate is probably like 30 % right i don't even know what the minimum is because it doesn't say i'm not too worried about the credit cards because i still like i said we still have to collect quite a bit of money from customers and some of them have to collect and some of them are willing to you know to pay up and stuff okay you know that yeah that makes me so confident some of them are willing to pay well yeah that's why the other ones are getting sued of course yeah now any kind of uh legal process in the United States is kind of slow. Yeah. Unless they're just trying to like, oh, I got sued.

37:28Let me take care of this. Demand letters. When did you start suing? This month. At the beginning of this month. I just started sending demand letters. I have one that I already said they're going to pay and they owe$16 ,000. And they already said they'll pay. But now they're giving me attitude and saying they want a judge to tell them to pay now because for whatever reason. Why don't they feel they owe you? I have no idea. He's saying that he never got a copy of the contract, which is bullsh** because whenever we sign a contract you literally rip it and give them the copy. There you go. So you have the copy.

37:58Yeah, they have a copy of the contract. Well, you have a copy. Yeah, I also have a copy. As long as you have a copy, show it to the judge. And we've already showed it to them. And they're like, well, I didn't get anything. And I was like, well, that's bullsh** because your name is right here. And you signed here. So that's just, again, that's just one example out of like 20. Where does the money come in? Because again, we didn't have money come in. What do you mean where does the money come in? all those you paid 14 ,000 to the 20 ,000 last time where does the money come in because we didn't have it within a month are you talking about where does the money come in how do you get the money from customers check it goes into the bank account why aren't we seeing anything I don't know it should be there everything should be on there I'll give you all my personal and my business oh I know it doesn't make sense for me to certain other checking account because your bank of america statements do not show deposits there should be two bank of america statements there should be a personal one and there should be he's now triple checked it um do we have two bank of america's he's i might have to pull it up on my phone then so i can show you buddy old pal i don't think you know your money at all because this is a mess and I was going to say go through our budgeting course because you get it for free and you probably should for your own life but this business thing is beyond that because we know it's not a business budgeting course it's a personal finance course they're bundled at a lower price by the way now 15 % off check it out in the description but this is wait this is a business thing why are we having Prime Amazon okay and yeah gas station going out to eat Uber more Prime kreo restaurant poke yeah this is dave and busters dave and busters haka haka hoka hoka more prime let's let's say movie rentals uh prime video prime video prime yeah there's a lot of job stuff there's a lot of stuff that is business things there's a lot of lows in there's yeah and there's indeed and zen business sure one i'm curious how much you actually need we don't know what's in these purchases but two well why do we have like prime video and well um that's also a long that's a long story but uh well tell it well um so so my girlfriend lives at home and with me so so we live together and i have her i you know i let her use the cards and stuff whenever we need it so there was one business card yes but i lost so i lost the cards right i lost my my card my uh my my other my personal card so i only had that one available so we only so we had to use that one so and it took a minute to get it back so that's the long story yeah it's pretty much yeah and again through here it's hard to know i i do get it when business grows and you had 15 people it's like it is hard to remember every subscription you have for the business i actually yeah i actually have no idea how many subscriptions are out there so what no you're not tracking no i'm not tracking at all like because i realized a few months ago But we realized, oh, you know, over this last year as we've built so quickly, you know, we've just added these different business subscriptions.

41:15Now we have it all laid out and how much they cost, like all tracked. Why haven't you taken the time? So my plan was to cancel all of my credit cards and just get new ones so that whatever is, you know, monthly subscribed, just obviously cancel so that it can't be paid just because there's so much stuff out there in different accounts on different cards that I generally don't know what's on what card at this point. Oh, we counted nine subscriptions, totally$208. $205 ,054 a month. $208.54 a month. Okay, that's not that bad. It's not that bad, but you're in business debt, and your business doesn't make any money, so I don't know what the fuck you're talking about.

41:49It's not that bad. I have a recoup plan. Huh? I have a recoup plan. You know, get a job. Okay. So far, mission accomplished. I'm not seeing any progress. Well, I mean, I haven't started working yet. I'm still working on it. You know what I mean? What do you mean? You said you're making$176 ,000 a month or a year. Oh, yes, yes. the f*** are you talking about sorry I got distracted I was thinking about something else what were you thinking about um I was just trying to figure out like I was still on the conversation about the cards and I was still trying to figure out like what happened with the cards that's all okay I don't think you're a credit card person I'd use a charge card like the fizz card or business versions and then okay here's American Express gold Okay, so the gold is my personal.

42:37Okay, well, this one's paid off. Yeah, the gold would be my personal. That's the one that's... It's paid off, but salon, studio, sushi, tea, Starbucks, sushi bar. Someone that has a lot of debt to pay off and is about to get a car repo because the payments are too high. Spending a lot of money on bullshit. That would be my girl. That's not me. Is salon in there somewhere? Yeah. Yeah, that's my girl. What about the rest? Salon was one thing. and then I said and then La Madeline and Regal, Kubner Instacart, Instacart, Subway that's her first of all this is your f***ing money and you're in this debt what are you talking about why are you allowing this then why isn't she spending her money she's your girlfriend she's not your wife treat her sure if you can afford it but you can't you have debt so what are you doing you're about to get a car repoed so what are you talking about that f***ing girl it's not a f***ing valid thing what do you mean it's your money yeah that's true no you're right no you're right um so what is going on then why why is this a thing well i have the mentality that i'm going to come back from it pretty quickly uh as far as the business stuff goes no i i don't know i need to figure out then come back from what then on the big if not the thing the personal side the personal side personal side isn't crazy personal expenses all that stuff but first of all a hundred dollar car payment you can afford that with your income yeah so i don't know what the you're talking about come back from what your debt your business debt is the crazy thing yeah So what are you coming back from?

44:00I guess I'm looking just to reset everything and just start over, I guess is what I want to do. I want to just wipe everything off and have a plan. So bankruptcy. I don't know what to do. Yeah, bankruptcy, I guess, would be the... But when? Because you're holding the Porsche for a year. But when's a year? A year would be next March. So we're holding on to all this until bankruptcy next March, hoping that no one comes after us legally? Well, I've already been sued by one of the companies. And? And we have 30 days to at least respond to the lawsuit. When did you receive notice? About 15 days ago.