I Found The WORST Financial Advice On TikTok
Published: 2023-01-23
Status:
Available
|
Analyzed
Published: 2023-01-23
Status:
Available
|
Analyzed
Predictions from this Video
Incorrect: 0
Prediction
Topic
Status
Rental arbitrage via Airbnb can be profitable with the right structure.
"I know a few people who have done this successfully and if you have the right structure in place it could actually be quite quite profitable."
Pending
Airbnb regulations in many cities pose a risk to rental arbitrage businesses.
"The difficulty however comes with the fact that Airbnb is not guaranteed and there are a lot of cities who now want Airbnb shut down entirely if you don't live there as a full-time resident."
Pending
A single new ordinance could instantly shut down an Airbnb rental arbitrage business, leaving the operator responsible for lease payments.
"all it takes is for one new ordinance to pass and then all of a sudden overnight your entire business is gone while you're still on the hook for making lease payments to the landlord"
Pending
While lucrative, rental arbitrage carries the risk of significant financial loss.
"it can be quite lucrative if you find a landlord who allows you to rent their home on a short-term basis but you also run the risk of going deep into the red if something were to happen"
Pending
A $12,500 renovation is unlikely to significantly increase property value without significant DIY effort.
"a twelve thousand five hundred dollar renovation is unlikely to go very far unless you do a lot of the work yourself"
Pending
Typically, renovation costs should yield a 2x to 3x increase in property value.
"generally the cost of a renovation should increase the value of a property by double or even triple of what you spent depending on what you're doing"
Pending
A $12,500 renovation is expected to increase property value by $25,000 to $35,000 at best.
"in this case a 12 500 renovation should increase the value of the property by probably about 25 to maybe best case scenario thirty five thousand dollars"
Pending
A TikTok suggests that by owning an S-corp, all personal purchases can be classified as corporate expenses to avoid taxes.
"if you start an S corporation and you own 100 of your S corporation that you can buy everything that you own under that S corporation and then you don't pay taxes on anything that you purchase because it's considered a corporate expense"
Pending
Deducting personal expenses through an S-corp while working a regular job is tax evasion, carrying a potential five-year sentence.
"you can't just work a normal nine to five job start an S corporation and then begin deducting your personal expenses to lower your taxes otherwise that's considered tax evasion with a maximum sentence of five years"
Pending
Top performing crypto TikToks often promise unrealistic returns like 1000x and quick retirement.
"the tick tocks that do best promise a quick retirement 1000x returns and easy money"
Pending
Total stock market index funds are considered the safest investment, with an average annual return of approximately 7%.
"the safest invest typically revolve around total stock market index fund which generally returned about seven percent a year"
Pending
Real estate investing is potentially great but demands significant effort, a high barrier to entry, and a stable income.
"real estate could certainly be fantastic but it requires a lot of work it's a high barrier to entry and it helps to have a very stable income"
Pending
Starting a business is demanding (24/7, inconsistent) and rarely allows for the lifestyle of traveling and working from a beach.
"a business could also be fantastic to work on but it's 24 7. it's extremely inconsistent and it's almost impossible to get it to the level where you could travel the world and work from a beach"
Pending
Financial advice content on TikTok is improving and encouraging more people to consider various financial options.
"it is getting better and it seems to be moving in the right direction for just getting people to think about different options"
Pending
Increased financial success requires more work and entails higher risk.
"anything you do is going to take a lot of work the more money you make the more risk you take"
Pending