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Guys, are you ready for some money rehab?

Wall street has been completely upended by an unlikely player, GameStop mean and should.

I have a know girl, you think.

The whole world revolves around you and your money?

Well, it doesn't charge for wasting our time. I will take a check like an old school show.

You recognize her from anchoring on CNN, CNBC, and Bloomberg. The only financial expert you don't need a dictionary to understand the cold lapins.

Today's listener intervention is with our very own producer, Mike Costcarelli. Mike, welcome to money rehab, although you're always here, so, like, what's up?

Hi, Nicole. Thank you so much. First time caller, longtime listener. I've been looking for an apartment. I live in New York City. I currently live in Brooklyn. I live with a bunch of roommates. And my plan was to now that I'm making enough, I mean, we're all rich working on this show. I figured it was time to move out, stop living with roommates, get my own place in a really, that's like a big milestone. And it's pretty hard to be honest, just based off of price and everything like that. This is such an expensive city to live in that you have to be making a good amount of money to really take that chance unless you do the smart thing, which is what our other producer, Morgan did and live with a know.

But this is a really good next step to getting a partner.

Yeah, the upgrade of having your own space and your own place because, yeah, for me, I don't want to say anything. Everybody's choices are their own choices. But for me, I feel a little bit like a bum living with three other guys still. That's how I feel personally now. That doesn't mean that everybody feels that way. And I understand I'm not coming for anybody. That's just how I feel.

You're not a bum for doing that, but from a lady perspective, and I'm going home with a dude, having some other roommates is less appealing.

Yeah. And I do think, frankly, if you are in a situation where you find somebody that you begin to like and hang out with, it is hard to be taken seriously if the reality of your situation is that you still live with a bunch of guys. And I'm in my think a woman in her 30s, when she's dating somebody, wants to see that a guy kind of has a plan to get the hell out of a situation like that. And it's just I don't want to live amongst one of my roommates. Spends every morning an hour and a half in the shower. That seems unnecessary. I don't like living with that. I don't like waking up and wondering if I'm going to be able to brush my teeth before this guy gets into the bathroom, because otherwise I'm going to have to wait until noon to do it. I really wanted to stay in Brooklyn. I really love Brooklyn. I have a car. It's not really easy to have a car in Manhattan just because of the parking situation and everything. And Queens is just, there's a stigma with living in Queens. It's just not as cool as Brooklyn.

And I'm a cool guy, so that's where I want to.

You are?

And I thought at the price point that I have entered into that I would be able to really have my pick of a pretty nice apartment almost anywhere in Brooklyn just because I figured know I have never paid even remotely close to this amount of rent that I'm willing to pay. And I was just wrong. Completely wrong. I couldn't be farther from the truth. Currently it's a market for people that are renting and not for renters. There's not a lot to rent.

Yeah. So what have you been spending on rent?

$915 or something on rent.

Okay.

Morgan just made a face. And that's because I live with three other fucking people.

Morgan did not make a face.

No, Morgan made a face like, wow, 900 something dollars.

So now you have increased this budget threefold or more?

Yes. I'd say, yeah, a little bit more than threefold, baller. Yeah, our show is very.

I mean, yes, we're nominated for an Ambie guest. Damn it.

That's right. And we're going to win it.

Yeah, we are. Yeah. And you've gone through your own money rehab. Everybody is winning here. So you're looking for a pad, sweet solo pad in the city with what, 3500 as a maximum budget?

As a max. When I started the search, I thought that 3500 was going to get me like a beautiful. I was like, I'll go to 3500 if I see a 1200 square foot apartment somewhere in downtown Brooklyn where I really thought that that's what that was going to get me because I just figured that much fucking money, that's what you'd get. But now I'm learning that 3500 is apparently not even really that much, which sounds insane to me. I told my mom that I was looking at apartments for that price. She said it was like $1,000 more than her mortgage. Granted, she lives in New Jersey, which is still expensive, but it's more smelly and not as fun. So that's sort of the payoff that you can live a little better in a place where that's not New York City. But when you put it in that perspective, it does seem kind of crazy that you're going to spend that much money for something in a neighborhood that these neighborhoods that I've been seeing for less than a thousand square feet, it seems a little nuts.

It does seem nuts. So you went out to look for apartments and you then realized that $3,500 would get you, what, depending on where.

In the city, it could get you a two bedroom, but it's a two bedroom. That's really a one bedroom with this little wall that they just put up. So it's the same amount of space as just kind of like a normal sized one bedroom. I like my neighborhood right now because there is a neighborhood feel. I kind of have my normal coffee shops. I have my normal restaurants. I know people in the neighborhood.

Okay, so you found a place that you can walk to get coffee from. So you said you drafted an email that you were about to send and then you pasted it in the text. And then I looked at it and it felt so. It had a lot of exclamation points. Wait, did you write that or did Morgan write.

I wrote it, but I think because I spend so much time with Morgan and read so much of her writing that I've caught exclamation point fever.

Yeah, that's that's true. I thought it could have been Morgan because you don't even put exclamation points when you're chatting girls. You put. You put exclamation points. You're very exclamation point happy. It's like, hey, I love this place. And then I took out the exclamation points, I scrubbed them, and I was a little more aloof. It wasn't like, this is the only place. I tried to make it say, like, I'm looking at a lot of places. There's a lot of inventory on there. This is not special. Okay, so read me the whole thing. You have it in front of you.

So we are emailing a Woman named KAtrina. Hi, Katrina. Thank you for setting up the tour. I'm looking at a few other similar units today in the area, but I'm interested in seeing what more we can do to make apartment. I'll keep that blank. The winner. I am ready to move quickly. I have noticed that there is quite a lot of inventory at the building and that the unit previously rented for approximately $3,400, which was true. We did research on that. If we could come in there with the application fee waived and the building amenities included, I could be ready to move forward immediately. Considering the fact that the Avalon is billed as a building with views of the Empire State Building, this is an equitable offer for a third floor unit that does not offer what is marketed. Looking forward to continuing the conversation to make this a win win and a smooth process for everyone, I am available between time and time today to discuss further. Regards, Mike.

Right. So I wanted you to research how many units in that building were available. Because then you're getting into their psychology of them needing to get to their quotas or whatever they have as a bigger building and a bigger company or management system. And also that you should not come across as thirsty and put out a negotiating offer because a negotiation is a give take give take dance. And so if you say that you want your application fee wage, which was like, what, $20 or something like that, I looked at the website and the amenities. I mean, that was a throwaway thing. They are going to feel good if they can cross something out, if they can be like, okay, well, definitely no on this. We'll see what we can do on this. So when you go in with something that you don't really want and you hope that they're going to cross that out, that actually is what happened. They're like, we can't move on this. Which is what I was expecting. Because they're a corporate type operation. You're not dealing with some dude who's renting out his apartment. And so they said, we can't do anything on that because they're rules follower type people.

But they didn't respond to the 3400, which was where it rented before. So you didn't just pull that number out of your ass. It was what you researched the apartment had already gone for.

That's right.

And then I told you not to put in the longer lease negotiating chip because you could use that later on. So the latest is that you called, which I told you to do this weekend, but you have shit to do, dates to go on and things like this.

Yes.

So it wasn't in the top of the priority list. Fine. But you then ultimately called and you, what, asked for a manager?

Yes. And they just said, put an application in. But the price is the price.

Did you put the application in?

No, because I can't afford these apartments now. And I'm also just kind of soured by this experience, and it's making me not as excited.

Wait, you can't afford the third floor one?

The third floor one was the one I liked. No.

Right. So what's the problem?

Yeah, originally it was over my budget. Originally. That's why I was trying to negotiate it down into my budget, because I was willing to hit the top of my budget for that because it was like 700 and something square feet. It was pretty big.

But you need to put the application in, dude, because they're not going to negotiate with you before they know you're qualified.

Is that what it comes down to? I have to put the application in and see?

Yeah, because they have to run a credit check and stuff like that. So they can't negotiate before they know if you're qualified to even move in. So you should have put the application in.

I didn't know I was supposed to do that.

Do that, like, ASAP. What do you mean?

I didn't want to put the application in for that price, because then I thought that that would be the price.

No, they need to verify that you can afford it first. If I'm a landlord, I'm not going to negotiate with any schmo off the street. I want to make sure that you have money.

Yeah, that does seem to make sense.

Get your fucking application in, Mike.

Okay.

Hold on to your wallets, boys and girls. Money.

Rehab will be right back. Did you know that even if you have a retirement, you can still have an IRA? Robinhood has the only IRA that gives you a 3% boost on every dollar you contribute when you subscribe to Robinhood Gold. But get this now through April 30, Robinhood is even boosting every single dollar you transfer in from other retirement accounts with a 3% match. That's right, no cap on the 3% match. Robinhood Gold gets you the most for your retirement thanks to their IRA. With a 3% match, the offer is good. Through April 30. Get started@robinhood.com. Boost subscription fees apply and now for some legal info. Claim as of Q one 2024, validated by Radius global market Research. Investing involves risk, including loss limitations. Apply to iras and 401 ks. 3% match requires Robinhood gold for one year from the date of the first 3% match. Must keep Robinhood IRA for five years. The 3% matching on transfers is subject to specific terms and conditions. Robinhood IRA available to us customers in good standing. Robinhood Financial LLC member CIPIC a registered broker dealer as a small business owner myself, or as I like to call it, a pre big business owner, I know how critical hiring is to the success of a company.

And when you have a pre big business, hiring isn't just adding a new employee, it's adding a new family member. The problem I run into is that I don't have the time or the resources to give hiring the TLC it deserves. That's why I love LinkedIn jobs. LinkedIn isn't just another jobs board. LinkedIn is a vast network of more than a billion professionals, which makes it the best place to hire. It gives you access to professionals that you can't find anywhere else. LinkedIn does all of that while making the process easy and intuitive. Hiring is easy when you have that many quality candidates.

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Apply.

Now for some more money.

Rehab two weeks later so did you apply? I did apply. I got approved.

Yay.

But part of the issue was that they have this sliding price scale, which I've talked to a handful of people now, nobody's ever seen something like this before, but when I saw the apartment that I wanted, it was listed at 3600 for the month per month, which was a little above my price range. That's like the whole conversation that we've been having. And the whole reason why it felt necessary to try to negotiate a little bit of that off the price. And after I had selected that, I wanted a March 1 move in date. After having seen the apartment a week and a half prior to putting the application in, the price went up $200 a month for the apartment. So it went from 3600 to 3800 in less than two weeks.

Why?

That's just the way their scale is. For whatever reason, their system is in this building. I won't name names in New York City, but a building in Long Island City, in Queens, in New York has a scale that it just, every single day the price increases a little bit, whether it's $35 or whatever. So by the time it got to the application being approved, it got raised to 3800, which obviously I could not afford.

So wait, the scale, is it also depending on what day you choose to.

Move in, it is, but it's obviously more expensive. Basically, if you make the choice to move in tomorrow, you get it for the list price.

Did you ask them what the scoop on that is?

Yes, they couldn't give me an answer. I tried to ask them because I asked the woman on the phone. I called them, I did everything. I emailed them, I called them. I finally got somebody on the phone once the application was approved and was in. So once I got approved for it, I basically said, guys, so this price obviously can't be the price, right? Because I saw it at 36 and now it's at 38. And she's like, yeah, no, that's the price. Because you wanted a move in date of March 1. And I was like, so what if I don't take this apartment and it just stays on the market? This apartment is going to be $4,200 for this apartment. You're going to raise it almost $1,000 in a month. That doesn't seem to make any sense. And the woman was just like, I don't know. I'm just kind of new to this building. I don't really know. She gave me some bullshit stutter answer. I really did think this was a tactic for them to kind of open the conversation. I really thought that when I hung up the phone, she was just going to go, all right, so this guy's approved.

He can be in the building. Can we talk about. And I thought I was going to get a call from somebody in the leasing office that's like, hey, Mike, we just talked to so and know we want you in the building. You're approved already. What can we do to make this work, and they just didn't. So I just pulled out of it. So I just kind of started looking for more apartments, and now I have an application in another building next to it. I found an apartment that I liked. This broker showed me around. It was 37. I told him that I had another apartment that I liked just as much, but I liked that apartment, and I was willing to put an application in, but I wasn't willing to spend more than 3600. And also, they have a couple of their amenities in this building because it's one of those high rise buildings. There's a couple of amenities that are still under construction, like they're redoing the pool, they're redoing their locker rooms or whatever. So I also said that I needed to have the amenities waived, which is another $50 a month.

And then what happened?

He said the building probably wasn't going to do 3600 for the apartment. So what he said was he was going to give me a $1,200 rebate. He was basically going to write me a check for one $200 to take the apartment at 37.

So it would even out, where's your head now? You want this other apartment for 3600, which was your budget, and then ultimately, somehow you're getting it at 3600. So is there a problem?

Now I make enough money to cover the rent or 40 times the rent. Whatever this stupid metric is, I can cover it. Between working on this show and the other. I heart shows that I work on and all these other projects, but I don't have a lot of tax information that backs that up because a lot of this work that I started getting didn't start until probably halfway through last year. I've given them pay stubs and copies of invoices and stuff like want. It's just a major hoop to jump through to get freelance income approved. It seems like they want me to get a CPA letter. I don't even have a CPA.

Why don't you have a CPA?

I mean, I have a guy that has done my taxes.

I have a guy in.

Have. So a friend of mine who, one of my first freelance gigs was in 2018, but I didn't freelance for long. I probably freelanced for a couple of months, and then the company that I was working with made me full time. So there was a couple of months of income that I had to sort of figure out what I owed in taxes. He helped me do that, and he has done my taxes for me, I think, the last three years. But they've been, for the most part, I've just worked at a company, and they send me a tax return, and then they're not difficult. This is the first step for me where, as a producer, I've gone out on my own, as opposed to had a salaried job. And there's things that I have planned for the next year that are obviously going to require a real accountant or CPA that can help me get set up. Setting up an LLC. Setting up. That's on my slab. I just didn't think that I was going to need all of that stuff to get an apartment.

This has been the moral of a lot of our interventions. Not that this is a classic intervention of sorts, but usually it's not the thing that we start talking about. It's something else that's the issue. And I think the issue has come to the forefront that you might not have been expecting, but is the real issue we should be talking about and addressing. And this rent debutante ball that you've done around Long Island City has analyzed it, has pushed it to the forefront, importantly so, because thankfully, it's just dealing with the rents, with these, whatever corporate buildings. That is not as much of an issue as, let's say, an audit or some, like, I just got a super lovely bill from the New York Labor Department for some fucking form or something or other. It's really annoying to set up all the things that you need for various entities and keep up with that. If you're going to do that this, like, let's do that right now. And yes, get a CPA, and yes, either get a llc or an s corp and get that situated so that it doesn't cause you greater issues in the future.

Worst case scenario here, if we fast forward the videotape, is that you stay with your rubies, which is, I know, granted, high class problems. You still have a roof over your head, all the things. Fast forward a videotape if you get into some other financial shit, less funds. So I think that if you are comfortable with this building and you can prepay, that's a way that I see getting around it. And by the way, if you didn't have this wake up call, then you would probably have procrastinated more. So I'm glad you had this wake up call. And so I think that all of this is ultimately gonna put a little.

Pep in your step to get it together and get it all.

For today's tip, you can take straight to the bank. Mike, what did you learn today?

What did I learn today? I learned that waiting to the very last minute to find a CpA to write you a note to get an apartment is a really bad idea. I gotta get my shit together, man.

Money rehab is a production of iheartRadio. I'm your host, nicole lapin.

Our producers are morgan lavoie and mike Costcarelli.

Executive producers are nikki etor and will Pearson. Our mascots are penny and mimsy. Huge thanks to OG money rehab team.

Michelle lands for her development work, catherine.

Law for her production and writing magic, and brandon dicker for his editing, engineering, and sound design. And as always, thanks to you, you, for finally investing in yourself so that.

You can get it together and get it all.

You spend my money. You spend.