Dave Ramsey: How I Lost EVERYTHING Flipping Houses
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- Опубликовано: 25 июн 2023
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Dave has made hundreds of millions of dollars and STILL remembers the details of the deals that went wrong FORTY years ago! The failures hurt!
Remembering your mistakes allow you to learn from them, especially if the mistake is in your wheelhouse. Personally, I remember the couple times in my life that I mispronounced a word. The mispronunciations were superfluous (on a date twenty years ago) and conjure (at a friend's house while in high school). I will NEVER forget.
The reason why he is wealthy and successful in life
He inherited 400 k to start with, so hasn't *exactly* started out of nothing to become successful.
No pun.
But it's a good lesson that he and all of us need to learn.
He is NOT speaking of his failures but rather of his education, the seeds itself, that pathed him where he now stands.
"Run it like a business, not a get rich quick scheme". Solid advice for any activity, not just real estate :)
I am a small business owner myself and have met and know of many other business owners and the ones that I will never understand are the ones that just can’t do the right thing most of these people that I know were used car dealers. One of them for instance I couldn’t believe screwed me because we both worked for a used car dealership together that closed down because the owners were screwing people and he was the sales manager so when that place closed he opened his dealership and we were friends and cool with each other. He didn’t have much money when he opened, I had a very small used car lot myself and I hated selling cars so I said I will bring my cars to your lot they will be ready to go 100% fixed so all u gotta do is sell them and we split the money well I found out he was lying to me about what he was selling them for. So he had to buy cars on credit, hire a mechanic to fix them and he didn’t last very long. I was really helping him out.
In the housing crash of 2008, I had to relocate for work. Not wanting to sell my place at a loss, I decided to rent it until the market rebounded. Even though I was clearing about $500 a month, I never slept well... there was always some looming threat that hung over me like a dark cloud. Burst pipes, HVAC going out, noise complaints, renters who are always late with the payment... it sucked. One guys even snuck in a 100 lb rottweiler in spite of the "no pets" agreement. That dog destroyed my wood floors. Another guy threatened to sue me because he dropped a jar on his foot and broke his own toe. (He thought I should pay his medical bills since it happened on my property)
One of the happiest days of my life was when the housing market rebounded and I sold my unit.
Blesssed
He thought you would pay his medical bills. That's crazy. I guess that's the people factor.
That's part of making money mate there is always speed bumps on the way.. I watched my uncle deal with bad tenants on multiple occasions, trashed the joint... 1 place had so many dirty nappys stashed everywhere in the house, rat shit everywhere holes in the walls destroyed bathroom and kitchen
He understood it's part of the game and to this day he still has about 10 properties left and has been slowly selling them off when he wanted a little extra money
Lets just say he is very well off now and it's all because of real estate and smart choices...
No risk no reward
That's what a property manager is for
@@nneisler Yeah - you're lucky if you can find a good one. The first 2 were such a disappointment, I decided it was better to just do it myself.
I laugh every time Dave says 'Tic Tac' 😄
Me too😂
Yup!
It's not that funny
Like Rick from Pawn Stars saying "Poke-Man" instead of Pokemon
normie humor.
Did my first flip in 2018 made 50,000 haven't found another perfect deal since but I'm waiting patiently
As I listen to Dave tell his experiences from back then, how he made a lot of money and then lost everything, the one thing that I come away with has nothing to do with the financial side of things. The one thing that I appreciate is that his wife stuck with him. He is a lucky man to have found that woman that early in his life.
Good (sorry GREAT) point.
Dave tells the same stories many times each year.
Learning to manage money well requires stories of good and bad experiences.
@@candeffect iron sharpens iron. Stay motivated.
@@candeffect Yes, I know. I've been watching for a few years now and every time he tells these stories, I think how lucky he is to have found that woman.
And that, is the greatest point of all. My wife split when I was teetering in bankruptcy.
Totally agree with Dave. I was a landlord some properties for several years. You can not count on rents and you will have unexpected expenses that eat away at profits.
I agree..my dad and step mom rent out her old apartment and he says being a LL can be good or bad. You can get a bad tenant you have to evict (which he has had to do twice and second trashed the place before she moved out so they had to do quite a bit of work). It's not always the easy and high paying passive income that people make it seem like (plus how is it passive? You still have to do your work with maintaining the property and getting a new tenant when one moves out, etc. ).
That's why my family has commercial and residential rentals to offset both negatives and positives of each. Commercial you make substantially more more where as residential you only make money when you sell.
I find good tenants then buy them a house not the other way around
I disagree, I own 4 single homes. I fixed everything before renting. I only have one tenant who pays late. After repairing everything it is pur passive income. I don’t invest in low income neighborhoods
@@Anonyme67 good luck, you will have good periods and then some not so good.
My dad had 6 rental units, and he did not like confrontation, so if the renter didn't pay, my dad would just set up a payment plan with the renter, and the deadbeat renters took advantage of his humbleness....he eventually got tired of it all, and sold the buildings and the land to an Autozone, who leveled the houses and built a store on the land.......my dad did make more than a million dollars on that transaction.
Why didn’t he just hire property management?
@@QuincyBrowningMorgan Hi Quincy.....his rentals weren't high class condos....they were older buildings and he charged very low rent for each, so hiring property management would not have been financially feasible. His dental practice was part of one of the 2 buildings, so he saw his tenants a lot, but he was just a nice guy who deadbeats looked at him as a push over. I rented from him for 12 years, and never missed a payment.....he put my rent payments in a bank account (unbeknownst to me) and left it to me in his will when he passed.....he was just too nice of a guy for this planet.
@@formula112967 Super nice, much respect.
Great video Dave, I'd suggest making the most of the recession and inflation. Recessions are an inherent part of the economic cycle, therefore you can only plan and prepare for them. After graduating, I fell into a rut because my first job out of college was as an aerial acrobat on cruise ships. I currently run my own company, serve as a vice president for a significant corporation, own three rental properties, make stock and company investments, and have increased my net worth by $500k over the previous 28 months.
Until they get burned by their mistakes, people do indeed minimize the role of expert counselors. The covid epidemic and my early 2020 layoff came at a time when I needed to stay afloat, so I looked for license advisors. Grace Lynette Johnson whom is searchable online made my previously stagnated $325K reserve to have so far generated massive returns from subsequent investments thanks to someone with practical expertise and decades of experience that I was fortunate enough to come across.
@@Harperrr.99 We're only just an information away from amassing wealth, I know a lot of folks that made fortunes from the Dotcom crash as well as the 08' crash and l've been looking into similar opportunities in this present market, could this coach that guides you help?
@@bill-_ Mariam Sandra Milner is my financial advisor. She was featured in a CNBC interview, where I discovered her, and I contacted her later. Since then, she has given me entry and exit points for the stocks I am interested in. If you want to make a quick online search using her name (Grace), you can. I essentially follow her market decisions and haven't felt bad about it.
Thanks for being so transparent! Everyone sees success but rarely know the failures! Love this
I was a wholesaler right around the time the market fell out in 08. I was getting calls from so many destressed and upside down owners and landlords, it wasn't funny,
One thing I hate is having to start over. Ive done it so many times to advance in life. But it sucks when you think it's finally over, then you get in a wreck because of a drunk idiot, lose your car and then realize you are right back where you started. You can break a leg, lose a job. All these things lead to having to start over. I hate it. But the worst part is you have no control over this. It just happens.
He did a good job on that first property and the ones that didn't go well he learned the best of lessons
At least Dave learned from his mistakes and turned the ship around. Some people never recover. I know a working-class couple who filed for bankruptcy around the same time he did. A lot of medical debt + really bad decisions resulted in car repo, utilities cut off, foreclosure, then Section 8 & food stamps. The husband died broke, left his widow with nothing but bills, and she's still struggling to this very day.
Very sad.
Very few ppl recover. Most ppl never recover from destruction
That's part of the learning process. You gotta be willing to fail, fail and fail again before you succeed
Thanks you for sharing your failures and showing us that when we fail we can get back up again and be successful! Thank you for the hope Dave!! And the cold hard facts and truth and guidance! May God bless you always!!! ❤
I learned my lesson with $50. I brought $500 at the age of 18 to a storage unit auction. I bought a unit for $50. The unit had a dresser, bicycle, a dryer, and a handful of clothes. My next issue I realized was how the hell I was going to sell everything. After all the time I put in, I figured I would be making like $1/hour. I quit that business right away. lol
😂
Those storage unit shows were all a big fat set up. Most units contain unsellable junk.
Lost everything flipping houses then made millions selling books and giving advice of how get get out of bankruptcy.
Thanks for the knowledge, sharing your experience, great sense of humor, awesome show.
“So when I get aggravated at the idiots on tic tac it’s because I was one of them. I was doing the exact same stuff and I can smell neophyte… beginner… a mile away.” - Dave Ramsey
Also with the eviction moratorium that was passed during the pandemic, that was extremely hurtful to the property owners. The banks, (like the tenants) were completely off the hook. Yet, they were still foreclosing on the poor landlords who couldn't pay the mortgage, due to tenants living for free.
I'm never getting a mortgage again!
You could get mortgage forebearance.
You could always find excuses
Dave learned on the job and he got really good at it!!!
my first house was in a new area of the heights outside of Portland. I bought the plot in 98? for just under 100K, its on a hill. From ground level, the view is partially blocked by trees on the downside. I picked a 2400 sq ft design out of a catalog. The builder quoted 200K ($83/sqft excluding lot, and I am paying interest as he bills). I think this was appropriate for that design on flat land, not on a slope. Furthermore, I ask him to push the house back on the plot, a raise above ground level a little to enable a better view.
This added a lot of extra building material that he did not factor in. He (the builder) also told me I could have had an architect customize the plan. Basically get the Autocad file from the design owner. Because my plot was on a bend in the road, a customized design with a flare on the downhill side plus large windows would have improved a very good view to an awesome view, but this was my first house and first custom construction.
In any case, the builder was under water because his margin was low (6K) and the extra material from raising the house. This also meant adding a floor below the main floor was highly feasible as much material was already there and it would have an ok view.
I sold it shortly after for 390K minus commissions. I asked the builder if he wanted extra money because of the changes I asked for. He said no, but he did want his wife, a young hot realtor, who at the time did not have clout to get listings in the fashionable neighborhoods, and letting her list it would help her build portfolio for future listings.
I think Zillow has it for just under 1M now, but much of this was in recent years, not the first several years after I sold.
Note: many of the lots were custom built for the (house) owner. Some builders bought lots and built houses to be sold. An adjacent lot (110K) was such. It was a new builder. He built a 3600 sqft (typical for neigborhood) mcmansion (most were proper luxury homes). I am inclined to say his cost was lower than mine, I had marble in all bathrooms and lots of granite in the kitchen with HW floors. At the time, $100 per sqft was adequate for luxury construction, and $60 for low cost, so I was middle. I am guessing his cost excluding interest was less than 400K. He listed for 550K initially and gradually lowered and was at 475K after almost a year?
Thanks for addressing this Dave. My parents went through the same issue and the tenants refused to pay the rent. We eventually sold the property after the eventual eviction of the tenants. Like you said, there is the people factor to consider and that can ruin the real estate investment. Tenants are not always reliable.
Neither is a Jay O B - job
Make no mistake, Dave loves and invests heavily in real estate. He just does it smart now. That’s where he makes a large portion of his money. Real estate is a fantastic industry if you know what you’re doing.
Now this was a practical talk that Dave gave. A lot of practical info. I like it. A "useful" rant.
real slick Dave real slick. Seems like every video he outputs bags on investing in real estate in any type or form.
Dave: You don’t get rich off leverage.
Nobody: “how did you get rich Dave?”
Dave: umm not leverage.
Nobody: can you elaborate?
Dave: No.
This guy is the worse
Thanks Dave!
Respect!💪
Hello Dave I learn so much from you. By the way Kalamazoo Michigan is my home town. We will stick with you we always learn something new. God bless.😊
The great thing is that even though Dave made mistakes early in his life, they were all part of his journey to financial success. He learned from his errors. I made a few costly errors myself, but it's one way to learn! 👍
From 1985 to 1998 my husband who is a building contractor and I bought 23 rental properties in Scottsdale AZ. We were careful who we rented to and all the properties had a positive cash flow. During the same time, we also started flipping houses making some great money. Housing prices in AZ. had gone through the roof so two years ago we sold all 23 rentals before the market started to drop again. With the price of houses now, even with the small dip in the market, I don't know that it's a very good time to get into real estate.
holding onto those interest rates would have been the best decision you made over the next 30 years. but seems like you came out on top regardless.
Thanks!
Jade, when Dave said his first flip was 1983 and you said the year before you were born, he said 30 years ago. He was figuring it out but you should have kept him going at 30 years ago!😉
😂😂
Lol she’s so beautiful to be so close to 40
Dave got his notes called because he was using short term loans to invest long-term. If you have Fannie/Freddie 30yr fixed financing you can still lose your shirt doing rentals but not because the note gets called.
he took a higher risk but got a higher reward. its still the same concept
Leverage makes you vulnerable to unlimited variables that can take you out. The house of cards metaphor is so apropos. The cards represent your equity, the air between them are the mortgages.
Agreed, he’s very misleading
Hey guys never take chances and just pay your bills. Dream killer right here
Was this your takeaway? Mine was "Do it right, not stupidly."
7:53 Thank you for telling us the truth!
The first contractor wanted $1500 and wanted it up front....
Today this may not seem like much, but back then it was like giving someone a whole $7000 upfront.
He says he doesn’t give money to contractors that’s fine, but I feel like even the contractors are asking for some money upfront. Or else hard they’re going to buy the materials?
@@mrperez7036 The way people around me do it: if parts are needed, they get the parts themselves. The contractors just do the labor. In some later stages when there's proof of progress they allow the contractor to take money for more parts.
We all learn from our mistakes Dave! It makes us the wise people we are today.
That's a generous statement. In reality, we all SHOULD learn from our mistakes, like Dave. There are plenty of folks who still don't learn, and not everybody is as wise.
I love the dig on Meet Kevin about the "I have a jet airplane!" at 7:53
Thanks for confirming it. I thought it was about him as well.
Personal finance is “Personal” finance. Find a mentor that works for you. There are different paths to wealth. Dave Ramsey had a painful personal experience using debt. So he adopted the debt free path. The guy is now worth over $500 million (probably closer to $800 million) debt free. When you get to Dave Ramsey or Ben Mallah’s age you will “know” the path you believe in. Ultimately when you use other people’s money…. (you are in bondage). Dave used his sweat and money to build his current wealth. I lost 2 properties to foreclosure (because I borrowed money). So Dave’s plan make’s sense to me.
Dave built a business selling personal finance courses. That sounds like a business that doesn't need much money upfront. To each his own path, I suppose.
Great video, everyone else makes it seem easy
i think you need to make these mistakes in any business in order to learn. it's like either paying a college $100,000 to get a business degree and write essays about starting a business...or....using the money and actually starting a business and learning on-the-job.
The key to ensuring profit on the flip is properly executing the 1031exchange. Botching the 1031 process means a big tax hit; executing it properly means eluding the tax hit.
What exactly is the 1031?
We had a carpenter who was a big roller building spec houses like 30 years ago and one of my friends who was a carpenter said he was doing it on too small of a margin. When there was a slowdown in the economy, not a crash, he was done. He ended up selling about everything. My friend as gone on to be general contractor for some commercial projects in addition to residential work.
was that jet airplane comment about kevin ? haha xD
Flipping has gone nuts in Florida rentals. I’m seeing 1,000sqft shacks going for $2k/month because they’ve got new floors and kitchens. Of course they’re all asking for proof of 3x monthly salary and credit checks, so it will be interesting to see the rent delinquency rates down here over the next couple years
But you got paid a $1 hour to go to "school" and get "educated" and your "student loan " was at least discharge able. So not as bad as you make it out to be.
Does Dave ever explain what exactly caused him to lose everything in the late 80’s? He always mentions it but never gives details on what exactly caused his downfall.
Also I bought my first rental property this year. Wife and I made sure we could still afford the mortgage even if we didn’t have tenants that way we don’t have to rely on the them to pay the mortgage.
He talks details about it all the time. He was 100% financed and the bank called his loans all at the same time because there was a new bank manager that took over and apparently didn’t like the idea of a 25 year old having all that money leveraged out there…..or something like that
@@brandonmitchen1591 Something like that. I thought a bank bought the bank holding his notes and called them all due, but I could be wrong. Salient point is, he was 100% financed with those "get into real estate for zero down" deals and was $4M in the hole.
@@brandonmitchen1591I heard they were 90-day loans that the new bank decided not to renew. Does that sound right? Makes sense to me.
Typical 30-year mortgages can't be called on a whim like that, even if they're sold to a different bank.
Ok o9 is it ok if
Real estate investing always sucks. The lack of liquidity alone drives me away. I’ll stick with s&p 500 index investing. Slow and easy
the market is just one asset class ... you have to diversify your investments. Some in the market, some in businesses, some in precious metals, some in real estate ... you get the point.
The return after expenses and taxes not worth it. My parents have paid off commercial real estate and if in market in an index fund they would make so much more.
@@markg999My father is a greedy narcissist
Lol ok? No one asked
After owning a co-op apartment in Manhattan for years, and other houses before and after, renting may not be the worst option. You never really own real estate as long as there are property taxes. Miss a payment and they take it away.
You, the owner pay rent to the fed, who own the land, who pay rent to the military to keep it, it’s basically an ouroboros.
@@Beowulf54Mcexcept property taxes are not federal taxes.
I think daves point would be, your housing costs would be considerably lower than renting when you are retired though. Would you rather pay $1500 a year or $1500 a month? Also,this might be a shady thing, but you can use that info to benefit yourself, you can legally take peoples properties if you pay their back taxes on property. Im not saying its great but you can lol.
@@crashtestdummy1972 $1,500/yr.?? In what world do you live? Our property taxes are already $2,000 a month (3%). Thanks Taxes, oops, I meant Texas.
@@scoutandscooter louisiana, ours is $985 a year with a homestead. I was shooting 1500 as a general number
Bought first house (fixer upper) for $65,000 sold for $200,000. Bought a townhouse for $130,000 sold for $120,000. Bought another house (fixer upper) for $170,000 and sold it for $280,000, bought my current home (fixer upper) for 140,000 and now it's worth close to $300,000. Now I'm waiting because I'm not interested in taking out a loan in this economy.
I did gave renters live with me in these houses while I fixed them up and for the most part it payed the mortgage while I lived in them, though a few times it didn't go as well. All that to say I did make money doing it though it wasn't quik flips like most people are into.
Quick flippers are assholes ruining the market for everybody. Driving up the value of property with sub par and or faulty repairs and upgrades. Then some poor soul that doesn’t know any better buys it and it starts falling apart. F quick flippers
Would you pay the depreciation recapture tax after selling a house in a really rural central MA location that you bought from your parents 19 years ago when you were 23 and then rented to them for 19 years? Or do a 1031 exchange into another condo or something in a more rental friendly and appreciating area further east. I’d save some money on the sale of the house by not having to pay depreciation recapture tax but still have to rent the new place out. And I would be renting a place to live too. 🤔🤔 Wondering if it’s better just make less amd pay the depreciation recapture and out it into a place to buy to live in myself.
Why did the contractor have to run off to Kalamazoo tho 🤦🏽♂️😂
I love when Dave says tik tak 🤣🤣🤣
Not the jet airplane 😂😂😂
Buck an hour- baller!!!
The fact he made money on the first one. Make genius. I lost on every house I own.
Dave was doing great he just got unlucky when the bank was sold and all of his loans were called in overnight. That wasn't his fault. The only way to have prevented that was not to be leveraged to the hilt like he was.
That's the key. And there were about 200 other variables that could have taken him out when he was so leveraged. Leverage is risk and vulnerability. Do it when you're young so you have time to do it right later.
Good old days over!!! Making money 💰 🤑 💸
Anyone on this thread who has flipped and/or is flipping houses - how do you get the funds to buy and rehab homes?
apparently Dave Ramsey has never seen the recent reaction video from Ben Mallah 😂
Huge Mallah fan, definitely following in his footsteps.
5:38 It’s $2,571 compensating for inflation.
I thought FORECLOSURE meat cheaper also...up until 10 minutes ago
Added information. I can appreciate that. A voice of reason.
Wow, and I'm just having trouble selling my own house through realtors! Any advice on how to stand my ground with a realtor that keeps wanting me to BOTH fix up the house.. AND reduce the price (we are priced right in the middle of the listings, BTW)?? I wish I had a BS meter for real estate agents.. like Dave does!
The market is leveling out. Most likely the more money you put in the place the more you'll probably lose or break-even
I am a Realtor. Most Realtors are very truthful. Sellers often come into a discussion on selling their home knowing how much they want to sell their home for which may have nothing to do with what the home is actually worth. When a home is in disrepair buyers offer much much less.
Would be great if you taught a real estate class then to switch things up a bit. I think we pretty much all have the stay out of debt thing down by now
So now that you've told tenants how they can use a chapter 13 to protect themselves, how about an explanation on the procedures to protect the landlord from getting screwed by a chapter 13 tenant?
@@supershrpy It's truly shocking that anyone who even remotely follows Dave would make such a dumb-but statement ... News flash, even the most previously stable, on-paper-golden people run into rocky scenarios in their lives. Not all people who end up in a chapter 13 are just deadbeats. Stop the elitism and understand that life happens, and just because someone hits bottom, that doesn't automatically equate to them being a worthless piece of crap. Screening doesn't prevent that, and that wasn't my question.
The open concept trend is here to stay, and it's a wise choice for modernizing a property.
I hate real estate!
Real estate was always too much cash flow for me.
I rented and put the extra cash into cash, 401k, and IRA accounts.
I was blessed to retire financially free at 62 in 2020 thanks to the Bible, Dave, and others who taught me to manage money well.
Did you have a family when you rented? I have found buying to be cheaper, unless you're renting a small apartment.
God's word is the best guide
that Bullcrap meter , means Tic Tac not worth halfpense. and TGTBT.
I think it's phony they way Dave REPEATEDLY calls himself stupid for the things he did that failed. In 1983, he was 22-23. It's pretty darn IMPRESSIVE for someone so young to have such active drive, daring and even basic understanding of real estate and investment and then not only think and wish about it, but to act on it.
Chapter 13 bankruptcy usually lasts 3-5 years and you can always appeal the stay injunction. I Could be wrong but that's from a quick search on the subject. That last statement at the end of the video comes off as gaslighting and it really doesn't make sense. Otherwise if people are gaining the system that easily I don't think rental properties would still be a thing.
He thinks everything beside the markets, are a get rich quick scheme.
Your first deal should be a house you can move into and learn how to do some jobs yourself, and if you need a contractor, have them do small jobs at a time and don't tell them you're going to flip. Some contractors will take all your money.
Flips are super hard ...best thing is buy cash free and clear and only get a house with minor things fixer upper cosmetic and do it yourself. Otherwise better to work a high paying job
No doubt , about it , Greed is Toxic !
I have a problem with the dudes who buy 10,20, 30+ houses to rent them out. If enough people do that, the supply gets drained for all the families who just want their own home. Perhaps the future will look like 90% of people who want to own a home are forced to rent, while those who own homes don't even live in them themselves?
Agreed. However, with falling demographic trends these people could be up a creek in a couple decades when supply exceeds demand. Just look at Detroit. Doesn’t help prospective house buyers now though.
@@AAS1-kp9csthese types of people will simply start renting vans down by the river.
😂
Then you'll have a problem with me. What about the people that can't afford a house, who would prefer to rent a house rather than live in an apartment? Real Estate investors, such as myself, fill that need. There are more people in the market looking for homes to rent then there is supply.
If real estate investors didn't exist, the government would have to step in and buy up properties. You think the supply for "buying" houses is bad. The supply of apartments is worst. When governments get involved, you get subsidized or "low-income" housing. So real estate investors actually take the burden off the state and local governments. We buy properties in neighborhoods and find tenants that can actually afford to live in those neighborhoods. Thus keep the properties values in tact.
Lastly, when acquiring my 10 houses, I was in the same market as the people trying to buy the house. I got out bid on several occasions. It's not like we have a secret block of houses only available to us. We are are part of the same pool of buyers.
Its life man! Get ahead or get behind.
The economy needs people who are motivated to offer goods and services. As an immigrant I know this. Whatever the motivation is, whether charity or profit. Motivated landlord compete to offer a product. Motivated builders build to offer a product. Habitat for humanity build’s to offer a product. Failure to understand this or artificially punishing one group of people ultimately leads to fewer house’s being built. And increase in homelessness. As an immigrant “I know” this.
My uncle bought parking lot spaces in Manhattan years and years ago. Best investment he ever made. Super low maintenance and highly profitable.
Around what year did he buy?
Did I miss something? He didn't explain how he lost those properties? He said some contractors bailed. But on one property. Did that happen to ALL his properties?
They saw his name. And was like this guy doesn’t know what he’s talking about
This was just a snippet of what he regularly lectures about. He was 100% financed, and the bank called on all his loans at once.
He went from zero to hero, back to zero and now he's a hero again. This guy's basically Hercules LOL
That would go against his religion, right?
@@michaelleahy6848 Not at all.
@@katyedwards3935 Abscribing idolatrous Greek divinity pantheon qualities would seem to be wrong.
He was a straight white man in America. Not sure he started at zero
@@michaelleahy6848 It's a Disney movie.
But RE only goes up!
Hahaha I have a Jet airplane. Dave taking shots at Grant Cardummy! love it!
The gambler's curse - you won the first game.
There’s a guy on the radio who always says “I can make you rich.” “I’m so rich.” But you find out that it’s just an education program and you buy a “membership.” His name is Del Walmsley.
Dave should have gotten a good lawyer to read his contracts....so he would not gotten foreclosed.
It was not fine print. Dave used 90 day loans based on hubris and interest rates.
@@weirdo1060 that is not how dave tells it. He got all his notes called by a new banker. He shouldnt have had pre callable notes.
I swear I thought I saw Dave at Burger King today loll
Naw not Kalamazoo 😫
"Run it like a business, not a get rich quick scheme." Amen! All these real estate advice crack heads on tic tac are living in a house of cards. There's not such thing as get rich quick.
Seems like there is a more in between option ..Dave has that once bitten twice shy attitude.
So true. More people should be saying this.
Dave all over the road on this rant lol
Flipping houses is instagram sexy. People think it’s easy. It’s far from easy
It's crazy work
there's always the stock market folks
First step in making money. Already have money.
The first million is the hardest. That's why I started with two.
Flipping is tough and can lead to ruin if you go too fast. Ive made good money with real estate through the years by buying an apartment or home when prices are down, living in it for a while, and when prices go up quickly sell. Then either rent for a while or try to find another deal. This works if you dont mind moving.
I agree with his get out of debt philosophy that helps a lot of people. Then he mentioned on his show one day that he thought Elizabeth Warren was a financial genius. Stopped listening to his show after that. Her crowd are the same people that give mortgages to ham sandwiches, student loan forgiveness, ad nauseam… playing his listeners for a bunch of suckers. Choose your lane DAVE!
Have to agree,rental is dead.stay out of it.youll loose your shirt,then your shoes..The dam courts act like they own it and won't evict ..I sold mine 10 years ago ,best thing I ever did.
So he made lots of money initially with 90 day notes and that was working amazing until he started leveraging rental portfolios. Now he is anti-debt completely but at the beginning it was working fantastic for him so I think debt as long as you don’t use it the wrong way can be very lucrative. If he never bought those rental portfolios he would’ve never gone bankrupt…
P.S.I’m a first generation immigrant apologies for my broken English grammar.
Buying and holding is the least risky real estate investment strategy. Flipping is very risky and not tax efficient.
PhD in DUMB. Funny Dave. He's the grandpa we all needed growing up.
Keep the rentals and let the renters pay for everything.
He’s the og of HGTV house flippers 😅