@@edb484if he can get someone to guarantee the loan ie his parents a bank will loan him the money. Let's hope his parents have more sense or deep pockets.
Exactly. Just as if you tune into a Dave Ramsey radio broadcast and hear Dave impersonating someone in a southern accent ,it almost always means that he thinks the person is planning to do something dumb with their finances.
Michael: you are right Dave, but it’s a great opportunity, even though I rent off my parents, have a car loan, no assets, no knowledge, and no experience. It’s a long term investment.
Mortgages are only debt in the most technical sense. Almost everyone has to pay for their room & board…you can spend X amount renting a place or you can spend X amount and own an asset that appreciates in value….you’re going to pay X anyway might as well own an appreciating asset.
@@thejsixm2357 They're debt because you don't have to sell anything to get out of a rented property. You can just leave after your notice period. That's not "technical", it's very real.
That is most aspiring business owners. Same as ones who wants to be successful business owners but don’t want to put in the time and work it takes to be one.
@@bensheard3969 it is a real thing tho. If you actually have a good business idea and find an investor it'll happen. It's just that most people don't have an idea that's both good and original
Dave and Kens advice about approaching the boss about getting into a leadership role, growing the business, and creating an option to buy was spot on !
i would’ve never guessed a business owner would discourage his competitors and encourage employees to work harder and longer for him for a “chance” at maybe getting a better position in life
"I'm debt free but I have a car payment. I live in my parent's home and cannot put my own roof over my head but I want to purchase a business for $1,000,000. Oh, and I listen to Dave Ramsey all of the time."
A grown adult still living at their parents house and trying to get a loan for $1 million has been watching too many Tik-Tok videos; online courses in delusion.
David was much more composed than I would have been. My call would’ve been, “what in the hell are you thinking boy?” Dave actually dug deeper and gave him good advice. Do the business, rent the building
My parents each started small businesses when I was a teenager. The whole family suffered for years before the fruits of them were tangible. People think it is so easy and while some are extremely lucky, most struggle a lot at first.
"We have no debt, except for our ......" Then a list of debt follows: 1 car payment, a student loan, 3 charged off credit cards in collection - but those don't count cuz we don't make no payments on them, etc.
This is what kills me on a lot of these calls still living with parents claim they have no debt then not one sentence later says they still have a car note. Do people not understand the definition of debt
I’m in the same boat. I’m 21, live with my parents, school is payed for and I’m debt free. I’ve been wanting to start a small business, this answered so much for me
If that ice business is so profitable, the owner would not sell. I have been self employed for 24 years and it has nearly killed me. It is a relentless grind from every angle. People have a fantasy of it in their heads. I love Dave. He is a blessing.
I was self employed with my own landscaping business for over 50 years, I had people constantly tell me over the years they wish they were their “own boss” like me- no one to look over them, they could make their own hours, they could just take off on a whim whenever they wanted to 😂😂 in reality, most self- employed people work themselves into the ground 80 hour work weeks, you become a slave to your job, ask anyone who has opened a restaurant how much flexibility and free time they have, people who have never worked for themselves have no clue how much work and time goes into owning a business..
@@keith-kb1zl One of the worst things is when your customer says you are getting rich off of them. People also do not realize that your job is to "figure it out" every day, all day. There are few people who can advise you on your business.
The simple fact this kid kept talking about the "opportunity" and wanting to get a million dollars - but hadn't looked at the business' books - says everything. How in the world do you think you want to buy a business and pick a price - and have no clue what revenue, expenses and profit its making.
Yes. The current owner is probably tired so he probably would agree to let the caller take over management. Then after a couple years, the caller will actually know how viable the ice business is. Write up an option to buy that separates the business from the real estate too.
Looking forward to the conversation in 2 years time. Hi I'm Michael, I live with my parents and I spent a million dollars on a ice business which has now gone bust. How do i get out of debt 😂.
It's possible in two years time he will be successful in the Ice business. I always have to wonder "why is he selling the business?". There has to be a reason. If the owner is an old man and just wants to retire, OK, it's possible it's a good opportunity. If he isn't OLD, there has to be a reason he wants to get rid of a "successful" business. Before he even considers it, he needs to take a serious look at the books to see if the business can pay back the $ million. Not just current year but the previous years as well. Have the profits been going up every year? Or have they been going down year after year? I'm not sure he's ready to run a business.
@@rolandhansen812 Even if it works out, this caller taking out a million dollar loan is foolish if not outright insane. If I bet my life savings on black & it happens to hit, I'm still a moron.
@@rolandhansen812This. I'm going through something like this right now. Reconnected with an old friend about partnering in a company we were set out to launch 4 yrs ago. Pandemic happened, it would have required me relocating halfway across the country so I didn't end up doing it. Fast forward, the company did launch and the person in the position I was going to take has now left the company. My friend and I decide to team up, and I'm hired. Three days on, they decide they need to shut down with no warning whatsoever. Huh? Thankfully I haven't relocated yet. Finally the beans are spilled, come to find out the company bank account is frozen because of a litigation issue unrelated but the banking was incorrectly set up from the beginning and has founder's personal bank account tied to it, so it got frozen with all their other personal accounts. It's a seasonal business and they thought they'd be able to run it just on the (potential but not certain) money that would be coming in this year. Whomp. Did not see that coming. Moral: there is ALWAYS something going on when a "successful" business wants to sell. The fact he has no idea what that is is actually his biggest red flag here. If he's so certain he can run this and be successful, he needs to take his experience and knowledge and just start his own business not tied to anyone else.
He sees a lot of opportunities because I just Googled ice business to figure out what he's talking about and got loads of info on how to start an ice business and how to make money and I'm thinking the kid went down a rabbit hole. He also talks fast like he's emulating a hustle bro. So he probably watches a lot of entrepreneur channels too.
@@AaaaNinja This kid has no clue how much profit the ice business makes. Yet he already gave it a valuation of $250 000 🫣 What is he basing that valuation on?
Why do people buy business if they don’t see the books. It might be the accountant in me but before buying a business I will have to take those books and go line by line and if I don’t know any accounting I will get a good CPA to do it.
@@Dave-tz9zxbuying a small business is one of the riskier investments you can make. The higher the risk, the higher the return you would need to make it a worthwhile investment.
This was satisfying to watch. They were so real for this. As an accountant for small businesses, running a company is very hard. It takes a village of people, money and knowledge to build a successful business.
An ice business? Just how much money -- profit! -- does it rake in annually? Why does the owner want to sell? Caller is going to take on the role of owner, AND landlord to the tenants in the building?? Do the current tenants pay their rent on time? Too many questions and not enough answers for this headstrong idealist.
Exactly what I commented on another post above. I wish I had seen your comment first. But even if it made $100K last year it might not be good. If it made $120K the year before, $150K before that and $200K before that. If that's the case, it's a dying business. Run for the hills. If it's the opposite, then maybe you should take the opportunity. There is way too much unknown to say one way or another. Maybe Mommy & Daddy will loan him the million bucks since they have a successful business.
I could easily see this being a very profitable business, but the fact that he doesn’t know the numbers before he thought to call Dave Ramsey to ask about $1 million in financing proves that this kid has no business being the one to run it.
That kid is going to do it because he thinks he knows more than they do 🤯🤯🤯. He's clueless about basic living expenses..... living with your folks doesn't teach you any of that!!!
This guy says he “hasn’t dug into the books” but is ready to go to the bank today and get a loan for $1 million to buy it and keeps calling it an “opportunity”. He has no idea what he’s doing and is just ready to buy whatever is in front of him.
It's more like when you don't have a plan or vision of your own, you are succeptible to scam artists and hustlers who trick you into the idea of easy money. There's a reason his owner is trying to get out of BOTH the ice business and landlording. And he already KNOWS what he's doing. You don't.
I have a cousin of whom many years ago went to chiropractor school and graduated at the bottom of his class and upon graduation immediately bought an existing chiropractor business with zero business experience and at the same time bought his first home. Still blows my mind today how any bank would give him the financial backing for such deals, but he managed to get that funding from my understanding that the bank looked favorably on his chiropractor degree. Needless to say it flopped and very badly for him and it only took about a year as he lost the business and his house foreclosed on him at the same time. Fast forward to today 25 years later and he never worked as a chiropractor but instead has been driving truck since then and has hated it, but it's what pays the bills.
I was an employee of an ice business from age 15 to 23, about eight years. 70 hours per week during the Summer. I started as a delivery route helper. I then worked in the plant ("stacking"), operated the forklift in the freezer stacking towers of ice pallets, and worked the loading dock. Then I worked as a delivery driver. The $1 million aside, I don't know if he is considering the ownership and maintenance of exterior ice boxes at retail gas station locations. Those are often owned by the ice company and leased to the retail location. The maintenance of those (and purchasing of new ones/ branding stickers) will require a lot of working capital. The maintenance of those boxes and the ice machines at the factory will requires someone with an education in refrigeration. Not to mention water, electric, and the fact that you are selling a food product and subject to lots of health inspections. He should probably start with a refrigerated truck. He then should contact a major ice company about being a distributor (of their label). He should then find a rural area to deliver ice to and build his business that way. He could also purchase his own 'roll' of bags and have the major ice company bag his label. That is done a lot by retail locations that want their own label. $0 to $1 million isn't very feasible. You have to start somewhere, and it will probably be 5 to 10 years as a distributor until you save enough to expand.
@Dailyfiver You're right. He was probably doing the same shit with $2,000 back in the day... and the older they grew, the more zeros he was willing to risk. You don't wake up one morning and think to play with 7 numbers out of nowhere. Come on bro, keep it real
@@FactsOVERfeelings2024 there’s so many variables you can’t act like there were obvious signs. Most people don’t combine their finances until they get married, he could have absolutely kept it private.
The way he described owning a business is 100% correct! It is soul crushing and bone breaking and you have to be willing to give it 200% at all times to make it work.
Having car debt is SO normal in America that people truly don’t look at it as consumer debt. I’ve had friends say oh Dave would consider your car loan a consumer debt?
We've all been there. You hear good advice, but then you tell yourself it doesn't apply to your situation. Later comes the regret and you learn a hard lesson.
I think that’s the sound of youthful naïveté. Most tech companies were started by these types. Once you get older and gain knowledge, you quickly figure out what could go wrong.
Young people nowadays want to be their own boss and think it’s going to be a cakewalk. Owning a small business is like having a job but you never get to clock out and go home from it.
@@talyahr3302exactly. They just see these dumb influencers and don’t bother to think about the process they went through. Social media is a wrecking ball to the mind of humanity
I bought out the owner of a business where I worked for 8 years. I owned it another 12. I was 48 at the time with about 25 years work experience on top of all of that. I was the last person to get paid every month. I worked 11 hour days and another 4 to 6 hours on about 40 Saturdays a year. This kid has no idea the level of commitment owning this business will require. All he sees are the benefits, not the work required to secure them.
Be proud of that. This is why America is great. He’s ambitious and knows he’s too excited. He made the effort to seek advice from Dave. Gotta remember young ones have no experience
We took out a huge loan to start our business back in 2000- in February next year it will be the best decision we have made in the last 25 years. I know Dave doesn't like debt but debt has got us where we are today- debt free with a thriving business!
Bad advice. A lot of people just don’t have cash to buy a business or a house outright and thus could never be owners in a reasonable time. If you can positive cashlflow after debt service you most certainly can get a loan.
Not necessarily. In UK especially if you have building experience it may be very profitable to buy a dump property with bank money and fix it up. It just depends on circumstances.
"I was thinking maybe I should change the word from borrow to "be able to obtain" the business for that price" Yeah bro that flips the math 180 degrees, let's go!
I’m in a similar situation, and I was calculating through, and the funny thing is following: 1) If I take over the business for 1m it’s gonna take me around 5 years to pay that off. 2) If I start my own business in the same field, I “only” have to make a 50k investment, and if I run the thing well and it grows organically, in 5 years it’s also a 1m business… So for me it’s very easy to decide which option beats less risk to my family. I don’t wanna drag them down if something like corona or something else happens again.
@@CroisMoiwouldn't even go that far. Often business owners are deluded concerning the value of their relatively unprofitable companies. The Guy probably thinks he does his employee a great favor.
This reminds me of my buddy who’s living in his in-law’s basement, tons of debt, a child, and is trying to have another baby because “there’s never an ideal time to have a child and I want another one now.” The issue is instant gratification with no foresight for how much you’re burdening yourself and the people around
Or maybe he is. Some people can know how to build and price a shelf inside and out, but that doesn't mean they should go start their own shelving business.
@@user-kpkxgtj the kids funny you need 200-250k to get a million dollar loan . and even SBA would want you to have lots of experience to get anything like that and they would want 150k . he hit the b0ng
yeah, two incomes at even 100k each, on rice and beans and no debt isn't going to cashflow a million dollar purchase. not within five years, let alone two.
Dave should have explained a plan where he could work with the owner to get in a management role with the business and after a year of proving his worth he could start converting a portion of his paycheck into equity. Fairly low risk from both sides and gives him time to get his affairs in order and learn how to run the business.
@@tonytoni1150it isn’t a luxury it cripples his maturity. The guy think borrowing a million dollar when he has nothing and lives at home is a good idea. A adult knows this is not a good idea and won’t happen. A 13 year olds plan.
Son, you just said your parents employ you and you live in some property of theirs. You're basically not an adult yet. What in the world are you talking about million dollar loans for? I mean I get it, that happens, Dave gave his kids something to do as well but I doubt your parents are Dave
@@LovesGrillingif you go to Ramsey’s old clips from 3-4+ years ago, you could actually learn something from the various people . These days it’s just planted calls and useless idiots calling in.
He's not even standing on his own two legs yet out in the world! More than 2/3 of his situation is family charity. What makes you think you can go from 0 to 100 like that? Oh yeah, your parents planting that seed in your head by taking care of so much for you up to nearly 30
staying at home with. mom and keeping his overhead low, is probably the strongest foundation to start a business you could ask for. Most entreprenuers dream they had some support systems, wish they could stay at home with mom until their business takes off. Going out and renting a house and shit doesnt mean you got your shit together and it certainly doesnt give you a strong 'footing" to start a business. As if moving out of moms and increasing your monthly overhead and lowering your expendable cash flow and liquididty is going to somehow enhance his ability to operate a business.. mind boggling! Before he has kids is perfect and still has a mom who will help him out, this IS THE PERFECT TIME TO START A BUSINESS. If you live at moms and your business doesnt work out, you dont lose your house and everything, etc.
Not necessarily true. It all depends on his current income, being which he lives with his parents and only has a car note. His dti should be low, his credit score and being which he would also be interesting into real estate. They would use a percent of rental income as earned income to help help qualify but I could be wrong
@reese85 The kid has no track record. When a bank lends a large sum of money to someone with no good track record, and that person defaults, it's the banks fault, in my opinion.
There's nothing wrong with his ambitions. But he has unrealistic immature visions that he's just going to pay this guy the money and then suddenly just have a successful business. You're not even sustaining your own self. You're living at home with your parents. Don't talk about buying running a business if you can't even handle paying rent and having a place of your own. He also has no clue how hard it's going to be to turn a profit. Senseless ambition will become a nightmare for this guy.
REAL QUESTION: if he grows the business from a $60k a year business to a $100k business in 2 years, that means the valuation just grew to 167%. So instead of $250k he’ll want $350k or $400k?
I like everything about Dave aside from his stance on debt. There is such a thing as good debt if it’s making you more money then the interest on the loan.
@@anthonyfaucy2761so if your debt has an interest rate of 4% and you are getting a return of 8% on the investment that is still bad debt? Usually interest rates are locked in. A mortgage on a rental property, cash loan for a business.. etc…
@@anthonyfaucy2761just make sure it’s not a a variable rate loan. I’m not saying it’s easy or everyone should do it but it has been done many times by people.
Every one commenting making fun of this guy probably has a 9-5 and has never taken a risk in there life, good for this guy trying to get more out of life
Exactly. Not only is the initial cost usually overpriced but by buying the business you take on all of the debt and liabilities such as having to pay staff their wages. Its not worth the effort
@Marc98338 Exactly. In fact most businesses wouldn't be worth it even if they were given for 'free' in the legal sense as the buyer takes on all responsibilities such as liabilities including paying all their employees as well as existing debts. Its a scam
This totally needs a follow-up call because he’s TOTALLY going to do it.
He has no money though the bank would laugh at the dude
Yep he already pulled out a loan since he called lol
@@edb484 😆😆😆😆
@@MrTmenzo 😆😆🤣
@@edb484if he can get someone to guarantee the loan ie his parents a bank will loan him the money. Let's hope his parents have more sense or deep pockets.
"I aint a dream killer but I love kicking the crap outta nightmares" WHAT A LINE!
Aw, Dave trying to save this baby from a true nightmare. T_T
Stepping on nightmares* 😂
If you want to quote something, quote it correctly.
When Dave calls you "honey" you know you done messed up
Facts
😂
Exactly. Just as if you tune into a Dave Ramsey radio broadcast and hear Dave impersonating someone in a southern accent ,it almost always means that he thinks the person is planning to do something dumb with their finances.
It makes my day when Dave calls men “Honey”.
Lmao
He got the ice cold truth.
Good One!!
😂😂 - Clever!
Pass. The caller is doing it so Dave just gave him a plan that will result in the owner selling to someone else.
Lol 😂
Papa pulled out the ice pick straight away.
Michael: *What's the best way to get a loan of a million dollars*
Dave: *You don't*
Michael: you are right Dave, but it’s a great opportunity, even though I rent off my parents, have a car loan, no assets, no knowledge, and no experience. It’s a long term investment.
Hope that helps ... next caller.
I laughed out load when he said this. Why would he ever call Dave with this question??
😭😂 hes hilarious i love him lol
Be Donald Trump
It’s always Im debt free…except for car loans, student loan debt, personal loans…😂
And apparently mortgages aren't debt either according to some.
Mortgages are only debt in the most technical sense. Almost everyone has to pay for their room & board…you can spend X amount renting a place or you can spend X amount and own an asset that appreciates in value….you’re going to pay X anyway might as well own an appreciating asset.
@@thejsixm2357 They're debt because you don't have to sell anything to get out of a rented property. You can just leave after your notice period. That's not "technical", it's very real.
100% debt free, besides all the debt.
He's excited about the "shiny" idea of being a business owner without any idea of what it takes to be a business owner.
soooo many people start businesses like this, it's tragic
Indeed.
That is most aspiring business owners. Same as ones who wants to be successful business owners but don’t want to put in the time and work it takes to be one.
@@tate6809 Not surprising given how often it's made to sound like anyone can just start a business and be successful
👆- 🎯🔥💯
"I'm not a dream killer, but I love stepping all over a nightmare." Good one.
At the beginning the caller sounds like he's on Shark Tank.
🤣
I thought the same thing. I swear some people today are so full to brain rot they watch shark tank and think it's a real thing
@@bensheard3969 it is a real thing tho. If you actually have a good business idea and find an investor it'll happen. It's just that most people don't have an idea that's both good and original
Deep down he knows it's not a good idea that's why he's trying so hard to convince them😂
Dave and Kens advice about approaching the boss about getting into a leadership role, growing the business, and creating an option to buy was spot on !
Except that it's a side gig now and he works for his family.
How much time will he have to spend doing that?
Although he suspects it , *SOMETIMES YOU DON"T KNOW WHAT YOU DON"T KNOW* .
i would’ve never guessed a business owner would discourage his competitors and encourage employees to work harder and longer for him for a “chance” at maybe getting a better position in life
"I'm debt free but I have a car payment. I live in my parent's home and cannot put my own roof over my head but I want to purchase a business for $1,000,000. Oh, and I listen to Dave Ramsey all of the time."
😂😂😂😂
Imagine how many fools watch Dave Ramsey laughing at others when they themselves are massive morons
Lolz
Who said he can’t put a roof over his head?
@@Alexius1KomnenosBecause he’s living with his parents…
Living at your parents house and you're trying to get a loan for $1 million??? I hope he go back and read these comments.
A grown adult still living at their parents house and trying to get a loan for $1 million has been watching too many Tik-Tok videos; online courses in delusion.
@@parochial2356😂
And MARRIED and 27…. living with his parents can’t ignore that 😂😂 I don’t get how people get married and can’t even live in private with their spouse
David was much more composed than I would have been. My call would’ve been, “what in the hell are you thinking boy?”
Dave actually dug deeper and gave him good advice. Do the business, rent the building
Even funnier in a Foghorn Leghorn voice
The look on Ken's face the first minute is priceless!
I'm debt free but I have a car we're paying off. Dave doesn't like debt but I'm going to ask him how to take a loan for $1 million. 🤦♂️
Bruh... 🙄
While living at home
Caller: But, but, uh there's always an exception to going into debt, isn't there Dave?
And the credit card!
That’s what I’m sayin. What is wrong with people?
My parents each started small businesses when I was a teenager. The whole family suffered for years before the fruits of them were tangible. People think it is so easy and while some are extremely lucky, most struggle a lot at first.
Most buisness close down fast
@@nifralo2752 Absolutely, most businesses go broke within the first or second year of starting.
then they reap millions upon millions of dollars while the rest of america crumbles and can’t even afford car payments anymore
@@randomkyle3 If there weren't successful businesses in this country then nobody would be making car payments cause no one would have a job or money
I love it when Dave said I’m not a killer but I love stepping over a nightmare. I just love that well said, sir.
Every Ramsey Caller: "We have no debt, except a car."
"We have no debt, except for our ......" Then a list of debt follows: 1 car payment, a student loan, 3 charged off credit cards in collection - but those don't count cuz we don't make no payments on them, etc.
@@parochial2356or they don’t count because its “good debt” or “good interest rate” 😂
@@thisoldbelair I think Dave would say something to the effect that "The only good debt is paid off debt." 😁
@@parochial2356 agreed 😁
We eat healthy minus the morning breakfast I have at McDonald’s every day
He sounds bold, confident, and detailed for an overgrown man child with no assets. Maybe he should consider a career in politics.
Yep
🤣
😂😂
At least he’s driven. Nothing wrong with being young and stupid, as long as you eventually wisen up
Banker here. He'll be termed out, overdrawn and crying to his banker about not knowing what he was doing.
...then the parents will bail him out.
@@Songbird36able I grew up as a trust fund baby. My parents trusted me to FUND MYSELF. 😂
@@Songbird36able No, taxpayers will bail him out. Biden will come out with something for losers like him.
@@komradkookoo Biden has never come up with anything. He won't start at the age of 81.
@@TXMama😂😂😂 same
This is what kills me on a lot of these calls still living with parents claim they have no debt then not one sentence later says they still have a car note. Do people not understand the definition of debt
I’m in the same boat. I’m 21, live with my parents, school is payed for and I’m debt free. I’ve been wanting to start a small business, this answered so much for me
It can be done but NOT with a million dollar loan
Buying an existing business is not starting a small business
"Hey Dave, I don't have any debt, except this debt."
Guy is a talker
If that ice business is so profitable, the owner would not sell. I have been self employed for 24 years and it has nearly killed me. It is a relentless grind from every angle. People have a fantasy of it in their heads. I love Dave. He is a blessing.
I was self employed with my own landscaping business for over 50 years, I had people constantly tell me over the years they wish they were their “own boss” like me- no one to look over them, they could make their own hours, they could just take off on a whim whenever they wanted to 😂😂 in reality, most self- employed people work themselves into the ground 80 hour work weeks, you become a slave to your job, ask anyone who has opened a restaurant how much flexibility and free time they have, people who have never worked for themselves have no clue how much work and time goes into owning a business..
@@keith-kb1zl One of the worst things is when your customer says you are getting rich off of them. People also do not realize that your job is to "figure it out" every day, all day. There are few people who can advise you on your business.
@@keith-kb1zlWell sais
Sometimes people want to retire and sell
The simple fact this kid kept talking about the "opportunity" and wanting to get a million dollars - but hadn't looked at the business' books - says everything. How in the world do you think you want to buy a business and pick a price - and have no clue what revenue, expenses and profit its making.
Just need a small loan of a million dollars for an ice business 😂
Hillarious😅😅😅😅😅
What could possibly go wrong?
@@bruceellenburg429 a heatwave 😂
He'll run for President one day once he becomes the top ICE mogul
Hey, summer is coming up!
Yes. The current owner is probably tired so he probably would agree to let the caller take over management. Then after a couple years, the caller will actually know how viable the ice business is. Write up an option to buy that separates the business from the real estate too.
Looking forward to the conversation in 2 years time. Hi I'm Michael, I live with my parents and I spent a million dollars on a ice business which has now gone bust. How do i get out of debt 😂.
It's possible in two years time he will be successful in the Ice business. I always have to wonder "why is he selling the business?". There has to be a reason. If the owner is an old man and just wants to retire, OK, it's possible it's a good opportunity. If he isn't OLD, there has to be a reason he wants to get rid of a "successful" business.
Before he even considers it, he needs to take a serious look at the books to see if the business can pay back the $ million. Not just current year but the previous years as well. Have the profits been going up every year? Or have they been going down year after year? I'm not sure he's ready to run a business.
@@rolandhansen812 Even if it works out, this caller taking out a million dollar loan is foolish if not outright insane. If I bet my life savings on black & it happens to hit, I'm still a moron.
@@rolandhansen812This. I'm going through something like this right now. Reconnected with an old friend about partnering in a company we were set out to launch 4 yrs ago. Pandemic happened, it would have required me relocating halfway across the country so I didn't end up doing it. Fast forward, the company did launch and the person in the position I was going to take has now left the company. My friend and I decide to team up, and I'm hired. Three days on, they decide they need to shut down with no warning whatsoever. Huh? Thankfully I haven't relocated yet. Finally the beans are spilled, come to find out the company bank account is frozen because of a litigation issue unrelated but the banking was incorrectly set up from the beginning and has founder's personal bank account tied to it, so it got frozen with all their other personal accounts. It's a seasonal business and they thought they'd be able to run it just on the (potential but not certain) money that would be coming in this year. Whomp. Did not see that coming. Moral: there is ALWAYS something going on when a "successful" business wants to sell. The fact he has no idea what that is is actually his biggest red flag here. If he's so certain he can run this and be successful, he needs to take his experience and knowledge and just start his own business not tied to anyone else.
Dave said no bank will give him a million $ loan I agree
And divorced paying alimony 😂
"I see a lot of opportunities in the ice world itself"
Dave: "k"
He sees a lot of opportunities because I just Googled ice business to figure out what he's talking about and got loads of info on how to start an ice business and how to make money and I'm thinking the kid went down a rabbit hole. He also talks fast like he's emulating a hustle bro. So he probably watches a lot of entrepreneur channels too.
@@AaaaNinja This kid has no clue how much profit the ice business makes. Yet he already gave it a valuation of $250 000 🫣
What is he basing that valuation on?
I’ve talked to a bunch of young bucks like this. They like the idea of being SEEN as a business man but are as green as the day is long.
Why do people buy business if they don’t see the books. It might be the accountant in me but before buying a business I will have to take those books and go line by line and if I don’t know any accounting I will get a good CPA to do it.
Dave wanted a 24 percent return on his money! Seems high to me...
@@Dave-tz9zxbuying a small business is one of the riskier investments you can make. The higher the risk, the higher the return you would need to make it a worthwhile investment.
@@Dave-tz9zx most business that are for sale are 3-4 x cash flow .250k should be around 70k . and most likely its only 1 guy working at that price
You misheard, he was calling to get a game plan before he pursued it further (including the books) .
that dream melted faster than ice on a southern summer day
😂😂😂😂
He's gonna do it.
Ken had indigestion just listening to this dude talk at the beginning.
😂😂😂
I listened to this on the radio... it was glorious to hear.
This was satisfying to watch. They were so real for this. As an accountant for small businesses, running a company is very hard. It takes a village of people, money and knowledge to build a successful business.
An ice business? Just how much money -- profit! -- does it rake in annually? Why does the owner want to sell? Caller is going to take on the role of owner, AND landlord to the tenants in the building?? Do the current tenants pay their rent on time? Too many questions and not enough answers for this headstrong idealist.
Exactly what I commented on another post above. I wish I had seen your comment first.
But even if it made $100K last year it might not be good. If it made $120K the year before, $150K before that and $200K before that. If that's the case, it's a dying business. Run for the hills. If it's the opposite, then maybe you should take the opportunity. There is way too much unknown to say one way or another.
Maybe Mommy & Daddy will loan him the million bucks since they have a successful business.
I could easily see this being a very profitable business, but the fact that he doesn’t know the numbers before he thought to call Dave Ramsey to ask about $1 million in financing proves that this kid has no business being the one to run it.
@@adamseidel9780 Yup! Asking the questions in the wrong order can be as bad as not asking at all.
That kid is going to do it because he thinks he knows more than they do 🤯🤯🤯. He's clueless about basic living expenses..... living with your folks doesn't teach you any of that!!!
This guy says he “hasn’t dug into the books” but is ready to go to the bank today and get a loan for $1 million to buy it and keeps calling it an “opportunity”. He has no idea what he’s doing and is just ready to buy whatever is in front of him.
I saw 3 18 yr olds right outta high school running their own ice biz. Old scrappy freezer truck, old forklift, and determination.
🥴 Probably went bankrupt after a year
I'll bet it didn't cost them $250,000 to buy in to either. Smart kids.
@@fredfred4086Might be the most important thing of all.
In our 20’s we think we know everything.
It's more like when you don't have a plan or vision of your own, you are succeptible to scam artists and hustlers who trick you into the idea of easy money. There's a reason his owner is trying to get out of BOTH the ice business and landlording. And he already KNOWS what he's doing. You don't.
Early 20s maybe definitely Not by your late 20s
I did know everything. Now I'm old and dumb and I don't like it.
@@kinked_chrome1438 oh dear some of these responses make me giggle, but I must be quiet as it is early morning here.
@@kinked_chrome1438I don't either
"I think it is lucrative". that means absolutely nothing. He needs quantifiable data.
He said he doesn’t even know how much profit the business makes when Dave asked. 🤷♀️
Theres no way he was serious. At the start he was giggling when Dave told him off so I think his taking the piss but he might actually be this dumb
I have a cousin of whom many years ago went to chiropractor school and graduated at the bottom of his class and upon graduation immediately bought an existing chiropractor business with zero business experience and at the same time bought his first home. Still blows my mind today how any bank would give him the financial backing for such deals, but he managed to get that funding from my understanding that the bank looked favorably on his chiropractor degree. Needless to say it flopped and very badly for him and it only took about a year as he lost the business and his house foreclosed on him at the same time. Fast forward to today 25 years later and he never worked as a chiropractor but instead has been driving truck since then and has hated it, but it's what pays the bills.
Bless his heart. "Ice world!"
Is this the plot for Frozen 3?
I only listened to 42 seconds and I know what Dave is gonna say
Dave hates loans, with a fiery hell like passion
“You’re wrong- I just told you”
Love Dave’s no none-sense blunt approach!
5:27
No debt but we do have 1 car loan?
How is he going to run a business if he doesn't even know what debt is?
Most callers are like that: "we're debt free except all this debt we're paying on". I just don't get it.
😂 🤦🏽♂️
So many people do that on this show it’s hilarious.
@@Sizukun1 They're doing their own plan and want Dave's blessing
I was an employee of an ice business from age 15 to 23, about eight years. 70 hours per week during the Summer. I started as a delivery route helper. I then worked in the plant ("stacking"), operated the forklift in the freezer stacking towers of ice pallets, and worked the loading dock. Then I worked as a delivery driver.
The $1 million aside, I don't know if he is considering the ownership and maintenance of exterior ice boxes at retail gas station locations. Those are often owned by the ice company and leased to the retail location. The maintenance of those (and purchasing of new ones/ branding stickers) will require a lot of working capital. The maintenance of those boxes and the ice machines at the factory will requires someone with an education in refrigeration. Not to mention water, electric, and the fact that you are selling a food product and subject to lots of health inspections.
He should probably start with a refrigerated truck. He then should contact a major ice company about being a distributor (of their label). He should then find a rural area to deliver ice to and build his business that way. He could also purchase his own 'roll' of bags and have the major ice company bag his label. That is done a lot by retail locations that want their own label.
$0 to $1 million isn't very feasible. You have to start somewhere, and it will probably be 5 to 10 years as a distributor until you save enough to expand.
His poor wife 🥴
Why? She married him??...I've been saying it for years. You judge a woman off the man she marrys😅
I agree!!
@@FactsOVERfeelings2024I’m sure when they got married he wasn’t trying to take out a million dollar loan man. People change.
@Dailyfiver You're right. He was probably doing the same shit with $2,000 back in the day... and the older they grew, the more zeros he was willing to risk. You don't wake up one morning and think to play with 7 numbers out of nowhere. Come on bro, keep it real
@@FactsOVERfeelings2024 there’s so many variables you can’t act like there were obvious signs. Most people don’t combine their finances until they get married, he could have absolutely kept it private.
The way he described owning a business is 100% correct! It is soul crushing and bone breaking and you have to be willing to give it 200% at all times to make it work.
after giving him the playbook, "one last question, how do i still do this?" 😂
Having car debt is SO normal in America that people truly don’t look at it as consumer debt. I’ve had friends say oh Dave would consider your car loan a consumer debt?
Dave was literally speechless right after the question was finished. LMFAOOOOO
We've all been there. You hear good advice, but then you tell yourself it doesn't apply to your situation. Later comes the regret and you learn a hard lesson.
Owner is using him as his retierment exit liquidity. Start your own buisness.
When he started out the call he sounded so arrogant and smug.
I think that’s the sound of youthful naïveté. Most tech companies were started by these types. Once you get older and gain knowledge, you quickly figure out what could go wrong.
@@mominthe209 when the bank asks for 250K down he will wake up lol
Young people nowadays want to be their own boss and think it’s going to be a cakewalk. Owning a small business is like having a job but you never get to clock out and go home from it.
There's some truth to that. Can definitely be worth it though, especially after it's built and running smooth.
@@talyahr3302exactly. They just see these dumb influencers and don’t bother to think about the process they went through. Social media is a wrecking ball to the mind of humanity
I bought out the owner of a business where I worked for 8 years. I owned it another 12. I was 48 at the time with about 25 years work experience on top of all of that. I was the last person to get paid every month. I worked 11 hour days and another 4 to 6 hours on about 40 Saturdays a year. This kid has no idea the level of commitment owning this business will require. All he sees are the benefits, not the work required to secure them.
Be proud of that. This is why America is great. He’s ambitious and knows he’s too excited. He made the effort to seek advice from Dave. Gotta remember young ones have no experience
Yup. Pretry much all cases of being successful as your own boss requires more work, sweat, and tears than most traditional bosses' require.
Remember, passing up what might be a great deal doesn’t show up as a loss in financial statements. There are no called strikes in business.
Dave - "You're wrong." Excellent. Also, my pet peeve - any sentence that starts with "in MY head...." just a way to rationalize something dumb.
“I see a lot of opportunities in the ice world”
This line has me laughing my ass off
Imaging the 3 Stooges delivering ice.
If live in Oklahoma and almost every-time I leave to run an errand another small business is just gone…
Love the direct but loving communication style. Wish we could all be this honest with eachother.
“You have car debt and live with your momma.” That’s right, put him in his place, Dave!
👏👏👏👏
We took out a huge loan to start our business back in 2000- in February next year it will be the best decision we have made in the last 25 years. I know Dave doesn't like debt but debt has got us where we are today- debt free with a thriving business!
Dave (A multi-millionaire): Don’t do it.
Donald (A multi-billionaire): if someone says don’t do it, you should consider it more wisely.
As a previous business owner for 30 years, my advice is to never get a loan to become a business owner. Because the lender will be your boss.
Bad advice. A lot of people just don’t have cash to buy a business or a house outright and thus could never be owners in a reasonable time. If you can positive cashlflow after debt service you most certainly can get a loan.
@@fkillahdifference between taking a 20k loan vs a 1 million dollar loan
@@topsykretts2264 uhm, okay….. Reread my statement it’s alluding to the same take.
Not necessarily. In UK especially if you have building experience it may be very profitable to buy a dump property with bank money and fix it up. It just depends on circumstances.
@@topsykretts2264 yeah, that goes without saying. What in my statement exactly is false or is contradictory?
"I was thinking maybe I should change the word from borrow to "be able to obtain" the business for that price"
Yeah bro that flips the math 180 degrees, let's go!
This kid was sold a scam, borrow $1million? crazy.
I’m in a similar situation, and I was calculating through, and the funny thing is following:
1) If I take over the business for 1m it’s gonna take me around 5 years to pay that off.
2) If I start my own business in the same field, I “only” have to make a 50k investment, and if I run the thing well and it grows organically, in 5 years it’s also a 1m business…
So for me it’s very easy to decide which option beats less risk to my family. I don’t wanna drag them down if something like corona or something else happens again.
I think his boss wants to take advantage of how naive he is. He is not doing well and wants out. The callers parents probably have money.
@@CroisMoiwouldn't even go that far. Often business owners are deluded concerning the value of their relatively unprofitable companies. The Guy probably thinks he does his employee a great favor.
This reminds me of my buddy who’s living in his in-law’s basement, tons of debt, a child, and is trying to have another baby because “there’s never an ideal time to have a child and I want another one now.”
The issue is instant gratification with no foresight for how much you’re burdening yourself and the people around
Sounds like the owner promised him the secret recipe for ice with the sale?
What if you live next to a glacier -- does that make it easier?
I like how Ramsey is a realist. The ice man dodged a bullet he did not think ahead.
I've heard of burning through your money - this is the first time I heard about melting.
I'm getting close to 30 and I live with my parents and they even had to give me a job, so can I get $1 million? 😂
you forgot to mention "I'm debt free" and then 5 seconds later, "I'm paying of a car" lol
Most patient I’ve ever seen Dave be.
The stunned silence after he was done should have told him Dave isn't the right person to have this conversation with 😆
Or maybe he is. Some people can know how to build and price a shelf inside and out, but that doesn't mean they should go start their own shelving business.
@@TheRisky9 very true. Working in a business and running it are two separate skill sets.
@@user-kpkxgtj the kids funny you need 200-250k to get a million dollar loan . and even SBA would want you to have lots of experience to get anything like that and they would want 150k . he hit the b0ng
yeah, two incomes at even 100k each, on rice and beans and no debt isn't going to cashflow a million dollar purchase. not within five years, let alone two.
Not necessarily true especially since we kno nothing about the real estate
I have a nephew like this. When I ask him what his business plan is I get the blank stare.
Dave should have explained a plan where he could work with the owner to get in a management role with the business and after a year of proving his worth he could start converting a portion of his paycheck into equity. Fairly low risk from both sides and gives him time to get his affairs in order and learn how to run the business.
This guy still lives at home? Hilarious. He’s never paid taxes, utilities but wants to run a business
I still live around home. I run a small business from my home that makes me over 100k after taxes. You sound stupid.
He and his wife live with his parents 😂
Lucky him tho. At least he has that luxury..
With his wife too haha
@@tonytoni1150it isn’t a luxury it cripples his maturity. The guy think borrowing a million dollar when he has nothing and lives at home is a good idea. A adult knows this is not a good idea and won’t happen. A 13 year olds plan.
@@tonytoni1150was prob banking on his parents guaranteeing his $1m loan with their mortgage.
00:45 Ken thinking RIP kid
lol he calls Dave Ramsey to ask how to get a million dollar loan. :)
Son, you just said your parents employ you and you live in some property of theirs. You're basically not an adult yet. What in the world are you talking about million dollar loans for? I mean I get it, that happens, Dave gave his kids something to do as well but I doubt your parents are Dave
How do we keep getting these callers? It feels like trolling. Who asks Dave Ramsey about taking out loans?
They are cherry picking the callers. It's all outrage bait. There's basically never a normal caller with a normal question anymore.
@@LovesGrillingif you go to Ramsey’s old clips from 3-4+ years ago, you could actually learn something from the various people . These days it’s just planted calls and useless idiots calling in.
@@luisvigo3777yep that’s where the gold is
But he is 27 and dumb. Probably not hard to find dumb people.
It’s good to have a non relationship call.
You can’t help people who don’t want help. He was looking for a seal of approval and didn’t get it.
He's not even standing on his own two legs yet out in the world! More than 2/3 of his situation is family charity. What makes you think you can go from 0 to 100 like that? Oh yeah, your parents planting that seed in your head by taking care of so much for you up to nearly 30
Dave said.. "It would take the bank less than 4 to 5 seconds for them to figure out they don't need to loan you $1M" I love this guy. 😂😂😂
27. Parents gave him something to do. Lives in property of theirs. I wouldn't be broadcasting that bro. I'd be hiding that
Well bro, that’s better than most parents who pass on debt and trauma to their kids.
I'm sorry that happened to you. I hope you're getting the help you need
I hope you can heal from all of that. Sorry that happened to you.
That’s better than most parents who tell their kids to go to useless college, get into useless debt, to then get a shitty office job.
Why not? I think because of that, he’s gunna be in better position than most if he was saving up his money
Dave and Ken are right. Wait a while, get your house in order, forget the real estate, and see if the owner will seller-finance the business to you.
You had me at Dave should I borrow. 😂
staying at home with. mom and keeping his overhead low, is probably the strongest foundation to start a business you could ask for. Most entreprenuers dream they had some support systems, wish they could stay at home with mom until their business takes off. Going out and renting a house and shit doesnt mean you got your shit together and it certainly doesnt give you a strong 'footing" to start a business. As if moving out of moms and increasing your monthly overhead and lowering your expendable cash flow and liquididty is going to somehow enhance his ability to operate a business.. mind boggling! Before he has kids is perfect and still has a mom who will help him out, this IS THE PERFECT TIME TO START A BUSINESS. If you live at moms and your business doesnt work out, you dont lose your house and everything, etc.
You might be a married 27 year old but you're still a child if you're living at home, and no bank will loan a child money.
Not necessarily true. It all depends on his current income, being which he lives with his parents and only has a car note. His dti should be low, his credit score and being which he would also be interesting into real estate. They would use a percent of rental income as earned income to help help qualify but I could be wrong
Stupid logic
@reese85 The kid has no track record. When a bank lends a large sum of money to someone with no good track record, and that person defaults, it's the banks fault, in my opinion.
@@GAFB1122 I had no track record but auto loans and I was approved for $500k for my 1st property
@GAFB1122 I had no track record besides auto loans and I was approved for $500k for my 1st property
So true your perspective on running a small business
There's nothing wrong with his ambitions.
But he has unrealistic immature visions that he's just going to pay this guy the money and then suddenly just have a successful business.
You're not even sustaining your own self. You're living at home with your parents.
Don't talk about buying running a business if you can't even handle paying rent and having a place of your own.
He also has no clue how hard it's going to be to turn a profit.
Senseless ambition will become a nightmare for this guy.
REAL QUESTION: if he grows the business from a $60k a year business to a $100k business in 2 years, that means the valuation just grew to 167%. So instead of $250k he’ll want $350k or $400k?
... sounds like a troll call. A good one.
Dave's hysterical.
Go for it! You should exactly do it now when you have all the free time and little to no bills + young.
I like everything about Dave aside from his stance on debt. There is such a thing as good debt if it’s making you more money then the interest on the loan.
Thats bs. Interest rates can and will increase. There really is no such thing as good debt
@@anthonyfaucy2761so if your debt has an interest rate of 4% and you are getting a return of 8% on the investment that is still bad debt? Usually interest rates are locked in. A mortgage on a rental property, cash loan for a business.. etc…
@@anthonyfaucy2761just make sure it’s not a a variable rate loan. I’m not saying it’s easy or everyone should do it but it has been done many times by people.
Every one commenting making fun of this guy probably has a 9-5 and has never taken a risk in there life, good for this guy trying to get more out of life
Most businesses aren’t worth the asking price
Exactly. Not only is the initial cost usually overpriced but by buying the business you take on all of the debt and liabilities such as having to pay staff their wages. Its not worth the effort
Well no shit, thats why they sell it.
@Marc98338 Exactly. In fact most businesses wouldn't be worth it even if they were given for 'free' in the legal sense as the buyer takes on all responsibilities such as liabilities including paying all their employees as well as existing debts. Its a scam
@@anthonyfaucy2761 exactly.