Ramsey Show Reacts To HORRIBLE Real Estate Advice on TikTok
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- Опубликовано: 6 окт 2024
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So here’s my list of what happened when I tried that - I was in debt and bought a house to renovate for rental income - there were issues at the permit office, I cut the drainways backwards, the weeping tile was too high and had to be redone (the neighbour said there was always a puddle there), the inspector denied the advance of the construction loan, the drywaller installed the edging wrong, the kitchen didn’t fit, the plumbing vent didn’t pass, the furnace had a cracked housing .. you get the idea .. the actual cost was triple the budget (which meant that both were bad in the first place) .. the re-fi mortgage company denied the application (too much risk - duh) so I got a secondary loan at almost double the interest rate .. I ended up 107k in debt and insolvent about half way through .. good list to start with … and as corny as it sounds I looked up Dave and followed his steps to get out of the mess (true story)
@@saulgoodman2018 sounds like the *general* contractor was incompetent. Just because you see something done on the television, doesn't mean anyone can do it.
@Saul Goodman If you yourself don't know what has to be done, you should not get into this business. Prudence behooves you to work for a real estate investor for a while to learn the ropes.
@@sblijheid and that is exactly the point that Ken and George are making in the video … to understand how to manage the financial side and the construction side of this venture requires a level of expertise well beyond watching the BRRRR method on a tik tok video … and without that the expertise , this venture has a very high level of risk
You wrote a long comment bashing on the BRRRR method, but in reality.. you didn’t do proper due diligence on this example, and it bit you. Learn from your mistakes and try again.
These stories are sad to here.They are however quite common.Making money on RealEstate can be very difficult. Sadly there are any number of programs that are proposing this idea of fixing up a property leasing it and making money,that make it sound so easy but the number of variables is endless and you can really have disastrous results if you’re not familiar with the process.
I appreciate how Ken is the only one who doesn't treat George like an intern. Everyone else is just a little bit condescending but Ken is treating him like an actual co-host here.
george is my favorite co-host
i think dr john is ok to him as well. Don't think rachel is too bad to him considering they are the same age.
He's not an intern? 😳
@@barbieblue3336 he's been working there for 10 years lol
@@normajeane507 so glad you said that because I was like...wait a minute, he's an intern? lol
The younger generation hasn’t learned that slow and steady wins the race.
Unfortunately alot of people will be learning this lesson the hard way over the next few years.....
My Mam used to say "You can't put an old head on young sholders" and it's TRUE! We all have to learn things the hard way - for ourselves x
Not only the young generation. Every generation has this kind of people.
Slow and steady seldom wins the financial race. The richest people in the world didn’t get that way by investing a salary over 40 years.
@@privacyplease1556 I'd rather go forwards at the pace of a tortoise than go backwards, which is what happens when you try to do what the richest people in the world do and fail. And that's what happens to most who try to do what the richest do.
George is the best. I love how he brings modern trends into the show.
George made this show 1,000x better IMO
Great idea. This worked great during the pandemic when tenants refused to pay rent and could not be evicted.
If you take advice from someone on TIKTOK you deserve everything that comes your way.
It is remarkable the wealth building power you have once you eliminate debt. I was born and raised in a Detroit ghetto but clawed out and retired early.
Get rid of debt.
Live below your means.
Save and invest.
This. This is truly all it takes. Everyone thinks I'm poor because I will always say "i can't afford that" even though i make double to triple what my friends make. Yet they ALL have the toys and the monthly payments.
95 percent of tiktok is horrible advice. Lets be honest here folks
95% of everything on all of social media is terrible. But for some reason people believe it .
I almost fell into the Whole life infinite banking scheme from watching tiktok, but thank God, I did my due diligence and ran into Dave Ramsey and we've instead went the debt free route, basically changing our lives.
"Banks hate her for this one trick."
I avoid TT for cyber security reasons. Aside from that, I will watch the copies on YT... cooking recipes only lol
only 95?
I tried what she said and never again. I only bought one property. And now i am selling it after years of financial headaches and loses. Thanks for making this video.
you must ve bought in washington dc
I've seen a bunch of youtube videos on the BRRRR method. Sounds like if you get one house fail, your whole system collapses.
“They’re getting rich off their courses”.
Ironic.
Aka "baby steps" 😆
It's funny how many "millionaires" don't know what a millionaire is.
Here's a tip. A net worth of 50K ain't it.
Exactly.
Do you know her net worth or are you just jealous?
@@abrahamflores2566 I wasn't trying to be specific. The point is a millionaire has a $1 million net worth. They don't just have loans on millions of dollars worth of property.
Yup, $1M in debt is not a millionaire.
@@PS_on_youtube 10M in debt isn't either, but you don't know how many properties she might have. Maybe she owns 30 of them. So the point is meaningless.
Dave did not use 30 year debt. This only works when you know what your doing. Rehab is not easy for begginers but has potential to work well when done right. I would recommend buying a class a rental and put down at least 20% where you can still have cash flow. If not don't do it. Never assume appreciation.
And here is the Dave "expert". AKA: slumlord.
When you finish watching this conversation and the ad that plays directly after is promoting a “get rich quick by following my steps.” Got to love the irony.
Debate the guys over at Bigger Pockets.
Bigger Pockets will teach you how to invest in real estate safely while planning for the risks. These guys seem like they don't know anything about how to prepare for things to go wrong.
I don't think they know anything about real estate. Personally, I think the idea is great minus that refi.
But I must admit, the way the girl explains it, I would be sceptical too.
That girl explained the BRRRR method horribly lol. Go read David greens book on the method.
@@sblijheid It's a dumb idea. It's a high risk low reward method.
If she's making sure that the properties cash flow and is saving some of those funds for repairs vacancies etc, and she is getting fixed rate 30 year mortgages then she will probably be just fine. There is always risk with investments. From what I understand Dave was doing 90 day mortgages hoping that the bank would keep extending until he could get rid of the property which is extremely risky. Its a completely different situation. I know the method doesn't align with you're program, but that doesn't necessarily mean its wrong.
I love how tiktok so frequently says that you can be a millionaire, by borrowing against all of your equity.
cause ya can! just don't do it like dave did it when he was in his 20s. But its a very similar strategy!
I prefer my debt free real estate to any real estate I borrowed money for.
What people fail to understand is that the people selling to them are ones making money off of you borrowing against your equity. They are the ones that are becoming millionaires. And the poor saps that fell for the trap are ones trying to figure out how to get out of the mess that they stupidly fell for.
I bought 25 homes this way . Its works but not as easy as she proclaims.
Any advice to get started
after 4-5 homes you have to get commercial financing or hard money
That is the real issue. She makes it to seem like a walk in the park.
Please follow the TikTok advice. I want to swoop in and buy your foreclosure for pennies lol
Most Dave Ramsey viewers won't, but those TikTok viewers will lol
Have you been waiting since 2010? How much longer you think you will wait?
Not before Blackrock does 😂😂😂
@@savageguysi8456 Blackrock doesn't buy individual homes, they want multi hundred unit properties. Now stupid Zillow did, and they're paying the price.
@James Jacobsen
That's not true. These funds have been buying single family homes for a while now. It's a conspiracy theory right now that these big real estate companies collude with this administration to make home ownership unaffordable so black rock can buy them up for a low price if the people sell en masse.
Holy cow - that first loser is a poster child for a victim like 2008. People never learn.
I kinda love the Tik-Tok roasting videos we’ve been getting. You should make it a new series!
Agreed!! Idk if it’s something George has brought up, but I love the content!
Too bad they’re usually wrong. The crux of every Ramsey argument against leverage is “most people are too dumb to use it wisely so no one should use it all.”
Basically, she just explained how to become a real estate arm for the bank. She is a contract worker for the bank. She owns nothing, just skimming a small % for herself.
Perfect summary. Thank you
If you want to scale in real estate, it's actually sound advice. Just got to understand the risk on each property and invest wisely.
Tiktok makes is sound easier than it actually is of course. What happened to all the land lords who own 10 properties or less and couldn't kick out anyone for a year who decided not to pay?
@@zw3565 Lol. Nothing in life is easy. Like I said, you have to understand the risk. However, paying all cash for real estate is dumb.
People who know the secret to making lots of money don't typically share it. Also people like this who had the rent moratorium affect them would go bankrupt.
How to make lots of money isn’t a “secret.” The fact that people think it’s a secret and it’s so complicated is why the best most people can aspire to is being middle class or as Dave likes to call them “everyday millionaires.”
If people who know the secret to making lots of money don’t share it, then do you think Dave is also holding out on us? After all, he didn’t become rich investing 15% of his income. He became rich from creating passive income from real estate and his books.
@@privacyplease1556 And from personal appearances, FPU, RUclips.
@@privacyplease1556 entrepreneurship, literally the key to making millions is either having a successful business or great financial management. Nothing wrong with real estate, but Dave pays cash for it and that's the best and safest way to do it.
@@unlimitedpower4101 Dave pays cash for real estate because his business generates so much cash flow he can. His investment strategies are not magic. Yes paying cash is safest but calling it the "best" method would be up for debate. I am richer for not listening to Dave on this topic and spending years learning BRRRR
Thank you! Thank you! Thank you! Ken is so right. I do the bookkeeping for those course creators. They make more money in their courses than they ever do in the system they are selling.
Now some of them are legitimate and you could make a good living off their systems. But some are straight up trash.
I learned from my father. If something is easy everyone would do it
Look how many of these “gurus” sell some kind of course on top of all this as well. It’s the followers and merchandise they make their actual money from.
Like total money makeover?
@ian fullerton But people do get out of debt with those programs, so I guess they deliver.
@@sblijheid and people build real estate wealth by leveraging debt. To each their own.
Hmmmmm, doesn’t Dave sell a course?
“Become debt free and stay debt free”- Yes 💯‼️
Because this plan worked so well in 2008. Then the bubble burst and a bunch of people who had no business carrying major debt crashed and burned.
In 2008 everyone was getting loans. Right now it's extremely difficult and only wealthy people qualify for mortgages. Even harder to get an investment cashout refi without a ton of equity and reserves. Complete 180 from 2008
@@abrahamflores2566 this is completely bs. Many people get mortgages who aren't wealthy and I know someone that does this method and gets a cash out refi after every place is rented and that person is far from wealthy
not just pay the rent ... you have to count on them to not destroy the property ... the renter kept birds in the kitchen cabinets
Graham Stephen, Kevin Pafrath, Ryan Pineda, Brandon Turner, Chandler David Smith. All examples of RUclipsrs with massive debt who make a ton of money. Debt in appreciating assets can make you a millionaire many times over.
Until things go wrong
These are all (except BT) RUclipsrs and the most of their money is made through monetizing RUclips and selling RE courses. Real RE investors, who you should ask for advice, don't have time for RUclips as they are busy doing deals and scaling the business.
@@AleksandarPopivoda being a real estate investor and a RUclipsr do not have to be mutually exclusive. Even these RE investors who don’t have time for youtube, are utilizing debt as leverage. That’s the bigger point.
This wasn’t a good point to me. It was like a pessimist view to BRRR method. It was all negative. I feel it’s not a get rich quick scheme and you have to KNOW what your doing or have a mentor. MY OPINION.
True. The BRRRR method is actually a good method.
Maybe they are too risky adverse.
the female in the video made it seem so simple, easy, and profitable which it may be for her. But, usually when I hear of people discussing this method they neglect to talk about some of the risks in doing it. I feel like the the girl in the video gave some pros of doing this method and these guys gave some cons. I don't think that most people doing this will have the greatest outcome
@@brownsugga2584 She did, but she's got like what 30 seconds to teach you something? You need to do further research now doubt to see if this is something that can work for you. Personally, I like the house hacking method myself. Less risk, slower growth, but easier to do with all the rest of real life activities to take care of.
In the video though she explained how she became a "debt millionaire" not a net worth millionaire 😁
It works until it doen't
I’ve seen a few people get close to bankruptcy over this.
If you watch a 30 second tik tok then yes that will happen. If you study the process for years and protect yourself it's very safe
@@abrahamflores2566 no it's not lol
@@Billman8686 well elaborate lol. If I have a property worth $450k and I owe $200k I have $250k in equity, and if you educated yourself you would also have 12 months reserves in case of a rainy day. You have to place barriers of protection. If you go YOLO and finance properties at 100% with very little cash flow you are asking to go bankrupt
@@Billman8686 yes it is.
Lol people who are close to bankruptcy who do this just keep buying and refinancing and see if they can debt their way out of bankruptcy.
Its TIK TOK this is the same group of people who think eating Tide pods is ok, it just makes me want to become a bankruptcy attorney
Better advice than the TikTok would be get out of debt, buy a home for yourself, pay it off, then buy a home you use as a rental property for extra income & follow her steps minus the refinancing b.s.
Puts you in a lot better financial position and once that rental home is paid off, all the rental money is profit (except taxes of course)
R F, you left out insurance, maintenance and if you are unlucky a occasional lawsuit. So much for all that profit.
Selling you a lavish lifestyle!!! Not financial peace 🙏🏽
Exactly
I'm sure tik tok has a ton of terrible advice but the BRRRR method isn't really it. It leaves you open to some risk by not paying down your debt. Which is why you do it as a business and not on your own. Also this is 100% not how Dave got into trouble before he was famous. Dave was taking out short term adjustable rate mortgages and over leveraging himself. Then the banks called him on the loans and required payment immediately. If you have a 30 year fixed rate mortgage, the bank can't just decide that you have to pay off the loan in 90 days or they foreclose. It's a big difference.
100%!!! I hate it when people compare the BRRRR method to how Dave did things in the 80s. BRRRR is like playing with a lighter but Dave was playing with a flamethrower
But that's what dave did only quicker and more dangerous no? Why do it with 30yr mortgages and not with 90 day loans if its profitable? That's why its dangerous
@@mannyjeanpierre4062 No. Dave was taking out loans that the banks could legally call due at any time. He didn't go broke because he couldn't make his monthly payments. He went broke because the bank said we want all our money back in 90 days. They can't do that with a 30 year fixed rate mortgage.
@@mannyjeanpierre4062 it's a spectrum of risk. If you were in a car crash would you rather be riding a motorcycle or an SUV? On a 30 year loan you can weather a bad period much easier than on a 90 day mortgage forcing you to pay hundreds of thousands all at once
They always think they are worth a million bucks because they have a million bucks worth of debt. only a m0r0n would listen to or try to defend that.
YES! Proverbs has so much wisdom to be had!
Brilliant work from the RAMSEY team. Keep calling out this horrible advice !
It's made plenty of smart people rich, it's only the people that go Yolo that end up broke
It’s works best if you purchase the property with cash
exactly
Agreed, the BRRR method is better (taking out the refinancing R lol)
It actually nets a worse return on investment if you buy in cash.
BRRRR method: start with buying house!Oh, so simple!
Sure you can make a lot of money doing this method, but it is built on a house of cards. One moratorium, and it’s over.
Not really. Just because it has more risk than cash doesn't mean its a house of cards. Theres a lot of finer details that dont get covered with her dumb tictok video. For instance you have to vet good tenants. All my tenants never missed a payment throughout the pandemic.
Even good tenants can lose their job. There's still some risk. You have to be able to carry it yourself in emergency
@@georgewagner7787 yeah, thats why you have an emergency fund
Or have a issue with the city and your property. One lawsuit and your BK and done.
That's what I said.
George is awesome! He was an awesome add to the personalities.
If you buy real estate for the right price it works like anything. These guys want you to work until you're 65 just to have 1mil.
True. The BRRRR method is actually a good method.
Idk what they are talking about.
Hey Luke. I'm 34 yrs from that mark and already a networth millionaire. Did it by Ramsey method. Not sure why you are in such denial 🤔
@@minidakota318 hey Dak! I followed the BRRRR method and I am a millionaire at 29. Both methods work but one made me a millionaire faster with very little risk.
@@abrahamflores2566 a millionaire doesn't mean a million in debt...
I got a coworker who became a millionaire doing this. Execute it right and you can't go wrong... If you can infinite BRRR then losing the house doesn't lose you a dime.
What she said can work, however I would only suggest doing it if you are already an experienced landlord/property developer.
Pretty sure she's the same gal on the internet that tells people to buy a property as a Primary Residence and then immediately turn it in an Investment Property.
That's called mortgage fraud kids... comes with hefty fines and potential jail time.
Yes it's her. Now I remember where I've seen her before. I believe the money guys had a compilation of bad tik tok financial advice and they showed that clip.
Wow. If you wait a year, it will be fine.
The method is not 100 percent wrong its some truth in it ..
I believe this is true but you don't hear people talking about the risks only the gains and tbh, most people will lose with this
@@brownsugga2584 I have always heard the cons of levereged real estate but it takes constant research not just a 30 second tik toks
Dave would recommend the BRRBR method.
Buy
Rehab
Rent
Build funds to buy the next house
Repeat
Sorry but BRRR works and real estate has made more millionaires than any other industry. Dave’s strategy isn’t the only thing that works. Reasonable people not after a tik tok life have been successful with BRRR since the 80s. All the things they mention as negatives aren’t as scary as they’re leading you to believe, you have to know you have the personality for it.
Dave’s theory relies heavily on mutual funds which also fall victim to the exact same bubbles and pit falls
Yup. It's simple and works great.
I think the strength of the "baby step" method is also its weakness- it is super simple and meant to apply to everyone. The average IQ in the US is 98. About a quarter of our country has an IQ that leaves them ineligible for military service. It's great that there is a totally straightforward plan to get out of debt. Parts of the Baby Step method are good for everyone. But one-size-fits-all never really fits all. If a person is intelligent and responsible and has impulse control, it's completely reasonable to make decisions on your own that the limits of Dave Ramsey's philosophy don't allow for, as long as you understand and prepare for the risks.
I know someone will disagree with me as well. That’s cool, remember there are many paths through this world.
Notice how they find it easy to make fun of a 30 second tik tok but they don't address a 1 hour long podcast by bigger pockets with a similar process(more educational of course). It's like going to a college to make fun of 18 year olds for not being wise yet. They need to debate real experts and not hide behind their fancy studio
It worked then not now 😂…
"she said Tiktok and i forgot everything she said". Hahahahahahaha
These guys are probably very full as they are drinking a lot of that Dave Ramsey Kool-Aid LOL
I wonder how no caller is asking and no host is commenting on "benefits" of "good" let's say real estate debt when it comes to taxes? If you pay for everything in cash... you gotta pay a lot of taxes on your income...
The BRRR method works. Can stuff go sideways? Absolutely. It’s like anything. But to say she’s giving bad advice isn’t fair. She never said “This is a guaranteed easy way to get rich.” She just said it’s what *she* did. There’s plenty of people who got wealthy this way.
I'd believe George & Ken more if they wore a fur
That video George showed made my skin crawl. All these poor kids that have bad parents that allow them to learn from tiktok are the ones that will pay someday for these scams. My goal is to eliminate my mortgage as fast as I can. That's the only debt I have and that drives me crazy. Only the banks get rich off of us borrowing money.
So these people are basically millions of dollars in debt ?
With properties worth twice the debt
Dang!!!! I 100% disagree with the Ramsey hosts. That lady was spot on….. Yes, of course you need to do your due diligence, and study RE investing for a year before starting the BRRRR method. Why does the Dave Ramsey show promote ways to retire at 65 only??? Who wants to retire at 65 when you can retire at 30. People, anyone can find a strategy in RE investing to allow them to retire in 5-10 years.
Think outside box.
God is good.
May Gods will happen in my life.
Love you all.
In a NO risk world, it will work. My portfolio does not call me at 1am about a backed up toilet. Or loud music.
@@alinatamashevich3354 this is a good point. However, you can pay property management. In this scenario, the management will deal with all that nonsense.
@@alinatamashevich3354 also, please enlighten us on your portfolio.
She’s so “wealthy” she can’t afford a good quality video.
its a tiktok buddy, not a hollywood movie production. I can assure you she used an iPhone, the ultimate sign of wealth.
@@alejandrob9657 A smartphone? A device everyone in the first world has? Not exactly the status symbol it used to be...
If you genuinely know what you are doing and actually have plenty of money besides, it seems to work out pretty good.
If you are the average person who only thinks they know what they’re doing and you’re trying to get rich from this and thinking you’re “hacking the system”, there is so much risk and so much that can go wrong that you don’t even KNOW could go wrong that it will probably stress you tf out to the point it’s not worth it. Imo
It's the "have plenty of money part that's the issue. If it's borrowed, you don't have plenty of money. I you feel like gambling, borrow the money, fix up the house, and sell it. You MIGHT stay lucky long enough to make that work once. If you're good at fixing houses. Do this before you have dependents so you can live in someone's back yard when you have your first learning experience.
I love how they and everyone else say housing prices can come down but Ramsey swears that cannot and will never happen. We will see, during covid everyone just had to buy houses they can't afford and overpaid for them. Sounds familiar.
Yeah, but that bankruptcy creates a"motivated seller", and Sparky gets A GREAT deal, for cash.
Lol watched this then I get an ad for NO COST solar!
She was a millionaire debtor!
You guys spent way too long insulting her. But let’s move passed that.
You don’t do this if you’re in debt… obviously. She’s already a millionaire and had a tv show. Obviously things can go wrong. Just like anything in life. Your advice is to take no risks at all in life…. Alright… this video just seems very off.
There's nothing wrong buying a fixer up and fix it yourself to get more value out of the house.
matters how much debt you go in to do it. if you have mommy and daddy to help with the repairs no problem.
I can't think of a worse person to critique real estate advice than Kenneth. Plus, the BRRR method is a very effective approach for building wealth in real estate. But of course, all debt is bad debt, right? Yet, here's Kenneth talking about rental properties having never owned one.
Ya these guys are clowns 🤡
How arrogant of him to say “real estate isn’t going to work out for her” when she literally makes millions of dollars doing real estate and teaching people how to do it. No I’m sure Ken would be much happier if instead of doing what she is doing, that she quit and make the modest salary he makes as a Ramsey personality. There’s a reason Ramsey personalities all live in modest homes and Dave lives in a $15 million mansion. She wants to be like DAVE, not his lackeys.
@@privacyplease1556 Dave is "the lottery winner" selling info as to how "You can be a lottery winner, too! You just have to buy the winning ticket!"
He didn't win the lottery. Quite the opposite. He worked hard and saved money!
The BRRRR Method is a commonly used with a lot of real estate investors. I know a few investors that use this strategy to make a lot of money. It’s profitable but can be very risky. Proceed with caution ⚠️
This sounds like the rich dad plan
it is
Somebody please explain to me why you love debt and reward points more than your love ones?Please tell me why. Thats what it really comes down to.
For anyone reading this who would like another perspective on the BRRRR method, I would encourage you to check out the humble hosts of the bigger pockets podcast and RUclips channel. Take care!
I bet $10 she has a high-ticket coaching program.
AND rents a small apt somewhere.
The massive leveraging of that Tic Toc plan leads to bankruptcy.
Not really because a cashout refi on investment properties requires you always keep 30% equity after the cashout. Dave is okay if you put down 10% on a home so.....
@@abrahamflores2566 Dave is only OK with a mortgage on your HOME.
Investment property = pay cash.
@@fhuber7507 which equals terrible roi.
BRRR sounds great and all, but in reality they're taking the risk of a flip, and rental, and a mortgage. It's literally triple the risk of a usual rental investment.
BRRRR is probably the most relevant strategy in the world. This show is starting to become super cringy.
I know right? It's like people are starting to catch up to other philosophies because of the internet and it's hurting the Dave Ramsey brand and they don't like it.
Nope, not too much supply, we are short millions of homes and apartments. This shortage is going to take awhile to build our way out of it.
This is a new twist on Carlton Sheets. Didn't work then, won't work now.
I haven't even watched this yet but I know Tik tok is cancer
Thank you! It’s that simple lol.
She’s Canadian, As a fellow Canadian that’s horrible advice. Debt is dumb.. plain and simple
Bad debt is dumb. But that’s good debt too!
I am scared of debt, the only debt I have is my house.
Not all debt is bad.
The way she says TikTok though lol
After watching that, I don’t even know what TikTok is now!
This process can actually work, I have tried it and I don't recommend it, the multiple layers make this extremely risky, that being you have to get a distressed property where you do your best to estimate what the repairs will actually be and the length of time they will take (holding costs with no income). Time and money in this inflationary and supply chain environment are factors that are more difficult than ever to predict. So think longer and more money that you thought$$$$$$. Then you have to be able to properly estimate your after repair value an appraiser will attach to the home which adds another layer of risk. Then finally knowing what you will get for rent and what kind of tenants you will get. Then it doesn't end there, once they move in you then find out if someone can actually live in this place you have created and things like finding out the shower upstairs that no one ever turned on before is leaking into the new ceiling you just installed into the basement where your new tenant is living.
It's harder to file for bankruptcy then before.
The TikToker…”using the money the bank GAVE you”.
Dave ramsey listeners…😲😲😲🤦🤦🤦
I really doubt that that lady knows the first thing about renovating a property.
Let me start by saying I love Dave Ramsay's advice for personal finances. It got me out of debt and got me budgeting and I am in a much better situation now because of him so thank you for that. However, where his information lacks is with people who love real estate. If you want to make lots of money and have passive income then real estate and being in debt up to your eye balls is the only way. You have no other option to make it big in real estate.
Ken complaining about tik tokers making money selling courses, while making a youtube video for a company that sells courses, is just great.
This method has been used for decades what's the problem? Can always sell when you get in trouble. Sprinkle in some flips in between sounds like a plan
That B R R R R resembles a person that never stops talking. Could be your neighbor, your in law or your partner 😅
As long as the properties cash flow and you get a fixed mortgage, not sure I see the downside with certain safety features. (Insurance, property management etc...)
"As long as the properties cash flow"
That's exactly the problem. As long as nothing bad happens it works. The problem is in the real world bad things happen.
@@LoyalSolbut with the proper mitigation/saving this isnt an i herently bad idea right?
@@LoyalSol well yeah everything has some level of risk. But if you know the rental rates and build in some extra expenses for repairs and so on it should be ok. Nothing is certain
Her advice is too shallow. Typical for the guru type who has no hand in the business but sells you courses about it.
The least she could've said is that you should get a multi family to minimize income disruptions from vacancies.
what about down payment
she forgot that
the most critical thing is income and down payment
Seriously be settled in your own life before you think about risking to build wealth.
These things like the Ramsey team says are just get rich quick. They may help you build long term net worth but they won't help you set up your life so you're comfortable and secure.
Get a job, work hard, put cash in your pocket and then build wealth.
Nobody said it's not risky, ANY debt is risky but no risk no reward. You're not going to make it saving your few hundred bucks a month you have to take a chance on SOMETHING. BRRR is an actual real estate strategy, these people commenting and including the ones on the show don't know anything about real estate. If you arent actively investing in real estate don't talk about what you don't know...
I remembered two people who gave this advice in the 80s went to jail. I believe the 2nd one use the tapes from the 1st one thinking he won't follow the same path. He did.
This young girl seems to find the same tapes.
This advice is 10000% legal, lol
you wouldn't go to jail from this lol
@@abrahamflores2566 Until you defraud a bank, then ....good luck.
So her advice is to have a ton of debt and zero cash
Cash is trash
@@saulgoodman2018 IF the renter pays......
@@saulgoodman2018 you have obviously NEVER rented...
@@saulgoodman2018 people dont pay rent sometimes. so ITS A PROBLEM. Its why you buy property in the first place. The morthage is still held by you. It has to be paid So you have people living for free off of you. It takes forever to get someone to leave too and then they trash the place. Not paying rent is a HUGE problem. Still living with the parents????
This strategy is super risky, but pretty much anyone who made millions in real estate do this technique. Watch Ben Mallah (besides being the most entertaining person on youtube) He made 500 million from this.
You can’t buy an investment property with no money down anymore guys. Come on you should know this. 25-30% down minimum.
You may not like the TikTok video, but many Investors use the BRRRR Method sucessfully.
But, none of them were anticipating the Moratorium.
"IT'S A TRAP" - Admiral Ackbar