Should I Pay Off Debt Before Buying Rental Properties?

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  • Опубликовано: 21 ноя 2024

Комментарии • 301

  • @Hannahbenowitz
    @Hannahbenowitz 2 месяца назад +136

    The issue is not that growth funds cannot beat the S&P. The issue is that growth funds cannot beat the S&P index funds when you factor in costs and taxes. If a growth stock fund has a 2% annual fee and the index fund has a .03% annual fee, then the growth stock mutual fund has to beat the S&P by 2% every year to truly beat the S&P index fund. This is the problem that you aren't acknowledging that people have an issue with.

    • @HildaBennet
      @HildaBennet 2 месяца назад +3

      Remember that investing in the market carries risks, and it’s important to do your own research and consult with a financial advisor before making any investment decisions.

    • @FinnBraylon
      @FinnBraylon 2 месяца назад +1

      Accurate asset allocation is crucial, and some individuals use hedging strategies or allocate part of their portfOlio to defensive assets for market downturns. Expert guidance is vital for achieving this. This approach has helped me stay finan-cially secure for over five years, yielding nearly $1 million in returns on investments.

    • @PennyBergeron-os4ch
      @PennyBergeron-os4ch 2 месяца назад +1

      I've been looking to get one, but have been kind of relaxed about it. Could you recommend your manager? I'll be happy to use some help.

    • @FinnBraylon
      @FinnBraylon 2 месяца назад +1

      ’Sonya Lee Mitchell’ is the licensed advisor I use. Just search the name. You’d find necessary details to work with to set up an appointment.

    • @PennyBergeron-os4ch
      @PennyBergeron-os4ch 2 месяца назад +1

      Thank you for the lead. I searched her up, and I have sent her an email. I hope she gets back to me soon.

  • @Primitivegarage915
    @Primitivegarage915 Год назад +12

    So glad I listen to Dave. I just turned 30, been making 220-230k a year for the last two years. Paid off all of my student loans in that time, bought a house, paid off all credit card and commercial debt. My credit score hit 820 and my real estate agent wants me to buy 3-4 rentals a year with minimum money down. Lol if I didn’t listen to Dave I would probably be 1-2million in debt right now instead of completely debt free aside from my mortgage.

  • @jimba6486
    @jimba6486 Год назад +121

    I am not religious, but I stick this man’s advice and principles. Everything he says is not cool, popular, fancy, fun. But it is the truth. He will not tell you what you want to hear. He tells you what you need to hear. No matter you beliefs, you can’t change how math works

    • @georgewagner7787
      @georgewagner7787 Год назад +9

      It's because the Bible is true. Proverbs.

    • @blood.of.fenrir5575
      @blood.of.fenrir5575 Год назад

      ​@@georgewagner7787this is dumbest comment on the Internet.

    • @viscious82
      @viscious82 Год назад +2

      Agree. The baby steps are a great personal finance principle to follow.

    • @silverltc2729
      @silverltc2729 Год назад +2

      What is stopping you for studying the bible about other aspects of your life?

    • @cece9282
      @cece9282 Год назад +1

      Amen best comment ever

  • @pgbollwerk
    @pgbollwerk Год назад +20

    Dave’s advice is outstanding for regular folks.
    However, for people who already financially responsible, there can be better ways to do some things. Debt isn’t universally bad for everyone. Seek advice from numerous sources and evaluate all of them.
    You also absolutely need a sufficient emergency fund if you’re owning income property.

    • @amireallythatgrumpy6508
      @amireallythatgrumpy6508 Год назад +6

      People who are financially responsible would be 1% of the population.

    • @Investing123
      @Investing123 Год назад

      I completely agree with you. If you are financially responsible, good debt is a great tool.

    • @gafee2001
      @gafee2001 Год назад

      @@amireallythatgrumpy6508 I think it's a fair bit higher than that

    • @amireallythatgrumpy6508
      @amireallythatgrumpy6508 Год назад

      You're overestimating the intelligence of Americans. @@gafee2001

  • @georgevan2606
    @georgevan2606 10 месяцев назад +2

    Real estate mortgage is like margin in stock. It is the best thing we can wish for when everything works out perfectly. But when things turn the wrong way, we are screwed.

  • @helshabini
    @helshabini Год назад +22

    I listened to you Dave. 5 years ago I started paying down debt. 4 years ago I was debt free and started saving aggressively and investing my savings in index funds. 2 years ago I saved enough and bought my first rental in cash. It brings in pure cash flow. Then I got an 8 years fixed interest mortgage for the second rental, with the mortgage payment almost completely financed by the first rental. In 3 more years, the second property will start generating cash as well, and I can save some more and get the third.
    Yes, it is slower because it is risk free, and I may not end up a billionaire. But there is a 99% chance I end up a very comfortable everyday millionaire.

    • @SeattlePioneer
      @SeattlePioneer Год назад +1

      >>
      You should start investigating stocks as n investment vehicle. Rental real estate is fine, I've had mine for decades. But there is a lot to be said for lowcost investing in stocks.
      Personally, I favor company dividend reinvestment programs ---- DRIPS. Many allow you to buy the first share in the company through the plan, reinvest dividends in more stock and make low cost Optional Cash Investments to buy more stock in the company.

    • @robertfrank6058
      @robertfrank6058 Год назад

      You kind of did until you didn’t. So you are now seeking lots of leverage. It may work out fine but it isn’t Dave’s way. Whatever the result it isn’t his plans result.

    • @SeattlePioneer
      @SeattlePioneer Год назад

      @@robertfrank6058
      DRIPS don't involve debt. They are just ways to buy stocks and reinvest dividends at low cost.
      At least, that seems to be a reply to your post. But it's hard to know just what you were talking about.

  • @texasbornrefinerymade753
    @texasbornrefinerymade753 Год назад +70

    The whole theory of “I have 200k so I’m gonna buy four houses with 50k down on each” that only works in a perfect world, when life comes crashing down then you’re screwed. Dave is a great example of why it doesn’t work, the fact that his bank called all his notes in was an extreme situation but the same could happen if you owned 6 rental properties all with mortgages and then covid hits, or you get diagnosed with cancer, you get laid off from work and have no emergency fund, spouse racks up credit card debt without your knowledge etc…. Etc….

    • @Cash4gold84
      @Cash4gold84 Год назад +2

      Also these people getting convinced to buy these multi family homes, and bumping up the rents are gonna be in for a rude awakening when the tenants choose to no longer pay rent .

    • @Gmac_Greg_M
      @Gmac_Greg_M Год назад +5

      @@Cash4gold84depends on what state you’re in. In Florida where I have a rental property the process to evict takes about 15 days.

    • @Cash4gold84
      @Cash4gold84 Год назад +1

      @@Gmac_Greg_M From start to finish, an eviction in Florida can be completed in two to three weeks. However, it can take longer depending on the reason and whether the tenant contests it.

    • @Gmac_Greg_M
      @Gmac_Greg_M Год назад

      @@Cash4gold84 I’m assuming if the owner is not in the wrong.

    • @mycaddigo
      @mycaddigo Год назад

      Bro stop ….

  • @beckygail9454
    @beckygail9454 Год назад +23

    What Dave is saying is 100% correct.I think the problem is with younger people they don't realize the value of paying properties and debt off fast and then moving on to the next project.

    • @MikeNapoli1989
      @MikeNapoli1989 Год назад +1

      Correct

    • @itzmrchan
      @itzmrchan Год назад +1

      We see the value but we want someone else to pay the mortgage till it’s paid off. After seeing mortgage moratorium is possible though changes risk tolerance. He is right it’s just gonna take more time and you also risk the possibility of missing amazing buying opportunities if 08 happens again.

    • @midkort
      @midkort Год назад

      ​@@itzmrchanInteresting take. Question: If you see the value, why would you wait 30 years for someone else to pay it off?
      If you see the lady you're head over heels in love with, would you wait 10 years to let her know?

    • @erikrohr4396
      @erikrohr4396 Год назад

      ​@@midkortIf a tenant wanted to pay my property off faster for me I'd let them do that too, I just haven't found that tenant.

  • @robertfrank6058
    @robertfrank6058 Год назад +19

    The last thing missing in this story is mental health.
    Big payments are stressful. You know in your gut at any moment things can go wrong and crush you. You have that shoe waiting to drop hanging above your head day and night and you don’t know when it will drop without warning.
    Stress ruins physical and mental health. It’s just not worth it. Forget about these ideas full of stress. Get your sleep and do things a little slower.

    • @mikeharris7658
      @mikeharris7658 Год назад

      Exactly

    • @Peter-zv4dx
      @Peter-zv4dx 4 месяца назад

      Smart comment from obviously a smart and experienced person

  • @jehobden
    @jehobden Год назад +37

    I remember when my dad had a copy of NOTHING DOWN on his desk in the early 1980s. He owned properties in E. Nashville & Gallatin, putting in a lot of sweat equity (and paying me for some of mine), but his tenants often couldn't (or just didn't) pay their rent. He had to sell at a loss eventually. Fortunately he had a regular job through all of that. Since then I haven't had any desire to own any real estate other than my own house.

    • @aolvaar8792
      @aolvaar8792 Год назад +8

      @joshuahawkins1392
      During the Eviction Moratorium, my friend had renters that refused to pay $2600/mo for 22 months.
      Then left to another State.

    • @laubachm11
      @laubachm11 Год назад +1

      It’s why you screen tenants

    • @peten409
      @peten409 Год назад +2

      I was doing business with a guy that had 100 zero money down houses in 2001 after 9/11 half couldn't pay rent he had do liquatate the whole think.

    • @TheFirstRealChewy
      @TheFirstRealChewy Год назад +4

      That's the thing. Rental properties can be great investments, but you can't ignore the risks.
      We tried doing a rental property and OMG, we were so happy when we sold the house even though it was at a loss. We sure learned a valuable lesson.
      Location, location, location! It doesn't matter if it's your own home or a rental home, location is the most important thing. Right behind location is getting the right tenant. Just when you think not finding a tenant for months is horrible, putting the wrong tenant in the unit makes it 10x worse. We realized just how great of a tenant we were when we were renting.

    • @georgewagner7787
      @georgewagner7787 Год назад +1

      We pay an agent to screen. So far, so good. Like the one guy above, only one tenant didn't pay last month and one did but didn't give 30 days notice so we kept his deposit.

  • @jimroscovius
    @jimroscovius Год назад +12

    Debt free is ALWAYS best!! George's advice is top notch!!

  • @deandredavis5264
    @deandredavis5264 Год назад +47

    This man is not just a millionaire. He has helped lots of people become wealthy. It's funny to me how people still discredit him.

    • @amireallythatgrumpy6508
      @amireallythatgrumpy6508 Год назад +1

      @@TheAck201 And millions of others

    • @philipgerry5228
      @philipgerry5228 Год назад +1

      If you want to be wealthy,don’t listen to poor people’s financial advice.

    • @Gmac_Greg_M
      @Gmac_Greg_M Год назад +2

      Ehh some of his ideas are bad. Like paying off student loans debts before taking your 401k match is probably not a good idea long term and would not advise that.

    • @soonermagic24
      @soonermagic24 Год назад +1

      @@Gmac_Greg_Myou’re the only person I’ve seen comment this. I 100% agree. His logic makes sense about changing peoples habits, but why would someone wait to pay 401k? More time in the market is where it’s at. Plus you’re paying more taxes when you don’t. Good comment

    • @VGFightSchool
      @VGFightSchool Год назад

      @@Gmac_Greg_MI’ve never heard him say that about a 401k match… Now, if your student loans are draining you in interest, it makes sense to pay off that debt first.
      Read JL Collins, he’s one of the main proponents of this.

  • @peanutbutterisfu
    @peanutbutterisfu 8 месяцев назад +1

    My buddy grew up super poor in the hood his dad wasn’t around. One day he woke up told himself what are u doing you have one pair of shoes 2 pairs of jeans with holes and 2 t-shirts. He worked as many jobs as he could get, took the bus to work, rode a bike and saved up 40k to buy his first duplex. By year 5 he owned 3 duplexes and by year 10 he owned 10 duplexes paid for and a small business.

  • @TheFirstRealChewy
    @TheFirstRealChewy Год назад +9

    Moving slower right now is what we're doing. It sucks to pay extra on the mortgage instead of investing, but reducing our monthly expenses will be great. Right now we have placed a cap on our monthly spending and will see how well it fits.

  • @TheMattis63
    @TheMattis63 Год назад +1

    I remember Nothing Down! It was a total craze…

  • @getinthespace7715
    @getinthespace7715 Год назад +4

    I'm saving to build my first small single family home to rent. I can build a $500k+ home for $200k-250k. The way the market was.. right now its insane and places are listed for 30% higher than they should be. In my market long term rentals run $25k+ a year, short term rentals run $50k+ a season.
    Once I get the first one built I can buy property the next year, prep it and start building the house in another year. Once I have 3 properties I could quit the 8-5. Once I have 4 I could build a new property faster than every 2 years.
    Once I get over 5 or 6 properties I could quit building rentals and semi-retire VERY comfortably.
    Debt COMPLETELY kills the cash flow.

  • @TheMattis63
    @TheMattis63 Год назад +4

    I remember the Nothing Down... I tried to get in that but didn’t have enough leverage. I dodged a bullet but it sure made sense at the time.

  •  6 месяцев назад

    You have to manage risk, I don’t think a bit of leverage hurts if you have enough emergency funds.

  • @MrCotaman98
    @MrCotaman98 9 месяцев назад +1

    Wife and I are 54, just paid off house and debt free. Took working a lotttttt! Over last 20 years. How can I not finance to buy my first income property without saving until I’m in late 70s before I have all cash?

  • @jasonrodgers9063
    @jasonrodgers9063 Год назад +37

    I am always entertained when a caller is essentially asking Dave's "permission" to go more into debt. Have they never heard the show?!!

  • @MarkNokesGuitar
    @MarkNokesGuitar Год назад +3

    I'm super stoked because I just paid off my mortgage this morning! Now I'm trying to decide if real estate is something I want to get involved in. Regardless, I'm 41 and have no debt, so I'm just ecstatic!

  • @kennethwers
    @kennethwers Год назад +9

    Unless you have multiple family units ($$$) Rentals are a lot of work and risk. It is not easy money.

    • @jayc4715
      @jayc4715 Год назад +1

      Nah

    • @SeattlePioneer
      @SeattlePioneer Год назад

      I looked upon owning, repairing and managing my own rental properties as a well paid, lightly taxed second job.
      That has worked out well for me, and also prevented me from going wild with buying more properties.

    • @georgewagner7787
      @georgewagner7787 Год назад

      It has some risk but not too much work

    • @SeattlePioneer
      @SeattlePioneer Год назад +1

      @@georgewagner7787
      Yes, and has paid off well over the decades.
      Another advantage of buying my own home is that I permanently secured one of the necessities of life at reasonable cost.
      In my current years of retirement, I always have things I can do, too, both at the rental houseI still own and my home as well.
      Thursday I mowed the lawn at my rental. Today I was securing firewood to burn this winter at my home. So I keep myself entertained with activities that often profit me in some way as well.
      I found that paying someone else to entertain me usually comes with a substantial bill, but that I can entertain myself at low or no cost, or even at some small profit.

  • @jwlsngold5026
    @jwlsngold5026 Год назад +12

    The caller keeps separating his and his wife's debts, how come DR isn't questioning...why??!! 🤔

    • @NateDieckman
      @NateDieckman Год назад +1

      Because he had a window to tell his real estate bankruptcy story 😂

    • @RealEstateChit
      @RealEstateChit Год назад +2

      My dude doesn't even have insight in his family debt.. what a shallow marriage

    • @mycaddigo
      @mycaddigo Год назад

      @@RealEstateChitgeeeeze…. Maybe … maybe not …. The assumption ..

  • @unisonosc1617
    @unisonosc1617 Год назад +3

    typical caller: I know the "Ramsey way"
    also typical caller: "should I take out another loan?!!?!"

  • @AFrugalMindsetWithBrandonLee
    @AFrugalMindsetWithBrandonLee Год назад +26

    Debt free and that’s the way you need to be. All these people wanting rentals in ton of debt just don’t get it. There has to be someone who will fail otherwise we all would be rich from real estate.
    I love my low bills every month. When house paid off I’m gone do a back flip

    • @unscripted483
      @unscripted483 Год назад +1

      It's about how you go about doing rentals. You can't just go buying every piece of property you see with the mindset of "I'll make it big in a decade or 1".

    • @rimmyreddy788
      @rimmyreddy788 Год назад

      People don’t want to work. That’s why real estate is big. Buy now retire much sooner

    • @georgewagner7787
      @georgewagner7787 Год назад

      The bank won't loan you more than 1/3 your salary.

    • @clarifyingquestions
      @clarifyingquestions Год назад

      My mgt is paid off - worked my butt off to get it done in ten. Now I watch my propter taxes go up , my utilities go up and maintenance cost go up. Not doing a back flip but very happing with all theses increased expensed, I have no mortgage to pay off. Now my fellow taxpayers think I should pitch in after all my sacrifices to pitch in an help them.

    • @robert549
      @robert549 2 месяца назад

      Once you save up to pay all debt and save to save and save to invest all those dollars have lost serious value over all those years, and you've lost serious time to have your money in the real estate market working for you and getting those properties paid off. Debt does not have to be a "ton". Ramsey may be cute to Texans or the low IQ folks but using debt to get ahead and get ahead faster can be fine and be less risky if you learn how. Waiting until all debt is paid off means you are not having money invested at the same time money is losing value and inflation is going up.

  • @TheDogondone
    @TheDogondone 8 дней назад

    "Chasing your dream the wrong way, will turn it into a nightmare."
    Dave

  • @Nolaman70
    @Nolaman70 Год назад +20

    Keep buying income producing properties.
    You can pay off some of the debt for sure.
    There is good debt and bad debt.
    Rental properties are good debt, Dave messed up so his view is skewed from his personal experience. People can make safe real estate investments, just don't over leverage yourself. Slow and steady wins the race, not like Dave was trying to do. Debt is a tool to be used to get started, snowballing will happen Dave is right about that. I agree with most of what was said here. Minimize your risk, but still take some risk...

    • @FooFan-b3k
      @FooFan-b3k Год назад +7

      What Dave should say is, "I went bankrupt in real estate because I wasn't very smart. I had extreme leverage using short term debt. But you're smarter than I was. You're putting 20-25% down and using fixed rate debt on property that cash flows from day 1. You've also built a nice emergency fund which I never had in case you need to replace a furnace. I didn't do any of the things a wise investor would do and I paid the price. So just don't do what I did."

    • @Nolaman70
      @Nolaman70 Год назад +1

      @@FooFan-b3k exactly 💯

    • @clarifyingquestions
      @clarifyingquestions Год назад +1

      Yes, people can but most dont. This is why DR is so successful. Im guessing there are no trolls worth 200 million in the comment section:). So D messed up and is on his way to becoming a billionaire thanks to his skewed view:)!!!!! Ps D has said theire are other ways to get rich but you called my show and asked me for my advice. His advice is based on the SUREST and fastest way to building wealth. I think it is the SUREST way that you have a problem with.

    • @FooFan-b3k
      @FooFan-b3k Год назад +2

      @@clarifyingquestions His advice IS NOT based on the surest fastest way nor is it how he became so wealthy. His advice is based on the idea that most people are too dumb to do anything but work 40 years and save to a 401K. He's right about that and no one can fault him for preaching to the masses. So most people would be better off following Dave no argument there. Like you said, most people won't. But that doesn't mean there isn't a better way.

    • @TylerRayHamblin
      @TylerRayHamblin Год назад

      ⁠@@FooFan-b3knot everyone who works 40 years and saves in a 401k is dumb. I could say the same about most people who try to do real estate and “not be like those dumb people who work for 40 years”. There is more than one way to build wealth.

  • @mariad4183
    @mariad4183 3 месяца назад

    The 'old fashioned' way is the only way to do it folks!

  • @SeattlePioneer
    @SeattlePioneer Год назад +3

    The first house I bought, which I still live in, was in 1985 ---a HUD repo.
    I had zero credit history.
    I walked into a bank and got a loan without any problem. I actually owned more of the bank's stock than the amount of the mortgage I wanted! The bank asked me to bring in my stock certificates and photocopied them before making the loan.
    I always thought that was a good story!
    Unfortunately, the bank was Washington Mutual. Circa 2008 the bank failed and the value of all that stock went to zero!

  • @alanswanson5642
    @alanswanson5642 11 месяцев назад

    There is a big difference between nothing down and 20% down ( wich can also be obtained by buying neglected houses in good neighborhoods and putting in your own labor) waiting to buy debt frer is ridiculous. You are missing out on all those years of letting someone else's rent money paid down your house. And loosing the depreciation tax break.

  • @2010drive
    @2010drive Год назад

    I agree, everyone stop buying real estate….so I can buy more.

  • @mycaddigo
    @mycaddigo Год назад +2

    DR is really good a playing it super safe. Life is risky….. don’t get over leveraged …..
    But if you can put 20k down on a 100k property (for example) and it has nice cash flow you will do well if your paying attention. There is a happy medium. I respect Dave, but most successful investors don’t operate his way.😊

    • @amireallythatgrumpy6508
      @amireallythatgrumpy6508 Год назад +1

      That works for the 1% of investors who actually has a clue what they're doing, but will destroy the 99% that have no idea.

  • @karlabritfeld7104
    @karlabritfeld7104 Год назад +36

    $750,000 in debt. No money. Smart.

  • @Primitive_Code
    @Primitive_Code Год назад +4

    He ain't gonna do any of what they said. They both have car loans, the fact that his car loan is $21k is a big enough picture of who these people are. The wife will probably think he's a wimp if he did what they told him.

  • @dachicagoan8185
    @dachicagoan8185 Год назад +15

    We don't need anymore rental homes choking the supply of homes for purchase. Enough is enough. Home prices are already at an all time high

    • @SeattlePioneer
      @SeattlePioneer Год назад +3

    • @clarifyingquestions
      @clarifyingquestions Год назад +2

      @@SeattlePioneer Interest rates have gone up and up and up and prices have also gone up and up and up:) You keep sitting up the sidelines waiting for the crash :)

    • @RealEstateChit
      @RealEstateChit Год назад

      Buying right now would be the dumbest thing to do.

    • @mycaddigo
      @mycaddigo Год назад

      😂

    • @clarifyingquestions
      @clarifyingquestions Год назад

      @@RealEstateChit this won't age well:)

  • @Piccolo_Re
    @Piccolo_Re Год назад

    I had a landlord that had over 52 rental homes. There is no way he bought all 52 with cash. The guy was making more in a month than I’d make in years of working. Talk about depressing.

  • @pn4640
    @pn4640 2 месяца назад +1

    Ok, did Dave answer any questions here or he is just talking about himself 🤦🏾‍♀️🤷🏽‍♀️

  • @thegianttreeservice63
    @thegianttreeservice63 Год назад

    You a great Mam Dave thank you for sharing 😎

  • @user-tb7rn1il3q
    @user-tb7rn1il3q Год назад +2

    He needs to be selling not buying more.

  • @therationalistparty9742
    @therationalistparty9742 Год назад +5

    What bites most leveraged investors is that they believe theres such a thing as cash flow on leveraged investments.

    • @jorgesalazar818
      @jorgesalazar818 Год назад +2

      Especially right now. With the high home prices and even higher interest rates doesn't make sense to buy real estate that won't even cash flow anything.

    • @therationalistparty9742
      @therationalistparty9742 Год назад

      @@jorgesalazar818 Well the problem is that people are dreamers and expect instant returns. Im a huge Ramseyite to an extent but I fully believe in leverage as a step up but we have to be realistic when going into it. I personally have no consumer debt whatsoever including personal mortgage but have debt on rentals but every single penny collected from rent goes back into the rental business for the next 20 years or so until we reach our independence goal.

    • @blueishgreen76
      @blueishgreen76 Год назад

      Yea, anyone that's had to rent out their old house when they moved for a job knows all too well that you can make a profit, but cash flow is never positive. However, there is much worse than expecting the rent to pay out more than the mortgage and upkeep, and that's speculating on properties knowing the rent will be lower than the mortgage payment. I was in Florida in 2008. Every doctor, lawyer, and real estate agent was bidding up the prices on low-rent housing, not caring about the rent, because they thought property values would go up forever. By the time the mortgage payment and underwater principle ate away their reserves, they were forced to sell at half price.

    • @therationalistparty9742
      @therationalistparty9742 Год назад

      @@blueishgreen76 You are right on with that. For rentals I focus on total initial investment of $75000 or less for an $1100 dollar a month rent 100% financed over a 30 year term with a projected 15 year pay off along with a projected $500 a month peojected true cash flow after that 15 years on 10 properties. $60k a year with a good management company additional income is decent enough for me.

  • @nn-xm8lz
    @nn-xm8lz 11 месяцев назад +4

    Dave Ramsey's advice is for people with low financial iq and discipline to help them live a nice solid middle class life without shooting themselves in the foot but horrible advice for people who knows how to aggressively scale with smart risk analysis. If I focused on paying off my first home 12 years ago instead of scaling into real estate I'd be so worst off than now. Oh and I survived all the eviction moratoriums just fine.

  • @MeltedCinema
    @MeltedCinema Год назад +4

    Every time Dave Ramsey gets a chance, he plugs his life story. I might plug his life story into a trippy visual.

  • @LisaCPerry
    @LisaCPerry Год назад +6

    Great advice.

  • @rose_6400
    @rose_6400 Год назад +3

    He's going to buy another house anyway.

  • @NickM11561
    @NickM11561 Год назад +1

    I have bought a property each year for the last 6 years. I do not regret it at all. Just put 25% down and get at least a duplex.

  • @MrJoeSmart
    @MrJoeSmart Год назад

    Del Dotto makes great wine!

  • @krassimirpetrov7131
    @krassimirpetrov7131 Год назад +5

    Everyone wants to get Rich on real estate now

  • @roolyfe
    @roolyfe Год назад +4

    My dad got scammed from those $2000 tapes

  • @MrDanbowz
    @MrDanbowz Год назад +11

    That's one thing i hardly ever hear Dave talk about is his compassion when it comes to himself being a Landlord. Think that's definitely something that may get overlooked on videos discussing mortgages.

    • @mattschmitt9924
      @mattschmitt9924 Год назад +1

      The compassion shown was certainly kind, but compassion and business don't have to be together.

    • @MrDanbowz
      @MrDanbowz Год назад +2

      @@mattschmitt9924 Agreed but just saying that hardly ever hear Dave saying about this. It was Dave choice which if he had a mortgage probably couldn't afford to do this.

    • @mattschmitt9924
      @mattschmitt9924 Год назад +1

      @@MrDanbowz A good man doesn't do his good deeds publicly to be admired for he will lose the heavenly rewards. - That's paraphrasing from the book of Matthew and with Dave being so religious I'm sure he has heard that lesson.

    • @MrDanbowz
      @MrDanbowz Год назад

      @@mattschmitt9924 He doesn't need to do it so he is admired. Let's be honest how many people would have thought of helping this way. Highlighting what you can do if your not tied to a mortgage in my opinion would be a good thing even if the landlord does nothing different.

    • @andrewmiller6865
      @andrewmiller6865 Год назад +2

      ​@@mattschmitt9924he didn't bring it up to be admired, but to provide an example of how not having a mortgage enables a landlord to be charitable.

  • @Molly-e1x
    @Molly-e1x Год назад +5

    I have 400k student loans. It will likely take me my life to pay that off so I'm not waiting til it's paid off before buying rental

    • @SeattlePioneer
      @SeattlePioneer Год назад +7

      It sounds like you made one mistake by paying too much for an education.
      Now you are in a hurry to make another by speculating in rental real estate when you are already deeply in debt?

    • @clarifyingquestions
      @clarifyingquestions Год назад +1

      You sure love living in debt. Are you going to be one of these old geezers who whines that you spend your whole life working and have nothing to show for it. Will you then blame the rich, your spouse, the education system, the government, big business for your own freedom of choice. Your life, your choice. Free tip: dont be too stupid:)

  • @jimmymcgill6778
    @jimmymcgill6778 Год назад +12

    No you don't. Don't listen to them. Dave's way is not the only way.

  • @mattcollins4550
    @mattcollins4550 Год назад +1

    Dave there are no $100-$200k properties right now LOL.... but otherwise good advice.

  • @Dreamer-by4nk
    @Dreamer-by4nk Год назад +5

    Live no debt. Owning banks makes you poor.

    • @superblump87
      @superblump87 Год назад +6

      Owning banks would make you rich.

    • @jehobden
      @jehobden Год назад +4

      @@superblump87 and OWEing banks makes you poor :)

    • @Nolaman70
      @Nolaman70 Год назад +1

      I want to Own a bank.

    • @superblump87
      @superblump87 Год назад +1

      ​@@jehobdendepends on what you're doing with the borrowed money.

    • @2010drive
      @2010drive Год назад

      Tell that to Ben Mallah 😂

  • @Brandon-ol1fv
    @Brandon-ol1fv Год назад +1

    Being smart with leverage with the right percentages with your primary income to have rentals is so crucial vs just thinking rent payments will cover you and create an additional income. It just doesn’t work like that. And we own companies that work in the trades hvac, plumbing, and electrical so having that covered helps but still have to assess properly the purchase price and how you can pay when tenants can’t.

  • @lrobie123
    @lrobie123 Год назад +4

    cash only paid for rental properties. most people can not do this

    • @FreeAgent797
      @FreeAgent797 Год назад +1

      My thoughts exactly. Only very few people have the capital to pull that off.

    • @amireallythatgrumpy6508
      @amireallythatgrumpy6508 Год назад +3

      Most people should not be buying rental properties

  • @YTBoof
    @YTBoof Год назад +3

    That guy didn’t hear anything Dave said

  • @JeremyRussellMusic
    @JeremyRussellMusic Год назад +2

    In baby step 3. I love the idea of real estate. But I plan to do it debt free.

  • @josephstupar3372
    @josephstupar3372 Год назад +1

    Pay off all consumer debts stack up at least 10-20k liquid per property then go buy another. I didn’t mention if you have the cash to cover all payments and some major repairs you will be fine. Have that sitting in a high interest savings account making 3-4%

  • @aaronmurphy8796
    @aaronmurphy8796 Год назад +2

    It’s great how these people call in and ask what he thinks when what he thinks is available for free all over the internet .
    I personally buy real estate and use debt . But I already know Dave doesn’t think I should do that . Not gonna call to ask him if he thinks I should .
    I guess at least they help make the show .

  • @jimmay1988
    @jimmay1988 Год назад

    "She didn't have a Landlord problem, because her landlord didn't have a mortgage problem." This is how charity works.

  • @erikrohr4396
    @erikrohr4396 Год назад

    Did Dave imply that almost no one is sucessful from real estate investing with mortgages? That's obviously not true!

    • @amireallythatgrumpy6508
      @amireallythatgrumpy6508 Год назад

      Almost everyone with a mortgage is unsuccessful.

    • @erikrohr4396
      @erikrohr4396 Год назад

      @@amireallythatgrumpy6508 Most successful real estate investors have mortgages.

    • @erikrohr4396
      @erikrohr4396 Год назад

      @@amireallythatgrumpy6508 and there are many successful real estate investors who use mortgages. "Many" is an understatement actually. Do you disagree with that?

    • @amireallythatgrumpy6508
      @amireallythatgrumpy6508 Год назад

      Nowhere near as many as the number of unsuccessful real estate investors who try to use mortgages @@erikrohr4396

  • @stevenjustice105
    @stevenjustice105 Год назад +8

    Dave needed a better lawyer to read his contracts.

  • @bass3do
    @bass3do Год назад +3

    I thought he was supposed to sell the houses?? Like where does Dave stand on this.. so confusing.

    • @neilsmith9066
      @neilsmith9066 Год назад +1

      Dave is for rentals and Flipping as long as it’s paid with cash

    • @bass3do
      @bass3do Год назад

      He didn't tell him to sell the rentals

    • @neilsmith9066
      @neilsmith9066 Год назад

      @@bass3do he knows if he pays one rental off then he can pay 2 off then snowball it and be a millionaire in 15 years

    • @JakeStewart1343
      @JakeStewart1343 Год назад

      ​@@bass3doI heard a different video where he asked the guy if he would feel better selling his 3 rentals and having a certain lower amount of debt or where he stood at the moment. He also asked the guy what he was cash flowing. The answer wasn't too much but at least he did have cashflow.
      This guy obviously wants more, so he didn't ask him that question.
      The caller wanted to have a few rentals for retirement, so Dave said keep them and attack all debt.

  • @RealEstateChit
    @RealEstateChit Год назад +2

    This is why financial knowledge should be a thing in schools.
    My dude is 34 and asks a question like this.

  • @zachgreen759
    @zachgreen759 Год назад

    "Turn that house into a ministry"

  • @zacharybohlman4069
    @zacharybohlman4069 Год назад +11

    This dude definitely went out to buy another property

    • @Primitive_Code
      @Primitive_Code Год назад +1

      He will. No point in calling really. Enjoy NJ life.

  • @JasonGroom
    @JasonGroom 11 месяцев назад

    Because Dave made stupid investments in a really stupid way, a way that people knew, even when he did it, was stupid, and that means that leveraging debt and risk is a bad idea.

  • @geezusfreek1
    @geezusfreek1 Год назад

    Bro...your gonna pay the rent or get out..i dont play like that.

  • @Jonathanped
    @Jonathanped Год назад +1

    How do you buy a house without going into debt after going bankrupt? And then how do you accrue millions of dollars worth of real estate without taking on loans? I don’t understand.

    • @amireallythatgrumpy6508
      @amireallythatgrumpy6508 Год назад

      It takes 30 years but it's doable.

    • @SeattlePioneer
      @SeattlePioneer Год назад

      No one will giv e a fig about your BK if you have the money to pay cash for a property.
      I bought the house I live in now as a HUD repo in 1985, bought on a 95% mortgage,
      I bought a rental house in 1986 that was also a HUD repor on a 95% mortgage.
      I bought a rental house I still own and rent out in 1987 for CASH! Very fast and easy closing!

  • @laz7354
    @laz7354 Год назад +1

    TL;DR: Yes.
    Edit: you had better get on it now, as real estate softens in the next 3 to 6 months those banks will be calling in your notes!

    • @laz7354
      @laz7354 Год назад

      I'd sell two now, pay off the third, and be safe: now.

  • @mohammedkj1239
    @mohammedkj1239 Год назад +3

    I personally don’t take any debt, in 2017 i got chronic disease and thank god i don’t have debt so what i end up doing is graduated from my college in 2017 and back living with my parents and thank god they saved me because i can’t work and my memory are very bad so officially i am done working. If i am in debt hollllllllly 😂 that is why i always say never take a debt because you don’t know what is going to happen to you in 5 years, i was athletic and workout for 9 years and completely healthy and smart and my score are great. But one day i got the news ans my life is destroyed. I knew there are some kids may say oh in usa they forgive you your debt blablabla. Not everyone from the usa so a rule of thump if you don’t have don’t buy it, because risk it’s not a joke. I had a Ukraine friend he had a gym before the W** happen and he is 150k in debt, now the gym is piece of metal worth 1000$ and he need to pay 150k 😂 he told me everyday he barley can sleep because of debt. He is working in Germany everyday to pay his debt.

  • @vince8520
    @vince8520 Год назад +1

    I bet the 52k in the money market yields more than all his rental properties.

  • @victorkeffin-g4x
    @victorkeffin-g4x Год назад +1

    Can someone explain how would paying off a mortgage at 2% interest rate and making less down on a new property (primary home) at 7% interest makes sense. Shouldn’t it be that you make as much down as possible on the new home at 7% rate ?

  • @marcenelj
    @marcenelj Год назад +3

    They didnt answer the guy's question.. he wanted to know whether he should sell his rentals or not

    • @jiangpkpful
      @jiangpkpful Год назад +1

      No he wanted to know if he could buy another one

    • @clarifyingquestions
      @clarifyingquestions Год назад

      I think she will stick with DR advice.

  • @chesspwn7457
    @chesspwn7457 Год назад +1

    You advise a certain way, no exceptions, and I'm not following that, what do you suggest I do? Umm... we suggest what we always suggest and for you to follow our advice.

  • @gabz91110
    @gabz91110 Год назад

    Dave is talking about a specific situation of individuals who buys with nothing down and refinance at a higher value than the actual reselling value of the house. This was quite common 20 to 30 years ago. He is than taking this unique exemple to justify recommending that people pay off all of there debt before investing. Now there is absolutely no business or real estate enterprise or REIT that follows this principle. If you have 20 to 40% equity there is absolutely no chance all of you loans are going to be called. Just keep a nice safety net and you will be fine. Keep enough cash to cover one year your loans payment and an average of 30% equity in all your properties. This is extremely safe. There is absolutely no need to go beyond that.

  • @pauljensen4773
    @pauljensen4773 Год назад

    With 9% mortgage rates now, this is good advice.

  • @marymccann6110
    @marymccann6110 Год назад

    Something tells me that Dave was talking to a brick wall during this entire call.

  • @ForkMcGee
    @ForkMcGee Год назад +1

    surprised this comment section isnt losing their fucking minds

  • @JakeSpradlin2
    @JakeSpradlin2 Год назад +3

    I am about to move and I’m renting out my first house. Mortgage is at 3.375% and is $825 PITI monthly. The home will rent for $1600. Knowing this, I’m STILL nervous about the debt. I hope it goes well

    • @mycaddigo
      @mycaddigo Год назад +1

      Normal to be nervous… does the 825$ year include taxes ?

    • @JakeSpradlin2
      @JakeSpradlin2 Год назад +1

      @@mycaddigo yes! Taxes insurance and mortgage

  • @nynick716
    @nynick716 Год назад

    I remember reading Robert allen books about 20 years ago

  • @alberts2208
    @alberts2208 Год назад +4

    Ramsey is able to buy hundreds of million in real estate all paid for because he makes money with his show offering advice. However most of us have regular jobs earning far less. You can accumulate a real estate portfolio but in a smaller scale unless you earn ramsey salary.

    • @amireallythatgrumpy6508
      @amireallythatgrumpy6508 Год назад

      Most of the money he makes is NOT from this show. It's from the other things his 1100 employee business does and the money the real estate he already has brings in

  • @bocimino463
    @bocimino463 Год назад

    Better than--

  • @IgoOutlateAtnight
    @IgoOutlateAtnight Год назад +3

    Dude sounds like he is in his 20s...not 30s

  • @YoPhocFays
    @YoPhocFays Год назад +3

    Daves way is safe.... but really slow

  • @tshandy1
    @tshandy1 Год назад +1

    Don't interrupt me. I haven't told you that one of those two guys who got rich is me!

  • @langasanders1337
    @langasanders1337 Год назад

    Let him do it his way 🤷🏽‍♀️🤷🏽‍♀️🤷🏽‍♀️

  • @jillgott6567
    @jillgott6567 Год назад

    Pay off wife's car TODAY,credit card next then his car. Once those are done then work on the lowest debt on rental, once it is paid off, hit the next so on. KEEP up with payments on the primary house.

  • @jayc4715
    @jayc4715 Год назад

    The moratorium on evictions was deemed unlawful by the supreme court

    • @JPS1990
      @JPS1990 Год назад +1

      Your right but what about all the back rent the landlords are owed? They just have to eat it and get out of liberal states

    • @jayc4715
      @jayc4715 Год назад

      @@JPS1990 my point is that Dave keeps bringing up old shit..that no longer applies.

    • @amireallythatgrumpy6508
      @amireallythatgrumpy6508 Год назад +1

      @@jayc4715 Doesn't mean it won't happen again. This is something that must be considered by potential landlords.

  • @NicholasJonesCPA
    @NicholasJonesCPA Год назад

    Buying at 70-80% isn’t a good deal. That’s why he went broke. I buy at 40-50% on the dollar. Most are trashed houses and we have cheap good labor. Really slow labor but we don’t pay much. We pick up tax sales and foreclosures and off the market houses. He got rich from selling books so idk why people ask him about real estate. He obviously was over paying.

  • @georgewagner7787
    @georgewagner7787 Год назад

    I had to wait to pay off the first rental property before I could buy a house for myself. Unfortunately prices have risen in that area and interest rates are up so I can only buy half the size of what I originally wanted. But I have to get it now so

    • @SeattlePioneer
      @SeattlePioneer Год назад +1

      No, you don't. With interest rates rising, real estate prices can be expected to crash in the next two or three years. Wait to buy until then.

  • @drewjt50
    @drewjt50 Год назад +16

    Dave and the caller are the reason why regular people who just want to own a house can’t.

    • @jayc4715
      @jayc4715 Год назад +7

      Nah

    • @thejubbinator1065
      @thejubbinator1065 Год назад +7

      Truth. Hard to be motivated to save for a house when rent inflation outpaces raises, promotions, and even a 2nd income.

    • @Mr_Fairdale
      @Mr_Fairdale Год назад +2

      Such cope

    • @amireallythatgrumpy6508
      @amireallythatgrumpy6508 Год назад +8

      No, it's usually due to their laziness

    • @John3.36
      @John3.36 Год назад +2

      When it crashes they will go bankrupt, then the prices will go down.

  • @jakejohnson7714
    @jakejohnson7714 4 месяца назад +1

    Dave is overrated and full of BS - the only thing I agree on is that dept free is good

  • @pauldurand1890
    @pauldurand1890 Год назад

    During covid landlords didn’t need to pay there mortgage. Even if there renters paid there rent - an advantage that renters should consider when fearing bad situations like Ramswey

  • @markb2007
    @markb2007 Год назад

    This guy sounds like many “investors “ where they aren’t concerned by the debt or amount of it, so long as it cash flows.
    I’m not terribly smart but I like paid for real estate.

  • @benjaminhough8804
    @benjaminhough8804 Год назад

    Why not just pay off the debts and make more profit when the tenants pay their rent? I don’t get why you’d stretch yourself so thin and make a little bit of money across a whole ton of risk. Why not make a ton more profit with very little risk? Once you aren’t paying mortgages, a whole lot more of those rent payments go into your pocket. And that’s BEFORE you factor risk in.

  • @jimmymcgill6778
    @jimmymcgill6778 Год назад +4

    We all knew that Dave was going to go into how he went bankrupt.
    Dave think he went bankrupt and did it the wrong way. He thinks everyone is like that.
    Not everyone is like that. No on have any empathy for him.
    Dave uses all these strawman arguments.
    But yet never asked him how much he makes on them?

  • @dandiaz84
    @dandiaz84 Год назад

    Everyone just pay all your bills and when debt free that’s when you should invest lol. Everyone that waited til now missed out on lowest interest rates and crazy low housing prices

  • @Treerootz1
    @Treerootz1 Год назад +2

    So he’s broke basically lol

  • @markkkwall
    @markkkwall Год назад +6

    I would rather know Robert kiosaki’s advice on this not Ramsey.

    • @finfitology
      @finfitology Год назад +3

      His current advice is sell everything. Buy silver 😂

    • @JakeStewart1343
      @JakeStewart1343 Год назад +6

      ​@@finfitologyalso to buy his programs 😂

    • @jacobo9611
      @jacobo9611 Год назад +2

      @@JakeStewart1343I like his books but went to his seninar and the pitchman started crying about his dad being beaten down by money, I rolled my eyes and left, lol

    • @aba1791
      @aba1791 Год назад +1

      @jacobo9611 I hope it wasn't one of those $5000k 3 day finance retreat though. I'd be in tears if I paid that much and left within the hour.🤣
      Ok. Jokes aside how much was the seminar, if I may ask?

    • @jacobo9611
      @jacobo9611 Год назад +3

      @@aba1791 i had that twinkle dollar signs in my eyes and went to the sales pitch at a hotel. I googled kiosaki scam when the dude was crying. I didn’t buy anything but remember him saying Robert likes when people act fast and half the room runs to the back 🤦🏻‍♂️