Dave ramsey realestate (by newbie landlord [WA]) Sep 30, 2020 4:16 PM
Dave ramsey realestate (by BRAD 20,000 [IN]) Sep 30, 2020 4:36 PM
Dave ramsey realestate (by Smokowna [MD]) Sep 30, 2020 4:40 PM
Dave ramsey realestate (by John... [MI]) Sep 30, 2020 5:07 PM
Dave ramsey realestate (by Pmh [TX]) Sep 30, 2020 5:12 PM
Dave ramsey realestate (by Pmh [TX]) Sep 30, 2020 5:25 PM
Dave ramsey realestate (by JR [ME]) Sep 30, 2020 5:44 PM
Dave ramsey realestate (by Deanna [TX]) Sep 30, 2020 5:48 PM
Dave ramsey realestate (by NE [PA]) Sep 30, 2020 5:49 PM
Dave ramsey realestate (by Pmh [TX]) Sep 30, 2020 5:56 PM
Dave ramsey realestate (by Robert J [CA]) Sep 30, 2020 6:19 PM
Dave ramsey realestate (by 6x6 [TN]) Sep 30, 2020 8:36 PM
Dave ramsey realestate (by Nicole [PA]) Sep 30, 2020 9:34 PM
Dave ramsey realestate (by Smokowna [MD]) Sep 30, 2020 10:45 PM
Dave ramsey realestate (by myob [GA]) Oct 1, 2020 7:53 AM
Dave ramsey realestate (by MMIT [VA]) Oct 1, 2020 9:13 AM
Dave ramsey realestate (by S i d [MO]) Oct 1, 2020 10:13 AM
Dave ramsey realestate (by John... [MI]) Oct 1, 2020 3:27 PM
Dave ramsey realestate (by Bill [KY]) Oct 1, 2020 4:12 PM
Dave ramsey realestate (by Hoosier [IN]) Oct 1, 2020 8:30 PM
Dave ramsey realestate (by S i d [MO]) Oct 2, 2020 2:08 PM
Dave ramsey realestate (by Raj [FL]) Oct 2, 2020 3:01 PM
Dave ramsey realestate (by George [NY]) Oct 2, 2020 4:13 PM
Dave ramsey realestate (by Ray-N-Pa [PA]) Oct 2, 2020 4:33 PM
Dave ramsey realestate (by 6x6 [TN]) Oct 2, 2020 4:56 PM
Dave ramsey realestate (by Pmh [TX]) Oct 2, 2020 5:13 PM
Dave ramsey realestate (by 4G1R [NC]) Oct 2, 2020 6:17 PM
Dave ramsey realestate (by Ray-N-Pa [PA]) Oct 4, 2020 11:19 AM
Dave ramsey realestate (by John... [MI]) Oct 4, 2020 4:31 PM
Dave ramsey realestate (by Peter [NH]) Oct 5, 2020 8:12 PM
Dave ramsey realestate (by JG [NV]) Oct 6, 2020 1:18 AM
Dave ramsey realestate (by Nicole [PA]) Oct 6, 2020 11:53 AM
Dave ramsey realestate (by Cjo’h [CT]) Oct 8, 2020 9:27 PM
Dave ramsey realestate (by Cjo’h [CT]) Oct 8, 2020 9:32 PM
Dave ramsey realestate (by Cjo’h [CT]) Oct 8, 2020 9:42 PM
Dave ramsey realestate (by Kurt [MI]) Oct 9, 2020 8:06 AM
Dave ramsey realestate (by newbie landlord [WA]) Posted on: Sep 30, 2020 4:16 PM Message:
I was watching Ramsey on youtube recently about cashflow and debt. he had a caller (new guy) call in about how he is making money from his realestate even though it has debt on the properties. He asked ramsey about the returns on this and is there such thing as good debt.
I thought Dave gave a decent answer, even though I may not 100% agree with him. What is yalls opinion on Dave ramsey real estate advice? --174.21.xx.xx |
Dave ramsey realestate (by BRAD 20,000 [IN]) Posted on: Sep 30, 2020 4:36 PM Message:
Newbie,
Love Dave! SOLID financial advice EVERYONE should learn. I teach his course at our church.
Overall, debt is risk. Things happen. Just look at the last 6 months and the gazillion businesses failing due to debt. How many LLs will lose their investments over debt because the GOVT! changed the game?
God clearly says you are SLAVE to the lender. How much slavery do you want?
Debt is like fire. When used cautiously it can help you reach your goals. Unchecked you will ruin you and your family.
The very debt that helped me build my RE portfolio took us to our knees in the Great Recession. Several local LLs lost everything.
My fear is newer investors don't believe me and older investors have forgotten.
The banks LOVE you when the economy is flowing. They will fawn over you to give you more and more money.
The MOMENT things turn, and the economy can turn overnight, the bank becomes your enemy. "Sorry Brad, it's just business. We're calling your loans." (means pay all loans NOW)
I was also a slave to the banks for the 30 years of the loan. I sweat, bloodied my fingers making repairs, took all the legal risk, picked up poo and diapers and needles...I made the BANKS rich while I played the long game with litel to no profit for 30 years.
Paid for houses are glorious! Our loans are cycling off and we are making a lot of money...after 30 years.
Cashflow: rental houses cost much more to maintain than folks allow. You need to set aside $200-400 per month for maintenance and vacancies as you run your numbers. Roofs and furnaces don't wait.
And not every city is a good place to invest in rentals. Areas with high prices, stupid laws...can leave you broken.
It's a good business when done right.
BRAD
--73.102.xxx.xxx |
Dave ramsey realestate (by Smokowna [MD]) Posted on: Sep 30, 2020 4:40 PM Message:
Whatever Dave Ramsey says is good to listen to,
What Brad 20,000 wrote is music, harmony....it is a brilliant symphony and should be cherished.
--108.28.xx.xxx |
Dave ramsey realestate (by John... [MI]) Posted on: Sep 30, 2020 5:07 PM Message:
In my opinion, Dave is great for the many, many people (vast majority I might even say) that lack financial control and tend to use debt poorly.
However, I do not think he is for everyone. I think Dave is overly cautious when it comes to debt -- which is fine because he speaks for the masses, not for every individual.
There are some people -- many of us landlords, for example -- who have learned to use debt as a tool to move forward. We're not out wasting money paying $800/month for a car that we can't afford. That's a very different use of debt than financing a rental.
Some here seem to disagree with that and think that everything Dave said should be gospel and followed to the letter by everyone. But I've found that almost everyone here that says that also appears to be a "do as I say and not as I do or did" sort of person.
If they REALLY believed Dave like they say they do, then they should be selling off rentals to pay off any remaining mortgage debt (which some will admit that they have, but don't sell others to get out of that debt). They just keep telling others to follow Dave and "do as I say, but not as I did"... :)
Just my 2c. Maybe only 1.4c since I'm half Canadian...
- John...
--67.209.xxx.xx |
Dave ramsey realestate (by Pmh [TX]) Posted on: Sep 30, 2020 5:12 PM Message:
I am always amused when LL denigrate renters who say God Bless but then spout the borrower is a slave to the lender... a smart borrower is master of his/her own destiny. I borrow $ to make $. The lender lends $ to make $. a win win for both. --107.77.xxx.xxx |
Dave ramsey realestate (by Pmh [TX]) Posted on: Sep 30, 2020 5:25 PM Message:
quite frankly Brad if you never made any $ you have always been in the wrong business. my two US cents. 1.40 in loons. --107.77.xxx.xxx |
Dave ramsey realestate (by JR [ME]) Posted on: Sep 30, 2020 5:44 PM Message:
I love Dave Ramsey and think his advice is spot on for about 95% of the US population. May be not be the most appropriate advice for many on this board. His advice to save up and buy rental properties with all cash is just not practical for 95% of people and just isn’t how it is done 95% of the time.
Perhaps the single best aspect of investing in real estate, and there are many, is the ability to use leverage to supercharge your return on invested cash, and supercharge your wealth creation. SOrry, but that’s just the way it is. Is it better to be vastly wealthy and have no debt, sure, but many of us did not find ourselves in that position when we were starting out.
So use debt wisely, for the right things and ride that risk to riches.
--192.159.xxx.xxx |
Dave ramsey realestate (by Deanna [TX]) Posted on: Sep 30, 2020 5:48 PM Message:
If I recall, I think Dave Ramsey's path was influenced by taking huge losses in real estate---
"Dave has said he had a 4 million dollar real estate portfolio and a net worth of one million dollars when he was 26. Then the banks called his 90-day loans due. He could not pay them off, and he went bankrupt."
But it's also---
"The truth is, real estate isn't what caused Dave to lose everything. It was debt. Dave still believes real estate is a great investment — for the right type of investor ..."
And a little deeper, he's obviously still involved in the biz to this day---
"You should never invest—even in real estate—with borrowed money. And, essentially, that’s what you’d be doing if you didn’t pay off your mortgage and used your savings to buy an investment property.
Cash is king in the world of real estate. Whether you plan to flip a house—buy it cheap, fix it up and sell it for a profit—or keep it as a rental property, you should only buy with cash.
The Right Fit
Real estate investments can give you a greater return than a mutual fund investment, but it’s a lot more work, too. Dave calls this the hassle factor.
To find out if you have what it takes to be a landlord, Dave recommends you start with low risk—one small house or condo. Your renters will likely be lower income, and that can be good and bad: Good because they will probably be low-maintenance, but bad because collecting rent from them may be difficult. But that’s the best way to learn the ropes of being a landlord.
If you don’t want to be a landlord, you can invest by flipping houses. In addition to saving up the cash to do a flip, you'll need to study the market and have a realistic budget for repairs.
Some Final Tips
Keep these tips in mind while you’re considering real estate as an investment:
Be patient and look for deals. The better the deal, the better your potential return on investment. Buying foreclosures is a good way to get a deal if you shop smart.
Don’t buy an investment property for the tax write-off. You’ll make more money investing in mutual funds.
Consider better tax advantages. After you’ve done 30 or more deals, you can consider buying and selling real estate within a self-directed IRA. That means your investments grow tax-deferred. Talk to an investment Endorsed Local Provider about this option.
Work with a real estate professional you can trust. With all the experience Dave has in real estate, he still uses a real estate agent. If you’re ready to buy or sell property, talk with one of Dave’s real estate Endorsed Local Providers today!"
--137.118.xx.xxx |
Dave ramsey realestate (by NE [PA]) Posted on: Sep 30, 2020 5:49 PM Message:
There is a risk, but so is owning rental property in the United States now. Or anywhere for that matter. It's like anything else, if you go at it blindly, you should expect to get your butt kicked. If you are extremely reserved and purchase and remodel with a ton of equity so you can get out from under it in a split second if you have to, you're better off in the long run.
This is a tomato to-MA-to discussion. It's comfort levels, it's personal risk, it's financial principles, it's religious principles, etc. You have to know yourself and what works best for you in your situation. --70.44.xxx.xx |
Dave ramsey realestate (by Pmh [TX]) Posted on: Sep 30, 2020 5:56 PM Message:
blah blah blah re: ramsey. he wasn’t smart then & his experience was going bk. I have been in the business 25 years and many here a long time also. who you going to call - a successful RE investor or someone who wasn’t. --107.77.xxx.xxx |
Dave ramsey realestate (by Robert J [CA]) Posted on: Sep 30, 2020 6:19 PM Message:
I've gone to dozens of real estate seminars offered by real estate gurus, such as "Rich Dad Poor Dad" Robert Kiyosaki, Mike Homes, David Lindahi, Jeffrey Taylor and so many others.
I have learned many important tools from each seminar. I have even purchased books, audio tapes, forms and news letters.
But I have many landlord friends that LISTEN TO TALK RADIO LIKE IT AS GOSPIL. These friends don't take notes or write down important information heard over the radio. Instead they "Purchase" something from the radio host and end up NEVER READING A SINGLE COMPLETE CHAPTER.
I like to learn from someone who's actually and investor in real estate. They practice what they preach. Examples are Mr. Landlord, Jeffrey Taylor. At every seminar I've had the privileged to attend, Jeffrey has a Question and Answer period and we learn from important skills from other investors-- a shared experience.
My radio listener friends go get great insight from talk radio. But obtaining a piece of the puzzle won't fully help them dealing with actually tenants. Examples:
A) You put one wrong item in a 3 day notice, then your case will be laughed out of court the day of trial....
B) You allow a tenants violation to continue over 30 days, then you've agreed to allow the tenant to do that in their tenancy.
C) You raise rent because you can and your tenant leaves -- leaving behind a mess and a load of repairs. You are busy at work and have a new born child, so instead of getting the rental ready, you wait months until you have the time. If you only TALKED to your tenant and understood they have money trouble and can barely pay the current rent. You could have then asked the tenant if you can't afford the proposed raise, "What can they handle"? Something is better than nothing, while keeping your tenant happy and the unit rented.
In principal every avenue of knowledge has it's place...
so long as you do your homework and get all needed information..
--47.155.xx.xxx |
Dave ramsey realestate (by 6x6 [TN]) Posted on: Sep 30, 2020 8:36 PM Message:
I like this site and learning from these awesome LL's. I am even learning from this post. --73.120.xx.xxx |
Dave ramsey realestate (by Nicole [PA]) Posted on: Sep 30, 2020 9:34 PM Message:
I think debt for a growing business is almost a must. Look at the balance sheets for almost any business - they all have debt. If you are finished buying properties, then yes, pay them down as quickly as you can. I have never had a bank call any loan. I am not even sure they ever "call" a mortgage due. A 30 year loan is a 30 year loan.
Right now, with interest rates so low, I am actually incurring new debt ... for no reason other than it's so low. I don't want or need the money but the small amount of interest I'll pay annually is offset by deductions and interest/dividends from those same funds. Should I want to go on a buying spree if housing values drop significantly, I'll be set.
I just paid off a mortgage yesterday ... my principal and interest payment was $238.43 a month....pizza $$$ for when my grandkids are here on the weekends. --72.70.xxx.xxx |
Dave ramsey realestate (by Smokowna [MD]) Posted on: Sep 30, 2020 10:45 PM Message:
Nicole, you outlined one of the main reasons which makes me hope the economy keeps rolling along. As in, people keep buying homes and the velocity of our money doesn't slow down.
Another being, I believe people simply want to work, they are hooked on remodeling, gardening, and won't sit still. Spending on their homes is simply what a person does these days - even when they must use their CC.
.....contrary to what Dave Ramsey may have them do
--108.28.xx.xxx |
Dave ramsey realestate (by myob [GA]) Posted on: Oct 1, 2020 7:53 AM Message:
When we started out there was Robert Allen and his nothing down. We took a weekend (3 days) seminar in Atlanta, April 1986. We took an Al Lowery course then -- he didn't teach it but guess his name was on the marquee. Al also had a 5.25 inch floppy that helped calculate ROI. Man oh man were we green. Al also had a tape included with his program called the BLUE STONE. I would listen to that tape and may have been brainwhased by it????
RAND (robert allen nothing down) we were one of the original members (100) -- had to drive 60 miles each way to attend meetings in Marrietta. YADA YADA YADA
Point I'm trying to make- follow one player-- read just one book-learn just one way to buy RE-- then buy a shovel and dig a hole. You know many offer so many products here and many off online instructions. YOU MUST FIND what fits you.
Take from here and there-- yes even in leases and approaches to buying. Books-- I brought a book about loans and used that to borrow 10K and buy 3 rentals. Stop waiting on the perfect deal-- there not out there. You have to make it your own.
During some years I offered more than the seller was asking (VA) But the deals were 100% or 95% financing and we were getting 5% back from our Realtor to compensate us for our fix ups. So did paying more hurt? Heck no. Offering 2 or 3K more to be assured of the property was nothng over 30 yr loan.
One of my best memory's was taking 10 of my friends and my son to see ZigZigler in Atlanta. He put on a show and the stadium was packed. Bush was there- Normal Swartzcouff was there and of course Zig. That's when I decided to go all the way with this-- not just my tippy toes.
Put your knowledge out there and pull from it to make deals and work out, not just deals,but working out problems in RE.
ALLEN,RAMSEY,ZIG,LOWERY,COOK each and everyone had offerings to learn by. Many names I can't even remember. --99.103.xxx.xxx |
Dave ramsey realestate (by MMIT [VA]) Posted on: Oct 1, 2020 9:13 AM Message:
I am a cash buyer.
In 2008, instead of making my IRA contribution, I used that money plus money from savings to buy my first investment property. This property was already rented, so, I got immediate cash flow. I saved the rental income and continued to divert the annual IRA contribution to the "rental account".
(I am a big believer of the IRA, but, I wanted to try real estate. My wife continued to fully fund her IRA).
When the rental account had enough money, I bought my second investment property with cash.
The "IRA" contribution to the rental account ended in 2014 when I sold my business and retired.
I continued buying with cash and now have 22 investment properties and am living off the cash flow.
I did not use the debt free approach because of Dave Ramsey. I did it because that approach made sense for me.
I pay cash for cars, saved for 18 years to cover college tuition for the kids, and never carry a credit card balance.
Since I have a strong accounting and finance background, I decided I was smart enough to win using "good debt", so I started a business 25 years ago. When the economy was good, we made lots of money. When the economy sank, we lost lots of money (remember 9-11 and the dot com crash?). The banks still wanted their monthly payments even though my sales dropped 75%. I quickly realized there was no such thing as "good debt".
I paid the loans off as quick as I could and then grew the business "at the speed of cash".
Never again will I borrow money.
Good luck! --70.188.xx.xx |
Dave ramsey realestate (by S i d [MO]) Posted on: Oct 1, 2020 10:13 AM Message:
One of the most important lessons I learned from Dave's "No debt" investing strategy is this: there are OTHER WAYS.
What ways?
I'll share one. Right now I am using investing partners. With interest rates persisting at record lows for a decade, there are many old-time, conservative investors who are no longer in the stock market due to age, volatility, etc. but who have their money tied up in 1% CDs. Bleh.
Enter S i d, the entrepreneur/investor!
I have a proven track record from 15 years that included surviving (and thriving!) thru the Great Recession profitably. It's a track record any bank would love....for themselves. But would they show me the love in return? Brad is spot on saying that the bank is your friend in good times, but they quickly retreat during lean times. Loans get called. Interest rates go up. Lines of credit shrink or disappear.
So I did what Dave would do: I thought long and hard...."How can I invest in rental properties without debt, but with all the benefits of debt and none of the risks?"
Enter, investing partners!
Those people who have money sitting around doing next to nothing want decent returns, which I can provide. Equity partners take a stake of ownership, not a lien. What does that mean? It means we are on the SAME TEAM, regardless of whether the economy is good or bad. My success is their success. My failure is their failure. They are not going to pull the rug out from under me because they have a huge stake to lose if they do. Sure, if I continually screwing up badly enough, that partnership could dissolve, but that is unlikely to happen because they don't get to repo a house and walk away leaving me in a mess by myself.
Tap into that under-utilized private investor capital waiting to be deployed. It will make you sharper and evaluate deals more carefully, and if you have very wise investing partners (like I do) they also offer second opinions and thoughts about how good or poor an investment might be. They will come out to the property and walk around it with you...maybe even peer into the nooks and crannies too! They will look for resources that suggest where growth trends are and where locations are failing. What banker will do that for you?
In conclusion: debt is not the only way. I'm living proof. It is how I started, but as I demonstrate above you do not have to keep touching the hot stove simply to avoid being called a hypocrite. Learn to do better and work smarter. There is nothing wrong learning from your past and teaching others to do better! --107.216.xxx.xxx |
Dave ramsey realestate (by John... [MI]) Posted on: Oct 1, 2020 3:27 PM Message:
Sid: Don't you still have some properties with mortgages yourself? If you were a true believer in what Dave Ramsey recommends, shouldn't you be selling off some of your properties to eliminate that debt? Especially before buying anything else (even if those new ones are "debt free")?
- John...
--67.209.xxx.xx |
Dave ramsey realestate (by Bill [KY]) Posted on: Oct 1, 2020 4:12 PM Message:
Pmh, I’m not sure I’d say Dave is an unsuccessful REI...he owns more real estate than anybody on this message board. I’d also say many of the biggest investors/players in most industries have lost it all and gained it all back at least once.
I’ve been an all cash buyer but wouldn’t rule out using debt to grow....my advice to anyone would be to get debt free in your personal life and then save up to buy your first rental with cash. Be open minded from there and see what your comfortable with. --75.90.xxx.xx |
Dave ramsey realestate (by Hoosier [IN]) Posted on: Oct 1, 2020 8:30 PM Message:
I'm a believer. The only exception is that we will borrow if the rate is zero...like 120 days same as cash. All our properties are paid for in full. I sleep better at night knowing that I don't have a mortgage payment. Our personal house is paid off too...we got a 15 year loan and paid extra...we had it paid off in 12 years.
Dave preaches sacrifice now for freedom later....I'm as free as can be...I "retired" from the 45-hour workweek at age 52 (I did work part time for a few years...and even work now about 4-6 hours/week doing handyman work over and above the small amount of rental work). Livin' the dream. --99.92.xxx.xxx |
Dave ramsey realestate (by S i d [MO]) Posted on: Oct 2, 2020 2:08 PM Message:
John...
I know you (and others on Mr. LL) think Dave is only for people who are unsophisticated with their money, but let's see what your knowledge of his teachings is like in case you have missed a few things that will answer the questions you asked me.
1) During what Baby Step does Dave Ramsey tell people to sell stuff as part of being "gazelle intense?"
2) What is Dave's advice for people who are starting a business, as soon as they are past Baby Step 1?
3) What is Dave's general advice for investing in income producing real estate?
--107.216.xxx.xxx |
Dave ramsey realestate (by Raj [FL]) Posted on: Oct 2, 2020 3:01 PM Message:
If you are young, you should leverage.
If you are young, you cant grow if you want to buy for cash. Use other peoples money to grow. Take more risk.
If you are older, buy for cash. Peace of mind. your savings and assets become more precious. Take less risk. You can't afford to lose. --97.101.xxx.xxx |
Dave ramsey realestate (by George [NY]) Posted on: Oct 2, 2020 4:13 PM Message:
Dave has a great idea. My question is where you find "investors". --69.116.xx.xxx |
Dave ramsey realestate (by Ray-N-Pa [PA]) Posted on: Oct 2, 2020 4:33 PM Message:
You pose a tricky question that investor wrestle with.
Would it be nice invest without any debt - sure. But that limits your returns so we as investors use leverage.
Some might say well just use someone else and let them get into debt.........hmmmmmmmm If debt is "bad" then allowing your neighbor to follow that path is also bad.
I have been taught that money come in red, green and yellow colors - depending on how much it is taxed
I have also been taught that not all debt is equal. Some might even yield positive results. Getting rid of a large chunk of my debt did seem to take a load of bricks off my chest.
--24.101.xxx.xx |
Dave ramsey realestate (by 6x6 [TN]) Posted on: Oct 2, 2020 4:56 PM Message:
Ray, can you explain a little more.
"I have been taught that money come in red, green and yellow colors - depending on how much it is taxed"
Maybe an example? --73.120.xx.xxx |
Dave ramsey realestate (by Pmh [TX]) Posted on: Oct 2, 2020 5:13 PM Message:
Sid: you can call them “investing partners” but you are still using opm...(?)....my “investing partners” are the banks I borrow $ from at 2.85 3.25 and get 25-35 plus returns cash on cash. others here get more. is win win for lender & borrower. I am no slave. I set my own destiny. but I do do everything my wife tells me to do....... --72.180.xx.xxx |
Dave ramsey realestate (by 4G1R [NC]) Posted on: Oct 2, 2020 6:17 PM Message:
@ Pmh [TX]) ... "a smart borrower is master of his/her own destiny. I borrow $ to make $. The lender lends $ to make $. a win win for both." I agree 100%. I use debt (low levels of debt) to make more money. If I have to pay the bank interest for the pleasure, so be it. Cost of doing business and they deserve it. The key to debt, like alcohol, a car or firearms, is to use them responsibly. --76.201.xx.xx |
Dave ramsey realestate (by Ray-N-Pa [PA]) Posted on: Oct 4, 2020 11:19 AM Message:
Green Money - Tax free money. Money from a HSA for example. To a lessor extent- Roth account as they were taxed once already
Yellow Money - money that is tax deferred. IRAs
Red Money - Money that is taxed when you receive it. A paycheck.
The more you shift your money towards green and yellow and away from Red, the less you pay Uncle Sam --24.101.xxx.xx |
Dave ramsey realestate (by John... [MI]) Posted on: Oct 4, 2020 4:31 PM Message:
Sid: I don't know the answer to any of those questions because I don't know Dave Ramsey that well. I was just pointing out that pretty much EVERY time this comes up here (which is OFTEN), the answers from some people immediately dive into the "slave to the lender" territory and suggest that everything involving real estate investing should be done WITHOUT debt according to Ramsey. Do you not agree that is what normally happens here (and even happened in this thread too)?
Also, I have not said that Ramsey is "only for people who are unsophisticated with their money." I've said that I feel that he is good for probably the vast majority of people -- but I tend to think that those people are not usually the same group as real estate investors. We, as landlords, are already in a small group of people who tend to think about money differently than most others. Sure, there are some that are bad with money and shouldn't have large loans -- but I think MOST of us actually understand using a loan as leverage to move to bigger and better things without taking extreme risks. For those people, yes, I maintain that I don't think the Ramsey "0 debt" advice (that gets repeated often here when this comes up) makes sense.
Finally, as I said, I find it odd when people here go "yes, 0 debt real estate investing is the way" when they have existing loans that they are still slowly paying off instead of really continuing as 0 debt investors.
- John...
--96.40.xx.xx |
Dave ramsey realestate (by Peter [NH]) Posted on: Oct 5, 2020 8:12 PM Message:
Wow I love this discussion. Been a landlord since 1985. I really like Dave Ramsey but I am also comfortable with some risk ie debt. The loan to value on my portfolio has been anywhere from 0 to 80%. I was at about 25% debt for the last 10 years before I sold some units and paid off all mortgages three years ago.
It did not change my life one bit in any way. I did not feel any relief with no mortgage debt.
I believe debt is just a tool. When you are starting out if you want to be exclusively a landlord (no other income source) then you can and should and must use debt. I do not agree with Dave. At least that is how I did it. The real question is what LTV are you comfortable with. As I got older I settled at 20-35%.
Fortunately I didn't need all Dave's other advice because I have been living it since I was 19 years old :) I do enjoy listening to his show. --75.67.xxx.xxx |
Dave ramsey realestate (by JG [NV]) Posted on: Oct 6, 2020 1:18 AM Message:
My favorite Dave Ramsey call was him teaching a caller not to use debt. The caller wanted to borrow $10K or something at a very attractive rate and invest - 1 or 2%, don't recall exactly. Dave of course was against that arbitrage. Dave asked the caller if he'd be comfortable borrowing $100K at that rate? Caller was iffy. $1 million? Caller said no way, too risk. Too bad I was not on the line - I would have said at that rate, I will take as much as you will send my way - billions. --107.213.xxx.xx |
Dave ramsey realestate (by Nicole [PA]) Posted on: Oct 6, 2020 11:53 AM Message:
I never listened to the guy but I certainly do not believe one guy's philosophy is one size fits all. Personal opinion here but I certainly don't like some guy preaching "the good book" and mixing that in with business. My priest and I have never had a discussion on my financial position.
That said, he's preaching to "regular" folks, correct?
Landlords are not "regular" ... they are businesses and a person's individual financial picture and the financial picture for a business are entirely different. One wants to retain their money and be comfortable. The other wants to grow (or at least maintain) and make a profit. --72.70.xxx.xxx |
Dave ramsey realestate (by Cjo’h [CT]) Posted on: Oct 8, 2020 9:27 PM Message:
When you come here as an immigrant with only Ł20..00 in your waist-band ,you never lose money,not even as little as a penny,and don’t ever forget that................Charlie...........................that would be one of the seven deadly sins..................... --32.214.xxx.xx |
Dave ramsey realestate (by Cjo’h [CT]) Posted on: Oct 8, 2020 9:32 PM Message:
We could probably teach still teach Dave a thing or two...........Charlie.......... --32.214.xxx.xx |
Dave ramsey realestate (by Cjo’h [CT]) Posted on: Oct 8, 2020 9:42 PM Message:
6. X. 6, don’t underestimate yourself,you’re a lot smarter than you give yourself credit for................charlie............much smarter........... --32.214.xxx.xx |
Dave ramsey realestate (by Kurt [MI]) Posted on: Oct 9, 2020 8:06 AM Message:
Nicole, No offense but if you stand in judgement before God and say "Oh that was just business", that is not going to fly. You cannot separate the Good Book from any part of your life, for it says those that try to save their lives will lose them.
Beyond that, Dave talks to all kinds of people. "regular" folk, landlords, wannabe landlords, insurance salesmen, etc.
Most small-time landlords don't have non-recourse loans, so their business risk is quite closely intertwined with their personal finances since their loans are personally guaranteed. --68.61.xx.xxx |
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