The Ramsey Show - App - Don’t Get Your Financial Advice From Late Night Infomercials (Hour 2)

Episode Date: April 8, 2024

Live from the headquarters of Ramsey Solutions, it's the Ramsey Show, where we help people build wealth, do work that they love, and create actual amazing relationships. Our phone number is 888-825-5225. Jade Walsh on Ramsey Personality. Number one best-selling author is my co-host today. You jump in. We'll talk about your life and your money.

Kenneth is with us. Kenneth is in Amarillo, Texas. Hi, Kenneth. How are you? Hi. Thank you guys so much for taking my call. Sure. How can we help? So I feel like I

made the dumbest financial decision in my life. I bought solar panels with a solar loan and I want to know how to get out of the loan. I know the obvious answer is to dig deep and pay it off. But I wanted to know if it was as simple as just telling them to come and take the solar panels and we'd be done with it. How much did you spend on this? It is a $41,000 loan over 25 years. What's your household income, man? We made $105,000 last year. When did you do this deal?

Two years ago. Okay. What happened that made you rethink it? Because at the time you did it, obviously obviously you didn't think it was done hey hey yes sir um well they i guess i thought about it some more they had an 18 month spent of where it was a lesser payment. And then after the tax credit thing, they wanted us to submit a tax credit and we get a refund and we send it to them, but I did not read the loan. And I just signed away and did not know that. So now my loan has increased my payment,

and I'm paying double in electricity than before solar panels. Why are you paying double in electricity? No, he's paying double what he was paying in electricity. What's your payment? Just curious. It's $200 a month. Okay. All right. So you missed a tax credit because you didn't ask for it on your tax return. Is that what you're telling me? No, I'm saying that I did turn it in as a tax credit.

We got the credit. Oh, you just didn't apply to the loan? Yes, sir. I got you. Okay. All right. So you got a $41,000 balance on the loan yes sir i got you okay all right so you got a forty one thousand dollar balance on the loan if you don't pay it um they will hypothetically repossess the solar panels which i doubt they will

actually do it's because there's not exactly like a big repo market i mean they don't have a lot where they sell repoed solar panels so um doesn't happen like it does with a car. So they may or may not repo them, but they will sue you for the $41,000, plus or minus whatever they get out of the used solar panels if they did do a repo. But they'll probably just sue you for the debt. Okay. Now, you are in Texas, and so they can't garnish your wages in texas and they can't take a lien against your home but they can do a lot of other stuff um and by the way uh you signed a contract and made a promise so you need to honor the promise so we're going to

take 104 000 and we're going to say we went and did something stupid and put $41,000 on a credit card. Now we've got to pay off our credit card. In a sense, that's what we did, right? So let's just put this in your debt snowball and let's get after it and get it paid off. And if this is the dumbest thing you ever do in your life, you're probably pretty smart. All right. Well, thank you guys so much. I appreciate it.

Please go get it knocked out. You have a pattern in this conversation of not dealing with crap so i want you to deal with this head on i want you to get on a beans and rice budget and get this crap cleaned up yesterday because every time you write a check otherwise you're going to feel stupid so i want to write as few of those checks as i can feel because i don't like feeling stupid every month i don't like it and you don't like it and don't do that get it cleaned up get it out of your life asap hey i'm not against solar panels boys and girls i am against borrowing for them and there is the

reason why okay number one people don't watch what the flip they're doing they buy the wrong thing they buy too much they overpay when they borrow now solar panels in some areas of the country are very efficient the technology has improved dramatically over the last several years and some of you can actually do very well i've got a good friend that's doing 40 of his house on and it's a big house on solar panels now he's in an area of the country where he gets plenty of sun obviously that matters and um but but the uh um you know it's efficient but he paid cash for him and then you just look at a break even well you would think that there's a situation especially with the caller where you've okay you spend forty one thousand dollars on solar panels you change your mind you realize you're not getting the the. You would think that similar to being an upside down in a car that you could sell it off, pay the difference and be done.

That you could sell them to a reseller. There's no market for that. Used solar panels. Take them off the top of your house. Leave a hole in your house. I mean, there's nothing worse than new solar panels except used ones. Now, listen, i endorse a couple of solar companies around different areas around the country and i'm not ashamed of that at all

but the the way they sell that crap the way they sell it is crap is what i should say the way they sell it is here's your payment and your payment is going to be less than your electric bill you heard him say that right and now it's more than the electric bill because i didn't follow through and do the thing i was supposed to do right but but the idea being that you know you're going to be less than your electric bill you heard him say that right and now it's more than the electric bill because i didn't follow through and do the thing i was supposed to do right but the idea being that you know you're going to end up saving and then when it is finally paid off in 25 years give me a break uh then from then on you have free electricity no no no come on you're gonna have mechanical dysfunctions and malfunctions we're not going there but anyway can they break even if you can run a situation run a scenario where your solar panels break even in five to seven years you may want to look at that if you've got the cash and you're out of

debt your baby step seven i'm fine with it then but if you don't have that level of break even then they're there my house is in the woods no chance yeah it ain't cutting the trees i like my trees so um i like the woods and woods usually comes from trees so i like my trees so there you go that that but no we're not gonna get that but but if you can get a break even and have free electricity like my buddy did you know yeah essentially he's got about 40 of his big old house is operating free it's like at what point though he said he's paying 200 bucks a month that which is now double what he was paying before he's paying more and i'm like when i lived in south florida the during the summer that ac bill could be like 3 350 yeah yeah and

it's just part of living in south florida yeah well i mean but if you could the idea being if you paid 250 instead instead of $350, and that was a payment on the solar panel, you're still saving money monthly, and you're helping the environment and all this stuff. It's a long means to an end. It's a way of selling it. It's a crappy way of selling it. The proper way to look at it is break even.

If you put out $10,000, how quick do you get back $10,000? Five to seven years. If you want to do that do that that's fine i've not chosen to do that not against that way of doing it financing it it's a problem kenneth the dumbest thing kenneth ever did that's what he said that's what he said and if it is the dumbest thing he ever did he'll be all right this is the ramsey show show. Jade Walshall Ramsey personality is my co-host today. Today's question of the day comes from Carmen in South Carolina. She says, my husband is 79 and I am 77. We own our home, which is valued at $330,000. There are repairs and improvements that we need to do, but we do not want to take out a loan because we're debt free.

We plan to stay in our home until we pass away. All bills are paid off each month and we put about $500 to $1,000 in savings every month. And currently we have $10,000 saved. We have no investments. We are considering taking a reverse mortgage to provide money to work on our home while we continue to build up savings. Is this a good plan? No, it's not a good plan. My first thought is you've worked so hard, you know, you're debt free and you've decided that you want to live a debt free lifestyle. In many ways, this is you taking on debt by basically saying, okay, we're going to take the equity out of our home and have

them loan it to us at a very, very high interest rates with lots of fees. And if you're saving $500 to $1,000 a month, my thought would be, well, why can't we just save up and make these repairs? They don't talk about exactly what the repairs are, if it's, hey, we need new carpet, or if we need a new roof. But my thought would be, I'm not going to go into debt after I've come this far. I'm not going into debt, period. So I would not do that. I think it's a terrible plan, actually.

And with reverse mortgages, honestly, you're putting your, if they have heirs, they're putting them in a bad situation too by taking out the value in this home. Yeah. You know, who falls for scams the most old people and you scam artists that feed on old people ought to be ashamed of yourself and um so the reverse mortgage is a horrible piece of crap stay away from it the most they will loan you is up to 65% of your equity. And if you do not

stay current on the taxes, the repairs, and the insurance, they will foreclose on you. Among regular mortgages, FHA, VA, conventional Fannie Mae mortgages, the foreclosure rate in america today is 1.6 percent of those get foreclosed on among reverse mortgages eight percent almost five times as many houses get foreclosed on with reverse mortgages what does that tell you it tells you how bad they suck and what a scam it is the interest rates are higher. The fees are higher. The process of putting you back into debt after you've worked your whole life to get out of debt is just abysmal. And look at where they're advertised. Where do you see them advertised? On the channels old folks are watching. Yeah. I mean, when you pick out your investments or financial products from commercials where

they are advertising Snuggie and walk-in bathtubs. And gold. This is where you know you don't want to, well, gold's in that mix. You don't pick your financial products where they're doing walk-in bathtubs and Snuggies. This is not where you pick out good things to do, okay? And guess who's advertising montel williams ancient actors ancient actors and um who got paid to be an actor not a financial analyst and so sorry tom selleck and by the way the company that tom selleck endorses the federal trade commission just hit them uh about three years ago with a huge multi-million

dollar fine for misbehavior magnum pi well more of late new york blues or whatever it's called and you know and the fawns well he's not the Fonz anymore sorry Henry Henry Winkler I love Tom I love Henry I think they're awesome but not what they endorse okay I just we can't go there I'm actually a fan of both of their work I'm not I've never met either one of them but uh but no don't don't buy stuff because um and William Devane is the guy with the gold commercial, yeah. But the, or whatever his name is. But yeah, oh God, please no. Please don't do this.

Listen, we would never tell you to take out a mortgage on your house to do repairs. But that would be smarter than a reverse mortgage. Lower fees. Lower interest rate. Much more generic product. Not as much scam around it not as much foreclosure around it and you're not even considering doing that because that scares you to death well this ought to scare you triple x that so please don't do it no reverse mortgages awful i think the rate's even higher now for foreclosure i think it's 10 percent now is it really yeah no so my my data is old it's gotten worse well i mean it's not hard to predict yeah

yeah it's just it's um oh it's the molly's in st louis hey molly how are you doing good good how can we help okay so i feel like my family is in like a big transition period. I just got back from maternity leave two weeks ago. We're currently on baby step two and we've got a little bit of ways to go. Mostly with my student loans, but I actually just got a job offer for a position that aligns more with my career path. Like ideally.

And the only issue is it's a further commute and you know being a new and a new mom is my second baby but you know being away from my kids a little bit more you know just the motivation that taking this job and more money my pay is the right more money yeah doing what like I'm a pharmacist okay how much more money like $27,000 a year. Wow. What's your husband make? Currently, he makes $45,000 a year. And what will be your commute? It goes from 20 minutes to 50 minutes. One way. One way?

And what about him? One way. He works, he's a funeral director, so he works locally in our town. So he doesn't have a commute. How much debt do you have? Student loans. So about 220 in student loans. I have been working for a non-for-profit hospital. So I've been there for about four years. So I would only have six years left. I'm going to another non-for-profit hospital. So with the public student loan forgiveness, it would eliminate about

half of my student loan debt. Maybe. But you're not waiting? I'm not banking. I'm not waiting. If I was, that would help. I mean, what about moving? We have a lot of help where we're at, and we like where we live. Our in-laws are only right down the road. My parents, and they are retired, and my mother-in-law watches our kids.

And my parents live right across the way from us, about a mile. So it's really not an option with his job. He has to live where we are because he's on call if people were to pass away. So I just wonder. What about a third option, like a different job? Yeah. Because my thing is this, you have two kids, I have two kids. I'm not saying that I feel the way you feel or vice versa, but

I just know that at the end of the day, the difference between getting home at 530 versus 615 is big. So I would be getting home about the same time i work 10 hour shifts at my current job and this would be eight hour shifts so like the daytime away from my kids is about the same okay so you're there for less time okay the only difference is just you got to be on the road yeah which i mean we live in the middle of nowhere so we're used to our targets 45 minutes away the mall is an hour and a half away um i mean, the nearest Walmart is 30 minutes away. We live in a very rural area. So a commute is nothing that I'm not used to.

So you don't seem like you really have any objections to it. I don't. It's a big, you know, just coming off maternity leave. The only change is just the drive. It's not even the time away. You're not away from your baby. It seems like your hang-up is more about changing jobs than the actual commute yeah is that fair i'm a loyal person yeah okay i'm a loyal person and and letting people down and then you know transition you know period of our life my husband started a business at the

beginning of the year which is going really well um and we didn't have to but you're gonna be gone 10 hours a day either way yeah Yeah. Yeah. Either way. So what's the difference in all that? I guess there isn't. I just don't know if I wanted confirmation from somebody that wasn't. I didn't have any bias in my situation. Her problem is she feels bad that she's leaving this job.

You said it was loyalty. Oh, yeah. I'm a very loyal person, I feel like. Yeah. Leave the job. I mean, you're breaking even on your time away from home. Yeah. And you're used to driving 50 minutes to everything, so that's not a big deal. I do it. I don't see a downside.

I've got to tell you, the people you're loyal to, they'll remember you for 30 minutes or so. This is The Ramsey Show. Jade Walsh, our Ramsey personality, is my co-host today. She is the best-selling author of the book, Money is Not a Math Problem, one of our Ramsey Quick Reads, The Real Reason You're Broke and What to Do About It. You can check that out, of course, at RamseySolutions.com. We have two new books coming out this month on pre-sale,

actually coming out early May, is Ken Coleman's new book, Find the Work You're Wired to Do. Now, this is a short hardback book that is designed to walk you through his get clear career assessment. The assessment is sold online at Ramsey solutions dot com and about 100000 folks have taken it so far. And so if you want to learn, you know, get clear on your career direction, what your strengths are, your passion passion how to get dialed

in on that this is the best assessment out there on that it's very inexpensive very quick to take 27 minutes or so and then this book will walk you through the results that's what it's for so when you buy find the work you're wild wired to do pre-sale you're going to get three codes for the assessment one in the book one comes with a book one comes with the audio book that we're going to give you as a part of the pre-sale and one comes with the e-book which comes as part of the pre-sale so you're going to get all of those uh delivered to you in may and you can get that at ramsey solutions rachel cruz has next week a new book coming out her second children's book her first was a bestseller. It was called I'm Glad for What I Have about contentment. This one's called I'm Glad for Where I Am.

Home is Where the Heart Is, fabulously illustrated by Lauren Gallagos. Lauren is an absolute world class at this. And these kiddos' pictures are fabulous. This one, the other one's about contentment. This one is all about gratitude. But the stunning, just beautiful, beautiful illustrations. And I've already been reading it to the grandkiddos. And the smallest one is Papa Dave, Papa Dave, read Papa Dave. And I always want to read to the kids.

Because kids that are read to, they always turn out bright. They always come ahead. They're always ahead in everything. Read, read, read, read, read, read, read, read, read, read read in a culture that doesn't know how to read and in a culture that doesn't know how to comprehend you give them a huge advantage when you do that so whether it's rachel's books or any are the junior series or anything else you like out there it's great i've gotten pretty good at dr zeus yeah dr zeus i had i'd put it down for about 25 or 30 years, and I picked it back up now. Wacky Wednesday. Another generation in, and here we go. Game on.

Yeah, my kids love it. I do not want green eggs and ham, Sam. I am. I'm just saying. There we go. Open phones at 888-825-5225. Tricia's in New York City. Hi, Tricia.

Welcome to the Ramsey Show. Hi. How are you, Dave? Thank you for taking my call. Sure. What's up? So I am divorced. I have two kids. One is in college.

One is soon to be in two years. I'm trying to figure out how to make an income of $200,000 per year based on, I guess, my assets right now, which the first one would be my home that I currently live in. It is paid off and the rest would be just really the money that I have in the bank. So I feel like I'm at that point where I'm not sure if I should sell my house and where to invest the money. So what's your home worth? My home is worth between 3.6 and 4.1. Okay.

All right. How long have you been divorced? Two years. Okay. And how much money in the bank? About $760,000. Okay. And where do you live in the city? Manhattan? I'm actually right outside the city. I'm at the Jersey Shore. Oh, Jersey Shore. Okay. All right. Yeah. All right. And what do you do for a living? Well, I was on the DC. I was buying and selling homes, renovating them. I've done that for the past 15 years.

With the market the way it's been, with the interest rates, it's kind of been a little difficult this past year and a half. So I'm just trying to regroup to figure out if I, like I said, whether I sell my home and use that money to reinvest in properties or put it in the market. It's kind of where I am. I'm at that standstill of, like, it's kind of a now decision to make. So, is $200,000, it sounds bizarre to say this out loud, but I am hearing someone that's living in a $4 million house and has almost a million dollars in other assets. So, I mean, you've got approaching a $5 million net worth. You've only been divorced two years.

So that tells me you guys have been living a pretty luxurious lifestyle for probably quite a while. Am I missing something? I would say, I mean, i think it's all relative oh it's all relative but that's that's way above most people would you not agree yeah i i agree how much is it going to shock your system to move down to only 200 000 a year i think that that is my goal i actually am very content with that number. That's what I'm trying to figure out. How did you come to that number and be content? The number is not content unless it represents something that you're content in. Yeah. Well, I think it's a matter of the past

few years doing spreadsheets and kind of seeing what my budget is. And it looks like, you know, I've been spending between 170 and185 per year. Okay. That's a good number then. All right. All right. I like that. I like that approach rather than I just picked a number that I ought to be able to live on. I'm used to living on three times that, but I picked a number.

That's what I want to be careful of. Okay. All right. So if you sold your house, what would you live in? I don't know. I was thinking maybe I would either rent something, because my youngest son will be in college in two years, or maybe buy a house that's more around a million dollars. But I'd rather really maximize.

Where's your youngest son in school if he is going to be there for two more years? Public or private? I'm sorry? Your youngest son. He's public. My youngest is been public. So moving school districts, you can do that at a million dollars? And not get out of that school district?

Yes. Oh, I can stay in the district, yes. For a million bucks? Yes. Okay. So you have a million dollar paid for house. We cleared three, give or take. And we've already got seven.

So now you've got three-seven. Well, that'll generate more than $200,000. You can generate a lot more than $200,000 doing flips with that money. Yeah. So would you say it would be better to do the flips than to put the money in the market? How many flips have you done? Oh, probably 17 maybe maybe how many were profitable oh how many scared you to death when you were doing them because you were afraid you got stuck

maybe from the ground up the one new construction one scared me to death okay all right so you know what it looks like because it sounds you got enough experience under your belt so how much can you make doing flips a year well i'll give you a two million dollar budget okay how much can you make if you got two million dollars cash and you're flipping it okay two million uh i would say you ought to make a lot more than $200K. Between $200K and $300K would be my goal. It better be $300K. You better be making more than 10% on this money doing flips.

You're taking too much risk. Okay. You've got a better margin than 10%, don't you? Yeah. Yeah, you've got to have a 20% margin or you shouldn't be doing a flip. Okay. What'd you make on your 17? What was your margins?

Um, I mean, they're, they're so different. I never, I know, but you should be averaging your business model out, kiddo. I know I don't have a business model. I just kind of like did them and then put the money in the bank of whatever I made. And then how do you know you made money? Um, well, because I know what i put in i used my own money for the investment and you took it back out and you ran a spreadsheet on each job right yeah go back and run your mark go back and run your margins if you're not making 20 you need to be doing something else okay it's not enough you can't you can't take that kind of risk for seven or eight

percent you put a stink in high yield savings and not have to go through all this trouble and taking the risk okay so you need to be making 20 or not doing them and if you make 20 on two million i've still got a million seven sitting over to the side and you're making 400 so sell your house move into a million budget some amount to do flips put the rest of it with a good smart investor pro and some mutual funds, and you're going to easily have more than $200K to live on. Wow, there's a lot going on there. This is The Ramsey Show. Jay Walsh, our Ramsey personality, is my co-host today.

She is author of the book, Money is Not a Math Problem, and bestseller from Ramsey Personality is my co-host today. She is author of the book, Money is Not a Math Problem, and bestseller from Ramsey Press. So let's do some Finance 101. All right. A couple of things. The first thing they teach you in finance class, one of the first things they teach you, is what's called risk-return ratio.

The more risk you take, the higher return you should get. So when you put your money in an FDIC insured bank, no risk virtually, but they pay you almost nothing. Fair enough. Right. If you move it around a little bit, mess with a little bit, you can put it in a good high-yield savings account, which we'll sidebar on that for a second. We were talking about this off-air a little bit. We'll come back to my risk-return ratio in a minute, but we'll just turn left for a second and park there. A high-yield savings account is exactly what it says it is.

It is a savings account at a bank that pays a better rate. Ding, ding. Higher yield. That's it. Okay? A CD, a certificate of deposit, is a savings account at a bank. Mm-hmm. And they give you a certificate.

Yes. And you have to. Like perfect attendance. You remember that one? Yeah. But you can to. Like perfect attendance. You remember that one? Yeah. But you can't touch that one. But you can touch it, but you won't get all of the high yield. Okay.

The high yield savings accounts, fully liquid, pays more than CDs do right now. CDs have just about been run out of town by the sheriff. Okay. Ten years ago, we didn't call them high-yield savings accounts at the bank. We had a savings account at the bank that the bank labeled wrong, but they did it for marketing reasons. The bank called it a money market account at the bank. It was a savings account at the bank that paid a higher rate like a high- savings account does same exact thing it's a savings account that paid a better rate that mimicked real money markets but the bank did not sell money markets they had a savings account called a money market account that had an interest rate that was similar to a real

money market account a real money market account. A real money market account was only available through, and still is only available through, something like a mutual fund company. So you could go to Fidelity or American Funds or whatever and open an actual money market account. Now, you can have money market accounts with those that have check writing privileges, even a debit card attached to them and those kinds of things. But the high yield savings account has uh as a marketing methodology it's a better marketing actually than money market because it says i'm going to give you more money yeah high yield it says i'm going to higher interest

savings account that's what it says it is what it says it is actually in the money market account was just a misnomer yeah but it was all for marketing it's all banks selling their wares so uh high yield savings account simple savings account a little better interest rate but almost no risk so back to the risk return ratio um if you want to double your money you know you're pretty much going to leave investing and go to gambling or speculating. Now, some people call speculating investing, but it's really not. Speculating is where I want a short, quick return on my money. That's speculating. Day trading stocks is not investing.

That's buying and selling stocks on a daily basis or a weekly basis. That is speculating. When a builder, a home builder, builds a home that does not have a buyer, they're called spec houses. Speculating. They're speculating. They're building an unsold piece of inventory they hope to sell now they're not investing for 10 years when they build that house praise they pray they're not

investing for 10 years they they hope you're going to buy the house when you so that's why they're called spec houses they're speculating the builders are speculating that's not investing it's right next to gambling and you can make a lot better money speculating. That's not investing. It's right next to gambling. And you can make a lot better money speculating, but you're taking the ultimate high risk. It's kind of an all or nothing play usually. It's why I don't buy commodities like gold and wheat futures or whatever, because it's all speculating. It's short term plays with with a gain it's why we

don't do bitcoin it's a short-term play with a potential gain and it's got a no track record the only track record it has is filled with fraud and go to jail do not pass go right and so it's just a mess so the whole the whole marketplace is high ultra high risk speculating. It's not even investing. But along the spectrum of investing, the more risk you take, the more money you ought to make. So if you put money in mutual funds, I've got a mutual fund that opened in 1934. It has had like in that 80 or 90 years, it's had like, I don't know, 10 years it lost money out of 80 or 90 years or something like that.

Not consecutive. Not consecutive years, but in the entire time. Right. 10 different individual times, individual years. Right. Never back to back. Not a single back to back. And they're always major occurrences.

9-11. Something, yeah. Something crazy. Since 1934. Yeah. Okay. And it's averaged 12.2% since 1934. Okay.

Now, if I can make that investment by simply pushing enter on my computer, that's all I got to do. Hit push a button. There's no, I don't have any effort to go with it. Then if you're going to do, if you're going to gonna flip houses that's speculating all right you're hoping to make a quick buck you dadgum better well make more than 12 on your money you ought to make 20 at least ought to be your margin it ought to be more but at least a minimum of 20 otherwise you're taking too much risk versus the 12 you could make

with no with a 1934 historical track record okay yeah um you got it the risk ratio on that is way different and where does the effort play into it too yeah and effort and the effort plays into it and the worry because all speculating involves jumping in and out and involves a level of fretting over it and wringing your hands over it mental calories mental calories burning investing even in high risk things doesn't involve the same level of calorie burn that speculating does but where you guys mess up sometimes out there in the tick tock land of finance is they they confuse speculating with investing investing is always long term speculating is a quick gain but a higher much higher risk gain at best and then past that

is actual gambling i mean when you're speccing on a house, flipping a house, or you're speculating even on Bitcoin, it is not the same as playing the roulette wheel. It's less risk than the roulette wheel. Because, you know, you're going to walk away from Vegas, the house wins 100%, okay? House wins. Bellagio did not put those light fixtures in there uh you know they did not

put those 10 million dollar light fixtures in there with anybody's money but yours if you were in bellagio okay i mean it's vegas is built on the back of losers um people who lose money that's what i mean and that's that's how it's how the math works so i'm not saying you physically personally are a loser i'm saying you lost your money there. Right. You're a loser. So yeah, you lost your money. So that's it.

But that's the spectrum, okay? You go all the way from savings account with no risk, no effort, no calorie burn. To the roulette wheel. All the way to the roulette wheel. And the more risk you take, you should make more money. If you're not, you're missing on the very basic tenet of finance 101 risk return ratio more risk should always equal more return if it doesn't well that's dumb don't do that so our last caller doing the flips she needs to be making 20 percent and it didn't seem like she

was she don't know she might be she might have made 30 she didn't know that's true she didn't seem like she was. She don't know. She might be. She might have made 30%. She didn't know. That's true. She didn't know. She didn't even know. But you got to know, number one. And then number two, you need to be making that. I mean, a good residential builder is going to make 20 plus percent most of the time, depending on what type of property they're doing, if they're doing specs. And if you're not, you're setting yourself up for problems because you're going to hit these slow times when it takes a little while to sell a speculative piece of real estate.

You are speculating. You are a speculator. Look it up in the dictionary. So is this what we can expect from your investing? Yeah, I might go on the same rent. I might put it in there. In the investment live stream? Investment event?

Yeah, I'm going to do that. What is it? May 21, 22. I'm doing two hours each night. Two hours of it will be on real estate. I'm going to do that. What is it? May 21, 22. I'm doing two hours each night. Two hours of it will be on real estate. I'm going to go a whole lot deeper into real estate for sure. But I'll probably put this rant in there because I've kind of been noodling on it lately. That was good.

I think it's a problem that people misidentify these things and they call speculating investing when it's not. This is The Ramsey Show.