The Ramsey Show - App - I Found Out I Might Be a Father… How Do I Get My Life on Track? (Hour 3)

Episode Date: November 28, 2022

Dave Ramsey & Dr. John Delony discuss: Selling a car to pay off debt, Helping parents with their debt, Getting your life on track after a rough spell, Why owning rental property isn't as easy as you think. Have a question for the show? Call 888-825-5225 Weekdays from 2-5pm ET Want a plan for your money? Find out where to start: https://bit.ly/3nInETX Listen to all The Ramsey Network podcasts: https://bit.ly/3GxiXm6 Learn more about your ad choices. https://www.megaphone.fm/adchoices Ramsey Solutions Privacy Policy

Live from the headquarters of Ramsey Solutions, broadcasting from the pods moving in storage studios, it's The Ramsey Show, where debt is dumb, cash is king, and the paid off home mortgage has taken the place of the BMW as the status symbol of choice. We help people build wealth, do work they love, and create actual amazing relationships. Dr. John Deloney, Ramsey Personality, is my co-host today. He's the host of the Dr. John Deloney Show, where he talks about mental wellness, boundaries,

relationships, everything in the world having to do with you and your family and your life. You can call there anytime, and you can call here today. The phone number is 888-825-5225. Trina is in Springfield, Illinois, to start this hour. Hi, Trina. How are you? I'm doing good. How about you? Better than I deserve. What's up? So I have doing good. How about you? Better than I deserve. What's up? So I have a question. I have $363,000 in debt,

and I'm trying to figure out if I need to sell my car in the mix of that or if I'm okay with the income that I make. What kind of debt is $363,000? $327,000 is the house, $29,000 is the car, and $7,500 is student loans. What do you make? I make $133,000 a year. Okay. Excellent.

You're single? I am. Okay. Three children, though, so technically not entirely single. Okay. Well, you know, what we would teach you to do is obviously to uh save a thousand dollars as baby step one you have any money in savings not counting retirement i have okay not retirement i have 154 000 in what just a savings account i have 115 savings and unrest

in a mutual fund okay write a check today and pay off your car and your student loans. Really? Really. Okay. If you didn't have debt on your car and you had $70,000 in savings, would you go borrow on your car to put $30,000 in savings? No. Same thing.

What kind of car do you have? It's a Lexus. Good. Yeah. $29,000 car when you're making $133,000 is not out of line, especially when you write a check and you pay for it. So we're going to do that today. Now, once you're debt free, it sounds like to me that you've got, uh, um, what? 60,000 bucks left over. Okay. 70,000 bucks left over. Right. All right. Um, and so we have a series of things we call the baby steps, which is your proper, the fastest right way to walk through and build wealth from where you are today. Okay. Number one is an emergency fund of, uh, a thousand dollars. Two is your debt free, but the house, we just did that. Now we've got $70,000 left over. Three is an emergency fund, a fully funded emergency fund of three to six months of expenses.

You have more than that now. So we're going to earmark some of the $70,000 for three to six months of expenses. So in your world, that's probably $30,000, $40,000, something like that. Whatever you want, something like that. I'm going to set that aside. Don't touch it in a separate money market account. It does nothing but just sit there in case it rains. It's your umbrella.

Okay. That's all it's for when storms come. Okay. Then the rest of it we're going to use to finish up here or to move through the rest of it. Baby step four is to be be putting 15 of your income away in retirement are you already putting money in retirement um i was until last month i stopped because i was like i need to really pay off my debt that i have before i go because i was putting

about 600 aside yeah okay so i want you to now put 15 of your income into retirement. Do you have a 401k at work? I do. I have a couple 401ks. You work two jobs? I used to. I used to. No, I mean, you can't add to something unless you're there. So I want you putting 15% of your income away in a 401k Roth with a match and or a regular Roth, both in good mutual funds, a total of 15% of 133.

And so we're talking about about 20 grand a year, which is almost $2,000 a month. Okay. But you don't have any payments anymore now, except your house. Okay. Exactly. Now, and we've got, then that moves us to baby step five. I'm walking you right up the plan with the money that you've got and the income that you have. And then baby step five is kids college.

I'm probably taking some of that money that's left over after we funded the emergency fund and paid off the car and the student loan. And I'm going to sit down with a smart investor pro and start my kids college funds with that money. Okay. Sounds like you got about 10 grand each to put in towards that by the time the smoke clears on all this. Okay. And that gets that going and then baby step six is now when you find other money in your budget or in your life you throw it at the mortgage and once you begin to pay the mortgage off early probably going to take you six or seven years ten years to knock that out okay while you're putting 15 away while you're funding your kids away, while you're funding your kid's college fund, while you're never borrowing money again. Yeah, definitely.

All of that. You have done so good. Well done. Well, thanks. It was kind of, I feel guilty owning this car because I've always driven junkers because I'm kind of a cheap person. So it's nice to hear that I'm actually okay to own that car. Yeah.

Our rule of thumb is don't have things with motors and wheels that added up together equal more than half your annual income. Okay. And if they do, you've got too much tied up in things that go down in value. Okay. So I wouldn't do that. But in your case, you've got $30,000 tied up. You make $133,000. So what do you do for a living?

I work in the medical field. Okay. All right. How long have you been single? Actually, just recently. So it kind of makes me stop to reevaluate my entire life. Yeah. Painful, I'm sorry.

Very, very painful. Not something that's fun to go through yeah the good news is you walk out of it with a great career and a pile of cash obviously that allows you to clean up and i'm kind of dusting out the corners here while we're talking yeah i definitely want to do that because i want to be able to live comfortably without a lot of extra stress in my life and just enjoy my kids. How much is your house worth? $436,000. That's a lot of house in Waco. Is that the house you want to stay in for the foreseeable future?

No, I really don't even like the house. I bought it because that's what my husband wanted. Was this the home y'all shared before the divorce? Correct, although it is my home. I did buy it before we were married. That's what my husband wanted. Was this the home you all shared before the divorce? Correct. Although it is my home. I did buy it before we were married. Ah, okay. Okay. And maybe that's something to think about if you end up wanting to downsize your home.

When was the divorce? It just was recent, just like within the last month. Okay. Sit there a little bit. Yeah. Follow Dave. Don't do anything right now. Yeah.

Sit there and breathe a little bit. Yeah, yeah, yeah. Follow Dave. Don't do anything right now. Sit there and breathe a little bit. And, you know, six months from now, if your mind clears from the rage and the grief, you might make a different decision. I'm not saying you don't need to move. I'm saying I wouldn't make a decision while I'm going through one of life's most horrible things. Yeah, yeah, it's enough.

There's some grief involved in this, and all of us, our brains are a little bit more clouded when we're grieving, raging, whatever it is we do after we go through something like this. But the moves I gave you, I would make those anyway, and I would sit on the house a little bit, and let's let it sit. Hey, hang on. We're going to put you into Financial Peace University to give you the knowledge and give you the confidence while you're walking this last bit of this out. And it'll show you exactly to do what I just told you to do as well.

So hang on. I'm going to pay for that for you to go through. សូវាប់ពីបានប់ពីបានប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពី Dr. John Deloney, Ramsey Personality, is my co-host today as we answer your questions about life and about money. Chad is with us in Boston. Hi, Chad. How are you? Hi, Dave and John. Thank you for taking my call today. Sure. What's up? So I have, um, uh, my parents are, are 73 and 75. And I just been recently appointed power of attorney over their finances to help them do some debt. They have about 25,000 in credit card debt,

um, 17 on a car and I'm $45,000, uh, personal business loan and a $ hundred seventy five thousand dollar mortgage they bring in about five thousand a month from pension and social security they don't have anything in retirement and they have a rental income from half of their house that brings in about twenty two hundred a month so the minimum payments on everything are about seventy two hundred a month right what they bring in and i'm wondering how I can stop the credit card accounts and be able to stop the interest and stuff so that we can pay them down and not have them all accruing interest and fees every month.

And talking to a consolidation company, they want you to send them the money and then stop paying the payments, and then in 60 to 90 days they'll make a settlement with them, and you just keep sending them the agreed-upon payment. Which does to your parents' credit exactly the same as filing a Chapter 13 bankruptcy. Right. And then you'll also find that the consolidation company does not follow through on their promises. Right. It's a dirty, slimy, slimy business.

So what's your parents' house worth? I'm thinking somewhere around $800,000. Are they in poor health? My mom is. My mom's incapacitated and in the hospital right now. I'm sorry. Yeah. Okay.

And why are you the power of attorney they just threw up their hands and said we can't we don't know what to do or what my mom's always done the finances and she's led my dad to believe that it's everything's okay and um you know she's been in and out of the hospital since labor day and and i just got involved to try to help make sure everything was current and on time. You have total control of the checking account now? I do. They don't have access to it anymore to screw it up any further? They do have access to it, but my mom's incapacitated,

and my dad's on board with getting things done. He's not going to touch it? No. She's not going to touch it? No. Okay. Because, you know, you can't outrun them continuing to do this. If they keep putting their fingers in it, your efforts are going to be for naught. Right.

No money at all? No money at all. My dad's used all his retirement money to try to keep this house afloat. How long have they been in this house? All the resources. About 15 years. They're in Boston as well? Yes, just south of Boston, yeah.

Okay. Expensive real estate market. Okay, the easy equation is very painful and that's sell the house and pay off all the debts and buy a house or a condo for 400 grand that they move into that's paid for and now they're have uh five thousand dollars a month to live on and they got no payments in the world. They're not going to do that. You're going to get kicked out of the family if you do that.

Yeah, that's a longer process because there's a lot to clean out of the house, and it's a pretty unique style house. Yeah, but it's going to have to. I mean, if we're three years from now and your your dad is fed up and you've made no progress and your mom's in heaven if that happened uh you're selling this house that is where we're headed that is where we're headed but we're probably not there today emotionally you're probably going to try some other things first uh did you say 17 or 12 on the car? 17 on the car. And you have another car?

Yeah, we're willing to get rid of the car. We have two other vehicles, one of which we can sell and make some money to pay toward the credit cards. Good, yeah, pay off some of the credit cards and sell the other car. And then let's just list our debts smallest to largest and pay minimum payments on everything but the little one. But there's no magic pill out there that you can take. You can call the credit card companies and yell at them as the power of attorney,

and you're going to send them a copy of the power of attorney, or they're not even going to talk to you. They're not allowed to. But they might lower the interest rate or put some short-term moratorium on it if you work an aggressive payment plan to clear them. And, you know, you might bribe them. How many different cards are there? You're going to die, but it's about 12.

Good. No, that's good because that way you can play them against each other. Right. In other words, I would just not pay somebody that's not cooperative, and the one that gives me great deals, I'd knock them out fast. Gotcha. Punish the ones that don't cooperate. Sort of like what the consolidation companies do, but I'd do it myself.

Yeah, but what they do is stop all payments, which destroys mom and dad's credit. We don't need to do that needlessly because they can actually pay the bill. You get rid of the car payment and you get rid of some of the credit cards off of one fell swoop here selling two vehicles, then, you know, you're back in balance again. We're going to be on a tight budget, beans and rice, but so be it. Right. Now, what's the business loan? It was something that my mom took out during COVID covid and like when they're handing out money to

everybody and i don't have $45,000 yeah so she took out a ppp loan on a business she didn't own well my dad had a had a business that he just dissolved and sold did he make any money on the sale no okay you need to dig into this loan and see what it is and see if there's some forgiveness uh on it it might have been a it might be a a ppp and there may be that he might have met the guidelines before he sold the business to have it forgiven okay you need to find out what it is she did there i don't know what she did off top of her head and you don't either yet but i'm gonna i'm gonna paw push pause on that puppy let it sit there a little bit till i dig into and find out what covid crap they did here it's probably a ppp and it might be forgivable depending on what he did with his employees and so forth there's

guidelines on the forgiveness on those things a vast number of people though got stuck with these like this i was yelling at you america not to take these things because i knew i was going to end up with this discussion a year and a half two years after covet and here i sit doing this pretty regularly now anyway that's aside from that uh so yeah sell the cars two of them um don't need much of a car here right now uh list your credit cards smallest to largest begin to use them to beat up on each other uh and and negotiate them go i got 12 i'm the power of attorney i've got a a mom that's ill and in and out of the hospital i got a dad that's clueless and so what you people are is up a creek You're not going to get paid unless you work with me. And be kind of sassy and smart aleck with them. You don't have to be completely rude, but cop an attitude and a swagger.

Go 75% Boston on them. Not full Boston, 75%. Hey, Chad, let me ask you this. You mentioned just offhand that your dad has dumped his entire retirement savings into trying to save this house. Has this house been a quagmire for a long time? Yeah. We had a significant loss in the family, and we sold the original family home and built this one. And I don't think my family ever stopped and grieved the loss of that loved one.

Like you guys always recommend, stop and pause for a year. They did this right afterwards and never slowed down, and it's just caught up with them now. So this house has ghosts in it, though, right? Yeah. In that regard, yeah. Might be moving the houses or something you talk about sooner rather than later. Then I might change my advice.

I don't see a situation where this house doesn't get sold at some point. And so I, man, the sooner you get this quagmire just off your dad's neck, man, it just feels like it's been weighing him down for a long, long, long time. Yeah. Let's begin to clean up the mess. He got plenty of cash to live, especially with a paid $400,000 condo. You know, and you're in position to do every bit of that

the way you're talking about running this down. He's lucky to have you, man. Yeah. You're a good man. You got some work to do there, brother. If we can help further,

you call us anytime or call one of our coaches. We'll help you. This is The Ramsey Show. Are you sick of planned obsolescence? You know, when companies make products crappy so you have to buy more of their crappy products? Well, me too. And it's why I love companies like Grip6. Grip6 is all about quality products meant to last forever. That's why their comfortable, bulk-free belts, slimline wallets, and lightweight wool socks

all come with a lifetime warranty and simple returns and exchanges. So check them out at Grip6.com today and get up to 20% off with the promo code RAMSEY. Well, if you slept in on Black Friday, nobody blames you. I mean, you did miss out on some pretty good deals, maybe, but so what? You know, I think it's about to work out in your favor because now you've got Cyber Monday, right? And with us, you can get prices as low as $5 on some of our best-selling books and some of our tools. The deal that's going the fastest right now is the 2023 Gold Planner. The Ramsey Gold Planner has been a big deal since Christy Wright put it together a few years ago.

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It's handcrafted, full-grain leather with a built-in cash envelope system. Comes in four different colors. And it's a great gift for the lady who budgets. Yeah, it's on sale right now, too. It's a deal. This is the season to share the hope we have with other people. And if you want to help them, $10 books are a great way to do that. All the stuff we've got for sale.

Apparently, we forgot about inflation at Ramsey, and it's not here. It went backwards. We decided not to participate. I saw they put Own Your Past on sale today. Your book. For $12.99. Shocking. It is shocking.

I'm supposed to at least get a year out of it. You guys, man, selling all of our books. It's fantastic. No, I didn't even get a year out of Baby Steps Millionaires. It was number one bestseller in January. Here I sit in December. It's already $10. $10, man.

There you go. Check it out. Cyber Monday number one bestseller in January. Here I sit in December. It's already $10. $10, man. There you go. Check it out. Cyber Monday. One-day sale today. RamseySolutions.com. Get them before they're gone. Marty's with us in Waco. Hi, Marty.

Welcome to the Ramsey Show. Yeah, man. I'm glad I could get a hold of you. You too. Glad you're here, brother. How can we help? Yes. So I started listening Thanksgiving last week and I'm essentially starting my baby step journey. Last two years, I've kind of restarted my life twice and I might have a son that's to be determined hopefully by the end of the week.

So I'm just trying to finally get my head straight. I mean, I didn't think about this even before trying to establish a fraternity. It was getting my head straight, and I've been making strides over the last few years in my life. Financial stability is a big thing that I still need to work on though. When you say you've restarted your life twice over the last couple years, what does that mean? Yeah, so I guess the long short story is I've been on my own since I was 12, went to the Marines and I did it seven years, but as soon as, went to the Marines, and I did it seven years. But as soon as I got in the Marines,

I essentially went back to just being as frugal and humble as I was before because, you know, didn't really have any major skill, any formally trained skills I could put on resumes and everything. But I finally found a job that was willing to give me a chance, and I've proven my salt. And then through that, I thought I found, so, sorry. Whenever I came to this job, I left my hometown of San Antonio. Okay.

Was living on the side of the road for a month, so I finally got money to, you know, get a place. And then I heard of a job opportunity that was supposed to, that did pay more back home, went back home, but the cost of living hit me again and went to my savings at San Antonio. At San Antonio. Okay. So you've woke up and found yourself, where are you living right now? Here near Waco.

I'm about 45 minutes from Waco. Okay, and you got a good job? Yes. All right, what do you make? I work for the state, so. Okay, what do you make? $31,000. Okay, and how old are you?

26. Okay, so you're not homeless. You're stable. You got a sustainable situation. Mm-hmm. And it sounds like you got a girl pregnant uh yes okay and you're waiting to hear about the uh paternity of the baby which she is carrying correct or has been born a year and a half old now okay so uh and you're just hearing about this why uh i'm not just hearing about this uh whenever we found out she was pregnant um soon after she broke up with me and uh she avoided all my

attempts to reach her so i could you know attempt to be the father that um um, I wanted to be. Um, and, uh, yesterday after church, um, I decided, um, I went by memory where her dad was. Luckily I was able to find a place and I was able to get back in touch with her and she was finally willing to compromise. So yesterday we talked like, Hey, I want to order a home paternity test and, uh, um, which I'm going to order a home paternity test, which I'm going to order today. Okay, I'm going to step in and call bull crap on some of this, okay? Okay. You have a legal right to your kid, and I want, whether she tries to block or not, I want there to be a record so that when you –

I already have records. No, no, no, no, no. I want there to be a track record that when you... I already have a record. No, no, no, no, no. I want there to be a track record. Let me say it that way. So that one day when you sit down eye to eye, chest to chest with this young son, I want you to be able to say, I fought for you. I went to the ends of the earth for you. I worked four jobs.

Do what? I have a manila envelope proving proving all the texts and um good good good stuff like that now listen listen whether this paternity test proves true at the end of this week or not you're you've been going halfway okay and it's time to fully step into who you are going to be. Is that fair? Yes, of course. And thankfully, I've re-found religion recently, and like I said, I've been making major strides in my life the last few years. Good, good.

I'm becoming a better man. Good, good, good, good. It sounds like you've got a lot of things heading in a positive direction after um a lot of circuit a lot of circling the wagons back and forth back and forth back and forth so yeah no good good for you i'm glad for you yeah i'm proud for you good good move yeah so so run this to ground find out with the paternity test whether this is yours if it is yours you're all in as a new dad like you said and like john said you're gonna make a record you're gonna insert yourself into the life of the child and uh you're you're gonna insert yourself into the life of this church so you've got some good men walking along beside you and that can

teach you things that you've been looking for since you were 12 uh you found a few of them in the marines you'll find the rest of them in the church and which are skills on how to be a man and you're learning that and there's no harm there's no shame in the fact that you're learning that now the only shame will be is if you don't

bother to play through and to learn it and we'll help you with the money piece of it if you'll hang on I'm going to have the guys pick up, and we're going to sign you up for the best thing we have, which is Financial Peace University. It's nine weeks long, and you can take the lessons on how to handle money like a grown-up, like a boss, and how to not only get out of debt,

not only how to live on what you make, and start to address your career issues with ken coleman stuff if you want to as well um i mean if you'll come around all the ramsey stuff we'll walk with you in all these different areas of your life and yeah i'll give you a copy of own your past change your future as well yeah i want you to read that book all the way through we'll send you a an audio link too so if you're if you're not a reader you can listen to it while you're driving yeah because really there's a so much to that idea right there in your situation. It is in everybody's life, but owning your past.

Say, this is what happened, but it does not dictate my future. That's right. And change your future. So John's book will be in the mix as well that we give you. We're going to load you up with homework, buddy. It's all free. The only problem is now you've got to go do all the work. And we're here to help you call any time.

Any of us will help you here with any part of this. But you're all in now. It's all looking forward, going forward. No more circling. Straight lines. Lots of straight lines. And lean into the guys at that church. Make them lean into your life and let them speak into you.

This is the Ramsey Show. Let's go. our scripture of the day colossians 3 9 and i have put on the new self which is being renewed in knowledge after the image of its creator kind of for our last caller there every person that's alive was endowed with a brain that has the capacity to change itself dr andrew huberman caroline leaf stuff on that's very interesting too and even um our our friend james on atomic habits uh james clear the uh the idea that you reset your identity and say okay this is not the thing I'm going to do. It's who I am. And that kind of person doesn't do that.

That's right. I am no longer an obese person that eats too many donuts. I re-identified. I actually had Dr. Elaine Norton is a friend of mine. He called and challenged me on my show. He said, I got to fact check you on a thing on one of my episodes. And he said, you told somebody

that you can't control XYZ. And he said, that's a story you tell yourself. That's simply not true. And we talked for 30, 45 minutes. He was right. He was right. And I had fallen into, so I do this for a living

and I had fallen into a trap of just- Oh, you're talking about your gummy bears. That's right. You can't control your gummy bears. It's a choice. He says, you need to stop telling yourself that. Now, choose to tell yourself that, but you can become a person who doesn't do that. And, man, he was right.

So it's good to have friends to challenge you. Dr. Leaf speaking at Entree, I had never seen the actual videos. Of a thought? That a thought, they have now proven, I mean, you can see it. It's a thing. A thought is a physical a thought becomes a physical location in the brain you can it's and you can negative thoughts have different shapes isn't it well than positive thoughts i mean physically you can it's a thing

you it's not like a i always thought of thoughts as like spiritual and they're just in the ether and you know they're like the internet you know or whatever right but uh but no it turns out thoughts have proteins and uh and chemicals and they take shapes and they look like a mushroom cloud of death if it's a negative thought and if it's a positive thought it's kind of pretty it's so interesting it's pretty wild very and you can just decide to replace in your brain you know the Bible talks about taking every thought captive. Well, there it is, you know. And they have consequences, right? I'm going to take this thought captive, and I'm just going to decide that and that we have that power.

And it is a, the spiritual guidance from Scripture gives us that power. But it turns out that, you know, all these years later now science is actually proving what we already knew to be true to be true i love the idea of renewing your mind is not a thing that not renewed but it's a thing that's ongoing right i'm always working on my thoughts and i'm always hoping iron sharpens iron i got men in my life and women in my life who would challenge me and push me towards new ways of thinking and new ways of being i love that five years from today you'll be the person you are charlotte jermynnis jones said except for the books you read and the people you mean i love it be the same person you are today i love it and so the thoughts and i'm going to decide i'm

going to control uh you know the real you know people talk about the real estate in your brain you're getting rent free in your brain that's a that's a thing it really is my brain got expensive this past year it's good cost a lot to get up in there now. You've been evicting some folk. That's right. There's vacancy. That's right. It's expensive now.

Bob is in Minneapolis. Hey, Bob, welcome to the Ramsey Show. Hey, Dave. So my question is, I came across this opportunity to buy a multifamily apartment building in a prime location. I'm very tight with my money, and I'm constantly trying to come up with different ways to make more money aside from my full-time job as a licensed electrician. The only debt I have is on my house with $75,000 more to go. The price of the apartment will range anywhere from $1 million to $1.5. The bank has approved me and my partner on this deal and is contingent on the rent roll. I know you guys like to pay cash for things and so do I. We only have about 10 to 15% for a down payment. I'm just an average

guy that makes $75,000 a year and really want another source of income. Do you think this is too much debt to take on? Also, if you were me, how would you tackle this process if I were to go through with this deal and we plan on using a positive cash flow to pay down the debt on that pretty aggressively a couple things on top of that well I can stop you okay okay yeah let me just stop you gave me enough information and And here's the thing. You've got the fever really, really bad. And I've had the fever. How old are you?

27. Okay. I was 28 when I filed bankruptcy from doing deals like this. Okay. Exactly like this. Like that? Exactly like this. And this deal is a bad idea. It's a bad idea because you're going to have a partner and you don't need a partner, number one. It's a bad idea because you're going to get in trouble with a partner and he's going to leave and then you're going to be left holding the whole bag or he's going to start doing drugs and you're going

to be left doing the whole bag or he's going to get divorced and move to montana and you're going to be left holding the whole bag or whatever happens to stupid butt partners you're going to learn the hard way the only ship that won't sell is a partnership the second thing is that mathematically when you've leveraged this thing as high as you've leveraged it dude you got no wiggle room here if you get a 20 vacancy this thing will bankrupt you it won't carry itself because you got it won't it won't service the debt you got you got to keep it completely full and operating like a maniac for with a 15 down an 85 leverage position 85 loan to value you can't keep this thing cash flowing um and so no you're not a buyer for this this is an opportunity this is not an opportunity for you this is a nightmare i don't know if i can talk you out of it because you've

got the fever so bad i can feel the heat coming off your forehead i know i just i feel like i need to do something you don't yeah you don't but don't don't do something desperate and stupid okay because this is this is this has got so many red flags on it now someday i want you to own some rental property that you pay cash for i did deals like this i own three million dollars worth and when i was 28 i was bankrupt with a brand new a toddler, and a marriage hanging on by a thread. I don't want that for you. And you're not just an average guy making $75,000. You're a guy that makes $75,000.

And you're 27 years old. And you've got the ability to earn some money, build some wealth, and own some paid-for real estate in the future. And then it won't own you. And you won't have a partner screwing up your life and um uh i don't know if there's any amount of words i can say while i have you on the phone to keep you from doing this but if i could say them i would right now um so there is no equation under which if i were you i would do this this. Your mathematics are out of whack on this. You don't know what the flip you're doing.

I own hundreds of millions of dollars worth of real estate. And believe me, you have vacancy. You have legal costs. You have people that don't pay and you have to remove them. You have people that beat their wife and you have to remove them because they're in jail. You have all this crap that happens when you own a multifamily like this. And, oh, and the heat and air goes out and it's $25,000. And you don't have any money.

Oh, and then the roof starts leaking. Oh, and then Coates comes by and says, oh, you know that way you did the parking lot? Oh, I didn't do the parking lot. The last owner did. did oh doesn't matter you got to spend 60 000 bucks redoing that or we're going to shut the whole freaking place down oh by the way your light your electric meter that you've got on this thing it's now antiquated and the electrician says he won't work on it because it's dangerous oh that's going to be 26. See, this is the crap that they don't tell you about when they say, your renters are going to pay it off for you. Your renters aren't going to pay it off for you.

You're going to pay it off, or you're going to go bankrupt in the process of trying to hold on this thing. So I hope I said enough. Well, hold my beer, Dave. There's the math consequences here. Let me tell you what else is going to happen. You're not going to sleep. You're not going to sleep for years because that brain that is so desperate to get an income, a second income is also going to be the same brain that's going to

recognize you are no longer safe. You are no longer in control of your destiny. If you get laid off, everything collapses. Your relationships are going to suffer. Don't do this. You're worth more. You're worth a non-anxious life, man, and this is not it. That puts this hour of the Ramsey Show in the books. How's that, man? We'll be back with you before you know it.

In the meantime, remember, there's ultimately only one way to financial peace, and that's to walk daily with the Prince of Peace, Christ Jesus. Hey, it's John Deloney, co-host of The Ramsey Show. Did you know over 18 million people listen to The Ramsey Show every week? A lot of those people listen on one of our 600 plus radio stations across the country. To find a station near you, go to ramsaysolutions.com slash show.