The Ramsey Show - App - Only the Government Could Create a Mess Like This (Hour 1)

Episode Date: August 28, 2023

Live from the headquarters of Ramsey Solutions, broadcasting from the pods, moving, and storage studios, it's The Ramsey Show, where we help people build wealth, do work that they love, and create actual amazing relationships.ade washall remsey personality is my co-host today as we take your questions about your life and your money it's a free call some say the advice is worth exactly what you pay for it the phone number is 888-825-5225. Chris starts this hour in Phoenix.

Hi, Chris. How are you? I'm good. Thank you for taking my call. Pleasure to speak with both of you. And I hope the advice is better than free, which I'm sure it will be. So thank you. We'll see.

We'll see when we're done. So we are a new Ramzanite, or I'm not sure if there's a correct term. We're new to the Ramsey plan. Started in January. We've paid off $27,415.58. The problem is that we keep having, I've had some medical issues. She just got out of the hospital for two weeks just last week. We just found out my son needs like $3,000 for a car repair.

And we just feel like we're going like $3,000 for a car payment or a car repair. And we just feel like we're going one step forward and two step back and we can't just get traction. And my question is my grandmother gave us a stock when she passed away and it was worth about a hundred dollars a share. Now it's worth about $240. So it went from about $8,000 to $24,000. Should we sell that? Should we do something else? I just don't know what to do. I do think that you should liquidate that stock. Are you going back?

When you say you're going backwards, are you going through your $1,000 emergency fund backwards, starting from scratch? Or is it just you're not making the type of headway on your snowball that you'd like to make? I would say both. Okay. All right.

I agree with Jade. The thing is this, $24,000 cashed in an emergency fund will not make the emergency stop. Okay. There are two kinds of – what happened with Sharon and I, and see if you can relate to this jade if it worked with y'all too the more we planned and the better we got at budgeting and the more we saved the fewer emergencies we had yep because when you're not budgeting for uh

say car repairs like cars aren't going to break of course they're going to break so you got to be budgeting for car repairs if you're budgeting for car repairs a car repair comes up you just fix the car it's not an emergency if you have a chronic medical situation an ongoing medical situation that becomes a budget item that's something you're just setting money aside every month for and it's not an emergency and so the more money you have and the better planning you are the bigger a thing it takes for it to be an emergency you're still in the early stages where every little thing has added drama now hospitals hospital stays aren't little things but car repair with your son tell me about that one um so he just uh it's just it was a not a very expensive

car that we got for him he's a junior and junior in what so just high school i'm okay that's okay okay um and uh and so there was just some issue there was some engine issues now there's just that we got a cheap older car and so uh the repairs are not – the car is worth more than the repairs. Right. So that's good. But it just happened. We just found out Friday, and again, my wife got out of the hospital. It was a bad week last week.

Let's put it that way. Okay, so there's two things that help you with this emotionally. One is if you look at these things and you go, okay, your wife being in the hospital, is this a chronic illness?'s wrong with her she does have a chronic illness but this was something totally different that was an actual emergency and she had to have a procedure and some things done to get her better had nothing to do with her other medical issue unfortunately okay and so you know that event is a one-off the chances of that happening again in the next three years are very close to zero i would agree okay and so you know you're not gonna have 10 of those but you will have 10 of the car breaking down

those are predictable things that go on i mean oh my dog got sick and had to go to the vet if you have a dog you need a line it's gonna be sick yep you know it's vets and if you have children pediatrician bills are not an emergency they're an expected thing they're gonna get the flu they're gonna bust their head and have to have staples just count on it hey are you using an every dollar budget i do have the every dollar app we did start with that okay i did not factor in january when we started but you hadn't you hadn't factored in these other life things yet i didn't say i was doing it well dave i wasn't making fun of you you're you're at a very normal listen if if you need to be smacked around i'll do it you know i'm good at that that's you're actually doing good for the stage that you're in you've been doing

this for only about six or seven months and you're at the stage where you discover that i can plan away some emergencies therefore they're not really emergencies other emergent in my every dollar budget other emergencies are going to be an anomaly and they're always going to happen and that's what the emergency fund is for and when you do that every dollar budget let's say you did your budget for august right and we're going into september it will use august the the previous month's budget as a template for the coming month's budget and you need to use that to learn from you need to look at those things and go okay you know what there was a medical thing on there and maybe that was a one-off but maybe that's an indicator that i need to use that to learn from. You need to look at those things and go, okay, you know what? There was a medical thing on there and maybe that was a one-off, but maybe that's an indicator that I need to keep that on my line item. We had a car, you know, learn from what your previous month line items were because that's

telling you about what your life situation is. Don't just take them off there and assume they're one-offs. Learn from that and go, okay, you know what? Let me go back because a couple of months ago we had something like that too. So that's an opportunity for you to learn the longer you do it the more accurate it becomes sounds silly but when we first started our budget our kids were little and uh a field trip yes that we didn't know about and surprised us an activity fee at school that we didn't know became an emergency and that's the type of thing

i'm talking about that's not really emergency and so i transferred that emergency from me to the kid by saying you don't tell us and it's not in the budget you don't go facts and suddenly they their memories improved their ability to communicate from the classroom to the home was vastly improved that's right yeah you put it so i just transfer it so now it's not an emergency now we can plan for it we don't have to have all this drama because emergencies always have drama well yeah i mean it's it's teenagers car breaks that's a lot of drama but if you look at it a lot of the things that we say it's like if you just look at the context clues you might find that it's coming and you need to prepare for like if you're ac

it's it's barely making it it's making noises you have to look for the context clues that are going so you say okay you know what well it's 10 years old and we have record heat right count on it yeah count on it's coming on it it's coming hey every dollar budget webinar this wednesday jade is going to be doing this uh talking about irregular income talking about how to prepare for upcoming emergencies uh going to be covering all of it it's a free webinar limited only 10 000 folks can come and we've been having a little bit over 10 000 sign up for these so free every go to everydollar.com slash budgeting. It's this Wednesday. What time?

It is at lunchtime, 1130 Central Time. Central Time. All right. Jade's Every Dollar webinar, August 30th, everydollar.com slash budgeting, completely free on how to run the Every Dollar app and how to run a budget. This is The ramsey show jade washall ramsey personality is with us today open phones at 888-825-5225 i don't know if we're allowed to announce this or not but i'm gonna act like i own the place uh george campbell is not here today because ge George has a new little girl.

That's right, Dave. And she is beautiful. She looks just like her mother, thank God. Yes, she does. And she's precious, and she came on Friday, and he's useless. I bet he is. He is completely useless. He's in a pile.

Yeah. Well, that's what little girls do. They do that to start with. But man, I'm telling you, George, he is going to be an enabling, doting father. Oh, 100%. Useless. He is with his dog, so I know he will be with his kids. The dogs might have to take a lower list on the totem pole at this point.

Those dogs have no idea how much their life is getting ready to change. I know, that's right oh it's exciting well congratulations to george and whitney little mia is absolutely oh there they are on youtube which he did post it on the on his instagram so i guess i can say it on the air it's not a secret so mia james yeah she's a precious little thing. All right, open phones at 888-825-5225. Jamie is with us in Alberta. Hi, Jamie. Welcome to Alberta, Canada. Welcome to The Ramsey Show.

Hi, thanks for taking my call. Sure, what's up? I just wanted to say my husband and i started your baby step last september so about a year now and uh we did the whole beans and rice i sold everything we had and i went back to work we got completely debt free paid off 40 000 in debt way to go fully funded emergency fund and are now and we've already been putting our 15% away into retirement. So now we're kind of on step, I guess, five and six, but we've kind of come to a bit of a, I don't know,

it feels like stagnant spot now in this plan because my husband's lost motivation because we accomplished so much, and he's not really keen to pay down the mortgage. Wait a minute, a Canadian that doesn't want to pay down their mortgage? Do you know how weird that is? Well, I guess, yeah. I mean, he wants to, but not at the expense of us not having any fun for the next few years of our life. Well, there is something to be said about that because you're used to the intensity of baby step one two and three right it's you're just going hard in the paint every dollar is going to that but it doesn't

have to be like that for baby step six i know but he wants to live a little out of that he does and i want to stay in this mentality because no you're wrong baby steps oh yeah you're just kind of gluttonous and you want things you don't need. No, he's not gluttonous. He just would like to eat occasionally. Yeah, he... You've not been feeding the boy. He wants a new pair of jeans, okay?

Well, it's not so much that. It's bigger stuff. Like, he wants... Because right now, he works an overtime shift. He brings in about an extra $600 just for one shift. So he works a couple of those a month. He wants all that extra money to go towards a camper or like a piece of land for us and our kids to enjoy,

which I'm like, I want to do that, but not until we have like... Do you have the money to save up for that piece of land? And like, aside from the $600 that he's getting for this overtime, do you have other money to put towards the mortgage? Oh, yes. Girl.

We probably have every month. We probably have an extra $2,000 that just kind of isn't doing much. You got to let him have the $600. No, no, no, no, no, no, no, not the $600. It may be $1,000. It may be $400. It's not. His overtime is not relevant.

Here's what we don't do okay we're going to move after baby step three from intense scorched earth beans and rice rice and beans ramen noodles we're going to move away from that in baby steps four five and six from intense to intentional intentional means these are the stages at which you pay cash and upgrade your car these are the stages you save up and buy an inexpensive paid for used camper not a three hundred thousand dollar camper oh no okay this is the stage at which we go on vacation this is the stage at which we can put going out to eat back in the budget this is the stage if we need to replace the 20 year old mattress we pay cash for it and replace the mattress this is intentional

not intense and some of those things are going to slow down if you had what you could have put towards the house but you're going to do some of those things because it's a longer slog to pay off the house you know you're moving from sprinting to marathoning. Jamie, let me ask you a question. And my knowledge on this is somewhat slim, but I do know in Canada, your interest rate changes every several years, right? Like every five years, every 10 years. Is that right? Is that what you're trying to avoid? Is there any part of that?

Kind of, yeah. So we just re-signed for five years of mortgage right before rates went up. So we're only paying 2.2%, which is awesome. That's great. No, you just got the pedal to the metal and you don't want to let up. She doesn't. You are still going to pay off your mortgage so fast. You will.

How much is the balance on your mortgage? About $400,000. What's your household income? Like, is that including the overtime? Generally, it's about $200,000 combined. Okay, so when do you think you're going to pay off the house? Like five years? Well, if it's my husband's way, it won't be for 15.

No, your husband's not really saying 15. You're whining. It's not all or nothing. Well, honestly well honestly okay originally when we started your baby steps we wanted you could do it if you with intensity you could do it in three and a half to four years of course i agree but no no no no no no but i am not going to recommend that okay i'm not going to recommend three and a half to four i'm going to recommend five or six and buy an inexpensive camper. I would not buy the land. I'd buy a nice camper.

I'd buy some things around the house, loosen up, and enjoy your life a little. So it sounds like if you are really telling the truth about him, I think you're exaggerating his position. But if you're really telling the truth about him, what we're telling you to do is between you two. But I'm thinking he's probably closer to where we are, and you're just all riled up. She's an all-or-nothing personality. I love it.

That's what got you here. Of course. That's wonderful, but it's not sustainable over four years, five years. It's very difficult to do that. You all did it over a long period of time, but you were in Baby Step 2 the whole time. Yes. And you didn't have a choice. Look, Sam and I have had that conversation,

and I am the one that's like, put all the money on the house. And he's like, calm down. We're not doing that. Ah! Yeah. All right. Anna is with us in Meridian, Mississippi. Hi, Anna.

How are you? I'm great. Thank you. So excited to be talking to you. You too. What's up? Okay. I have a question about retirement. If I can give you some numbers. My husband and I are about 56 years old. I get a $2,000 in MET pension. I do some contract work that brings in about $2,000 in MET. He makes about $120,000 a year. He has $350,000 in his work 457 account. Our house is worth about $400,000. We owe $180,000. Because we are behind

the game in investing, because obviously through the years, if we had done the 15% for years, we would have had more than $350,000 in his account. Should we invest more and just pay the regular on the house, make the regular house payment? Or should we try to pay down the house and continue with just the 15% investment? Well, the way that we're going to teach you, we're always going to tell you to walk through our series of baby steps. How familiar are you with those baby steps? I am. I am familiar.

We are doing the 15% now, but we haven't been. I didn't know if we needed to Are you going to keep doing it going forward at least 15%? Absolutely. As long as you keep doing the 15% going forward, any money above that that you have left, you would throw out your mortgage because you want to get that mortgage paid off.

You owe $180,000 on it. He's making $120,000 a year. It sounds like you're also getting another piece of income, $2,000 a month. You've got a big shovel to really hit this thing. Yeah. So you've got about $125,000, big shovel to really hit this thing yeah so you you got about 125 130 000 to hit this with i'm gonna do exactly the baby steps here's why you want a paid four house when you get to retirement here's the other thing if you are is the 350 invested in good mutual funds

um i'm not sure i just know it's his work retirement account it's a 450 make sure it's invested in good mutual funds the way we teach and making a good return. If it's making 10%, it'll double every seven years. So not counting what you put in, the 350 when you're 63 will be 700. That's a good point. When you're 70, it'll be 1.4 million. You're going to be okay. You're going to be okay.

If you keep on track, you're going to be just fine. This is The Ramsey Show. Jade Walsh, all Ramsey personality is my co-host today. I'm Dave Ramsey. This is The Ramsey Show. So student loans are emerging from deep freeze and borrowers are confused. The Wall Street Journal says, i will add to that um they're angry oh yeah i will add to that that they're scared yes frustrated yeah it says student

loan borrowers are finding out that restarting 1.6 trillion federal program is much more confusing than just when they were able to turn the switch off, right? It's harder to turn it back on with the pandemic relief ending. Borrowers will start owing interest as of Friday, as in in four days. They are learning new payment schedules. They're often getting this information via email from these servicers that they might not have ever heard of, okay? And this is what I want to talk about. I know you guys are getting emails in and it's like, oh, who are you? Oh, you're the person who's servicing my loan now. And you don't even know.

You don't even know what your payment is. It says it's this is about four in 10 borrowers. Their loan was transferred to a new servicer during the pause that began March 2020. 40 percent. They moved the servicing on already incompetent and in-up industry. Yeah. This is going to be a freaking barrel of fish hooks. Yeah you could have multiple new servicers. I mean you got 40 million people so 40% of 16 million. 16 million accounts have been moved and are all restarting interest Friday and payments in October. Only the government can create a mess like this.

I mean, you have to work to screw up Christmas. Seriously. Look. And the problem is these people are calling to find out information this one lady her story is she's had her loans forever she's got 14 000 left and she's calling and not able to get through the lines because the lines are so jammed and she can't get clarification on what her loan is on what the amount is and so after three years of payment she's finally called of no payment she's finally called and can't get answers so that's why we've been telling you guys don't wait on this don't sit on your hands don't wait till the last minute

you need to start here's what's going to happen if you do nothing because you get confused because you can't get through on the lines they're going to tag you with late fees because you're not paying your payment on time even though you don't even know where they are yeah they're gonna you're gonna get confused payment on time, even though you don't even know where they are. Yeah, you're going to get confused because there's a couple of things. There's different options out there, right? They've got these payment plans that they're automatically enrolling some people in, and they will automatically enroll you if you are delinquent on your first few payments. So you do not want to just act like this is not happening.

Now is not the time to be in denial. They'll put you in the 30 year. You're never going to pay it off plan automatically. That's the default plan. Yeah. 30 years. You're never going to pay it off. That's like a mortgage.

You're going to keep forever. That's the idea. The other default is that it's like they're calling it an on ramp, Dave, where it's I need a 12 month on ramp during which time, by the way, interest is accumulating, but they're telling you, okay, that's fine. We just won't report you to the credit. We're going to ease you into screwing you. Yeah.

We just won't report it. You're still screwing yourself. We just won't tell anybody. We're going to screw you, but we're going to ease you into it. So let me help you with this, okay? A bank that has a loan out with you, if they are collecting the interest, does not want you to pay off the loan. They want to collect the interest forever. You know what a student loan servicer is? A bank.

You know when they want you to pay off the student loan? Never. They just want you to pay fees and interest forever. So they're going to make this difficult and confusing and frustrating because they want you there forever. And they're going to offer you plans that are forever. This is how this works, boys and girls. Don't be naive.

This is called planned incompetence. The Navient agent on Borrowed Future said that they were trained to mess up the call so you would hang up and get frustrated and not get your situation rectified so you stayed in debt forever that's in our documentary on student loans a an actual agent that used to be on the phones with Navient and we had to garble her voice because she feared for her life because you know you don't cross these people i'm kidding but not really but um oh my gosh well here's what ever what i want you guys to take away from this is a we're here to give you information and we're going to tell you more about a live stream that we're going to offer about this very

thing but y'all are smart you can go online you can read about this stuff you can find out for yourself you can be in the know so that when you talk to these people on the phone they're not you're not relying on them for information you already know what you want to do and you're going to do what you're going to do that does that make sense don't call these people saying well what do you think i should do do you think i should get on a payment plan you think i should wait on biden to forgive my loans honey that chip has sailed they are not your advisors yeah we, we're talking about the Supreme Court shot a cannonball through his butt. Okay? There is no forgiveness.

No forgiveness. It's done. He sunk the ship. It's done. The ship has sailed. It's gone. Yeah. You're not getting forgiveness.

The forgiveness is going to come at the tips of your fingers when you push submit payment, submit payment, submit payment over and over and over, and you pay the freaking thing off. That's where forgiveness is going to come from. So you don't need to ask anybody about that. That's already pretty much old news. It was called a suspect, a sus move politically when he said the forgiveness anyway. He's a lawyer. He knew an executive order didn't have the ability to do something

that an act of Congress has required, and the Supreme Court confirmed it for it for him it was such from beginning it helped him with the midterm elections guys grow up pay off your freaking debts those of you that have had your head in the sand let me tell you about this this stuff has a high rate of resurrection it will come up out of the grave zombify your butt okay it will come up and walk dead straight into your living room deal with this that's a fact i told people i was sharing with them a couple days back on the show you know sam and i had 280 000 of student loans different providers they got sold off and were spread into chunks everywhere did you experience the planned incompetence oh yeah look if you that's why i said if you get on the phone with these people these are their parents are the worst

yes they hire people whose parents are cousins the worst yeah kissing cousins the worst of the worst okay you can't depend on them they will keep you in debt forever inbred brain damaged fool get my account straightened out oh my god yeah it's unbelievable all they want's a payment all they want is a payment they don't want your peace and we actually don't even really want a payment they just want the interest and the fees they want you to stay in debt forever did i mention that forever there we go so we're going to help you with this wall street journal is telling you that people are really confused we've added to that we know some of you are angry and we know some of you are scared you're disillusioned with the political

system welcome to adulthood and so uh yeah there you go you're gonna end up paying this boys and girls men and women gentlemen ladies you're gonna pay it so let us help you we're gonna do that jade who knows something about paying this off, paid off $260,000. Rachel Cruz, leading student loan expert, financial expert with Ramsey. And I'm going to hang around, too. The three of us are going to do a student loan live stream. We're excited about this. It's going to be incredible.

It's how we got into this mess and how we're going to get out. Student loan debt in America. We're doing this on September the 12th. You know how much we're going to charge out student loan debt in america we're doing this on september the 12th you know how much we're going to charge you nothing it's free for free and let me just reiterate it's worth every penny this is we're going to give you real solutions we're going to show you tactful practical things solutions it's what we do we're about solutions look at that look at that we're going to help you guys yeah seriously we're going to show you how to get out but uh you know spoiler alert no easy way there's work involved yeah this is not alert you're going to pay a price to win

spoiler alert we don't have any hacks that make this easy spoiler alert all we're going to do is do our best to give you information and inspiration to get your butt in gear. Because some of you have been sitting around with your head in the sand, and it's not going to get any better. You know what happens when you stick your head in the sand? Your butt is exposed. Okay? It doesn't work. All right?

You've got to deal with this. You've got to deal with this. Student Loan Livestream. RamseySolutions.com slash studentloans. Sign up. It's September theestream. RamseySolutions.com slash studentloans. Sign up. It's September the 12th. It's completely free, and we want you to watch it because we're going to a lot of trouble to do it, and we don't want two people watching it.

This is The Ramsey Show. Jade Walsh, our Ramsey personality, is my co-host today. Open phones at 888-825-5225 teresa's in orlando hi teresa how are you hi dave i'm great thank you long time listener first time caller absolutely honored to have you how can we help awesome um so um, my husband and I, we are looking for a piece of land, um, to build a home on. We're looking for like two to five acres and we're just now getting started on this, this, this journey in this process. Um, I don't even really know exactly where to begin.

I have actually, um, already started talking with Churchill Mortgage, and a broker has been working with me so far. I just want to know, you know, what kind of wisdom you would share of buying land and building a house. We are debt-free, and we have $90,000 to put down. An aspect of this is my husband really wants to use his VA loan. He wants to use the VA process. Is he disabled?

He's not disabled, but he is medically retired from the military, and he works full-time, and I do too, both in public service sector. Yeah, if you're disabled according to the VA, then they will waive the VA fees. Otherwise, you don't want to use the VA, and I'm not positive if what you've just described is going to qualify. The VA is the most expensive loan out there. It's not a good loan unless you're disabled.

Now, medically discharged may qualify him for the waiver of all those fees. If it does, then it's fine to use it. Okay. I think that it does. Churchill can tell you based on the application you put in and based on the type of medical payment you're receiving from the military. But you have to be disabled according to the military. It sounds like he is. It sounds like that's what you're describing.

But if you're just a non-disabled veteran, do not use the VA because it is more expensive. Okay. Which is weird because it is more expensive. Okay. Which is weird because it's supposed to be a veteran's benefit, and then it's more expensive. So that's dumb, but that doesn't matter. It's the government. Right. Okay, so it really comes down to those fees.

Another question that I had for you was, so we have $90,000 to put down towards this journey. Um, should we, um, so I have a 401k and, you know, I contribute, um, to the match that my company matches. And then my husband, um, does deferred comp, um, cause he's with the sheriff's department. Should we pause those investments while we stack up cash? Since it's a land and building loan, they want like a lot more money down. You don't have to. It depends on how quickly you want to accomplish this goal.

Right? Like if it's important to you to get into the house now and get you know get this money stacked up as quickly as possible you could pause it the maximum i'd be putting into retirement is 15 of your income yeah if you're putting in more than that i would back it down at least to that if you want to back it down a little bit more temporarily but what are you thinking you're going to spend on the land and the build? It's not easy in the area that we're in. It's not easy in any area. Yeah.

So the land, it's looking like it's going to be about $200,000 to $250,000. And then I've been quoted by builders of the type house that we want to build at about $250,000 also. How much land are you buying? Two to five acres, hopefully five acres. That ratio is not smart. Okay. Typically, you're buying an estate lot at the most. But, you know, typically, if you're doing a typical lot build, your land cost should be 20% of your total project.

And so you're a little steep there. You're at 50%. And you're not buying 100 acres. If you're buying 100 acres, the ratios change, okay? But, you know, you may be underbuilding that area substantially. I don't know. I mean, you need to think about where you're buying this land in ratio to the size of the project but if you got 90 grand down on 400 if you got a 400 500 000 project you got 90 grand down you got a bankable deal right now you don't have to

have 50 down to get a construction loan you're buying because the construction loan is going to take a loan a lien against the property, a first position, meaning they're not going to be a land loan and a construction loan. They'll take out the land loan, and then they will do draws to the builder, raising the amount of debt as the house is built, because the money's being paid out to the lumber company. The money's being paid out to the different subcontractors as the build goes. And then when the total house is done, you've got a set loan. In your case, it's going to be $350,000 or so. And then that's going to be, with Churchill Mortgage, become, you're going to roll that into a regular mortgage, a traditional mortgage, a permanent mortgage. And you have

to get a letter that states that you have that regular mortgage lined up in order to get the construction loan. And that letter is called a takeout letter. And the takeout letter means the new permanent mortgage is going to take out the construction loan after the house is completed. That's what it means. And so you've got to get all that lined up and then push those dominoes. And you can close on the land.

You can close on, you don't, you know and you can close on the land you can close on you don't you know you can close on the construction loan you can get the builder started all the same week once you've got everything lined up but get your plans done the budget's done um the builder selected uh and get everything lined up and then you know fire a pistol and push the dominoes and say everybody everybody go here we go love it otherwise otherwise it drags out forever you end up spending three years building a stinking house yeah my my biggest thing for her was like you said the the land is costing equal to the amount of the home that's where it doesn't feel it's okay i mean that'd be okay if again if you've got a large tract but i guess my question is does that affect how they are funneling those funds to the construction loan if the ratio is not right? No, they're still going to make a, I mean, they still want to see the equity in the house when it's done.

So if she's got a total land and build of $350,000 in the thing and it's worth $500,000, they're still going to be fine. That's true. Okay. They're still looking for that loan-to to value ratio at the end of the project regardless of how we got there in their case it's just a small house on a big piece of ground okay so that that that's really just for her her value exactly exactly that's the thing because again you you take a million dollar house is typically a two hundred thousand dollar lot that makes sense you know you got a back in a hundred years ago is a hundred thousanddollar house is typically a $200,000 lot. That makes sense. You know, you got a, back in 100 years ago, it was a $100,000 house, $20,000 lot. Yeah.

$500,000 house, you know, you're looking at a $100,000 lot. So, I mean, that's just, you know, 20%. It's our general rule of thumb. It's not exact. It's not a, you broke something or you did something wrong. It's not dumb, but that's just a general rule on a lot. But if you put 100 acres under it you might have 75 in the land and 25 in the house that's true i just wonder well that's neither here or there i could

come up with stuff on that all day i'm thinking if she under builds that house on that plot of land could that cause her issues selling it down the line yes well and it it's because it's weird it's in a weird it's an under it's a house that's the smallest thing in the neighborhood very strange i'd rather be the smallest than the largest but it's still it's still a problem so that's what you're looking for and you know let's just go ahead and sidebar just a second a lot of people talking about building right now it's a great time to build by the way i'm building a house right now it's a great time to build because building is slowed down with the higher interest rates the market's slowed down and uh there's more builders

available more subs available the supply chain crap from the uh from the fauci quarantine has gone away and the uh you know so lumber prices are stabilized sub prices are stabilized most things have come back down to a normal, reasonable pricing structure on your supplies. You can get windows again, you know, that kind of stuff. So I'm in the middle of a build project right this second, and I started at perfect timing because everybody's ready to help. So here's a couple things you want to do when you're building. All right. Three pieces of paper run the project.

That's how you do project management, people. All right. You have a budget, and we don't buy stuff over budget. So we've got this much allocated for carpet. That's the carpet. Our hardwoods, that's what it is. You've got a plan, blueprint. You build a house on paper.

It's a lot cheaper to build it on paper and change it on paper before you start building. And you have a schedule. Are we on schedule? Are we on budget? And are we on plan? And this is the discussion my builder and I have a schedule. Are we on schedule? Are we on budget? And are we on plan? And this is the discussion my builder and I have every week. And we're all smiling because we're on budget, we're on schedule, and we're on plan.

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