The Ramsey Show - App - Real Estate Can Be a Blessing or a Curse (Hour 1)

Episode Date: April 16, 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. I'm Dave Ramsey, your host, Jade Walshaw, Ramsey personality, best-selling author of the book Money's Not a Math Problem. She's my co-host today as we answer your questions at 888-825-5225. Liddell is with us in Memphis. Hi, Liddell. How are you? How are you doing today, Mr. Ramsey? Better than I deserve. How can we help, sir?

I just had a quick question. Recently just got my car repossessed. Yes, sir, and I'm trying to see what's my next course of action. I've been watching you guys for a while. I'm just trying to see my next course of action. How can I come back from that pretty much? Wow. So you just woke up and it was gone out of the driveway? No, sir. I actually seen them when they actually pulled it. Okay. All right. That is an emotional experience, isn't it? Yes, sir. It feels like somebody's stealing something. Yes, sir. Yes, sir. Yeah.

I think that's why these repo guys get so much crap off of the customers, because they're, like, slipping up in your driveway, taking your stuff out of your driveway. It's dangerous. It's, wow. I'm sorry, man. So how much was the car payment? The car payment was about 584 bucks.

How much did you owe on the car? It was about three, maybe three grand on it. I definitely went over maybe 100 days on it. $3,000 is all you owed? Yes, sir. Oh, wow. And what was the car worth? From what my documents I'm looking at, I believe in the range of about $20,000 or something like that.

Oh, so you had bought this car, almost paid it off or put a bunch down. So what happened that you were not able to make the payment? Tell us what happened in your situation. um really just i you know want to do really negligence on me and just uh and i lost my job in november which is was my main means of um really my the main means of employment that i so that i could pay the bill but i lost that job in uh november of um 2023 and just, uh, from there, just, uh, covering my other stuff and, you know, and just really just neglecting the deal almost, I would say, uh, not, not, how long ago did this happen? Um, it was, they, they pulled it like, like a week, like a week or two ago. Okay. Have you talked to them about paying it off and picking it up yes i have

and they they had told me that i would have to pay the full amount the three thousand dollars the three thousand plus you know what's what's the car owed on the car which was i think the amount they told me was like 21 if i wanted to recover oh you're saying so i see so the missed payments oh three thousand dollars you were behind three thousand but you owe 21 in the car's worth 20 it was it was it was at like 18 before they added the fees yeah yeah but you owe as much as it's worth yes sir okay got it oh man are you back to work are you doing anything what are you driving in the last two weeks uh nothing right now uh because i just i didn't have anything i pretty much saved up to to for for another means are you single i'm trying to uh yes sir okay all right so you've been sitting at home for two weeks. How are you getting around?

Well, I've really just been applying for jobs, and if anything came up, I could like Uber or something like that at the moment. What are you doing for work, and what are you earning currently? I was working at GameStop. That was like my last recent job, but I just recently wasn't even there anymore. I only was working for like two days a week you know something like this by choice or because they didn't have the hours uh just didn't have the hours I would say I just had came in on the job okay what about now now I'm not working at all listen if I'm you um you know I I do think that everybody kind of has an ideal work situation in their mind of something that they're shooting for. And sometimes you can hold off thinking I'm just going to hold off until I get the job that I want. But in your case, you can't afford, you literally can't afford to do that for many reasons, your self confidence. And, you know, you need cash, like there's many reasons to take any job until you get the job. And one of those

things is self-confidence. The more you sit at home, the more you're going to feel some type of way about yourself and what you're able to accomplish. But if you go out and get any job and take the first job, number one, it puts a little money back in your pocket, gives you a little boost of feeling good about yourself. So like, do you have a friend that works construction, Liddell? No, sir. Not that I know do you have a friend that works construction, Liddell? No, sir, not that I know. I have a friend that works, like, the railroad companies and stuff like that, maybe. Yeah.

Call him and ask him if they'll put you on, and he can give you a ride to work for two weeks until you can get a check and get you a $1,000 car. Yes, sir. Okay. Your car that got repoed, we'll circle back to that, is the least of your problems right now. I'm more worried about you eating and paying rent and keeping the lights on and getting your life back on track than I am that stupid car.

It's kind of good that that car is gone because it was a real hanging over your head problem. So I'll go ahead and give you the full answer on the car so you know what you're looking at, but let's focus 99% of your efforts on finding a ride to work and getting some kind of work going 50 60 70 hours a week right now go crazy man and make you some quick easy money somewhere uh just just working like a maniac and bum rides off of friends for two weeks and then go get you um or catch an uber whatever you got to do but but go then go get you a thousand or fifteen hundred dollar car and pay cash for it okay is that a plan yes sir that's definitely a plan now the the other car we're

just going to let them have it okay and then here's what's going to happen they're going to sell it on a repo lot. You owe 21 with all the fees. They're going to sell it for 12, 14,000. Okay? That's going to be six months from now, maybe. And then they're going to come knocking on the door, not literally, but they're going to send you notes and start threatening you that you owe them the difference. It's called the deficit, 21 minus whatever they sell it for.

Let's call it 14, so you owe them 7. Okay. When they do that, they will settle that for about 20 cents on the dollar. So you probably could settle that old bad debt, the deficit on the repo, for somewhere around 1, 1500 bucks when it comes due okay i'm not going to be far off it might be a thousand it might be two thousand but it's somewhere in that range it's not you're not going to owe them ten thousand dollars they're going to come at you for seven to ten thousand dollars but you can settle that for pennies on the dollar you

understand what i'm saying yes i understand but in the meantime obviously and that's probably going to be a year before you hear from them on that okay so we're going to put that repo as nasty as it is in the back of your mind and try to get to work and get your current life straightened out as fast as you possibly can here i think that's what's going to matter is what jade said and because the way you feel about yourself and the sense of desperation the knot in your stomach and knot in your throat i've been there man it's no fun it's terrorizing terrifying and so um yeah i i you know i want you to get some cash coming in that place then go get you a little beat-up car that's reliable and get your life started back and then pile up some cash to get ready for when they come at you later on this.

This is The Ramsey Show. Jade Warshaw, Ramsey Personality, is my co-host today. Thank you for joining us, America. We're glad you are here. Open phones at 888-825-5225. Jay is with us in new york city hi jay how are you hi jay i mean hi dave hi jade how you doing good good man good to have you how can we help um well so i'll just give you a little background story i, more than four years removed from college, graduated with an engineering degree, working out here in New York as a GC. And, yeah, I moved out my parents' house,

mainly because of taking your advice, you know, wanted to set out in the world and, you know, make sure, you know, I'm not freeloading. All right. Um, so my question today is in doing that, I don't know if I prematurely bought a property. Um, I ended up buying a one bedroom a few a few years after running my first place. And now I've been getting hit with increases on maintenance and HOA payments and just been hit with an assessment. And so I'm just wondering how I can cash flow this assessment that's kind of been set before me a couple days ago. The amount's like $16,000. For what?

So I think in New York, we're doing a, most buildings do like a local law 11, like facade restoration, um, for like older buildings. Cause I bought a pre-war. Um, and so that's kind of what they, we owe like the contractor, I think, or the building does like 600,, and they're saying our maintenance payments aren't enough to compensate that. So before they hired the contractor, they did not get this approved by the HOA? Because, I mean, if you hire the contractor for money you don't have and you're running the HOA, then you've got to know that you're getting ready to slap the documents with an assessment. So you had no notice of this before now?

Yeah. So, I mean, when I bought the place, I, you know, in my due diligence, tried to ask about, you know, the finances of the building because it looked like this work was underway even when I bought it two years ago. And, you know, when I was in the process of doing that, I was notified that this was, like, a potential. And, you know, I raised the red flag. You know, I listened to your advice occasionally on, like, high HOAs, low HOAs.

I raised the red flag because it did seem pretty high. But, you know, kind of shopping around, it seemed. Yeah, what do you make? A little lower than $98,000. Okay. What's the unit worth today? Based off, like, the last probably, like, $150,000. Okay.

And what do you owe on it? I put, like, $25,000 down. I owe, like, $100,000. Okay. on it i put like 25 down i probably i owe like a hundred thousand okay so you you but you haven't had it uh you haven't actually looked at comparable sales lately where'd you get the 150 um i assumed uh based off what the actual value was oh my god it two years ago yeah that ain't gonna do with the value today i mean it could be worth it could be worth 250 and you wouldn't know it based on that no i wouldn't know yeah you need it you need to do some research and find out what they're actually could sell for today okay because it sounds like it might be a good idea to sell it because

everything you've described about this has not been fun yeah all i've heard every every mention of this was well i probably bought something i shouldn't have bought well it's a problem well i thought there's a thing on the front end and a bunch of hoa fee increases and then they hit me with the assessment and every single time your voice is just talking about your voice just sounds whipped i mean you sound like god man i'm, this thing's awful. It's consuming a lot of your calories, isn't it? It is. I've also, like, been renovating the place, kind of getting it up to 21st century.

Because, you know, I'm in the GC world, so I've been kind of using my resources there. How much does it take to finish it, to get it ready to put on the market and sell it? Well, I want to renovate the kitchen next, so. No, I don't want you to renovate the kitchen next. Is it torn up right now? No. Okay. So you can put it on the market today?

Yeah. What's wrong with selling it i there's a stipulation here like when i sell it there's like um a flip tax they like to call it where i think a certain percentage of the sale goes back to the building um what percentage i guess i would say around like 40 percent is in my head right now oh bullcrap that's crazy yeah that didn't happen no you're you're confused okay you need to dig in and find out what's really going on here you got all these demons running around your head and you none of them got a name so you need you need to dig in and find out what's really going on here. You've got all these demons running around in your head, and none of them got a name. So you need to get some clarity on some of the information. There's not a 40% kickback to the building when you sell a condo

or a co-op in New York City. I mean, it's just not. Now, they're probably going to get the 16K out of the closing from the assessment to be able to do the transfer, but you at least got rid of the closing from the assessment to be able to do the transfer but you at least got rid of the problem then so i i think you need to do some investigation uh it doesn't sound like you want to sell it because when i brought it up you're like so i don't know i can't tell with you but um he also didn't say how much money he's put in so far yeah it doesn't matter to me it

sounds like there's nothing here that's fine it's's a pre-war building. It's all screwed up. They're redoing the facade. He's trying to redo the kitchen. It's redo, redo, redo, redo, redo. And extra fees, extra fees, extra fees, extra fees, extra fees. This thing sounds like a money pit. So, I mean, you do what you want to do, man. But I got to tell you, all real estate is not a good deal.

Real estate as a category is a good idea. But there's some serious dogs in the in the pound here and this one sounds like it could be could be on the list so it's either that or you start scratching together money pay the 16 and then scratch together the money and do the kitchen but you don't do the kitchen do you take care of the 16 but after you do the kitchen in the 16 you're still going to face the 40 kickback if that's really there i don't think it is i think you're confused um and after you do that then there's going to be something else and it sounds like this hoa is poorly run so expect other increases and other situations to come at you here because you bought into a mess it sounds like so either live with the expectation

that this is a constant flow of money or get out. Do one of the two. Do one of the two. But you can't live there and then act like you're surprised anymore. There's nothing here that's surprising anymore. The pattern is established. Absolutely. I'd get out instantly.

And if he doesn't make any money off of it, then it's a lesson learned. Yep. Our question of the day comes from Caitlin in Arkansas. She says, I'm a divorced mom to two boys and my ex doesn't provide any help financially. I work from home and earn about $40,000 a year and have the proceeds from the sale of our home and a HYSA from which I draw about $15,000 a year. My only debt is $16,000 on my car and my payment is $260 a month. I could earn more if I got a job outside of the home, but with child care for kids, it would end up being a wash. I have $50,000 in savings and that earns me about $3,000 a year. The kids need clothes and shoes and all their activities add up so quickly. I don't want them to be able, I don't want them to not be able to pursue their interest between rent, a few streaming

services, food, car payments, and insurance. I just can't make it all work without drawing regularly from the house money, which I need to keep for security and comfort. How do single parents budget um that's a good question number one single moms are superheroes and single dads are superheroes i don't know how you guys do it um i'd be asking about child support number one yeah that's my first question why isn't this guy paying he's got kids have a judge help him with his attitude on that and number two looking for something that you can do part-time from home while you're home with the kids. In addition to this. And kids' activities are not necessary for life, even if they think they are. So that's way down on the list. It's interesting you put those before your food, car payment, and so forth. So I would pick up the every dollar budget and get started on a

detailed type budget. I think you're going to find some money. This is The Ramsey Show. Jade Walsh, our Ramsey personality, is my co-host today. Open phones at 888-825-5225. Steven is with us in Dallas. Hi, Steven. Welcome to The Ramsey Show. Hi. Thank you for taking my call. Sure, what's up? So my wife and I are getting ready to kind of go through a life transition. My wife is a teacher and she's wanting to stay home next year to be

with our almost one-year-old. Yay! And so we're just, yeah, we're both really excited. we're just we're both really excited we're just trying to figure out what we can do to kind of prepare ourselves for it. A little bit of background we took a little bit of like some financial course when we did marriage prep through our church but it didn't really

go in depth in finances and so after that I kind of took the reins of finances. And we're new listeners. So after a couple episodes, I realized, oh, it shouldn't be me doing all of this. And then we talked about it. We both want to get on the same page with our finances and get out of debt and kind of get ready. So we're just trying to figure out what we can do.

So do you have an every dollar budget? We do not. Okay, that's step one. And we'll make sure we get you hooked up with the information you need on that. But what I would start with is I'd open up my every dollar budget. And if I know it's going to just be your income, I'm going to start doing the budget with just your income and see where you land. And that's going to give you a picture of what life is going to be like with one income. That's step one. Okay. And so what do you earn right now?

Joint, we're at about $110,000. Myself, I'm at about $67,000. Okay. What does she do? You said she's a teacher, didn't you? Yes, she's a teacher. Yeah, okay she's a teacher yeah okay okay so she's the other 57 basically yeah okay and so um then my next question is what baby step are you guys on um so we just started looking at that and we haven't started the baby steps so we're still

in conversation about it okay um but But we have in debt right now about $31,000 in debt. We have about $41,000 in savings. So we're talking about just using what we have in savings to wipe out our debt and then we'll be debt free. Okay, that's great. I would go with that plan. I mean, that is our plan. So you guys need to talk about that and get on board with the same plan. But if you're asking for our advice, it is that. I'd say take that $41,000, clear out the debt that leaves you $10,000 left, and add whatever you need to that to call it six months of expenses. If you're going down to one income, I would definitely, you know, we say save up three to six months. In your case, there's one income. You've got a new baby. I'm saving up six

months of expenses between now and when you're making this transition. And that would be my plan. And then, of course, you have to look and see, okay, what does this mean looking at the budget? What does this mean for us? Because life is going to change. You're living on half of what you were living on, which is a big deal. Right. Are you homeowners? Um, so we are, we're actually in the process of selling our house. Um, when we found out we were pregnant, we kind of fell into the trap of, oh yeah, we need to go buy a house. So we definitely overbought. Um, and so we got a good deal on a rental that we're, um, that we're really happy with and, um, we're wanting to kind of settle in here. And then, um, once we get finances a little bit more situated and we're both on the same page and we're wanting to kind of settle in here. And then once we get finances a little

bit more situated and we're both on the same page, then we look at the housing market again. What are you going to make on the sale? Anything? We're not sure yet. We're hoping to break even and just kind of clear the note. But we had a meeting with our realtor yesterday, and, yeah, that's kind of the best hope we have right now. Stephen, you're making really good, big decisions to be able to hit the big goal of her being at home. Mm-hmm.

So, you know, you're looking for more information. You looked online. You talked to us. You're gathering up. You're considering talking about paying off the debt. You're learning for more information. You looked online. You talked to us. You're gathering up. You're considering talking about paying off the debt. You're learning to work together. You put the house on the market because we can't afford it on my salary, and you'll be at home because this doesn't work.

The math doesn't work. So you're doing all the right things. You're making all the right moves. There's a lot of wisdom in every move I see you making. So keep all of that up, and we'll have Christian pick up. We'll get you signed up for the EveryDollar Premium. Folks, that's our world-class budgeting app. It helps you manage money the Ramsey way.

It's iOS, Android, online. Smart Dollar is free if you want to start it out that way, and you can immediately see where you stand. Get organized, personalize your budget, stop overspending, save more money. If you wanted to connect to your bank and drop your debit card stuff directly into your budget, it's very smooth and very easy. There's a small charge for that, and that's the every dollar premium process. So if you're new, we're going to give you a long-term financial roadmap in every dollar,

track your net worth, track your debt-free date, track your retirement date, your baby step progress, and we're going to proactively coach you through this. So it's an app on iOS, an app on Android, or desktop at everydollar.com. Go get it for free. We're going to give it to you, Stephen, and help you guys hit that goal of your wife being at home with the babies, which is where you're wanting to be, and we want to help you get there. That's your goal. That's what this does. does so what amounts to is this okay budget is a

cuss word people use the budget like it's a cuss word like i don't want to be on a budget because budget as rachel says budget people aren't fun but budget is a punishment that's what i used to think but for an adult that puts what numbers they want to put on their budget, the budget's not telling them what to do. They're telling their budget what to do to accomplish goals that matter more than their short-term Friday night feelings. And so all a budget is, is you're doing your money on purpose. That's all it is. And so John Maxwell says a budget is people telling their money what to do instead of wondering where it went that's all it is and you know you get to decide if you want your budget to be punishment you can decide that if you want your budget to have a lot of wiggle room you can decide

that you write down what numbers you want to write down but what we found is is that people when they start writing it down they go that's kind of stupid I don't need to do that and you start making judgment calls as soon as you're writing it down you know i got it we got it we got to back off on that that's ridiculous when you actually look at the numbers the numbers will yell at you and tell you to straighten your act up you know and so i don't have to tell you all that stuff and the budget doesn't tell you anything it's like when you're four years old and you're fighting with your sister you're not the boss of me remember that you're not the boss of me well the budget is not the boss of you you're the boss of the budget

until you get it built and you're building it to be the boss of you but you're the boss of the boss so you're good everything's good so check it out every dollar it'll get you going all the correlation of all the data we have of 30 years of doing this 10 million people going through financial peace university the ones that do a zero-based budget every dollar has an assignment before the month begins and agree on it with your spouse are the ones that achieve their financial goals no one accidentally wins the super bowl winning is not an accident it's a series of intentional acts and that's what this is win-win hey if you want to check out the premium, you can put in everydollar.com slash jade, and I'll give you $15 off a premium.

I still need a slash. You've got a slash still. How did that happen? I don't know. We have a jade slash. We need a Dave slash. How much should my slash be worth? Oh, I'm going to go with.

Should it be more or less? think she's got her name after the slash your name is before the slash my name's before thank you that's right ramsey solutions okay funny all right so jade has a slash after my name there we go my ego is feels better already feeling i think I'm going to survive now. So, Jade, you've been doing these webinars, you and George and Rachel, a lot on building out your every dollar budget. What's the question you're getting in the comments? Because we take questions live during the webinars. What are y'all getting the most about putting together? Is it still people feel like the budget is bossing them around?

Not really. We kind of identified four main questions. And the first one is, how do I even get started? A lot of people are feeling the tension of, I don't feel like I make enough money to make a budget. And you kind of spoke to that, which is, yeah, let the numbers talk and tell you what you need to do. Because for some of us, if it feels that way. You might need an extra job. You need an extra job. Or some of us just need to pull back on the lifestyle that we've had. And that's what's eaten up all your money. And so kind of walking people through the zero based budget and how you're giving each dollar an assignment and be open to what the numbers tell you.

There we go. That's how that works. This is the Ramsey Show. Jade Warshaw, Ramsey personality, is my co-host today thanks for being with us america luke is in columbus ohio hi luke welcome to the show hello hi how are you better than i deserve how can we help so i can kind of use uh a unique situation here. 22 years old, household income of $90,000. We inherited six acres of land and decided to build a house on it. We don't have any debt.

We have not taken any loans on the house. I built it so far where you've got the roof, walls, and siding, and almost done with utilities. But our goal is that I pay for all the bills, and then my wife, she pays for all the materials for the house. My question is, should I take what's excess of my income after the bills and throw it towards the house or put it towards retirement? Okay, you're trying to build a house out of your pocket, and so far you have,

but you and your wife have separate finances. Well, we work together for the finances, but... Not really, not really. You've delegated part of it to her and part of it to you. You don't have one pile. So you need one pile of money. Her money, your money is our money. One big pile.

Out of that pile, what is our first goal? I would assume it's to finish the house, isn't it? Yes, sir. So what does it take to finish the house, money-wise? How much money? We're looking at probably about $10,000 left. We've got drywall, insulation, and paint. Okay.

If you pile all your money you and your wife our money in one pile how long does it take you to come up with 10 grand uh well probably a month or two yeah okay so let's finish the house and then you may need to make sure you have an emergency fund of three to six months of expenses and then take 15% of your household income, our income, and start that towards retirement. That's baby step four. But you're going to be living in a paid-for house. That's nice. That's awesome.

You got this acreage, and you built a house. You got a lot of sweat in it, and you're going to have a bunch of equity, right? Oh, yeah, for sure. What's this finished product going to be worth acreage and house total we're hoping for 250 good very cool and you said you're 26 22 22 wow okay wow and your household income if we put both of your money in one pile is how much a year 90 000 how much 90 000 90 000 that's the two of you combined. Okay, good.

I make $62,000, she makes $28,000. Okay, cool. Perfect, yeah. So let's take 15% of $90,000 after we get the emergency fund in place, and you're sitting on a $250,000 house, you're going to be millionaires before you're 30. Woo! That's exciting. Isn't that fun? Mm-hmm.

I hope they take your advice and put their money in one pile. Well, that's the thing. Yeah, so there's yeah so um there's yeah there's just so much data that says when you do that that your higher probability of winning at marriage winning at relationship winning at everything um and let's circle back and say this nothing to do with luke's call but just this because we get so much bull crap on social media about telling people put their money together um you should be independent now you shouldn't be independent if you're married that's a dumb butt idea this is how your marriage doesn't work because you're so

strung out on you that you're worthless as a spouse so that that's the problem. So, no, you don't need to be independent. You need to be one. The preacher said, and now you are one. One, uno, unity, all in one. And so if we know, and we do know, that the data tells us in America today, the number one cause of divorce is money fights and money problems. The number one solution to that is learning to dream together and put our money together and handle our problems and our challenges and our opportunities and our dreams together.

That is the solution where you don't have money problems cause divorce. If we have the solution to the number one cause of divorce, why are you arguing with us? That's just dumb. Because people out there are dumb, and we will always have a show for that reason. So there it is. Not all people out there are dumb, but enough of them are dumb, but we will always have this show. Are they dumb, Dave, or do they do dumb things? They're ignorant.

Ignorant is different than dumb. That's good. Ignorant is I don't know how. There's things I i'm ignorant of by the way yeah i don't know how i used to know when i was a young redneck i used to know how to work on a car but now a car looks like a spaceship when i open the hood and so i can't even i don't know if i could jump the thing and get a jumper cable on it nowadays without blowing it up so you know um so but so i i don't know how to work on that car i it doesn't mean i'm dumb it means i'm ignorant i don't know how to do that but then don't argue with experts when you're ignorant because it makes you look dumb

i'll take that dude i'll take that golly wow and luke was doing none of that luke's a sharp young guy at 22 man he's got it going on doesn't he yeah oh most definitely i don't even i was nowhere near that so yeah i don't even want to talk about it jason was in raleigh north carolina hi jason how are you hey guys how are y'all can Can you hear me okay? Yes. What's up? Good. Hey, I just got a quick question for you. I'll give you a quick rundown on the situation. I'm trying to decide if I should sell my house. I live about an hour outside of the Carolina metros right now. I'm planning to make a move this summer. I'm self-employed. I sell real estate. So in my new market, I'm going to have to kind of start from the ground up. I'm self-employed. I sell real estate. And so in my new market, I'm going to have to

kind of start from the ground up. I'm near the end of baby step two. If this move wasn't happening, I'd be done probably by June or July, maybe August. The flip side, so the question is basically- Where are you going to live when you move? I'm going to rent. Okay. And so your question is whether to keep your house or not? Yeah. Oh, sell it. It's a unique position. No, just sell it.

Yeah, I bought... You don't need to be a renter and be a landlord. That's bass-ackwards. That was risky, Dave. That was very risky. Well, that's what I needed to know. Yeah, I mean, really, think about it. That's backwards.

You don't want to do that. So, no, you need to get – you're in the real estate business. You're going to get plenty of opportunities to own a property and live in a house that you pay cash for or buy it and then get it paid off as quick as you can. Hanging onto this boat anchor that represents your former life out in the burbs when you're moving into the metro and having to deal with that while you're trying to learn to sell real estate and trying to get your business

moving nah okay yeah that's where my mind was and i thought that was right i just wanted to make sure yeah you're you're right on track man you're right on track so there you go here's the thing it's interesting um real estate is such a an emotional topic because it has these two strange elements to it strange element number one is it is an excellent way to build wealth when you do it right as a part of your long-term plan right that then gets confused with it's always smart no matter what that's a good point dave and it's not sometimes real estate doing a real estate deal in the wrong situation in your life could be not you know in jason's it's just it's just a bad idea but in other people's it's even

way over into the stupid zone yeah for sure and so real estate is it's weird it is because it's a blessing when you do it right that gives everybody permission to do it even wrong and it becomes a curse yeah and i think also the other thing that i think we're fighting now is so many people had properties that they locked in at a better interest rate and so then when life moves them they feel like yeah it's a good deal maybe i shouldn't get rid of it even though i'm moving i should keep it it's like this weird attachment to it it's like because real estate is good i can't everything i do with it is going to be smart right it just falls in line and it's like no it's not going to be smart you know it's not smart the only way that you know no there's a good

time to cut real estate loose there's a good time for it to not be there and buying buying real estate you can't afford buying estate, you can't afford. Buying a house, you can't afford. We had that earlier in the hour. That's right. So we've got to sell the house as mom wants to come home and not be a teacher and be a full-time mom. That's cool.

But we've got to sell the house. We've bought a house we can't afford. So it's not a blessing anymore. That's right. It's a curse. It's a problem. Yes. So doing it wrong or keeping it wrong or because real estate's good it's not always good yeah because and it's

not that real estate is actually real estate is always good it's the life situation you're in doesn't match up with owning real estate right then yeah and so it's not always good to keep your old house and rent it matter of fact it seldom is yeah very seldom this is the Ramsey Show. We'll see you next time.