The Ramsey Show - App - Rental Property Income Is Anything but Passive (Hour 2)

Episode Date: September 13, 2023

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. Rachel Cruz, Ramsey personality, number one best-selling author, co-host of the Smart Money Happy Hour, and my daughter is my co-host today. Open phones at 888-825-5225. Dylan is with us in Miami. Hi, Dylan. Welcome to the Ramsey Show. Hey, guys. Thanks for having me. I am 22 years old and I just graduated undergrad and got married the next day. My wife and I don't have any debt, but two weeks after our wedding, my mother passed

away. Oh no. Gosh, I'm sorry, Dylan. Was that unexpected? So yes and no. Yes, and the fact that she declined so quickly. She died at 61. So she left us her IRA, which has about $300,000 in it. And then the main reason I'm calling is because the house that she left has $60,000 left on it. And I'm just wondering, should I, what I'm planning to do is rent it out and have my renters pay the mortgage. But I also have the life insurance, which is, I got about 90,000 left on that just kind of sitting in my bank account. Should I just go ahead and pay the mortgage off completely and then have that passive income or what would you guys do? Wow. I'm so sorry. That's completely tough two weeks after you're married to make all these decisions. I wish we could slow down. Okay. Here's the thoughts that pop into my head. number one uh renting a property as a landlord is not passive income that's humorous

that's crap from tick tock okay uh because there's nothing passive about dealing with renters i've got a bunch of them uh i have been i am planning to hire a property manager. It doesn't matter. It's not passive. This is very active. You have a hassle factor in your life called renter. Okay? It's just part of it. And they'll be renting your mom's home, too. And they're going to be in the home you probably grew up in, right? Right.

Yeah. Yeah, that's weird emotionally. It's hard. Okay? So that's the number one thing. So can this be done? Yes, it can be done. You're 22. You're brand new married. In my opinion, the last thing you need is the hassle of a rental property. But if you're going to keep this and give that a try, you should pay it off. Okay? Okay.

Because that will lower the hassle. You won't have a payment anyway. And so take the insurance money out of the checking account and pay the mortgage off. I normally wouldn't like to make that decision on that property that quickly, but I will tell you, like, the home Rachel grew up in is now in my rental portfolio. We kept it. It is weird.

I haven't lived in that house in 20 years. It is weird to go over to that house with other people's crap in it still emotionally. And I landlord a bunch of property, and I grew up in the real estate business. So I've got a huge advantage over you. And I'm old. I've of property and I grew up in the real estate business. So I've got a huge advantage over you and I'm old. I've done this a lot. Okay, you're 22. This is your first property. I'm warning you that the first time that they screw around with the house you grew up in,

they being the tenant, it's going to be emotional for you. Just be ready for that. Okay, no one is never going to be the same. It's never going to be emotional for you just be ready for that okay no one it's never going to be the same it's never going to smell the same in there okay uh and so all of that now so if you want to get a professional property manager that's great are you local dylan where the house is are you guys close i'm not i'm about i'm in Miami. The house is in central Florida. That's not too bad. I don't like long-distance landlording either.

So I'm going to tell you that with all the emotions, if we had a little bit of time to digest all of this, I might just sell it. But that's even a harsher thing than letting a renter be in it. So it's not an automatic thing that at 22 years old, two weeks after you're married, you ought to be a landlord. That's not an automatic thing. Okay? So it's an automatic thing you probably shouldn't do, actually, just in terms of quality of life for you. But it's thrown in your lap, and here we are.

So if you want to try it, just be forewarned that this is not it's not passive you're going to have some emotions around other people and smells being in your house no pets i love pets one of my favorite things on the planet is my little dog but no pets not in my rental properties okay we call them ten thousand dollar cats they devalue your house ten thousand dollars when they put the cat in there okay and so sorry that's the way that works so this is an experienced landlord talking to you dylan for you and your wife where are you guys at financially i know you said you have no debt um you obviously have this three hundred thousand dollar ira from your mom are you do you and your wife do y'all rent do you

own a home where are you guys at at? Yeah, we're renting. We're just kind of getting started financially. Our combined income is probably around $70,000 or $80,000. Okay. I would sell this house and buy you a house. I know. How much is the house worth? Do you know?

Right now, it's probably worth $250,000, maybe $300,000 tops. I would sell this house and buy you a house and when i say that out loud two weeks after you got married your mom dies that's very harsh for me to say that yeah it's hard for you to even hear that and think about that but five years from today you having this as a rental property versus you and your new wife having a new home to live in that that's a much better wiser decision and um i you know i know i'm asking a lot for you to process of a lot of emotions and you don't have to make this decision today dylan and you don't have to do it because i said do it but you know give yourself some time and kind of just you know maybe you try the renting thing for a year and i would still pay

it off and maybe you look up in a year and you and your wife like man we want to get settled somewhere you have a great asset that your mom left you which is such a gift and you can use that gift to continue her legacy i mean that what a beautiful thing that she you know it has for you guys so um maybe it's not right now but maybe you look up in six months and think, okay, we can make this decision. But for you and your family now going forward, you and your wife, you can really use this to jumpstart you guys. If this house had no emotion tied to it, if she had it as a rental property, you would have sold it already. You wouldn't have bought me and my bride a new house. You wouldn't be going, I'm going to rent and keep this as a rental property. And let me say this.

This may not be Dylan's case real quick, but the idea of having real estate it's a big deal it's a big deal people want a rental property i mean the idea of you don't want to have a rental property two hours away and be renting yourself yeah no i agree but i'm just saying i know dylan i mean i if i can get into a 22 year old's head what the the kind of content that's out there and what people are saying about about for sure personal finance will tell you you got to have a rental house yeah but it's a very appealing thing right to have this quote-unquote active income not passive but yeah so so there's a i i get where you're at dylan but i think what you have to realize is when you set

you and your wife up really well then in in 10 years, you could get into this. If you want the rentals you want. Yeah. Yeah. And you'll be a millionaire now. And you'll have a paid for home for you and your new bride. The impact on your marriage is positive. The impact on your health is positive. The impact on your finances is positive. I just, man, I'm sorry. Sorry. You're having to make these decisions but that's what i would do if i woke up in your shoes sir this is the ramsey show rachel cruz ramsey personality is my co-host today thank you for joining us america open phones at 888-825-5225 our Our question of the day comes from Neighborly, your hub for home services.

Is your to-do list too long, whether it's a simple repair or a whole list of home improvements? Mr. Handyman's experienced professionals are here to help you make your home work for you. Visit Neighborly.com slash Ramsey, and you can find expert home services. This is a really good company, you guys. It includes locally operated Mr. Handyman near you. Today's question comes from Katie in Utah. For several months now, I keep hearing ads for title theft insurance. The ads and warnings keep getting louder. I truly feel that someone is not going to steal the title to your home, but there's lots of media people promoting it our title is in a trust and there is no mortgage on the house or property

can you shed some light on the subject sure sure title insurance completely bogus do not buy it absolute crap okay how do you really feel i just wouldn't want to beat around the bush or anything i want to make sure i'm clear so uh so basically title fraud insurance would say someone signed your name to sell your house and recorded that at the courthouse okay that transaction would be undone in about 30 seconds with a lawyer going before a judge. And said person that signed that would be in jail for criminal fraud. Grand theft auto. Hello.

It's a, you know, they just stole a $200,000 asset or attempted to. How could they even do that? With a fraudulent transaction. Well, I mean. They go and pull the title and just claim that they. If you prepare a deed. Yeah. and you can type one up right and you sign the owner's name to the deed selling it okay and you have that notarized and you took that to the courthouse and recorded it that's how i say i always say a loan property happens if i'm selling a property i sign the deed and they

record it at the courthouse and the buyer's name transfers it into the buyer's name that could be done fraudulently the number of times that happens is very close to zero it never happens because it's so absurd okay because the person that did it would instantaneously be caught hello and go to jail i mean there's nowhere they can hide it's not like internet fraud where they can hide in russia or something right they have to actually you know they whoever wherever that money went you know i mean and the buyer would of the property would have been defrauded as well and they're going to get nothing and you couldn't get title insurance on it you couldn't get you know there's no way you could get anything so title theft now i do have you know i do recommend identity theft protection in general

because there's a lot of kinds of identity theft out there and that's why we've had zander insurance doing that for years we've recommended id theft from zander i've got it on me i've got it on all the kids, grandkids. Everybody's got it. All the employees here have it furnished as a benefit, Xander's identity theft. But it's not title theft. And so washed-up actors will promote anything on a commercial if you pay them. Okay? So media figures, quote, unquote, doesn't matter. A lot of financial products, a lot of financial products a lot of gold a lot of yeah

whole life i mean there's a lot of reverse mortgages reverse mortgages i mean you got the fawns over there doing that you know and henry winkler and you got uh magnum pi doing that i mean you know but i mean it's not like they know anything about reverse mortgages they're actors for god's sakes or they used to be actors before they retired. Hello. So, I mean, it's like, golly. So, no, I mean, these are not legitimate. That does not legitimize the product. No. Crap.

Do not buy title theft insurance. Now, make a distinction. There is a title policy that you buy when you buy a home where you get title insurance but it's not theft it's title insurance that the insurance that the title is clean always buy that that's been a standard part of a real estate transaction for 50 years okay and never buy a piece of property without title insurance ensuring that the title is clean it's not that expensive and i have had in all the i mean i've owned what two almost three thousand pieces of real estate in my life

and i've had a handful of instances where the title wasn't clean and the title insurance company that guaranteed the title to be clean had to come back in and pay the other one oh wow yeah i bought a bottle little house i was flipping in the million years ago, and these two sisters sold it to me out of an estate, and they forgot they had a brother. So not really. They took the money, and they didn't. So we didn't have the brother's signature,

and they were the three heirs to the estate. And the title company that did the title search missed that and did not search you know and so the two sisters sign up and then they had the brother shows up wanting his one-third of my house sure and uh so the title insurance company you know they had to pay old brother brother off speaking of like trends that we're seeing so this title theft insurance she's seeing on social media you're seeing all these like financial products. Here's one on social media. And I probably, I'm going to just ask you on the air because I think I can't wrap my head around. I'm trying.

I went down the rabbit hole one time and I'm like, I can't quite figure it out. Here's a trend that's out there and I'm seeing it maybe because the algorithm just keeps feeding to me. A lot of financial people talking about using life insurance while you're alive buy articles talk about that explain that because i get people sending me these these reels and they're like we all please talk about this because it's a trend right now a lot of people that are like this is what rich people do this is what they're claiming in the videos well there's two different things the rich people thing is the well they always just throw that

that's the infinite banking yeah well they just roll they just put those always in the videos okay but that's that's the infinite banking thing and that's that's just crap that's just that's bad whole life but the viatical is uh a person okay i've got a million dollar life insurance policy on me and i've been diagnosed with terminal cancer no this isn't what they're talking about there's no sickness involved. Oh, this is just the infinite banking. Okay, so keep going. Yeah, do that one.

Okay, infinite banking. There's no sickness. Infinite banking is another word for whole life, life insurance. That's all it is. Oh, it's whole life? Yeah, that's all it is. It's just whole life. Oh.

You put a bunch of money in it, and then you borrow your own money out infinitely, which you've always been able to borrow your own money that's not new it's your money you don't have to borrow it but you're doing it through a life insurance policy yeah you put a chunk of money way too much into you overfund okay so what so you put fifty thousand dollars like up front in a whole life policy you prepay it yeah and so it creates instantaneous cash value so it's in there yes and so i got a cash value now if i want my cash value out of my whole life, there's only two ways to get it.

My money that's in there. Right. Right. The only two ways to get it. Cancel the policy. Take my money back out. Sure. They're going to kill you with fees.

Yeah. Or I can borrow my own money and pay them interest to borrow my own money. And you can do that infinitely. So it's called infinite banking. It's infinitely stupid. Okay. Well, I'm glad I asked. We had a guy call in the other day.

We had a guy call in to defend it the other day, and he and I got to argue on the air. It was kind of fun. Yeah. Well, that's a big thing, because they're like, you can go and live this great life. That's a TikTok thing. And you don't have to like.

That's absolute bull crap. Yeah. Okay. The only way you have a million dollars in a life insurance policy is if you put a million and a half in there that's the only way it's in there i mean and it makes one and a half to two percent and when you die you lose your money it's whole life life insurance it's the worst financial product in the middle class it's the payday lender of the middle class it sucks beyond belief because here's classic here's like here's like kindergarten rachel

finance so instead take your million dollars and put it in an account and live off the interest where you're not you can do it infinitely i know but i'm just telling you you watch these videos and i'm like what is this guy called down there he's like banks videos, and I'm like, what is going on? Yeah, this guy called in on the air. He's like, banks do this. And I'm like, banks do not do this. They do not do.

Banks do not buy whole life life insurance. That's a dumb butt statement that you could only make up on Tic Tac. I mean, that's absolutely ludicrous. Banks buy bonds. That's where they place their liquidity, is in bonds. And that's why your cost of money goes with the bond market oh my god it's these people just make crap up but i you know it's like nothing down real estate you know i've seen it about three times in 30 years it comes

around and everybody wants to do it and whole life life insurance comes back around because somebody that's young and dumb decided it was cool and decides to promote it and they can make a lot of money selling it sell their product and make a lot of money selling it yeah the commissions on it are ungodly rachel cruz ramsey personalities my co-host today. Emma is in Pittsburgh. Hi, Emma. Welcome to the Ramsey Show. Hi, Dave. Thanks for taking my call. Sure. What's up? Okay, so my husband and I used to own a bunch of rental properties, and we ended up going bankrupt because we listened. We had your book and somebody else's book, and the other person's book said it was okay

to have debt whenever you're renting. We ended up being over $100,000 worth of credit card debt, you know, just because things were breaking in all of the houses. Yeah. And you had no margin because you put nothing down. Right. And we have a family of six. So there was a lot of mouths to feed and i had some health issues and i was homeschooling those four kids so there was only one income and y'all lost all that we we did lose all of it yes um when was that emma that was 2017. Yeah, me too. It was 1988. Yeah. Okay. Well, we got out of that, got to the point where we could buy another house. And now, as I speak, we've got $16,500 worth of credit card debt, which I'm trying to pay that down. I've got a spreadsheet where we're down $3,538 in the last six months. But still the total debt is with a $5,000 balance on a car

is $223,480. That counts your house? Yes. How much of that's your house? I mean, that's all your house except for you got the little credit card debt. You got $20,000 plus your house, right? Yeah, that's about it. And what's your household income? It's right now sitting at $95,000. So what's your question? So my question is, I'm finding my emotional relationship with money is bad you know the love of money is the root of all kinds of evil i hate money i get it you are avoiding evil it's a spiritual stance on emma's part honestly my I have I have some family issues where

my one family member has a lot of money and he is not a really nice person he uses it to manipulate people and yeah so I don't want to be like him well money didn't money didn't make him that way money exposed the fact that he is that way all money does is all money does is magnify okay if you're a jerk and you get money you're big jerk if you're crazy and you get money big lots of crazy okay if you're if you're kind of compassionate and generous and you get money you're what we call a philanthropist like you change whole worlds because you give so much so you know it's not money it's just you just got a jerk in the family well welcome to being in a family okay so you but you've had so you have a negative relationship with money is what you're trying to say i'm not making fun caused a lot of pain. I'm not making fun of that. I'm just laughing with you because you're funny.

I like you. Okay. And so it's caused a lot of pain, Emma, is what you're saying. Money is a place. And you don't feel like you have a good handle on it because you guys have this credit card debt. And you just think, oh, my gosh, I just feel like I have no control over this part of my life. It doesn't feel safe. I've only proved that by going bankrupt once.

Yeah. Yeah. Well, I did, too. my life it doesn't feel yes it doesn't prove that by going bankrupt once yeah yeah well i did too and so yeah you then you got to decide am i going to happen to this money subject or is it going to happen to me and what's what's going on is it's been happening to you yeah and i think understanding emma it's not just the money part i mean i think the money exposes some things but i think i wrote a book called know yourself know your money and i'll give you a copy of that. Yeah, that book is perfect for this. But it's to understand why do I handle money the way I do? And I think for you, Emma, I think it's some good kind of questions to ask yourself, everything from how you were raised, what kind of, you know, tension was money in the household? What kind of value did your parents

place on it? And kind of walking through that, understanding your tendencies. Are you more of a spender or a saver? Are you more scarcity mindset or abundance? What's your biggest fear? A lot of people are driven by fear. They don't want to end up how they grew up. A lot of people have that fear. So they'll swing the pendulum so far where they save so much because they don't want to be poor like they were growing up and they saw the hardship or whatever it is, right? So everyone has their own stuff. So that plus Emma being married, you have a spouse that has all different factors of everything we just listed. And so working together and all of that can create, yeah, just a lot of tension, a lot of stuff.

That combined with the failure on the other part yeah and with a house full of kids a homeschool all of those things combine to uh take away your confidence and your power yeah your emotional power over money does that sound does that sound right yeah that sounds yeah perfectly are you guys emma um you and husband, do you guys do a monthly budget? We look at money. We look at the debt together. Yeah. And we're trying to get that number down. I'm going to pile you on with some stuff.

I'm going to give you every dollar a premium, okay, as well in this call. Because I think one of the things that can feel so out of control, and people do this a lot, Emma, so I'm not picking on you. But they're like, oh, yeah, I just have kind of all the expenses in my head. And it's just it's like it's this imaginary thing that can suddenly become very isolating. It can be very scary when you don't see the facts. And Dr. John Deloney talks about this all the time, that facts are your friends. And I think a budget, honestly, working in that and seeing, OK, here's our income that's coming in because you guys make a great income. I'm 95 grand. You're doing great great but to be able to say here's the plan for that and then for you over the course of time and i bet you if you guys start that this month i bet by january february there's going to be a

level of confidence over this emma because because you're going to learn how to live within boundaries and make different decisions and you're going to be at the grocery store and be like, OK, we got 200 bucks this week. And I can spend that and I don't have to worry. Yeah. And what do I have to what do I have to spend to stay within that? And it's this practice of discipline and being in control of what the that's what the budget does. And I think that really will give you guys a sense of a sense of confidence, too.

I think the thirty five hundred dollars in debt that you paid off is absolutely amazing because you've been beating it with a hammer not slicing it with a sharp knife and rachel just gave you a sharp knife it's going to go a lot easier you're just beat the heck out of it yeah you just beat the snot out of it this 3500 was heavy lifting you gutted that out girl because you didn't have it you didn't have a sharp knife you're just wailing on it with a club you guys should also know that most of my children are six foot tall and our food budget is sixteen hundred dollars a month so that's okay that doesn't mean you can't that doesn't mean you can't get control of money okay that i i know

there's places i know there's other places i can cut spending yeah so i think that's mean you can't get control of money. Okay. I know there's other places I can cut spending. Yeah, so I think that's what it is. You don't even know where your spending is because you don't have it all written out. Right. Every stinking detail. You will be amazed. You and your husband sit down and look at where every single dollar is going before the month begins and give every dollar an assignment.

That's why we call the app EveryDollar because you're giving every dollar a mission, okay? And when you do that, you're both going going to go where the crap have we been doing and emma and try this you know sixteen hundred dollars that's before a budget try fourteen hundred for the month right like you start practicing this like ebb and flow and see okay where can we get an extra hundred few hundred dollars here or there i mean like it's amazing the the power that that really does give you and to be able to cut stuff but honestly i think for you guys getting some quick wins because i think it's hold i think you said emma confident that it took six months to pay off 3 500 that so i want you to do that even faster oh you're gonna do it a lot faster because you're gonna have a

sharp knife instead of a club you're gonna have that so i think that's gonna start to give you guys confidence um but i think it's just rewiring these habits and it takes time. But you're not a failure, Emma. And that's the other thing is that this people equate their net worth or their money mistakes to who they are. And that's when they talk about shame, that shame is your identity. So take those apart that you are not the past mistakes that you've made. You are not your net worth.

That is not who you are, Emma. And so there's a level there that I want you to release that because that stuff will follow you and those lies will just play a tape in your head that you don't need. Yeah, you're doing better than you think you are, especially considering how blunt the instrument is you're using.

Yeah, but stand on Emma because Austin, I want to give her Know Yourself, Know Your Money and Every Dollar Premium. You're going to love that book, Emma, because it's exactly talking about you. It's the number one bestseller and you don't want to miss it. It's Know Yourself, Know Your Money by Rachel Cruz. And it's all that, not only family history, but your tendency, scarcity, abundance, all that stuff. It's brilliantly done.

You will love it and we'll put you in the every dollar budgeting app and that will change everything you and your husband do that together and turn off the stupid tv and tell the six footers to go in the other room we're working on the budget this is the ramsey show rachel cruz ramsey personalities my co-host today ray is in el paso texas hi ray how are you hi dave rachel thanks for taking my call. Sure. What's up? Well, I was calling because I recently moved to El Paso from Colorado. We sold a house in Colorado and made a good profit off of it. We are renting in El Paso because we're not going to be there that long. And so I'm trying to figure out what to do with this profit that I've made for the next at least five years,

probably hopefully not much longer after that until we're ready to use it for the next piece of property or home. You're going to be there five years? We are probably only going to be el paso about three i'm active duty oh we're there but okay i'm near retirement so we won't stay okay 93 percent of the five-year periods in the stock market's history have made money so if you put it in a good growth stock mutual fund or just an s&p 500 which is a good growth stock mutual fund or just an S&P 500, which is a good growth stock mutual fund, and leave it alone five years, 93 times out of 100, you'll make some money. And this year, you would have made 17%, 18% on your money. Right. Okay.

Now, hear this. Sixty-six percent of the three-year periods made money. One out of three times, if you leave it alone only three years, would you make money? One out of three times you'd lose money. Two out of three times you'd make money. Okay? Okay. Now, here's the trade-off.

How much money are we talking about? $170,000. Okay. we're talking about uh 170 000 okay and so if you lost 10 that'd be highly unusual in either one of those scenarios losing money might be losing three percent okay but if you lost 10 you lost 17 000 it does not wreck your world right okay so i'm putting it in a growth stock mutual fund something like an s&p you can sit down with a SmartVestor Pro. If you're going to leave it alone at least three years, there is a small probability you would actually be backwards. But you're not going to be backwards so much that you lose half of it or something. That would be statistically almost impossible based on history.

Okay. I do have some good investments already, like I'm broken for a vote. I saw the same things you just said when I looked at it, but I'm just a little bit gun-shy because it's more money than I've ever had to deal with before. Well, I mean, what you need to be prepared of is, say, could I deal with it? What's an absolute, statistically, you know, 1% of the time, if you had a horrible, you were the absolute worst three-year period that you could have possibly picked and you lost 20 you lost 30 grand you're still okay

you're okay right but you're not going to lose a hundred thousand dollars on this okay i'm not i mean i really i don't think you are i mean we got other problems in the economy if you lose that much yeah this whole place has got issues then so um so i oftentimes in my situation i can absorb that risk and so i'll take a chunk even if i'm not even leaving alone three years and i'll still throw it to an s&p so i throw spare change into an s&p until i get enough in there to buy a piece of real estate's what i do but it might only sit in there a year and a half but this year year, I would have made 17% on it, versus if I put it in a high-yield savings account, I would have made 4%.

Yeah, they're doing great, though. 4%. But I mean, really, it's humorous that they call it high-yield. It's basically a CD. It's a certificate of depreciation. Yeah. Right. Thanks for your service.

Yes. We appreciate that. And that's exciting about getting some money and seeing where it goes. Cool beans. Very good stuff. Jay is in Atlanta. Hi, Jay. How are you? Hey, Dave. I'm doing well. How are you doing today? Better than I deserve. What's up? Yep. The reason I called in today,

I recently accepted a sales position with a new company, and the details that they gave me during the interview process for the number of appointments that kept and then close rate and everything like that does not reflect the reality, and the numbers are greatly skewed. The close rate, for instance, was 33% during the interview. The reality is about 12%. And then appointments kept is they said majority were kept, and then the reality is less than 35%. So I've sold financial products in the past. When have you ever seen a 33% close rate? I would have smelled a rat as soon as I saw that. This is a different type.

It's outside sales. I know. That's high. Yes, it is very high, and that does actually reflect some of the actual sales. Okay, are they incompetent or are they crooked? To be honest, I'm brand new there, and I don't know. The numbers for these types of leads are at 12%.

I know, but I'm saying with you or with other people working there? No, this is with other people working there. This is across the board with this particular type of lead. So you've been able to check this out, and it's system-wide, it's 12%? Yes. Okay. So they're either incompetent or they lied? Yes.

Both are scary to work for. Yeah, but I actually turned down another job to take this one. I had multiple offers on the table, and this one seemed like the better offer. Yeah, but I mean, that's water under the bridge now. Do you want to work there anymore? That's the question. Honestly, probably not. That's what it sounds like to me.

I don't think I do. I mean, I'm a lot more scared of incompetent than I am crooks, actually, but I don't want to work for either one. There's very few crooks, but there's a lot of enthusiastic ignoramuses out there. Yes, sir. Okay, so what do you... How would you approach... Yeah, what's...

I don't think you can go in and confront them and change them. How would you approach another company that you had a job offer from? I would just tell them the truth. Just tell them the truth. Okay. These guys, they gave me a close rate, and I got over there, and it was one-third of it. Yeah.

So, you know, and it was almost a tie with you guys anyway. I would have loved to have gone to the prom with you, but, you know, the other girl lied to me so i don't know i mean if you came to us and you told us that we would feel like we were your second choice but we were but it's okay god worked it out they really wanted you yeah i mean it's obvious you went somewhere else you're good at what you do if you have multiple offers so even if one of those companies doesn't i'm sure there's another one out there yeah you know but i have another outstanding offer as well yeah so i think you're fine i just i don't think

you're going to feel good about this company i wouldn't okay i mean i've just talked to you for three minutes i don't feel good about them but maybe there's more information that I don't have, but that you have. But if I literally, I mean, I had a guy that worked here that decided that we were lacking in integrity on an issue and he quit. Thank you. That's what you should do. You shouldn't work for people that you don't think has integrity. I actually thought we had integrity. He didn't. He quit.

That's okay. I get that. I don't want to work for somebody I don't think has integrity i actually thought we had integrity he didn't he quit that's okay i get that i don't want to work for somebody i don't think has integrity and so you know i you know i don't even want people i don't want people working here that think that we're incompetent or that think well you don't have integrity yeah you should go somewhere else i mean you should go somewhere because it's hard to be enthusiastic about these people i because and 2j if you stay in that'm like, I would be probably looking over my shoulder. Anything that they say, I'm going to have to cut what they say in the thirds because I'm like, you obviously don't know either what you're talking about or you're lying to me. So, yeah, that's not a, yeah, 40 hours.

You're going to be working there full time. I'm like, that's too many hours in your week to be thinking about that. Well, it's hard to sell something to the people you don't believe in. I mean, please come do business with this company that doesn't tell the truth you know yeah yeah no i don't that's such a really sorry jay though that's that's horrible to go through that i'm sorry makes you mad but um and you kind of feel mad at yourself a little bit because you missed it you know i would and i'm not saying i'm not saying he should yeah but i mean that's's a normal human emotion to kind of like, God, how dumb am I?

I just believe everyone. I know. I would be like, okay. I mean, but I had a guy working here that was lying to me, and I believed him. And I'm like, how dumb am I? Because I believe the guy. Right. But he's a pathological liar, but I believed him.

I'm dumb. I feel you get that's a normal thing. Yeah. Yeah. Oh, well, there you go. Sorry. Yeah. I'm dumb. You know, and I feel you get that's a normal thing. Yeah. Yeah. Oh, well, there you go. Sorry, Jay. I'm sorry. Go get you another sales job.

Yeah. You're obviously good at what you do. You got lots of offers. You're going to do great. Life's too short, man. That puts us out of the Ramsey Show in the books. hey it's rachel cruz if you like what you heard in this episode and want to know more about getting started on the ramsey baby steps go to ramamsaysolutions.com and click the Get Started button. We'll help you figure out the best next step for you based on your specific situation. That's ramsaysolutions.com and click Get Started.