The Ramsey Show - App - Should I Invest in Real Estate? (Hour 1)

Episode Date: August 2, 2023

Dave Ramsey & Jade Warshaw answer your questions and discuss:   EveryDollar, budget for the life you want today for free: Click Here "Should I invest in real estate in Thailand?"  "How fast should I pay off my debt?" from the blog: How the Debt Snowball Method Works, "Should I sell my house?" "Use a business broker to sell my business?" Have a question for the show? Call 888-825-5225 Weekdays from 2-5pm ET Enter The Ramsey Cash Giveaway for a chance to win $3,000! https://bit.ly/TRSCashGiveaway Want a plan for your money? Find out where to start: Click Here Listen to all The Ramsey Network podcasts: Click Here Interested in advertising on The Ramsey Show? Click Here Learn more about your ad choices. https://www.megaphone.fm/adchoices Ramsey Solutions Privacy Policy

Live from the headquarters of Ramsey Solutions, broadcasting from the Pods Moving and Storage Studios, it's The Ramsey Show, where we help people build wealth, do work that they love, and create actual amazing relationships. Thanks for hanging out with us, America. We're so glad you're here. My co-host today, Ramsey personality, Jade Washa. And for this segment, we invited Dr. John Deloney,

Ramsey personality, number one best-selling author of the book Own Your Past, Change Your Future, and apparently getting ready to be a number one best-selling author on this new one called Building a Non-Anxious Life. We put this thing up for sale in pre-sale yesterday and it is breaking records thank you guys we appreciate your response to it apparently there's a lot of people that need to build a non-anxious life or they know someone that does and so thank you thank you thank you thank you thank you we appreciate your response

the book is 20 and we give you 75 worth of goodies to pre-purchase it. The book will actually be shipped to you on pub date, October 3rd, along with the audio book, the ebook. And right now, as soon as you buy it, we're going to send you a copy of John's, one of his talks as well, which is a really good talk. And so this whole subject of anxiety, misunderstood, isn't it, John? Yeah, we've got a whole culture designed to help people not feel anxious anymore. And I think we've gone about that all the wrong way. I think anxiety is our body trying to get our attention and say, hey, we're not okay on multiple areas.

We're not okay. And if you just climb up in your kitchen, man, and you pull the batteries out of the smoke alarm, you've stopped the noise, man, but your the batteries out of the smoke alarm you've stopped the noise man but your house is going to burn down around you yeah i mean you should feel anxious if crap is going bad absolutely if you're standing in the interstate and an 18 wheeler's coming at you you should be anxious exactly if you owe a bunch of money if you're at a place where you're not safe if you're an abusive relationship if um you haven't slept in four days and you live off red bull and and taking pills to get rid of your anxiety doesn't solve the problem it doesn't turn

the alarms down doesn't solve the problem right and so we just simply have to have a conversation um across the country about reimagining the way we do our lives and hey by the way this is a conversation i've been having for several years with my friends who are medical practitioners, who are therapists, psychologists. Everybody knows. We know that it's kind of in this log jam, and it just takes some people to have the conversation. We live in the most anxious – all the data says the most anxious culture in history. It's wild, man. It's wild.

And the wealthiest. Yeah. And there's all these reasons it shouldn't be, but it is. We have no saber-toothed tigers. Tigers. I'm 100% – I have data to prove that. We have no saber-toothed tigers. I'm 100% sure. I have data to prove that. We have no saber-toothed tigers.

There are no saber-toothed tigers chasing us, so we don't have to be anxious. But we have 10 o'clock texts from our bosses saying, where's the budget? And we have emails, and we have mother-in-laws, and our bodies just can't handle it all, man. So what you're saying, it's not just a DNA genetic thing? Absolutely not. Yeah. Yeah, absolutely not. That's one of the big ones is, hey, this is just the way you are. Right. Sorry. Absolutely not. Yeah. Yeah, absolutely not. That's one of the big ones is,

hey, this is just the way you are. Sorry. You have a disease. Yeah. You were born broken. Your body's not right. There's some rare medical exceptions, but almost always, no. Some people are more sensitive to the world. I am. My wife is not. I can say, hey, I think we're going to die. And she's like, we're fine john right so my my alarms are tuned a little more finely than hers um but no i'm not broken in any way yeah and there's six daily choices that you can engage in which will address the real problems the real fire that's causing the smoke alarm to go off the problem is causing the anxiety to come up and if you address those six daily choices that's how you build a non-excess life yeah and i think that what you said is important they're very hard though well and some of them some of them are going to be easy for

people like for my wife budgeting and paying off debt okay that just makes sense for me a budget felt like i was getting dragged behind a boat right um for other people like going to counseling that wasn't hard for me like i'm happy to that. Some people will fight that tooth and nail. And so, everybody has different challenges. Some of these are going to be easier. Some of these are going to be harder. But I've heard it said this way, and this isn't, definitely I didn't make this up, but if you want to begin to heal your mental health and you want to begin to change your emotional health, it's like brushing your teeth. We don't want to get cavities. And so, we brush our teeth in the morning. We brush our teeth in the evening. And so really this book is laying it out as simple as brushing your teeth. Here are some things you can do every day. Here's

some things you can do every week, every month that are going to create a culture where you might get the occasional cavity. And by the way, this book does not insulate you from bad things happening. Your mom's going to get sick. You're gonna get a kid that um gets bullied at school you're gonna lose your job that's life but this book is about giving you the margin and capacity to take life when it hits you in the mouth and the life we live now dave we're so spun up and burned out and anxious and fried and then when life does what life does we're out we have no capacity and just knocks you out of the saddle that's right. But this will fill you. You get your tank full, then stuff comes at you.

You've got a full tank to deal with it. Yeah. It's your only shot. So good stuff. Building a non-anxious life. Ramsey Publishing's latest number one bestseller, I'm sure. Not yet officially, but we won't know until October. But by the way, you guys, speaking of that, can help us by pre-purchasing the book.

It'll help John, help us. We appreciate it. So if you want to be a supporter of what we're doing, one way you do it is simply buy the book early. We're going to bribe you to do it. The book's $20, and we're going to give you $75 worth of goodies to buy it early. And because all the sales we make before pub date

count on pub date towards the bestseller list. So legally, technically technically we've got it all worked out nobody's scamming anybody we're not scamming the list we're just trying to sell a bunch of books and help a bunch of people pretty simple or help a bunch of people sell a bunch of books however that works and so jump on at ramsey solutions.com the book is called building a non anxious life dr john deloney's latest we did issue a quick read back last year, which is a chapter book, basically 37 pages, called Redefining Anxiety. That sold 150,000 copies of this tiny little pamphlet book and proving that this subject matters.

Yeah, and it was my buddies who were psychologists and counselors and medical doctors who were buying it by the case and just giving it to their clients and their patients saying, hey, this is as simple as we can get it to you. We can help you out with this. And I think that's another important thing. I spent 20 years in higher education. I spent 20 years with some of the greatest, loving, wonderful scientists, great thinkers, great people. And this book isn't written for them. This book is written for folks who don't read a lot of books, who are just trying to, I got two kids and I just want a little more peace in my home. I'm an over the road truck

driver and I just want to be a better dad. And I don't even know where to start. This is the exhausted 50 year old mom who has to do something different. This is the 61-year-old dad who's just like, hey, I want to re-engage with my kids after a lifetime of kind of being separate. This is a book for people who don't read books. I try to make it as simple as possible and as direct and clean and clear as possible. The goal here is not to sound smart. The goal here is to help people live a better life. Well, look, I'm a person who's not ever considered myself an anxious person. And I read Redefining Anxiety. I read Own Your Past, Change Your Future. I can't wait to read this book because I think even if you're not a person who would say, I'm anxious, or there's so

many day-to-day things that take place in our life that affect us. And you can just keep your head down and just keep going through acting like it's not having an effect on you. And it is. And even if you don't consider yourself labeled in that way, there's still so much in this book that is going to be able to help you. I appreciate that. Yeah. Congratulations on another success, Dr. John. Thank you much for your support. Grateful. Dr. John Deloney. The book is Building a Non-Anxious Life, RamseySolutions.com. Click on the store, get you one. This is The Ramsey Show. Jade Walsh, our Ramsey personality, is my co-host today. Open phones at 888-825-5225. Carlos is with us in San Antonio, Texas.

Hi, Carlos. How are you? Hi. How are you doing? Thanks for having me. Sure. What's up? Well, I live abroad. I live and work abroad. I'm finally back in the U.S. after about four years. I was stuck because of COVID. So about a year and a half ago, I sold my house while I was abroad, and I wanted to now finally use the money and invest and make it work for me.

Now, I've been back in the U.S. for about two years. I have a meeting with a friend who's a banker. We're going to talk about possible investments. But I have a friend who bought a piece of property in Thailand for about $30,000 in cash. And I was thinking about doing the same thing. So I might actually be in Thailand in about the next three weeks or so to take a look at some things. It's just the first time I've had quite a chunk of change in the bank and being debt-free, so I was looking to do something with that. What is the size of the chunk of change? In the bank, I have about $290,000.

Okay, and what do you make a year? I would say about $80,000, but I pretty much live for free. Not for free, but the cost of living is very low. I got you. I would not buy that. Okay. And I'll tell you why. Because there's a bazillion $30,000 investments to do in the United States,

and the Thai economy is excellent. It is a fairly stable situation, but there is not any close to any country in the world that is as stable and predictable an environment as the United States. And when I buy investments, I want stable and predictable. And the thing that we forget as Americans is that, you know, every so often some of these countries just blow up, and I'm not predicting Thailand's going to blow up. That is not what I said, okay?

But we're just not used to the volatility of government, the volatility of things. And you have to have a predictable environment for economics to work. That's why law and order, order versus the opposite of order is chaos. And so when you have chaos, you do not have a predictable environment, and business and merchants and transactions cannot occur predictably. That's why the inner city in some of these wonderful American cities have just been destroyed because they've lost order. They've turned to chaos, and that's a miniature version of it happening to an entire country. I would instead have my money stateside than doing your very first investment in 10% or 20% of your whole net worth is going to be in a less predictable environment.

That's a kind, easy way of saying it. So you can do it if you want to, but I wouldn't. That's my reasoning. I wouldn't do it. Not, no. You and I have both traveled all over the world. Yes. And it's easy to, when you're traveling, it's also easy as an American to say, okay, everywhere operates the same way.

And it doesn't. No, it doesn't. And you kind of get enamored with these places. It's like, oh, this would be so nice. And you're seeing. It's beautiful. Exactly. I just think that with real estate, especially, it sounds like he's a guy that hops around he likes to travel it just feels like not the move i'm with you i

would invest stateside it's an environment that you probably know a little bit more about not to mention his buddy the banker gave him the advice which no he was meeting with him later about meeting with the bank okay because i was like i don't know if i let my banker tell me i'm not gonna let my buddy my banker tell me anything about investments okay bankers are where you deposit money not where you go for investment advice that's right so uh anyway so that's the second part of the equation you didn't ask carlos but i would go to an actual professional broker that gives people advice not a banker uh there's a difference there's a substantial difference but the way their brains work so yeah if you want to find out who we recommend for that that gives people advice, not a banker. There's a difference. There's a substantial difference,

but the way their brains work. So yeah, if you want to find out who we recommend for that, just click on SmartVestor at Ramsey Solutions and you'll find someone that is a professional that knows what they're doing, that it does investing for a living and works with giving advice for a living and that's who I have in my corner

and Jade has in my corner and jade has in her corner so but uh so that's the second part of unsolicited advice here so well he was on the right track wanting to pay cash but you know that that yeah he is and that does parlay i mean i'll continue that conversation um the uh i was thinking about this the other day one of my buddies is all torqued out about all the anarchy stuff and all the protests and people burning stuff down. He's going nuts. His brain's, you know, he's spending way too much of his calories on it because it hasn't got anything to do with him, really. But I was trying to explain to him.

I mean, the weird thing about anarchy is if it works, you burn everything to the ground and there's nothing left. That's the purpose of anarchy is chaos to destroy every known existing institution. Okay. And so when you do that, 100% of the time, what happens after that? Another group of institutions rise up. And they start ruling. And the anarchists are now in charge of that which is the actual paradox of anarchy yeah so i mean and the problem with all

that idea is that in the process of doing that you destroy you know what's happening on a miniature level as i said where you do not have a predictable environment of order versus chaos you cannot do business so in other words let's just put it into basic terms a little couple has saved up money they got 40,000 bucks and they want to open an ice cream shop okay they are not if they have wisdom going to open an ice cream shop in an area that regularly kicks in the windows and steals everything because they're putting their stuff at risk right and so if you want to make sure that your area has absolutely no business investment which leads to prosperity because it leads to employment if you want to make sure your area has that then just remove order and

insert chaos because you will guarantee the failure of prosperity in the area because it's a natural thing for people to say i'm not going to open my ice cream shop where people are going to burn it absolutely i mean it's silly you know and and some of these cities, the inner cities are not coming back after these riots. They're just sitting down there boarded up. And that's why, because people lost the belief that there was order. Instead, they have a belief that there's chaos. So when someone says law and order, sometimes people think, oh, well, that means the police are just kicking people and hitting people.

That isn't what it means at all. Law and order means that there's a law and order is kept as opposed to chaos. And that's not a racial decision. That's not a defund the police decision. It's none of those things at all. It's simple that you cannot have economic prosperity in areas where you do not have a predictable environment. And so you've got to, and the same thing happens in your personal life. You have to create a predictable environment.

So if all you and your wife, your husband do is fight all the time, very seldom are you going to prosper because you're in the middle of chaos all the time and you don't have a predictable environment. So it's very difficult to invest in, believe in, and pour your life into something called a future. Because all you're dealing, you're burning all your calories dealing with the toxic mess that is in your house. And so it can be in your house, it can be in your town, it can be in your country, but order is essential to prosperity.

And that's what I was trying to explain to my buddy who's drunk the Kool-Aid of some right-wing crazy butt stuff. But, you know, it's a very simple thing. And it's not a mean thing. And it's not really even a moral judgment. It's not a, you know, what do we do about it? Yeah, what do you do about? But you got to have order.

And if you don't have order, then you're not, by definition, ultimately going to have prosperity. I hear what you're saying, Dave. It has to be a predictable environment. And so that's the thing. Investments, business investments, where jobs come from, you're not going to have, the low couple's not going to open their ice cream store. And that just tells you what's happening. And so that's what's weird is if you burn your own neighborhood down,

that's what you're doing to yourself. It is not just your, it's just so illogical. I don't get it. This is The Ramsey Show. Jade Walsh, our Ramsey personality, joins me today. Jay is in Boise, Idaho. Hi, Jay. Welcome to The Ramsey Show. Hey, Dave. Thank you me today. Jay is in Boise, Idaho. Hi, Jay. Welcome to the Ramsey Show.

Hey, Dave. Thank you so much. This is awesome to be on here. I appreciate the opportunity. Well, thank you. How can we help? So, just to give a little preface, my company that I work for, they're awesome. We had an opportunity to sit at the Summit in April.

That's kind of how I started to learn about you guys. And then they offered to buy everyone FPU if they wanted it. Of course, I jumped on my wife, and so we're in that right now. And so anyway, we're I think week two or three right now. And I guess my question is, we have a student loan debt, a student loan, and a car loan that we're going to completely pay off in January, the car loan. But I also have a social impact business on the side. And so I'm trying to figure out, like, is there a way to kill two birds with one stone? Like, what's the smartest way to do that? Like, to make sure that I'm paying off my debt wisely, but also not leaving my business stagnant.

Does that make sense? Yes. I do think, okay, so you've got a job that you like, and you've got this business on the side, right? So what percentage of your income, your personal income is coming from the job that you love and what percentage of the income is coming from your business i would say 95 percent comes from my the job that i love and then all right five percent comes it's then i kind of think it's

a little bit of a moot point right because you've got this income here that you can easily use towards going towards your debt and the you know know, 5%, you know, like reinvest it in your business or whatever, keep it going. But it's not as though, you know, that business is your sole thing and you're trying to decide, should I take this money out to help feed my family or should I reinvest it? You've got the ability to kind of have that on the side, keep it going. And then you've got the vast, vast majority of your income to throw towards your debt snowball. What do you make? So I, with my current job, I make close to 70,000. Then I also, I'm a freelancer on the side with two clients that make me another 10,000 a year. And then I have that business on the side.

Which makes how much? It's, let's see. It's not profitable. It's not, no, it's profitable. It's just a very small amount of profit. Like a couple hundred bucks? Yeah, like I say a couple, like last year we made maybe three or four grand. This year we made maybe two grand.

So what it basically, sorry to give you a little preface on that what it is is i i sell polynesian design shirts to the number one paid tourist attraction in hawaii okay and with that money i pull out like five to ten percent of that profit but the rest of it i'm using it to help polynesian to um achieve their dreams basically so like whether that's through a scholarship that's through home ownership things like that but right now obviously it's so small I've only been able to endorse two or three people yeah with their endeavors just leave that thing alone mm-hmm let it run itself don't add to it don't take anything out of it okay and then go then go work your stuff now how much is your car debt and your student loan debt so my

car debt is um it is ten thousand um and my my wife's student loan debt is around $32,000. And in January, we're paying our car off enough to where I think by January we should have it down to maybe $8,500. And there's an incentive bonus that I'm planning on getting from the company that will wipe that car loan out. That's our plan to use that. You need to pay off more than $1,500 worth of debt in six months okay you need to gear this up that's gonna take forever okay so you guys need to lean in let's get the let's get a whole bunch of stuff it'd be really fun if you could like have the car paid off by january really yeah and then throw the,500 at the student loan

or something like that. I want to gear this up. And that may be gearing up the freelance. It's certainly going to be gearing down some of your spending. Definitely. And I really want to lean into this and get this stuff going

because you've got $42,000 worth of debt. You make $80,000. So if you want to be done in two years, you need to do $21,000 a year. That's almost $2,000 a month, not $2,000 between now and christmas you can do that you can do that i think i could do it too no i know you can do it we can do it you you can do it yep this is doable you you can get there jay and that that's that's how i do that you just run your

math out like that and then it makes it believable and once it's believable then the hustle's worth it that's right the grind is worth it the extra hours are worth it but you got to believe it's going to something it's not just a rat in a wheel anymore right i got you got to feel the traction you got to see the traction and when you do that then you'll go do anything i mean that's he and his what he making an additional thousand dollars a month doing something and his what yeah you know what i'm saying that's much quickly, how much more quickly they could move. Yeah. I double the freelance.

Yeah. And just let the, let the, we don't want the social impact to run out. Sure. But we also don't,

we're not trying to put a bunch of calories into it to run it up. That's right. Right now. That's right. Let it just sit there and maintain.

And then when you get this debt clear, you're going to be in a position to really lean into it and make it go. Yeah. That's right. That's good.

Very good, Jay. Very cool. Hey, thanks for calling in, man. Stacey's with us in Cleveland, Ohio. Hi, Stacey. Welcome to the Ramsey Show. Hi. Thank you for having me.

Sure. What's up? I really appreciate your show. I've only been a listener for a couple weeks now, and I'm obsessed with you guys. I think everything you have to say is awesome, and it totally applies to everyday life. Thank you. We appreciate that kind of obsession. Yes, I am.

I actually fall asleep at night to you in my ear. Oh, that's going too far. That's going too far. We still love you, though. I love the colors that call in that make $100,000. That's what I keep hearing. I do hear some single moms call in, but I'm one of those. And I appreciate your podcast and all your information.

I was hoping maybe that you could give me some advice as a single parent because it's really hard to squeeze blood out of a turnip. I'm really trying. I'm actually, you know, looking into selling my house and I've been here for 14 years and I bought it for, you know, very cheap. Why are you selling it? I want something smaller and more accessible, one floor ranch type. How old are you? Me? Oh gosh, I'm almost 48. And how many kids do you have? I have two.

Two. What are their ages? 27 and 15. Okay. So you want something smaller and accessible. You're downsizing preparation to be an empty nester. Yeah, and I was wanting to buy some land. It's kind of like been in my heart to buy land and maybe purchase a mobile home or build a small house on that land. No mobile homes. They go down in value. What about the land? Land would be okay, but I'm confused. Are we doing a house or are we doing land? Well, I'm kind of tired with this house, so I was thinking of land with a small house, like maybe building something really small on that land.

Oh, I see. Okay. Yeah. Well, there's nothing on fire here to do this. You can do it any time in the next three or four years, right? Yes. Okay. I mean, 15-year-old leaves home.

It would be nice to have it done. My house is double from what Zillow and whatever, whoever says it's double than what I bought it for. What would you take away from it? At least 100 grand. Okay. And what do you make? I don't make much. So I'm a nurse. I do home care. I have my own home care business. That's another thing. I don't make much,

so I'm kind of like, that's what I'm saying, like drawing nothing. It's hard. Why don't you make much doing nurse home care? Well, I do. I charge my own rates, but it's still... What is your income? What do you pay taxes on? How much do you make? I make about 50 a year, and I have to be there for my son. Yeah, he's older, but I have to be there because, you know, he's that age. I'm working. Why have you chosen to make half what you can make? Well, that's part of the question I'm asking. What else can I do? I'm kind of stuck, I guess. I mean, it might not be as flexible or it might not be exactly what you want to do,

but nurses can make 80 to 100K in Cleveland, Ohio. And so I'm going to start thinking about how I can go make some money to make some of these other dreams come true. Instead of, yeah, your income's're what you should be making for your wonderful career field and i think that would help you move some things along this is the ramsey show jade washall ramsey personality is my co-host today thank you for joining us ashley is in Denver. Hi, Ashley.

Welcome to the Ramsey Show. Hi. Thank you so much for taking my call. I really appreciate it. Sure. What's up? My husband and I are wanting to sell one of our side businesses, which is a vending machine business.

And we are wondering if we should hire a business broker or what are our best options to try and sell this business? How many machines have you got? About 30 locations, 30 machines or a little more. What's it making? 30, 35 machines. This year, we are estimated to make 90K. Last year, it was like around 75. And then the year before that was about 60 to 5 to 70 um post pandemic but

we profit about somewhere between 60 to 65 cool okay good all right um you ever sold a business before no okay okay um well the uh a business broker a good one, would bring two or three things for you. One is they're going to help you put an accurate value on it. Two is they're going to obviously have some potential clients, we hope, that they'll do, bring to it. And three is they'll help you do the paperwork part of the transaction in a way that protects you and the buyer. If they're a good business broker. I'm sorry? Okay.

That was our biggest concern is the paperwork and verifying funds. Okay. Well, you can do all of that. Probably less expensive with a basic attorney if you have an attorney that you use for things. It's really not rocket science to transfer the assets and verify payment um in escrow in order to do that that that's really not that big a deal you think you find you think you find the buyer um no we don't have anybody we're hoping to try and sell this by the end of the year but we we're just kind of in the starting out stages of figuring out what to do next.

What's made you kind of, I'm just curious, what made you say, I want to, we're ready to sell this business? We think it's kind of run its course. It's been really great to us, but we also have a couple other side businesses, plus my husband's full-time job and it's just kind of it is very labor intensive and takes a lot of our time so we just are kind of thinking it'd be nice to kind of unload it basically. So you say you make a profit of 60 that doesn't count paying you labor? I mean it's just me and my husband so we don't really pay you labor basically

you're in other words the 60 is after cost of goods sold but you didn't pay any labor out of that no okay all right so the way you value a business is you value it as a standalone business not people working for free okay and so you know by that i mean an absentee investor and so if i wanted to actually value it i would say what would it and i wanted to buy it i live in tennessee and i wanted to have somebody run it what would it cost me to hire somebody to run it and run the machines probably 30 or 40 grand right okay is that probably right i don't know how long how many hours a week does it take to run it um probably i mean depending on how many locations we have to do that week it could only just about four or five well i mean average throughout the month i'm sorry

uh probably about five hours a week. Okay, cool. Okay, then it's not $30,000 or $40,000. It's part-time. You have somebody as a part-time. If you hired a part-time employee to do all the work, what would you pay him, do you think, for five hours a week to go do this stuff? I mean, if you paid him really, really good, you'd pay him a couple hundred bucks a week, right?

Sure. I'm sorry. My husband's the more numbers well i mean okay i mean that would be that would if you paid them twenty dollars an hour that would be a hundred dollars for five hours right yeah okay and if you doubled that paid them forty dollars an hour make it the best part-time job on the planet okay right then you got two hundred dollars a week and so eight hundred dollars a month is ten thousand dollars a year okay so i'm trying to figure out if i wanted to hire somebody to do this if i could find somebody trustworthy and pay them really good per hour but then uh and then i trust them with the whole operation and so let's call that $10,000. Okay, so if you made $60,000 and I pay labor out of it, now you've got a $50,000 net worth.

So you're a $50,000 net profit. So the way we value most businesses, and I'm not used to valuing particularly vending machine businesses, but basically a business is worth somewhere around four to five times its net profit after all real expenses are removed. So that means that this business is worth somewhere around $200 to $250. Does that sound like anything you all have been talking about? No. What did you think it was worth? We were thinking it was more or less like $70 or $80,000.

Oh, really? Why? Where did you get that uh that's just kind of um in like the vending or at least what we had seen in the vending world that's kind of what people have sold it for okay one times cash flow okay well that might be it might be well what it's worth i don't know um and so uh but that so there we go again do you want a business broker so if you sell something for 70k what's the business broker gonna get 20 commission 15 commission whatever it is that's you know is it worth uh you know 15 10 15 000 bucks for uh them

to help you value this properly and to do the paperwork and to help you find a buyer i'm trying to see how this is worth it for you guys to sell. You should just, looking at these numbers, just hire someone to do the part that you don't want to do because you're in the position to profit and not do the work. You're just overseeing somebody trustworthy who you're going to pay $10,000 a year. That's kind of the problem. We're not quite sure who we could even figure out to hire. There's a

lot of cash involved um and things like that um we don't do just strictly credit cards so it would be so you're going to the machines picking up getting all the cash you've got all the coins and everything yeah i see that's interesting well okay i'm going to i told you up front i don't know how to value a vending machine business. I'm valuing a business in general. So I want you to do some more research rather than I just heard from some guy who sold a machine once. I really want to find out what the standard is in that industry. If it is only one-time cash flow, that's not much.

If it's one-time cash flow, I'm keeping it and I'm hiring somebody. Yeah, absolutely. But if you can get two times or three times, and the going rate is two times. But let's pretend you accepted $60,000 for this business, and it was actually worth $120,000 or $200,000. Well, their business broker would have paid for themselves, helping you properly value it. So call some business brokers to have some conversations and find out what it is they're going to get that makes them worth what you are paying them. And that's what it amounts to. If you want to value your own business, then you would search among friends in other cities, other people in the vending world, and try to learn what it's

actually worth. I truly don't know. I've worked with a lot of different things with vending, a lot of different small businesses over the years. We work with tens of thousands of small businesses in Entrez leadership. That's a standard valuation method. It's called a cap rate method that I was using, a capitalization rate. And so that's the process that most people use. Now, again, that might not be true of something that is like this small and something that

has a route involved. That is true. Yeah. Truly don't know. But it's only worth what it produces. That's for sure. It's not worth what you paid for the machines unless they're worth more as machines than they are for what they produce.

Yeah. And a key component to that that you brought out is if they're the only workers, even if they're not paying themselves, they still have to account for what someone would be paid to do that job. Yeah, yeah. Okay, so if you look at it another way, I'm just staying on your idea of keeping it i i obviously they're not going to keep it but you and i might but um yeah but uh i mean what they make per hour for their labor is incredible yeah i mean we're talking they're making 150 bucks an hour yeah she says it's only five hours a week yeah so why is this killing you i don't know that's why i had more questions but

we maybe could have gone all day on that but it seemed like i think there's travel involved going it's a route right they're going from place to place and you got all those coins it's like a paper route only yeah back when there were papers yeah now all this left are pamphlets this is the Ramsey Show. Hey, what's up, guys? It's Jade. If you love the show and want a deeper dive on your money journey, we have a weekly newsletter that gives you trending and helpful articles and tips on following the Ramsey way. Just go to RamseySolutions.com today to sign up for our newsletter.

Again, that's RamseySolutions.com to sign up for our weekly newsletter.