The Ramsey Show - App - Should I Let My Friend Borrow Money? (Hour 1)

Episode Date: March 14, 2023

Dave Ramsey & Jade Warshaw answer your questions and discuss: "Should I go into business with my friend?" from the blog: The Dirt on Partnerships, What to do when friends ask for money, "Should I break up my brokerage fund into multiple accounts?" "We were gifted a deed" Have a question for the show? Call 888-825-5225 Weekdays from 2-5pm ET Want a plan for your money? Take our FREE 3 minute assessment: https://bit.ly/3nInETX Listen to all The Ramsey Network podcasts: https://bit.ly/3GxiXm6 Learn more about your ad choices. https://www.megaphone.fm/adchoices Ramsey Solutions Privacy Policy

Live from the headquarters of Ramsey Solutions, broadcasting from the pods of 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. The one and only Jade Warshaw Ramsey personality is my co-host today as we answer your questions about your life and your money. The call is free at 888-825-5225 and some say it's worth exactly what you pay for it. All right, let's go to Michael in Topeka, Kansas to kick off this hour.

Hey, Michael, how are you? Good, good. How are you doing? Better than I deserve. What's up? Hey, so I appreciate all the insight you've given me over the years. You've really helped me in my personal life and just to make more sound decisions. So thank you.

Thank you for that. Well, thank you. Hey, so I had some friends who they reached out to me last year and they said, hey, we've got this business. And, you know, we were kind of struggling. We bought it and it didn't really have the sales that we thought it would. And they were always trying to get me to go and sell for them. And I was saying, hey, you know, I've got a full time gig. It's not something that I could really fully commit to.

If you could send me your last year's P&L, I'll try to see what I can do. But it didn't look too good. I mean, in their first year, I think they netted only $10,000, and that was after paying some employees. So it wasn't doing very good. And these were good friends of mine. You know, they'd helped me out when I was in kind of a bind one time. So I said, hey, let me see what I can do towards the end of this year

and I'll make some cold calls around the area and see what I can do to help generate some sales. Well, now they're starting to, you know, net roughly, you know, anywhere from $6,000 to $8,000 in a month. They're doing a lot better now and they're still asking me, like, hey man, we'd really like to see if you could come in and do this full-time for us.

I just don't really even know how to structure a deal. It's a couple guys and another individual and one of the individuals wants to get out and they've got $110,000 in debt. So I'm saying, hey, I don't want to invest in this or absorb any debt, but I could do some sales.

You can't work as a contractor? You can't just work as contracted labor for them? Well, and that's kind of what I proposed, but that's something I've never done. Again, I have a full-time gig and it was something where I didn't really invest that much time I mean I made like three or four phone calls and was able to generate some some sales in a very short period of time really just did this you know kind of what do you what do you make Michael now currently yeah um roughly you know, 100, 150, 160.

And you sell now for a living? Yes, I do. You don't like the company you work for? I do. You know, they treat me very well, and I like them. I think it was very kind of you to help your friends. There's a fur difference in throwing them a lifeline and getting in the boat with them. I think I'm going to stay out of this boat.

It sounds like it's sinking. Is that where you're at? Yeah, okay. You've got one guy wanting to get out. They didn't know how to turn a profit until they got you to make sales, and now they want you to come in there and make sales and be an owner with them. There's more can go wrong with this whole scenario this isn't like two guys that were successful and said come join us these are two guys that couldn't do it and said

come join us yeah yeah you know not i mean if they weren't your friends you would be laughing yeah yeah unfortunately and that's and that's been kind of the challenges and i'm trying to explain to them you know hey here, here's the sales product. They're not really sales guys. They own another side business. If you want to keep helping them, you know, and keep your gig and keep helping them to get, you know, until they can get a good salesperson hired, maybe you even help them train that guy, and they pay you one-offs for doing that, that's fine.

But don't go get in this boat. It's leaking. How would you? Yeah, that's fine. But don't go get in this boat. It's leaking. How would you? Yeah, I appreciate that. If it were me, I would just set up some kind of commission for every sale that I make, say that this is the percentage I want, and you're just structured on 1099, and it's just easy, just like that. And for that, I'll make sales, and I'll also help you as your friend

train your first salesperson if you'll get them hired yeah but I'm not but I'm not coming over there I appreciate I mean that was the direction I was thinking of it as well you know I've got some real I've got I've got one really good friend who's a banker can you imagine if I wanted to no not going with him right he's a banker I like him anyway but he's a banker you know no I'm not going with him. He's a banker. I like him anyway, but he's a banker. No, I'm not doing that. Just because he's my friend, no. I mean, there's a difference here.

I mean, what are you supposed to do with your life? And it does not align. The only thing pulling you here is your need to be good to your friends, which makes you a good guy. But don't let that pull you into this boat. Yeah, definitely not in any ownership capacity, as it sounded like they were trying to get you in there. your friends which makes you a good guy but don't don't let that pull you into this boat yeah definitely not in any ownership capacity as it sounded like they're trying to get you in there i would just yeah yes i'll take a commission for every sale i make and i'd put a i'd probably start

with a really short time limit on that too hey let's try this for a couple of months and if it goes well we can extend it just be very clear with whatever terms you write put it in writing we'll do a part-time gig and I'll go over here as a side hustle and help you guys get this thing up and running until you get somebody hired, and then I'll help you train them. I'll bust it for 90 days. During that 90 days, you've got to get somebody hired. During the next 90 days, I'll train them, and then I'm out of here,

and you guys are going to sail this boat by yourself. Love it. That's a plan. Good point, Jade. Very good point. So good rule of thumb is this, and Michael's coming at this a little bit differently but in entree leadership we run into this all the time and i'm now the new

host of the entree leadership podcast if you haven't heard so it's a small business podcast answering questions so jump in on that but one of the things we tell folks in that world all the time is and i see it with small business i mean mean, and guys, girls do it too. Gals do it too. But the way I always see it is about three guys are sitting around having a beer and then they decide they're going to open something together. Gosh. And every one of them are dumber than a rock.

And the idea is dumber than a rock. But by God, we're going to do it together and their wives are telling them please don't do this please don't do this with guys if we're going to go in the construction business or we're going to do whatever ladies open a dress shop and these are just guaranteed ways to end up not friends at the end of it to end up losing money at the end of it and we tell people all the time in those situations the only ship that won't sail is a partnership stay out of that one okay that one sinks and so if you if if you really do want to go in business with your friend one of you own it and the other one work for them if you're really going to do it so michael the only way i would even consider moving over there

is if you bought this business that's that's losing and horrible for a dollar and the guys that can't run it get to be your new employees. But I wouldn't do that either, by the way, in this case. But that's the only way I'm going to do it. I'm going to be in control of the situation because there's all these things that we call the D's that can happen. Divorce. Yes. Drug use. Default. Disability. Death. When any of these happen to your partner, you get to work divorce, drug use, default, disability, death. When any of these happen to your partner, you get to work with your partner's spouse after that. Yikes.

So he gets a divorce. Two old boys start something, it's successful, they get a divorce. All of a sudden, you're working with your buddy's ex-wife because she got the business and the divorce. Yeah. This is woo-hoo. Yeah. See what I mean? Yeah. This is, woohoo. Yeah. See what I mean?

Yeah, that's scary stuff. Bad plan. The contracts are never, it's never in writing very well. Even if it's in writing. There's always this gray area. Death will undo it. That's true. Even if it's in writing.

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That's chministries.org slash budgets. Jade Warshaw, Ramsey Personality, is my co-host today. Thank you for joining us, America, with debt payments and now with inflation, stealing more and more of your paycheck we know a lot of folks are scared out there and um you hear the rumors of banks collapsing and you hear all these things and you you can't you know hardly afford your groceries we understand you know what you shouldn't have to live that way when sharon and i went broke we finally looked in the mirror and said that's it i've had

it i'm not going to be like this anymore and um well if you're ready to do some new things if you want different results you have to do different things by the way if you keep doing the same thing over and over again expect a different result that's called the definition of insanity right so you need to try something new if you want a different result if you don't like the way the the jade made famous brownies this week on instagram i saw her instagram if you don't like the way the brownies turned out you change the recipe right and so hey you want to change the recipe it's time to get into financial peace university our nine lesson course that'll teach you how to beat debt and build wealth nearly 10 million people have taken financial peace

university and uh that means that we're the largest and best known personal finance successful personal finance class in america hello so check it out financial peace university at ramsay solutions.com slash fpu ramsay solutions.com slash fpu ramsey solutions.com slash fpu now you've started a class right that's right you're you're coordinating a class on a virtual class with like a thousand people and that's right we're four four lessons in you're doing like a fast uh faster than you're doing more than one a week that's right most of the time when you hear about it it's a nine-week course we fast-tracked it A lot of that was just to test out what that can be like in five weeks. So you're doing nine weeks in five?

Nine weeks in five weeks. So two lessons a week? Yep. Okay. And these people are cutting up credit cards, Dave. That's what they're supposed to do. They're changing their lives. Yep. The point is they're not scared to make those changes. Yeah.

And I love that. Yeah. I mean, like a thousand people cutting up credit cards on Zoom. Yep. This is fun. Yep. They're raising their hand to say, I want to come on camera and cut up my credit cards. I love it. I love it. On-air plasectomies.

On-air. We used to do those. We used to do plasectomies a long time ago, and it would be like the most creative way, and people would go on the air with their AR-15 and shoot them. They would go on the air with their chipper, and shoot them uh they would go on the air with their uh with their chipper yeah log chipper yes yes you know on the air with any you know blenders we destroyed a lot of blenders in america back then well yeah because now you can never use it again after you run a credit card in it so uh because it you know it's toxic right i think the credit card the credit

card companies are on to us dave because, because they're making a metal now. Yeah. And they're hard to cut through. Tin snips. Tin snips. That'll do it. Get out the old grinder. Oh, yeah.

Put it in the meat grinder. If you're going to make metal ones, we're going to have to involve either firearms or power tools. Love it. I'm here for it, Dave. Yeah, I'm in for this. This works. Or both. Firearms and power tools. Yes. Now'm here for it dave i'm in for this this works or both firearms and power tools yes now i'm having fun all right paul's with us in indianapolis hey paul

welcome to the ramsey show hey what's going on hey man how can we help hey uh so i am in uh let's see here baby step four five six uh i've got a friend who, uh, great man, really close friend, hardworking guy. Uh, he's going to buy a flip house. He's going to flip it. And he was, he's got an investor, but he was wanting me to maybe chip in. And, and so here's where I'm at is I'm struggling to, you know, really get in gear and pay off my house. And so I've got this extra money sitting there and I'd like to invest it. I'm not going to invest it with him this time around because it just seems like the numbers don't make sense.

But I've got, I guess, two questions. One would be, is me investing in his little project, is that me putting him in debt? And would that change our, like, really close friendship? And should I just avoid that altogether? Or is that an investment? And then my backup question would be, convince me to pay off my house instead of putting $20,000 towards his little flip, putting it on my house.

Well, we'll start with that one. If your house was paid for and your friend came and said, Hey, go get a mortgage. And we'll use that to do a flip with, what would you say? Uh, I tell him he can jump off that house. Go fly a kite. This is the same thing. This is the same thing. We just reversed it.

Right. So exact same principle. Um, it's just, it's just, you know, the money's laying there and you hadn't put it on the same thing. We just reversed it, right? So exact same principle. It's just, you know, the money's laying there, and you haven't put it on the house yet. So it needs to go on the house. Now, on the other thing, how are you all structuring the deal? Are you going to be partners, like you're an owner with him? No, no. It's kind of like, hey, just give me this money, and in six months or maybe a year,

I'll give you 10% back. And I'm looking at him like, 20 grand, 10%, like, I'm going to make $2,000 on this. And it just seems so open-ended that I'm not interested, but I think I know he'll get good at this, and he'll do it more and more, and then he'll come back to me in the future. And it's like, well, wait a minute. Is there an underlying principle that I should say no from principle?

Mm-hmm. Well, you are loaning him money. Is there an underlying principle that I should say no from principle? Well, you are loaning him money. You're the banker. You're the banker. If you want to be in the banking business with your friend, you can do that. I don't. I don't. There you go.

I mean, that's what it is. It's a loan. He's not asking you to give him the money. It's not a gift. He's going to repay the loan plus 10 percent at his convenience when it sells and i don't want to be the bank that's the loan it's a loan can i tell you can i tell you a quick story paul i have i have a family member who has that relationship with a lot of their her friends and the relationship is i'm giving you this money you're going to go invest in property or i'm giving you this money and you're going to go do this and sometimes it takes longer for these things to pay out if they pay out and there has been times where we've gone out to dinner and

maybe we're at that person's restaurant that she invested in and instead of saying hey do you want to go eat at my friend's restaurant the language language is, hey, let's go eat here. He owes me anyway. This is my good friend. And do you see what I'm saying? Now it's a transaction between them. She's thinking, oh, he owes me money. I'm just going to go eat here for free.

After all, I invested here. So it changes the way. It's all unsaid, unspoken. Yikes. Yeah. He can say give me the money all he wants, but he means loan me the money. Yeah, yeah. Because that's the actual business arrangement that you're coming to. And if you put that in writing, and you loaned him money, and he gave you

10% back, yeah, the principle is, yes, the borrower is slave to the lender. You just changed the relationship. That's the principle you're violating. The second principle you're violating is dumber than crap to make only 10 on 20 grand tied up for an indefinite period of time in a high risk scenario with a guy who does not have a proven track record i would dump it in mutual funds 6 000 times before i would put it in that um if you want to do flips go do flips If he's going to give you 50% of the profits and there's $6,000 of profit and you put in 20 grand, now we got something.

The numbers actually give me a reason to think. But 10%, no thank you. No thank you. No deal. Ding, ding, ding, ding, ding. Walk, walk, walk, walk, walk, walk, walk, walk, walk, walk. Hey, guys, if you want to help us out, we would appreciate some help. And a matter of fact, a bunch of you have been doing it because our numbers are way up on the podcast, way up on our ratings.

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five stars now we don't really need any one star ratings your mother said if you ain't anything nice to say don't say nothing at all so just stay away if you want to troll troll something else but uh yeah seriously we need high five star ratings and we need follows and we need shares and if you do that it doesn't cost you anything if you you like what you hear, tell people about it. Sharon and I went to the preview of this movie that just came out last week. We went to preview about four weeks ago. The Jesus Revolution movie. So good.

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This is The Ramsey Show. Jade Warshaw, Ramsey personality, is my co-host today. In the lobby of Ramsey Solutions on the debt-free stage, Richard and Angela are with us. Hey, guys, how are you? Hi. Great. Thank you. Welcome.

Where do you guys live? Stockton, California. All right. Good to have you guys. Welcome. And how much debt have you paid off? We paid off $310,525. Love it.

Yes. How long did this take? It took 33 months. Wow. Wow. And your range of income during that time? Started off at $173,000 and went up to $131,000. $231,000?

No, $131,000. Went from $173,000 down to $131,000. $231,000? No, $131,000. I went from $173,000 down to $131,000. No, let me repeat that. Am I got it backwards? $73,000. Oh, from $73,000 to $130,000. Oh, I misunderstood. My fault.

Okay, cool. What do you all do for a living? I am a resource specialist at a community college. And I'm a material store supervisor to state of california i recently retired oh congratulations thank you all right so you put ten thousand dollars a month towards this average now you must have had some money you put through you threw at this what kind of debt was this you paid off? Oh, it was everything. It was dental bills, credit card bills, home remodeling bills, and it was two houses. Whoa.

Your home included? Yes. All right. Wow. So you're 100% debt free. Yes, we are. We are looking at weird people, especially in California. Yes.

Wow. Way to go, guys. Congratulations. Thank you. Okay, so almost three years ago, some kind of a switch flipped. What happened that got you guys on this Ramsey stuff? Well, our journey with Dave Ramsey started well before that. It actually started in 2006-2007. We took

Financial Peace University with our church and after we completed the class we were kind of doing Ramsey-ish. We had a rental home that we owed less money on than we owed on our credit cards. So we kind of decided to flip the switch a little bit and we were going to pay that house off first and then pay everything else off. Well, lo and behold, 2008 and 2009 came and I got laid off. So that kind of changed things quite a bit. I took another job working part-time full-time and 10 years later several jobs later you know here we are

I would like to say when did you lean in and stop being ish 33 months ago we leaned in and stopped being ish um when we got the house paid off but we went back to using credit cards and such when i got laid off so we got all that taken care of and then you know we thought we were doing okay and uh we took your class again at another church and we decided this is what we want to do. We want to go all in with Dallas Church. Oh, so you really got like a D in the first class, and so you had to go back and repeat the class and get your A. Sometimes it's like that, Dave. Sometimes it takes a couple of times to make it stick.

Am I right? Right. Yes, yes. Well, I'm glad it did stick. Hey, what are these houses worth? I'm just curious. One is worth $580,000

and the other one is worth $350,000. So are you guys like baby step millionaires? Yes, we are. Yes. This plan is so good even if you have to it it works i mean here we are yeah very cool i would like to say uh i i retired because i got injured on the job

and then i started getting sick and i started having what you call TIAs. Well, the last one put me in the hospital. And so that kind of solidified it with us to just retire because I had to get some shoulder surgery and some back surgery and just the nerves in my back and neck was all messed up. So it was just best for me to retire. So I was able to retire and we were able to get out of debt. Sounds like a lot of years of really hard work. Yes, it was just best for me to retire so i was able to retire and we were able to get out of debt sounds like a lot of years of really hard work yes yes it was so 33 months ago we had a plan we decided that we were going to sell our primary house in stockton and we were going to move into that paid off rental property in Sacramento.

And that place had been a rental for well over 25 years. So we were going to remodel it and we were just going to turn it into our dream home. We were really going to make it ours. So we put our house up for sale and we got connected with a bad realtor and some shoddy contractors. We had to sue one of the contractors. Yes, we had to sue them. But before we put it up for sale, our real estate agent, she came in and she wanted us to make a few changes. She said, oh, I think you need to remodel the kitchen kitchen the house will sell much faster if you remodel the kitchen and you need new carpet upstairs you need bathroom floors change your blinds and we did all of that and

guess how we paid for it i hope cash please tell me with that credit card with one of the 11 credit cards that we paid off so our plan was to put all of this on credit and then pay it off you know when we sold the house then the kitchen's in and she likes the house again and she decides to stay well the house uh we had a person who wanted to buy they were first time home buyer it went into escrow and the deal fell through so in the meantime you know we're starting to pack and we're excited about moving and getting the contractor started and they really wanted to start soon because it was, you know, the beginning stages of COVID. They had that transportation issue going on where, you know, stuff was just sitting on docks and such. And so our contractor said, well, you know, we don't know if we're going to be able to get this in three months. So, you know, we need to sign this deal now.

So we did uh bottom line we ended up telling them we no longer needed their services they threatened to sue us we had to get a lawyer to basically threaten to sue them and so on and so by the of God, we were able to get out of this contract. And my husband said, we need to sell it. And I will say that when I first heard your program, I had just bought a brand new truck. And it seemed like everything you said was sell the truck sell the truck sell the truck we love that i love the truck and so i did now that you are completely free how's it feel well it feels great it really does

but it just really took a long time to get there. You know, we went through so much, particularly with this contractor, because, you know, probably now about, I don't know, 20 something months into this, you know, we're standing in front of a house that looks like it's been totally abandoned, boarded up windows, boarded up doors. And, you know, the contractor kept telling us, oh, the windows are coming in, the doors are coming in. But bottom line, we're standing there in front of a house that used to make $2,000 a month in income that we would use to pay on our other house. Angela, I'm going to short circuit you because you're going to miss your debt-free screen. You're free now.

That's what matters. The good news is you made the corner. I apologize for interrupting you. I'd love to hear the whole story. No problem. Richard and Angela, Stockton, California. Baby Steps Millionaires, 311, paid off in 33 months, making 73 to 131. Count it down.

Let's hear a debt-free scream. Three, two, one. hear a debt-free scream three two one we're debt-free quite a journey to get there but worth the trip worth the journey i know that's right this is the ramsey show if you're a new listener and you're still trying to figure out what all of these code is The Ramsey Show. If you're a new listener and you're still trying to figure out what all of these code words we use around Ramsey are, like baby steps or debt snowballs or all that, hey, jump on the website at RamseySolutions.com. Click the Get Started button.

It's all completely free, and it will show you exactly where you are financially in the baby steps, start to teach you the vernacular, the things we're talking about around here and how we're showing people this because a little bit of sometimes people that have been listening to this show for 15 years call in and we talk to them and if you really hadn't been around you don't even know what we all just said and so we want to we want to get you in the loop on that we got a bunch of new listeners and new viewers out there and we want to be able to help you. RamseySolutions.com. It's a free service. Click the Get Started button. Sarah is in San Francisco. Hey, Sarah, welcome to The Ramsey Show.

Hello. It's an honor to speak to you both today. You too. What's up? I have a question. So I have a couple brokerage accounts with more than 500,000 in them, and I was wondering if I needed to worry about SIPC limits of protection and break up those accounts between different brokerage firms. The SIPC, I mean, you've got the money invested in stocks or bonds or mutual funds, right? Yes. Okay.

So if that brokerage company went broke, it doesn't, you don't lose your money. This is not like a bank account. Okay. Because you own, you own own what have you got it in stocks or what what's it in um yeah mutual funds um a few bonds okay you have an actual account that owns i mean you own a bond you own uh a mutual fund you own mutual fund shares so if the company that is giving you access to those shares goes broke you don't lose the shares you just you just have to find a different way to access them so the SIPC has more to do with if they're fraudulent they steal your money or something like that but if you actually have statements showing account numbers and ownership positions in these things, you actually own something.

The way you would lose your money is if the companies that you owned went broke, like the stock that you owned went broke. Does that make sense? Like if you had Apple stock and Apple went out of business. I'll make it up. I'll just put it in. Let's say your brokerage accounts are with merrill lynch if merrill lynch goes broke you don't lose your money because you're not invested in merrill lynch they're just the access portal through which you are handling your investments it's different than if you put your money in a bank the bank

takes possession of that money they i mean you have an account there but they're not a broker they are owning that money and they can screw that up as happened in your neighborhood last week sarah which what got you thinking about this yeah that's what got you thinking about this question yeah it's a good question it's a different uh situation so no i mean if you want to do that, that's fine. I have all of my investments with one brokerage account, one broker, one brokerage firm, one advisor, one of our smart investor pros. OK, I don't need seven. And it's millions. And I don't need seven different people to get SIPC protection because I actually own mutual funds in XYZ mutual fund. And I actually own mutual funds in XYZ mutual fund and I actually own something there and so that's the difference and that's a good way of reminding everybody this you don't

make money when I used to work for a guy a thousand years ago he said don't be a loaner be an owner when you put money in a bank you're loaning them your money and they're paying you interest not much but they're paying you interest when you put money into an investment you're an owner yeah so if you want to make money you need to be an owner not a loaner there's never any money with putting your money in a bank and so apparently even owning the bank is bad but well you know I get where her question is coming from I was watching the today show this morning and they were going over what you should do with your money. And they were saying, you know, if you have over $500,000 in the bank, you know, you're only covered up to $250,000,

so to break it up and all these things. And I'm thinking to myself, why do you have just $500,000 just sitting in the bank? Like, go invest that money. Exactly. You shouldn't have. Just go invest it. And we talked about this on the air yesterday,

but we'll just segue into it for a second you need to understand a lot of people are panicking right now and if you didn't hear us talk about this yesterday over that uh one bank collapsing actually and then the fdic stepped in and uh scored some other banks in a similar situation two more probably gonna see a couple more go down the fdic probably going to take them over but these are not banks that are uh your neighborhood bank right okay uh 88 percent of the depositors had more than 250 000 in there this was a bank full of money from tech startups venture capitalists hedge, the uber rich. It's in Silicon Valley.

Okay. So this was not your grandmother's CD at the bank. This is not what was going on over there. There's a completely different scenario. And so the typical bank would be the other way around. They would have like 88% would be covered. Right. the way around they would have like 88 would be covered right the not 88 of their deposits are 60 or 65 of their deposits are under 250 000 and so they've got full fdic coverage for all

of their depositors uh that are you know that fall into that now again i in my local bank i have over 250 with our businesses and a lot well over that but i'm not worried about my local bank i have over 250 with our businesses and a lot well over that but i'm not worried about my local bank i did not pull money out because the banking system is collapsing it's not okay it's just not so you're you're gonna be okay calm down and don't rush out and buy gold and don't don't rush out and buy crypto help us dave and this is just calm your butt down so that's not her not i mean she's asking a reasonable question because she's got this right in her face it's in her neighborhood but and it's a different kind of a question it's a great question by the way sir but the uh yeah but but overall overall folks with the the whole and the other

thing that happened from this was the bond market, they were liquidating a bunch of bonds, and the bond market surged, causing rates to go down. Simultaneously, mortgage rates went down. So if you're going to buy a house and you want to lock in a mortgage, call Churchill Mortgage today and get your mortgage locked in before it goes back up by the end of the freaking week and this stuff calms down. Good point. So you might save as much as a half of a percent this week let's go if you move on this fast uh and and so if you're thinking about buying a house in the next few months that you can get

like 90-day locks and stuff with your mortgage company like churchill mortgage that we recommend go do that it changes everything open phones at 888-825-5225 sergio's in dallas sergio what's up hey thank you so much for taking my call dave sure how can we help uh well long story short um my wife's grandparents which are still alive they uh kind of gifted her their home, but they're kind of, they're selling it too, but it's going to be taken out of her inheritance. And we, we took it, it's in a different town and everything, but we took it. We're actually in the process of moving in right now. And, uh, my question is what to do with our existing house right now. You have a mortgage on it yes i'll sell it about 50 000 sell it okay you don't have enough money to be in rental business you don't have the money to pay for that house

the other house paid for that granny who gave you yes so now you're debt free yeah there you go if you were 100 debt free would you would you think if you called me up and said hey jade i want to buy a rental property and go in debt, what would Jade tell you? Guessing what you told me. Bingo. No, you wouldn't do it. I don't think that you would search the country to find your house as the perfect rental house. So that's the best way to look at it.

Get rid of it. Live in the house that you're in, debt-free. That's exciting stuff. We're the grandparents now. It's a big blessing. They're in a nursing home. Oh, okay.

Very sad. We're actually in the process of, we're having an estate, so right now, selling other stuff. And the house has been deeded to you and your wife. Not officially, but yes, that's... No, honey, there is no...

There's only one. It's a yes or no. Get the deed! If the deed is not yours, the house is not yours. You haven't got... Real estate doesn't transact on a handshake, son. Go get the deed signed. Now.

Or don't move in this house. This is family crap that's getting ready to go sideways, buddy. You're going to have a problem here. Get the deed in your name. There is no sort of kind of in real estate. That's not how it works. You're going to find out the hard way. 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 ramsesolutions.com today to sign up for our newsletter.

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