The Ramsey Show - App - The Best Calls of the Year So Far (Part 3) (Hour 1)

Episode Date: September 28, 2023

МУЗЫКАЛЬНАЯ ЗАСТАВКА МУЗЫКАЛЬНАЯ ЗАСТАВКА 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. Dr. John Deloney, Ramsey personality, is my co-host today, number one best-selling author and host of The Dr. John Deloney Show. If you've not checked it out, it's on all things mental health and relationships and quite a lot of stuff going on on this podcast.

You should check it out. It's a lot of fun, and it's one of our more popular things we're doing around Ramsey networks these days, so be sure you do. Phone number here, 888-825-5225. Leon is in Philadelphia. Hi, Leon. Welcome to the Ramsey Show. Hi, Dave. Hi, John. How y'all doing? Better than we deserve. What's up? Hey, I was calling today to see if we should allow finances to stop my wedding plans. That's a broad question. Can you tell us more? Yeah, absolutely. So my

fiance and I have been together for a long time. She's desired to get married more than I have or more time than I have. It took our return to faith and my fiance's bravery during the pandemic to really open my eyes to marriage. Our opinions diverge in one area, and that's our approach to marriage. I'm more pragmatic with my approach, and she's more idealistic. In preparation to get married, I did some math and realized that in getting married, some of our expenses will increase significantly, in particular our health coverage. My fiancé qualifies for no-cost medical insurance right now through the state, and in the event that we do get married

or when we do get married that that expense will increase significantly it'll go from about a hundred and four dollars a month to about five hundred and ten dollars a month my employer funded health insurance to add a spouse that it jumped significantly. What's your household income? We're at about $62,000 a year. You're not honestly asking us if her becoming your wife is worth $4,800 a year. Well, it's a little more than that.

Yeah, it might be $4,814. Come on, super nerd. Really? really well the deductibles will also double you're killing me listen hey here's the deal no you should not get married you should not no absolutely not if you're going to nickel and dime your relationship with this woman that has has suggested she wants to spend the rest of her life with you even the way you said i came around to marriage because i saw she was brave and um something that like i want the hounds of hell holding you back from wanting to be with this person forever and forty eight hundred dollars dude i've seen, I've seen guys making stupid financial moves because they were so head over heels they were going to marry somebody that I had to say, whoa, whoa, slow down. $4,800 sounds like you are looking for a mathematical reason to not do this is what it sounds like. It isn't.

So we have a child together. Okay. And we kind of went, went about our, our family a little bit backwards. Um, so we purchased the house, we have a family together and it, it really is our plan to be a single, single income household, um, with, with me working and, and she's staying home and helping to raise our son with me. So it's not just the... I know that if we pursued plans in a more traditional way... Leon, how old are you?

Forty. Are your mom and dad still married? No. Nasty divorce? No, I was young. Hurt you, though? Yeah, yeah, definitely did. And I do think it had an impact on my view of marriage in terms of, you know, what it

And so you're looking for a way to intellectualize a spiritual and emotional decision. Yes. and John's point is the best thing you can do, and it will actually cause the math to work out. There's an odd piece of irony here, but the best thing you can do is go all in. It's time to get off the ladder. Time to stop painting. Painter, get off the ladder.

It's time to do it, dude. You have a baby. You own a house. In every form, you're married, except in your emotions where you have finally let go of that last little piece of control and that last little hurt little boy named Leon from his mom and dad's thing. And it scared him and it hurt him. And that doesn't make you bad. It doesn't make you weak. It just makes you a human. And it's time to let go of all that and marry this woman and enjoy

her and enjoy life together and enjoy a wonderful future and lean into the emotional relational spiritual part of that and then there is actual data that's called the marriage advantage that that shows statistically that married couples end up with a higher probability of wealth and net worth and a higher net worth than singles particularly singles shacked up and so the data is actually there research is actually there to back this up that's right and it goes back to you and i were having a conversation earlier um on another show about um sharon's work at home allowed i mean whether it's somebody contributing directly cash into the account or whether somebody's creating a platform for uh somebody else to to repel off the side into um man it it works out that way it just does

yeah you're you're gonna you're gonna prosper more than the supposed loss that you have identified yeah and mathematically that's going to end up being true um i can't i can't it's it's um difficult to put actual actual examples in place today but i do know that the research says that and i do know that my 30 plus years of doing this helping people with money shows that a fully committed couple in a marriage that have shared goals and vision and are both working towards the same thing and um one of them's neither one of them are dead weight. They both are contributors to the discussion, contributors to the dream, that there's just a, you know, the career is better, the health is better,

the obesity is lower, the blood pressure is lower, everything. And all of that, by the way, ends up affecting your dollars and cents. Absolutely. So there's a whole thing there. And then, of course, this idea that two horses pulling together in tandem, one plus one equals more than two, and we all know that's called synergy. Yeah, that's right. And if you notice, if you listen back to the call, Dave,

it's an old counselor trick, but when somebody comes and asks, like, I'm kind of stuck, I don't know if I should do this. I should do this. If you'll just say, well, go ahead and break up. Sometimes they'll exhale, and sometimes they'll come back and be like, I'm not breaking up, and there's your answer, right? And so there's a push. It's just an old, then you're not ready to get married.

And if the first impulse is, yes, I am, then there. Now you've intellectualized it. You need to get on that track. And if it's, you're right, I don't need to get married. And if the first impulse is, yes, I am, then there. Now you've intellectualized it. You need to get on that track. And if it's, you're right, I don't need to get married, then you've answered your own question. Yeah. But you also have, by asking these questions, Leon, you've identified some things you all have the opportunity to work on some healing in. Absolutely. That'll release a lot of positive stuff in your relationships and in your money.

This is The Ramsey Show. Ken Coleman, Ramsey Personality, is my co-host today. Thank you for joining us. Open phones at 888-825-5225. Stephanie is with us in Virginia. Hi, Stephanie. How are you? I'm good.

How are you? Better than I deserve. How can I help? So my father-in-law, he's like 77, 78. He was worried that they have his father's house up in the mountains, um, where we are. And he was nervous about trying to keep it in the family. So instead of doing what you said, you know, you do put it, put it in a trust, trust and

do it that way. Or, um, even in a will, he decided to quit claim it to my husband, which is fine. But then he put my seven-year-old on the d2 so i don't know anything about repercussions for my seven-year-old or how to even get him off it since he is now on it um and we do have family members in there renting it too so this has just kind of made a big mess while we're trying because we're still in baby step two while we're trying to do all of this well it doesn't affect you because you're not having to write any checks regarding it right no no it was it was paid off it was owned between him and his sisters

and all of his sisters gave him their rights to it yeah i'm just more worried about my seven-year-old. No, you're not. You're just pissed at your father-in-law because he throws his weight around. It's completely inappropriate. What he did was completely inappropriate. You don't do that to somebody's kid without talking to the people and getting approval. This guy just thinks he can do whatever he wants to do.

What we thought he was going to do was just put my husband on it, which we agreed to. And then all of a sudden, he put my son on it, too, and we had no idea. It's completely inappropriate. I mean, anybody call the old man and go, you're not supposed to do this crap? We told him that this was a shock to us and that this is not really what we wanted. Yeah. And he's just kind of in his way. So I don't know.

I don't know that it matters. I don't know that it affects the kid. The only way I can see it affecting the kid is if a renter fell and broke their face and sued the owner yeah and your kid ends up with a half million dollar judgment on him yeah because your drunk relative fell off the porch and broke their face you know yeah i mean that's why i was worried about just repercussions of my stem you know it's also the repercussions of your husband yeah yeah same thing because you guys you guys now have a property in your name and by the way uh when the taxes come to who's paying the taxes so this happened in like

like october last year my father-in-law helped us pay the taxes because again we still get a tax from you pay the taxes yeah he. He pays the taxes. So it all comes out of his account. What happens, the rent goes into a checking account he's on, and so the taxes come out of that account. These people just make up crap, don't they? They do. In all financial steps, this is like it throws for a loop because, like I said, we're still in baby step two.

We're getting out of debt, and it gave us a headache. Yeah, it doesn us for a loop because, like I said, we're still on baby step two. We're getting out of debt, and this just gave us a headache. Yeah, it doesn't cost you anything until somebody sues you, yeah. Or until the property taxes go unpaid and the state of Virginia decides to come after the owner. Yeah, yeah. And because we didn't know if we needed a real estate lawyer, and trying to save up for that right now while we're paying off debt is not really that most ideal thing. To help get my son off of it, we didn't know if we needed a real estate lawyer, and trying to save up for that right now while we're paying off debt is not really that most ideal thing. To help get my son off of it,

we didn't know if that's what we were supposed to do or what. Yeah, eventually. I don't know that there's anything big hurry. I mean, the only thing I can think of is just the liability. It's just such a toxic family that I don't really know how to guard against this level of stupidity. Yeah, because the right thing to do would have been a trust, like what you talk about, would have been doing it as a trust, correct? Yeah, maybe. I'm not even sure any of that needs to happen.

But, I mean, you've got broke people in debt. We give them a house, which is a liability instead of a blessing. And so I don't understand. And you don't even ask people, but I just kind of tell them whatever you're going to do, and then you do it. And so, oh, my gosh, it's just wrong. So, yeah, if it was my kid, I would get a real estate attorney. And probably you're the parent, you are the guardian. You can sign on behalf of a seven-year-old and sign a quitclaim deed back to your husband

for the seven-year-old's interest and get it out of his name, yeah. Who are the owners in this deal? Is it all of them, essentially? No, apparently her husband. Your husband is the only owner, right? And your kid. Yeah, so as of right now, yes,

because my father-in-law was the only owner, was the only owner. And a quit claim deed is not even a good deed. I mean, that's not – all you're doing is – I can give you a quit claim deed on that same property. Because all a quit claim deed says is I quit claiming whatever interests I have. And so you don't even have a good transferable deed. You're probably going to have trouble when you try to sell it someday. so but yeah i'd get i'd get the kid's name off of it it could just be a a simple um you know your kid doesn't quit claim to his father now so now all the whole thing is in your husband's name at that point but i just think you guys got other problems that are

way beyond the issue you're and i was wondering if they should sell the house if it had enough equity in it to help their their situation well they got a relative yeah i mean that'd be interesting if you're gonna put this family's all about power moves so if it's if he owns it if her husband owns it i was wondering hey sell it take the profits and put it towards baby step two solve the whole problem yes or no i i'm not sure you can get i mean i'm not sure his title's clean that's what you're okay this is this is a weird deal yeah this is hillbilly estate planning right here i mean that's what this is it's just really really bad okay so oh gosh i just i've seen this my whole life everybody around me does stuff like this and they just make up stuff and think that that because in their head this is the way it works right it's actually the way it works and

then then don't don't talk to anybody about it just go do whatever the heck you want to do to your seven-year-old grandson without talking to his parents oh my god it's just you know jeez so i don't know i i guess, yeah, I guess I would. The first thing you want to do is get a kid's name off of it. Then the second thing you want to do is you want to decide how much you want to stay in it and whether you want to undo all this or not. Because I'm not sure. It was meant to be a blessing, at least in the old man's head it's a blessing, but I'm not sure it's a blessing.

All right, Andrew's in California. Hi, Andrew, what's up? Yes, I was wondering, should I cancel the extended warranty and service contract on my car to get a partial refund to use towards other debts? Yes. Doesn't matter what the vehicle is? Doesn't matter. Doesn't matter. Extended warranties statistically are 12% of the cost covers the actual probability of the breakdown.

The other 88% are marketing fees and commissions and profit to the extended warranty company. So you have almost no coverage. Extended warranties are a complete screw job. Even if it's from the actual manufacturer? Doesn't change the numbers. Okay. And the service contract as well? Doesn't change the numbers. Okay. And the service contract as well?

Doesn't change the numbers. Got it. Yeah. What you're actually getting for what you're paying is about a dime on the dollar. And so, you know, in other words, on average, the things it covers, were you to cover them yourself with your emergency fund you would spend 12 cents out of every dollar to do that so if on average uh if the extended warranty is a thousand dollars then uh 120 will cover what it covers on average now on average means some things

are high some vehicles might have higher some might have lower your vehicle might have be the one that breaks down and mine might be the one that gets zero or vice versa and but the average is going to be 120 per thousand 12 that's the coverages and that's what all the data coming from the auto industry is so boys and girls when you're buying a car the number one profit center on the car lot is the 12 by 12 room where the finance manager lives they make more money on putting you into debt and selling the debt contract back to ford motor credit or back to your local bank and putting you into one of these stupid butt extended warranties than they do on the sale of the vehicle the number two profit center is the garage way down the list on the car lot of where they actually make money is the selling of the car the actual profit on

the car not much it's the way they get you into finances and into extended warranties and into the garage where they make all their money. This is The Ramsey Show. Rachel Cruz, Ramsey personality, is my co-host today. Hey, guys, we get people that tune into the show every day. You can even answer the questions faster than we can. Fairly predictable answers. I mean, you can. And you're still stressed out about money.

Your money's still not working. How is that? Well, because knowing what to do is way different than actually doing it. I know not to eat a box of chocolate donuts. It's important, though, that i don't do it otherwise i get larger and larger versions of dave and the proven way to change your behavior with money is the same thing it's you have to get plugged into a program financial peace university has helped over 10 million people get out of debt, become wealthy, and change their family trees.

The class is the difference between trying to get in shape by yourself or reading a book on fitness versus actually going for a walk and backing off from the donuts. Hey, that's why this class has worked for millions. After nine weeks, you'll never handle money the same way again, and you'll make progress faster than ever. Don't just listen to this stuff, this show. Do it. Join a Financial Peace University class at ramsaysolutions.com slash FPU. ramsaysolutions.com slash Financial Peace University FPU.

Ryan's in Tampa. Hey, Ryan, welcome to The Ramsey Show. Hi, Dave and Rachel. Thank you for taking my call. Sure. What's up? So my question is, should I sell my house, should my wife and I sell our house to pay off our debt?

And a little bit of back story is we're a family of five, and we're currently living in a 2-1. 2-1? Is that what you said? Two bedroom, one bath? Yes, we're in a 2-1. And we have $83,000 worth of debt, $130,000 in equity. So our thought process is if we sell our house, we need, we need a bigger house. We've got three kids. So, um, and I thought processes, if we sell our house, we can pay off the debt, have enough money for our emergency fund. Cause we're currently in baby step two and then grant for a couple of years and just do baby step threeb how long you've been married uh eight eight years how long you've

been in this house three years how long you've been working this plan this ramsey stuff this ramsey stuff i've been dave ish for well we've been dave ish for a couple years no when did you start actually getting so serious that you're willing to sell your house oh a couple weeks ago okay how much you guys make a year ryan uh 80 000 80 000 okay um okay i i'm i'm nervous that the reason you want to sell the house is more because you don't like the house not necessarily to change the behavior to get out of debt yeah so like this would be like a silver bullet that would just like fix it all but what i would be worried about ryan is like have you guys fixed your behavior like have you have you guys created you don't have felt the

sacrifice of new habits and changed that course? You don't have the track record of new habits. That's the danger. And if you wave this magic wand and your debt is gone and you don't change your habits and you stay ish, because two whole weeks you've been engaged. I mean, come on. Really? I mean, the danger is you go back to ish and then you're going to be a renter that's broke.

Right. So, yes, I would do your plan. But, you know, you and your wife are going to have to put the kids to bed and take each other's hands and look at the other one deeply in the eyes and say, if we don't follow plan exactly i'm gonna kill you i mean really i mean we have to do this it has to get like down in your soul like ah because if you if you don't this is a really bad idea because you're gonna get stuck in renter land right yeah we don't want that no we don't want that uh so mathematically you do get a better place i did what you're doing sharon and i did it when uh rachel was a kid we different reasons we sold a home in up in nashville the school system sucked and we were driving 45 minutes one way twice a day so several hours on the road to put kids in private schools several thousand dollars a year per kid and i'm like god

this is nuts i can sell this move to a different county where the public schools are excellent rent clear up everything and i don't have the drive and i don't have the private school bill and so that's what we did but it was part of and so everything worked good but it's also part of a change we lived we rented this crappy rental for two years my wife will still tell you stories about how bad she hated that house uh and then we were able to buy a house but it was it was part of a plan it wasn't a trap door escape mechanism and then i didn't deal with the deal with right so you you gotta promise you your wife's gotta promise you your wife's gotta promise her you gotta promise her that that we're going to lean in and stop the foolishness if you go through with this.

I like your plan other than that. So Rachel's right. Okay. So if I give you a Financial Peace University to get you guys going, will you promise me both of you watch every stinking lesson, every minute of every lesson, and you have a conversation with the coordinator and with the class and you join the group in Financial peace if you promise me you'll do all that i'll give it to you free yes i do absolutely okay and you and your wife yeah now because that if you'll get in that group you'll join this group of people that give you positive peer pressure to not do stupid or ish

anymore and that's that's what i'm afraid for you because you don't have a track record if you told me you've been doing this six or eight months and you'd already paid off thirty thousand dollars worth of debt making 80 and you guys were on a tight budget and you and your wife were close-knit and unified and we were getting after it it'd make this call instant yep to go do what you're talking about yeah and that's always the danger with you know we even get people that get an inheritance or that, you know, some type of large amount of money comes into their possession and they're able, which is a blessing to be able to knock the debt out.

But again, Ryan, like you buckling down and really promising and you guys are in a hard season with three little kids and, you know, it's a lot. And so you can't allow the stress of life, the exhaustion that you guys feel to get you back in habits that got you here in the first place. So truly staying the course is what is going to be, what's going to be huge. And it's exciting, right? And on the flip side, it's like, if that part is true, then you guys are going to be really far ahead in these steps. And you guys are going to be really far ahead in these steps, and you guys are going to feel a lot of freedom, which is really great.

And rent the cheapest thing you can rent that is a bigger, nicer house. It's not a two-one with five people. But don't go rent the Taj Mahal because every dollar you spend on rent is going to slow down your savings for purchase later. So the house we rented, I just explained to you, my wife was not happy with it. It was not glamorous. The only thing it did was meet the goal of getting our other house sold and getting in the correct county where the kids could be in school system.

And we didn't have the private school bill, and we didn't have the drive anymore. So we got quality of life. We got money back, our our rent was not that high um even back in the day but yeah uh back then you know when dinosaurs roamed the earth you could get cheap rent but yeah no i mean it's it's a it's a thing it's a process that you're you're resetting your mind in this thing and it's just very important that you do this right. So, you know, getting the habit patterns that are, you know, I made a comment about donuts earlier,

and it's exactly true, though, on that. The correlation with fitness is, I mean, fitness is not a one-time event. It's a daily event of nutrition and caloric intake and calorie burned with exercise. And choices that you make. And choices. With everything, yeah. Controlling the person in your mirror. You know, I mean, it's incremental.

People who are vastly successful at their marriage didn't send flowers one time to their wife. They every day, every week do something in their marriage didn't send flowers one time to their wife they every day every week do something in their marriage it's not a singular event you can't go be a jerk for forever and then go on one cruise and she's happy825-5225 jade washall ramsey personality is my co-host today so let's talk flips for a second all right since um gymnastics real estate gymnastics, doing flips, is a big deal. So I did my first flip in 1983. The year before I was born. So that would be 30 years ago, right? Or 40 years ago?

40 years ago. Yeah. The first flip I did, I was so stupid that I thought that everything that was a foreclosure was a good buy. That if it said foreclosure, that it must be cheap. I equated foreclosure with cheap, which sometimes is true. I think most people do. But I bought a HUD repo. They used to put them in the newspaper and you would bid on them, FHA foreclosures, HUD repo. You had a newspaper as a bid process. I turned in the bid.

I talked a banker into financing 100% of it because I had a real estate degree. I was a real estate guy. I knew all about real estate, and I was 23 years old, so I was a freaking genius. Okay? And so I bought this house. I knew everything about the house before I bought it. I'd gone through it with a fine-tooth comb. Okay. In those days, we used copper pipes for the water supply, and the house had been sitting

empty, and so the copper pipes had frozen and split and so it was pretty much a sprinkler system underneath and you had to go through and redo the copper pipes and I knew how to do that because I'd done renovations work in high school working for my dad in the real estate business so I crawled around on my little back under there with a little torch and fixed all of spliced all these pipes fixed all, fixed all the pipes, put new carpet in it, went in on the weekends and Sharon and I repainted it. Okay. And I kept all of my receipts for what I spent and paid myself zero labor.

Okay. That's how stupid I was. And we put the house on the market and it sold in five weeks. So I'm a huge success. Net, net, net. When I got done, I added up what we had in it, what we paid for the closing cost, what we paid on the closing cost on the resale, what actual, after every dollar is recorded, what actual net profit did I make?

$842. You're an overnight success. I'm now game on. Can't nobody tell you obviously good at this which means that i probably paid myself what a dollar an hour labor yeah well you know i didn't get paid for the labor the 842 was with this free labor i had i had slave labor me yeah you and my wife and my wife yeah so we're in there so that was job one okay the next one i i bought and i thought well i'm not buying houses in bad neighborhoods because i don't

know anything about all that stuff i'll get in trouble but this guy called me up and he had a house and he sold it to me for seven thousand dollars and i ran the what i thought was the estimate and i had three contractors look at it and give us bids. And the first contractor wanted a $1,500 deposit up front, never saw him again. Right. Went to his trailer and knocked on the door in the trailer park trying to get my $1,500. I wonder if I didn't get shot. By the way, he had already left and gone to Kalamazoo or wherever it is contractors go when they take your $1,500 because you're an idiot and you give it to them up front.

Moron. Yeah. And so then I started on the second contractor, the third contractor, the fourth contractor. And when I finished with that property, I had already done a whole bunch of other deals by then, like 60 or 80 more deals oh my gosh by the time i finished that property i ended up only losing fourteen thousand dollars on a house i paid seven thousand for four and a half years later oh my gosh this is how dumb i am so if that wait if that that's number two had been your first house i would have been out of business

yeah i would have been nate yeah you would have been like i'm never doing my wife would have been going yeah instead i managed to delay the pain on that one meanwhile doing a whole bunch of others and i made a lot of money yeah i made a lot of money i ended up in my life i have owned over 2 000 pieces of real estate i flipped real estate as my job for four years. I was using 90-day notes to fix them and flip them. And I started buying property at 70 cents on the dollar minus repairs. Wow. So $100,000 property, I buy it for 70 minus the repairs. That was the formula. And that means I bought a lot of foreclosures, a lot of estates. I did some historic rehabs.

We've done a bazillion deals i can walk around nashville and say i did that house that house that house that house 30 40 years later i want to take that tour and uh now you don't want to be in that neighborhood probably but um okay some of those neighborhoods are now gentrified but um gotcha yeah they've come back a long way from seven thousand dollars now it's 260 to live that street, and it's a great property. Not really. Still in Dodge City. You shoot up and down the street, it's Dodge City.

I don't care whether it's gentrified or not. So anyway, you're killing me here. But yeah, so this is my real estate career. So when I get aggravated at the idiots on Tic Tac, it's because I was one of them. Yeah. Okay? idiots on tic-tac it's because i was one of them yeah okay i was doing the exact same stuff and i can smell neophyte beginner a mile away yeah because i was i was i was 23 i was going to get rich in real estate i made 842 minus the cost of my labor i lost 14 000 and then i went on to make

money and make money i started figuring it out that i had to, you know, I had to, I had to be tough with contractors. I had to get with good ones and I, and I had to have be tough on schedules. You had to be finished. And then you put the house on the market aggressively and you flip it. You don't keep it ever. And, uh, you know, not like her, we're not in the rental business and then i then i ended up buying a bunch of property i buy packages of houses i buy 10 or 20 at once and they were rental portfolio and i lost every bit of that when i went bankrupt in uh in 1988 five years later i now had four million dollars worth of real estate when we went in that's a fast one in a bankruptcy yeah that's a whirlwind it was I worked all the time and I was really really

good at doing deals but I'm saying to go from zero to hero or hero to zero and back zero to hero to zero that's a phd in dumb is what that is yeah and so but i got a lifetime of learning there and it led me to have a bullcrap meter that is very sensitive to real estate people and uh so you know when you guys are talking about real estate real estate real estate real estate because real estate's real hot right right it's a popular fad topic again everybody wants to do a real estate deal everybody wants to do a flip everybody wants to own a real estate and your renters will pay your rent. Renters will pay the payment. You don't worry about it. It says people who've never had renters.

That's a dumb butt statement. Okay. Let me tell you. Let me teach you some words. Chapter 13 bankruptcy for I will pay you when by God I want to. Okay. And let me tell you what you can do with a tenant who's in a bankruptcy. Nothing.

Wow. You have a stay on you, which is an injunction. A federal court has looked at you like a dog and said, stay. And as a creditor, if you even call your tenant, you can be held in contempt of court. Wow. You cannot talk to them. You cannot do anything except everything they wish as far as repairs while they pay zero rent. Wow.

Because you stay, dog, stay. Yeah, you learn this when you've had a couple of them. So when renters are going to pay the payment and it's a free house and I have a jet airplane and you're just an idiot. You're just an idiot on TikTok. That's what you are. It's unbelievable. Real estate is great but you there's a people factor with the contractors there's a people factor with the renters there's a people factor when i overestimate how what the uh how how much money i'm going to

make i underestimate the contractor the time it's going to take to run it i i i think it's going to sell faster than it is because i'm always a glass half full guy and right before that's when you get your freaking nose bloodied slow down people pay cash for this stuff and run it like a business not like a get rich quick scheme it's your only hope of doing making money in real estate that is not a poor man's game i think that's the part that anybody can take away from this is it would be one thing dave i feel like if you were sitting here going i tried that real estate thing and this is what happens and it was just like this negative story but then you go on and figure out

the best way to do this the smarter way to do it the way that actually works and that's what you're teaching it's not like you're saying stay stay away from real estate, never do it. There's just a right and a wrong way to do it. I was 24 years old. I had a million dollar net worth in 1984, and I made $250,000 that year. That's $20,000 a month in 1984. Okay? In 1988, my taxable income was $6,000. Wow.

All I did was sell property in bankruptcy. This is The Ramsey Show. Dave here. You can find all of our shows with the Ramsey Network app on your smartphone. It's the only place to listen to the entire back catalog of episodes. Download the Ramsey Network app in your favorite app store today.