The Ramsey Show - App - They Fought Debt and Cancer at the Same Time! (Hour 3)

Episode Date: September 23, 2019

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Live from the headquarters of Ramsey Solutions, broadcasting from the Dollar Car Rental Studios, it's the Dave Ramsey Show, where debt is dumb, cash is king, and the paid-off home mortgage has taken the place of the BMW as the status symbol of choice. I'm Dave Ramsey, your host. This is your show. Thank you for joining us. Open phones at 888-825-5225. Josh starts us off this hour in Richmond, Virginia. Hey, Josh, welcome to the Dave Ramsey Show.

Hey, Dave, how's it going? Better than I deserve. What's up? So I'll try to give you the back story. My wife and I just got married in May. When we got married, we kind of put our debts together and figured out that we had a lot more debt than we thought. And I'm calling specifically about one debt because it's our car, which is about half of the debt.

And I wanted to know if we should sell it or we should keep it because we're upside down on it. So how much debt have you got total? Around $81,000. You have a $40,000 car debt. Yes, sir. On what kind of car? It's a 2017 Buick LaCrosse.

What's it worth? KBB says $24. Good Lord. How are you so far upside down? Rolled negative equity into the deal? No. So it just depreciated. We bought it new, which was a huge mistake.

But it kind of... You sure you owe $40? It's $36 specifically. But still, it's a lot upside down 36 is the actual payoff you got that recently yes like today i made a car payment today okay when uh um when did you buy the car um i think it was january of this year went down down $12,000 in nine months? Yeah, I've looked at KBB probably once a day. Are you looking at trade-in or private sale? No, that's private sale. Trading's even more ridiculous. Trading's like $18,000 or something crazy. Wow. I teach you to never

buy a new car unless you're rich. Okay. Unbelievable. Yeah, stupid tax for sure. So what's your household income? Around $100,000. Okay. Yeah, I would sell this car just because it sucks. Yeah. It's horrible. I mean, there's nothing in this story that makes me anything but want to throw up. Right?

Yeah, I mean, same here. But we were talking to our, uh, financial advisor and he was, so our plan, me and my wife plan was to sell her car and my car. Um, cause her car is worth about 12. So I could cover the negative equity and just lop off around 36, $37,000 debt, like two transactions.

Um, and then we could try to cashflow another car around six or seven something reliable since we both drive exactly exactly get you a couple three thousand dollar cars that you pay cash for and then work your way out of debt and then go buy another car yeah and your financial advisor doesn't like that no because he says that we should be focusing on the credit cards because they're 20% and 30%, and the car loan is only $5,000. Well, you'll be able to when you get rid of these car payments. And when you get rid of the financial advisor, you'll have a better plan because he sucks too.

Okay. Yeah. Well, then I also wanted to ask you about cash loan to car. Me and my wife are both small business owners, so our income is a little irregular, and we're going to what we would call a slow season from about December until next spring because we both are in the wedding industry. How much money can you make this fall? Can you get this done this fall? Get you two $3,000 cars?

Yeah, we could probably do that. Okay. Because by this time next year, you're done. If you make this move, you're done by this time next year. Interest rates are irrelevant. That's why you need to get a new financial advisor, because you're going to do this so fast that the interest rates are not, they don't matter here.

What matters here is you've gotten stuck into a mud hole, and you've got to climb out of that mud hole. And it looks like a buick yeah yeah and that's what i want to do because i just wanted to do whatever could get us out quickest regardless of what's happening by the end of this month have two three thousand dollar cars or one three thousand dollar car by the end of the next month have another three thousand dollar car before the slow season starts and be done with both of these cars. Sell them as quick as you can. Cool.

Okay, yeah, that makes total sense. Yeah, and then you've got cash flow coming out your ears because you make good money. You just have this car disaster on your hands, and then you cut up the credit cards, of course, and, of course, you're going to plow right through this other $40,000 worth of debt. You can do that in a year if you've got no debt except this, right? Yes, sir. That's it.

Yeah. I wasn't kidding. By this time next year, you're debt-free if you make this move. Because the cash flow implications of this ridiculous car payment on $40,000, because you've got, what, a $750, $800 car payment? It's like $600 in insurance, of course, in ridiculous money, too. Yeah, and it's going down $1,000 plus a month in value. Yeah.

Holding on to that would be called bad financial advice. Okay. Right? Think about it. I think you've got good instincts. If I'm you, I'm trusting your instincts. Personally, if I were in your shoes, my recommendation would be doing what we're talking about and getting some different financial advice.

Thanks for the call, man. We appreciate it. Open phones at 888-825-5225. Jeremy's on Twitter. I just turned 25 last month, and I opened a Roth IRA this morning. Single, no kids, no debt. Is my next move to save to buy a house? Yeah, that'd be great.

Nothing wrong with that at all there is no requirement to buy a house you know super fast it's okay if you want to wait a year um a lot of people get married in their 20s it's not a requirement it's just an occurrence and so if you're dating someone seriously or you're thinking that that's in your future somehow or another if you are a proclaimed bachelor that you are going to be that way for the next five years fine buy a house it's cool the only warning i've got for you is when you buy a house while you're dating someone, when you get married, you will discover you have bought the wrong house. She will want a different one. And that's not a bad thing.

It's a normal thing, but it's just a thing. And so, you know, sometimes it's not so, but most of the time she kind of wants her house, not your old house kind of thing. So, you know, there's no rush here. It's a good thing to own real estate and own your own home over the scope of your life. It is a bad thing to buy a house that you turn around and need to sell very quickly. That's a good way to lose money. So make sure you're in a stable situation where you're going to stay in that house three to five years in your mind. So are you still going to be there when you're 30?

If that's the case, then yeah, save up for a house. Buy a house. If not, if you're not sure because things are kind of in flux and a lot of stuff going on in your life,'re 25 years old then just pile up some money and get ready to buy a house when things stabilize there is no i just feel like i'm wasting money well you are but you're not because you buy stuff that goes down you know that you have to sell and lose money on that's wasting money too so it's okay to have a little patience and just rent for a little while. Rent inexpensively. Don't spend a bunch of money on rent, but you know, that's the way to do it. Just take your time in this process. This is the Dave Ramsey Show. Are high health care costs getting you down?

Are you confused trying to navigate your options? Do you wish you could find an affordable, biblical solution to your health care costs? Based on New Testament principles, Christian Health Care Ministries, or CHM, helps Christian families, churches, and ministries join together as the body of Christ to share their major health care costs. Christian Health Care Ministries is the original health cost-sharing ministry. A Better Business Bureau-accredited organization, CHM members share to pay each other's medical bills. It's not insurance. It's Christians financially and

spiritually supporting each other. It's what Christian Healthcare Ministries has done for over 35 years, and our members have shared over $2.5 billion in medical bills. To learn more, visit chministries.org. That's chministries.org. Christian Healthcare Ministries is a proud sponsor of Dave Ramsey Live Events. chministries.org. Phoenix, Arizona is calling. Damien and Ronda are with us. Hi, guys. How are you? We're good. How are you doing, Dave? Better than I

deserve. I see on my screen you're debt-free. Congrats. How much have you paid off? We paid off $64,112 in 14 months. Love it. And your range of income during that time? We started at $130,000 and we're about at $164,000 right now. Nice income. What do you guys do for a living? I am a correctional officer for the state of California. I'm a commercial truck driver. Okay.

For the state of California, you live in Phoenix? I do. It's a little crazy. I work for the state of California. I've been there for almost 19 years and um we decided to move it's a two-hour commute but i stay there when i work and um i'm there for three days and i'm home for four days oh okay a little crazy but um just trying to get to the 20-year mark or something or what pretty much exactly okay. Okay. All right. Cool.

Well, cool. What kind of debt was this $64,000? About $2,700 was the rest of my car. $7,000 was three credit cards we had, and $54,000 was Damien's student loan. Sally Mae kicked the old woman out. Sally Mae had to go. She's gone. Give her ev eviction notice put her on the street what's your degree in damien business all right very good cool so how long you two been married uh it would be 11 years 11 years in november so what happened 14 months ago? Well, approximately 16 months ago, my husband was

driving. He was at work and he's been listening to your radio station. And I was almost ready to finish paying off my car. And I wanted to lease another one because or at least one because, you know, I wanted a nice car. So Damien's telling me about this guy named Dave Ramsey, and I listen to him. I'm like, yeah, okay, whatever. Finally, you were on. He said, hey, turn on 92.3. Dave's on.

I listened, and pretty much I was hooked after that. We sat down. We went over a budget, had some arguments over arguments over budget over money but we got it together what was the uh what was the biggest budget fight you had um at the time we had two different um bank accounts and um i just wanted everything to be in one bank account, and we fought over that a little bit, but then we got it together, and that was pretty much it. I handled everything financially, and I set up the EveryDollar, which is amazing, and it was game on after that, Dave, I'm telling you.

We were fired up. It was like a game to us. Very cool. That's fun. Good for you. Yeah. What do you tell people that Keita... We tell everybody about it.

What do you tell people that Keita getting out of debt is? Just working together, a budget, communication. That will be my thing, communication. And just working together and being intentional with your money, the big thing, being intentional with your money, knowing where your money goes. Yeah, that's a big deal. Wow, way to go. Thank you so much for your ministry.

Thank you for everything you do. The people in the front, the people in the back, you guys are amazing. And I went to a conference out here and it changed my life so i just want to thank you for everything that you do and helping people like us to get out of debt so thank you dave ramsey i appreciate it i'm proud of you you're a hero you guys did great we just showed you how you're the one bothered to go do it not everybody does that not everybody follows you so you guys now you changed your whole life have you ever been debt free in your entire marriage uh no no no she talked me into getting my first credit

card years ago but uh thanks yeah other than that we've been pretty good yeah well thank goodness that great radio station that phoenix radio Station is one of the top stations in our whole network. They do a great job. Yeah, they're wonderful. Very cool. Congratulations, you guys. We're proud of you. How does it feel to not have any payments but a house payment?

It's awesome. It's a relief. It's a big stress reliever, I'll tell you that. For sure. Well, I'll tell you what. We're going to give you a copy of Chris Hogan's retire-inspired book, and that's the next chapter in your story to not only be debt-free but now to also become millionaires and outrageously generous along the way.

That's the whole process. This is just one chapter. Here we go. It's game on. Still doing it. Still going. Damien and Aranda in Phoenix, Arizona, $64,000 paid off in 14 months, making $130,000 to $164,000. Count it down. Let's hear a debt-free scream.

To God be the glory. Three, two, one. We're cat free! There it is. I love it. Game on, baby. Game on. Oh, man.

Thank you. Congratulations, you guys. Very proud of you. Melissa's in Sacramento. Hi, Melissa. How are you? Hey, Dave. Thanks so much for taking my call of you. Melissa's in Sacramento. Hi, Melissa. How are you? Hey, Dave. Thanks so much for taking my call.

Sure. What's up? I'm a single, full-time working mom. Just completed FPU this past March. Eyeball deep in Baby Step 2. Got great support. I've got a dear friend who's a fantastic accountability partner. My son is, even went to some of the FPU classes with me. So I've got great support. 95% of the time there,

Dave, I'm there. I'm intentional. I'm on it. I'm gazelle. But then there's that 5%, man, where I start playing the I deserve, oh, poor me. It's all on me, and I should go buy a new jacket. And I'm just wondering if you have any tips, any strategies, when my mind's in that place, that I can just bring it back to where it needs to be. How much debt you got? I started out with $18,000 and I'm down to a little over $10,000. Way to go. Way to go. And what's your income? What's your income? Sorry? What's your income? 50 000 a year okay well i can think of three things that come to mind um the first one is uh welcome to the human race sometimes we all feel that way

you know yeah i teach this stuff every day and i get that i deserve itis sometimes we all have that feeling especially in a whole culture full of entitled snowflakes, right? I mean, they're all around us, right? They feel like they were born on third base and feel like they hit a triple. We feel like we deserve something we don't deserve. That's just part of being who we are in America right now. So that just makes you normal. That doesn't mean it causes you to win and doesn't mean you don't need to fight back against it because that isn't how you paid off half of your debt almost yeah it was

by being intense it wasn't by being entitled right so you you intellectually know that but first i just want to say that's just kind of normal anybody that stays 100 gazelle intense all the time 24 7 is on drugs i mean you know you got every body has some kind of let down some time you know regardless of how strong you are how much energy you have or whatever else so second thing though is i'd put a big thermometer on your refrigerator because you need to remind yourself how far you've come and you don't want to have to go back i don't and going back is buying a jacket you can't afford it it takes It causes that thermometer to go the wrong direction, right? I mean, if you've got that thermometer and you walk through the kitchen,

it's like 8,000 out of 18 is gone every day when you open up the refrigerator door. It's a reminder of that. And then you mark down some more, and you mark down some more as you go. Sharon and I needed to be reminded how far we had come. That kept our hope meter up. And then the next thing is to have accountability, which you have. And, I mean, the 12-steppers do that. If somebody's a drunk and they've been dry for two months, they think about having a drink,

what do they do? They call their sponsor, and their sponsor chews them out. No, you don't be a drunk. You're not going in that bar. And they talk them off the ledge. You need people in your corner that love you like that. And then lastly, put yourself a big picture of your why somewhere. Why is it you're changing your life? What's your why? What's your reason for doing this? Remember that and then it makes it worth it. Thank you. In the lobby of Ramsey Solutions, Jason and Brittany are with us.

Hey, guys. How are you? Hi, Dave. Hey, Dave. We're better than we deserve. I love it. Welcome. Where do you guys live?

Phoenix, Arizona. Oh, fun. How much debt have you guys paid off? We paid off $95,300 in 15 months. Way to go. That's two Phoenix debt-free screams in a row. The last one by five of you guys in person. That's right.

Very cool. What's your range of income? Base was about $120,000. All said and done, we had about $165,000 for the year. Cool. What do you all do for a living? I'm a paramedic supervisor. And I work in corporate wellness.

Good. Good for you guys. Great. So what kind of debt was the $95,000? What do you people buy? It'd be easier to tell you what the debt didn't include. We had some cars in there, had a motorcycle, some student loans for her graduate school. Credit cards.

Credit cards, just consumer. Random stuff through the years. You were normal. We were normal. We had a couple years worth of medical expenses. She was diagnosed with cancer throughout the process of our journey. How are you doing? I'm great now.

I'm done with treatment, done with surgery. I'm all in the clear. Hey, praise God. That's awesome. Yep. So we had several thousand of medical expenses with that and then just general consumer being normalness. Yeah.

Wow. Man. Yeah, you just kind of bought stuff and bought stuff. And then 15 months ago, something happened. What happened? Well, we'd heard about you through some friends, some friends that I work with. Hi, Mike and Chrissy. Thanks for introducing us to Dave. I was at the bookstore and just looking for a book to buy and came across the Total Money Makeover

and brought it home and read it and just kind of liked what I read and got her to read it. Yeah, I told him if he read it and liked it and didn't get bored with it, then I would read it. And so we were locked in at that point. It was probably the first book that I'd read in well over 15 years. And you read it fast. I read it fast. It latched me in and I really enjoyed it and we've been listening to you ever since.

We went to the Smart Conference out in Phoenix last year, so that kind of kept us motivated because that was a couple months into the process for us. Yeah, to go the pep rally oh it was very much so motivating it does that's cool and smart conference is pep rally on steroids because it's all day long yeah yep yeah way to go you guys so the book and the smart conference and here you are huh pretty much yeah wow so what's the secret what do you tell people when you how'd you do that you pay off 95 000 in 15 months what do you do to get out of that well when you, how'd you do that? You pay off $95,000 in 15 months. What do you do to get out of that? Well, so for us, we had to do a budget.

We never really budgeted our money, and we were just careless with it. So once we figured out what we were spending money on, it was really disgusting in some areas. Yeah, it was. Like, how could we spend so much money on groceries for the two of us? So we got into the budget and just realized how much money we had left over and what we could do with it and how quickly we could pay the debt off. Very good. Yeah. There's that moment where you go, where's this all going?

Are we this bad? Yeah, we had that moment. Yeah. It's like you do feel like you got a raise and like we got to be more responsible. Yeah. And there's that. That's cool. What else?

What else got you out of debt? Just communicating and being on the same page and having the goals of wanting to not be forced to work until we're 70 years old. And once we got ourselves in that mindset and realized where our money was going, it was pretty easy to get gazelle intense and just pay it off. How long ago were you cancer free? Recently. I finished chemo just this last fall finished radiation in january you've been doing this while yeah during all of it um and i had my last surgery in may oh my gosh so yeah let's just like two big challenges on top of each other 12 of the 15 months and we're her going through cancer so about three months into it yeah and it was just

motivating because we didn't want to have piles and piles of medical debt just sitting there we knew that now for years ahead of me i'm gonna meet my out-of-pocket max all the time so we're prepared for i mean you're fighting cancer how i mean during that 12 14 months how many times did you just want to go ah let's just wait on this i'm gonna just work on the cancer thing i mean it would have been real easy to claim victim status and go i got cancer i'm gonna just work on the cancer thing i mean it would have been real easy to claim victim status and go i got cancer i'm not screwing with this yeah that's true but um i don't know it didn't occur to you not really i'm a fighter i just wanted to push through it was kind of a nice distraction to read the books oh that's at home not really feeling that great yeah that's

fair and say i gotta i got a different kind of goal while I'm, you know, I'm letting my body fight this. And so I'm going to fight the money piece. That makes sense. Okay, I'll go with that. Because, I mean, I'm such a wuss, a hangnail. I'll be in intensive care whining, you know. So I can't imagine fighting through chemo and fighting through getting out of debt. You guys are heroes, man.

You're a warrior, girl. I'll tell you, that's amazing. Very, very cool. So now you're cancer-free and debt-free. That's right. This is like a double dip. Yeah. This is pretty cool.

How old are you? I'm 31. I'm 30. Wow. What kind of cancer? Breast cancer. Okay. Wow.

Yeah. Wow. Touchdown. Well done. Well done. Good job, you guys. Thanks. So how's it feel now? It feels awesome. Yeah, it's amazing. It's a Well done. Well done. Good job, you guys. So how's it feel now?

Feels awesome. Yeah, it's amazing. It's a weight lifted off our shoulders. We don't have to worry about checking our balances every month when it comes time to pay bills. And it's one less thing to worry about. And it's really an awesome feeling. Yeah. And in the beginning, it seemed so overwhelming to pay off that much money. And I thought, gosh, we're never going to get to Dave Ramsey's studio and do our debt-free scream.

It's going to be 2023 by the time that happens. We figured you'd be retired before. I'm not going to retire, so it's okay. I'm going to keep going. It helped a lot throughout it. We sold so much stuff, the dogs thought they were next. I actually sold our house and moved and sold a motorcycle and sold a car. What did the motorcycle sell for?

I think it was for like $3,500. That actually went towards finishing our Baby Step 3. Oh. So that didn't actually go to the debt, but it did help seal up Baby Step 3 for us. How much did the car sell for? $4,000. It was a Corvette. An old one.

Yeah. Okay. An old one in not very good shape for four grand it ran it ran it was decent shape but uh it was one of those things i've heard you talk a lot about people trying to sell the cars and it's just not moving at the price you got listed so you got to change the price to uh to adjust what people are looking for so that's why i learned that from you so i could have gotten more if i waited out but you you're uh you're teaching so i was like i need to just get rid of it yeah i don't really want to sell it but i need to act like i really want to sell it pretty much yeah i hear you good for you guys oh and we led our first fpu class this year as well

oh wow yeah well thank you thank you for coordinating a class very fun good job well we're proud of you congratulations well done you two impressive couple very impressive appreciate it we've got a copy of chris hogan's book for you retire inspired and that is the next chapter in your story to be millionaires can't wait and outrageously generous as you go along. Yep, plan on it. Well done. Good stuff. Jason and Brittany, Phoenix, Arizona, $95,000 paid off, cancer-free, 15 months, making $120,000 to $165,000. Count it down. Let's hear a debt-free scream. Three, two, one.

We're debt-free! We're debt-free! Yeah! Woo! Oh, my gosh. Please don't call me up after that one, whining about how hard it is. She beats cancer and debt while you're whining. So just shut up, okay?

Wow! Oh, man. She beats cancer and debt while you're whining. So just shut up, okay? Wow. Oh, man. Our question of the day comes from blinds.com. 100% satisfaction guarantee means even if you mismeasure or pick the wrong color, they'll remake your blinds for free. You get free samples, free shipping, and with the new promos, you save even more. Always use the promo code Ramsey. It's magic.

Yeah. Today's question comes from JohnSY. It's magic. Yeah. Today's question goes from John in Idaho. I recently flipped my first house and made $142,000 profit. Whoa! I lived in the house for five years, so I won't be charged capital gains. Boy, how there's always that. Not exactly flipping a house, but I would like to be able to access the funds to purchase another home six months to a year from now. Or can I safely park my profit and maximize any interest?

Well, you can't do both. You've got to decide which one you want to do. Do you want to maximize your rate of return, or do you want to safely park it? I personally would recommend you safely park it and don't make any interest. That's called a money market account, and you're going to make 1%. If you want to put some of it into a mutual fund, you can. You might make a few thousand dollars, but you might lose a few thousand dollars. If you want to take that chance, then you can park some of it in a mutual fund. But that short a term, I personally would tell you to go with a money market account. This is

not the time to maximize. This is the time to protect. Personal opinion, but you ask me. This is the Dave Ramsey Show. Our Scripture of the Day, Deuteronomy 31.8 It is the Lord who goes before you. He will be with you. He will not fail you or forsake you. Do not fear or be dismayed. Bernard Malamud said, Without heroes, we are all plain people and don't know how far we can go.

This is The Dave Ramsey Show. We're glad you're here. You're our hero. We know how far we can go because we see how far some of you go. We see what you do. We see the level of sacrifice. We see you live like no one else so that later you can live and give like no one else. Mandy is with us in Columbia.

Hi, Mandy. How are you? Hi, I'm doing good, Dave. How are you doing? Better than I deserve. What's up? Yes, you are, sir. I am a very excited first-time homebuyer.

Me and my husband, we are done with Baby Step 3. We are out of debt, and we've got a 20% down payment on a house that we just ran into a mortgage preapproval issue. So it was actually pretty, we were kind of excited about it. Our mortgage company wasn't excited at first. We had no credit when we came in because we are so out of debt. They were able to manually underwrite the loan, so we got pre-approved. We found a gorgeous condo that was actually foreclosed on, but you can't tell it from the looks of it. And we put in an offer to later find out that the

mortgage, the lender won't do the loan because 75% of the property is commercial, and they won't do a mortgage for something that is more than 25% commercial. Yeah, that's a normal Fannie Mae guideline. Commercial, you mean? Yeah. It's rentals. The condo's largely rentals. You don't want this condo anyway. Well, this condo, everything on floor one, two, and three are all businesses.

The top floor is all residential. And where we are... The residential has a high percentage of rentals, doesn't it? Yeah, possibly up there. I'm not sure. Yeah. Because 75% of the building is income-producing, not residents. Mm-hmm. That's what they're saying. Yeah. is income producing, not residence. That's what they're saying.

Yeah. So this is largely investor-owned property. It's not. Well, no, 75% are businesses. And then the top floor, it could be rentals. It could be owned property. Yeah, but what I'm saying is 75% of the square footage of this condominium total is not owner-occupied. Yes. So how many floors is this thing?

Four floors. Oh, and two are business? Three are businesses. Oh, well, that settles it right there then. Okay, so that's 75% right there. Three are commercial businesses like retail yes okay yeah you're not going to get a mortgage on this really yeah not not a traditional mortgage i mean you might get a car you might get a credit union or somebody

lend it but fannie mae's not gonna do that we that's what we were wondering about my husband's a state employee so there's a state employee credit union. Here's your problem. When you get ready to sell it, most people can't get a mortgage to buy it. Right. And so your exit strategy, and everyone exits a piece of real estate, whether or not you're alive we don't know, but after your death somebody's got to sell this someday,

and this wasn't thought through very well because this developer didn't think it through very well or didn't know the basic guidelines, because you're not going to have any buyers, is what I'm saying. I wouldn't buy it. Wow. Sorry to put Debbie Downer here, but you see the reason? Because you've got no buyers when you get ready to sell it, which means it's not going to go up in value. It would be very difficult to unload,

and you're in really good financial shape. You know, I mean, you've got to have somebody that can go get a weird mortgage, not a traditional mortgage. You can't do an FHA. You can't do a Fannie Mae. You can't do a VA. And so this condo project does not qualify for traditional mortgages, which means only people with cash or

weird mortgage abilities are your buyers. And so you just cut your buyers down 90%. That's one of the reasons this got foreclosed on, one of the reasons you're getting a good deal on it. I did not consider that. Your buyer market. Now, if you did buy it, what is it appraised for and what are you buying it for? It's appraised for $235, and we would be buying it for $189. Okay.

Yeah, I'd want to buy it 50 cents on the dollar. And who owns it? Mortgage company? A bank, yeah. Let them finance it. What do you mean by that? Well, they can carry the paper. They're a bank.

They can make the mortgage. Owner financing. At 50 cents on the dollar. Otherwise, I'd walk. Okay. Listen, you're going to give somebody a bargain when you go out the back side you might as well get a bargain going in the front side how would i phrase that when tell them that there are no buyers for stuff that has no financing and so i talked to my financial coach and he says since we can't get financing,

that nobody's going to be able to get financing. And so this thing just went down in value. I'm only willing to pay 50 cents on the dollar. So what is that, $130,000, $120,000, okay? And I want you to carry the note on a 15-year fixed rate, four percent loan no closing costs okay and if they don't do it and they won't do it because they're stupid then walk just be ready to walk be ready to walk away emotionally because i listen i the set the first home i ever bought i got a deal on it because it was ugly as sin i mean this thing was ugly to the bone ugly it sat up on a hill with a front opening garage door and i was walking across in front of the garage door and an ice storm one night and i fell all the way to the street because it was straight

off this freaking cliff and it was you ever seen one of those ugly houses perched up on a hill that should not have been built that way you know i'm talking about yep yes i do i got a deal on that house because it was so ugly and you know what when i sold it they got a deal on that house because it was so ugly it's the same thing you know what i'm saying I did it on my very first home ever, 30-something years ago. And that's exactly what you're going to get into here. It's kind of like if you buy a flood car, these cars that have been flooded in the hurricanes or whatever, and you can buy them with a flood title. You ever heard of that?

Yeah, I've heard of that. Yeah, it's the same thing. You can get a deal on it going in, but when you get ready to sell it, it's got a flood title. You're going to give somebody a deal. So you've got to drive the wheels off of it, you know, and keep it. And you need to get a bargain on it, buying it, because you're going to be stuck in it otherwise. So that's the way I would look at this. I'd look at it as an opportunity to get a serious bargain on this,

because I'm going to give up a serious bargain going out, and I'd make them finance it. They're a bank. It's what they do. They're stuck in it. They can turn it into payments, or they can sit sit on it and i'll go look for something else um but i'm perfectly good from a consumer this is this something you're excited about i'm throwing a wet blanket on your sweet little condo deal that you loved i understand all that but i'm just trying to help you i don't want i don't want you to get call me back three years from now and go, I'm just completely stuck. So there you go. Hey, good

question. Thank you for joining us. It's an interesting discussion. Sometimes something's a bargain for all the wrong reasons. And then, you know, if you get ready to sell that item, it's going to be a bargain for all the wrong reasons. You can think of a lot of things that are that way, that there's a way to get into it. There's a way to get a deal on something. But then when you get ready to sell it someday, you're going to be offering it at a serious deal. That's how this works. So that's what we're talking about. And, again, like a flood car is fine.

If you're buying a flood car as, for instance, a work truck, and you're going to run the wheels off the thing, you're running a heat and air company or you're a plumber or something like that, and you're going to run the wheels off of it and you can buy it at 50 cents on the dollar, I mean, it may give you some problems from the flood. But if you have it checked out and it's all working and everything, that's fine. You just got to deal on the truck. But you got to run it into the ground because when you get ready to sell it, nobody's going to want it because it's got a flood title on it.

It's very difficult to move that salvage title. And that's what you're looking at. It's been totaled by the flood already. I get that it's mechanically sound. I get that this condo is fine. But it's the marketplace on the back end that you've got to keep into consideration. That puts this hour of the Dave Ramsey Show in the books. We'll be back with you before you know it.

In the meantime, remember, there's ultimately only one way to financial peace, and that's to walk daily with the Prince of Peace, Christ Jesus. This is James Childs, producer of The Dave Ramsey Show. Once again, you made The Dave Ramsey Show one of the top five most downloaded podcasts last year. To get your daily dose of motivation and inspiration, subscribe today.