The Ramsey Show - App - What To Do When the Renters Don’t Pay (Hour 3)

Episode Date: April 24, 2023

Dave Ramsey & Jade Warshaw answer your questions and discuss: "Should I invest less to pay more on my house?" "Renters stopped paying rent; is this our fault?" Saving up for a rental property, "Should I drop out of college to take a job?" "My boss offered to sell me the company" Have a question for the show? Call 888-825-5225 Weekdays from 2-5pm ET Want a plan for your money? Find out where to start: https://bit.ly/3cEP4n6 Listen to all The Ramsey Network podcasts: https://bit.ly/3GxiXm6 Interested in advertising on The Ramsey Show? https://ter.li/s64ye3 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. Jade Walshaw, Ramsey Personality, is my co-host today. The phone number here is 888-825-5225. That's 888-825-5225. Starting this hour off is Lisa in Ogden, Utah.

Hi, Lisa. Welcome to The Ramsey Show. Hi. Thank you. I'm so excited to get your advice. I've been binge watching shows trying to get an answer to my question. Now I get to talk to you. We'll try. How can we help? All right. 14 years ago, I joined the workforce after a divorce and took financial peace that was offered through my company. And I've been playing with it off and on and should have stuck with it because three years ago I married an amazing man and we bought a home. And I've been slamming money down into our 401k to retire in five years and just realized I probably shouldn't be doing that and pay the house off.

Okay. Do you have any other debt? We have no debt, $20,000 in an emergency fund, $100,000 IRA, $420,000 in a 401k. Our principal payment is only $1,065 on the home. So I was wondering, I've been putting in 25% in the 401k, 13% in company stock. And I was thinking maybe I better just move all that and start paying the house. Well, yeah. I mean, the way we would teach it is to follow the baby steps in order.

So you're above and beyond the 15% that we would say for baby step four. And I'm guessing baby step five isn't a deal saving for a kid's college. So after that, we're on to baby step six. And in this case, we would chunk all of that extra money onto the mortgage because we want you to have a paid off home. And then after that, think about all of the money that you could invest into retirement after the home is paid off. So what does he make? He's at $55,000 and I'm at $115,000. $1'm at 115 115 did you say yes okay so one question is i only have five years left i don't contribute i don't care okay here's what you you have more than that if

you keep working um if you're going to retire in five years that's different. But you've got $420,000 in there. When you get to retirement age, how old are you? 62. Okay. All right. So I do have the $100,000 IRA we could take out. I get it. Well, and you've got $420,000 as well. So you've got $520,000.

What's the balance on the mortgage? $226,000. Okay. With $170,000 income. So here's the thing. We know when you get to your golden years, if we named that 70 or whatever, that you want to have a paid-for house and a large nest egg both. Agreed?

Yes. We don't want to have a large nest egg and a big mortgage, and we don't want to have a paid-for house and no egg we want both agreed yeah okay and what you're doing now is you're only working on one which is kind of what your your alarm system went off wisely so so we would tell you to put 15 percent of your income of 170 000 into retirement plans of some kind in good mutual funds. Everything above that, and so that's what? That's about $25,000 a year. Okay?

Everything above that. Yeah, it could be six or seven. Yeah. Everything above that goes on the mortgage until the mortgage is paid off, which tells me your mortgage is going to be paid off in about three or four years. You probably still work a year or two after that and max out everything. But here's the trick. If your $520,000 is invested in good mutual funds and it's averaging 10% or more, it will double without any contribution to it, any additional contribution,

it will double about every seven years. So you said you're 62, right? Yes. So you're 520 becomes 1,040,000 when you're 69, if you don't add anything to it. Wow. And I'm telling you to continue to add 15% to it and still get your house paid off in about three or four years.

And then it'll double again. That million will be $2 million seven years after that, which will be 76 years old. And all this time your house is being paid for. Oh, and by the way, we've got more money than that because you've also added over this next five years at least 15% of $170,000. So you have done a great job.

All we're doing is just tuning just a little bit, just tweaking the sound just a little so it sounds a little different, okay? Okay, great. I will do it. Yeah, you're 90% on path. All we're doing is a slight change to get both things accomplished in a sooner time. Does that make sense? Fun.

I have one more question about life insurance real quick. All right. Obviously, term insurance goes up as you age. All insurance goes up as you age. I'm paying $100 a month premium for a $200,000 policy. My husband's paying about $50,000 for a $100,000 policy. Do we need life insurance? If he dies today, are you okay financially?

Eh, I'd like for you to get that house paid off. So continue paying the life insurance. I'd probably keep it a couple more years. If you die today, is he okay? Yeah, you can make it. You got a half a million dollars, right? And an income and some equity. So you'll make it.

You're not going to starve to death. You're not going to be a starving widow on the corner, right? But by the way, $100,000 or $200,000, I'm not going to stop that from happening anyway. That's not a lot of money. But the good news is it's about the balance of the mortgage. So I might keep it for two more years until we get that mortgage paid way down. But when that mortgage is starting to reach zero, I'm dumping it. Great idea.

Awesome. I'm very excited. Thank you so much. Thank you for calling in. We appreciate getting to tune up on an old FPU grad. See, you can fall off the wagon as long as you're holding on to the end. That's right. I mean, nobody's perfect for all the time.

Sometimes you need a good kick in the butt to get yourself back on the path. Yeah. It happens. She didn't even need that. Just a slight course correction. Just a little staff. Here's the thing. You know what the moral of that story is?

Some people are doing – it's interesting. There's probably several types of people, but two come to mind right now some people are doing better than they think they're doing yes and others aren't doing nearly as good as they think they're doing that's the other time that's true so that's true there's a little bit of both there's probably a third or fourth type but at least those two come to mind right now that's what's going on no she's doing a good job yeah and uh you know a late in life uh marriage or remarriage uh it's got its own issues own problems own processes and they've still navigated that so very well done very very well done all right open phones here if you want

to talk about your life and your money the phone number is 888-825-5225. By the way, if you would help us out, we would appreciate you. If you like the show, subscribe. Click the subscribe or follow button. Leave a review, a five-star review. Mama said if you ain't got nothing nice to say, don't say nothing at all. I know, that's right. Leave us a five-star review. And share.

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Catherine's with us in Baltimore, Maryland. Hi, Catherine. Welcome to The Ramsey Show. Hi, Dave. Hey, what's up? Well, so we started attacking our debt snowball like in earnest two months ago. And to do that, we're selling a rental property my husband brought into our marriage. The equity would wipe out a big chunk of our debt. The issue is we let the renters know at the beginning of this month we weren't going to renew their lease and they've stopped all communications. They've

got two months before the lease terminates because they get 90 days notice. And our lawyer let us know that really the only thing we can do is file for a formal eviction, but it could take three weeks to four months and the lease just might expire before it goes through. And so I guess my question really is, do we go forward with an eviction process in the fees since we're planning to sell the property anyway? we eat the lost payments i think my biggest concern is that like if the renters are already acting in bad faith that if we bring legal action they'll not only stop paying rent but they'll like trash the place and then we have to pay repairs and stuff um so how much is the monthly task it It's like $1,500. Okay. And so they're going to be $4,500 into you by the time this is up?

Yeah. And how much of a deposit do you have? We have one month's $1,500 deposit. So they're going to be $3,000 into you? Yeah. Okay. The lawyer that you talked to, how many evictions has he done this year?

Two, which is why he said that like... He's done two this year? Well, he's saying that he's had two that have finished proceedings start to finish this year, which is why because when we asked how long it would take, he said it would go three weeks to four months. So he does this regularly but is not successful? I don't know. We asked the attorney who helped us drop the lease paperwork. So I don't know that he does a lot of eviction.

I think he just generally does rental property like general law. That's kind of what I was thinking. So what we need is a lawyer who makes his living or her living doing evictions. Okay. They're a little meaner than the one you talked to. Okay. You need one that is a little nastier. that's going to put the fear of God in said renter, because said renter has decided they're a thief, because they got their little girl feelings hurt, little boy feelings hurt. And said renter is not owning up to a contract, and contract law is still good even in Maryland. Yeah.

I guess my question is just like, is it worth it for like $3,000? Yes. Okay. Do not let them steal from you. Because here's the thing. If you continue to play from a hand of weakness, they're going to completely strip this house. Okay. Instead, if you knock the crap out of them, they're going to be afraid of you, which is

the way this ought to be. I'm not very scary, Dave. I'm not going to lie. But your lawyer can be. I think you hire the hit job here. Call the lawyer. You contract out the hit. Metaphorically speaking.

Metaphorically speaking, yeah. If you're going to hire a lawyer that does evictions, they have to know how to get all up in somebody's face. It's part of the process. Because what you've got is you've got adults that are throwing a little hissy fit over here, and we're going to have to teach them how the law works. Okay. And you really, if you do not, if you just ignore this as an act of weakness or an act of

avoid confrontation you're gonna get what you do you're gonna get they're gonna take you out they're gonna keep your three thousand dollars they're probably gonna sue you for the deposit just because they think they can because these people are not bright. Don't let them try it. Do not let them try it, Catherine. Yeah. It is worth $1,000 to give them a hard time. Oh, and by the way, your lease probably says you get to add that to their bill. Yeah. Probably says attorney's fees are added to the bill.

Yeah. Most good leases do in most states. So this is not vengeance this is i don't do good with adults having hissy fits okay and just going i'm just gonna walk on the contract just because i don't like it well i don't care you little wuss you get to pay your rent you signed up big girls and big boy paperwork and so this is how this works god that makes me mad i don't like thieves yeah this is a thief yeah yeah yeah so i think i you do what you want to do i've been doing rental property a long long time we're never mean to people we're never unkind to people but we do have lawyers do it

sure if they are misbehaving and stealing stuff and, you know, they decide they're going to do drugs and, you know, the dadgum drug enforcement surrounding my house that I own because I got a druggie in there, we're not going to do this. This is not what we do. So you get to move, and we're going to have somebody help you do that since you don't have sense enough to do it on your own and do this with class. They signed a contract that allows you to end it at 90 days from today all you did was do

what you said you were going to do on the paperwork you've done nothing wrong you were not unkind to them you did not violate their rights you didn't do anything wrong they're just having a fit and they hadn't paid their bill yeah yeah so you really really really do need to lean on them i don't know if you follow it all the way through or not but you at least need to represent that you're going to because that puts them back on their heels where right now you're on your heels and you're the one in the right so i don't like dealing with lawyers i don't like dealing with any of this stuff i don't i don't choose the fight but these people chose to not pay their bill and sometimes we have to have a judge remind people how things work that's why we have judges and i hate it i don't want to do it i don't ever seek that out

right but oh my gosh it is a matter of posturing and your your guy you talk to is a wuss. You don't need to use him. Yeah, she needs to get more of a pit bull. Sometimes you need to hire an attorney that you don't even like. Brett's with us in Atlanta. Hey, Brett, welcome to The Ramsey Show. Hey, Dave. Hey, Jade. I love your show.

Listen to your YouTube channel almost daily. So thank you for taking my call. Thanks. How can we help? Yeah. So I plan on buying another investment property with cash within the next year or two. So I've been saving up. So right now I have $83,000 cash currently sitting in a high yield savings account at 4%. Very cool. I plan on saving another $50,000 over the next few months.

Good for you. So with that said, thank you. With that said, I want to make sure I am maximizing the return with the cash that I have just sitting there. I'm used to investing. I'm used to getting a mortgage and doing investment property, so I'm doing it a little bit different this time. So I had a lot of cash. What is the best thing to do with it? Right now, 4% is's good but it's not

great i don't want to invest it because i'm going to use it within the next year or two so what should i do four percent's a parking fee you're parking the money if you invest the money and don't park it you make more but you take more risk as you just said so if i'm you i'm parking it because this the money that you're going to have for this is not coming from your return on investment it's coming from you putting money in the account correct you're the secret sauce not the investment if you do if you make 10 rather than four percent over two months that you know that amounts to like three percent difference it's not it's nothing i mean three percent one hundred thousand dollars this does not two thousand dollars you're

not within two thousand dollars of doing your deal here your deal is a hundred fifty thousand dollar deal you follow me yeah so your return on investment here is not going to make this happen or keep this from happening. I wouldn't. I would just leave it in the pocket if I were in your shoes. Got it. Cool. You understand why I'm doing that? Yes, I do.

Yeah. So, Brett, people that think like you and I think because we're math nerds. We look for something to fix the investment, and sometimes the thing that fixes the investment is you. You're the one that's doing the investing. You're the one putting the money in the account, not the investment. And so don't try to fix it. Just pile up money. Go do it.

Pile up money. Go do it. This is The Ramsey Show. show jade washall ramsey personality is my co-host today thank you for joining us america hey if you are enjoying this show and we're a help to you you can uh pay us back because it's free by the way so thank you for doing that but you you can help us. In other words, we would appreciate the help. There's a couple things you can do. One is if you are a YouTube or a podcast follower, you can subscribe. Hit the follow button, the subscribe button.

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So thank you very much. You troll somewhere else. But leave us a nice review. Leave us a follow, a subscribe. And the other thing you can do is you can share the show maybe uh you are listening on talk radio tell someone where you listen you're watching us on tbn tell someone that you see us there you are listening on a podcast you can share that with a shareable link uh same thing with youtube you can share that with a shareable link share the show with someone review the show and uh subscribe and follow to the show how you do that and talk radio

it's it's an old thing it's called the memory button on your radio and you memorize the station it's some of you don't even know how to do that anymore but but uh if you're if you're a radio person then that you can just reserve the station as a memory, number one on your radio. And then you can know to tune in this time when you're hearing us by pushing that number one button right there on your radio. That's a throwback, dude. That is a throwback. It's really. Let me tell you, when we first started in radio, that scan button, you could get a scan and it would jump from station to station to station until you heard something you half liked.

That was our best promotional tool for a while random people stopping with the scan button wow don't get that much anymore all right let's go to hunter in tucson hi hunter welcome to the ramsey show hey dave how are you doing better than i deserve how can we help so i'm currently 20 years old i'm going to school for cybersecurity, no debt, cars paid off and everything. And my uncle works at a tech company and they have an opening for an IT security job. Now, I'm not sure if I were to get hired, should I withdraw from school and work full time there? Or if I were were hired if they could work around my school finish my degree i'm currently a freshman have you found out if they would be willing to work around your degree well that's the thing i'm not quite sure yet if i were to get hired and i asked

and they said yes that's wondering if i should your uncle own the company no No, he works. He's a contractor. Oh, he works as a contractor. Okay. Yes. Okay. If they will pay for your school and let you do school, I would do it. But no, you're 20 years old. Go get a degree in cybersecurity. That's going to be a gold mine.

It's already a gold mine. Big time need. Six jobs for every person applying out there and the pay is going up every second while i was talking your income went up and um potentially but you you're you're not there you're not valuable yet you don't know squat yet um you you know a little bit of squat but you don't know full squat yet. So go ahead and work on. I don't know if you need a four-year degree, but you need the certifications, and I'd love for you to have some experience.

So ideal world is they pay for your education, they let you get it, and you work there and get paid too. Boy, just go do that for sure. But quit school cold with one year or a half a year under your belt and go be a security analyst. I'm hiring security analysts. I'm not hiring you. I don't believe you yet.

You follow me? Yes, sir. I don't mean that insulting. Well, he hasn't had any experience. He hasn't had any schooling yet. And so I'm not i'm not going to put the security of ramsey solutions network in your hands right so you know you need to you need to earn the chops to be able to do that and education will do that or experience

will do that or in the tech world a cert program a certifications program will do that i don't care but um i need to know that you know because i'm as an owner all i know is i can't spell it okay that's all i'm sure of but i know people try to crash it every day oh yeah and i know we got quite a little team of um anti-hackers around here security people who uh ward off the russian robots every day oh Oh, my God, they're real. And, yeah, it's the stuff that happened. But, yeah, yeah, so, dude, you're in an excellent field. Very good.

Brilliant choice of career. Stay with the career and do what it takes to get the chops, whether it's a long four-year degree, a certification program, or experience, or some combination of those three things. Four-year degrees in information systems are not as valuable these days as certifications and experience because by the time you finish the four-year degree, all the programming has changed. It moves at the speed of light.

It changes every second. Every time I buy a computer computer when we get it out of the box it's already obsolete it's just like oh that one's dead yeah they just hit they hit the red button and it no longer works i had an opening for the apple well it's now useless that's what it amounts to yeah so as soon as you do then there's something else that's better 30 seconds later and ai is going to help us accelerate every bit of that, right? Oh, my goodness. So here we go. Game on. Karen is in San Jose.

Hi, Karen. Welcome to the Ramsey Show. Hi. How are you? Better than we deserve. What's up? Okay. My husband and I are thinking about taking out a reverse mortgage on our home.

Please don't. Please don't. Okay. Okay. You want to know why? Yes. Very high fees, ridiculous interest rates. Yes.

It's $14,000 to get it, and $10.2 or $10.3 interest rate. Just almost like I knew what I was doing. Who figured? There you go. Right there. None of that. And I know it's debt. We know it's debt and we don't have any debt. It is. And your home is paid for.

No. We just had to have it appraised for the reverse mortgage and it came in at $2,000,000.3 Is it paid for? No. We owe $3,085,000. Oh, wow. What made you get to the point to where you were even

considering this? Because we didn't want to touch our retirement that's about a million two. Why? Because every time we take something out, we have to pay more taxes on it. And the taxes are getting to be a drain. It's about a thousand dollars a month. We pay quarterly taxes yeah so we thought we'd have what's in the house are you ready 81 and 84 don't let that scare you we're very very active i'm not i'm not i'm not scared of you at all karen okay here's the thing here's the thing don't let the tail wag the dog and when you make financial decisions based only on taxes and the rest of the deal sucks, that's the tail wagging the dog. Uh-huh. I hate taxes as bad as you do, but not bad enough to do something stupid.

And 10% and $14,000 is in the stupid zone. You've almost got your house paid for, and you've got a lot of peace around that. You don't have to worry about where you're going to live. You have a wonderful property in San Jose, freaking California. That's a wonderful real estate market. I mean, you've made so much money on this house while you've owned it. Please, just enjoy the ride. Okay.

And pay a little taxes and enjoy the ride okay so it's okay to take a little bit every now and then for uh like suppose the building needed to be painted it was fifteen thousand dollars you take it out of your retirement then you have to pay taxes on it if you if you do that and you add it all up how old do you have to live before you run out of money? What's your million two invested in? The portfolio? Yeah. Stocks? Okay, so what's it making?

Is it making 10 or 12 percent? No, we lost about 20 percent this last year. No, not this year. Not this year. Overall, what's it making? It was making about 7 to 8 percent. Okay. So let's pretend you had an

$80,000 a year income. Can you pay your taxes and paint your house? Yes. Because you do have an $80,000 a year. 8% of $100,000. And by the way, you'd have to live to $180,000 to outwork this formula. So you're okay.

Don't take out a reverse mortgage. They're bad, really bad. This is The Ramsey Show. Our Scripture of the Day, Ephesians 3, 20 and 21. Now to him who is able to do far more abundantly than all that we ask or think, according to the power at work within us, to him be the glory in the church and in Christ Jesus throughout all generations forever and ever. Amen. Dr. Mae Jemison, I don't know if I'm pronouncing that right,

the first African-American female astronaut said, never be limited by other people's limited imaginations. That's a good one. I like that. Open phones at 888-825-5225. Nick is in Kansas City. Hey, Nick, welcome to the Ramsey Show. Hello.

Hey, what's up? Well, I had kind of a weird question. Okay. So I've been working for my company for a pretty long time. I don't want to get real specific, but it's a construction company. And the owner of my company, I'm pretty high up on the chain. I'm basically running the place now. But he's offered to sell the company to me.

And I've talked to a few different people, and nobody really wants to talk to me about it. And I don't really understand why. I'm sorry. Talk to you about what? It seems like they only want to talk like I've talked to my banker. And he's like, I really can't help you unless I talk to him. I want to know what he wants. And I'm like, well, I don't really know how to facilitate my situation further

because I want to know more about the process. Your banker doesn't have to talk to him. That's absolute bull crap. Yeah. Your banker's blowing you off. Yeah. So I don't know. I i mean where do i need to go who do i need to talk to to get more information well we can talk about it a minute here um there there may be some uh uh some small business mentors in the area you may find someone in a construction company of similar size in another city

that you could call up and ask and just say, hey, we're similar size over here. This guy's talking about selling to me. Would you give me five minutes on the phone and talk to the owner of it and go, what would you do? And asks other people in the same industry, how much does he want for it? Well, I would think that the company is probably worth as a whole probably around six six million dollars why do you think that uh i've been working there a pretty long time and i know how much it's for us no that no you don't you just know what it makes

where did you where did you get that valuation i would say that there's probably about two million dollars worth of work on the books. I'd say within the assets of the company, I'd say there's probably $4 million. Okay. That's not how you value a company. Okay. Okay. There's three ways you can value a company.

One of them is the multiplier of your gross revenues, and that won't work in this situation. The second way you can value a company is a multiple, a cap rate on the actual net profit after all bills are paid, the actual net profit as a multiple, okay? It would either be four or five times that number, which would be a 20% or a 25% rate of return for the investor buying it, and you would not pay any more than a three or a five multiple of net profit in this case. The third way you can value it is book value, which is what happens if you close it and

you sell off the assets. But you don't add the assets to the income to create the value. Okay. You're doubling up the value then. So all the assets totaled up, the equipment, the inventory, that kind of stuff, what are the actual assets, the hard assets worth, do you think, roughly? You said $4 million, didn't you? I'd say the hard assets, all the equipment and everything, $2 million. Okay.

So that's what it's worth if you close it. He can get that just selling off the stuff. So usually book value is the bottom line cheapest price a business is worth. It's worth at least that, okay, because we can close it and do that then so it's probably really worth about four or five times the net profit not the gross not two million dollars on the books or four million dollars on the books of work because the work doesn't make profit all of it's not 100 profit right so and you probably don't know what the hardcore bottom line profit is, do you? No, that's pretty tight.

Yeah, that's on his tax return. Yeah, he's going to tell me that. Yeah, he's going to tell you that, or he's not going to sell you the company. Well, at some point, he's going to have to get a little deeper in conversation. You're going to have to get that number, or he's not going to buy it. No one's going to buy this company unless they get that number nobody right he can't sell it nobody i wouldn't touch it with a 10-foot pole and if he tells me it's not all on his tax returns that means he's a liar now i really don't trust him okay pretty nice guy so i don't care if he's a nice guy or not. Lots of nice guys lie on their taxes. So the thing is this, then, you guys are doing gross revenue,

how much construction work a year? Oh, man. You said you had $4 million on the books, right? Yeah. So are you doing $12 million a year? At least. Yeah. All right. And so if you're on a 10% margin, you're making $12 million a year? At least. Yeah. All right.

And so if you're on a 10% margin, you're making $1 million a year profit. I'm going to guess. Yeah. Okay. And if we did four times that, the building, the thing's worth $4 million, which if you've got assets of two, that's probably about right. Right. So if it's a million-dollar profit and we said 25% rate of return,

that's four times, so it would be worth about $4 million. You can't we said 25% rate of return, that's four times. So it would be worth about $4 million. You can't get close to $4 million yourself, can you? No. Okay, so here's how you're going to structure this. If you find all of this out and if you get down to the bottom of it and if it were $4 million, here's how you structure it without going to the stupid banker because apparently he's not going to be any help. No. structure it without going to the stupid banker because apparently he's not going to be any help um no what i what i would do is tell the owner let's say we find all of that out and my example turns out to be true it to so you and i can talk through it it may not be exactly that okay

but if you find out it's a million dollar profit so the thing's probably worth about four million and you agree on four million as a price if he wants six million he's overpriced okay but if he wants four million on a four on a one million dollar profit that's probably about right then you would say all right here's what i will do i will give you 100 of the profits after i pay myself my old salary and you keep paying yourself the old salary after you become the owner and you give him 100 of the profits until he gets his four million then if profits are down you're not bankrupt but if you go finance the stupid four million and oh wait a minute real estate slows down oh wait a minute the fed raises interest rates oh wait a minute biden drives

the economy in a ditch you're bankrupt because you got to pay payments whether they don't care if you're making a profit at the bank they want their money right so if you structure a deal based on profit goes to him he's going to get all his money in four years or less because if you get more profitable after he leaves you're going to still give him all the profit after you pay your thing until till you got him paid out at four million dollars the price doesn't change just the speed at which you give him his money's changes right that structure will get you through this deal brother without you getting your throat cut. But be careful. So that's a great, that's great for Nick, right?

Because he's not going into debt for it. Can you explain, Dave, is there a benefit for the current business owner to take a deal structured like that, as opposed to some guy who may have just gone to the bank? Well, number one, the likelihood of someone being able to go to the bank to buy that business without substantial assets is almost zero okay nick cannot bank that nick is an employee with no asset base true they're not going to give him a hundred percent financing on a construction company when he's never owned a construction company and he has nothing to put down that's not a bankable deal bank's going to

look at that and go no if they would do it they're stupid and they're good they're getting ready to go down with him that's right but they're not going to do it okay so the only person that's going to be a buyer for this is somebody like me if i wanted to buy a construction company i've got the money to buy that right then i'm not giving him four million dollars ah because you're a cash i'm going write a check and it's gonna be two million dollars ah i love this conversation that's how this works okay hey if you've got uh business questions i'm also hosting now the entree leadership podcast uh you can send them to entreeleadership.com slash ask and be a part of that podcast with your small business questions that puts us our the

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. Hey, what's up, guys? It's Jade. Look, if you like what you heard in this episode and want to know more about getting started on the Ramsey baby steps, go to ramseysolutions.com and click the get started button. We'll help you figure out the best next step for you based on your specific situation. That's ramseysolutions.com and click get started.