The Ramsey Show - App - You Get Dumb When You Get Desperate (Hour 1)

Episode Date: June 24, 2020

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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. My co-host today on the Dave Ramsey Show, Ramsey Personality, Dr. John Deloney. We are here to answer your questions about your life and about your money. Open phones at 888-825-5225. That's 888-825-5225. Julia's with us in Georgia.

Hi, Julia. Welcome to the Dave Ramsey Show. Hey, Dave. Thank you for taking my call. Sure. How can Julia. Welcome to the Dave Ramsey Show. Hey, Dave. Thank you for taking my call. Sure. How can Dr. John and I help? Okay. So I want to ask you about a scenario that we kind of are currently finding ourselves in with our house.

And a little bit of backstory. We bought a house in 2015, so we've had it for five years. We bought it for about $125. We currently owe $110. We bought it from people who had flipped the house, and they didn't exactly do a good job. They really only did cosmetic work. So we've had nothing to trouble, nothing but problems, lots of money that we've had to put into the house. We listed it for sale last year with an ELP agent, and we finally got a buyer. But when the inspection came back, it was pretty bad.

It pretty much failed. And so, you know, they backed out, and our agent suggested we take the house off the market at that time. So we really haven't done much since then. Now, while it's been off the market, we've had investors contact us, just kind of cold calling us, you know, and talk to us, ask us about the property, but they've been honest and they've said there's not enough equity, you know, for us to buy the property to get you out without negative us to do repairs and make a profit. But this most recent investor, this is kind of really what I wanted to talk about um so they

contacted us with a different scenario and it sounded good up until it didn't basically um they wanted to take over the property and they wanted to they said they would make the repairs you know they'd pay for them and then they would either rent the house until they recoup their money or they would sell it you know they'd make the profit whatever and then we'd either rent the house until they recouped their money or they would sell it, you know, and they'd make the profit, whatever, and then we'd be done. But the whole time they wanted to do that, they were going to keep the mortgage in our name. And so to me, that's a red flag. And they sent us a contract and we had our ELP agent review the contract that they sent over and he got with a lawyer um or an attorney and they both agreed that contract was just absolutely terrible um because essentially

what they were wanting to do was they were going to transfer the deed of the property into their name and keep the mortgage of the property in our name so i didn't know if you were familiar with those scenarios have you ever heard of that i mean yeah it comes off these uh it comes off these nothing down real estate weekend seminar crap okay and it won't work it'll blow up not only are you going to get screwed which you could already you already figured that out right but the other problem is this mortgages today all traditional standard conforming first mortgages have a due on sale clause in them. If you pull your deed out, a master deed for Fannie Mae, it's paragraph 17. That doesn't matter. But it says in there that if you transfer the property without the mortgage company's knowledge or permission,

they will call the entire loan due. When you don't pay it, they will foreclose on you that's what's going to happen yeah so you run yeah we did and you know they said all the right things and they said well the problem is the problem is is they're just stupid they're not crooked they're just stupid because they went to a weekend seminar you get screwed more by stupid people than you do on his actual con man because there's a lot of enthusiastic ignoramuses out there and that's why this guy is he went to a nothing down seminar over the weekend he paid three grand for it and this was one of the techniques that he was taught the form contract he used came out of his form book from his weekend seminar so he's not he's not a crook he's just dumb yeah well and that

that's fine you know we did we ran we told him no this is a terrible idea i know it's going to come back on me yeah you're going to have to just roll up your sleeves and get the work done to get the house ready to sell and get it turned but you you know you you used all the right steps you you dug in you did your due diligence. And you smelled a rat. And you kept sniffing until you found the rat. And it was a bad deal. And, you know, there's a process.

Good decision-making skills. High five. Well done. Because, you know, people that get – because usually you're a little bit desperate about this house. And usually about the time I get desperate is when I get dumb. Yeah, I quit listening to myself when I get desperate. Yeah. And that's easy to do in a situation because she feels trapped.

Right. When you feel trapped in anything, you start to flail around. And I have done some of the dumbest butt things I've ever done in my life that cost me so much money when I felt trapped, cornered, or something. Good for you for listening to your gut, even when it's hard. Yeah, that was very, very wise. The process you used, you sensed the thing. You recognized that other people with correct economics weren't willing to do the deal. And so this one had to be, you know, it sounds too good to be true.

It is. It is. You really, when in doubt, don't. I mean, you did all the cliches here well. And so proud of you. Very proud of you. But the sad news is you're going to roll up your sleeves. You're going to spend some money to get out of this property.

And the lesson you have learned with the purchase of this property is to do what the people trying to buy it from you were doing. And that's a good home inspection. Had you done that, you would have never bought this property, and you will never buy another property again without a home inspection because of this experience, and really no one should. You ought to get a home inspector to look at the property. Now, you can use common sense and not let them get you all emotional. I mean, one little gutter hanging down is not the end of the freaking world.

It's $200. Shut up. Close on the house, right? But if stuff's completely coming unraveled and the seller doesn't want to fix it then you've got the opportunity to walk away you were in this space in 0809 when the last time everyone was collectively desperate should people expect that over the next six months to a year somebody coming along to have some snake oil in a jar to say, hey, I know you've been out of work for six weeks, or I know that your mom's sick. Here's this product or that plan.

Yeah, I mean, if somebody's got a get-rich-quick thing that feels that way, it's easy, you know, and you're in a desperate situation, and they've got the vaccine vaccine no pun intended right for your situation will plead you know for your situation then then don't bite off on that and you know you got to look at that now real estate is going to be a lot different real estate in most markets especially states that have opened up like for instance tennessee right now hot i'm trying to buy a house it's real estate estate's white cot. Yeah, I talked to a guy in Dallas this weekend, just said it's out of its mind. Stuff is going crazy.

Yes. It's selling so fast. Anything goes on the market, it's gone. Because there was some pent-up demand. People didn't, you know, they sat in their homes, sheltered for a month, and all those people that would have bought in the month of April are now buying in June. And it's just completely sucked the inventory out of the market. There's an absorption rate that's unbelievable.

But you mentioned something a second ago, which was if two or three professionals say, we're not going to do this deal, the fourth one that comes slithering in, be wary. Yeah, I mean, they got, but we got an angle. We got an angle. Yeah, you got to have a little laugh with that. There's always that guy in high school, too. Yeah. Well, there is that.

That's another show. Dr. John Deloney with me as co-host today. This is The Dave Ramsey Show. we're all going through challenges and our lives have been impacted in ways we've never anticipated if we learned anything it's that change is constant and having a plan is crucial to our family's livelihood. This is why I talk about term life insurance every day. And for those of you that haven't taken care of this for your family, I'm not sure what you're waiting for. Hopefully recent events have opened your eyes and if you need some extra motivation, companies have started raising rates.

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Lisa's in Illinois. Hi, Lisa. Welcome to the Dave Ramsey Show. Hi, Dave. How are you doing? Better than I deserve. How can we help? So I am currently going into my junior year of college.

I just finished my associate's at a community college and I left debt-free. And so now I have been applying to schools and I've got accepted to Baylor University, Southern Methodist University in Texas Christian. They're all in Texas, obviously, just because I'm trying to leave Chicago, the very high tax state, and I'm tired of the cold weather. And so I'm trying to move to Texas and I just received my after financial aid on my tuition, which comes down to around $25,000, I want to say, out of pocket. And so I really just want to be financially smart about this decision because I was for my first two years. I really don't want to take out a loan, especially a private loan,

and leave with debt. At the same time, I do feel like I need to get my degree, and it's something that I want to do. Good for you. What are you studying? Finance with a minor in economics. Good for you. Okay. How old are you? I'm 20. Okay. Good. Very good. So classic rising junior. And so your parents live in Illinois? Yeah, I live with my single mother. Okay. And so where did you pick? I'm a lifetime Texan. Where did you pick up Baylor, SMU, and TCU?

In doing my application or? Like what made you select those three? Expensive schools. Those are three of the highest priced schools in a state full of extraordinary opportunities. And I've got friends at all three schools. They're great schools. They are really, really expensive. So where did you land on those three?

First, it was Baylor that I applied to. It really just came up on my screen. Of course, it's an advertisement. I looked into it. It's a Christian school. They say that they're unapologetically Christian, and I love that for someone who is Christian as well. And so that was huge for me. And then I was looking for business schools specifically that are really great. That's what led me to apply to SMU because their business

school is one of the best. And then as for TCU, same thing, Christian school. I realized after applying to all of them that they're private and very expensive. I did apply to a couple of schools in Chicago, but again, I am trying to go to Texas. And so those would be probably my top choices. I will high five you for wanting to go to Texas it's a I mean that's where my home is and so it's extraordinary I don't understand what two more years at

state tuition in Illinois with your mom you'd have to make me a pretty hard sell that it's worth it financially and sociologically like I gotta get away from my mom I gotta get out of this crazy whatever, fill in the blank. You'd have to give me a bigger story than to say these other experiences are worth it financially

if you're not just independently have the cash. Yeah, I don't disagree with that, Lisa. And the other thing is this. You need to keep working your options, okay? Basically, you've been driving a used pickup that was 25 years old and had 100,000 miles on it or whatever, and you've been very responsible, and you went straight to the Bentley lot. You didn't check anything in between, okay? I mean, you got through associates you did

all the two year you paid cash for it you and then you jumped all the way up to bentley's i mean you didn't even stop by and see toyota or lexus you just went to bentley and so you know if you want to go to texas there's a lot cheaper places that you can get a great business degree in texas and since you don't have the money and it means going into debt that would be my only option for you as you know uncle dave saying please yeah don't don't go don't go into debt now for the difference in texas tech houston i assume there's one i don't know or texas you know i'm a texas tech grad so i'm gonna high five it yeah but university of houston even the smaller faith-based schools like love it christian and abley i mean there's there's

smaller schools there that you can go to if that's if that's what you're committed to but are less expensive by by a significant amount. But, again, if you want to go into business, you want to go into finance, man, there's excellent business schools and excellent business professors in a lot of different places. Yeah. So what I would tell you is, no, I would not go into debt to go to Baylor. Baylor's a great place, but no, I would not go into debt to go to Baylor. Baylor's a great place, but no, I would not go into debt to go to SMU.

If Texas is on your radar and you want to figure out a way to do that, you've got to go to a school that allows you to afford to do that and pay cash. You've been so wise so far. Don't blow it. You know, don't blow it. You've done really, really good. And, you know, just get off the Bentley lot and go get you a car you can afford. That's all we're talking about here.

And so either do that in Chicago and say, okay, as soon as I'm done with that in two years, I'm out of here. Right. I got that. No problem with that. Or head on to Texas and take, you know, the University of Texas Dallas Extension Campus. I don't care. But you can do all of that stuff for 10%, 15% of what you're looking at, and you don't have to go into debt then.

You can work your way through it. So that's please, please, please do that. Hold on. I'm going to send you a copy of Anthony O'Neill's debt-free degree to help you with this process. John, I'll park there for a second because we did this whole eight episode, and you were in it in the podcast as well, Borrowed Future that 2 million people have now downloaded.

You can listen to it. It's a podcast on a very, very popular podcast about the whole epic failure of the student loan problem, the plague that of the student loan problem, the plague that is the student loan problem. And every time we talk about it, it's up another couple of hundred billion. A couple of hundred billion, yeah. I mean, we start talking about it as 1.3, it's 1.7. By the time we get something recorded, it's going to be over 2 trillion.

And this is how it happens though well-intentioned but you didn't someone doesn't take that next step in the thought process they what came at them first is what they land on right and uh it's heart driven uh hers was value driven which is good values driven which is good she wanted to be in a christian school that's awesome i don't disagree with that at all um and a bentley's a great car yeah there's nothing wrong with bentley's there's a reason they cost that reason they're 75 pretty freaking amazing million dollars right but but that that there's you know you come out one of your two doctorates is in higher ed. So talk to people about school choice causing debt. It just, you get a picture in your head, and I was just having a conversation about this, about the ecosystem of anxiety we have in this country.

The schools are asking my 10-year-old, what are you going to be when you grow up? Where are you going to college? Are you going to college? What are you going to be? And so there's this track that if you don't do this thing the world's over for you and it's beat into your head at a young age start picking your school start doing this and then there's all kinds of marketing efforts and all these things and then being on the inside of the college world i can't tell you a bad actor who doesn't really believe in the values that they're teaching

who isn't trying to help students out it's an expensive enterprise and the bigger and more more um uh more research that's being done and the bigger the the workout facilities are and all the stuff that comes with a price tag and so when you when you this, it's been wound in your head for a decade. You've got, like you mentioned, this pent-up, pent-up demand. I got to, I got to. And then you've got somebody that looks as beautiful as this saying, I want you, Dave. I want you. And I know you and you belong here.

Then, man, that's a recipe for I'm going to figure out whatever I've got to do. That's parents mortgaging their houses. You deserve a Bentley. Bentley has been waiting for you. Yeah, we've been designing cars with you in mind. That's right. That's right. And unfortunately, now it's in a hard place where something I think was a public good, I think it was important to have an educated citizenry, now cost beyond anything we can imagine. And now there's some real heavy consequences we're going to have to pay for letting it get out of control like it did. Yeah.

So moms and dads and 20-year-olds, choose a school you can pay for in cash. I wanted to say that real slow so you got it. This is the Dave Ramsey Show. folks i love telling you about well-made well-thought-out products today i'm talking about grip six belts i don't know about you but i'm not a fan of traditional belts they never fit right and they're uncomfortable grip Grip 6 belts are unique. Owner BJ designed a truly modern minimalist belt made of high quality materials with no holes, no flap, and no bulk. And the buckles come in really cool designs and are interchangeable. I personally own these belts in different styles and talk about affordability grip six belts come with a lifetime

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Good afternoon, Dave Ramsey and Dr. Deloney. Thank you for taking my call. Sure. How can we help? Yes, I've got two questions regarding my wife. How do I make her understand that we need to follow the plan for financial peace, and how do I make her understand that we need to move from the place we live in for better opportunities? What is wrong with the place you're in? So the field I'm in, I work as a software QA,

and the city that I live in doesn't really have many companies that offer this job. And during this COVID-19 that I've realized, if I get laid off, I'll have a very hard time finding a job in the city that I live in. Are you worried about getting laid off? No, I'm not worried about getting laid off right now. The company has assured me they're not laying off any people right now.

Well, to answer your first question, there's nothing you can do to make somebody who you signed up to be in partnership with do something or feel a certain way um i think taking that sort of approach into that conversation is gonna create more of a gap than already exists there making somebody making your wife think a certain way or feel a certain way um it's been my experiences that often um and again i don't want to unnecessarily gender it but guys want to sit down at a table and give a bunch of information and you don't have a collective you're not able to to make a pitch as to why you want to go where you want to go

and your feelings matter here sometimes more than the math problem does sometimes what happens is uh that a a guy gets a hold of the financial peace stuff and he gets all excited about the idea of someday we could change our family tree, we could actually be wealthy, we could be outrageously generous. There's a lot of reasons why to do this. And instead of coming home and talking about the why, he comes home and goes, honey, I just found a new financial plan. We're going to sell your car.

And, you know, that just really doesn't go well. We're going to move away from the neighborhood and our family and our friends. Yeah, I'm going to move to another city, so just in case I might get laid off, and we're going to sell your car. So you need to back up about five steps and apologize for jumping to the front of the line because the first step in the line, anytime when you received the information, what got you excited was not the debt snowball. What got you excited was not the idea of being debt-free.

It was what it would feel like when you were debt-free. It was where the debt snowball would take you. So why did you get excited? It sparked a dream in you. It sparked an dream in you. It sparked an idea in you. It made you come alive again in an area where you'd maybe lost hope or been overwhelmed. And so you talk about why. And, you know, the way to do that would be, you know, honey, I'm sorry.

I really blew this. I started talking about a bunch of what we're going to do instead of talking about why we're going to do it. Let's stop and back up now because I goofed up. Give me a pass here, and let's get a couple pieces of paper out and a couple tablets, and let's dream about what our life would be like if we had no debt and a million dollars. In the next part of his question, while we're here, I just got to be honest with you honey and open and i've never said this before but i found myself out on a limb and i'm nervous that if i get laid off i'm not going to be able to provide for this family and there's a couple of other opportunities in other places

let's talk about what that would look like yeah and we can we don't have to do it today but long term right this limb is scaring me and a dad who and a husband who can find a way to learn how to be vulnerable and learn how to be open. Golly, you're talking about a whole other level of partnership, right? I've never met a wife who said, you know what? My husband just wants to get too connected with me. Just wants to sit down and be too good of a partner. Wants to increase communication. good of a partner right right increase communication that doesn't exist right yeah i love it years ago i read a red book survey

said 97 of the women surveyed said they would like more communication that's all of them the real story statistically significant the real story is that you read a red book no i just i just read the article here you go somebody sent it to me out of that you read a Red Book article. No, I just read the article. Oh, here you go. Somebody sent it to me. Backing out of it, you read a Red Book article. Yeah, well, yeah. I spent the whole day in the magazine on my back porch. At the barber, right?

Yeah. It was good. Getting in touch with my national inquirer self. But often we have feelings, and we immediately go to the solution problem. Let's do this to the math. We're big solution people. And, yeah, I do that here on the air. Y'all call me up and ask me what to do, problem let's do this we're a big solution people and yeah i do that here i do that here on the air y'all call me up ask me what to do i'll tell you what to do but if you stop and think about your why sam and cynic wrote that wonderful book

start with why and you if once you know your why you can run through a brick wall right you can follow you you can swim through a mode of alligators i mean you can do whatever you've got to do when you've got a why and when you have a shared why game on and you say all right the reason we're doing this is our grandbabies are never going to be in debt again they're not going to feel the way we felt the reason we're doing this is i didn't like it when we had no money and a bunch of debt during covid suppression and i was afraid we're going to lose our job or we did lose our job i don't like that our job. I didn't like that. I don't ever want to be there again.

Never again. Never. I don't like looking around and realizing, oh, I've only got one little worm out in the lake, and that's it. And if I can't catch a fish on that one line, I can't provide for my family. Yeah. I don't like being exposed. In this, all of the shutdown, I got to sit inside, look in the mirror a few times, and realize I've got to make some changes. That's right.

Scared the crap out of me. Great question, man. It's a good question. And, you know, Sharon and I, when we miss, it's because we don't – we skip the step of starting with why. You've got to go, why are we doing this? Why does this matter? What's the problem?

You know, she's like, I'm going to redecorate that room again. Why? You should have just started with why. Because I am not going to go there right now. Jeez, man. That wall has so much paint on it. It's three inches thicker. You're losing square footage.

Just losing square footage with this redecorating plan. The volume of the house is driving. Yeah, it's just one layer of paint at a time. But, yeah, I mean, it's the same. Why? Why? What's driving that? Did you know when I was meeting with clients during the practicum, Dave,

whether it was a single mom struggling to figure out how to put food on the table for her kids or a millionaire, did you know the one question people couldn't ask is, what do you want? They couldn't answer it. Yeah, they couldn't answer the question, what do you want they couldn't answer it couldn't yeah they couldn't answer the question what do you want they could not like what do you what kind of job do you want like well you know i had it what do you want your house to look like what do you want your kids where do you want them to be what kind of husband employee they can't answer that question and that's a that's a

why question it goes all the way back there's a book that's 100 years old. It's been on the bestseller list for all that year. It's The Seven Habits of Highly Effective People by Dr. Stephen Covey. Number one habit, be proactive. And number two habit is begin with the end in mind. And when you can know where you're going and why you're going there, and you do it together. You can reverse engineer anything.

Couples can do it. Couples can do it. They can do anything. They can pull it together. You can reverse engineer anything. Couples can do it. Couples can do it. They can do anything. They can pull it off. Open phones at 888-825-5225. Speaking of never again, a lot of people are saying, what now? After the coronavirus shutdown, they're in a lot of different places with their money. But now they're saying, okay, now that the sun is coming out, what now?

What now? So we're doing a what now event. That's what we're calling it. Thursday night, a free live stream. You heard what we're charging you. It's free. It's a free live stream event with Chris Hogan, Ramsey personality, number one bestselling author.

Rachel Cruz, Ramsey personality, number one bestselling author. Me Cruz, Ramsey personality, number one bestselling author. Me, couple of bestsellers. Check it out. What now? This coming Thursday night, for most of you, that is tomorrow night at 7 p.m. Central Time. It is free. Let your friends know. Let your relatives know, because they've been asking the question, what now?

What now, COVID-19 and your money? What do we do now? And we're going to show you, and it's not going to be surprising to you because the law of gravity didn't change during COVID, so we still have principles that we teach and that we go along with. But if you want a link to watch this for free, text the word CONTROL to 33789. Text the word CONTROL to 33789. Let people know. What now? 7 p.m. Central Time, Thursday night, the 25th. For most of you, that's tomorrow night. This is the Dave Ramsey Show.

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Sure. What's up? So I had a question. So right now, my father and I are both on the title of a house. It was originally $500,000. I was putting in $500 of the payment because I was renting out a back house. I had moved out and he wanted to refinance. So I contributed $50,000 and he contributed $50,000 towards the principal. So now the payments went from $2,500 to $1,500 and I'm still contributing the $500 a month, even though I live in a different city now. And recently the talk of wills came up, so he said since I've been putting in money, he wanted to split it between myself and my brother and sister. So the three of us, and he wanted to put one third solely to me and the rest of the two thirds would be split between my brother, my sister and myself. So I would get a larger portion portion of the house. Now I wanted to add 500 a month

towards the principal, which would knock down around 14 years off the house. And I want to try to sell it or not sell. How do I go forward with my father asking, or what's the, I'm sorry, what's the fairest way to say, if I contribute, for example, another 6,000 a year towards the principal, can I get a bigger portion of that towards the will if it means that we'll knock out the house payment, we'll knock out 14 years? Is that a good way to go forward with this? Is this any problems that you can see with that? I see a thousand problems.

Yeah, this is a barrel of fishhooks, dude. Your name's on the mortgage, right? On the deed? Yes. And on the mortgage as well? Yeah, so is my father. Yeah. So Dave, correct me if I'm wrong, but it's not dad's house to give away. That's exactly right.

Your dad does not own the house. He owns half the house. He could leave half the house to someone. Is there a partnership agreement? I guess, can you clarify exactly what you mean by partnership agreement? Do you have a written agreement that an attorney drew up to define the terms of the partnership that you and your dad are in? No, you do not. No.

Okay. I mean, I would be shocked based on this story if you did um so because you guys have done all this on a handshake and both of you have different sets of rules you think you're playing by no well that's uh i guess you're right like i haven't said any any rules or i'm sorry not rules i haven't proposed this to him yet no but i mean he got the idea that it's his house to leave and it's not and you're still paying into it you've put half into it and a third of the payments into it and uh why is it why are you guys paying into it who lives in it uh currently my parents do so see the thing is my father also has two other homes and i just excluded that from the story just because I didn't want to overcomplicate it.

He did the original down payment, which was much higher. I added the 50 to refinance it and lower the payment as well. I would prefer that he refinance and buy you out now. That's what I would prefer. And then he owns the home and he owns the other two homes. Is your name on the other two homes as well? No. Good.

Okay. So then your dad owns three pieces of real estate. When he dies, he can leave it to whoever he wants. I would get out of the partnership. Okay. Because you're not benefiting from it. The numbers on this suck beyond belief. You're paying $500 of your parents' house payment,

and you own 50% of the house and are liable for 100% of the mortgage, even though you're one of two people on the mortgage. In other words, if he fails on the mortgage, they're going to come after you for all of it. You're going to get foreclosed on. If he doesn't pay his IRS bill, it's going to be a lien on a house that you are in a partnership on. If your mother falls asleep at the wheel and hits somebody head on and kills them and there's a $500,000 lawsuit, it's a lien on a house you own and you have no partnership agreement whatsoever to dictate how to deal with all this.

And so everything that can go wrong will here. And don't forget this. Dad passes away and brother and sister come out and say, that's our house too. And you say, nope, it's half mine. I've put into it. And now you've got a problem. You've got a family problem. You've got a relationship problem.

Yeah. I've put into it, and now you've got a problem. You've got a family problem. You've got a relationship problem. I think your dad buys you out by refinancing, gives you the money that you put in back out, and then he can do with his house what he wants to do with it. This is not a good investment for you the way it's set up. It is a relational problem looking for a place to happen. It's a legal problem looking for a place to happen, and it's a financial problem looking for a place to happen it's a legal problem looking for a place to happen and it's a financial problem looking for a place to happen it's a bad idea you do what you want to do but you called us and so i think you're trying to untangle the barrel of fish hooks and find one

way that all this all this fishing line comes out straight and there is only one way it comes out straight and if that's if everything goes perfect, and by the way, I'm old, everything never goes perfect. So it just doesn't. It's not Murphy's Law. I'm not negative. That's not the point. It's just nothing works out the way it's supposed to. Crap happens. And you put this deal together. So loosey goosey, somebody's going to get hurt, relationally, financially, or legally, or all three. I would ask him to refinance and buy you out. That's what I would do. Open phones at 888-825-5225. You can do business with family, by the way,

but you have to do it in a business-like manner. And that deal is not put together in a business-like manner. Business-like manner would involve, if you're going to do a partnership, and I don't like partnerships and I don't recommend partnerships, I only ship them on sales of partnership, but you have to cover all the Ds. You have to cover what happens in the event of divorce. You know, you get a divorce, what's your wife got to say about half of your parents' house that has your name on it?

Jeez, you talk about a mess. He goes into default. there's drug use there's disinterest i'm just not interested in paying the payments anymore i'm going to move off to seattle because i'm having a midlife crisis and uh oh by the way junior that house we own together screw it i don't care about it anymore you know look and you know that does this stuff happen every day every day we talk to people all the time so yeah divorce disability what happens if your dad becomes disabled these are all d's and the d's are all negative things that happen in people's lives and if you haven't addressed those ahead of time in a partnership and giving yourself financial and relational exit strategies you're going to be in a mess and particularly when it's with family so a business-like manner is that the

second business-like manner that was not addressed here is the financial part of this and that makes no sense at all it's just bad math it's just general 500 bucks i'm throwing at a house that i own half of and he's paying the other two-thirds but but he lives there. And how's that? You know, no. The whole thing is just made up, and it doesn't have any relation to your share. It's just we just rounded it to $500, and now we're going to round it to $1,000 out of the $1,500. And we refinanced, and we both put in $50,000. But I'm only putting in a third, but he's living there. And, oh, jeez i'm just i'm dizzy you know so you got

to really break this down and go no we're going to separate the uh the tenant from the owner and the owners are going to put in a percentage and that's going to be equivalent to their ownership and they're going to benefit that percentage but But you own 50%, but you hadn't put in 50% of payments. It's just so confused. So the lack of business-like approach to this with your documentation, the thoroughness of your agreement and communication, and the numbers tell us that this thing is just set up for a fall. And this is how people get in trouble. It's well-intentioned. thing is just set up for a fall and this is how people get in trouble i also well intentioned i like you i like talking about drawing those lines if you're going to enter into a professional

agreement with family you've got to have these boundaries you and i have talked about this on the show i remember the first time i was somewhere with rachel and she was talking about dave and it took me a second i thought is she bait? Is she trying to get me to say something about her dad? And she was saying, no, I can talk about Dave. Now, nobody talks about my dad. But that's another conversation, right? But you all decided, Dave and dad, Dave and dad. And these two guys, you're going to go to a partnership.

When we talk partnership, we're business partners. When you work here, you're a Ramsey personality, Rachel, and I'm the CEO. That's right. And then on Thanksgiving, you're dad. On Thanksgiving, I'm Papa Dave, and I'll put your baby on my knee. But you've got to have those conversations up front. Separate, separate deal. This is The Dave Ramsey Show.

Hey, guys. This is Kelly, associate producer of The Dave Ramsey Show. Did you know over 16 million people listen to The Dave Ramsey Show every week? And a lot of those people listen on one of our 600-plus radio stations across the country. To find a station near you, head to DaveRamsey.com slash show.