Real Estate Investing: Dave Ramsey method Vs Everyone Else



I've moved my Real Estate Videos to my new channel, Real Estate Unmasked, https://www.youtube.com/channel/UCbT7Q1taWcURuPV-fNrX4qg Please subscribe there if interested in Real Estate Investing! Jacob from Southern California asked, Who is right, Dave Ramsey or all the others, when it comes to real estate investing? Dave teaches to invest debt free, but it seems too slow to be effective. The others teach to borrow to get started and build "the empire." But I can see some downfalls to that, too. So who is right? Here, I attempt to answer that both are right, it all just depends on your tolerance to risk...

Comments

  1. Looks like you grew your RE portfolio too fast with 13 properties and lack the wisdom and experience in effective landlording. Unfortunately property management and tenant issues stopped you from pursuing more real estate. Interest is "the cost of borrowing" which is a tax write off because that expense is incurred in order to generate revenue. It's ridiculous to think that the Only method of RE investing is by paying out the entire price of the house and not using debt to service a mortgage! The lender needs to make money; just as you will generate cashflows from the home; it's a mutual benefit situation.
  2. Well Put together
  3. dave ramseys way works.....i do not see a problem borrowing to buy investment properties. that being said never get a credit card or car loan..those are liabilities they make you no money.
  4. You won't receive a benefit even of you are right on the edge of the next bracket. This is because only the income that is in the next higher tax bracket are taxed at the higher rate.
  5. I just wanted to mention on the side that buying a house in cash doesn't mean you have to save up idle cash in a savings account. You can buy into equity such as stocks, mutual funds or whatever, and let the money grow as you save it. When your investments are of sufficient value to buy real estate(and assuming the real estate is going to bring you greater returns than the investment), simply sell them for cash and reinvest it in the house. This is absolutely the best way to go without using leverage. Having said that, I do have a mortgage on my home. Rather than paying down my mortgage(only 3.625%), I am saving in near investments. That way I get a little of both worlds
  6. Hey great analysis. I've been recently working towards Dave's advices. But I'm intrigued about what you talked about real estate options. Anyway you can point in the right direction as far as more information for developing that kind of business. I'm interested in starting in real estate and you touched some key points that sound really interesting.
    thanks in advance
  7. Slow and steady wins the race.  Pay as you go. It's so much cleaner.
  8. Very helpful video! My husband and I are looking forward to being mortgage-free this fall and I owe it largely in part to the teachings of Mr Ramsey. I'm looking forward to doing real estate investing down the road with cash. Cool video!
  9. Mmh, in my opinion it can be very difficult to do anything without debt. Most people don't have millions of cash.
    Leveraging debt makes it possible to invest in much bigger deals.
    Dave Ramsey has his place, but wealth building is certainly not it.
  10. I like that you acknowledged that borrowing money in real estate makes sense "theoretically"

    It can be a dream or a nightmare and anywhere in between.
  11. Im 31 and had lost two properties because of investing property like everyone else by borrowing money. I have learnt my lesson and I think I will be using Dave Ramsey's Debt free investing to avoid losing property to the bank again.
  12. Thanks for the video! I am a big Dave Ramsey person (On baby step 3) and really want to invest in real estate after my house is paid off in the next 2 years. I am 28 and will be 30 when I start, I could honestly save up $100k in 2 years if I have no house payment and thought I would pay cash like Dave says. Every where else on youtube you see leverage leverage leverage. I don't like the thought of hounding people for rent because I will get foreclosed if I don't pay. If they are paid off you can sleep at night. Might be slower at first to get the ball rolling, but then you can buy more and more as time rolls on. Thanks Man! Sub'd!
  13. interest? If I get 10% ROI with a 5% loan then I would be better off sprrading my money for long term return right?
  14. The reason is not psychological, there is a psychological thing about them, but if you know advance math, you know there is something called risk, and there are formulas involved with risk. The bank knows this risk, but most people borrowing money don't factor risk in the equation, so it sounds good on their flawed models. Cash only investing removes risk, and makes it more profitable for you to do investing.
  15. how are you going to buy a rental property with cash?
  16. Ugg I am always explaining the tax writeoff scenario to people that have their opinions on me quickly paying off my mortgage! It's fun when you see their proverbial lightbulb go off. :)
  17. I will be following Dave Ramsey's method. As I get closer to retirement, I don't want to owe anyone a cent.
  18. Outstanding video!
  19. Trump way of becoming a billionaire : start a company...sell shares in company. ..borrow all you can on assets...put your personal debt in the company...declare bankruptcy. ..walk away leaving all the debt dropped on the share holders
    he's done this at least 7 times......it works..course he has 37 hundred law suits against him but it works...
  20. robert and ramsey have the same outlook. i love them both because u can apply everything at the same time. u can invest asset by debt(robert) to build ur business and apply the teaching of ramsey after all the debt have been paid. then thats how business grow faster than relaying on stocks. build a stable and very functional assets. for example farming buying equipments benefits from ur farm but if theres no work you can rent it out to the public. thats a very functional asset. rather than leaving it into rust.


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Duration: 7m 18s

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