What Should I Do About My $3,000,000 Real Estate Debt?

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[@denisesimons4969]

Listened to Dave for 20 plus years and He has blessed our lives! His advice is so good and saved us from awful mistakes!

[@jasoncoreas9432]

I almost had a panic attack just reading the thumbnail, but pleasantly surprised his position isn’t bad at all.

[@bobsacamano7653]

What??? positions shift on a dime

[@ChristoherWGray]

Flexing calling in... As always

[@evandavis2362]

Just bought my first place! Going to live here for as long as possible and then rent it out when I’m able to buy a bigger house. Thank you Dave for everything you do. I have been listening to you for years now and you are one of the reasons I’m so good at handling money!

[@eugenawoodson3816]

One of the best calls I've heard in a while. Thank You Dave, this is the behind the scenes stuff you don't get from HGTV.... And it's right on time, I just told a friend of mine to use cash and buy his property out right, but I couldn't explain it like this. Thanks again....

[@thesig301]

Dave’s situation was different, he was doing the 90 day thing as he mentioned which is a lot riskier

[@jacobmoreno6339]

That makes sense. I always wondered why he didn't just sell them all and cash out instead of filing bankruptcy and being broke.

[@droid2D2C3P0]

​​@@jacobmoreno6339 the bank collapsed or something IIRC so they called all his notes in full, hence bankruptcy

[@oc6617]

@@jacobmoreno6339 Yea, he was doing 90-day interest only loans to flip property with. So he had almost zero equity and was hoping to make money off the added value at sale. That plan is super risky if it consists of too much of your portfolio (all of his portfolio in Dave's case).

[@sbrazenor2]

I would use my cash to wipe out the loans systematically. Do a huge version of the baby steps, basically.

[@inviz1769]

What would you pay down accordingly? Highest debt? Highest interest rates?

[@An-Engineered-Journey]

Enjoyed this call. Surprised with Dave’s past in borrowing for rentals he didn’t tell him to sell everything and get rid of the debt lol

[@tahu300]

Only listened to 10 seconds but just the title is great! If there’s anybody that knows a thing or two about being $3 million in the hole on real estate, it’s Dave Ramsey! 😂

[@Riceblox2000]

Called just to flex because you can’t ask Dave that and not know what he’s gonna say lol

[@reese85]

It’s only a flex call if you take it as that

[@celeste7469]

Dave’s several hundred mill portfolio with no debt is the ultimate flex. I want to be like him when I grow up.

[@kylelaw7210]

If he has a long term low interest fixed rate mortgages you can really compare it to the 90 day loans Dave was using to flip houses.

[@mikenelson8377]

There’s no perfect person to answer this very specific question than Dave Ramsey.

[@jimmymcgill6778]

Money guys, Graham. Buffett, and plenty of others. But not Dave.

[@mikenelson8377]

@@jimmymcgill6778 you must be counting your CC points and whatever lol

[@manderm]

​@@mikenelson8377 yeah Dave has literally been through this, perfect person for this caller

[@jimmymcgill6778]

@@mikenelson8377 I don't do points. I do cash back. But I pay it off every month.

[@lrlforfun]

I'd love to actually dissect this guy's portfolio and get a really specific plan down. Dave's wisdom is pretty solid so I need to always keep that in mind.

[@thejakelegion]

Jade was gonna dive right in and say "Sell all your stuff!" These new kids have no real life experience.

[@anthonydooley3616]

His debt is cash flowing as opposed to most callers have student loans, car loan, etc that don't cash flow or appreciate in value.

[@andrewrossnagel9433]

Her lack of knowledge and understanding of money is very suprising

[@dahirdahir3809]

She didn’t even say anything why do u automatically assume she’s uneducated,this is just Dave’s expertise

[@andrewrossnagel9433]

@dahirdahir3809 Because she's a regular on the show and this is the impression that she gives

[@thejakelegion]

@@dahirdahir3809 she immediately started nodding her head yes at 0:37 seconds when he was asking if he should sell and pay off the loans and then at the end of the call, 6:14, she was surprised that Dave said what he said. All that being said, I'm a regular listener and am regularly unimpressed with Jade and a few of the other new, young people who only seem to be able to parrot surface level Daveisms.

[@manueltriana4010]

I really like daves philosophy i listen to your show everyday, im 22 now and 70k in debt, ive made BAD financial desicions but thanks to dave im confident ill make it in life

[@bellmattwebb]

It depends on what product you have on your mortgages. I would be losing sleep and would sell some but definitely not half. Dave's plan only works for Dave. You have to do your plan and take some of Dave's advice.

[@Eye-Wandering]

Please dave do more of this. This is the dave I want 😊

[@ClaxtonBay123]

He has the entreleadership channel for that

[@reviewsgoodnbad7695]

What’s the entrepreneurship channel?

[@neilsmith9066]

This is the most Insight Dave has ever given! Thank You Dave! and the one lady was about to say sell it all 😂

[@paulpetersen-iu1he]

I hope this gentleman did this and lives a great life!

[@jayknepp108]

I never really understood Dave's position on entirely debt free until this video Completely debt free entry into real estate is a painful process. But the consequences of desperate decisions are definitely much more painful

[@b.elijahakinola8819]

Exactly. Now I understand Dave The reason why cash is king is because, cash as control over choice made. But with payments, you really don't have that level of patience to exercise control.

[@YoPhocFays]

This real estate investor has great equity position. And the prices of real estate and rent are just going to go up eventually. If he doesn't have to sell, I would just let it continue to cash flow

[@timgibney5590]

Nope. They are over valued compared to actual income and inflated. Population in the US will decline and as soon as the boomers pass away we will see a decades long decline in rents and mortgage prices

[@cutenobi]

Love the real estate advice

[@chaoshih3860]

i am at similar position but with way smaller number, i thought about sell half of rentals to have remaining half all paid off, but i decided not to. He started invest in 2012 and catch on the growth train of best 10 years of real estate, i would just stay put now and stop buying and start paying off his current mortgage. Not to mention his mortgage in high inflation environment with large cash flow income is double benefit. In shorts, he is way better than Dave when Dave first started invest in real estate with 90 days loan, therefore the same Dave real estate experience does not apply to him, at all.

[@martyhen]

Would take forever to get to 6m if you only used cash. Leverage is your friend as long as used well.

[@fhuber7507]

100% sell off half and be debt free. then, use income from the properties to make other investments for diversification. Risk factor removed.

[@FooFan-b3k]

Why would someone diversify into lower yielding, higher risk investments? Clearly you have never owned a cash flowing rental portfolio. It's amazing. Literally life changing. Stocks are for people who lack knowledge of how real wealth is built.

[@joechang8696]

if his loans are at low interest, just sit

[@YoPhocFays]

If it's cash flowing real estate, I would just hold on to it. It's a long term play and you build wealth that way

[@esanford]

But, as Dave constantly admonishes, you will get rich actually faster and with more peace if you are debt free...

[@samuelherkimer8253]

@@esanford if you’re smart with debt you absolutely get ahead faster with debt. Apple has billions of dollars in debt even though they have enough cash to pay it off because they’re making money with leverage

[@esanford]

@@samuelherkimer8253 Dave has proven that the preponderance of millionaires are debt free..

[@reese85]

@@esanford you guys seriously can’t think Dave’s way is the only way?

[@esanford]

@@reese85 it’s a proven way…. I wish I had found him sooner. I have a great net worth. I would have been several times greater. Debt is a scourge on our society…

[@Stephan2P]

When it comes to owning millions of dollars worth of real estate, Dave is the the only who is experienced in this topic.

[@bezenhappync]

Thats hilarious.

[@rodrain2]

Dave wasn’t letting the guy finish his answers and i really couldn’t get a clear picture on his full situation. Please let these guys answer your questions fully before cutting them off

[@IgoOutlateAtnight]

Brag call

[@jimmymcgill6778]

No don't sell. The rent pays the mortgage.

[@cutenobi]

It depends on the situation.

[@brockeaton8698]

And when it sits open? Or something big breaks and needs fixed? The rent paying the mortgage is like going to work and not getting a paycheck.

[@alinatamashevich3354]

@Jimmy, did you miss the 3M in debt? Of course you did!

[@jimmymcgill6778]

@@brockeaton8698 You taking maintenance, repairs, taxes, insurance into account when you set the rent.

[@FooFan-b3k]

@@alinatamashevich3354 Did you miss that the property is cash flowing? Do you even understand what that means?

[@ominous450]

Cash flow the rental income to pay down the mortgage. Snowball your way through it. Attack the house with the smallest mortgage

[@jeffmorse5599]

i would disagree with the more debt the more risk. dave went BK because of the type of loan ot because he was in debt. Cash flow is king with rentals both in terms of selling them and operating them. the risk comes from slim cashflows not from the debt.

[@insideoutsideupsidedown2218]

March 2020 has entered the chat:

[@alinatamashevich3354]

@Jeff, debt IS debt. Most all companies that are in trouble have debt that cannot be serviced. The type is not important.

[@FooFan-b3k]

@@alinatamashevich3354 Wrong, but thanks for revealing that you know nothing about real estate.

[@esanford]

Debt is what causes the slim cash flow...

[@reese85]

@@esanford not if you a lot of cash flow

[@davidmercado2329]

In the early stages of Warren Buffett's career, he employed a strategy that involved leveraging up to around 25% of the equity as debt, often considered the maximum threshold he was comfortable with.

[@sandrad801]

This is the best show!!

[@Curious-Lass]

THAT was an awesome segment!! Fantastic advice!!

[@Demonic614]

I hope they do a big event when Dave hits Billionaire status! 🎉

[@polea009]

John oliver says hi

[@Zinger3030]

It could just me, but I have never felt that I was accruing consumer debt from real estate. If I wasn't buy and hold selling for a huge profit I was renting it out. Real estate, even when you are down a year or two, doesn't feel anything like that like plastic burden in most everyone's wallet.

[@nofsgiven3855]

Ppl with multiple properties like flips , rentals and AirBnb should get higher property tax

[@jeinvestments9546]

Very well said

[@lionmangolf]

Sure wish I had been listening to him 30 years ago.

[@baysideharpy8350]

Dave’s younger colleagues certainly have knowledge but not enough life experience (yet).

[@campingforayearrenoheart5908]

Good episode

[@christopherdurant3107]

Fair response.

[@feliciavale4279]

Jade is looking fine

[@Troonielicious]

Stop flipping, rent everything

[@realestateinvestingtips]

Great conversation, Christian! It sounds like you've done a great job building your real estate portfolio, but you're concerned about the amount of debt you have. Dave gave some great advice that having no debt can actually accelerate the growth of your portfolio in the long term, due to the lower risk and increased cash flow. He recommends gradually moving towards being debt-free and divesting any properties with high loan-to-value ratios. It sounds like you're on the right track and have a good handle on your finances. Keep up the good work!

[@jvhomebuying910]

Taxes; 1031 into more properties real-estate life.

[@epicgaming4946]

50% LTV is great, don't sell anything if it's cashflowing good.

[@InOrlando]

Beautiful position ❤

[@bluejedi723]

Wow, I''m impressed by the debt..just..*gasp*

[@wyattwheeler.]

Big difference between Dave’s 90 day quick-flip loans 25 years ago and a fixed 30 year loan. This caller could lose a lot of money if he sells.

[@jschannelm7912]

If he has low interest rates on the properties I’m not selling any

[@jamaelbaskerville4547]

😂😂😂😂 and he is from where I’m from

[@jimmymcgill6778]

He goes Dave with his strawman argument story? Which he took out hard money loans. There's a difference between that and having a mortgage.

[@viliusr.8792]

These very rich people are in big danger/temptation to build bigger barns and to love money...

[@yanesiadowning1144]

Why does Dave keep saying Tik “Tak?” I mean is funny, but…the name is Tik Tok 😊 I am just curious that’s all.

[@mikeshaw4610]

Why wouldn’t he just sell enough today to get debt free.

[@matthewphillips5483]

Sell the car and the RV.

[@Theextremepessimist]

My in laws have a few million in real estate. I feel bad for them. They are not at this level.

[@jaqueitch]

I'd personally feel more comfortable with him keeping his debt/equity below 20%. In this case, get the debt below $600k, or sell $2 million and pay off some remaining debt.

[@johndone8045]

Meh, 50% is fine for now, might down to 25 to 30% as a safety blanket

[@Wanderer25]

That's some good problems to have.

[@tomlines2010]

Dave does NOT have 100's of millions of property. No idea why he said that

[@esanford]

He said 100s of millions in property....

[@amireallythatgrumpy6508]

You probably also think he is not a millionaire

[@somashorts9735]

Your 400m real state assists will become 800m in 10 years but if you buy billion dollar assets with it I’ll become 2B in 10yr so becoming debt free in real state is no sense

[@amireallythatgrumpy6508]

if you buy billion dollar assets your chance of surviving long enough to enjoy the 2B is very slim. If you buy billion dollar assets today you're bankrupt tomorrow and don't get to enjoy when it's worth 2B.

[@andrepapa3352]

what's the purpose of the girl in the pink sweater ?

[@joshuatree28]

Dave’s sidekick was a student just as much as the caller.

[@esanford]

That's a good thing; did you know that she paid of a half of million in debt?

[@jasonharris765]

So when is Dave going to own up to leading people to timeshare exit firms?! He still hasn't admitted he was dead wrong about that...

[@amireallythatgrumpy6508]

He was only half wrong. Anything to do with timeshares is something to be avoided... If you are in a position where you even need them you have already been scammed at least once.

[@nicholasandreone2773]

@@amireallythatgrumpy6508 How is leading people that were scammed once into getting scammed twice half wrong 😂 I like Dave and am guessing he had the right intentions, but didn’t properly vet the company he was promoting and then refused to take any responsibility. He was just roasted by John Oliver for this. I’m assuming where this comment came from.

[@J3llyBean423]

AVP no I will not / and nobody should/ ,.../ I guess I'm the sheriff's of these here parts / the "U.S. Marshall /

[@connor_flanigan]

"I'll show you how to buy real estate with no down payment and get cash at closing!" - some dead real estate course salesman

[@miketheyunggod2534]

Dave has turned into those rich elitists.

[@elicash315]

This guy is 50% now but might end up 75% in the coming storm

[@alinatamashevich3354]

Or 5.9M in debt!!!

[@mageshruthrapathy5928]

@@alinatamashevich3354why and how will he end up in more debt?

[@VintageStereoCollector]

His wealthy buy he owes millions of money,It sounds like like his just average person because of his debts

[@WeAreSWAGent]

Jade is beautiful

[@jeremyschau6540]

Im just not a fan of Jade.

[@stevenporter863]

What you think Dave will say? Sell some of the property to pay off the $2.8

[@insideoutsideupsidedown2218]

a smartest thing to do

[@stevenporter863]

@@insideoutsideupsidedown2218 Agreed, but making joke of even asking Dave.

[@jimmymcgill6778]

What's the profit on each?

[@alinatamashevich3354]

@Jimmy, did you miss the 3M in debt ? of course you did

[@jimmymcgill6778]

@@alinatamashevich3354 It does not matter how much debt he is in. As long as the rent will pay for the mortgage.

[@alinatamashevich3354]

@@jimmymcgill6778 Every time you make a comment, you get dumber. If that is even possible , shut your pie hole and try and learn

[@beqsbaker2906]

He doing great

[@alinatamashevich3354]

It always works until it doesn't.

[@dnah02]

​@@alinatamashevich3354 probably means he will have to sell potentially at a loss and someone else can get a deal.

[@alinatamashevich3354]

@@dnah02 And the person with CASH always gets the deal. Cash is King, all else....Jokers!

[@charlesyoung9980]

Sell the houses.

[@wongthong7]

He played with to much debts

[@kdc3065]

This type of rent seeking behavior is akin to pimping or outright stealing, morally speaking. If Dave was ashamed of it and told other people to be embarrased rather than praising them, it would be a step in the right direction. Really he has to change his behavior. "Give up all you have and follow me." Don't turn widows and orphans and the poor into homeless people by buying out their homes from underneath them, trying to make a buck jacking up the prices for everybody. Look at how much housing costs now. The average worker cant afford to live so people like Dave can sit on thrones of stolen wealth, dispensing wisdom and judgement to the people who have been robbed. Not all money is impressive and the way Dave got his is shameful. Money from working or creating something valuable is praiseworthy. Money from winning the lottery or inheritance is cool, but not commendable. Money from exploitation/leaching of other people's work is lame. It's lame, Dave. It's harder for a rich man to enter the kingdom of heaven than a camel to pass through the eye of a needle.

[@jonathanbobo722]

Tik tak😂

[@setha360]

Get cardboard and duct tape for your future.

[@lukeharris2622]

✝️🙏

[@diane261]

Ouch

[@carloswithac]

I hate Jade. Super annoying. I skip all the episodes with her. 😡

[@probablynot1368]

I like her. She’s young, she’s experienced some of her own debt crisis; she and her husband worked hard to eliminate the debt, and she continues to learn from the best sitting right there at the desk. Imagine where Dave was 30 to 35 years ago.

[@timgibney5590]

Folks. What comes up must come down. Not everyone is a doctor or lawyer or CEO ready to rent (not buy) your property for $3000 a month for a 2 bedroom. Eventually, population decline and high interest rates will destroy your wealth and rental income. IN the next 30 years prices will go down and so will the rent.

[@reese85]

3000k is a month is almost the average cost of rent in some places and there rented out by normal ppl

[@listerinr]

When Dave says he has several hundred million dollars in real estate he's referring to the single $300 million(allegedly) building he owns.

[@chedbeckford8067]

loool

[@anthonydooley3616]

The building they are in was $70 million that he paid cash for. He owns thousands of residential rental properties and some commercial property that he has owned for decades now.

[@VGFightSchool]

I think he said in one of his past videos that he has about 500 properties.

[@rodneyfranks2726]

He did say that building was worth 300 million. With 500 residential properties and commercial properties that would put him close to a billion. If he indeed has no debt that would be remarkable. But I think he is inflating those numbers a bit.

[@amireallythatgrumpy6508]

Plus his several hundred other properties

[@dylankramer9249]

Comment

[@martincagle9226]

Is Dave debt free?

[@catherinep2034]

Are you joking? Or a new listener?

[@martincagle9226]

@@catherinep2034 just wondering about those hundreds of millions of properties he keeps flexing about.

[@catherinep2034]

@@martincagle9226 Dave has no debt, pays cash for all those properties. Most of his properties are generating income, he also has stock portfolios. After bankruptcy, & only having a 1 income household, I guess he likes to brag a little, about the empire he has built, but I think it's also to say that anyone can achieve it.

[@martincagle9226]

@@catherinep2034 oh, ok

[@reese85]

@@martincagle9226 he prob does and it would come out when he dies or something like everyone else but hopefully he’s practice what he preaches

[@kevinkidneyy]

But when I call , I’m broke and stupid 😂jk

[@eddiekulp1241]

He has a real problem LOL

[@andrewsmith8715]

Oh I know right that poor guy

[@pagalhokya]

When Dave retires, callers like this guy can't call into the show and get advice anymore. Who would advise them? The young people with no experience who have less of a net worth than these callers??

[@brianmay660]

Ya, he's the only one that really could advise this guy from actual real estate experience. Dave actually has hundreds of millions in real estate. Jade shouldn't even be shaking her head "no" here when the caller is doing way better than she is in terms of net worth.

[@6ixmanssleep]

Not everyone is broke. I think it will be okay. Dave isn’t the only one on KZbin

[@dog7881]

@@6ixmanssleepA majority of America is broke

[@budgetlivesave]

Time to sell! 😅

[@LA-xj3tz]

Debt is still dumb! How do you buy a house without a mortgage? Stupid Ramsey!

[@mrscreamer379]

"I have about $6 million of real estate" ... well how about you use a little bit of your enormous fortune to pay for a financial advisor rather than ringing into a radio show for advice?

[@raymondlong9324]

Get a job

[@BradBarrier]

[@uhIcy]

Big daddy Dave😩

[@davidloughrey4841]

Jade is a joke. She offered SO MUCH during this call. JOKE!!

[@angel-ij4xv]

get rid of her

[@DoctorSmartyPants]

She has very little experience, certainly none in this area. Same with the other hosts on this show. The show dies when Dave retires.

[@OTOWN2STOCKTOWN]

She's another Yes man (woman) in the show