“What You Did Was Unbelievably Stupid!"

[@KathleenMcNe]

He didn’t purchase a house. He gave his landlord $150,000.

[@mikeo8890]

Rent to own

[@dohnjoe735]

dupont would be proud

[@AnnetteWood-r2b]

The vast majority of people DO NOT read contracts before they sign.

[@JoeRNNE1]

Dave nailed this one. What this guy did was utterly idiotic. Real estate is not the place to play around with shortcuts, hacks, etc.

[@MillennialTechNick]

The only hack is to live rent-free with your parents for as long as possible 😉

[@RPisa2416]

Guarantee any other Ramsey personality couldn’t handle this question with the level of expertise. Hope they are getting educated before Dave fullly retires

[@bradleymaravalli2851]

Ramsey crew should bring in a legal and/or real estate expert to the fold

[@jessicahimmer5357]

I only listen to the calls where Dave Ramsey is on the air now. I don’t dislike the other personalities but they just don’t have the experience.

[@ritalally7018]

@@jessicahimmer5357 I feel the same and will stop watching when Dave retires.

[@bradleymaravalli2851]

@@jessicahimmer5357 Jade is the only one who has walked the walk. Everyone else can't relate or doesn't have the experience. The other personalities feel like they only cover one portion of what Dave Ramsey provides.

[@JacobsNews]

@@bradleymaravalli2851 the best was when they told the 78 year disabled lady to go get a job lol

[@mikeg0802]

Buying any property with no contract in place is suicidal….and stupid

[@rauserbegins5850]

“Suicidal” kind of encompasses stupid lol

[@mikeg0802]

@@rauserbegins5850 very true 😂😂

[@MrC867]

😂😂😂😂😂😂🇧🇭😂😂😂😂😂🏫🇧🇭🎉😂👍👍😂😂🌏🇧🇭🇧🇭😂​😂@@rauserbegins5850

[@rauserbegins5850]

The word that comes to mind is “fraud.”

[@SLOBeachboy]

That’s a strange word to come to mind considering it was the buyers themselves who chose to not transfer the title in order to keep a lower interest rate. How exactly can someone defraud themselves? This is not a case of fraud but rather was a case of stupidity by all parties involved. After all, even if the buyers trusted the family members implicitly - and even if that trust was well founded - a number of scenarios could pop up that would leave them screwed, such as those that Dave already pointed out.

[@MaryLawson874]

I'm in Michigan, and the housing market here over the past 7-8 years has been unprecedented. Houses that were purchased for $130K in 2015 are now going for $590K. These are tiny, poorly constructed 950-square-foot homes in quiet, mediocre neighborhoods. Meanwhile, nicer, average-sized homes in better neighborhoods that were over $300K a decade ago are now selling for $750K+. It's wild.

[@EdmundEthan093]

A recession as bad it can be, provides good buying opportunities in the markets if you’re careful and it can also create volatility giving great short time buy and sell opportunities too. This is not financial advise but get buying, cash isn’t king at all in this time!

[@roxdietren]

@@EdmundEthan093 I've been in touch with a financial advisor ever since I started my business. Knowing today's culture The challenge is knowing when to purchase or sell when investing in trending stocks, which is pretty simple. On my portfolio, which has grown over $900k in a little over a year, my adviser chooses entry and exit orders.

[@AlfredStephen127]

@@roxdietren bravo! I appreciate the implementation of ideas and strategies that result to unmeasurable progress, thus the search for a reputable advisor, mind sharing info of this person guiding you please?

[@roxdietren]

@@AlfredStephen127 The decision on when to pick an Adviser is a very personal one. I take guidance from Claire Robert’s Durand to meet my growth goals and avoid mistakes, she's well-qualified and her page can be easily found on the net.

[@AlfredStephen127]

@@roxdietren I copied her whole name and pasted it into my browser; her website appeared immediately, and her qualifications are excellent; thank you for sharing.

[@rleonekc07]

they paid 150k toward the house without a contract !??!?! omg.

[@user-yf6cd9bb8t]

These people better get a lawyer. They are really not mentally up to handling this on their own.

[@zvmZvm0102]

What good is a lawyer? Law schools have no standards given DEI. You might as well ask your cat for legal advice.

[@BREEZYM6015]

​@@zvmZvm0102Maybe they should consult your advice since you seem to know so much. 😂

[@shannonobrien9922]

I don't think they can....you are required to go to court with "clean hands" and they have perpetrated fraud

[@UncleDavesKitchen]

Just because you get a thought in your head doesn't mean it's a good idea no matter how much you want it to be so.

[@alexlopez5800]

So, you can't even think positive. Got it! 😂

[@Blue_Star_flyer]

So true. There was a song from the 1970s that went "if it don't fit, don't force it just relax and let it go, just because you want it doesn't mean it should be so." The caller should have asked Dave or a real estate attorney or the bank etc this question BEFORE doing this deal, not a year later.

[@Blue_Star_flyer]

@@alexlopez5800 look before you leap. He got an idea and NOW asks questions that he should have done before dropping $150K into a house he doesn't own. Thinking positive should avoid making bad decisions. Positive outlook to ask the bank, a real estate agent or attorney to verify the plan first. Positive thought to avoid a problem rather than fix one down the road. Love the quote from Jim Rohn, "When you motivate an idiot you have a motivated idiot."

[@jeanmccallum5034]

$150,000 ?????😢 kiss that money goodbye. And stop trusting everyone. Ask questions FIRST before you plunk down huge amounts of money!!!!

[@BREEZYM6015]

So I shouldn't put the house only in my girlfriend's name in order to get married? 😂

[@Jim_Curtis]

Some people are so dumb...oh and yeah, the IRS would call the $150k transfer a gift and require a gift tax return to be filed.

[@Dan16673]

Yup

[@xlerb2286]

The trouble with Dave is he's so quiet and impassionate you never know how he feels about something ;)

[@EM4Christ7]

😂😂😂😂

[@BREEZYM6015]

Yep. I've never seen Dave raise his voice or express how he really feels. 😂

[@kellibuzzard9431]

😂

[@guyhill3528]

This might be the craziest thing I have ever heard on the Dave Ramsey show. This is also the most stressed and bothered I have ever seen Dave.

[@sharonb519]

You can’t fix stupid. 🤦🏼‍♀️

[@MrMustangrick]

👎

[@BREEZYM6015]

Can it be removed by a surgeon? 😂

[@sharonb519]

@@BREEZYM6015 😂😂😂

[@roathripper]

the math aint mathing!

[@user-lf5bm5tm1q]

You give someone $150,000 without ANY agreement on ownership? 🤡🤡🤡🤡

[@TheAustrianPainter87]

The "Just trust me, bro" contract

[@SoCalDaisy]

I love it how he writes “When we sell the house…”. Uh, it’s not your house to sell - it’s still in the name of your relatives! 😂

[@drn13355]

I wish this one had been an actual call.

[@ashleymjenkins]

Me too lol

[@whosaidthat9265]

The house wasn’t sold to you. The people you have your money to didn’t own the house. What the heck? My gracious

[@Themoomabides]

Dave was in the mood in these last few videos.

[@dr_pinna543]

Love it. Brutally honest Dave

[@jaypal3815]

Dave is on fire. 😂

[@philuent]

"you guys have just lined up stupidity in a row and knocked it over like dominos" 💀

[@zandramangrum5483]

That quote should either be on a t-shirt or coffee mug or both!

[@diydame7163]

This situation will not end well. I’ve never heard a situation like this that resolved itself cleanly once they attempted to fix the mistake. The family members who legally own the house have 0 incentive to fix this now, and the money he paid them is probably already gone.

[@reese85]

@@diydame7163 when and how many situations have you heard of like this?

[@diydame7163]

@@reese85 I’m 50, across my lifetime, several. People think it’s safe to do “business” with family, but when money becomes the issue, it falls apart. My grandfather lost a car repair shop because his brother was “taking care of the books” but nothing was in my grandpa’s name. My friend lost her house and became homeless when her boyfriend took her money as half the down payment on a house but bought it without her, then dumped her. A friend’s son rented a location to start an internet business with a group of friends with no contract between them and he lost his investment but was the only one left with the liabilities. Every time people think they can trust someone in any kind of a financial transaction without a contract, they get screwed over.

[@derekd1510]

@@reese85 Only in Mississippi...

[@lindawilson4625]

"Happy Hour or a serious bag of pot." LOL! I think you hit the nail on the head there, Dave!

[@hammerdown3876]

that about made me spit out my morning coffee when he said that... lol

[@GAFB1122]

Heard this one on the radio. This was a horrible idea, and Dave lets him have it.

[@tohaank54]

Asks Ramsey for advice *Gets yelled at by Ramsey* Rightfully so lol

[@pdxmusl1510]

😂😂😂😂 Don't call in if your not prepared to get your butt chewed. 😂😂😂

[@CarnivoreStork]

The public education system is seriously failing us.

[@kbanghart]

The caller is probably a trump supporter

[@ShaneCrazy]

@@kbanghartI see you got a case of TDS since trump was nowhere near mentioned in the original comment 😂

[@kbanghart]

@@ShaneCrazy ah, triggered ya? I understand, that happens with all you MAGA. See, merely mentioning a person's name really shouldn't have that kind of a reaction, unless you are unreasonably, and harmfully, emotionally attached to that person.

[@ShaneCrazy]

@@kbanghart No one is triggered here but you. You literally brought up Trumps name for no reason. It sounds like your the one who is emotionally attached to him. I just responded so you can see how stupid you look with making that comment and you proved me right. I'm not even from the U.S either so it makes it even more funnier 😂

[@BlakeC341]

​@@kbanghartthere's always one looney lefty to cry about Trump in every conversation. You're such a weak-minded. 🐱😂

[@kiethlowry2862]

That was definitely a new mistake wow what a disaster of mistakes.

[@grit1679]

“A fool and his money are soon parted.”

[@standby0455]

Dave's face at 4:00 Should be in the emoticon list🤪

[@djpuplex]

The wifes family knew what they were doing, the wife probably too

[@DEBTFREEMIKE769]

No offense to Mississippi folks

[@Songbird36able]

Thank you cause I almost got offended 😅

[@ashleymjenkins]

@@Songbird36ablesame 😅

[@bobmcdoggish9659]

Dave is exactly right. This was incredibly STUPID.

[@botticelli728]

In every state in the union, a real estate transaction is not legal unless it is in writing. Get a lawyer and work this out.

[@ladydamiana6841]

Yeah, I couldn't believe Dave wasn't yelling "STATUTE OF FRAUDS!" from the get-go.

[@MrJimmy3459]

How could he sleep at night? Holy moly he's one thing away from disaster

[@davewarrant8673]

"Love of money..." all for a 3% - 4% interest difference.

[@riceball777]

this is one of the rare questions that only Dave could have answered correctly.

[@robin1987100]

I hope for steve the people he gave that money to really are as nice and as fair as he thinks.

[@hdsensing]

This is CLASSIC DAVE!!! LOVE IT!!

[@IndyShepherd]

What's to keep the current owner from claiming that the $150,000.00 was just a gift from a relative, and it was never towards the sale of the property?? "These people are just tenants, and I am renting to them..."

[@finscreenname]

Sell a house at below market value won't hurt the future price. Houses sell for under market value for a lot of reasons. Estate sales (family members buying out other members), short sales, property transfers. If the house next door is still worth market value then you will be fine.

[@lanceehrsam8296]

"You cant just make up real estate law while you and your buddy are drinking beer"

[@user-ke6lo2ev3w]

Easy to fix. I would suggest a real estate lawyer write up the contract. Pick a title company and get a new loan. Unless they have destroyed credit this should be easy to fix. I would consider the real estate taxes in my decision on a house sale price. But do what the laws require. Don't act in fear.

[@LauraMacMillan-el2kc]

What if the legal owners just outright refuse to transfer the mortgage title to your name and claim the money already paid was for something else (gift, other debt you owed them, or whatever.) ???

[@forzaazzurri1471]

Which is exactly what the landlord is going to do. We all know it.

[@walkietalkie1973]

I enjoy hearing Dave call people stupid 👍

[@TexasRanchu]

Dave was brutally honest and correct on this one

[@ultrahighgain412]

Yikes. Suddenly, some of the bone headed stuff I did back in my late teens and twenties doesn't sound that bad.

[@itchyisvegeta]

My sister and grandmother were in a similar situation. What made it worse was i was renting a room for a short time too which was awkward. Eventually my grandmother decided she wanted to sell the house that my sister was making payments on, and spending her money to fix up. Now we love our grandmother (and grandfather, rest in peace), but that was pretty shady looking back at it. Luckily everything worked out ok, and i couldnt find a new rental fast enough. But it could have been much worse in the long run. Moral of the story, dont do deals with family. Ever! They think they ate helping you, but that only proves that they look at you as too dependent. Prove them wrong! Be better and more self dependent.

[@fhuber7507]

The IRS wants to know about this tax fraud too...

[@johnoa1146]

Unbelievable! Great example of... "Penny wise, pound (dollar) foolish!!!!

[@WendyW7508]

There is also the wild card of theres no guarantee the family they did this with will do the right thing. They can put hand up and say i dont know what ur talking about." i let u move in there, sure. But it's my house. And u gifted us that money, dont u remember? " Talk about putting all ur eggs in someone elses basket.

[@saeintrests]

He went -right off the bat too😂. DR wild … but right

[@blakeharrison3972]

So they basically are just renting? They still own it, why would you go into this? Because it’s a 3% interest rate, just get something smaller

[@levigoldson]

No, as long as they have documentation or a contract, it isn't the same as renting. It's stupid, but they could have a binding agreement that makes it more than renting.

[@electronsauce]

"The juice aint worth the squeeze" lolol

[@jetthelooter]

the biggest stupid i hear on the daily at work when talking to customers and talking to coworkers is im getting a good deal on vredit carf points and why would i pay off my house with a low interest rate because i can write it off on taxes.

[@shannonobrien9922]

I've NOT seen smoke coming from Dave's ears before 😂

[@cita_m]

If this were my family, they would have no idea about the $150k once the banks got involved.

[@Radslom]

It is situations like this that puts the economy at risk.

[@expertonmyself]

dave is both, the wrong & right person to approach with your real estate deals & hacks. you'll feel salty after he sets you straight, but he sets you straight so...

[@roathripper]

too chicken to call in to the show huh? 🐣🐤🐥

[@JoeBlunt]

Trying to be cheap costs extra money quite often

[@dalethompson6952]

People have no idea what they are doing.

[@joefunk76]

Listen to Dave, because he’s got a PhD in D-U-M-B! 😂

[@ricmightybonefeliciano9800]

Haha... "it was happy hour or a serious bag of pot" ... so good

[@mariad4183]

Excellent walkthrough. Thank you for the breakdown

[@TMPS93]

If you wanted to lock in the interest rate you should've contacted the bank and tried to assume the mortgage instead of this handshake agreement. Some houses I looked at had "mortgage is assumable" in the listing.

[@tduck828]

No way would I EVER pay on a house that name wasn't at least on deed. This was D-U-M-B....I would draw up a contract! There you go. I would check to see if loan was assumable...some are!

[@aolvaar8792]

An irrevocable trust, you don’t own it, The trust does

[@tduck828]

​@@aolvaar8792fair point but these people clearly didn't do that!

[@Questor-ky2fv]

That interest percentage rate that the caller wanted to keep still isn't his. It is part of the loan contract and belongs to the person who has the loan contract with the bank or other lender. It doesn't matter who is making the mortgage payments. The loan was created as part of a contract between the lender and the borrower. The caller isn't a party to that contract, and thus has no ownership claim to the home or the interest rate. As Dave said, without your name on the title, you don't own the property. CALLER, please do like Dave said, and fix this ASAP, otherwise you are going to lose the house. You may also face charges of fraud and tax evasion.

[@davinasquirrel7672]

That is the most cray-cray thing I have heard for a while.

[@darthdougus2901]

He can be added to the title via a quit claim deed and then complete a refinance to pay off and remove the previous owners. Yes, that was a very bad financial move. The mortgage may be assumable for a purchase, this would allow him to keep the low rate.

[@romeoj30]

It amazes me how difficult people make things sometimes. I understand the intent. I have a buddy that immediately thinks this way about everything he does. It’s absolutely exhausting!!

[@jacoblynch9862]

There is no way I would give anyone $150,000 of my hard earned money without whatever I am buying being put in my name.

[@jaydubya9265]

I’m considering buying my uncles house we thought about this but a quick google search told me this was a bad idea.

[@sungear]

Also, the family member probably convinced them to pay the mortgage for them. They get the equity that way. When it's time to transfer the tile, guess what: the price will be more!

[@amylin5062]

Another stupid thing is, if they’d bought the house at market price - being able to put down $150k as a down payment - even with a higher interest rate, they wouldn’t have a crazy payment because they put down more. Geez…doing this just to keep 3% interest rates.

[@DaleEGrant]

Yep. DR is spot on. Reality is, there's so many more layers Dave could have touched on. All parties involved have zero clue what they're doing.

[@WhatShallEyeDo4U]

At 2:35... I felt that... 🤣

[@sharonb519]

Hold my beer. 🍺 🙄

[@TheDeedwards]

I'm loving it! Dave's passion is so inspiring ❤

[@01denese]

What if the "renters" start a fire that destroys neighboring houses? The neighbors can sue the people on the mortgage, yes?

[@derekd1510]

The petitioner would have to prove criminal negligence on the part of the plaintiff and that is highly unlikely. Usually the neighbors insurance would cover them in that situation.

[@jimroscovius]

I will never understand how someone can do something so STUPID!!

[@jeffwombold9167]

I got financially beat up in a land contract situation. I do have to say I learned a lot in that mess... and I wasn't what started the avalanche, I was just dumb enough to leave myself standing in the path.

[@teslawoodart8042]

Good to know about the house values. Our concern was that value of the house was devalued when the value of the property during the recording of the title. We bought my wife's childhood out of the estate for half the value of the house.

[@robertthompson5908]

I love it when Dave reams callers out.

[@felipeoliveira2219]

This is crazy.

[@Lon1001]

I know someone that was making payments for 15 years on a house he bought from his wife's uncle, structured just like this caller (no title, no deed, no mortgage). There was literally one payment to go when the uncle-in-law passed away. The wife's father was the sole heir to the estate and he took the house for himself as well as most of the money that the guy put towards it, and as it was his daughter living in the house with the guy the father in law "allowed" the guy to buy it from him with cash payments, for ten years. Basically the guy paid for the same house twice. When the father in law passed away there really wasn't much money left as it was funding the retirement residence he was living in and covered many medical expenses.

[@SteamEnginesUSA]

Do the $150k as a down payment so you avoid PMI

[@QK97749]

If this doesn’t put things into perspective, I don’t know what will I had no idea that something like this could be considered a bad thing… I’ve owned a house or even rented a house at this point my life… I almost feel like he’s yelling at me.

[@Car-editzz-sq1qk]

Bro is pissed 💀

[@Winston0Boogie]

My ex wanted me to buy this piece of land her dad owned when I said I wanted to buy something in her area. Her dad couldn't afford the place..... when I told her I would then own the deed and asked if she had a problem with this she said "how? My dad would still own it." When I said no that was an argument. This kind of stuff is stupid on steroids.

[@gooserich3970]

I love Dave!

[@scottrowsey292]

6:48 what gives me a headache is borrowing money that no one does not need.

[@royhoco5748]

bad deal for the buyer, great deal for the seller

[@nickrieff5096]

He bought it subject- to existing mortgage, definitely risky!

[@joeriveracomedy]

Chase Morbey digs it

[@bigcahuna42366]

And they need to do this the right way and get insurance ASAP. Hurricane season is getting started in Mississippi...

[@calvinreichelderfer7989]

The documented cost of the house will be very important if they sell due to calculationing capital gains taxes in the future

[@mmp495]

My dad owns two pieces of commercial property that he is allowing my brother to build on. No contract or any legal documents just a verbal agreements. What are the possible ramifications of this?

[@GAFB1122]

There are too many to list. Seek legal advice. Once you know all the risks, if you choose to move forward, at least you are informed, you can't say I didn't know and others can say, "I told you so."

[@penguin12902]

@@GAFB1122 He's building on a property he doesn't own? So...if Dad wakes up one day and changes his mind your brother loses his home, because he has no rights to the property.

[@ladydamiana6841]

Legally, "real estate" includes everything on the surface of the dirt, in addition to the dirt itself. Brother is improving your father's property at no cost to dad, and also increasing its value--which means more taxes for dad, but also increased property value. Meanwhile, dad can sell the property at any price, any time he wants, and brother is SOL. He's also SOL if he's merely acting as a contractor without a written contract/M&M lien on the property, because he has no basis to sue for nonpayment and no lien that would precede other liens in priority of payment if SHTF. Short version: Never put money into any real estate that doesn't have your name on the deed!

[@reese85]

these guys in the comments have trust issues

[@allenpriest8985]

This is a really, really bad idea.

[@JoeBlunt]

"A serious bag of pot" 😁

[@insure4cheap]

This is a very expensive “rent to own” situation 🤦🏾‍♂️🤷🏾‍♂️✊🏾

[@gregc247]

This may be the dumbest thing ive seen anyone do on here

[@USMC6976]

People trying to cheat the system don't realize the risk they are accepting.