He didn’t purchase a house. He gave his landlord $150,000.
@mikeo8890Ай бұрын
Rent to own
@dohnjoe735Ай бұрын
dupont would be proud
@AnnetteWood-r2b12 күн бұрын
The vast majority of people DO NOT read contracts before they sign.
@JoeRNNE1Ай бұрын
Dave nailed this one. What this guy did was utterly idiotic. Real estate is not the place to play around with shortcuts, hacks, etc.
@MillennialTechNick2 күн бұрын
The only hack is to live rent-free with your parents for as long as possible 😉
@RPisa2416Ай бұрын
Guarantee any other Ramsey personality couldn’t handle this question with the level of expertise. Hope they are getting educated before Dave fullly retires
@bradleymaravalli2851Ай бұрын
Ramsey crew should bring in a legal and/or real estate expert to the fold
@jessicahimmer5357Ай бұрын
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.
@ritalally7018Ай бұрын
@@jessicahimmer5357 I feel the same and will stop watching when Dave retires.
@bradleymaravalli2851Ай бұрын
@@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.
@JacobsNewsАй бұрын
@@bradleymaravalli2851 the best was when they told the 78 year disabled lady to go get a job lol
@mikeg0802Ай бұрын
Buying any property with no contract in place is suicidal….and stupid
@rauserbegins5850Ай бұрын
“Suicidal” kind of encompasses stupid lol
@mikeg0802Ай бұрын
@@rauserbegins5850 very true 😂😂
@MrC867Ай бұрын
😂😂😂😂😂😂🇧🇭😂😂😂😂😂🏫🇧🇭🎉😂👍👍😂😂🌏🇧🇭🇧🇭😂😂@@rauserbegins5850
@rauserbegins5850Ай бұрын
The word that comes to mind is “fraud.”
@SLOBeachboy15 күн бұрын
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.
@MaryLawson874Ай бұрын
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.
@EdmundEthan093Ай бұрын
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!
@roxdietrenАй бұрын
@@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.
@AlfredStephen127Ай бұрын
@@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?
@roxdietrenАй бұрын
@@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.
@AlfredStephen127Ай бұрын
@@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.
@rleonekc07Ай бұрын
they paid 150k toward the house without a contract !??!?! omg.
@user-yf6cd9bb8tАй бұрын
These people better get a lawyer. They are really not mentally up to handling this on their own.
@zvmZvm0102Ай бұрын
What good is a lawyer? Law schools have no standards given DEI. You might as well ask your cat for legal advice.
@BREEZYM6015Ай бұрын
@@zvmZvm0102Maybe they should consult your advice since you seem to know so much. 😂
@shannonobrien9922Ай бұрын
I don't think they can....you are required to go to court with "clean hands" and they have perpetrated fraud
@UncleDavesKitchenАй бұрын
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.
@alexlopez5800Ай бұрын
So, you can't even think positive. Got it! 😂
@Blue_Star_flyerАй бұрын
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_flyerАй бұрын
@@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."
@jeanmccallum5034Ай бұрын
$150,000 ?????😢 kiss that money goodbye. And stop trusting everyone. Ask questions FIRST before you plunk down huge amounts of money!!!!
@BREEZYM6015Ай бұрын
So I shouldn't put the house only in my girlfriend's name in order to get married? 😂
@Jim_CurtisАй бұрын
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.
@Dan16673Ай бұрын
Yup
@xlerb2286Ай бұрын
The trouble with Dave is he's so quiet and impassionate you never know how he feels about something ;)
@EM4Christ7Ай бұрын
😂😂😂😂
@BREEZYM6015Ай бұрын
Yep. I've never seen Dave raise his voice or express how he really feels. 😂
@kellibuzzard9431Ай бұрын
😂
@guyhill3528Ай бұрын
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.
@sharonb519Ай бұрын
You can’t fix stupid. 🤦🏼♀️
@MrMustangrickАй бұрын
👎
@BREEZYM6015Ай бұрын
Can it be removed by a surgeon? 😂
@sharonb519Ай бұрын
@@BREEZYM6015 😂😂😂
@roathripperАй бұрын
the math aint mathing!
@user-lf5bm5tm1qАй бұрын
You give someone $150,000 without ANY agreement on ownership? 🤡🤡🤡🤡
@TheAustrianPainter8716 күн бұрын
The "Just trust me, bro" contract
@SoCalDaisyАй бұрын
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! 😂
@drn13355Ай бұрын
I wish this one had been an actual call.
@ashleymjenkinsАй бұрын
Me too lol
@whosaidthat9265Ай бұрын
The house wasn’t sold to you. The people you have your money to didn’t own the house. What the heck? My gracious
@ThemoomabidesАй бұрын
Dave was in the mood in these last few videos.
@dr_pinna543Ай бұрын
Love it. Brutally honest Dave
@jaypal3815Ай бұрын
Dave is on fire. 😂
@philuentАй бұрын
"you guys have just lined up stupidity in a row and knocked it over like dominos" 💀
@zandramangrum5483Ай бұрын
That quote should either be on a t-shirt or coffee mug or both!
@diydame7163Ай бұрын
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.
@reese85Ай бұрын
@@diydame7163 when and how many situations have you heard of like this?
@diydame7163Ай бұрын
@@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.
@derekd1510Ай бұрын
@@reese85 Only in Mississippi...
@lindawilson4625Ай бұрын
"Happy Hour or a serious bag of pot." LOL! I think you hit the nail on the head there, Dave!
@hammerdown3876Ай бұрын
that about made me spit out my morning coffee when he said that... lol
@GAFB1122Ай бұрын
Heard this one on the radio. This was a horrible idea, and Dave lets him have it.
@tohaank54Ай бұрын
Asks Ramsey for advice *Gets yelled at by Ramsey* Rightfully so lol
@pdxmusl1510Ай бұрын
😂😂😂😂 Don't call in if your not prepared to get your butt chewed. 😂😂😂
@CarnivoreStorkАй бұрын
The public education system is seriously failing us.
@kbanghartАй бұрын
The caller is probably a trump supporter
@ShaneCrazyАй бұрын
@@kbanghartI see you got a case of TDS since trump was nowhere near mentioned in the original comment 😂
@kbanghartАй бұрын
@@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.
@ShaneCrazyАй бұрын
@@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 😂
@BlakeC341Ай бұрын
@@kbanghartthere's always one looney lefty to cry about Trump in every conversation. You're such a weak-minded. 🐱😂
@kiethlowry2862Ай бұрын
That was definitely a new mistake wow what a disaster of mistakes.
@grit1679Ай бұрын
“A fool and his money are soon parted.”
@standby0455Ай бұрын
Dave's face at 4:00 Should be in the emoticon list🤪
@djpuplexАй бұрын
The wifes family knew what they were doing, the wife probably too
@DEBTFREEMIKE769Ай бұрын
No offense to Mississippi folks
@Songbird36ableАй бұрын
Thank you cause I almost got offended 😅
@ashleymjenkinsАй бұрын
@@Songbird36ablesame 😅
@bobmcdoggish9659Ай бұрын
Dave is exactly right. This was incredibly STUPID.
@botticelli728Ай бұрын
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.
@ladydamiana6841Ай бұрын
Yeah, I couldn't believe Dave wasn't yelling "STATUTE OF FRAUDS!" from the get-go.
@MrJimmy3459Ай бұрын
How could he sleep at night? Holy moly he's one thing away from disaster
@davewarrant8673Ай бұрын
"Love of money..." all for a 3% - 4% interest difference.
@riceball777Ай бұрын
this is one of the rare questions that only Dave could have answered correctly.
@robin1987100Ай бұрын
I hope for steve the people he gave that money to really are as nice and as fair as he thinks.
@hdsensingАй бұрын
This is CLASSIC DAVE!!! LOVE IT!!
@IndyShepherdАй бұрын
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..."
@finscreennameАй бұрын
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.
@lanceehrsam8296Ай бұрын
"You cant just make up real estate law while you and your buddy are drinking beer"
@user-ke6lo2ev3wАй бұрын
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-el2kcАй бұрын
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.) ???
@forzaazzurri1471Ай бұрын
Which is exactly what the landlord is going to do. We all know it.
@walkietalkie1973Ай бұрын
I enjoy hearing Dave call people stupid 👍
@TexasRanchuАй бұрын
Dave was brutally honest and correct on this one
@ultrahighgain412Ай бұрын
Yikes. Suddenly, some of the bone headed stuff I did back in my late teens and twenties doesn't sound that bad.
@itchyisvegetaАй бұрын
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.
@fhuber7507Ай бұрын
The IRS wants to know about this tax fraud too...
@johnoa1146Ай бұрын
Unbelievable! Great example of... "Penny wise, pound (dollar) foolish!!!!
@WendyW750818 күн бұрын
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.
@saeintrestsАй бұрын
He went -right off the bat too😂. DR wild … but right
@blakeharrison3972Ай бұрын
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
@levigoldsonАй бұрын
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.
@electronsauceАй бұрын
"The juice aint worth the squeeze" lolol
@jetthelooterАй бұрын
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.
@shannonobrien9922Ай бұрын
I've NOT seen smoke coming from Dave's ears before 😂
@cita_mАй бұрын
If this were my family, they would have no idea about the $150k once the banks got involved.
@Radslom2 күн бұрын
It is situations like this that puts the economy at risk.
@expertonmyselfАй бұрын
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...
@roathripperАй бұрын
too chicken to call in to the show huh? 🐣🐤🐥
@JoeBluntАй бұрын
Trying to be cheap costs extra money quite often
@dalethompson6952Ай бұрын
People have no idea what they are doing.
@joefunk76Ай бұрын
Listen to Dave, because he’s got a PhD in D-U-M-B! 😂
@ricmightybonefeliciano9800Ай бұрын
Haha... "it was happy hour or a serious bag of pot" ... so good
@mariad41839 күн бұрын
Excellent walkthrough. Thank you for the breakdown
@TMPS93Ай бұрын
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.
@tduck828Ай бұрын
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!
@aolvaar8792Ай бұрын
An irrevocable trust, you don’t own it, The trust does
@tduck828Ай бұрын
@@aolvaar8792fair point but these people clearly didn't do that!
@Questor-ky2fvАй бұрын
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.
@davinasquirrel7672Ай бұрын
That is the most cray-cray thing I have heard for a while.
@darthdougus29012 күн бұрын
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.
@romeoj30Ай бұрын
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!!
@jacoblynch9862Ай бұрын
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.
@jaydubya9265Ай бұрын
I’m considering buying my uncles house we thought about this but a quick google search told me this was a bad idea.
@sungearАй бұрын
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!
@amylin5062Күн бұрын
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.
@DaleEGrantАй бұрын
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.
@WhatShallEyeDo4UАй бұрын
At 2:35... I felt that... 🤣
@sharonb519Ай бұрын
Hold my beer. 🍺 🙄
@TheDeedwardsАй бұрын
I'm loving it! Dave's passion is so inspiring ❤
@01deneseАй бұрын
What if the "renters" start a fire that destroys neighboring houses? The neighbors can sue the people on the mortgage, yes?
@derekd1510Ай бұрын
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.
@jimroscoviusАй бұрын
I will never understand how someone can do something so STUPID!!
@jeffwombold9167Ай бұрын
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.
@teslawoodart8042Ай бұрын
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.
@robertthompson5908Ай бұрын
I love it when Dave reams callers out.
@felipeoliveira2219Ай бұрын
This is crazy.
@Lon1001Ай бұрын
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.
@SteamEnginesUSAАй бұрын
Do the $150k as a down payment so you avoid PMI
@QK977492 күн бұрын
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-sq1qkАй бұрын
Bro is pissed 💀
@Winston0Boogie12 күн бұрын
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.
@gooserich3970Ай бұрын
I love Dave!
@scottrowsey292Ай бұрын
6:48 what gives me a headache is borrowing money that no one does not need.
@royhoco57488 күн бұрын
bad deal for the buyer, great deal for the seller
@nickrieff509613 күн бұрын
He bought it subject- to existing mortgage, definitely risky!
@joeriveracomedyАй бұрын
Chase Morbey digs it
@bigcahuna42366Ай бұрын
And they need to do this the right way and get insurance ASAP. Hurricane season is getting started in Mississippi...
@calvinreichelderfer7989Ай бұрын
The documented cost of the house will be very important if they sell due to calculationing capital gains taxes in the future
@mmp495Ай бұрын
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?
@GAFB1122Ай бұрын
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."
@penguin12902Ай бұрын
@@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.
@ladydamiana6841Ай бұрын
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!
@reese85Ай бұрын
these guys in the comments have trust issues
@allenpriest8985Ай бұрын
This is a really, really bad idea.
@JoeBluntАй бұрын
"A serious bag of pot" 😁
@insure4cheapАй бұрын
This is a very expensive “rent to own” situation 🤦🏾♂️🤷🏾♂️✊🏾
@gregc247Ай бұрын
This may be the dumbest thing ive seen anyone do on here
@USMC6976Ай бұрын
People trying to cheat the system don't realize the risk they are accepting.