Dave Ramsey and You.

Here is a question.
If you live by the principles of paying cash for everything, how in the world can you invest in RE if you’re staying away from taking out loans for rental properties or using the credit line on credit cards for rehab jobs? I’d appreciate your thoughts.

You invest in places with very cheap homes or use low cash methods like assignments, purchase options, lease options, and tax liens. I believe in his no debt philosophy for personal living expenses, but I don’t use it in real estate investing. Leverage is the most powerful tool for a real estate investor.

I like this guy.

Question then.
Let’s say you’re going to buy a piece of property, as a rental, do you put money down to reduce the amount of leverage and have a positive cashflow?

Dave R. teaches uses cash to buy properties, which is a load of crap in terms of feasibility. It isn’t possible to just buy a 90k or 100k piece of property.

If I had that much in cash, I’d probably take that cash, buy as many properties as I could, quit my job and live off of the cashflow-assuming it was enough.


If you dump a ton of cash into a property to get cashflow back you’ll find that the return sucks. You’d get a similar return putting the money into a CD and the CD is riskfree. You need to find better deals to ensure you have cashflow. Start reading in this section to get a better understanding of how to evaluate deals: http://www.reiclub.com/forums/index.php/board,28.0.html


Did you buyb a franchise of homevestors? Can you give me some details on the program?

I’ll PM you.

Thanks for the link.
Someone I know got into homevestors in Ga. Hope you do well.
edit: good moderating too, no less.