When Is The Best Time To Buy Real Estate? Ask Dave Ramsey.
What’s up everybody… Today I am reaching out with a bit of a what if scenario to share with ya. Sometimes, I wonder what someone might tell us if we could interview them directly.
So that’s kind of how I put the info together for ya to take a peak at.
What if you could ask Dave? What might he suggest?
Here are my thoughts.
Dave by the way has been a favorite for me over the years. His direct no-nonsense way of handling his radio call-ins is pretty skilled, and I believe we can glean some wisdom from his perspective on the REI world.
Before I get to that though, gotta ask what’s got ya here? Trying to find out if you have a chance at the REI game?
Feel like a goldminer in the mid 1800s? I can relate. The call to the west to forge your own path….to freedom.
- A phenomenally exciting life
- Awakened inspiration,
- Limitless possibility
- and dreams fulfilled.
I wanted the same, but the truth was…
Most of my life felt:
- extremely empty,
- ridiculously routine,
- poke your eyes out boring,
- and furiously frustrating.
Just not what I signed up for. Feel me Freddie?
It’s in me to.
But the BS, flaws and junk in my own uncoached personality stood in the way and got me burnt pretty bad in real estate investing.
Not gonna cry you a river. I didn’t know what I needed to do to fix it, but I wouldn’t change anything….
Cause without it, I wouldn’t be here doing what I love…
Yeah, this pretty savvy successful dude James showed me what I needed to do to recover my entrepreneurial spirit, get rid of some of the crap in my way and take charge of my life after my real estate meltdown.
Watch the video, it explains everything. 3 Min…
Check out the review.
Dave Ramsey Real Estate Minute Tips
There’s some good news about home foreclosures; in 2014, only 327,069 homeowners had to pack whatever they didn’t sell and move. That’s a lot of people, especially when family members are added to that total. They certainly didn’t think it was good news.
How could 327,069 foreclosures be good news? In 2010 and 2011, more than 1,100,000 people lost their homes during each of those years.
Dave Ramsey’s Real Estate Philosophy
Foreclosures are the flip side of investing in real estate. If everyone who invested in real estate followed the dave ramsey real estate philosophy, there would be zero foreclosures. If the home is 100% free and clear, there will never be a foreclosure. If there is a job loss, it’s cheaper to live in a paid-off home than to pay rent somewhere else. Housing is a basic necessity; there will always be problems and emergencies, but they will be easier to deal with when there’s no mortgage hanging over your head.
When is it the Right Time to Invest in Real Estate?
Dave Ramsey knows all about the wrong way to invest in real estate. When he was 26, he was earning $250,000 per year and had bought $4 million worth of real estate. He didn’t pay cash, but took on a lot of short-term debt. During the next two and a half years, Dave and Sharon, his wife, lost it all.
That experience didn’t convince Dave that real estate was a bad investment, but it did convince him that borrowing money to invest in real estate was a terrible idea. The right time to buy an investment property, whether it’s to be used as a rental or to flip, is when it can be paid for with cash. For more great dave ramsey real estate investing advice, read EntreLeadership, full of valuable advice on building a successful business.
When is it the Right Time to Buy a Home?
Is owning a home the best answer for everyone? Dave doesn’t think so, and the great number of foreclosures bears him out. Before rushing into buying a home before there’s financial stability, it makes more sense to rent for a while. For some people, renting is a lifestyle choice; there’s nothing wrong with doing that. For prospective home buyers, Dave recommends paying cash for the house instead of taking on a mortgage.
If paying for the house in full doesn’t seem possible, Dave’s recommendations for home buyers-to-be include:
Becoming completely debt-free;
Saving enough in an emergency fund to cover three to six months of expenses;
Saving at least enough for a 10% down payment; 20% down eliminates the necessity for Private Mortgage Insurance payments;
Never buying a home during the first year of a new marriage; it increases the stress level unnecessarily;
Never, ever, buying a home with someone who is not a spouse.
Getting a fixed-rate mortgage with a term of less than fifteen years;
Keeping the mortgage payment to no more than 25% of take-home pay, even if the lender says that you can handle a larger payment.
To find out how much house is affordable, run the numbers on the dave ramsey real estate calculator. Don’t forget that the total cost of home ownership includes repairs, possible renovations, taxes and insurance. Unlike rent, these expenses can be unpredictable, but must be paid.
For Every Buyer, There is a Seller
Selling a home can be every bit as stressful as buying a home. Before listing the home, there are a lot of considerations. The free download of Dave Ramsey’s Home Sellers Guide includes more dave ramsey real estate advice specifically for sellers. Some of the points covered include:
How to decide if selling is really a good idea;
How to put the “Wow” factor into the home without breaking the budget;
Dave’s secret for starting a bidding war and getting competitive offers;
What happens after the contract is signed;
And much, much more.
Learn How to Become Debt-Free at Ramsey Solutions
Dave Ramsey has passed on financial advice to millions over the years. In 1992, Dave formed Ramsey Solutions in order to counsel those who were severely stressed over their financial problems. Dave learned a lot of valuable lessons the hard way (he says that he paid the “stupid tax”) and hopes that he can prevent others from making the same mistakes.
There are many products available for those who’d like common sense advice on life and finances.
Dave sold his first book, Financial Peace, from his car. That book covers all of the mistakes he made and recommendations on what should be done instead. Since then, Dave has had six books on the New York Times Best Sellers List.
Financial Peace University had changed a great many lives, beginning with the first Baby Step, saving $1,000.
There are classes available for parents, kids and teens.
Business classes include Dave Ramsey Real Estate Tips and many other topics for entrepreneurs.
The Bible Studies for young people incorporate a biblical foundation into lessons on life and money.
The Pros and Cons of Dave Ramsey’s Financial Advice
The pros of Dave Ramsey’s practical and sensible solutions to preventing and solving financial problems are as many as the number of people who have drastically changed and improved their lives. Before Dave Ramsey, many people had never considered that they could become debt-free. Dave shows the way, one Baby Step at a time.
The con of Dave Ramsey’s advice is that it’s really tough to stick with it to the end. It takes a tremendous amount of self-discipline and not everyone has it. However, Dave’s faith inspires his life and helps others to find the strength to do the hard things and discover the joy of living debt-free.
Dave’s practical assistance on both buying and selling real estate are invaluable to both homeowners and entrepreneurs. On a larger scale, Dave’s teachings on becoming debt-free are life-changing. Visit Dave’s website to start on your own journey to a debt-free life.
Good luck to ya! I hope you got a lot out of the review. I highly recommend you continue your learning whatever you do.
Catch up with ya later.
Paul (Real Estate Spy)