Dave Ramsey's Real Estate Principles 

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Biggest lesson i learnt in 2023 in the stock market is that nobody knows what is going to happen next, so practice some humility and low a strategy with a long term edge.

I was raised by two parents with one working full time at 15 an hour in the 90s with a mortgage, 2 cars, and lots of love. They did things smart, much like Dave advocates. Used cars, not new. Always had food. Never without. Amazing what managing money can do for you. I learned to apply those principles later in life..

I'm 48years old living in California, I'm hoping to retire at 50 if things keep going well for me. Bought my third house last month and I can't be more proud that am i now. I'm glad I made great decision about my finances that changed me forever but now I can't seem to make any other smart investment.

People buy houses with their heart and then pay with their blood.

Wife and I bought a house a little over 2 years ago, realized it was not a blessing but just a headache. We fixed it up and did all the landscaping etc by ourselves. We sold it a couple months ago and made out pretty good on the market. We downsized to a condo which we paid cash for and fixed it up a little. The condo is located across the street from a major hospital here and a Nurse is now renting it out for $1800. We now live in another condo which we plan on paying off by the end of this year to do the same thing. Long story- just really sit back and think what you want out of real estate. I would rather own a bunch of properties outright with no debt rather than have a big house and a 3 car garage. Just my personal experience to share.

I think investors should always put their cash to work, especially In 2024, we'll start to see more market diversification. I'm hoping to invest about $350k of my savings in stocks against next year. Hope to make millions in 2024

The only reason that I purchased my home instead of continuing to rent was that rent in my region has consistently gone up by between 5 and 15% for the last several years with no sign of it stopping in the near future. By buying, I was able to lock in the same payment for the next 30 years. I can budget for maintenance and repairs, but I don't think I can keep my income increasing by 15% a year consistently to keep up with the rent.

I love how practical this advice is... putting this in my playlist

yeap!!! everyone was pressuring me to buy a house when I know I cannot afford one. Glad I didn't care about what they say, because if I did, I would be in big trouble right now.

As a REALTOR working with first-time homebuyers I always tell them to remember that if they buy and have a problem they need to realize that when you call the landlord you’ll be calling yourself. Also once pre-approved for a loan ask yourself what house payment you’re going to be comfortable with. It’s no fun being mortgage poor. Not fun to go out to eat with friends and order water with lemon because that’s all you can afford.

A landlord tried to throw me out of his rental house when the furnace went out. I was a good tenant current on my rent payments. Bought a place after that, no more goofy landlords!

YOU ARE SO RIGHT ABOUT THIS!! THIS WAS ME 12 years ago. Broke and bought a house and Murphy moved in. It was a HUGE mistake. 90 days (exactly) after we moved in (in 2009) I got laid off. Then everything that could go wrong with the house did. I wish we had walked away back in 2010 when the bank was threatening to foreclose on us. This house has been nothing but a huge money pit.

in high school, my finance teacher showed us dave ramsey videos and i thought it was stupid. now, a completely different person at 24 years old, i have been originating mortgages full time for 3 years. the advice dave is giving here is legitimate advice that i provide to my clients. dave looks out for his listener's well-being and future, just like i do for my clients. i'm glad i wised up and that someone so influential is sharing real, practical advice.

Overall Dave has very solid advice for most people, very risk averse and logical.

this is the best Dave Ramsey video of the year!

I love to buy a house with bad paint and a lot of weeds in the yard. Those are often your best investments.

Good video. My late father gave me similar advice a long time ago - smallest home (but good bones) in the most expensive neighborhood you can afford. About location - consider quality of schools, access to shopping and healthcare (nearest hospitals) and transportation. Lastly if it is a good place to live - don’t sweat home price fluctuations over the years - it’s about the goal of owning a place you love to live

I came upon this, I love this discussion. People are so caught up into buying a home but expenses are crazy. Especially after a house is about 10yrs old. This is why most new builder warranties expire at this same time. Houses go up in value, do they really? How much does that house really cost you after adding in the interest you have been paying for 5yrs-30yrs? Great discussion..

Also Time!!! I rent but I look at my landlord and his wife - they are pretty busy maintaining 3 properties they own. Also property taxes, repairs, etc. It's a lot more than renting to be sure - also mortgage interest. Painting a house, re-roofing, etc - Save, save, save and wait for a recession. Then find a desperate developer who needs cash and make a low-ball offer. Buy a few if you can....saw it happen where I came from - recession hit. Someone I know of bought a $340k home for $60k cash they had...banks stopped lending but they had cash

"People get stupid...slow down"! TRUE! I had a deal fall through on a condo not long ago....but wound up buying the unit two doors down (better finishing inside) for $10K less than the previous deal. Sometimes when "life" forces you to slow down...LISTEN TO LIFE! Appraisal came back 25K over purchase price.

I'm a landlord and it's sad how a few tenants over the years moved to buy their own house because a family member convinced them owning was cheaper than renting. They loose their house and asked me why didn't I tell them how hard owing is and how expensive. Then ask me if I have a vacancy. 😞

at 4:05 i was just like damn lmao only if he couldve seen the inflation now haha

"Your life looks like a country song" And I felt that.

Buy a house that would make a good rental. That's how you do it.

sometimes the determination of the "wrong side of the tracks" is determined by a preferred school, or school district.

I Love You Dave Ramsey!!! May God Bless You and Your Family!!! 🙏🏾🙏🏾🙏🏾🙏🏾

On this pond...I mean Lake... Love Dave's humor

I bought my home at 145k 8 years ago now it is worth 267k when I bought it the house was a mess I invested little over 20k . Bingo! I'm very happy, not planing to sell at all. Love it! He is right. Don't buy the most expensive , buy the one with possibility .

I bought my 2nd home for 670k 6months later its worth 920k. Crazy times here on the west coast.

Location. Location location and Trader Joe's

I still remember the conversation with the loan officer at my local bank when we were qualifying for a mortgage: "oh jeez, you don't have any debt; not even a car loan! This will be easy." And it was.

Your largest expense in your life are taxes, not your house. That’s why it’s important to understand them

I love the videos , of all the money guys out there that make videos you are the one with the most straight forward non emotional medicine that we all need to hear

The company I work for owns all the housing up here. They rent it out to us at a really cheap rate because no one wants to live out here in the middle of nowhere, with the nearest cities three hours' drive away. Until I eventually move out to a different operation, it's extraordinarily cheaper to rent.

good advice. I wish I would have heard this before I bought my house.

I just purchased a single wide on acre lot in Concord NC few miles north of charlotte just off hi traffic exit ramp for $40k w/ a previous list price of $625k. Area will potentially be zoned commercial. I’m building my retirement income and that single wide is worth more to me at $1200 per month. I also purchased 3 homes from Suntrust bank for $33k few years back now worth $100k each. I rent to section 8 only because I don’t have to chase the money. In 20 years I’ve only had one tenant that I didn’t have to chase the money thusly I stopped investing in $100k houses I had to mortgage. Don’t have to chase the money via HUD. I buy the cheapest ghetto $15k properties to upfit. It’s the best return my wife & I have ever received. We’re both small business owners and during the Obama stress we lost our IRA’s and learned a lot on what’s bullet proof out there.

Those houses from the 60's were some of the best built ones out there! At least here in Dallas!

there is a saying in my place: "A house needs a servant, not a master" (e.g. your work on the house never stops)

We bought a house 9 years ago using a USDA loan. 33 year mortgage and subsidized interest. Our rental payment was such that we couldn’t save anything… I was spending $300 a month on food at the time, when other families like mine were averaging twice as much. There was no extra money. Our mortgage was less than our rent! Fast forward to today. We just signed papers for the sale of the house, and even after paying back the subsidized interest, we ended up with a hefty check for the equity after expenses were paid. Now we can put a size-able down payment on a house, get a 15-year mortgage, and maybe even pay it off in 10! We are very grateful. But that story doesn’t tell of the year a tree fell on our house and we had to replace it. Of the months spent suing insurance for enough money to do that. Of suing the people involved in the sale of our home, because of dishonesty and negligence (if they had done their job properly, we would have bought a different one), so that we would have enough money to bring the property up to code (new septic, new well farther from the septic, etc). We are currently renting. And the heater did break. We are grateful to be renting at the moment!

The issue with attempting to rent while stifling the credit score by avoiding debt; you cannot generally pass a rental screen.

Renting in NYC is just as expensive as a mortgage. Sorry, where you live does make a difference. The places that are dirt cheap are not safe. In Brooklyn, the median rent price is now $2850. Sure you can move farther out, but what quality of life do you have when you're commuting for 3-4 hours a day?

It's not the house that goes up in value, it's the land. The house depreciates... God Bless, *A.

buying real estate with debt is a good idea if you buy the house at a good/undervalued price (doing a month at least of research in areas you want to buy), use at least 10% down, and have a 5K-10K of addl money as a safety fund for the housing expenses after you move in. Long run (more than 5 years)... buying is better for you financially than renting-if you meet the above conditions. Dave's is too absolutist about debt-helps him sell books and seminars, but if you have decent financial literacy-using leverage VERY CAREFULLY absolutely increases your wealth faster in real estate than if you wait to pay down all your mortgage debt before buying again.

"life looks like a country song", someone needs to make that into a shirt

This was basically a mini-version of the class he does on Mortgages and buying/selling a home. Nice to see Dave hasn't changed much over the years haha

Thank you Dave! I've been immersed in your home advice for a while. Might buy a home soon &need all the advice I can get.

I bought my house for $99,000 six years ago, and have $48,000 left. Halfway there.

I bought a home in 2006 270,000$ now 400,000 and we almost pay off now still has 39,000 to go

Country Sing lyrics describe my story to the tweet! Lol 😅 including dogs running outside, roommate bringing girlfriends, water leak, air conditioning broke, getting estimates (wish was 4 k). Nit young, but widow. Oh, Rumsey add unemployed to the song. Let’s dance the square rhythm of life. Lol 😅

Good points , we bought ugliest house in best part of town . Was an estate sale out dated carpet smelly yellow musturd walls , 3 large pitbulls 1 handicap owner, mirrors everywhere, landscaping overgrown , was on the market for 3 months nobody could see past this stuff. Fast foward almost year later everyone who comes by can believe what how gorgoeus the house looks, crazy what some paint sanding staining knock couple walls down cut the grass and what some mulch will do for you. We paid asking price was 460 we got it for 420 and house next door behind us is selling for 670k they do have pool though but same house pretty much and they have half the land we have almost 1 acre. Looking foward to see an appraisel see what its worth now.

I like to watch Dave when he's by himself.

I'm 26, Going to school in Sept. A year program and should land me a $60k job afterwards. I'm used to living on 24k or less. I'm trying to create a plan so it doesn't get to my head. I wanna buy land, Build a house and maybe have a market garden as a side gig. I'll likely have to move around for work at the start. So i'm thinking of buying a campervan and converting it to live in full time for a couple years. Partially because I already camp a lot and always wanted one. But also because I think paying for the camper and parking close to work would be cheaper than paying for rent, utilities and vehicle maintenance/insurance etc. And give me a lot more freedom. When im ready and the time is right I'll buy a plot of land to park on and build something.

Im 35...been renting for only 503 a month and ive paid around 40,000 for the amount of times ive lived here. I wish i had bought a house..

Plus, rent always goes up and never goes away

People spend way too much on houses and cars. If you quit doing this you might just become a millionaire. I know couples that live in houses so big they never go into rooms and they pay over a thousand a month just in home taxes. Fine if you have it but saving that will make you a millionaire. Add cutting the $500 car payment then you can really get ahead.

Wow great advice. So insightful.

We live in a white hot Portland OR market where my hubby's 4 bed/ 2 bath doublewide (he paid $135K for it before he met me in 2015) is worth at least $215K (probably more) just because of the land and location. He bought it as an investment to rent out in a few years. Similar lot sizes down the street start at 200K now, starter homes start at 350K. I don't particularly care for the seams in the walls (some of you know those mobile home seams), but it is what we can afford very comfortably on one salary and on a 15 year mortgage.

Thank you very much Dave. These are really helpful points.

I wish I saw this before I bought my house when everyone was pressuring me to

Sad Dave has to explain this. I know a girl who turned down a bargain because of the paint color inside! She wanted her colors!

I rented from American homes for rent and let me just say.... there was a broken window in the house that WE DIDN'T BREAK. Took them weeks to send someone. The upstairs bathroom was leaking into the dining room and they didn't address it for WEEKS! We were lucky we had another shower in the home.

I'm a renter, and I hate it...

As usual, right on the money!!! 100 percent sound and common sense advice. We need to clone you.

I’m in favour of homeownership but Dave ison the money with this. There are a lot of hidden costs. Property tax, bills heat hydro etc, maintenance repairs , insurance

Dave, thanks! I love what you said about over buying.........so many people trying to buy the top of the market!

he actually brings up a good point, what do you do when your water heater goes out and what do you do when your roof leaks? what do you do when your heater gives up? anyone?

The invisible lines move. If you can buy in the bad neighborhoods right before they get gentrified you can make a lot. But it's hard to determine the next 'it' neighborhoods.

I'm so glad I found your channel. You are affirming my views and life style

The reason I strived to buy a house is because I hate having a landlord. Even a good landlord is still a landlord. I'm willing to pay more for a house to get rid of the landlord.

We bought our home in 2011! We purchased for $340,000! We owed $260,000 as of today! Our home worth $680,000! Our plan is to pay it off in 7 years from now! Timing is everything , and location !

I do agree with most of this - but gutters don't cost "nothing". I replaced all my gutters with new seamless ones, and the best quote I got was for $1800, and I live in a small house! But the gutters cost a lot less than letting water pool by the foundation.

a few hours away from me in Toronto (CA) people line up overnight to be the first one to see/buy the house over asking price...insane

The need for Title Insurance is a local issue: in some parts of the country it's the rule, some banks require it for a mortgage, in some places the attorney does a quick definition of title insurance and tells you most of their clients decline and have you sign a disclosure. In Brevard County, FL, it was required by my title company for a cash sale. In Monroe County, FL, it was not requiredfor a cash sale or bank mortgage; In Tompkins County, NY, it was not required for either a cash sale or a bank mortgage. In Fairfield County, CT. It was required by the bank for my mortgage. Unless it was required for my home purchase I would always decline. Dave, why do you recommend always buying Title Insurance? You didn't say. The protections it offers are extremely narrow.

Specialize in properties with bedbugs and termites with a view.

Awesome video, definitely giving it another watch so everything sinks in lol

I needed to hear this today.

I try to rent houses I would live in myself. Provide a quality product and give a worthy tenant a fair deal to keep them 3-5yrs and rental houses can be a gold mine. Something Dave didn't mention is FIGHT tax assessments when you buy lower than assessment

Establish relationships with handy men who work by themselves. Then shop and buy for your own material. The fixes take longer but you spend 1/5-1/4 for the repairs. One step further, always be there and help that person. Learn what they are doing.

4k for heating and air that's a good deal here in California we charge 10k to 20k for heating and air

Thanks for sharing your insight Dave. I can believe how right you are. I helped a friend find a house and everything you say is true.

My husband and I are getting into re estate investments...Glad to stumble upon this! Great video 👍🏼

"Your life looks like a country song."

Debt has literally made me millions with real estate. It is sad that Dave says debt is so bad when the loans he had that got him in trouble were 90 day notes and nothing like what 99% of people get in real life. Being able to control a $200k asset with $5k or $10kis an amazing thing. Thats why middle aged people in the US have 70% of their networth in their homes. If things go south the bank lets you live there for free during the foreclosure process and pays you to move out. The risk reward is out of this world.

its cool how things are similar but different in usa. in canada your principal residence there is no limit on the tax free status after 1 year... you can build and sell one a year... pretty decent way to supplement your income if you like moving a lot and are good at contracting.

Real estate is very different depending on each state, in Texas and in most states they have down payment assistance programs. In texas it's really not that hard to qualify for first a time buyers bonus you can get a starter home in Houston for Abt 100k-135k with 5k-6k down depending on location Divide that by 30yrs your paying abt $277.00- $375.00 plus around $250-$350 tax&insurance your monthly mortgage can run you abt $630-$725 under 1k a month, right now in the rental market in Houston two beds one bath rentals starts at $850, it's cheaper to own and you can always sell your house get your money plus a little sum back after Abt 5yrs.

Dave Ramsey, congratulations, your NHL team is going to the Stanley Cup Finals! Go Nashville Predators.

Renting out my couch and spare room of my apartment- comes up being I pay the electric- equals 200 dollars a month for rent. Would love to eventually get a house, but 200 a month for living in the city can't be beat. Currently working on Baby Step 4. Such great advice. 👌we have all done stupid things 🏆

not buying at the top of the neighborhood is an interesting point that i never thought of.

Hi Dave, if there’s good and bad times to buy, how come every Professional always says to buy buy buy? They’re all the same and they all only care about their commission

awesome tips Dave - I agree, the worst house on the best street is the way to go :)

Dave, too bad your mortgage payoff calculator DOES NOT WORK. When I add more principle payments and add those payments to the normal payment, it DOE NOT add correctly. My $93,000 4.5% 15 year loan only adds up to $60,000, not even the $93,000! Please fix it. Thanks for everything you do for us!

"You're life looks like a country song" 🤣

When the wife and i bought our home the landscape was terribly overgrown and the home did not appraise due to it, sellers dropped the price 20k because they didn't want to trim the trees/mow the yard.

I love your sarcasm!

I found its cheaper to own a house then rent one. Intrestest rates have never ever ever ever EVER been lower! Best time to buy a house unless you're broke..

4,000.00 for an HVAC system... I had to look back at the date on this video.

Buy a small abandoned church in rural America transform it into a home or divide it into apartments and turn it into investment property

Me and my partner are building a 40,000 one bedroom house that’s off grid on his family land.

Thank you for the advice