Dave Ramsey Scenario

[Jed Burkey]

Dave Ramsey has told the story of how, when he was in his 20's, he used no/low down payment loans to purchase a large number of properties.  However, once the local bank he had been working with was sold, the bank that bought them didn't like his debt/income ratio etc., and " called"or "accelerated" his loans (meaning all the principal and interest became due immediately) and he was forced to declare bankruptcy.   I'm not afraid of using leverage to create more deals-in fact, I think that's one of the best ways to grow long term wealth/financial freedom.  Most problems with no/low down payment loans are created when the investor has not analyzed the deal correctly/pays too much/underestimates costs, etc. and/or does not have enough cash in reserves for large capital expenditures.  But, something like a bank accelerating the loan seems to be one large variable that could spell financial ruin that seems to be out of your control.  I'm assuming this is very rare/probably usually only happens when the property owner is behind on payments or has violated the lending agreement in some way.  Could anyone out there share their knowledge/experience on how this can happen/how to avoid it? 

[Marek Narewski]

@Dennis M.Can't agree with you more.  

"His ideas help a lot of idiotic folks who can’t control themselves"  Dave Ramsey is for people that are in debt/not good with their finances.