Dave Ramsey’s Financial Peace University

[A. Maldonado]

So the Mrs wants to do Dave Ramsey's Financial Peace University. It's what our friends do who have done well with savings and whatnot. I explained to her Dave's take on debt related REI however I told her I would still be willing to do the class to maybe learn something, thoughts?

[Kirk R.]

I thought it would be fun to do with my gf.  But I'm probably too optimistic! :) 

[Alex Olson]

@A. Maldonado you can do both. One for personal life (Dave) and one for REI (Robert K). Make sure you make great REI investments.

[A. Maldonado]

@Alex Olson so when it comes to investing do you still use debt to grow your REI business?

I've been trying to explain to my wife I'm open to learning from that University thing but I feel the second they start talking about investing (specifically RE) I might check out since he's so anti REI using debt unless it's your own house.

[Kenneth Garrett]

@A. Maldonado

Dave Ramsey has helped many people get out of debt. With that being said, he does not like debt which goes against the REI. If you listen to his podcast he doesn't tell everyone to sell there investment properties, but he does say if it doesn't cash flow very well get rid of it. Take the knowledge and education and apply it to your investing system. I think you can take some aspects of it and develop a hybrid system and still apply some of his concepts.

[Scott Mac]

Ask a mechanic for career advice he's likely to be able to tell you how to become a mechanic.

Ask a postal worker for career advice he's likely to be able to tell you how to become a postal worker.

Ask Tiger Woods how to play a better game of golf he's likely to be able to tell you how to do it, ask him how to be a better real estate investor, and you probably won't get the best advice.

How many rental properties does Mr. Ramsey own (???)

How much of Mr. Ramsey's fortune did he accumulate from real estate investing (???)

Of course staying in good with the Mrs. is a good thing too. So going might be a worthy investment of your time, especially if it's followed up with a nice dinner out for two at her favorite restaurant and telling her what a good time you had at the gathering<--(which might be the true value of going). (Catch more flies with Honey than with Vinegar)

Just my 2 cents.

[Joe Cassandra]

Dave Ramsey is great for budgeting and not getting into debt. 

Beyond that, I wouldn't listen beyond that. 

I did not take the course, my brother did and he loved the two above mentioned things. (and it's helped his family). 

If you're not in debt or on a tight budget, there's not really much there you need. 

On the flip side, everyone should have a budget unless your monthly expenses are $2k/month and your income is $20k/month :)

[Bjorn Ahlblad]

Nothing wrong with financial discipline but nobody ever got wealthy without taking on some debt.

[Anthony Wick]

I enjoy Dave Ramsey for getting started, and maybe 75% of the way along his journey. Then, when you are out of debt (except for mortgages), then I parted ways with Dave, and leveraged debt to buy rental properties. I kind of, sort of still follow many of his principles. Just not in relation to real estate. 

So, I say do it. And like most things in life, take what you like, and develop your own system.

[Kenneth Garrett]

Dave Ramsey will definitely help you to get out of debt. As far as REI he is not going to help. Use Dave's formula to get out of debt and then follow your own strategy to invest in RE.

[Kelsey T.]

I have found Dave Ramsey's teachings to be really really valuable and he has influenced our conservative approach to RE investing. I have not done financial peace university, but am definitely considering it. My husband and I do use debt to invest, but we are buy and hold investors, with the goal of paying down/off our rental properties over time. We both have careers outside of real estate and we invest on the side. 

[Axel Meierhoefer]

I always tell my potential mentoring clients in the free initial strategy session that the very first step is to determine what you want to accomplish in 2, 5, and 10 years. Then we talk about how to create a detailed overview of where you are right now using all the numbers that go into what I call your "personal balance sheet". If you and your wife find that your balance sheet indicates that you have too much debt and need to learn how to reduce it, DR's university could be a good thing to learn how.

In times like the ones we are in right now, I would hold on to any cash that is available or accumulating to allow for well-researched investments when the economy is coming back. If taking the DR classes helps you get to a point where you are accumulating cash for REI in the near term future, it could be a good investment.

You need to determine your "why" and have some good evidence both for yourself and your wife to make good decisions. Maybe you find out that your debt situation is not really bad and you would be better off investing in learning how to be prepared for the coming REI opportunities.

[Brian G.]

@A. Maldonado dude totally worth your time imo. It’s a great financial foundation. And anything that puts you two on the same page is a huge plus. Lot’s of great personal finance info/tools from budgeting, the importance of an emergency fund, avoiding consumer debt, insurance, funding college, investment basics, etc. While it’s true he discourages debt of all kind (including on rental property) you can’t go wrong with his overall teaching because it’s very conservative. Huge fan. We’ve offered this class at our church for 8 years running and it’s made a huge positive impact in peoples lives. I’ve seen it over and over again. Take the class!

[Jason Anderson]

@A. Maldonado

I would do it, you and your wife can examine your finances together and come up with a plan to be leaner. If both of you are doing this all that money going to the banks in interest will turn into monthly investments! I only use debt on rental properties, if it doesn’t make money then I don’t finance it.

It’s pretty cool she wants to do this and a great time to come up with a budget. It might sound strange but aggressively paying down debt is weirdly fun. So there’s that...

[Carl Millsap]

@A. Maldanado my wife and I received DR's Total Money Makeover as a wedding gift. Of all the gifts we received it was the best, the waffle maker was a close second. 

I've taught DR's FRU at our church for years and it's truly a game changer for those who execute it. 

I've had to work hard to convince my wife that his teaching doesn't apply when it comes to our investments, but only for the investments. As @Jason Anderson said "If it doesn't make money then I don't finance it."

Enjoy the class, develop a plan with the Mrs. you'll be better for it.

[Bob Reinhard]

@A. Maldonado

Business credit is wise. It is for the business

Personal credit is a function of personal indebtedness and often corresponds to an inability to manage $.

As someone suggested, do both. One for each circumstance.

Much success.

[Alex Kreeger]

@Kenneth Garrett he is one of the largest landlords in the greater Nashville area. He knows a few things about investing in real estate

[Alex Kreeger]

@Scott Mac he is one of the largest landlords in the greater Nashville area.

[Kirk R.]

Originally posted by @Account Closed:

Dave makes money in his 9-5 GIG.   He then invests in mutual funds and no debt real estate.  I dont see a problem there.

I hardly see how a 3.5% FHA owner occupied get you anywhere fast.

Too many people here think a $200 turnkey from Memphis invest is going to get one to the promised land.  IT WONT.

 FAST.  I think too many people think real estate is get rich fast.  maybe all the gurus hawking $10k programs cause this. 

Promised land is probably found after 20 years time of disciplined hsrd work. 

very few decent retirements left.  & depending on stock/bond money gl.... Owning Real Estate or a business or at least non w-2 money maybe best chances to be able to retire in 20.

[Edmondo Morgan Jr]

@Scott Mac He states that the majority of his investments are in debt free real estate so maybe he is a good source.

[Zachary Buhler]

@A. Maldonado Dave Ramsey is very valuable for getting out of debt and REI. Listen to his podcast for a week or two and if you like his message then try out financial peace university. I've never taken the class, but I listen to his show everyday and it's highly entertaining and educational. There's nothing wrong with paying for rental properties with cash, especially in these times you'll look like a genius.

[George Gabriel]

@Scott Mac

Dave claims to have many REI properties. He does also say he bought them in cash. A feat that very few can accomplish. I agree with your point though. Dave doesn't leverage debt for his real estate, so expecting him to preach about the benefits of debt or how to utilize debt to your advantage isn't expected, nor would it make sense.

[Daniel D.]

@A. Maldonado Ramsey made his first fortune in Real Estate. And then lost it because of Real Estate Debt.

I think dismissing his real estate advice, as some have suggested, is a bit short sighted - as he paid dearly to learn it.

“True intelligence is an ability to clearly see another’s point of view without having to accept it” - some smart person

Good Luck!

[Angel Harris]

@Johnny B Bad

I don’t think $200/month is something to laugh at. I think that’s very common and is a great goal for a lot of newer investors.

$200/month can be the start of something much bigger.

[John Edwards]

@Scott Mac Dave Ramsey has over $100MM in paid for investment real estate according to him. He says it’s his favorite investment, even more than mutual funds.

[Bobby Stener]

All of you touting the beauty of leverage in real estate are about to get a real good lesson here in the next few years! It’s glorious on the way up but will rip your face off on the way down. Swimming with no shorts on as mr Buffett calls it