Comments by "Dean Schulze" (@deanschulze3129) on "The Long-Term Investor" channel.

Dave Ramsey believes that no one can use leverage responsibly. The key to building wealth is the responsible use of other people's money.
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@inertiaforce7846 Did you use leverage (a mortgage)? Almost no one can pay cash for a house. I had to talk my son out of some of Dave Ramsey's foolishness. We bought a house in partnership. It's his starter house. He put no cash into it, just his realtor's commission (3% of the selling price). I agreed to give him half of the inflation and half of the mortgage paydown. After he'd been in the house for about a year he was considering selling his share to me. I asked where he got that idea from and it was from Ramsey. Ramsey says to have all your other bills paid off before buying a house. He wanted to sell his share to me and pay off other bills. Me and another friend told him it was a bad idea and he kept his interest in the house. Now after 4 years he has probably > $100k equity in the house that he put no cash into. Plus he gets a share of the cash flow and a management fee for keeping the rooms rented. Dave Ramsey would have talked him out of $100k plus his cash flow and fee. That house now also pays my mortgage (which includes the money I used for down payment and upgrades.) That's all due to refi at < 3% 30 year fixed. A confluence of events that probably won't happen again in my lifetime. Responsible use of leverage is the only way most people can build wealth.
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@inertiaforce7846 How would you buy your house, or would you remain a renter for life?
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@inertiaforce7846 I fully agree with that. But there's no substitute for responsible use of leverage and Ramsey thinks that no one can use leverage responsibly.
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@senseisecurityschool9337 - If you buy negative cash flows you are certainly gambling on inflation in rents or property values to bail you out. If you have residential mortgages instead of commercial mortgages your loan can't be called unless you are in default. As long as you have cash flow sufficient to service your debt the bottom will not fall out on you. My guess is that Dave was using business loans for his business and those can be called any time.
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@Holy_hand-grenade - The key to building wealth is the responsible use of other people's money. Unfortunately Dave Ramsey thinks that no one can use debt responsibly.
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@hokie9910 - OK, but do you understand how to use leverage responsibly? Most people have no chance to join the middle class let alone become financially independent if they don't use leverage.
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