Dave Ramsey local provider RE/MAX Capitol Properties Broker/Owner, Steve Prescott shared what inspired him to get involved with the program.
First time home buyers tend to spend too much money. This is often because everyone is too emotionally involved in the property. The goal is to “steal it or don’t buy it” is a philosophy of Dave Ramsey. Often times the best real estate transactions are to “buy & hold.” You can then buy land in places and buildings in locations that will have potential much later down the road. But not everyone has a long holding period. Therefore you have to determine this upfront.
The rate of return is important to narrow the scope of selection. The cash flow of the property versus the cost of the property is important. It would be ideal to have the property as a revenue generator with tenants for business occupants. Capital gains are going to be the appreciation of the property over time and this too needs to be calculated, but will also take into account the predetermined holding period. Using cash rather than debt is imperative to Ramsey as well but he understands that not everyone does this. Being debt-free is a huge focus of Ramsey’s programs. This is what leads to financial independence.
Here is a great article by Dave Ramsey discussing the “Truths about Real Estate.” This is specific to home buying and dives into the pros of renting versus ownership and also dives into the importance of a debt-free approach. We also offer an array of opportunities to gain lessons from Dave Ramsey and encourage you all to give us a call at 307-635-0303.