Dave Ramsey got his real estate license at 18 years old, invested in Real Estate in his early 20’s, amassed a $4 million dollar portfolio with a net worth of about $1 million dollars by the age of 26…and then lost it all and filed for bankruptcy. Add me on Snapchat/Instagram: GPStephan Join the private Real Estate Facebook Group: https://www.facebook.com/groups/therealestatemillionairemastermind/ Get $50 OFF FOR A LIMITED TIME: Code THANKYOU50 - The Real Estate Agent Academy: Learn how to start and grow your career as a Real Estate Agent to a Six-Figure Income, how to best build your network of clients, expand into luxury markets, and the exact steps I’ve used to grow my business from $0 to over $120 million in sales: https://goo.gl/UFpi4c Here’s what you need to know. Dave Ramsey got his real estate license at the age of 18 and began investing in Real Estate in the early 1980’s…he’d buy foreclosures, fix them up, and sell them. So what do most investors do when they finance real estate flips? They take out SHORT TERM LOANS to save money. Loose lending practices in the early 80’s made this an attractive option for quick flip real estate investors…buy a property, immediately fix it up, and flip it within 45-90 days. By the time the deal is done, the loan is paid off. This is how Dave made a substantial amount of money, rather quickly, in his 20’s - and much of his one-million net worth was speculated from high appraised real estate values. But here’s where things went wrong…by the mid 1980’s, real estate values were artificially high, fueled by tax codes which made real estate a favorable method of tax avoidance. See, many wealthy investors chose to dump all of their money in real estate rather than other assets, which inflated values way beyond where they should be….that was, until, the Tax Reform Act of 1986. This changed everything and real estate values came dropping down as demand for real estate dwindled. At that point, his largest lender was acquired by a bigger bank, who began looking more closely at Dave Ramsey’s loans and determined they were too risky for them to continue renewing these 90-day terms. The bank demanded that he pay off his loan within the 90 days that was originally agreed upon, with no further extensions to given. He had invested in a market that was inflated by investors seeking tax deductions, on short term 90-day loans, expecting to flip the property for a profit. This is the BIGGEST difference between Dave Ramsey is this: I take advantage of long term, 30-year fixed rate loans that don’t change. My interest rate doesn’t go up, banks can’t just call it due anytime they feel like it, and the price is the price no matter what happens. When the numbers work, doing this is very safe and as long as the property makes money, your worst case scenario is usually just breaking even and then having a paid off home in 30 years. If Dave Ramsey had a 30-year fixed rate loan, as long as the properties cash flowed, he could’ve just held them…and if he held properties that he bought in the 1980’s, chances are he’d have a TON of money by now. Not only that, but if he took out 30-year loans, not only would he have very, very valuable real estate in 2018 - but they’d be ENTIRELY PAID OFF! For business inquiries or paid one-on-one real estate investing/real estate agent consulting or coaching, you can reach me at GrahamStephanBusiness@gmail.com Suggested reading: The Millionaire Real Estate Agent: http://goo.gl/TPTSVC Your money or your life: https://goo.gl/fmlaJR The Millionaire Real Estate Investor: https://goo.gl/sV9xtl How to Win Friends and Influence People: https://goo.gl/1f3Meq Think and grow rich: https://goo.gl/SSKlyu Awaken the giant within: https://goo.gl/niIAEI The Book on Rental Property Investing: https://goo.gl/qtJqFq Favorite Credit Cards: Chase Sapphire Reserve - https://goo.gl/sT68EC American Express Platinum - https://goo.gl/C9n4e3