Should I Let My Buyer Pay Off Their Loan Early?
ฝัง
- เผยแพร่เมื่อ 19 ต.ค. 2024
- Say goodbye to debt forever. Start Ramsey+ for free: bit.ly/35ufR1q
Visit the Dave Ramsey store today for resources to help you take control of your money! goo.gl/gEv6Tj
Did you miss the latest Ramsey Show episode? Don’t worry-we’ve got you covered! Get all the highlights you missed plus some of the best moments from the show. Watch debt-free screams, Dave Rants, guest interviews, and more!
Want to watch FULL episodes of The Ramsey Show? Make sure to go to The Ramsey Show (Full Episodes) at: www.youtube.co...
Check out the show at 4pm EST Monday-Friday or anytime on demand. Dave Ramsey and his co-hosts talking about money, careers, relationships, and how they impact your life. Tune in to The Ramsey Show and experience one of the most popular talk radio shows in the country!
Ramsey Network (Subscribe Now!)
• The Ramsey Show (Highlights):
www.youtube.co...
• The Ramsey Show (Full Episodes): www.youtube.co...
• The Dr. John Delony Show: www.youtube.co...
• The Rachel Cruze Show: www.youtube.co...
• The Table with Anthony ONeal: www.youtube.co...
• The Ken Coleman Show: www.youtube.co...
• The Christy Wright Show: www.youtube.co...
• EntreLeadership: www.youtube.co...
![⭐ฮิตในTikTok!! ( มะมะมะหมูเด้ง MooDeng ) Ver. แดนซ์ ReMix BY [ ดีเจกิต รีมิกซ์ ]](http://i.ytimg.com/vi/4noyAoMa7bQ/mqdefault.jpg)
Interesting- you often don’t hear the lender’s side of people paying off their debt early. Just goes to show how much money you can save by paying off your debts as soon as you can.
Finally, a real question.
Yeh. I liked this
Or just don't go into debt period!
Yeah that is why when I sell real estate to an investor seller financed I do interest only loans.
@@edwardrhoads7283 you’re saying you only let them do no down payment loans??
Previous caller:
“Hey Dave how do I pay off my commercial property worth $700k”
The irony of this call... His buyer is working the baby steps. 🤣
I guess baby steps are what you take when you begin his program, then when you get big enough you take predatory steps.
@@rickshaw3397 Haha, exactly what I was thinking.
@@rickshaw3397 Nothing predatory about owner financing. It's actually the opposite of predatory.
@@sc2thrashmetal I'm not talking about owner financing, I'm talking about, the people are wanting to pay off early because the guy is taking them on the interest rate. 45000 in interest over one year! They found a better interest rate, wants to pay the guy off, hes threatening the people with lawyers just for wanting to pay it off. He doesnt even want the property. He gets rid of property and get the money that was asked from property and they get the property. But he wants it all, obviously a baby boomer. They're the worst
Hahahaha 😂😂😂
I like the questions that are unlike the ones I've never seen Dave answer in the past. And this is one I've never seen
We all learned from this one
Hi Spammer! How’s it feel to be hated like Casey?
Right... this was a good one.
Yea a lot of the calls are just repeating the baby steps to people haha
Never ever get a loan from someone who won't let you pay it off early. You are signing your life away.
That's the way I do all my real estate loans to!
Well you can pay it early but you also pay the entire interest too
We bought our home on a land contract and this is precisely why I asked for them to put a “no early payoff penalty” clause in the agreement.
Well done! No bank would ever agree to that!
Smart
Next video: "My lender just penalized me for paying the loan early. What should I do?" 😂
Hahahaah omg
It’s usually not a penalty it’s just part of the loan.
lol
It’s turning into a theater of the absurd.
more like "my employer fired me for getting pregnant and his name was david ramsey"
Everyone who is calling the caller evil have no sense of perspective. In any other circumstance, the caller would have received the value of the building in cash. He would then be able to invest his earnings and recurve far more than 6.5% . Because the buyers couldn’t pay in cash or get a loan, the caller could not invest the full value of the building. Therefore, he deserves interest from the buyers. They signed a contract.
Most of you guys clearly never understood the question. The seller provided owner finance on the property.
The loan term is over ten years, but the buyers wanted a provision to settle the loan early and not have to pay the interest charges for the full ten years.
The seller agreed on condition that they do not settle the debt within the first two years and this was included in the contract by his lawyer. One year has passed and now the buyers want permission to settle the debt.
This means that the seller will lose all the interest he was supposed to collect for the second year. The seller could either force them to honor the contract and wait for the full two years to elapse or he could be lenient and negotiate with them a reduced penalty(ie. Lower than the interest they were going to pay) ...which is Daves advice.
Most of these people have no idea what they're talking about in the comment section. They think owner financing is the same as the bank collection on a car loan smh. Thanks for making an informed comment.
Interesting.. I’d probably give them a reduced interest rate on the second year. Maybe add half of what you would have got in interest and let him do it.
@@sc2thrashmetal Yes!
I'm in a similar situation right now. I have a mortgage note on a multifamily property I just purchased. I have no penalties for paying it off early though.
@@ChristianSedaPlays
It sounds easier for us to think it would be better but he is now in a situation where he has taken all the risks and the returns are probably not going to be above inflation.
He was mad to do what he did.
I feel like being morally against debt should go both ways right? Debtor and creditor?
Why, if someone wants to give me free money I'll take it. There is nothing immoral with a voluntary contract.
This case was more like a mortgage (since there was true value to back up the loan), not a consumer loan.
@@jeraldmartin1789 i know. And I personally tend to be ok with that. But Ramsey, from what I understand, doesnt like any debt. But he goes the easiest on home mortgages. Thats why he opts for telling callers to pay off their mortgage if they can instead of investing the payoff amount. Even though investing the payoff amount would be mathmatically more beneficial than paying off a 3% loan.
@@addisontow3856 The exception to his no debt rule are mortgages. The loans are collateralized on an asset that (at least over the long term) is appreciating in value. Consumer debt, the most common form of debt, is neither of those things which is why he is so opposed to them.
Even then, he says monthly payments no more than 25% of your take home pay on a 15 year term, and to pay it off as early as possible.
People are forgetting that the buyer needed seller financing before this, which means the banks saw them as a risk. This guy agreed to take on the risk at a higher interest rate, providing them a means to purchase the property. The fact that he wants some return for taking the risk on the buyer, who because of that is now able to refinance, isn’t counter to Dave’s philosophies. In fact, had the buyer called Dave and said “hey I want to buy a $750k commercial property with only $50k down and banks won’t touch me so I need the seller to finance me at 6.5%” he would have told them they can’t afford it.
I am human, not profit
Lender: "At the end of the day its just business."
Buyer: "At the end of the day its just business."
No hard feelings from either side. They both want to make/save money, it’s just coming to an acceptable agreement like any other purchase. Seller wants to maximize and buy wants to minimize.
Debt is dumb, cash is king...except when I am owed interest. Then debt isn’t so dumb.
I guess he meant that paying a debt is dumb lol
Issue here is that prepayment was contractually prohibited.
@@MrJumpingmaniac that's why before one signs for a loan, make sure there's no pre payment penalty in contract.
@@marlonrolle9176 clearly they had talked about it before signing the contract, both parties were above board about it, just the situation has changed.
That’s shady. I would never sign my name off to something I can’t pay off early without penalty.
Nothing shady about it. They signed a contract that did not allow for prepayment before two years. No one held a gun to their heads and made them sign. Presumably, at least...
Mortgages used to routinely have prepayment penalties although it's pretty uncommon anymore. If you get a mortgage, I'd still recommend verifying with your lender that there no prepayment penalty in case they try to sneak one into the contract. Bottom line is don't sign something you don't understand.
@@morrigan908 Where in this video does anyone said the contract said "they cannot pay it off before two years"? A lot of people in the comments are asserting this without it ever being stated in the video. If that language was actually in the contract, this dude never would have called Dave in the first place.
@@darksoulenvoy932 at 20 seconds and one minute 24 seconds
@@darksoulenvoy932 You're extra special aren't you? Try 0:18. "... we had an agreement that they would be able to pay it off after two years."
It is a high risk loan for someone who didn't qualify for conventional financing.
I just miss Chris man
I’ll never forget the time that the audio wasn’t adjusted and when he spoke it was super loud 🤣🤣🤣 his voice is already loud and deep as is.
Bring Chris back!
Why’d he get removed from the show??
@@yogibear2399 for screwing around with other woman
He needs his own show not affiliated with Ramsey
This is American Greed at its best !!!!! He’s not worried about the 5-600k plus he’s gonna get in cash for a property he no longer wants he’s more worried about the money he is gonna lose in interest.
@Jay Dee he has made money already off of the interest he has charged them for the first year. They are asking to pay it off earlier than the 24 months that was originally agreed upon. I have no problem with someone making money but his BS ways are what I’m saying is American Greed even Dave said oh I wouldn’t let them pay it off without some kind of penalty let’s say 1/2 of the interest still owed. I call BS on this let them pay it off charge them a minimal penalty fee and move on. Sounds like this guys interest is how deep he can get in their pockets that’s probably the reason they are trying to pay him off.
Dave, what advice would you give to the borrower of this loan ...?
He will never answer you......
Rice & beans and pay it off early 🤧
Don't sign contracts that prohibit prepayment.
Beans and rice, rice and beans.
likely the same has he gave the lendor. find a cheaper interest rate, work with the loaner to create a win-win, and pay down the loan as fast as you can.
Unless it's within a contract, shldnt loaners let their borrowers payoff early regardless of unpaid interest? A loaner not letting a borrower payoff because of unpaid interest seems kind of of shady to me.. just saying.
I agree. Imagine if banks could do that... just say “no, you owe us interest for 30 years.”
It’s not kind of shady. It is shady and in my eyes robbery. Lending with the intent to only collect interest is not very moral
@@aakashk530 no bank is moral, they dont do favours its all business
Yeah, this phone call seems to be going against a lot of what I've seen from Dave in the past. Tbh, it's kind of upsetting to see Dave helping a lender figure out a way to take as much as they can from a borrower..
It is within a contract.
Anthony’s face when he realized he was a asking a silly question 🤣😂
It seems hypocritical that Dave preaches paying your debts early, yet he is telling this lender to charge a penalty for early payoff.
No it's not, because the lender took a risk. It's the lender's money and both parties agreed on the deal beforehand. So the lender would actually get more money if he would stay with two years. Therefore to not lose the whole profit and on the plus side he gets his money to reinvest he can go home at least with some. Otherwise the borrower would had to pay more either by paying it off in another year like the contract said or even more if they would had gone for the whole amount of years that the loan was originally set up. So the borrower wins anyway while the loan giver still goes home at least with some profits and does the borrower a favor actually that way.
They signed a contract
I'd let someone pay the loan off early, for no pre-payment penalty. Good for them, and I still get the money I loaned them (with the interest they've paid up to now).
And you can reinvest your money. I'd completely disagree with Dave on this one.
The seller (caller) banked on those two years of income at high interest. If he was going to let the buyer stop paying interest any time he wants, the building would have cost more. The building produces $8k/month and he sold it for $750k? That only makes sense if you’re going to receive more money from carrying the note for at least a couple years.
I won't be buying a house from this guy. I have to pay extra money to pay off early . I won't make that deal with anyone. Pure greed!
You'd be surprised how many loans have pre-payment penalties. You just need to read and I understand your contract.
it was a commercial property for a business, not a house.
Great Quote, Act like you trust people, but do not.
Dave, telling the bank how to get the best out of the deal. Never thought I would see the day.
Not the bank
It was an individuals contract. The lender was promised at least two years worth of interest. That is part of the deal. He might have never sold the property if he was not guaranteed interest on the loan. People don't just give loans to be nice.
That is correct. Banks do not just give loans to be nice. They do it to make money. Hence, he is now the bank.
This is not logical to me. If you charge 6.5% interest, that's how much you value you your money now compared to one year from now. If they pay off early, it should be just as valuable to you.
We’ve all been given grace, so we should give some kind of grace. I like Daves advice.
I'm 29 and been watching your videos for a long time. This is one of the only times I've seen you go into detail on what to do with the money once you have it. I think it is good to hear because it for me allows me to build a picture of some of the things I can do in my dream of being wealthy.
If you are really serious about investing and getting wealthy you need to educate yourself. Dave is a fantastic source for people that just want to save and invest with low levels of risk and to get them self debt free.
I would suggest sticking with Daves advice and approach. To then add on top of that start with the book "Intelligent Investor" that is about value investing and was published in 1949. It is the approach that Warren Buffett used.
Watch some youtube videos on Value investing the channel Sven Carlin. So that means you can use Dave Ramsey investment approach and Value investing as well. Watch some Warren Buffett videos as well.
Isn't the buyer supposed to pay off the loan as soon as possible? If the buyer called Dave, Dave would tell him to pay if off as soon as possible.
Yeah but the contract said he can’t.
It doesn’t sound like he needs the interest, be kind!
greedy.. dave is telling him how to break the baby steps lol
The best thing for the caller would be if there's a clause in the contract that penalizes the buyer for paying early. Otherwise, I don't see how he could legally refused repayment. I would think that might put him in legal jeopardy. That could be seen as him forfeiting the loan and they may not have to pay it at all.
Absolutely not......the loan terms are the loan paid off evenly over a 2 year period. Its the responsibility of the people who took the loan out to ensure they had the option to pay back the loan early with no penalty
It depends on jurisdiction. The contract is exactly what it is. I lend you money now, you will pay me back more. Period.
Prepayment of the loan is a deviation from the agreed upon contract. Pre-payment penalty is not included in the contract, but neither is a prepayment option.
Guy calls the Dave Ramsey show asking if he should let his buyer pay of a LOAN early? What do you think he's going to say? "Well, we don't believe in loans here so what do you expect buddy?"
Unless it specifies pre payment penalty In the contract can he really charge extra? I don't agree with dave on this one... buyer should be able to just pay off principal left owing. Seems greedy to me.
it specifies it in the contract. Dave is actually saying to be more lenient than the contract.
Dave is assuming the buyer has a better loan offer now. Maybe the buyer had other monies tied up at the time of the commercial property purchase and now the buyer has the cash.
So
@@cynthiagraham4046 so the buyer could be saving $45k/yr in interest vs $24k/yr in interest. So his counter offer to paying it off prior to two years in the contract agreement could be more than what Dave recommends.
@@famousamos1 it is not the buyer’s decision. The seller gets to decide if he will LET the buyer payoff early. That is the question Dave is answering. The seller loses money if he lets the buyer out early. The buyer should stick to his word. Integrity still counts with some of us.
@@cynthiagraham4046 no I guess you misunderstood my comment. I get it that the buyer agreed to the seller to buy the commercial property with financing for 10yrs and not to pay it off for at least 10yrs. I’m just saying Dave is giving advice based on only assuming the buyer found a lower interest rate loan. I didn’t hear once from Dave say if the buyer has cash as the reason he wants to pay it off early that Tom the seller should offer the buyer to pay more to terminate the contract early. Again if buyer has to pay $45k in interest still because there’s 1yr left that the seller says sure you can pay it off early but for $35k interest not the $20k interest Dave is suggesting because he’s only assuming the buyer has another loam offer with lower interest.
@@famousamos1 You would be right, but Dave did say that he should try and figure out where they got the money.
Lender doesn’t have to be nice at all here. The buyer owes him the full interest for another year. Then again, it’s probably reasonable to work with the buyer lest something go awry later on and there’s a problem requiring litigation. Not a good idea to turn down taking back $700k you’re owed because who knows what that buyer’s situation will be tomorrow. Dave’s advise to negotiate a prepayment penalty sounds like the best route here for both parties. The lender took a huge risk and deserves to be compensated for it. Based on the numbers here, $20k seems reasonable and $15k would be a gift.
Notice Anthony listening carefully during the first half of the call, then asking questions and learning. I wish the current co-hosts did this.
No mention of the tax impact. As a seller, you have to consider the impact of depreciation recapture which is calculated in the year you sell and the capital gain is taxed in the year you receive the payment. This is all added to your other income and could push you into a higher tax bracket.
Greed vs Honor
What Dave is missing is terms of the original deal, if there was no pre payment penalty in the original deal might not be able to charge the penalty, the contract you signed up front is all that matter here as to what you can or can't do, you don't just get to make it up as you go along
Everyone here wants to be wealthy but are mad at the person who has made his wealth and wants to manage it well. Those are goals. When you are finally in a position to own a commercial property that can be sold, then you will want to make sure that it makes money. You don’t buy commercial property to not make money. Believe me, if it was an investment company with this property, that buyer would never have been given the opportunity to own that property.
Any good lender issues the terms for early repayment in advance. It shouldn't event be questionable.
Y’all this weird for Dave to say because of his baby steps plans but his plan can’t over ride a contract they willing signed
That makes sense when you are the financier you lose out on the appreciation of the property because that value is transferred to the recipient of the mortgage. But when you rent it out you keep the monthly income plus you keep the value of the property itself while it appreciates
Great advice 👍
It's all about time. Interest is the price tag to purchase money in the now that you dont have.
Interest is a reflection of the risk of losing the amount loaned and the amount of time it takes to get it back. However, it goes both ways.
The lender is doing so for a profit and rightly so. However, the other risk is that their profit is reduced if the borrower pays off their debt quickly.
If that is the case , why doesn’t the bank owns actual real estate? And own only mortgages?
Confucius says
“If you pay your debts off early, you will be sued and will need a lawyer.”
It is called a business deal. Why would I lend you 750k? What Is in it for me? INTEREST. sheesh
@@clarifyingquestions ... and the interest payments STOP when the loan is paid off. Why would I want to pay YOU more money than I have to if I have the means to pay off the debt early? It's a business deal for me too ...
@@2MasterBuilder2 You would not, so read your contract before signing as in most cases you will be required to pay a penalty if you pay off your loan early. Of course you would not want to, so up to you what you agree to do. It s just business.
I'd look at the appreciation of the house in value and seek that as a minimum for compensation for early payoff. The property has an internal rate of return that the seller could have made had he kept the property as a rental.
Commercial property, I can see trouble brewing!
Let them refinance if they pay your loss of interest.
so you have a deal/agreement and yet you are calling in..... seems really simple. Pay off early with 45k fee or just wait two years. what's the point of the contract if you don't use it?
Sure, he can do this if he wanted too.
But as long as two parties agree to amend a contract, I see no problem.
Why not just ask for the alternative rate and offer to match that?
because if goes the panlty route, he can reinvest the money. it would be more money for him
Because he can take his penalty and invest his money elsewhere.
2-3% is nothing
Because inflation is more than 2-3%
This call makes Dave’s morals crystal clear...
care to elaborate? not attacking you, I'm really curious what you mean
@@TR0LLREIGN
He is not exactly being a nice person with those comments and cannot see what is happening to the caller in this and wants to use it to attack Dave.
So if they were paying cash for it then what would you do?
He would have taken the money. The borrower has already padded his greedy pockets by $45K over the cash price and he still wants to charge a penalty for prepayment. Unbelievable. He should be happy that his property is being paid off and he managed to collect $45k in one year. What a greedy scumbag ...
When you have a renter you have to fix the toilet / ac / plumbing / elect etc..
Not always, depends on the contract.
You build that those costs into the financing of said investment.
Missed the big one what does the contract say?
I have never heard of a lender would not let you pay off a debt early. Is that even legal? The lender says "Not thank you. I don’t want you money."
Tax implications?
Dave is just saying this because he's a property owner. Unbelievable
Unbelievable in a good way or bad? I don't get it
@@bonez2450 very bad scumbag way
Or he could have sold the property to someone who just paid him outright.
@@SheilaNorthcutt ... and he would have only gotten $700K for it. He's already collected $45K in interest over the past year and he's about to get the full pay off amount ...
I'm a little puzzled that Dave didn't say, "Of course a lender should let a borrower pay off the debt early." Is the Dave Ramsey Plan only for borrowers, not for lenders?
Not if they signed a contract that stated they could not prepay before two years. Why does everyone here seem to think that contracts should be violated just because they don't personally like them?
@@morrigan908 Good point, but the lender is asking whether to dispense them from that requirement, and I would have thought Dave would consider it a bad requirement, since it obligates people to stay in debt.
This bugged me too. It's contrary to his entire system and makes me wonder how committed Dave is to the Baby Steps. 🤣
@Joseph Dickson At the same time, the lender has incurred some expenses -- maybe altered the selling price -- in view of receiving that interest income. So I can see both sides here.
They have no problem with them paying it off but there was a agreement for a two year profit the pay off is now before than
I would also get a new attorney, attorney should be putting prepayment penalty in original contract, SOP in many instances.
I sounds like he as a client was softballing the deal to make it easy. I think it simply is not worth the risk that he has taken for such a small return.
I would be aiming for 12% returns. In my business when I sell assets such a deal would be looking at about 20%.
What the seller was doing was absolute madness.
I thought Dave wanted ppl to pay things off. 🤔 sounds like he is siding for the guy to get more money what does it matter if he got his property pay for?
Well, Dave is also a man of his word. A contract was made there, don't forget that.
Exactly. Interest is an evil tool used by the rich to stay rich and to keep the poor poor by making them pay for something more than it's actually worth, even if they don't need the extra cash.
@@pagalhokya then don't get a loan... have the capital and buy the property in CASH. People who don't have cash but want to buy something have no choice but to take the interest.
@@DaMainDude then by this same logic we shouldn’t pay off our cars quickly or our own homes since we have a contract in place with those lenders.
@@lindoindo26 You're missing the point. Some contracts have a clause that disallows early repayment or imposes penalties for early repayment. In contrast, standard mortgages do not contain such clauses, and therefore, you pay no fees or penalties for paying off the debt early
I sold my house land contract but the land contract I end selling land contract to realitor. I fell rip off but I call a lawyer and everything was big cost.
Win win - excellent advice.
Dave and Anthony are so smart
AO is great on his own channel, but he doesn't contribute much when he's sitting next to Dave.
Seller can take payment and invest it at 9-10%
Easily and with a risk that he took on for that property he should have been aiming for 12% returns.
Dave Ramsey: Paying Interest Is Bad idea
Dave Ramsey: Charging Interest is Not a Bad Idea
Because he is not an actual institution he is an individual who stands to lose out. It is really the caller who is putting most of the risk in and getting a low reward for his effort.
Take the money and run!
Dave, I love you, brother, but your advice isn't helpful here The caller is acting entitled to the $45k, but hasn't mentioned a clause that ensures this capital in his name. The caller states that his loanee (borrower) was disallowed to repay the loan for two years, but that the two years has lapsed. The loaner (caller) has no right in contract, or otherwise to reject repayment of the residual amount of the loan. Setting up a negotiation for an early payoff fee is illegal unless expressly claused in the loan contract.
Wow! Did not expect Dave to say this. Kinda douchebaggy. Just let them pay it off and invest the money. Dave always says that u can earn like 12% in a good mutual fund. Very disappointed in this answer.😕
That's in the long term. There's a much higher risk of facing a negative return over just a single year period. If the guy agreed in writing that he wouldn't pay it off that early, then I can see where he's coming from. Still it does seem hypocritical. I don't know.
Ya I agree. I've wondered about some of his advice before. I thought he portrayed himself as a Christian. This whole "try and get as much out of someone as you can" isnt a message I've read from the bible.
@Sagheer Ahmed It's a very bad loan, but the guy agreed to it. Best thing to do is renegotiate. Even if it is greedy for the lender to do this, it is within his rights.
Wow unbelievable.
The guy sounds like a grade A user. This is usery. If he had a early payoff clause he would simply stick with it, if there is no clause then he doesn't get control over when they pay it off. If he wanted to keep control of the property he should have rented it out or kept it.
edit: so caller did mention it was a tenure loan, that changes things. So then his dilemma is "should I accept their proposal to pay the remaining principal" or "do I stick with our contract". Dave's advice is negotiate the payoff penalty, if they still want to pay it off early you are still ahead and can likely get a better rate of return anyways.
Always allow them to pay early.
Take the money, invest it, move on.
It's not cool that he's now trying to switch up on them because he's going to lose out on interest if they payoff the loan early. If I was the borrower, I'd say no way.
You didn’t listen closely did you? The borrower agreed to the deal. The borrower is the one trying to get out of the arrangement. 🤷🏽♀️
@@cynthiagraham4046 Loud and clear. What you didn't pay attention to is him wanting to restructure the deal so he can get more money. Now, keep it moving.
@@DarknessFalls29 Bloop!
@@DarknessFalls29
Get more money how?
If he wanted to get the most money possible he could just hold the other party to the contract and make 45k.
He is taking a loss! Of about 25k, by doing a nice thing.
No you should accept early payment and close this loan, we need LESS DEBT in this world not more.
Take the money and go put it to work elsewhere, 6.5% isn't exactly stellar, If you use the money wisely you can probably go make more than the 45k you "Lost", I don't think there's a need to get greedy here.
There's also a ""Do unto others as you would have them do unto you" to consider I suppose.
Weird not letting payoff things early. Very strange...
Well ain't this ironic lol smh
How come
LOL the attorney won out of this and made the most money
I wouldn't tell him nothing in the conversation. Its just a deal. I signed the contract. Did we agree to a penalty provision in the beginning?. I called your bluff. You just want my $45000
What’s wrong with that? Yes, I want what you agreed to pay me.
45k in interest..I would get another loan too. Who wants to pay all that interest.
I’m from El Paso 😂 wonder what commercial building is worth almost a million
lol I was thinking the same thing
Lots of them probably to be honest
Maybe in the West Side? I'm from El Paso too.
@@yashdes1 i just wanna meet the owner and give him a high five for paying it off sooner haha
From there as well, more than you’d think lol commercial real estate is expensive especially west side
I would charge a $20k early repayment penalty
That’s fair. I mean this buyer got a property that produces $8k/month for only $750k; he should be plenty happy. That type of return in commercial real estate is uncommon.
just take the money!
This is probably the most shady call I’ve ever heard on here and advice given from Dave.
Ramsey is turning greedy and shady...
Idiot. They had an agreement and they are working out a solution so both sides can win. What if you were the landlord? Your okay with losing $45k after financing the loan for them
@@fkillah if there is nothing in the contract about a penalty of paying it off early I have to be
@@qwkartist did you even watch the video? they mentioned multiple times that there was a penalty for paying off the loan early.
goodbye- my debt forever.
Closing to zero debt thanks to the staff. 🍻
First time I see Dave being stumped.
I will take the money and invest as I am in your situation but my borrower can only pay next year. Commercial property, I take my cash. Next year my cash is losing more purchasing power. Right now I will buy this stock NLST $50k out off the $700k and MMEX another $50k. The rest, cash on the sideline.
Love how Dave knows how to help Investors big and small. Been there, done that, got the t-shirt
I’m tired of seeing you.
Man you are everywhere. Stop following me
@@rg8162 🤣🤣
SPAMMER!
Off course they got a better loan
Are you even allowed to not accept early repayment of loans? Is that legal?
@@smileleialoha Do you know if that is a common clause to include?
@@minkusmaz It's a grey area and not an issue that often comes up. Financial institutions are usually more than happy to accept early payment from borrowers. However, an agreement between two private individuals... they should have a clause in writing if the borrower wants to pay early. Absent any clause, I'd have to side with the lender here strictly from a legal perspective. If you want to be a good guy then you accept.
@@rob-fb5xs Yet another gift to high finance from the plebes
Many commercial loans have a prepayment penalty. Especially SBA Loans.
69% interest rate?? Did I hear that correctly? What a greedy lender.
You did not hear it right.
6.5%
@@XFizzlepop-Berrytwist you’re right, thanks!
@@almi2232
No problem.
"Dave, do i want my money back?" 🙄
Daahhhhhh, person is right to pay it off
Ignore deleted one if you can still see it lol, read your comment wrong
That is not the question. This man sold another his property and the person agreed to a contract. The second agreed to payments for a minimum of two years so the original owner earned his return. Simple.
I thought the whole idea is to pay off loans as fast as you can?
It is.
It is but you clearly don’t comprehend this situation. Watch it again
The goal is to make money, and if someone is in debt to you then the best way to make money is have them paying interest for as long as possible. If the contract states they must pay for two years then that is that. Making the interest is why lenders do it, it's not a charity.
Wow. Sticking the screws to people who want to pay off early. Classy
listening to the whole video before commenting is classy.
I did. Still voiced my opinion. Fancy that.
Well the lender only sold the property under the expectation that he would receive interest, this is not a charity.
And I disagree with that line of thinking completely. If he wanted that extra 43k then it should be in the asking up front price. Yes I know how loans work, and I will always and forever think it’s a slimeball move to punish people who want to pay a loan off early and are penalized for it.
Dont get stuck in the mud
Finally for the first time we get to hear Dave stand up for the big guy instead of the little guy.
Usury
Wow 🤩
Guy sounds greedy to me