Conventional loans can be used to flip houses but it’s not the predominate financing source for a lot of flippers. Shorter term loans are much more favorable to a flip by evaluating the liquidation value and such and has much less red tape than conventional loans. And they close much faster than conventional loans would. The financing used for flips has never predominately been 30 year notes for people doing multiple deals. The risk Dave mentions that bit him may not happen exactly to many today as it did to him but the risks still remain even if using conventional loans such as being able to float the costs for the time required and the like. But people get really attached on the semantics to discount his opinion.
@Jumbo Jones no his voice sounds rough like a smoker and the country accent in itself makes people sound older, experienced and sometimes, in many people's opinion, not as intelligent. Although, I know that's not true. I was born and raised in the South by the way; however, I don't have a southern accent.
I know when there’s a bubble in real estate is when everyone wants to start flipping homes or everyone wants to be a realtor. There are two types of home flippers. One that just buys a home and try’s to sell it the next day. The real home flipper is one that buys a home at cheap discount and fixes the home up to bring higher value.
Thank you! I made a comment about those driving up prices by buying and immediately trying to make a profit, like the next day and was told that I’m just being hateful for no reason.
Maybe Mom is anticipating having to go into a nursing home at some point in the future. In years past, you could wheel Mom to the front door and then have her sign everything over to protect her assets. Now, I think it is five years prior to entering the nursing home.
@@gladysmonje8113 who told u I'm here becuz i need an advice ??? Lol im just hear to know the story Do u watch his videos for his advice??? Mosy eho clicked on his videos are curious about the story becuz of the titlw of the video..... not becuz of his advise
Flipping houses changes my life financially. It is not easy and it is not for the faint of heart but it is the fastest way I know of to make big chunks of money in a relatively short amount of time.
@john Smith Working on that now. Have never really had the desire to get my license as I don't use realtors majority of the time. Sometimes I can't avoid it tho. But since its harder to get deals now I am working on that.
The biggest mistake people make with flipping houses is jumping in too soon without doing the proper research and studying which houses could ACTUALLY be profitable with some work. Also, Dave's advice about doing flips with your own money is really smart. That way if the renovated house takes a while to sell on the market you aren't losing the mortgage payment every month.
You can wholesale. I did hundreds of wholesale deals throughout the years in Florida and I don’t even live in the US. Don’t borrow money just assign contracts.
Omg if I get a penny for everyone that wants to flip houses or start there own business somewhere else I would be a millionare. Not everyone can be business owners.
I agree that not everyone is built as business owner. As a small business owner, you should not chase money. What you should be doing is providing good products and services. Money will eventually follow. Just ask Jeff Bezos Amazon or Costco. They wouldn’t question twice if customers want to return products.
They tried. I saw the shoddy work done and cheap materials used with flipped homes after the housing crash over ten years ago when I was house shopping in 2008. I’m sure a lot of that is happening now with the temporary demand.
Flippers affect everyone around them. Plus, when you try to sell your property, buyers look at the pics of those nearby flips. Since, you didn't rip out everything, and replace it with white veneer, and communist grey, they have little interest in it 🙄. So, prospective buyer says it should sell at that fixer auction price, that the nearby flipper seized upon. It's more complicated than interest rates and supply of homes on the market. Houses are to live in, sometimes you do have to rent them out because of a personal circumstance that can arise. But now, what options do people have left? Rentals that rent for the same as a mortgage payment. Why? Flippers push up the rental price of everything, houses and apartments. Then, you are forced to have to rent out the home, you are trying to sell; its a cycle. Investors around you love it, they do only minimal maintenance and improvements, because they never intend to sell their properties, and they keep upping the rental price.
Start doing "additions over garages". Ummm, yea, you need to be a very experienced contractor to do that correctly, and in some states legally. I don't think now is the time to be a flipper, the cost of houses AND materials is too high!
I just started a side hustle. Where should I park that money for the next five years so I can use that money for a down payment on a condo/house? Thank you
I love Dave Ramsay but sometimes I feel like his investing advice is too safe I mean If your young you could afford to do bigger risks so why make 10% on your money when you could make 20%,35% or even 50% sheeesh maybe even 100%! ( yes I know that’s crazy) and I agree that most people should not borrow thousands and thousands of dollars but here’s a scenario say a guy instead of investing traditionally they invest in a product that they could resell and let’s say each sale they make they can make 35% profit yes it is more risky but your hard work will pay way more and be worth your time and can be something you could learn new skills in. As long as your young , don’t have a wife, and have no kids you could afford bigger risks that will be worth your while
Dave gives advice that is best for 90% of the people. Generally people should be safe and consistent for the most guaranteed path to a successful financial future. I agree with you though, some people should definitely be more risky.
@@jdek88 yes! Thank you for understanding and I 100% agree with you most people should be doing relatively safe investments but me personally I like to take more risk but not ultra high risk like gambling or whatever haha but I do like making investments on products like electronics and flipping them for a profit it could be lucrative if you know what your doing but besides that what you said i 100% agree I’m glad people can see what I’m saying
Risky business. You need to have kind of grown up with that speciality in the family. Make wonderful money doing it, but it’s risky if you don’t know the right people. Contractor wanted to remodel my kitchen on a home I just purchased using a heloc. No thanks. Lol
For the unsure, borrowing on a HELOC is not cashing out every penny of equity. You borrow just enough to afford the first payment to the Hard Money lender to get the renovations started. Once that's finished and you have already vetted a renter and taken downpayments and first months rent, you pay that money on the HELOC until its gone. During the same timeframe the Hard Money loan is refinanced into a conventional loan. Rinse, wash, repeat.
To clarify everyone's questions and comments. I have over 400k equity in my house. So I have a 160k HELOC plus additional cash on hand. That allows me to buy distressed properties for cash fix them up and sell them for a profit. I have the experience and skill set in construction and really nothing phases me in terms of work that needs to be done to fix a property. If you rely on contractors to do work and don't fully understand construction, it's probably better to save up cash before you do any flips.
@@crystalhull1677 Borrow the $$ against the house at the lowest interest rate in the history of interest rates. He will pay 800 a month mortgage and the bank give him 160 thousand dollars right now......
let me re phrase, people need to learn to have the right amount of ambition and grow a business on a slower basis and follow other successful businesses and people and understand it aint gona be a huge sucess overnight , takes years and even decades, my apologies to people in the comments , i did not phrase my original comment properly.
Say goodbye to debt forever. Start Ramsey+ for free: bit.ly/3g11A2V
Caller: Should I start flipping houses?
Dave: Have you seen the prices of tubafors?
dam tubafors messing everything up haha
Dave missed talking about how he signed up for 90 day mortgages and not 30 year mortgages. HUGE difference
When you're flipping, you're not getting 30 year mortgages. You're getting shorter term loans, or interest only loans
@@buddydellatorre8394 That is 100% not true.
I KNOW he always compares it to everything that doesn’t apply. Apples to oranges
Conventional loans can be used to flip houses but it’s not the predominate financing source for a lot of flippers. Shorter term loans are much more favorable to a flip by evaluating the liquidation value and such and has much less red tape than conventional loans. And they close much faster than conventional loans would. The financing used for flips has never predominately been 30 year notes for people doing multiple deals. The risk Dave mentions that bit him may not happen exactly to many today as it did to him but the risks still remain even if using conventional loans such as being able to float the costs for the time required and the like. But people get really attached on the semantics to discount his opinion.
Dave, your screeners should always coach callers to talk directly into their phone. You do this sometimes hal-way through the call. Love your show!
Dave’s comment here about how borrowing money makes people do bad deals is very good advice.
Yep 👍
It's horrible advice!!! It's called leverage
This guy is 30? Sounds like he's 60.
There’s always a comment like this on videos where the person has a country accent.
@@graysonk363 charlotte is a semi big city tho
@@victrmeleth so is Nashville but tons of people there sound southern
@Jumbo Jones no his voice sounds rough like a smoker and the country accent in itself makes people sound older, experienced and sometimes, in many people's opinion, not as intelligent. Although, I know that's not true. I was born and raised in the South by the way; however, I don't have a southern accent.
Brit here and I like a nice Southern US accent
Start flipping the car instead. Lot more fun.
How about buying some better phone service?
Lol 😂
I know when there’s a bubble in real estate is when everyone wants to start flipping homes or everyone wants to be a realtor. There are two types of home flippers. One that just buys a home and try’s to sell it the next day. The real home flipper is one that buys a home at cheap discount and fixes the home up to bring higher value.
Thank you! I made a comment about those driving up prices by buying and immediately trying to make a profit, like the next day and was told that I’m just being hateful for no reason.
@@vegasxventures You’re welcome. Those are type of people whom are insecure about themselves when they have to insult you for a comment.
Yes you have to build sweat equity
Maybe Mom is anticipating having to go into a nursing home at some point in the future. In years past, you could wheel Mom to the front door and then have her sign everything over to protect her assets. Now, I think it is five years prior to entering the nursing home.
Yes, its five years.
You can tell in his voice he wasnt happy about daves response
More and more people are not happy with Dave's responses he's sounding more arrogant per episode and most kf his advise are bs now
@@MonicaHolly143 yet here you are...
@@gladysmonje8113 who told u I'm here becuz i need an advice ??? Lol im just hear to know the story
Do u watch his videos for his advice???
Mosy eho clicked on his videos are curious about the story becuz of the titlw of the video..... not becuz of his advise
For sure he’s not going to put the house back in his mothers name. He is going to get an equity loan from it under his name.
Flipping houses changes my life financially. It is not easy and it is not for the faint of heart but it is the fastest way I know of to make big chunks of money in a relatively short amount of time.
@Johnny Five
The scheme is the fact you have been brainwashed into thinking the way you do.
@@JuancoPRoFlow
Yep
@john Smith
Working on that now. Have never really had the desire to get my license as I don't use realtors majority of the time. Sometimes I can't avoid it tho. But since its harder to get deals now I am working on that.
The biggest mistake people make with flipping houses is jumping in too soon without doing the proper research and studying which houses could ACTUALLY be profitable with some work. Also, Dave's advice about doing flips with your own money is really smart. That way if the renovated house takes a while to sell on the market you aren't losing the mortgage payment every month.
If you’re asking then you shouldn’t.
The world doesn’t need another house flipper.
This x 100.
This was literally what I was asking myself yesterday!! Praying for God’s guidance. & trying to pass my real estate exam
U don’t need a license to flip houses
@john Smith Agreed. And I'm sure God has a lot more on her mind than micromanaging someone's real estate career.
@@mugiwara9507 I think he meant be a licensed real estate agent so that you can list and sell your own flipped homes.
Real estate exam - piece of cake
@@mugiwara9507 LOL! I know. I plan to represent myself on the houses I want to flip. So I can list and sell my own flipped homes.
Who calls Dave Ramsey to ask about going into debt? This is Dave Ramsey, you already know the answer to that question
He was planning to use a HELOC on his moms home to finance this endeavor. So not entirely the brightest here
HODL the house, don't even bother flipping it.
mad i subscribed to this channel only yesterday and the next day the topic is the thing i want to do😂👍🏻
*thankful
So go out and do it!
They make house flipping so easy and glamorous on TV but not everything is as it seems.
You can wholesale. I did hundreds of wholesale deals throughout the years in Florida and I don’t even live in the US. Don’t borrow money just assign contracts.
Do not go out and build room additions as a handyman. You totally need contractor license.
13 states dont have contractors licenses. I am in Wyoming, we dont
Ken always has great advice.
Omg if I get a penny for everyone that wants to flip houses or start there own business somewhere else I would be a millionare. Not everyone can be business owners.
For real, why chase your dreams, I’m sure everyone is better suited.
@@jonhill0356 more like chasing greed than dreams
Online business owners
I agree that not everyone is built as business owner. As a small business owner, you should not chase money. What you should be doing is providing good products and services. Money will eventually follow. Just ask Jeff Bezos Amazon or Costco. They wouldn’t question twice if customers want to return products.
They tried.
I saw the shoddy work done and cheap materials used with flipped homes after the housing crash over ten years ago when I was house shopping in 2008.
I’m sure a lot of that is happening now with the temporary demand.
Basically your unemployed, have no money, no construction experience, and want to flip houses. How about you look for a job first.
It's 2007 all over again.
Where did Kyle go? Another classic call where the caller starts and then I think they hang up on him and do all the talking..ha
Dave has a button. You can see him use it on every call. Keeps the show moving.
I would flip houses, but I don’t have the proper tools, also I’m scared for the animals that the house might land on
That's funny.
🤣🤣🤣🤣
Not only did I fail at flipping houses, but now I'm upside down on my car.
@@erikrohr4396 oh no
Flippers affect everyone around them. Plus, when you try to sell your property, buyers look at the pics of those nearby flips. Since, you didn't rip out everything, and replace it with white veneer, and communist grey, they have little interest in it 🙄. So, prospective buyer says it should sell at that fixer auction price, that the nearby flipper seized upon. It's more complicated than interest rates and supply of homes on the market. Houses are to live in, sometimes you do have to rent them out because of a personal circumstance that can arise. But now, what options do people have left? Rentals that rent for the same as a mortgage payment. Why? Flippers push up the rental price of everything, houses and apartments. Then, you are forced to have to rent out the home, you are trying to sell; its a cycle. Investors around you love it, they do only minimal maintenance and improvements, because they never intend to sell their properties, and they keep upping the rental price.
I thought houses were too heavy to flip.
😭🤣
thank you for the advice
Im 24 and flip houses i buy all my houses with cash
Start doing "additions over garages". Ummm, yea, you need to be a very experienced contractor to do that correctly, and in some states legally. I don't think now is the time to be a flipper, the cost of houses AND materials is too high!
It's A LOT of work - and takes A LOT of time. BUT real estate investing is a great move!
This would be the time when you sell the house you renovated. Not the time to buy anything. I would just continue paying debt and saving 💰.
Flip coins, heads or tails you might make more money than buying and selling homes...
Dave's company is getting so corporate 😔 I understand but it's sad
Flipping lumber might be better
I just started a side hustle. Where should I park that money for the next five years so I can use that money for a down payment on a condo/house? Thank you
Under the mattress 😅
In the safe next to your extra guns.
I'll hold it for you
@@tonyschimmoeller 😆😆😁
Index funds or high yield savings account. Keeping it in cash will burn money every year to inflation.
Nice work ✨🎆🎇
Great advice!👍🏾👍🏾
How bout you bring back the old intro jingle?!
No, it's so loud! 👀
Caller has no idea what he's getting into triple your money in triple your time
I love Dave Ramsay but sometimes I feel like his investing advice is too safe I mean If your young you could afford to do bigger risks so why make 10% on your money when you could make 20%,35% or even 50% sheeesh maybe even 100%! ( yes I know that’s crazy) and I agree that most people should not borrow thousands and thousands of dollars but here’s a scenario say a guy instead of investing traditionally they invest in a product that they could resell and let’s say each sale they make they can make 35% profit yes it is more risky but your hard work will pay way more and be worth your time and can be something you could learn new skills in. As long as your young , don’t have a wife, and have no kids you could afford bigger risks that will be worth your while
Dave gives advice that is best for 90% of the people. Generally people should be safe and consistent for the most guaranteed path to a successful financial future. I agree with you though, some people should definitely be more risky.
@@jdek88 yes! Thank you for understanding and I 100% agree with you most people should be doing relatively safe investments but me personally I like to take more risk but not ultra high risk like gambling or whatever haha but I do like making investments on products like electronics and flipping them for a profit it could be lucrative if you know what your doing but besides that what you said i 100% agree I’m glad people can see what I’m saying
He's calling from the moon I think.
Lol 😂
They cut off his sentence. 😑
Wow, not good, man!
Who else thought of Andrei lol
How much money should he save???
Good...
A big fudge you to all the house flippers. One of the reasons why housing is thru the roof. Selfish 🐱
I flip houses using HELOC
How does that work? You take a heloc on your personal home and buy homes?
@@BritBrat444 yes exactly. I would not recommend doing it unless you are experienced in both real estate and construction.
Risky business. You need to have kind of grown up with that speciality in the family. Make wonderful money doing it, but it’s risky if you don’t know the right people. Contractor wanted to remodel my kitchen on a home I just purchased using a heloc. No thanks. Lol
For the unsure, borrowing on a HELOC is not cashing out every penny of equity. You borrow just enough to afford the first payment to the Hard Money lender to get the renovations started. Once that's finished and you have already vetted a renter and taken downpayments and first months rent, you pay that money on the HELOC until its gone. During the same timeframe the Hard Money loan is refinanced into a conventional loan. Rinse, wash, repeat.
To clarify everyone's questions and comments. I have over 400k equity in my house. So I have a 160k HELOC plus additional cash on hand. That allows me to buy distressed properties for cash fix them up and sell them for a profit. I have the experience and skill set in construction and really nothing phases me in terms of work that needs to be done to fix a property. If you rely on contractors to do work and don't fully understand construction, it's probably better to save up cash before you do any flips.
Hello
Yes flip
Start a handy man side business to save up hundreds of thousands of dollars?
Gotta make money somehow. What would you suggest?
Lol right,if I’m making hundreds of thousands of dollars as a handyman,why even worry about flipping houses?
@@fisher1972 to make more hundreds of thousands
@@fisher1972 bingo lol
@@crystalhull1677 Borrow the $$ against the house at the lowest interest rate in the history of interest rates. He will pay 800 a month mortgage and the bank give him 160 thousand dollars right now......
So this broke guy wants to leverage his moms house to get into a business he knows nothing about? Nice
Porqoui
let me re phrase, people need to learn to have the right amount of ambition and grow a business on a slower basis and follow other successful businesses and people and understand it aint gona be a huge sucess overnight , takes years and even decades, my apologies to people in the comments , i did not phrase my original comment properly.
This is the stupidest comment I’ve seen
@@M4.M3ekw people try to hard to move , they need to slow down and do it more organized on a slower scale so it doesnt turn into a nightmare.
@@rayn1ful and stay broke right?
@@stevennakhla7803 please re-read my comment and see if you disagree .
@@M4.M3ekw please re-read my comment and see if you disagree .
No just no
😎👍🖖👌✌😁
Stay off TH-cam guru house flipper videos
First