Updated over 11 years ago on . Most recent reply
Dave Ramsey / Losing it All
Wondering if any of you are Dave Ramsey fans out there. Myself and my wife have greatly benefitted from going through his financial peace book, and getting our personal finances in order, which has enabled us to invest more in Real Estate.
My question comes about his initial venture into real estate:
"In the 1980s, Ramsey was heavily involved in the foreclosure real estate market, and by the age of 26, he had a rental real estate portfolio worth more than four million dollars. However, he lost it all: the Tax Reform Act of 1986 brought about major changes in the real estate market and forced bankers to take a closer look at people they were lending money to – and Ramsey got burned. He lost everything and started over from scratch."
He says all of his loans were called because the banks were sold.
My question to all of you is, how is this even possible or legal? And can a similar situation happen again? All of my properties are leveraged under 30-year conventional fixed loans and I would be in the same boat if the banks called my loans.
Any thoughts?
+Seth Mosley
Mosley Properties