$563,313 paid in interest in 2024

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$563,313 paid in interest in 2024

Carlos M.
Investor · Lancaster, PA · Member since 2016 · 94 posts · 356 votes

I just added up all my interest paid in 2024. It came out to $563,313! 

What am I doing wrong, " Dave Ramsey"   Or

What am I doing right , Grant Cardone?

What say you?

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Chris SeveneyBusiness Member
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Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
1y
Quote from @Carlos M.:

I just added up all my interest paid in 2024. It came out to $563,313! 

What am I doing wrong, " Dave Ramsey"   Or

What am I doing right , Grant Cardone?

What say you?


 we paid $2.4M... It really depends. ITs not what you paid in interest, its how much did you make? If you paid 563k and did not make money yes thats a problem. If you made $1M thats great. 

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  • Dennis Bragg
    San Diego, CA · Member since 2024 · 88 posts · 67 votes
    1y

    Carlos, that’s a jaw-dropping figure… $563,313 in interest paid! Let’s break this down because there’s a lot to unpack here.

    The real question is, how well is that debt working for you? If your properties are generating solid cash flow or have appreciated significantly, you might be following a “smart leverage” strategy, à la Grant Cardone. But if those payments feel like dead weight, Dave Ramsey’s “debt-free” mindset could be worth revisiting.

    Here’s a quick story to illustrate. A friend of mine, Ryan, who invests heavily in Baltimore, realized his interest costs were eating into his cash flow. He took a hard look at his portfolio and noticed a few underperforming properties. After selling one and using a 1031 exchange to buy a fourplex in Chicago, he reduced his interest burden by 20% while boosting his net incomes by $1,500 per month. It wasnt an easy decision, but he’s now breathing easier with stronger cash reserves.

    Another thought: refinancing. With rates in constant flux, you might have opportunities to lock in lower ones. From what I’ve read in Bloomberg, certain markets like Austin and San Antonio are still seeing solid appreciation despite higher rates... Have you looked at how much equity you’ve built up? Sometimes tapping into that equity for a strategic reinvestment can pay off big.

    How do you feel about your portfolio’s performance overall? Any properties you’d consider swapping out for higher-yield options?

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  • Chris SeveneyBusiness Member
    Moderator
    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    1y
    Quote from @Carlos M.:

    I just added up all my interest paid in 2024. It came out to $563,313! 

    What am I doing wrong, " Dave Ramsey"   Or

    What am I doing right , Grant Cardone?

    What say you?


     we paid $2.4M... It really depends. ITs not what you paid in interest, its how much did you make? If you paid 563k and did not make money yes thats a problem. If you made $1M thats great. 

    7e investments53 Reviews
    WebsiteView Page
    1Reply
  • Justin BrickmanBusiness Member
    Realtor · San Antonio, TX · Member since 2021 · 502 posts · 274 votes
    1y

    Love this post

    [email protected]210-827-6020
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  • Carlos M.
    OP
    Investor · Lancaster, PA · Member since 2016 · 94 posts · 356 votes
    1y
    Quote from @Chris Seveney:
    Quote from @Carlos M.:

    I just added up all my interest paid in 2024. It came out to $563,313! 

    What am I doing wrong, " Dave Ramsey"   Or

    What am I doing right , Grant Cardone?

    What say you?


     we paid $2.4M... It really depends. ITs not what you paid in interest, its how much did you make? If you paid 563k and did not make money yes thats a problem. If you made $1M thats great. 

    We certainly did not net 1 million this year but we did okay and actually had our best year. My focus is shifting from cash flow to equity management as well as our portfolio mix. We are getting a terrible return on our equity but I guess that happens when you are hovering around a 50% global LTV. 
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