Dave Ramsey investment strategies?

Question

What do you guys think overall about Dave Ramsey investment And business strategies? What about Robert kiyosaki?

Kenneth Garrett · Answer

@Marco Morkous

Robert Kiyosaki has taught many investors to look at an asset as an asset only if it cash flows.  Thus your private home is a liability.

Dave Ramsey has helped many people in there private life to get out of debt.  The trouble with Dave is he doesn’t believe in leverage.  Cash only.  If that were the case, many millionaires would still be struggling.  Dave is a mixed bag.  If you listen to his Podcast there are good recommendations to help people but there are things that will make you shake your head.

Bri Deel · Answer

I'm conflicted on this as well! I have been listening to Dave Ramsey for the past 8 months daily and was just introduced to Robert K. (I know, I am late to the game on both). I want to start investing in real estate, but because I've had DR pounded in my head for so many months now, I am having hard time seeing how the numbers work..:/

Marco Santarelli · Answer

@Marco Morkous  @Brianna 'Bri' Deel

I talk about them both on my podcast. In a nutshell:

Dave Ramsey — Consumer focused and a bit of a hypocrite. He refers to all debt as “bad” debt. The reality is there is Good debt and Bad debt. I know he owns a lot of real estate and uses mortgage to finance them (i.e. good debt).

Robert Kiyosaki — Loves good debt; as in financing to acquire assets that produce positive cash flow. That’s the philosophy I subscribe to and teach because it has been proven to work over a very long time.

Continued success!

Account Closed · Answer

@Joe M. Why is it oversimplification? Kiyosaki is a conman. That doesnt mean he is not right about somethings but I wouldnt trust him in general. Ramsey is not a conman and actively helps people. Doesnt mean he is right about everything (especially his politics). But in general he is on point about most things financial for most people. Im not a Ramsey devotee and dont follow his plan but I was never in debt. I have had mortgages and have paid them off fast. Enough subtlety now?

Account Closed · Answer

@Marco Morkous DR makes his money giving step by step help to people via $100 classes and $20 books and a free podcast. Rk runs scamminars taking thousands from people who can least afford it. You decide who to follow.

Marco Santarelli · Answer

@Marco Morkous -- Be clear on YOUR Strategy.  Not all investment strategies fit everyone's circumstances  (interest, experience, available capital, risk tolerance, investment goals, long term plans, available time, etc. etc).

Define your overall Goals.  And ask yourself if you want to be an Active or Passive real estate investor right now.

Continued success!

Bob Prisco · Answer

@Marco Morkous have not read their books or anyone's books or tapes. Learned as I went..... Keep it simple. Buy it fi it flip it or keep it for a rental. Just run the numbers As long as I am at 20% net cap I keep them,,,,

Account Closed · Answer

I’m not sure this is an either/or situation. It may be a matter of finding a system appropriate to your scenario. It helps to understand that every system is wrong, but some are helpful.

Dave Ramsey’s focus is on improving the personal finances of W-2 wage earners. His target audience are those in the worst part of the cashflow quadrant; employee. The point of his system is being a debt-free employee.

Most, if not all, of the folks in these forums are or want to be In any of the other quadrants. Personally I’m straddling the employee and self-employed quadrants. When it dawned on me that i could replace my salary via a portfolio of rental income, I knew REI was for me.

Even self-employed, I have financial liabilities, so DR’s advice to pay off non-mortgage debt and invest (for me, my RE portfolio) makes sense in my situation.

To me RK in RDPD shows a better way of thinking about money, but isn’t a system like BRRRR.

Evan Loader · Answer

DR does own a lot of real estate but does not have mortgages on any of his holdings. He mentions this often in his daily show that everything is paid for, do you have documentation or sources that proves he has mortgages now? He did have short term 90-day rollover debt in the 80s that led to his personal bankruptcy and creation of his current business.  He does recommend a plain vanilla 15 or 30 year fixed-rate mortgage for his listeners, but claims he doesn't have any.

Joe Villeneuve · Answer

My feeling is threefold:

1 - Neither really offers a strategy.  They are really investment philosophies.

2 - ...and their philosophies are based on polar opposites

3 - DR is for personal, and RK is for REI

Dave Ramsey investment strategies?

Most Popular Reply