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Personal finance personality Dave Ramsey has made no secret of his enthusiasm for real estate. After decades of buying, selling and owning properties, he still sees it as a powerful way to make money and build long-term wealth.
“Investing in real estate’s a hot topic these days, and if you do it right, you can make some real money,” Ramsey said on “The Ramsey Show.” “I’m personally a big fan of using investment properties to earn income and to build wealth.”
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His First Flip Made Just $842
Ramsey’s enthusiasm comes with plenty of warnings, many of them drawn from expensive mistakes he made himself.
He recalled doing his first flip in 1983 at age 23. At the time, Ramsey assumed that because a property was in foreclosure, it had to be cheap. He bought it with 100% financing, repaired broken copper pipes himself and renovated the house with his wife.
The property sold in five weeks, which initially made him feel like a natural. Then he added up every expense.
His net profit was just $842, and that was after paying himself nothing for his labor.
Ramsey kept going. On another deal, he bought a house for $7,000. One contractor took a $1,500 deposit and disappeared, and the project became a yearslong headache. Ramsey said he ultimately lost $14,000 on the property.
“This is how dumb I am,” he said.
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Those stories also show why owning investment property isn’t as simple as buying a house and waiting for the money to roll in. Investors have contractors, repairs and tenants to deal with, and Ramsey has experienced all three.
For people who like the wealth-building potential of rental property but don’t want a property becoming another job, Arrived offers a more hands-off approach. Investors can buy fractional shares of professionally selected rental properties, while Arrived handles everything from tenants to maintenance.
The properties are selected with the goal of generating rental income and appreciating over time, with dividends paid monthly. You can start investing in real estate through Arrived with just a few clicks and let the company handle the rest.
