Although real estate may not be as foolproof or lucrative of an investment as it once was, finance mentors like Dave Ramsey still swear by the asset class as a first step to growing wealth.
In a recently resurfaced (1) interview with comedian Theo Von, Ramsey touched on his extensive forays in both commercial and residential property, saying that buying your first home is “a key part of the first $1 to $10 million in net worth that somebody builds.”
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<li><p>Robert Kiyosaki saysRamsey, who himself helms a $850 million (4) real estate portfolio, has become exasperated by TikTok and Instagram creators who <a I hear this stuff on social media that real estate is 'passive' income — bull crap, there's nothing passive about it," Ramsey told Von on a spring 2024 episode (1) of the entertainer's This Past Weekend podcast. "Your butt's active, you're right in the middle of it. Or you're getting screwed, one of the two."
While mutual funds serve as a “set it and forget it” type of holding, Ramsey assured amateur investors enthralled by the somewhat glamourized concept of landlordship that real estate is a completely different ball game.
“The problem with real estate is it’s a pain in the butt, you’ve gotta deal with it,” he told Von. And he hasn’t been shy to list the flurry of expenses and tenant issues that can and do pose serious financial setbacks in the past.
“I love real estate. But all of mine are paid for, and still, with repairs and vacancies, some of them hardly <a Ramsey has warned on his own show (5). "When you don't get a renter, or one doesn't pay, or you put in a heat and air system for $14,000 [on top of] property taxes and <a t get a ton of cash flow."
