Dave Ramsey: “The Bankrupt Real Estate Agent”
“I have done stupid with a lot of zeros on the end of it. I know what it looks like.”
Find out how this broke investor went from going bust in the real estate game and ended up turning his misfortune into a sounding board for success principles.
David Lawrence Ramsey III was born in Antioch, Tennessee in what Dave likes to call, “Not the rich side of town, nor the poor side of town.”
Dave Ramsey ended up getting a degree in Finance, got married, and moved in with his new wife into an apartment. While reaching for success, he joined a multi-level marketing company. In it, he and a buddy tried all the tricks in the book including dialing for dollars in order to try to make it “big”.
During one of the MLM seminars, the top guy, Rich, went through his talk and touched on the 5 main principles the MLM company was known for implementing.
At the end of his talk, he mentioned, “If you don’t know God, you are going to struggle in business. When you put on the character of Christ, it changes your character and it causes you to serve rather than to take. You end up becoming more trustworthy and people are going to want to do business with you.”
Dave Ramsey went home and told his wife that they were going to church. Luckily, his wife being raised a baptist Christian, was more than willing to join him. Dave Ramsey ended up finding Christ.
After 3 months, he left the MLM company and went into Real Estate. Starting with nothing, he ended up with $4 million in real estate by the time he was 26 and was making a couple of hundred thousand dollars per year in the 1980s.
Eventually, Dave Ramsey’s luck ran out. He ended up borrowing too much money and his bank got sold to another bank out of his state. The new bank reviewed his accounts and decided to call his notes. For the next 2 and a half years, Dave Ramsey LOST everything they owned, all while getting sued left and right. By 28, he had a newborn and they finally ended up going bankrupt.
Dave Ramsey started looking deeper into the Holy Bible and found Proven Biblical Money Principles. He then started reading books from Ron Blue, Larry Burkett, and Howard Dayton who were one of the first to start talking about what the bible says about money.
Dave Ramsey and his wife decided to start living by those principles. It wasn’t instant, but his family slowly got back on their feet and started to build wealth again. After getting back up, he started teaching a Sunday School about money.
He found out 5 things that will allow you to build wealth, in 10-15 years:
- Live on a written BUDGET
- “For which of you, intending to build a tower, does not sit down first and count the cost, whether he has enough to finish it?” – Luke 14:28
- Avoid DEBT
- “The rich rule over the poor and the borrower is slave to the lender.” – Proverbs 22:7
- Foster high-quality RELATIONSHIPS
- “Do not be deceived: evil company corrupts good habits.” – 1 Corinthians 15:33
- SAVE and invest.
- “In the house of the wise are stores of choice food and oil.” – Proverbs 21:20
- Be incredibly GENEROUS
- “… for God loves a cheerful giver.” – 1 Corinthians 15:33
As the story goes, Dave Ramsey goes on to become one of the top personal finance coaches in modern times.
Luckily, Dave Ramsey’s story is still being written and has helped millions of people get out of debt and live the life of their dreams. You can learn from his mistakes on his YouTube channel and his website.
If Dave Ramsey was to give advice to any broke investor, The Broke Investor can absolutely say it would be, “The shortest path of where you are and wealth is to stay in CONTROL of your greatest wealth building tool, INCOME.”
Keep growing, keep investing.
p.s. If you are tired of getting the same results you’re getting, it might be because you keep doing the same broke motions.
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