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EPISODE #795
A Ramsey Solutions caller asks if she should use a reverse mortgage to buy a rental property
One caller to the Ramsey Solutions Show asked if she should get a reverse mortgage on her primary residence for the purpose of using the loan proceeds to purchase a rental property to generate monthly income. Here’s what the show’s hosts had to say… [Watch the YouTube video of the Ramsey Show]
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3 Comments
I commented on the Ramsey Solutions video with the following:
“I generally don’t advise borrowing money to invest money, but Ramsey and his staff need to understand the product BEFORE advising callers. The misinformation spewed on this show about reverse mortgages over the years is astounding. I’ll ship 10 copies of Understanding Reverse to Ramsey Solutions tomorrow if they’ll commit to learning the facts.”
This nonsense has to stop. Even more disheartening are the comments – the long line of Ramsey sheep that blindly follow the loudest voice they hear.
Dan- Excellent! They are harming older homeowners who may have benefited from a reverse mortgage with their incomplete and uninformed commentary.
I won’t hold my breath if they take you up on your book offer. The Ramsey Fan Club needs to do some of their own research.
Spot on Dan. I am a CPA and a licenses Reverse specialist. Ramsey is out of line on so many fronts. It’s none of his business on what she “needs.” He then says the loan is attached to her name, which it isn’t! It’s non-recourse and doesn’t even show up on the credit report. Third, obtaining a rental property is a wise move, with no cash flow outflow for the funds used to acquire the property. Yes, home equity goes down, however he seems to forget a paid for rental property increases equity – and unlike the home equity, will generate income. Ramsey is a loser.