You're About To Make A HUGE Financial Mistake!!

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  • Опубліковано 11 вер 2024
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КОМЕНТАРІ • 643

  • @TheRamseyShow
    @TheRamseyShow  4 роки тому +16

    Get life-changing financial advice anytime, anywhere. Subscribe today: ua-cam.com/users/TheDaveRamseyShow

    • @deynna45
      @deynna45 4 роки тому +1

      Who did the evaluation on the business

    • @carterizaiah1341
      @carterizaiah1341 3 роки тому

      @Damari Moshe definitely, I have been watching on Flixzone for months myself :)

    • @orionjonas4455
      @orionjonas4455 3 роки тому

      @Damari Moshe yea, have been using Flixzone for since december myself :)

    • @alvaroporter4584
      @alvaroporter4584 3 роки тому

      @Damari Moshe yea, been using Flixzone for since november myself :)

  • @79bnice
    @79bnice 4 роки тому +787

    Don't do business with family. Don't co sign any loans with family. Don't do it.

    • @robertz7294
      @robertz7294 4 роки тому +31

      You are right. My mom co-signed a line of credit for my sister for about $50k about 10 years ago. Nowadays, the loan is sitting at around $53k. My mom has always been good with money, but at the time I don't think she understood what she was signing. My sisters house was paid off around that time, but needed a co signer because her credit was a mess. My mom has always been sensible with money. She is always being harassed by debt collectors telling her to pay her bills. It makes her very upset, she doesn't need it, she is 83 years old. My sister could have lost her house in the '90's, but my parents stepped in and helped. Between my sister and her husband, I think they do OK as far as income, but they are clueless when it comes to paying loans and bills etc. They act like it's not a big deal, and when my mom tells her about calls from the debt collectors, and that she should pay her bills, my sister gets mad. Very ungrateful. Myself, I would not have helped her with the house or line of credit. This whole situation makes me sad, but I don't say anything because it's not my business.

    • @kaboose07
      @kaboose07 4 роки тому +11

      Robert Zambano sorry to hear about your sister. She sounds very selfish especially since ur mom is old and doesn’t need to be bothered by that kind of stuff. Very unfortunate but at least your mom has you.

    • @robertz7294
      @robertz7294 4 роки тому +10

      @@kaboose07 Thanks for your kind words. If my sister wanted to pay this off, she could have I'm sure. Her priorities are not right, one of the kids got $200.00 sneakers for Christmas. In my opinion, these things can wait. They are not that important. As for me, I am not perfect, but I've never had to rely on anyone to pay my bills. I care about my sister, but she is a grown adult. Cheers, Rob.

    • @GR-uc1gq
      @GR-uc1gq 4 роки тому +3

      It depends if you know the person can pay it and if they can't you need to have enough money to make up for their missed payment. My mother needed a a car. I co signed for a used Toyota. Since her credit is not the best. She got 1.9% interest rate and is paying me monthly plus extra for principal. If she can't pay I'll step in to help out.

    • @scottclute9547
      @scottclute9547 4 роки тому +1

      to 79bnicer: You are so correct!!! Never ever include family with business dealings...it never works-out!!!

  • @rebeccashields9626
    @rebeccashields9626 4 роки тому +486

    The parents have an unsuccessful business and want to retire, so they’re trying to pawn it off on their kids. Terrible. Hope these people come to their senses and don’t buy it.

    • @justSTUMBLEDupon
      @justSTUMBLEDupon 4 роки тому +4

      Rebecca Shields it might not be unsuccessful business, it’s probably that they are not running as well as they should. If the parents sell it to the kid and he sells off the inventory, they can probably turn the business around.
      But the business is not worth 600K. Maybe he want to do it for family but he better structure the deal better

    • @alladreamwedreamed
      @alladreamwedreamed 3 роки тому +18

      The inventory is probably total junk being overvalued by the parents

    • @norcofreerider604
      @norcofreerider604 4 місяці тому

      If they're clearing $100k net per year, I wouldn't say its unsuccessful, but it is under-performing. As Dave said, clear out 60% of the inventory and look at ways of increasing sales. I would bet part of the reason why the business is under-performing is the owners are old and running it like they did 20 years ago. New owners could likely double or triple the revenue while halving the amount of inventory over a period of 5 years.

  • @habanerofg2
    @habanerofg2 4 роки тому +341

    Parents who would willingly saddle their children with 600k worth of debt are asinine

    • @Smallvillefreak
      @Smallvillefreak 2 роки тому +9

      Not only that, but ask them to hold onto it to finance their retirement? Wow.

    • @bobbygzzz7116
      @bobbygzzz7116 2 роки тому

      Stupid freeloaders= equal their parents...them parent know their business is failing...so they trying to sell to kids...so they will be stuck like chuck....n never a mention wat the sell...so u know its failing

  • @korn111685
    @korn111685 4 роки тому +576

    5 years ago we were normal. All the normal debts. Tiny apartment in a rough side of the city. Found Dave and debt free including the house. It honestly works.

    • @wittenberg5
      @wittenberg5 4 роки тому +15

      Congrats!!!

    • @bobbyb7672
      @bobbyb7672 4 роки тому +17

      Nice! I have a similar story.

    • @martinr4549
      @martinr4549 4 роки тому +8

      Woohoo

    • @bobeech9728
      @bobeech9728 4 роки тому +13

      Thank you for sharing! I love reading these comments, they give me hope and help me push forward! Especially since my family thinks I'm crazy and that this is all impossible! Yeah right

    • @troychalmers3646
      @troychalmers3646 4 роки тому +5

      Good job Bob

  • @noahrose1able
    @noahrose1able 4 роки тому +536

    She called really wanting a different answer to justify this

    • @mikemesser4326
      @mikemesser4326 4 роки тому +33

      Yep. Dave gave her the tough love answer - what she needed to know.

    • @nick000002
      @nick000002 4 роки тому +2

      Noah Rose
      First mistake

    • @dukepr
      @dukepr 4 роки тому +14

      The one selling the business sugarcoat so he can sell it. Havind an outside view shows the reality of the business

    • @biggriggs23
      @biggriggs23 4 роки тому +15

      Had to be something in the back of her head to say it's a bad idea. Or a good friend convinced her to call. Emphasis on good... and friend.

    • @dc76384
      @dc76384 4 роки тому +6

      She's completely lost...and clueless. Dave didnt tell her what she wanted to hear.

  • @PInk77W1
    @PInk77W1 4 роки тому +403

    The husband will laugh at her if she says
    Dave said don’t do it.
    Then they will go bankrupt in a minute

    • @godisgood5038
      @godisgood5038 4 роки тому +6

      EXACTLY

    • @justocho9090
      @justocho9090 4 роки тому +9

      Omg that’s what going to happen

    • @mariettadashcam6857
      @mariettadashcam6857 4 роки тому +6

      @@godisgood5038 have they ever thought maybe some of the things he answers he did when he was younger so know he knows and dosent want people to do it

    • @dmeyerso
      @dmeyerso 3 роки тому

      Yup. And they earned it

  • @RGTFLA85
    @RGTFLA85 4 роки тому +267

    Husband should have been on this call also for clarity of financial figures. They need to get on the same page before they sign anything.

    • @MsRuthie
      @MsRuthie 4 роки тому +19

      Ricky Thompson exactly - I think she’ll have a hard time talking husband out of this.

    • @kierah16
      @kierah16 4 роки тому +12

      Yea he's definitely in the driver seat on this deal.

    • @---cr8nw
      @---cr8nw 4 роки тому +14

      It has very little to do with financial figures. Husband should have been on the call because it's *HIS* parents and *HIS* wife. He needs to come to the decision to not do this or his life is going to be miserable.

    • @imahustla5029
      @imahustla5029 3 роки тому +4

      @@kierah16 I'd file for divorce the same day he makes this official

    • @scottsanders5595
      @scottsanders5595 Рік тому +1

      I'm amazed at the number of callers who call in with issues relating to the spouse's family and the spouse is not even on the call. Why isn't the husband making this call with the wife second-chairing it.

  • @marcusarelius
    @marcusarelius 4 роки тому +317

    She was smart enough to call Dave. Hopefully she is smart enough to tell her husband the reality here. I bet her husband is listening to his parents without thinking of the consequence.

    • @az21bob666
      @az21bob666 4 роки тому +3

      she might not know enough of what going on, BUT I would want to know everything if I spending 600k
      how much it make, how much stuff, can I sell the stuff at a discount and make money, why is it only making 100k maybe there old and lazy and dont work that hard any more.

  • @Tr1Hard777
    @Tr1Hard777 4 роки тому +92

    His parents are trying to retire off of his debt. Thats just crazy to me.

  • @philsowers
    @philsowers 4 роки тому +177

    They need an external 3rd party business appraisal to get the real numbers and then present the new terms if they do this at all.

  • @theelephant2887
    @theelephant2887 4 роки тому +52

    I owed $30K to my father in law at some point. Our relationship got much better after I paid him back. Dave knows what is talking about.

    • @liberty4392
      @liberty4392 2 роки тому +3

      This is why when my daughter bought a car from one of her cousins we went and got a loan from a bank to pay him. Money changes relationships when you borrow money from family or friends. The debt is now paid off the relationship is unchanged.

  • @SomeGuy-sy5sj
    @SomeGuy-sy5sj 4 роки тому +632

    She is going to do the forever loan deal. 100%

    • @clarifyingquestions
      @clarifyingquestions 4 роки тому +33

      you mean her husband will

    • @emeraldzak
      @emeraldzak 4 роки тому +26

      I hope not, but knowing people, she and her husband will do that deal.

    • @kennethhasuik8042
      @kennethhasuik8042 4 роки тому +18

      This is what you'd call a no common sense deal. Plan and simple.

    • @kierah16
      @kierah16 4 роки тому +2

      Yep

    • @sbentsen2714
      @sbentsen2714 4 роки тому +12

      Some Guy yup, sounds too like she hit a wall when Dave said don’t do it, the hesitation, she’s not buying into what he’s saying, or doesn’t hv the confidence to hold her ground.

  • @lard_lad_AU
    @lard_lad_AU 4 роки тому +56

    I'm an accountant and have seen this multiple times: people buying an overpriced business that's been sold to them like a used car, not understanding the finances, no due diligence, not getting an opinion from an expert. ... And then when it all turns pear-shaped, expecting someone to come in and work a miracle and get them out of dire-straits.

  • @MeowMeow-ij9dk
    @MeowMeow-ij9dk 4 роки тому +134

    This show reminds me of Loveline, where the caller was hopeless and never going to follow the advice. But the public format means other listeners can benefit even if the caller never does.

    • @jant4385
      @jant4385 4 роки тому

      But it predates Loveline and Dr. Drew was the only one giving decent advice, Adam was horrible.

    • @mycobrahatesyou
      @mycobrahatesyou 4 роки тому +5

      @@jant4385 Adam made the show entertaining and usually had great advice. Without him the show tanked and went off the air.

  • @MountainChristian45
    @MountainChristian45 4 роки тому +30

    It’s ridiculous how clueless people are before making a MAJOR financial decision. Thank you Dave for helping her.

    • @hollystiener16
      @hollystiener16 7 місяців тому

      The guy wasn't necessarily clueless, he has bipolar that was untreated.

  • @Redbull357
    @Redbull357 4 роки тому +53

    Just 2 years after finding Dave Ramsey and i paid off my House. No debt at all now. :)

  • @toughbowtietruck
    @toughbowtietruck 4 роки тому +64

    Sounds like the perfect prelude to the other video titled: "My business failed now my wife is leaving me!"

  • @skiperias
    @skiperias 4 роки тому +47

    Her husband didn’t know she called, he should have been on this. He needed to hear
    it as badly as she did.

    • @scottsanders5595
      @scottsanders5595 Рік тому

      He should have MADE the call and been the primary in the discussion. IT'S HIS FAMILY. The wife should have been ON the call listening and making comments as appropriate. I'm shocked at the number of people who call into Ramsey about issues that deal with the spouse's family and the spouse is not involved in the discussion. Since everyone at Ramsey is so insistent about married couples combining finances, I wonder why they don't require both spouses be on the call before they will offer advice. Especially when it concerns a large $ amount. The wifeays she got what Dave was saying, but she will never be able to explain it to her husband the way he did, and I don't think she even wants to.

  • @SmoothJK
    @SmoothJK 4 роки тому +118

    I don't understand people who call, only to question his answers constantly. If they don't trust him, don't call asking for his advice. If you just want to hear him affirm your decision, you got the wrong guy lol.

    • @takeastandorbeenslavedby-left
      @takeastandorbeenslavedby-left 4 роки тому +5

      People always do this to professionals these days. It is extremely annoying

    • @spunky181
      @spunky181 4 роки тому

      Exactly

    • @andrewwhitcomb4857
      @andrewwhitcomb4857 4 роки тому +28

      It's fine to question his answer, imo. It helps them get a better understanding.

    • @notafan6
      @notafan6 4 роки тому +21

      Questions don't always mean they disagree, they may need to just clearly understand.

    • @opsecclassified6469
      @opsecclassified6469 4 роки тому +1

      Let the lady at least talk. Detroit Davey wont even let her explain.

  • @RABrillantes
    @RABrillantes 4 роки тому +212

    🤔 Sounds like numbers/accounting isn’t her strong suit...

    • @clarifyingquestions
      @clarifyingquestions 4 роки тому +8

      you mean his (her husband's) good for her for calling but I doubt her husband will listen.

    • @Nilsosmar
      @Nilsosmar 4 роки тому +6

      @@clarifyingquestions Either one, though, right? Both she and her husband are leaning toward accepting this deal. Like you, I hope he listens to her (if she has listened to and understood Dave).

    • @chopperinmylivingroom2335
      @chopperinmylivingroom2335 4 роки тому +5

      Sounds like a couple who ought to work for someone else...

  • @Mcyoloswaggy69
    @Mcyoloswaggy69 4 роки тому +170

    I dont think she knew what she was talking about

    • @clarifyingquestions
      @clarifyingquestions 4 роки тому +6

      pray for her she her husband doesn't sound like he has any business sense. she has enough to call Dave and ask questions. unfortunately her husband will not listen.

    • @random-nz7dy
      @random-nz7dy 4 роки тому +2

      No clue at all. Scary what they are about to do.

    • @Spaceysgurl
      @Spaceysgurl 4 роки тому +2

      Every answer was "aaaahhmmmm"

    • @jamesmccloud1002
      @jamesmccloud1002 10 днів тому

      ​@@clarifyingquestions She can't answer basic questions about a business she's about to pay 600k for. It's not just the husband lol

    • @clarifyingquestions
      @clarifyingquestions 10 днів тому

      @@jamesmccloud1002 calm down, My comment reflects this. ie she has enough ( business sense) to ask for help about her hubbies business.

  • @stewbugz5213
    @stewbugz5213 4 роки тому +5

    my family (not me) are fighting over a car. My parents let my niece borrow it because she needed a car. My parents couldn't afford the payments. Long story short, they want my niece to buy the car after a year for more than its worth. Every month they call me fighting. Its some of the best advice Dave gives. DO NOT DO Business with family!

  • @ddubsr5886
    @ddubsr5886 4 роки тому +74

    Parent Wants to force someone to be in debt forever so she can get rich? Does her name also happen to be Sallie Mae?

  • @DanielA-lp7sw
    @DanielA-lp7sw 3 роки тому +43

    I don’t think she gets it. She doesn’t understand what he’s saying

  • @yashthakar9441
    @yashthakar9441 4 роки тому +105

    Why does it sound like they got Inventory if some MLM stuff and are unable to move it

    • @Dr.C_Stag
      @Dr.C_Stag 4 роки тому +9

      Yash Thakar I 100000% thought the same thing when I heard this. 😂

    • @ceecee8757
      @ceecee8757 4 роки тому +11

      Haha...Amway.

    • @ineedhoez
      @ineedhoez 4 роки тому +2

      Right? It sounds weird AF.

    • @skyelizsam
      @skyelizsam 4 роки тому +4

      Lol exactly. $1 mil worth of Lularoe leggings sitting in a warehouse

  • @joelratemo1752
    @joelratemo1752 4 роки тому +12

    Being indebted to your relatives, esp your mother-in-law is the biggest blander you can ever walk into.

  • @jbr1952
    @jbr1952 4 роки тому +101

    She will be calling Dave back in ten years and asking about bankruptcy.

    • @TheDjcarter1966
      @TheDjcarter1966 4 роки тому +8

      Ah not making it ten uears

    • @MsRuthie
      @MsRuthie 4 роки тому +17

      3 years.

    • @tigger6186
      @tigger6186 4 роки тому +4

      50% of businesses fail within the first 5 years

  • @nephetula
    @nephetula 4 роки тому +5

    I'm skeptical because she wouldn't mention what kind of business it was; something is fishy about that. Also, you and your husband could probably work in dozens of different careers and make a combined $100k a year...without going $600k in debt.
    Have they ever been to an equipment auction? All that "shelving and software" is probably worth pennies on the dollar.

  • @AGM-ts5bb
    @AGM-ts5bb 10 місяців тому +1

    Family businesses can be attached to a great deal of nostalgia and emotion; the business may have done well in the past, but that will not pay the present bills.

  • @KTSpeedruns
    @KTSpeedruns 4 роки тому +70

    “It’s not worth it.”
    “Well, the thing is...”
    “IT’s NOT WORTH IT!” Listen to the guy who knows more than you.

    • @Michelle-po9xy
      @Michelle-po9xy 4 роки тому

      “Even if we owe nothing when they die?”

  • @bobbyb7672
    @bobbyb7672 4 роки тому +24

    Please dont pay it off early so I can make more in interest. Sounds just like a student loan...

  • @pohump
    @pohump 4 роки тому +8

    No bank would lend on this. Dave is right here. Coincidentally, my wife and I were in a situation where we were buying a business from my aunt and uncle. They were selling for 700k and sold to us for 600k. But we net roughly $420k a year. $600k purchase with $100k net yearly is a gold mine if this was real estate but for small business, that’s pretty bad. The parents know it. That’s why they don’t want these guys to pay it early.

  • @calidawl
    @calidawl 4 роки тому +45

    She talks about $600k like it’s $10k. She even laughed a few times during the call. Are they millionaires already to where $600k ain’t really that much to them? This whole situation is just strange to me. They’ll probably still buy the stupid business at that ridiculous price and then tank 🤦🏼‍♀️

    • @alexilic3401
      @alexilic3401 4 роки тому +5

      Laughing could be because of nervousness. But if they came this far in making a bad decision, and had to go to a radio guy to tell em off of it well... I think they'll make another bad decision, maybe less bad idk, or they'll abstain from making decisions for awhile.
      You need to combat bad habits and mindsets when you are young.

    • @peachesroyale
      @peachesroyale 4 роки тому

      Exactly

    • @MagicOnWeb3
      @MagicOnWeb3 4 роки тому +3

      She said they are on baby step 2. They have $1000 emergency fund and are currently paying down consumer debt. That should answer your question “Are they millionaires already...?”

    • @steelunited1115
      @steelunited1115 4 роки тому +1

      600k is more than half a million.. They better be big time multi millionaires

  • @ozarked2363
    @ozarked2363 4 роки тому +2

    Guarantee you the actual value of the inventory is maybe $300,000 at best. The other $700,000 is inventory that is worthless. It's obsolete, discontinued, or unsellable.

  • @Gruuvin1
    @Gruuvin1 4 роки тому +14

    I hope the show sends transcripts or audio/video to these callers, so they can share the conversation with their significant others, because half the problem is often the one who isn't present in the conversation.

  • @ChrisMFlorida
    @ChrisMFlorida 4 роки тому +42

    It would've been nice to know what the business was. Was it 1m worth of noni juice? LOL

  • @ThinkMoneyBenny
    @ThinkMoneyBenny 4 роки тому +99

    Dave: “Thanks-Giving Dinner Is Not Going To Taste The Same”
    Me: Mentally time traveling to next November..

    • @ugonnac8937
      @ugonnac8937 4 роки тому +6

      I think Dave meant they'll be having rice and beans instead Turkey.

    • @DH1986
      @DH1986 4 роки тому

      My father hired my mothers nephew to be the property manager of a 22 unit apartment building. He was dismissed as a PM about a year later, but he was allowed to continue living in the apartment as long as he paid rent. Anyway, he beat hem out of 6 months rent. He also would brag about how much money he was making at Sunday dinner which added salt to the wounds.

    • @Kevin-sr8yx
      @Kevin-sr8yx 4 роки тому +2

      Mother: How's everything, dear?
      Daughter: I told you I'd pay you soon!

  • @CaseyBurnsInvesting
    @CaseyBurnsInvesting 4 роки тому +23

    Most people start entrepreneurship by offering services not raising equity and definitely not from family.
    Great lessons about small business buying here as well. Mental notes taken 📝

  • @KB5RYE
    @KB5RYE 4 роки тому +46

    Or they're lying about the value to get more money from their son.

    • @marcdonvito6485
      @marcdonvito6485 4 роки тому +8

      Most people overvalue the stuff they own. It's just human nature.
      How much could they get for all the existing inventory if they had to get rid of it in one month at whatever price they had to accept? It might be worth zero!

    • @adventuresofwillandshelby6013
      @adventuresofwillandshelby6013 4 роки тому +2

      Marc Donvito Exactly!!!
      Prime example: people are asking $80,000+ for 90’- 80’s peterbilt trucks.
      They’re attached to them...
      Bought my 2010 from a dealer for $30k, and spent 15k on a engine swap and boom.
      People are weird and get attached to things. Even myself

    • @benanderson4639
      @benanderson4639 4 роки тому

      Definitely

    • @Prophezora
      @Prophezora 3 роки тому

      That's sick.

    • @NeoSharkey
      @NeoSharkey 3 роки тому +1

      Definitely one of those parents who thinks their kid owes them “just because”.

  • @sallycha7952
    @sallycha7952 4 роки тому +2

    Dave is absolutely right!
    Net is way too low.

  • @Elizabeth-yg2mg
    @Elizabeth-yg2mg 4 роки тому +107

    Good thing she called--his advice is sound.

    • @jbr1952
      @jbr1952 4 роки тому +13

      The problem is she won't listen to him.

    • @Elizabeth-yg2mg
      @Elizabeth-yg2mg 4 роки тому +8

      @@jbr1952 The problem is that you don't know her--you don't know what she will do. Why would she call and then not listen to him on something so important? How many people work with such large, complex money issues especially at a young age and not need input from a more experienced person? You guys get on these sites and smear women. Idiot.

    • @clarifyingquestions
      @clarifyingquestions 4 роки тому +3

      @@jbr1952 you meant her husband won't listen

    • @user-cv3gd2wr5q
      @user-cv3gd2wr5q 4 роки тому +1

      At what point did this turn into a man woman thing? Sound a little insecure to me!

    • @clarifyingquestions
      @clarifyingquestions 4 роки тому +1

      @@user-cv3gd2wr5q Seriously, dude. When it became a she thing - that s when! Hope that helps.

  • @Apostylicpoet
    @Apostylicpoet 3 роки тому +4

    Dave is so knowledgeable, I have no idea what he's talking about, but I like listening. I pray that I can be this confident in my calling one day!

  • @ShakinB
    @ShakinB 4 роки тому +31

    In one ear and out the other

  • @f86tune48
    @f86tune48 3 роки тому +3

    Parents just need to liquidate and call it a day.

  • @tclucke
    @tclucke 4 роки тому +37

    Why would you have to "BUY" the family business?????????????

    • @Simon-oy7kf
      @Simon-oy7kf 4 роки тому +14

      Exactly, that's not a "family business"

    • @ew2645
      @ew2645 4 роки тому +5

      Tclucke part of it is psychology. We have a yuengling plant here and the kids don’t automatically inherit the business. They have to buy into it because they’ll have a stronger sense of ownership and because of that, they’ll hopefully care for the business better.

  • @Sultanrx
    @Sultanrx 4 роки тому +31

    Working with family in law is a dangerous line to cross

  • @ShiaGirl18
    @ShiaGirl18 4 роки тому +10

    1:15 "That's financial suicide." I like how he says this. He has my attention.

  • @Lourd-Bab
    @Lourd-Bab 8 днів тому +315

    Amazing video, A friend of mine referred me to a financial adviser sometime ago and we got to talking about investment and money. I started investing with $150k and in the first 2 months, my portfolio was reading $274,800. Crazy right!, I decided to reinvest my profit and get more interesting. For over a year we have been working together making consistent profit just bought my second home 2 weeks ago and care for my family.

    • @BrandonIvan-c6e
      @BrandonIvan-c6e 8 днів тому

      Hi. I’ve been forced to find additional sources of income as I got retrenched. I barely have time to continue trading and watch my investments since I had my second child. Do you think I should take a break for a while from the market and focus on other things or return whenever I have free time or is it a continuous process? Thanks

    • @Lourd-Bab
      @Lourd-Bab 8 днів тому

      @@BrandonIvan-c6e However, if you do not have access to a professional like Clementina Abate Russo, quitting your job to focus on trading may not be the best approach. It is important to consider all options and seek guidance from reliable sources before making any major decisions. Consulting with an AI or using automated trading systems can also be helpful in managing investments while balancing other commitments.

    • @BrandonIvan-c6e
      @BrandonIvan-c6e 8 днів тому

      @@Lourd-Bab Oh please I’d love that. Thanks!

    • @Lourd-Bab
      @Lourd-Bab 8 днів тому

      @@BrandonIvan-c6e Clementina Abate Russo is her name

    • @Lourd-Bab
      @Lourd-Bab 8 днів тому

      Lookup with her name on the webpage.

  • @db7040
    @db7040 3 роки тому +2

    He is spot on !!! Being in a family business myself where our parents hold everything we hold nothing but jobs the talk of selling to us is exactly what he is talking about. They do not want to sell because we are making them money the thought of us making what they make from the business is unheard of.
    All I can say is if you can’t buy it straight out from going to the bank etc do not get in debt with family!!!!!!! It will never be enough for them.

  • @Nilsosmar
    @Nilsosmar 4 роки тому +9

    I so agree with Dave on this one. I hope she sees the wisdom of what he's saying -- particularly the part about only buying if there is an arrangement in place to pay it off early. I've been in situations like that in which I tried to set up a business deal based on friendship or family, i.e., "making things easy" for the other party (like she's trying to "make things easy" for her in-laws by accepting this flawed arrangement, not because it makes sense to her, but to make them happy) -- it just doesn't work.

  • @vyspeeds
    @vyspeeds 3 роки тому +2

    Oo I’m glad she called him. I hope she followed his advice

  • @ludens1526
    @ludens1526 4 роки тому +174

    She sounds kinda confused

    • @dks13827
      @dks13827 4 роки тому +8

      IQ trouble.

    • @greenAbbot
      @greenAbbot 4 роки тому +3

      @@alexfinn7989 Please explain how you arrived at that conclusion.

    • @Digger-Nick
      @Digger-Nick 4 роки тому +5

      Women are always confused.

    • @chadhaire1711
      @chadhaire1711 4 роки тому

      This entire conversation is confused...we never find out what the business is making the video and his advice worthless.

  • @MaMa-jh6bb
    @MaMa-jh6bb 4 роки тому +14

    Listen to him. Don’t Do IT!

  • @doubledragon2074
    @doubledragon2074 3 роки тому +9

    This family is sick already. Their parents are trying to make a lifetime of money off of their own children not caring if they go in debt and the children are betting on the parents croking early and all debt is forgiven! Jeeeezus!!!

  • @justocho9090
    @justocho9090 4 роки тому +71

    I swear people in the U.S. has “I like to stay in debt” mindset when clearly they don’t have to

    • @user-cv3gd2wr5q
      @user-cv3gd2wr5q 4 роки тому +4

      King Ocho you can’t tell them anything. They’ll make every excuse possible as to why they HAVE to be in debt. At the end of the day...it’s their own stupidity leading them to be poor and relying on the government to take care of them.

    • @caroleehubbard8380
      @caroleehubbard8380 4 роки тому +3

      There is such a thing as "good" debt , and also bad debt. Good debt (also called leverage) pays you money every month. Bad debt does the opposite. But, I agree...my ultimate goal myself is to be 100% debt free.
      PS, I'm an American.

    • @joelratemo1752
      @joelratemo1752 4 роки тому +3

      @@caroleehubbard8380 Not so many people know the difference. Most guys get into debt in order to consume, that's why most Americans are always in serious debts, filing for bankruptcy every now and then. It's a financial mess.

    • @caroleehubbard8380
      @caroleehubbard8380 4 роки тому +1

      Joel Ratemo o
      Truth...I know lots of those people. I take out loans to buy rental properties (good debt / leverage) it pays its self back + pays me a monthly cash flow. But, my 1st priority is to always pay down debt first and fast as possible.

    • @chadhaire1711
      @chadhaire1711 4 роки тому

      @@caroleehubbard8380 If everyone paid cash 90% of the economy would disappear, and the USA would be a third wold country...every car maker would go out of business.

  • @Lon1001
    @Lon1001 3 роки тому +4

    Best business advice I've heard Dave give anyone so far. It's always potentially destructive doing business with family, and the parents either not knowing or caring that their business is more of a burden not a gift to their kids would make for a volatile outcome. Hope she understood what Dave was trying to warn her of.

  • @markh.6687
    @markh.6687 4 роки тому +8

    Dave is right! The whole deal stinks from the start.First, sitting on a million in inventory with $100K a year earnings means two problems. First, they overbought inventory, likely at such high prices, they would have to sell at a loss to get rid of it. Second, they can't turnover the inventory (inventory turns are a common measure in inventory-based business). Even in today's "lean" businesses with "just-in-time" delivery, you must turnover your inventory. Dave sees the two problems, leading to a dying or dead business. Either there is no market for the inventory, or they are trying to charge such high prices to cover their losses that nobody is buying from them. The idea of selling the son and daughter-in-law a dead or dying business, who obviously haven't a clue the of gigantic hole they're about to fall into, maybe never to get out without bankruptcy and a divorce, is just evil. His parents KNOW what they are doing to their own son. Those complaining that Dave doesn't know enough about the business and financial situation haven't grasped the essentials. Listen to this woman's answers; she hasn't the foggiest what she's talking about, and have never seen the financials for the business; likely neither has her husband. The financials would send accountants and bankers running for the hills. Wonder what the parents would say if the son wanted to see the financials on the business; likely "oh, you don't need those son". A business making $100K a year on average cannot survive sitting on a million dollars worth of dusty inventory. Bet the Accounts Receivables are a similar nightmare-unpaid and never going to be paid. Oh, and the Accounts Payable?? Uhh...(crickets). But here Son, and don't worry about ever paying us back. As said in Monty Python and the Holy Grail...RRUUNN AAWWAAYY!!

    • @steelcross839
      @steelcross839 2 роки тому +1

      You're a CPA or a successful business owner. Straight from the shoulder. Your comment should be a Dave Ramsey VOD. Good man. God bless.

  • @michellemorford349
    @michellemorford349 2 роки тому +2

    I think it was obvious by one comment that she thought they would but into the business and not have to pay long because she said it would be forgiven when they pass away.
    Bad thing to bank on.

  • @mariarendon8374
    @mariarendon8374 4 роки тому +27

    She is still going to do it. I see a nasty divorce. Scary.....

  • @Intellistan
    @Intellistan 4 роки тому +3

    Dave will take folks straight to school. What a boss. I admire his way of going about stuff like this

  • @Slicemenice
    @Slicemenice 4 роки тому +2

    If there’s a net profit of USD 100.000, it’s well worth USD 600.000. That’s a rather conservative P/E multiple of 6.

  • @landlord5552
    @landlord5552 4 роки тому +58

    She made her mind before eaven calling

    • @QueenStylin
      @QueenStylin 4 роки тому +3

      This is a cringy phone call. 600k and only profit was 100k? Not a million? Its sad and laughable at the same time.

    • @johnristheanswer
      @johnristheanswer 4 роки тому +1

      " eaven " , is that like " heaven calling " ?

    • @julianmontoya8660
      @julianmontoya8660 4 роки тому

      no or else she wouldn’t have called

  • @jaye9300
    @jaye9300 4 роки тому +11

    Love this more in depth business talk! It’s nice to hear a change in call in questions that help other business owners learn what all to look out for.

  • @Slingsomelead
    @Slingsomelead 4 роки тому +117

    Isn’t family great lol

    • @blacksmith0316
      @blacksmith0316 4 роки тому

      Yep. Especially when they think they have all the answers.

    • @shortyduwop9172
      @shortyduwop9172 4 роки тому

      Slingsomelead lol. You said it.

  • @nick000002
    @nick000002 4 роки тому +18

    Advice to caller....
    Ready......Run 🏃🏻‍♀️

  • @joeb1522
    @joeb1522 4 роки тому +23

    When Dave says book value, does he mean fair market value? The call was very confusing. For example, she said the inventory was valued at 1M. But she didn't talk about what liabilities the business has. It was impossible to tell if it was a good business deal or not.

    • @samanthacromer5378
      @samanthacromer5378 4 роки тому +1

      Book value is original price minus depreciation. Business liabilities outside of depreciation have nothing to do with book value. And running a business Dave's way would be no liabilities outside of depreciation.

    • @joeb1522
      @joeb1522 4 роки тому

      @@samanthacromer5378 Makes sense on book value, but based on the call, I am not sure if they used this definition, as it was said the inventory had 1M book value. If there was zero debt, the company should be worth at least this much. And all businesses, including Dave's, have some liabilities, just not any long term debt. Liabilities such as accounts payable, accrued expenses, wages payable.

    • @samanthacromer5378
      @samanthacromer5378 4 роки тому

      @@joeb1522 Dave tends to not finance things but pay in cash therefore he likely wouldnt have accounts payable. Wages payable most likely because unless the business is paying employees a check at the end of the month there would be a wages payable account. But again book value is the price paid minus depreciation. That is simple accounting/book keeping. So if they business isnt worth 1M there is depreciation on the inventory somehow or other. And I'm not pretending that the business in question is run by Dave's principles but liabilities like accounts payable, wages payable, etc are not used to calculate book value of a business anyway. The book value of a business looks at original purchase price minus depreciation.

    • @ThinkBlueAZ
      @ThinkBlueAZ 4 роки тому +1

      100%. It wasn’t clear enough and Dave did a poor job asking questions and clarifying things. So she got bad advice in the sense that the person offering the advice didn’t have a clear picture of her situation. Dave is just speaking in generalities that may not apply to her circumstances.

    • @joeb1522
      @joeb1522 4 роки тому +1

      @@ThinkBlueAZ Yes, I completely agree. Dave knew 5% of the facts and quickly jumped to the conclusion it was a bad business deal, but he didn't ask the right questions to know if that was the case. It was very confusing.

  • @RedTop-yo4ds
    @RedTop-yo4ds 4 роки тому +37

    What kind of business is this? What is this inventory? It could be marbles or car parts.

    • @fordtechchris
      @fordtechchris 4 роки тому +8

      I was wondering if the business can't sell the marbles, how are they just going to eliminate the inventory quickly? I guess by just not restocking the marbles?

    • @andykapsar4667
      @andykapsar4667 4 роки тому +2

      warehouse fire and insurance claim could fix inventory issue as well 🤔

    • @notroll1279
      @notroll1279 4 роки тому +3

      @@andykapsar4667 Yeah... and for the next couple of years they'd save a lot on housing because that will be taken care of by the local jail.

    • @ginnywilliams8159
      @ginnywilliams8159 4 роки тому +4

      Sounds like a pyramid scheme/MLM. They are incredibly predatory and put people in bankruptcy and ruin relationship. This call has all the hallmarks of a mlm. Its shady AF.

    • @TheKnellBelle
      @TheKnellBelle 4 роки тому

      @@andykapsar4667 😆 Hahaha!

  • @sensiblewheels
    @sensiblewheels 4 роки тому +11

    I really want a car I can't afford and won't buy it because of the lessons learnt hear but this title just felt personal 😄

  • @MR3DDev
    @MR3DDev 4 роки тому +13

    I have a swamp to sell them in Florida, is valued at 800k, aligators not included

    • @EdgarD4GEspada
      @EdgarD4GEspada 4 роки тому

      TechYK 😭💀😭

    • @No-handleneeded1
      @No-handleneeded1 4 роки тому +1

      Throw in some pythons and it’s a deal 😂😂

    • @tenhundredkills
      @tenhundredkills 4 роки тому

      No gators? NO DEAL!
      On second thought, I'll settle on some flamingos!

  • @jcrowley1985
    @jcrowley1985 4 роки тому +30

    Just wait a few years and inherit the business. You'll get it eventually anyway so why waste the money

  • @slidegirl6005
    @slidegirl6005 4 роки тому +5

    I’d love to know what the inventory consists of. I’m guessing blackberry devices and Despicable Me beach towels.

  • @scubasteve9566
    @scubasteve9566 4 роки тому +30

    She's expecting them to pass before paying the money back 🤦‍♂️

    • @magicworld3242
      @magicworld3242 4 роки тому

      Exactly

    • @skyelizsam
      @skyelizsam 4 роки тому +2

      No, she's HOPING they pass before paying it all back lol

  • @billstidams6658
    @billstidams6658 4 роки тому +52

    This woman is clueless. She shouldn’t have called in. She can’t answer the simplest questions. And Dave didn’t ask the right questions. What kind of business? How much real estate, vehicles, clients, years in business, ect? Was that 100,000 profit the parents part after paying their son’s salary too? Is this a family contract? Meaning no interest? Growth potential? And another thing.. I own my own business and am taking care of my own retirement, when the time comes for me to retire I’m handing it over to my son absolutely free.. why would you want to put your kids in debt for your financial gain? Scumbags...

    • @Dmal2301
      @Dmal2301 4 роки тому +1

      No she should have called because Dave is gentle while giving it to her straight and to let other people think and beware

    • @calebniederhofer6529
      @calebniederhofer6529 4 роки тому

      100% correct , and i would guarantee her numbers off too.

  • @cheezybred
    @cheezybred 4 роки тому +50

    She doesn’t know what’s going on and is ready to go into 600k of debt cause mommy wants her to

    • @ceecee8757
      @ceecee8757 4 роки тому +15

      Correction, Mark: her mommy-in-law, honey. ;)

  • @autd5244
    @autd5244 3 роки тому +3

    I think it’s hard to say the business isn’t healthy without seeing full financials.... and depending on seasonality and aging of inventory, the inventory could be healthy... and depending on the multiplier the cost may be reasonable. Strong stance on not enough info.

  • @sunnysingh786
    @sunnysingh786 4 роки тому +1

    I don't care how good or bad the deal is but I strongly believe that family/friendships should not be mixed with business.

  • @stephaniekc
    @stephaniekc 4 роки тому +36

    The caller really has NO clue.

  • @ryankiel4895
    @ryankiel4895 2 роки тому +1

    For over a year I have wondered what kind of business this is !!! Clothing store, liquor store, florist shop, what kind of business is it ??

  • @NeoAndersonReloaded
    @NeoAndersonReloaded 4 роки тому +2

    This will cause problems later on. Son not making money and parents want their retirement.

  • @matthewurquhart7347
    @matthewurquhart7347 4 роки тому +2

    Shes going through with it you can tell shes so emotional invested

  • @BagsNBaguettes_327
    @BagsNBaguettes_327 4 роки тому +60

    This woman has no clue about this book of business. Taking on something you don’t understand 🤦‍♀️

  • @adamross4295
    @adamross4295 3 роки тому +2

    Never do deals with family or friends

  • @EliteClinicalResearch
    @EliteClinicalResearch 4 роки тому +26

    Business is way overpriced.

  • @MrBrianDuga
    @MrBrianDuga 4 роки тому +9

    the stuff divorces are built on.

  • @edgehodl4832
    @edgehodl4832 4 роки тому +2

    Dave is very good at business, I learned so much just from this short video

  • @ibmtpx24
    @ibmtpx24 4 роки тому +1

    All I can say is there is a reason that they get to buy a business for 40% discount. And they are in a rush to pay enough attention to that reason, which is a dangerous decision.

  • @x1area51ii7
    @x1area51ii7 4 роки тому +5

    For me $100 bucks cc debt, I'm definitely going to rice and beans diet asap.

  • @PInk77W1
    @PInk77W1 4 роки тому +1

    Reminds me of the movie FARGO
    The part where the guy is trying to borrow money from his father in law. LoL.

  • @Metal7771
    @Metal7771 2 роки тому +2

    One of my inlaws offered to buy us a house, ha! No thanks you are not about to control us like that.

  • @rustyscrapper
    @rustyscrapper 4 роки тому +6

    This reminds me of the time someone tried to sell me a molly maid franchise for $150,000. I asked him how a used car with molly maid wrap on it and a closet full of cleaning supplies is worth $150,000. he tried to convince me that I am buying his loyal customers and guaranteed cash flow from that. At least he was telling half truths as he had a real customer list who wanted continued service but I didn't want to get into that business. I know a guy who bought a quick curb business for $200,000. I told him that beat up old truck trailer and quick curb excreter is not worth $200,000 the equipment is worth $80,000 tops. I asked him if he is inheriting the old owners loyal and dependable customers with that deal, in the form of contracts already signed, and the projected profit from those contracts is more then $120,000. He didn't know what I was talking about. I don't know if he did a single job with that equipment.

    • @Dr.C_Stag
      @Dr.C_Stag 4 роки тому

      rustyscrapper Sad story. 😞

  • @thelimey351
    @thelimey351 3 роки тому +7

    If her husband doesn't agree then she needs to get him on the show and Dave Ramsey can clobber him over the head with some good sense.

  • @MrNGTfan123
    @MrNGTfan123 4 роки тому +14

    She has no idea what’s going on.

  • @Jelly._.cat._.1
    @Jelly._.cat._.1 4 роки тому +15

    I no nothing about owning a business. Buuut, if you are going to make only 10% doing something that I’m sure is full of stress. Why not just put the money in a mutual fund that makes 10%?

    • @Matzes
      @Matzes 4 роки тому +1

      No Such thing as a 10% return mutual fund, especially after taxes

    • @DewTime
      @DewTime 4 роки тому +3

      Matz G the S&P 500 returns on average 10% every year.

    • @Jelly._.cat._.1
      @Jelly._.cat._.1 4 роки тому

      Matz G thanks for the lesson

    • @ineedhoez
      @ineedhoez 4 роки тому +2

      @@Matzes dude... the 30 year return is like 12%. Don't speak on things you know nothing about. There are mutual funds returning 15% and up at the 10 year mark. The original observation was correct. If you are only getting 10% on your ROI you can get that from mutual funds and not lift a finger.

  • @ssboot5663
    @ssboot5663 4 роки тому +1

    Have you ever looked into how much /US / Canadian/ farm are worth compared to the return?Lots of investment and small profits by ratio.Kids shouldn't owe parents a retirement.

  • @kathyv5447
    @kathyv5447 3 роки тому

    Having worked in accounting and finance for 20+ years, I’m constantly being asked why I don’t start my own public accounting firm. My standard reply is that people do some stupid things with their money. I don’t have the patience to mop up the mess. The worse part is occasionally friends and family will ask advice, but turn around and do whatever they want expecting me to magically bail them out of the problem. You have the patience of job. I’d be cursing at half of your callers.

  • @ThePeterDislikeShow
    @ThePeterDislikeShow 4 роки тому +1

    I wouldn't buy it from family, period. For one thing if the business isn't my strong suit anyway I"m not the best person to buy it.

  • @freedomworks3976
    @freedomworks3976 3 роки тому +1

    It might be a case of the owners don’t really want to leave there business they just don’t want to work so hard anymore.

  • @araineacutebrownnurse7315
    @araineacutebrownnurse7315 3 роки тому +1

    “ And it’s his mommy ! His mommy ! Oh my God ! “ 😂😂😂😂😂😂😂 I love Dave

  • @Ces999919822
    @Ces999919822 4 роки тому +15

    2 years later: Hi Dave, we’re bankrupt and being sued by our in laws because they’re bankrupt now as well. Also, we just filed for divorce.
    Dave: Beans and Rice, Rice and Beans