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Heres what Ramsey says abouthow he invests in real estateand his opinion on mortgages for investment properties.
Many financial advisors recommend putting your money into a diversified portfolio.
What this means is that you minimize risk by not keeping all your money in the same place.
Ramseys approach is a bit different.
Ramsey is known for being conservative when it comes to debt.
He began his real estate career at 18 and becamea millionaire by 26.
He then faced bankruptcy, which he says was due to heavy borrowing.
Ramsey now promotes avoiding mortgages where possible, especially when it comes to investment properties.
Ramsey saysbuying real estatewith cash reduces financial risk.
Without debt, investors can fully benefit from property appreciation without the burden of interest payments.
However, purchasing property without a loan requires substantial upfront capital.
This may not be practical for everyone.
Some financial influencersmay argue that using mortgages can amplify investment returns.
Low-interest loans can free up capital for other opportunities.
But this does come with increased risk, especially if property values drop or rental income decreases.
Before making investment decisions, its important to assess your own financial circumstances.
It can be a good idea to consult with a financial professional who can provide you with personalized guidance.
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