Says Landlords Are Being Sold TikTok Dreams
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Personal finance expert Dave Ramsey is pushing back against the idea that real estate generates effortless wealth, warning investors that owning property requires ongoing work and responsibility.
In a video shared Tuesday on X, Ramsey dismissed the notion that rental properties qualify as passive income.
“People who say passive income on real estate are morons. There is nothing passive about owning real estate,” Ramsey said. He added that landlords must deal with “tenants, repairs, and real work” and argued that anyone claiming otherwise is likely “trying to sell you a get-rich-quick seminar on TikTok.”
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While stressing the challenges, Ramsey emphasized he is not anti–real estate. “Real estate is a wonderful investment. But do not go into it with rose-colored glasses thinking it’s going to be easy,” he said.
Ramsey contrasted property ownership with investing in mutual funds, which he called a genuine source of passive income. “They send me a statement in my inbox,” he noted, highlighting the hands-off nature of stock market investments compared with the day-to-day demands of property management.
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In July, on “The Ramsey Show,” Ramsey explained why many Americans were struggling financially.
According to Ramsey, the issue was not low paychecks. “You’re not broke because you don’t make enough. You’re broke because you give your income to everyone else,” he said.
On Monday, Ramsey once again targeted America’s obsession with credit scores, arguing that a high FICO score did not signal wealth but instead reflected years of debt payments to banks.
The Ramsey Show’s social media account posted a series of videos in which Ramsey dismissed the value of an 800 credit score.