Being Financially Free vs. Debt Free


74 comments on “Being Financially Free vs. Debt Free”

  1. Derek Moore says:

    Clayton and Natalie,
    Thank you so much for the free content you put out. My wife and i were debt free like Dave Ramsey suggest and we were doing OK. I have wanted to buy property for some time and watching you guys and the content you put out actually help put my wife at ease about debt. We just bought our first rental a month ago and we will be getting a second one real soon. Love your show.
    Thanks again

  2. Riche Noire says:

    they're so cute! Thanks for the advice but I have to side with Clayton on this one. lol

  3. Ken Davis says:

    I truly wish I had understood this concept earlier. About 7 years ago, I took a (to me) bunch of savings, about $75K, and paid off my house in one fell swoop, after 2 re-fi's and payments for 20-ish years. Had I understood then what I understand now, that would have gone into a couple of rent houses or an LLC partnership buying an apartment complex. I'm seriously considering pulling the paid off equity out of our house to get into another apartment or two, but I will evaluate any deals that come down the road to determine that.

    Clayton, one of the things that also comes into play on using a 401K (changing subjects, I know, but this might be something to discuss on one of your future discussions) is that it makes absolute sense to take the hit and withdraw for investing in real estate if your eyes are opened in your late 20's, or your 30's, even your 40's. But my wife and I have run the numbers every way we can, and we are just a very few years from retirement. There's a point at which you have to just realize you chose the wrong map to retirement using the 401K. No sympathy required, we have a healthy nest egg and will retire comfortably no matter what, but MAN I wish I understood this 20 or better yet 25 years ago! I'd already be retired.

    But a home equity loan on our "Dave Ramsey" model of already paid-off home would still certainly make sense, and if we run out of liquid funds for investing, which we are not close to as of now, we'll definitely consider recovering some of that equity and buying additional property. Unlike rental property and renters, whether single family or multi-family, my house doesn't pay me anything. Thumbs up as usual.

  4. Chris Snyder says:

    This show is great. "Don't bring up the boat!"

  5. Jason Woodard says:

    So I should have my Real Estate Investments in an LLC… how then can I use a HELOC on my personal home to finance an investment for the LLC?

  6. Ryan Stucke says:

    Dont go to art school for 300,000 😂

  7. Buy&Hold says:

    My Wife says that all the time too!
    Yes, I may be taking the dreams of a few but, MANY end up doing nothing because the “don’t want to do that!”

    You still have to pay off the Debt if you want to retire on it!

  8. Josh Bond says:

    Love the continuous content! The volume on your videos is a bit quiet on mobile relative to other YouTube channels FYI

  9. LaserGuidedLoogie says:

    I agree with Clayton on the silliness of going into debt for bad degrees. I know Natalie doesn't want to "make judgments," but I have seen this first hand. I own a house near a "liberal arts" university, and I rent out rooms to them.
    I have seen too many students do this to themselves: Go into debt for a degree with no market viability, then waste the most productive years of their life struggling to makes ends meet.
    If they want "enriching experiences" then they need to do that with their own time and money AFTER they have used debt money to pay for a degree that will make them actual money.

    -Ken
    http://www.LaserGuidedLoogie.com

  10. Buy&Hold says:

    Oh, you guys should do an Episode on Umbrella Insurance!
    I find it hard to believe someone could really get you for that much in a lawsuit!
    I must be missing something? LLC vs Umbrella Insurance!
    (I like that as the shows title too!)

  11. Jinsauk Moon says:

    what a realistic and lovely couple
    love you all!!

  12. allmightyjamestown says:

    I'm trying to invest In a Natalie Morris type of team mate wife. She's sharper than a razor blade!

  13. David R. says:

    Lol! You guys are hilarious and always keep it real. Great points on both sides. Thanks!

  14. Leadership with Mike says:

    I agree 💯 on the art school lol… but one of my BEST investments was a BOAT lol. It’s the family on the pontoon that has brought some of the best times… but this was purchased solely through real estate 👍🏻

  15. Marc Gregson says:

    I would love to hear about the trust structure

  16. Tomas Nunez says:

    I ve said this before, you guys are simply awesome!

  17. I don't want a channel I'm just commenting says:

    What about if (1)you had a property that was paid off and that was in an entity chain that leads to you. (2) you had an entity chain that leads to a trust and benefits heirs.

    (1) takes out a interest only mortgage with (2)

    Because the property is fully mortgaged a tenant cant sue for the property and only has access to a small amount of cash that is in the primary entity. Do you need insurance on the property?

    If (1) is sued and can't pay (2) then (2) forecloses, (1) does not put up a fight. (1) is broke and the tenant won't get anything. The chain of (1) creates a new last link and receives a new mortgage from (2) and the process starts over.

  18. Ashfaq Sheikh says:

    News for Dave Ramsey: Real Estate debt is an asset not a liability. RE debt is constructive not destructive a la credit card loans.

  19. Ashfaq Sheikh says:

    Natali & Clayton
    Debt has been used as a defensive ploy by corporations to fend off raiders for centuries. Sophisticated and worldly-wise explanation in simple terms. Nice job.

  20. kkbipswich says:

    I really enjoy you two and can see both sides of the art school debate! My daughter just graduated from college with huge debt and not a high paying job. Still – I believe the school was an excellent choice and we will see in the end how it all turns out. Love your videos and the podcast. Thanks for sharing your wealth of knowledge!!

  21. Kathy Malone says:

    Lol this is hysterical, Nataly is so cute but he is right about art, art just doesnt pay thats why the saying… for the love of art, art is a passion and a natural ability, not a business, my son went to art school, has 100,000.00 in bad debt and works for the school district in NY making 20.000 a year as a teacher assistant, he has a pt job making more as a home care aide, go figure, there are not 3Danimation studios in Long Island and if he would get a job as an animator would be making 30.000 a year the most, and animators get contracts which means no benefits 😅

  22. Lisa Wascher says:

    you guys are so cute how you banter back and forth. I actually taught psychology at an art college for a few years and was conflicted about being part of the system that encouraged college kids to take on debt. They were paying 68k for an undergraduate art degree, which may or may not be worth anything in the marketplace due to tons of competition and talent. I hesitate to say anything negative about it because they were kind people, but the teachers and students get the shaft financially in those environments, while the facilities and admin prosper. But hey, it's their business. Nobody forcing them to sign up, right? Although, I was just talking to a young lady last night that quit college to pursue another path. She was at MTSU where the sports coach got a 6 million bonus while teachers got a measly 3%. That's messed up.

  23. Claudia Schloeter says:

    Great videos as always. I have a question… should I buy a property with a tenant already in place? Do I rewrite her lease term? Any advice will be greatly appreciated

  24. Alan Villacampa says:

    Thank you for answering my question! Point well taken. I have consulted other pharmacists on this topic as well and I was given the exact same advice.

  25. Cesska STO says:

    Wouldn't having $150,000 in student loans make it almost impossible to get a bank loan to buy real estate? Isn't that one of the major factors in getting approved for a mortgage, your debt to income ratio?

  26. Abel Roman says:

    What about getting your LLCs under the protection of a TRUST?

  27. julie r says:

    The very things that make artists ‘artistic’ also tend to make them bad with money and irrational about debt and business. The two thought processes are diametrically opposed. Art is not practical or logical. It is not well thought out or researched. It is spurious, imaginative, random, capricious. I don’t think artists choose their career, it’s simply an extension of who they are. That said, I agree a college degree in art is likely to never have a good roi. A good artist can do well freelancing and needs no degree.

  28. Abel Roman says:

    By the way I love the way she balances you out. Excellent!

  29. Tara Kinney says:

    OMG – you two are adorable! Love this!!

  30. Daniel Turner says:

    Is President Trump looking to increase the number of houses you can finance for Real Estate Investing?

  31. shawn arthur says:

    What's your thoughts on home with asbestos siding. Beautiful home great price but has been on market awhile because people are afraid of the siding. I'll be using it as a rental

  32. Buy&Hold says:

    Good point!
    I did raise my auto policy but, honestly that’s probably good lawsuit protection!

  33. Buy&Hold says:

    What’s the site for the Wednesday morning Live POD_Cast?

  34. Kevin Golden says:

    Thank ya'll so much. That really makes me think. And um.. ya'll are just too cute… "Get an art degree… carpe diem!"

  35. novela collection says:

    Question: In your podcasts you say to buy a home in an LLC or put it in one to protect yourself, but then Natali said that your name (not the LLCs name) should be on the lease. Now if your actual name is on the lease with a phone number or address so the tenant can reach you then doesn’t that defeat any asset protection you get from an LLC? Thanks

  36. Calvin Williams says:

    I enjoy watching both of you on podcast and the discussions are very informative. Keep them coming you've help change my thought process. Thanks a bunch

  37. aramv says:

    Hey, going to art school went pretty well for me. I’m an award-winning film director & editor.

  38. Emz says:

    i like what you guys are doing, educating people financially but i will say that the going back and forth, trying to prove a point is unnecessary. when the bickering starts, i change the channel. figure it out offline and come back focused. you have good info and i would like see more . hope i didn't hurt anyone's feeling, just my thoughts.

  39. big J says:

    Lol I love hearing this banter, it was awesome.

  40. Jeremy Lane says:

    Dave Ramsey’s head would explode if he saw this video lol

  41. Gary Downes says:

    So buy properties and never pay off the debt? Doesn t that have an effect on your credit score to buy more real estate? Thanks.

  42. CJ Watson says:

    Great show. I often wondered about this. Was listening to you guys, robert, and others on loans all the time then Ramsey says its better to pay in cash instead. I get where he comes from not liking debt, being super cautious, less risky and both ways could make you free. What the Morris's and others are saying makes more sense to get there quicker by increaeing financial IQ to manage the risk. Great show.

    What are the chances of hitting it big in art vs real estate? Lol #ArtvsRealEstate

  43. Logan Shealy says:

    I am confused on one aspect. I understand using your tenants to pay off the loan you have on the said property, however does that not mean you will get much less money to yourself?

  44. Latitsah Lawrence says:

    Lol your wife look like a little girl blessing to you guys love the information enjoy but i need to take action🎊🎊

  45. AllNattyBo says:

    @Morris Invest First I want to let you and Natalie know how much I've enjoyed your video content. I've watched dozens of your videos in the past 2 weeks and have taken all of your advice to heart. I've formed my first realty investment LLC, initiated a business checking account, submitted a bid on a rental property this week, and read Rich Dad Poor Dad cover to cover. However, I need some sound advice as to what's more important: Paying off debt to creditors, student loans, car loans or directing extra earned income towards investment properties. I just watched a Dave Ramey video (https://www.youtube.com/watch?v=_Dfqa8efCIo&t=0s&list=PLWUy788Kwc2CQHRcU89vNUrb9bt00Xref&index=11). This message is conflicting to the "pay yourself first" concept as Robert Kiyosaki advocates. Perhaps this topic is a potential video topic? Again, thanks for everything.

  46. ruben gonzalez says:

    I love the passive aggressive arguement at the end of the video LOL awesome. Great video, thank you.

  47. Tracy Flex says:

    Hi Clayton, thanks for the great topic. I understanding putting money into something that will generate cashflow of 10% but what about the 20% you have to put down on the purchase. For like a 120k duplex? I have to put up about 24k cash to get the ROI for 10% ROI.

  48. Judith Releford says:

    I get both sides, but if I'm a "Picasso", I don't need an art degree. I'd rather have performing assets to carry me through until I'm discovered.

  49. Jason Doucette says:

    It's pretty sad that our society has such an emphasis on "debt is ok." It's so sad that debt is considered an asset. I get the thought idea, I just have a hard time accepting that some douchebag can just come along and take away from me what I've worked so hard for. It's almost more beneficial to be a mooch off society's ass than a hard-working contributing member of society.

  50. maria thiede says:

    My question is, should you put the entire available credit (heloc) as a down payment on a new house or just the minimum?

  51. Michael Wayne says:

    I have to agree with Clayton about art school. As much as I support people pursuing their dreams, reality must be considered, in particular the reality of the absurd price of going to school now. It's financial suicide if it doesn't lead to a job that can cover the cost.

  52. M Jave says:

    He is just being realistic about 💰🤑

  53. Main Account says:

    great information! Quick question can you buy house with LLC's please let me know thank you.

  54. Tan P says:

    "Any Vikings at any time could be attacking your 401k."

    Puts on helmet and shield

    Me: HONNNNEYYY GET MY SWORD

  55. Jeffy Tood says:

    Ain't doing her no good

  56. Sloppy Seconds says:

    Shes wrong

  57. GldenCat says:

    Can you make more videos on this subject?

  58. Roger Barraud says:

    Nice disguise, Pepper! 🙂

  59. Roger Barraud says:

    Do Art Degree, then go Full Gold-Digger!
    FTW!!!1!!
    🙁

  60. Roger Barraud says:

    Don't worry…. 99% of the Picasso-Wannabees will be smoking Dak and discussin the Hegelian Dialectic, rather than watching this channel 😉

  61. hendrick32 says:

    Clayton I got your point…. Natalie… you’re being a bit harsh… he was making a point… this is a show about being financially intelligent…. he wasn’t judging. Smh

  62. Anthony Dooley says:

    I am with Clayton. Any money you spend on Art School is a risky and probably terrible ROI. Art is great as a hobby, not as a field of study.

  63. Ditronus says:

    Thanks for the video! This was a question in my mind as I already have a primary residence mortgage, and I was wondering whether I should pay that off before starting the brrrr strategy seeing I could save like $27k at the end of 6 years and have a greater cash flow. It's all about trying to measure that opportunity cost, right? The hard part is trying to measure that, though; even, if I start acquiring more debt to gain more rental assets, when should I turn all that cashflow inward to pay off the mortgages to gain more cashflow instead of acquiring another rental property? That's my biggest question.

    I think it boils down to my worry of having a lot of debt and not being able to pay for it somehow in the future for unforseen reasons. I'm a bit stuck in thought.

  64. Robin Cobb says:

    This never gets old! Listening to them go back and forth over art school. Just fabulous! I love this channel!

  65. zeomarmob says:

    Well Picasso is dead, and modern art is trash. It makes sense that if you are not naturally artist to try to become artist by paying 300,000. And for natural artist it would not make sense because he already has it. So art degree is for wannabes or any other similar endeavor, like moving grass degree or breast feeding baby degree, if don’t have breasts, don’t go to college to get the degree in feeding babies, but if you have breasts but getting a degree on how to use them then you have a bigger problem than getting a degree. 🤓

    Oh by the way just learned something new today. The Vikings and IRS are synonym.

  66. Julian McClurkin says:

    I think the real gem here is being able to have a discussion with one another while producing content for your viewers. How you all disagreed with each other then came to an agreement without yelling or getting angry (at least from what you show here) was awesome. My wife and I are very similar in how we communicate. I love your content, and I would love to have you bring the family to a game sometime.

  67. Suzie Q says:

    I don’t like videos with you two, do one at a time.

  68. blaze 2017 says:

    Screw your dreams Learn a trade live below your means at first invest in real estate

  69. Michael says:

    Love the advice but have a question! We have student debt and a mortgage. Our current “draft” plan is to pay off “bad debt” ( student and car) first living like Dave Ramsey. Then invest in rental while maintaining our home for possible HELOC or rental on future. (In he interim learn and know markets) Debating to start out with turn key property as more of a learning starting point. Would love to hear your thoughts!

  70. Cherin Watanabe says:

    I'm a pharmacist so I feel like you were speaking to me personally. =) Any time I have a question about real estate, Youtube just seems to point me to your channel with the answer I'm looking for. Thank you!

  71. Shawn Stoik says:

    I want to be an artist, please teach me for 300K so I can make 40K ROI who cares….
    lol and money grows on trees… yay!!

  72. Kevin McMullen says:

    I went to college. I learned two things which I already knew going into it.
    1. Don't go to college.
    2. Don't get student loan debt.

  73. Alex Revencu says:

    Go to college but take accounting.

  74. Jennie Clark says:

    Great video!

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