The Dave Ramsey vs. eXp Realty Estate feud has been ongoing for years. Dave Ramsey, a well-known financial advisor, is against eXp Realty for many reasons. Some of them may be genuine; perhaps eXp supporters think otherwise.
This article will outline the history of their relationship and why he takes such a strong stance against them.
Dave Ramsey Against eXp Realty
Ramsey has a stance against eXp agents because he feels they are dishonest and scammers. They misrepresent themselves to clients to make quick money instead of getting them the best deals possible (think of “buying leads”).
Dave Ramsey ELP is one company that Dave himself endorses. It also accepts costly referrals from eXp agents.
In one of his podcast episodes, Ramsey explains why buying leads could be hurting your business. Although his solution appears sound at first glance, it may not always work for everyone.
Some brokerages require commitment to a certain period from sellers who need to sell their homes fast before they lose too much equity or end up renting out their property temporarily as they wait for better days.
Ramsey also decided to take a business coach position because he felt his company was not growing as fast as possible. That people weren’t listening so well anymore (a common problem for entrepreneurs). He ended up endorsing local agents.
Ramsey decided to switch to another brokerage and took such a stance against eXp Realty in the long run. Like many other businesses who have switched over after being charged high fees or learning, they can get better deals elsewhere.
eXp Realty
eXp Realty is a company that has been around for over over a decade and offers full-service real estate brokerages, home building, and mortgage services. As a full-service real estate brokerage provider, eXp Realty takes care of everything
They also have local agents that Ramsey does not endorse or feel comfortable with. In a podcast episode, he mentioned that eXp’s referral fee could be up to $5,000 per lead depending on where it comes from (e.g. higher-priced areas like Manhattan).
This may mean sellers could end up losing equity if their property doesn’t sell within 30 days after listing due to the high eXp referral costs. Although there is a chance you may be able to save on commissions, the cost of referrals could be costing you more in the long run.
History of Dave Ramsey ELP and eXp Realty's Relationship
Business coach Dave Ramsey and eXp realty have had a long history of working together, both benefiting from the association. eXp Realty acquired Ramsey Solutions in 2010 without outside participation or disclosing the terms to investors at that time. The acquisition helped boost the company’s revenue stream and client base.
Ramsey Solutions is still owned by Dave, who has no operational control over either company. However, this did not stop both companies from profiting off each other’s services through employee cross-pollination.
Dave Ramsey vs. eXp Realty: What is the feud?
The feud between Dave Ramsey and eXp Realty started in 2010 when Ramsey Solutions, founded by Dave in 1992, was acquired by eXp Realty. The acquisition occurred with no external participants and the terms of the deal were not disclosed.
In an interview between Rich Dad Radio’s Tim Rosenzweig and David D’Alessandro, where they discuss how this acquisition would affect their respective businesses, it becomes clear that some animosity remains on both sides.
Dave Ramsey, famous for his financial advice, took an aggressive stance against eXp Realty. This was not welcomed by their company president David D’Alessandro when he said, “I am very well aware that he doesn’t like me, and I’m also quite sure that he doesn’t like our brokerage.”
On the other hand, Dave believes it would be more beneficial to take some business or personal stance against one another if only they can stand apart as competitors due to how close they are now with this recent acquisition.
Even if you listen to his podcasts, you will hear Ramsey and his company discussing things that don’t favor eXp Realty.
But the real question is, why is he against them?
One of the reasons he is against eXp Realty is he believes that the company president David D’Alessandro does not like him very much. Also, after Dave Ramsey ELP accepted costly referrals from eXp Realty, he grew very cold to them and decided to take such a stance against the company.
Ramsey Solutions: Accepting Very Expensive Referrals
In an interview with Rich Dad Radio, Ramsey explained his position on accepting expensive leads through these words: “A year ago I decided I would only refer people to real estate agents who were exclusively working for our brokerage company. I think it’s important because we are trying to set ourselves apart.”
This is in direct contrast with the advice he offers listeners on today’s podcast, where he says, “We’re going to give you some names of local people if you want somebody else to work with.” This means that Ramsey Solutions accepts costly referrals from real estate agents.
According to eXp, Dave Ramsy’s Endorsed Local Partner is a costly service to their clients.
You can hear the podcast about what happens if somebody switches brokerage companies, among other topics. Still, there are no specific details on whether or not they take referral fees from those referrals for agents who endorse them.
Dave Ramsey has taken such a position by not allowing eXp agents to work for him or his brokerage firm. Ramsey says his agents cannot work with them unless they are exclusively working for his company. He gave them an ultimatum to quit unless they switch to another brokerage.
Is Dave Ramsey right to be against eXp?
Dave Ramsey does not think that eXp agents should be part of the Dave Ramsey team. Recently, he has taken a strong stance against eXp Realty and their tactics by refusing to endorse them as an agency to work with or sell leads from.
One reason would be because they refuse to comply with his standards regarding financial products. He doesn’t want people who don’t follow these rules working at his company – even if most real estate companies have accepted eXp Realty agents into their brokerage.
They are also accepting costly referrals; when you listen to today’s podcast about why buying leads is important, you will learn more on this topic.
Another reason is that people are starting to switch from other brokerages to Exp Realty. Well, Ramsey has been offering real estate services for many, many years. He also participates in coaching programs.
Even though he says his agent will no longer work for his brokerage unless they switch from eXp, it’s clear that he is still affiliated with them.
Frequently Asked Questions
eXp Realty is an excellent company to work with. They have a lot of experience and are on the same level as many other real estate companies.
No, eXp Realty is not a pyramid scheme. It is a real estate brokerage company that offers services for sellers and buyers.
eXp Realty is a real estate brokerage company that offers services for sellers and buyers. This includes agents knowledgeable about the industry, have experience in this field, and can help with your home buying or selling process.
You’ll find them on many social media sites like Facebook, Twitter, etc. However, they do not offer referral fees, so everything will be up-front when you contact them.
Dave Ramsey is not a real estate agent; he’s the author and host of The Dave Ramsey Show. He does promote his company ELP on this podcast, but Ramseys are not agents.
Final Thoughts
Dave Ramsey doesn’t want eXp Realty agents working for his company because he’s against how they do business. He is taking a strong stance against them by refusing to endorse their brokerage or sell leads.
Dave does not have anything to do with these guys because they refuse to comply with his standards regarding financial products and accept costly referrals. What do you think? Leave us a comment or a question below.
