This is the Ramsey Call of the Day, part of the Ramsey Network.

Today's question comes from James in California.

He says, Dave, out of curiosity, specifically how did you make your first million after your bankruptcy?

Hmm.

That's a good, I don't even know this story.

I'm not sure I do.

Take us back there, Dave.

I'll have to think about it.

So this was back in 88?

So I filed bankruptcy in September of 88.

And what I did after that was I went back to doing real estate deals.

Only I couldn't buy real estate anymore because I had no credit and no money.

So no one would lend you money.

So what I would do is tie up a deal and then sell the contract to another investor that used to be a competitor of mine but we're friends.

And so I did, you know, what you might call a dry flip.

In other words, I would sell the contract positions.

So I go contract for a house that's worth $200,000.

I would contract for it for $110 and sell it to a buddy of mine for $10,000,

and he could close on you have $120,000 in it, right?

It's still $200,000 house.

So I was still doing foreclosure deals.

I got back to doing six figures in 89 again.

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