Adored by financial advisers who pay his organization an advertising fee for client leads, radio host Dave Ramsey on Wednesday morning took to Twitter to rail against the timeshare real estate industry.
InvestmentNews posted a column on Tuesday that detailed the Dave Ramsey Show's endorsement of a business that is the center of a current lawsuit by Washington Attorney General Bob Ferguson. Called Timeshare Exit Team, the company promotes its ability to get consumers out of real estate investments.
That triggered a Tweet late Tuesday from Mike Flaskey, CEO of Diamond Resorts, who took a swipe at Ramsey. Flaskey wrote: "Wow! @DaveRamsey has made millions endorsing @TimeshareExitTM who is being sued by many, including the #WashingtonState#AG @BobFergusonAG."
Wow! @DaveRamsey has made millions endorsing @TimeshareExitTM who is being sued by many, including the #WashingtonState #AG @BobFergusonAG. Check this story out! Time for Dave Ramsey to check out of this timeshare exit endorsement https://t.co/wpths4mPjM via @investmentnews— Mike Flaskey (@TheVacationDR) May 20, 2020
Ramsey, who preaches a gospel of debt-free living and saving across hundreds of radio stations, was also triggered. In a Tweet this morning, he leaned heavily on all-caps and wrote: "Proud to endorse Time Share [sic] Exit as long as SCUM like Diamond Resorts continues to RIP OFF the consumer, break laws and provide crummy products. NO ONE needs a horrible Time Share."
Proud to endorse Time Share Exit as long as SCUM like Diamond Resorts continues to RIP OFF the consumer, break laws, and provide crummy products. NO ONE needs a horrible Time Share https://t.co/wxi5kgeY2m— Dave Ramsey (@DaveRamsey) May 20, 2020
A timeshare is shared ownership of vacation real estate and typically sold by the week. The industry routinely faces criticism from consumer advocates who claim timeshare properties lose value and are extremely difficult to resell.
A spokesperson for the Dave Ramsey Show, Megan McConnell, did not immediately return phone calls seeking comment.
It's not clear how much revenue the Dave Ramsey Show generates from its plug of Timeshare Exit Team, but the February complaint by Washington state characterizes the relationship with the Dave Ramsey Show as "Reed Hein’s most profitable endorsement."
As InvestmentNews reported in 2017, financial advisers can profit handsomely from their association with Ramsey, his radio show and assorted businesses by getting leads to potential clients who sign up through the Dave Ramsey Show website.
At that time, advisers paid fees for the referrals, ranging between $400 per month and close to $900 per month, based on the size and population of the territory, as well as the number of referrals that come in over a period of time.
Advisers pay the advertising fee and are part of a directory, called SmartVestor Pros.
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