Closed on my second deal! Now everyone wants to know about the $

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Contractor · Chicago, IL · Member since 2016 · 4k+ posts · 2k+ votes

My first deal was a long 3 year house hack flip in Louisville, KY, which was quite successful. I profited close to $80k!! I doubled down and closed on a 2 flat in Chicago which was quite expensive ($665k). Now that I closed all my friends, co-workers, and family are constantly asking about how much the new placed cost, what I am going to put into it, etc.

As seasoned investors do you disclosure a lot of your financials to co-workers, friends, and family?

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David Zheng

Investor · Saint Louis, MO · Member since 2016 · 970 posts · 1k+ votes

I only do it to impress girls at a bar.

just kidding. kindof.

if they have money and are potential investors in me, I'll tell them ballpark numbers

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Kristopher HanksPro Member
Rental Property Investor · Davenport, FL · Member since 2016 · 593 posts · 382 votes
9y
@Jonathan Klemm I do only if they are an investor with an interest in my business. Otherwise, none of their business.
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Erik HitzelbergerPro Member
Investor · Louisville, KY · Member since 2011 · 331 posts · 278 votes
9y
People are always fascinated by real estate investing. Their interest is typically harmless, but there is no need to share information you don't feel comfortable disclosing. You can easily tell them about the remodel and all of the work that went in to it. If the press for financials, simply say, "It was a good deal or I'm really happy with the results."
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Adam Daneff
Rental Property Investor · Charlevoix, MI · Member since 2016 · 51 posts · 13 votes
9y
@Jonathan Klemm if you will tell uncle Sam, why not tell friends and family. If its a good deal tell them about it
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David Zheng
Investor · Saint Louis, MO · Member since 2016 · 970 posts · 1k+ votes
9y
I only do it to impress girls at a bar.
just kidding. kindof.

if they have money and are potential investors in me, I'll tell them ballpark numbers
7 Reply
Michael Seeker
Investor · Louisville, KY · Member since 2011 · 1k+ posts · 1k+ votes
9y
@Jonathan Klemm - I instituted a policy recently that when friends/family inquire about financials, whether it be cost of a property, cost of a rehab, my income, net worth, etc...I'll tell them they can have one guess and I will tell them whether the true amount is higher or lower.
It keeps things light and interesting without divulging too much info.
When it comes to how much you paid for a property, I've found that information to be very easily accessible online everywhere I've owned. Not sure if Chicago is the same way, but I would not try to hide a purchase price from a friend/family member when any random person could spend 15 minutes or less figuring it out on their own.
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Crystal SmithPro Member
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Real Estate Broker · Chicago, IL · Member since 2014 · 2k+ posts · 1k+ votes
9y
As seasoned investors looking to attract private $ to support our deals we put together a prospectus that shares with potential investors examples of past deals & upcoming opportunities. This means sharing financials. If friends & family say they are interested in investing in our business we treat like any other investor & share the same prospectus so they understand our strategy, the risks, rewards,.....
312-681-7487
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Account Closed
Investor · Leander, TX · Member since 2016 · 296 posts · 402 votes
9y
You can't shut me up. lol
2 Reply
Jeff Burdick
Investor · Chicago, IL · Member since 2016 · 515 posts · 247 votes
9y
Originally posted by @Jonathan Klemm:

My first deal was a long 3 year house hack flip in Louisville, KY, which was quite successful. I profited close to $80k!! I doubled down and closed on a 2 flat in Chicago which was quite expensive ($665k). Now that I closed all my friends, co-workers, and family are constantly asking about how much the new placed cost, what I am going to put into it, etc.
As seasoned investors do you disclosure a lot of your financials to co-workers, friends, and family?
In general I don't mind telling people if I have a previous relationship with them and trust them. I generally worry more about sharing it in these public forums where the whole World has access to them.
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Federico Gutierrez
Realtor · Cleveland, OH · Member since 2015 · 2k+ posts · 857 votes
9y
If you don't talk to people about money then how would you attract people with money who have the same goals? I tell my friends whom I am close to, with family it's openly discussed as we are all in real estate. With my clients I find it puts them at ease when I disclose what I make and have made.
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Jay Jasunas
Investor · Littleton, CO · Member since 2017 · 66 posts · 39 votes
9y
I love talking to my friends and family about the deals I do. I am proud of them and they seem really interested to hear the details. Most people are afraid to invest in real estate so for them it like living the dream through you.
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Glenn McCrorey
Investor · Cedar Rapids, IA · Member since 2013 · 494 posts · 407 votes
9y
I used to be like a religious zealot wearing a sandwich board, standing on a street corner shouting to passers by that RE investing is the greatest thing in the world and why isn't everyone doing this? Especially friends, family, coworkers, but also cab drivers, you name it. Now, I mostly just communicate with fellow investors (which includes both my children), my friends on BP, etc.. Closed on our 46th property this morning and having a cigar on the porch, listening to a podcast, and enjoying life.... oh yeah, "repent the end is nigh"!
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Sarah D.
San Diego, CA · Member since 2015 · 273 posts · 226 votes
9y
I'm the type that will look up how much a friend paid for their house if they don't tell me... so I tell people to save them the time of looking it up online.
2 Reply
Jeremy Jackson
Real Estate Agent · Brandenburg, KY · Member since 2015 · 277 posts · 68 votes
9y
I used to think talking about money was taboo. Now I just view it as a number. If they are genuinely interested, I'll share info. Especially friends. You may be surprised in who you inspire with your success.
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Victor Trujillo
Rental Property Investor · San Diego, CA · Member since 2017 · 21 posts · 12 votes
9y
Originally posted by @Jonathan Klemm:

My first deal was a long 3 year house hack flip in Louisville, KY, which was quite successful. I profited close to $80k!! I doubled down and closed on a 2 flat in Chicago which was quite expensive ($665k). Now that I closed all my friends, co-workers, and family are constantly asking about how much the new placed cost, what I am going to put into it, etc.
As seasoned investors do you disclosure a lot of your financials to co-workers, friends, and family?
I reckon if they realistically pose a threat, not to divulge such information. But as a few have said on this post already, the information can be accessed online if that person has insidious intentions anyhow. Criminals will always have a way of doing evil, stay tight on your security and it may bring you more confidence my friend.
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