Investor · San Francisco, CA · Member since 2010 · 910 posts · 889 votes
Hi All,
Last year I purchased two SFH as rentals and I am looking for more. I sought some advice from a few coworkers whom are knowledgeable in the RE field but were big talkers and word quickly spread about my investments (my mistake). I'm in my mid 20s and people now think I'm rich. In reality, my property's are financed with little down, I live at home, and save about 90% of my income. I am getting tired of all the comments and I hesitate now when people ask me what I did over the weekend (flew to X to view homes or something else related to RE). Only my close friends and family know about these investments and I wonder should I limit this or just tell the world? I am a pretty transparent guy, so it's difficult for me to keep things in, but hate some of the comments people bring up.
I am curious how BP members who are passive investors and have full time jobs, how they handle this and the comments?
You definitely need to be careful with this if you are working for someone else. People have a way of being quite jealous about PERCEIVED wealth if you disclose your real estate holdings. This could hurt you professionally through no fault of your own.
I don't try to hide it. Most people around me know that I do REI but they never know how much or how little. I like people to know, I might be interested in bailing them out or giving them a job one day.
You definitely need to be careful with this if you are working for someone else. People have a way of being quite jealous about PERCEIVED wealth if you disclose your real estate holdings. This could hurt you professionally through no fault of your own.
What's the downside to people thinking you're rich? Let 'em think whatever they want.
If the subject comes up, you just tell the truth. It's like any other business, and you have to work at it. Nothing comes easy.
As for what you did over the weekend, I don't think you have anything to hide. If you went to look at properties, you went to look at properties. As Bill said, I think any "razzing" you might get is just jealousy and piqued curiosity. After all, you're pretty young to be getting started, but you're way ahead of 99% of your peers.
I bet people used to needle Bill Gates, too. Who's laughing at Bill Gates now?
Live your life the way you wish, and talk about it only to the extent you're comfortable, and with people you trust. At the end of the day, you're accountable only to yourself. (Oh, and the IRS.)
This is an interesting topic. I've noticed after getting involved in this that people who would never ask you how much you earn at a job have no qualms about asking about your mortgages, etc. -- private information.
But there's no point in getting ruffled about it because it's not going to change. I think most people are just genuinely curious about real estate investing. The time not to discuss it is with tenants/applicants, contractors or anyone who use the information to their advantage against you.
I tell people all the time I'm a real estate investor and, guess what? I've met OTHER real estate investors in the process! We then discuss experiences, markets, future projections, portfolio holdings, compare notes, etc. There's a word for this, hmmmm, let's see - what was that... Oh Yeah, NETWORKING! Your network must be built, often one person at a time, it doesn't come to you in a nice neat little package.
Of course, I limit my details, especially those that don't have any relevance to the topic, but I'll pretty much discuss anything with them that I discuss here on BP. But I'll only talk about it if the listener has a genuine interest in real estate, otherwise, I risk being a bore. Remember, talk to inform, not to brag.
Absolutely, the more people that know the better. Not only can it help get private money, people will come to you when they know of a motivated seller or a buyer.
Makes it very hard to get along with folks when just about everyone in my 'social peer group' slaves away in a cubicle doing their 50 hour workweek and I have the most awesome job in the universe.
If I'm at one of my kids functions and someone ask, I just tell them "I'm in real estate" and leave it at that. Most don't press further.
If I'm networking, I'll tell anyone what I do.
My friends know I'm doing it but most have no idea what I'm doing and how involved it is, although one friend tried to give me a referral. It didn't pan out but she got the concept of what I was doing.
Well it is fine if the "haters hate"...unless it is your set of peers at work that think you are capable of being discarded because you "have the money for it." Or...people get jealous about it and treat you differently.
I have seen it happen both personally and from peers. I would just talk about stuff in a general nature and meet with people PRIVATELY if they want to talk specifics.
Great topic guys, I tell people what I do. It's a great subject of conversation and it opens doors for me. I was casually talking about a couple of homes I own with someone today and that led to a discussion about private money. You never know who is looking to invest or needs to sell. You have to enjoy what you are doing and it will show. As for the haters, they are there in every industry. Even in the medical field, there is jealousy and animosity towards people of perceived higher net worth.
I do not see any problem with talking about your real estate investments with your friends or coworkers. If you do it consistently, it's a pretty big part of your life, no reason to shut yourself off. Everyone else's comments about networking, private money, etc are dead nuts on as well.
When it comes to disclosing how much money you make through your deals, I would be wary. No one likes a bragger, especially when you're talking about money.
Thanks for your replies everyone. I appreciate every one of them.
Seems like the consensus is that letting people know that I invest is a good thing and can be a great networking opportunity depending on the audience but I should stay away from numbers unless its from one investor to another.
I like to work hard, stay humble, and under the radar. Seems like I need to scratch the third one to be successful in real estate.
I don't think you need to scratch, "being under the radar". Some investors I know are like the Masons. If you ask them about it they will tell you all about it, but they don't go around telling everyone just because.
I think you can have that balance, not needing to tell everyone, but if someone asks, you should be able to say easily what it is that you do. Leave it at that, and if they happen to be someone that can help you, or is in the industry, well then you just made a new contact.
I made this same mistake. Let a few co-workers know what I was doing and received 2 pay cuts in 3 months at my J.O.B.(even more reason to hate a job). First cut was across the board second was only a hand full, me included. I feel I received the second cut only because they knew that I could afford it. From that point on I never talk about my REI or any other victories of wealth with anyone from work. I will say that its made me even more driven to achieve my goals of getting out of the rat race.
I made this same mistake. Let a few co-workers know what I was doing and received 2 pay cuts in 3 months at my J.O.B.(even more reason to hate a job). First cut was across the board second was only a hand full, me included. I feel I received the second cut only because they knew that I could afford it. From that point on I never talk about my REI or any other victories of wealth with anyone from work. I will say that its made me even more driven to achieve my goals of getting out of the rat race.
That is horrible David! Exactly the type of thing I want to avoid. I work hard at my day job and I expect to paid accordingly!
I am very careful about mentioning REI on the JOB. I might need a longer lunch or leave an hour earlier to meet a contractor, or inspect a property, closing etc. Never mind I put about 10 hours in everyday. I can always expect the "better make up your mind" speech when I take some time. My mind is already made up; I just want things to happen in my good time. I think this is what Bryan has been refering to.
Don
The other side to this topic are close friends and family. There can be those that tell you that you just can't do it or that it is a bad idea. The nay sayers. Especially for those just starting out or thinking about starting. My best advise is to seek out a local REIA club and surround yourself with like minded people. Everyone needs positive reinforcement if we're going to succeed.
One time I heard a coworker reply to the question of how many rentals with "we have 4 homes." I liked that because it stopped the person and made them think and wonder, putting them a little off balance. You can tell when someone isn't well intentioned by their voice, as compared to someone that shares your enthusiasm. I love talking to people who own multiple properties and they me.
When I sense that tone of voice I say we have 5 homes and 7 cars. They stop for a second and then say rentals? I nod yes and leave it at that.
I have found that most friends are bored of this subject, especially the ones that do not invest. I do not talk about RE investing unless its with someone that shares the same interest.
As far as coworkers, thats a definite no for me. coworkers typically do not want to hear about your investments.
Coworkers can get quite jealous quickly when they hear about your business. Be careful with it...take them to lunch and talk about it, but try to avoid talking about it at work.
I have a consulting gig now so the partners are more receptive to people being entrepreneurial. You still have to be sparing with it though...do what is in your best interest and don't give people A REASON to impact your livelihood because of their jealousy.