This question goes out to all investors new and veteran. Currently I am wondering when is it the right time to let my friends and family know about my goal to become a real estate investor. I know there is no right or wrong answer and that the decision is completely up to me. I would like to hear when experience investors told their friends and families. Likewise, new investors, when do you plan on on telling them?
As of right now I am still in the education phase of my real estate investing career. I do not feel that right now is the time to let everyone know as I do not have enough knowledge about the business yet to sound confident to my peers. I strongly believe that my confidence will build as I continue my learning.
Any and all suggestion, tips, and comments are welcome!
I'm a Freshman to REI and I told my parents and girlfriend right away! They all wanted more information so I educated them a little bit on the general idea of it and they were all VERY supportive of my dreams. My dad even made the suggestion on going into business together which is so awesome. I hope this helps!
As soon as you can articulate what you're going to do. The more you say it, the more real it will become. And, if you can explain it to others, then you know you understand it.
There is no right time or wrong time. There is only NOW.
You tell them you intend to purchase properties below market value and sell them for market. Or...you intend to purchase properties at a price that allows you to rent them for monthly cash flow. Whatever your REI strategy is, it isn't all that complex to explain.
@Josh Barnes yes, thank you for the input! That is awesome that your dad suggested that.
@Hattie Dizmond You make a very good point that the more you talk about it the more it becomes second nature. Also, your post made me think that getting my loved ones involved would make myself more motivated to prove to them that I can do this.
Check these out...
Those are all blog posts about elevator speeches from the likes of Brandon Turner, Michael LaCava and Ankit Duggal. Developing a solid elevator pitch will up your confidence by 150%, when explaining what you're trying to do. Also, it's something you should be able to do really quickly, (You can perfect it as you go.) which will keep it from being just one more thing that keeps you in analysis paralysis. Get your elevator speech together then go listen to this podcast and focus on the part about action...
Your family is your biggest and easiest source of funding!
Thank you for all of the information @Hattie Dizmond ! I will have to start looking through those links.
Honestly after 2 years, 5 personal rental properties and 4 rental properties for my parents. I am JUST starting to tell people. In the beginning the few people that we told thought we were crazy. Honestly we told people as we felt to but certainly didn't broadcast it to the nation. I would tell people who you are comfortable with and feel with support you. The people who thought we would fail now just think I am crazy. Honestly do what you love and don't worry about those who don't approve.
We told people bits and pieces. Like we bought our first house or we bought x house. We don't really tell people the number or how long we are going to stay there. Over time people "figure" it out as you tell them new address. We didn't "boast" but let people figure it out in natural conversation. Like anything in the beginning people with think your crazy but over time you'll figure out who you talk to and who you don't.
Thats what is great about this site. You have all kinds of people to talk to. IOur specialties but we focus on higher end properties, class A properties. They do not follow the 1%, 2% or 50% rule but have done very well for us. I self-manage all over the country and have done very well. We focus on keeping are margins down through great houses with low expenses, no to limited vacancies and no management fees because we self-manage. Because we buy higher end homes we don't have these worries.
The one thing about Biggerpockets is our similarities as a whole end at the fact we all invest in real estate. Everyone here has a different "spice" and way to approach things.Therefore, another great resource is to check out the signatures of those who comments you enjoy. My website/blog that I just launched is all about land lording, self management from long distance, buying class A properties and turning them into rentals with lots of other good stuff :)
I look forward to seeing you around the site and learning a lot!
Elizabeth Colegrove Thank you for your post! That is sort of what I am thinking right now, just letting others find out for themselves when it comes up.
It depends on your friends and family. If they are not risk takers and are not entrepreneurial at all, they will either (depending on personality type) politely try to discourage you or they will throw cold water and derision on your ideas.
If they are business people or self employed types, they may be all gung-ho from the get-go.
So, disclose at your own risk, lol!
@Jean Bolger Well the problem is not that they are not entrepreneurial but that they are very entrepreneurial. Mainly my mom who owns her own landscape supply business that I have worked at my whole life. I believe she is the one that is my "entrepreneurial inspiration".
I want to be sure to have a good knowledge and understanding of the real estate business before disclosing my intentions.
Right time? Yesterday.
Be careful who you call peers.
Begin with formal education avenues, then read guru fiction for ideas and entertainment.
At least know what Realtors must know to get a license before you start, not much, but 75% of all the questions asked on this site boil down to those basic understanding.
RE is not a get rich quick industry, some get lucky early, most don't, plan for the long haul.
Good luck! :)
That is exactly my intentions, planning for the long haul. Thank you for your input @Bill Gulley . I have heard many different people say it is well worth it to get your realtors license. It is something I have not looked in to yet but plan to in the near future.
Could you expand on some of the advantages of getting your realtors license? (more then just the obvious "you will learn a lot about real estate".)
Don't have to get the license, but you should get that education.
That's another book, advantages and disadvantages. First two advantages, is the education, then the ability to list and sell, representing others legally. Disadvantages depends on the beholder of their niche, some can't operate ethically, some think disclosing your position is not a good thing, the advantages out weigh the disadvantages in reality. There are rules. You'll be years ahead of those who learn by niche and strategy. Several discussions on that topic ready for your reading.
Also ask yourself why real estate, list the reasons, none of your reasons can include anything about making money or ending up wealthy. If there was very little money to be made what are your other reasons for getting into the RE industry? If you can list 5 good reasons then you might be right for a profession in RE. :)
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