Private Investor Transparency

[Mike Fiorese]

Hey BP!

I have a family member interested in investing in my next real estate endeavor, I'm concerned they will want to be a fly on the wall for every step of the process. They would strictly be a cash investor paid back via a set interest rate. How much do I disclose to them about the project (BRRRR)? I understand they are investing their hard earned money and want to make sure it is safe, but, I know the juicy details of the rehab will cause them to stress out.

Please share your advice and experiences.

Thanks!

[Michael Noto]

Be honest.  There is no point in not being forthcoming.  They will eventually find out what your plan is.  Also, being honest and upfront would keep them as an investor long term.

If you are going to conflict from a personality standpoint and value them as a friend/family member then I wouldn't even take their money.  Not worth it.