Investor · Waxhaw, NC · Member since 2014 · 28 posts · 5 votes
How do you handle this question? When friends or family find out you are an investor, this is the first thing they want to know. It's like asking someone how much do you make a year.
I understand their curiosity but I am not always comfortable anwering this question. However, if I am talkng with another investor, it is appropriate. Your thoughts?
What they don't realize is that the answer won't really give them much information (assuming they're trying to gauge your financial situation). You could own 3 properties free-and-clear, which puts you in a much better financial position than if you owned 50 that were near 100% leveraged.
Like everyone else my answer varies: Not enough is the standard reply. If a friend asks I'll tell them, and if I'm at a BP meetup I'm a lot more open about it. Of course I always offer to sell them something in vegas if they want to get started. :)
I'm in Rick's camp; my typical response is I'm always horse trading and the number constantly fluctuates.
Besides, the number of properties you own is unbelievably irrelevant. There was a guy bragging of the 100's of doors he held. Last I heard, he'd given many of them back and what he was holding was bleeding him dry. Jack Miller used to tell a story about a guy who went to his seminar then went out and bought 100 houses or so. It wasn't long before he lost them all because he'd purchased them all using bad terms. I've known lots of investors who owned lots of stuff, but weren't able to dig their nails in and hang on and lost it all.
So, maybe a good retort to these inquisitive minds might be "The number of properties one owns isn't as important as the cash flow one receives, but talking about one's income isn't polite so I only discuss it with my wife/husband/cpa/bookkeeper/cat/dog."
I am happy to share the details of my portfolio. I have no reason to hide it. I have been called slumlord only half jokingly I think and others ask how my real life monopoly game is going. I am investing my hard earned cash in a legitimate investment. What's the shame in that?
I'm a quiet one so I would probably be vague and respond "There is only one that is most important to you and it's this one". I don't like people judging me by the number of properties I own.
I am still small time in the game (only have 3 rentals) but I know I will be growing yearly. The way I answer the question depends on who I am talking to. Most of us have a good read on the people in our circle (or at least we should). I have a mixed circle (professional associates and hood associates, lol). If it is someone I know personally and I have relative evidence they have their financial life in order and exhibit good decision making, I tell them the truth and expand on what I am trying to do. They could be potential partners or private lenders one day if I show I am successful. If they are non-working associates of associates who talk but never act, exhibit bad decision making throughout life, need money, and are sizing me up, I tell them the number but paint a picture of stress, risk, my money is tied up, tenant issues, and life is gloom and doom, lol.