Real Estate Investor · Houston, TX · Member since 2010 · 37 posts · 326 votes
"So, how many properties do you own?" I get this question almost every time I tell someone that I'm a real estate investor. Tenants and applicants ask the same question also. I generally respond with a smile and say "At least this one." To me the question is about the same as asking a stranger how much they make. Do you get this question and if so how do you feel about it and how do you respond?.
Investor · Louisville, KY · Member since 2011 · 1k+ posts · 1k+ votes
13y
I get this question from friends, family and prospective tenants. I think everybody has different levels of comfort and to each his/her own, but I never have any problem divulging this information.
From a friends/family perspective, I like to show off my hard work and effort and don't mind if people know how many properties I have. Plus I see these people as a pool of potential partners/investors on future projects and as such want them to know what I'm up to.
From a prospective tenants perspective, this becomes a little less about showing off what I've amassed and more-so about letting them know that I'm an experienced landlord, not just some schmuck who will be in over his head when it comes time to make repairs or fix a leak.
At the end of the day, this information is public knowledge (at least in KY) - and sharing the number of properties you "own" doesn't really divulge all that much information about you or your financial situation seeing as any number of them could be highly leveraged, under-water or completely paid off. Not to mention they could have a wide range of retail values. So if you say you own 1 property or 100...what does that really mean to the person asking? To me, it tells them how experienced you are at what you do and how well you do it or maybe even how long you've been doing it.
Investor · SE, MI · Member since 2013 · 1k+ posts · 461 votes
13y
Robin-
I was just thinking about this the other day. I haven't been asked this yet, but I plan to say "We are just starting out" and smile. At the moment, we've just got the one rental, but I plan to use this answer for the next 10 years :) It is not anyone's business!
Investor · Louisville, KY · Member since 2011 · 1k+ posts · 1k+ votes
13y
I get this question from friends, family and prospective tenants. I think everybody has different levels of comfort and to each his/her own, but I never have any problem divulging this information.
From a friends/family perspective, I like to show off my hard work and effort and don't mind if people know how many properties I have. Plus I see these people as a pool of potential partners/investors on future projects and as such want them to know what I'm up to.
From a prospective tenants perspective, this becomes a little less about showing off what I've amassed and more-so about letting them know that I'm an experienced landlord, not just some schmuck who will be in over his head when it comes time to make repairs or fix a leak.
At the end of the day, this information is public knowledge (at least in KY) - and sharing the number of properties you "own" doesn't really divulge all that much information about you or your financial situation seeing as any number of them could be highly leveraged, under-water or completely paid off. Not to mention they could have a wide range of retail values. So if you say you own 1 property or 100...what does that really mean to the person asking? To me, it tells them how experienced you are at what you do and how well you do it or maybe even how long you've been doing it.
Investor · Westminster, CO · Member since 2009 · 1k+ posts · 1k+ votes
13y
That is weird, I have been investing for over 30 years and I don't think I have ever been asked that question, except from my wife and kids. Personally, I think that is a rather "intrusive" question and none of anyone's business. While it is not a "state secret," it is a personal item which no one needs to know except those you are personal with.
Real Estate Investor · Audubon, PA · Member since 2009 · 13k+ posts · 8k+ votes
13y
Originally posted by Michael Siekerka:
I get this question from friends, family and prospective tenants. ...
From a prospective tenants perspective, this becomes a little less about showing off what I've amassed and more-so about letting them know that I'm an experienced landlord, not just some schmuck who will be in over his head when it comes time to make repairs or fix a leak.
At the end of the day, this information is public knowledge (at least in KY) - and sharing the number of properties you "own" doesn't really divulge all that much information about you or your financial situation seeing as any number of them could be highly leveraged, under-water or completely paid off. Not to mention they could have a wide range of retail values. So if you say you own 1 property or 100...what does that really mean to the person asking? To me, it tells them how experienced you are at what you do and how well you do it or maybe even how long you've been doing it.
My answer is a few, since I will have multiple "for rent" signs out in the neighborhood, and if they drive the neighborhood they will see them and see the same phone number. But Michael Siekerka has the reasoning down from my prospective tenant's perspective - "are you an amateur / hobbyist or are you experienced?" is the question they're looking to answer. That's because they have had bad experiences with both the hobbyist who owns one rental as well as the PM who manages too many to count. Now that there is at least one website out there where tenants can review their landlords, the landlord's capabilities will start to become searchable on the internet to ease the tenant's concerns.
The ones looking to hit the jackpot via lawsuit - with enough dealings with tenant prospects, you can start to identify the characteristics you're seeing to the degree where you don't even bother with those types of suspects prospects.
Real Estate Investor · Saint Petersburg, FL · Member since 2013 · 1k+ posts · 951 votes
13y
When tenants ask I tell them approximately how many I have. A lot of them deal with amateur landlords that don't have the means to fix things when they break, are in foreclosure, take forever to fix things on a service call, etc. Number of rentals doesn't necessary mean you're telling them what you make....you could have big loans on them or own them all free and clear. I want my tenants to know that I know what I'm doing. I tell them if they pay their rent on time we will always take care of any issues with the property in a timely manner, and if they don't pay their rent they will be removed from the property in a timely manner as well.
Investor · Bay Area, CA · Member since 2011 · 92 posts · 69 votes
13y
My answer will depend on the audience. If I get asked by someone that is not in the business and not interested in it, I will probably give vague answer. However, in real estate settings, such as seminars, meetings or anywhere that I can network I will try to let them know that I'm serious RE investor that is always looking for new opportunities and learn.
It's frustrating not to be taken seriously at these places, I have had people asking my age in one of those RE meetings.
Investor · Southeast, MI · Member since 2012 · 2k+ posts · 1k+ votes
13y
I never tell tenants how many I have. I do let them know that I've been renting out houses since 1995 and have not had any problems. If their current landlord is getting foreclosed, I let them know that I've never had a foreclosure.
Also, if there's a prospect that I really like but they want to look at other houses before filling out an application, I let them know that there's a lot of scammers out there. I tell them the story about a guy in my area that was breaking into bank owned homes and then renting them out using a throw away phone he got from Walmart. I let the people know that I have nothing to hide and they're welcome to call the city's building department or court and ask about me.
Several of my relatives ask me every year at Christmas how many I have. I don't mind. They're always impressed and happy for me.
Rental Property Investor · Tulsa, OK · Member since 2012 · 291 posts · 102 votes
13y
I invest in higher value homes so my quantity is always significantly less than others, but its likely the income is greater than those with many more units than myself. I am routinely questioned about my age more so than the number of properties, but my competition is mostly people who have tried to convert their primary residence into a rental and struggle to fund repairs and/or are way too particular in what renters can and can't do.
Overall, I don't mind telling people how many homes I have because most of them don't realize my rentals are the same size as the homes of the people who ask.
Real Estate Investor · chicago, IL · Member since 2012 · 1k+ posts · 231 votes
13y
I like to keep a low profile. I drive a cheap, run down car & wear sweats, & cheap college t-shirts.
A lot of the renters, I find, are scared. They think I will run off with their deposit (CL postings). I like to build credibility.
I started listing one of my current tenants as a reference for prospects. They never call but know that I won't run out with their deposit & take care of (reasonalbe) repair requests quickly.
I know this can be a double edged sword, if things go bad with a tenant, but it's worked well so far in attracting great tenants, since they know I screen pretty deep as well.
West, MI · Member since 2012 · 674 posts · 182 votes
13y
Any savy tenant that knows how to use a computer can figure out how many properties you have by records and likely find your home address on a parcel. Privacy these days is not as much as you think.
Rental Property Investor · Oklahoma City, OK · Member since 2013 · 1k+ posts · 412 votes
13y
I used to flinch at this as a myob question, now I just answer it and find it tends to trigger really interesting conversations. Plus ditto to Patrick L., it does help tenants when they know you are an experienced professional.
Rental Property Investor · Cleveland, OH · Member since 2012 · 110 posts · 13 votes
13y
I am in the process of purchasing my first rental property right now so I have obviously not had this questions yet with regards to rentals--however I own an insurance agency and sometimes get asked "how many clients do you have" and my typical response is "More than one and less than a million". With close family I may tell them roughly, but anyone else I like to keep private.
Specialist · Portland, OR · Member since 2010 · 3k+ posts · 1k+ votes
13y
I usually get that question after having had a long-term tenancy with them and they are good tenants so a friendly type business relationship. The next question is, are they paid off?
I hate the questions. The bad thing is when I google my name my properties show up with the values. Even the LLC shows up AND the details about the property in it. So much for privacy from the LLC.
Investor · San Jose, CA · Member since 2012 · 2k+ posts · 3k+ votes
13y
My response used to be a couple. Now my response is "I'm the property manager." It makes things a lot easier because you have to go to the "homeowner" to get permission for.......... If there's a rent increase, it's the "owner" that wants to raise the rent. :)
Investor · Central Valley, CA · Member since 2012 · 6k+ posts · 3k+ votes
13y
Originally posted by J Scott:
If it's a tenant, the best answer is, "I don't have any...I'm just the property manager. The owner only owns this one though."
I have several friends who use a variation of the "I'm just the property manager" spiel. I hate it. If a tenant (or seller or potential buyer or contractor) manipulates the truth in this way about their identity or their references or their income, it's considered lying. Treating others how I would like to be treated still works for me.
Real Estate Investor · Audubon, PA · Member since 2009 · 13k+ posts · 8k+ votes
13y
Originally posted by K. Marie Poe:
Originally posted by J Scott:
If it's a tenant, the best answer is, "I don't have any...I'm just the property manager. The owner only owns this one though."
I have several friends who use a variation of the "I'm just the property manager" spiel. I hate it. If a tenant (or seller or potential buyer or contractor) manipulates the truth in this way about their identity or their references or their income, it's considered lying. Treating others how I would like to be treated still works for me.
K. Marie Poe - I agree with your "honesty is the best policy" approach. However, in the case of LLC or other entity ownership, a person truly does NOT own, they are simply managing on behalf of the company / entity; hence it would not be a lie to make a statement such as what J Scott has made.