Kim Lisa TaylorSecurities Attorney, Founder, Syndication Attorneys, PLLC · Corporate Securities Attorney, 2x Best-Selling Author, Nationwide Speaker | Private Placement

Real Estate Investing: Why Full Disclosure Matters

21 Feb 2025 · 1 min

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In a brief dialogue, an experienced real‑estate investor (45 years in the field) challenges the claim that some investors never lose money on any deal, emphasizing that risk is inherent and losses do occur. The co‑speaker stresses the importance of full disclosure to investors, citing a specific failure rate of 6.7% for their deals. They argue that being transparent about the odds, highlighting that most deals are wins, and explaining risk‑mitigation tactics—particularly maintaining low loan‑to‑value (LTV) ratios—builds trust and protects investors.

Chapters

I've been investing in real estate for 45 years, and I consistently see these people or hear of these people who claim they've never, they've never lost any money in any particular deal. I just don't see how that's even close to possible. You know, taking any risk at all, sometimes that risk isn't going to work out.
And you know what, from a full disclosure standpoint, it's important that you are open and honest with your investors that, hey, You know, we've got statistics, 6.7% of the time our deals might not work out. And if you explain to people upfront that, you know, most of them are wins and we've got the experience and, you know, here's how we mitigate the risk. We keep our loan-to-value ratios low.