Before you take the investing plunge, take this Real Estate Investing Quiz to get a glimpse of the incredibly exciting, fast-paced and thrilling industry.
You’ve decided you want to be involved, which is fantastic for you and your bank account, but there are several roads you can go down. Perhaps you are interested in flipping houses to sell for a profit or maybe you’re more interested in being a hard money lender. But it turns out what you might be most interested in might not be the best fit for you. Take the quiz below to find out what might be the investment strategy for you.
Please note that this quiz is all in good fun. While it may reveal certain aspects of your personality, be sure to take a deeper look into all the options in case one other might be a better fit.
1. First, let’s start with the basics. How involved do you want to be in the process?
A. A whole lot. I want this to be a full-time gig.
B. Part-time is fine with me. I’m trying to make a good chunk of change on the side.
C. Not much, please.
D. I’m okay with doing work upfront so long as I don’t have to do too much work later.
2. Who is your investing hero and who do you most identify with ?
A. Chip & Joanna Gaines
B. Mr. Wonderful from Shark Tank
C. Warren Buffet
D. Fred & Ethel Mertz from I Love Lucy
3. As of today, how much money do you have to spend on your first investment?
A. A decent amount, but I’m fine with turning to other investors and work as a team for my first real estate investing.
B. I don’t have much at all – I’m really just trying to get my feet wet.
C. I have quite a bit in savings that I’d like to invest.
D. I have a lot of money and I want to make sure I have complete control of where I’m putting it.
4. How do you like to work?
A. I prefer teamwork over working in solitude.
B. I can go either way, but I always make sure to attend networking events and get my name out there. I’m a big fan of partnerships.
C. I prefer to work alone, thanks.
D. I’d be happy being the boss and having a few assistants. I don’t want to share leadership.
5. You just found out that a water pipe broke in one of your properties. How are you feeling right now?
A. I’m good under pressure, so I’m doing fine.
B. Kind of freaking out – I’ve never dealt with this situation before.
C. I’m frustrated. I don’t want to be in charge of fixing things like this.
D. I feel fine, and I’ll make sure my tenants feel fine, too.
6. How handy are you?
A. Very! I’ve always been interested in how things work and building things myself.
B. I may or may not be handy, but there are many things I’m better at.
C. I am not at all handy and have no interest in being handy. I’d rather pay someone to fix something for me.
D. Handy enough, I can unclog a toilet and fix a leaky sink.
7. How do you feel about being on call 24/7?
A. I don’t mind being available 24/7 when I know it’s important.
B. I don’t mind being available 24/7 when I’m trying to get a deal made.
C. I do not want to be available 24/7.
D. I don’t mind being available 24/7, but I’d rather solve problems 9-5.
8. Let’s talk about negotiating. Would you say it’s your forte?
A. I don’t mind negotiating, but I wouldn’t say it’s my bread and butter.
B. Negotiating is one of my favorite things to do. I love getting the best deal possible.
C. I’m decent at negotiating, but I’m not interested in constantly making deals.
D. Negotiating isn’t something I’m interested in. I’d rather get a steady stream of income versus relying on deal after deal.
If you answered mostly A’s you’re a: FLIPPER
You love to get down and dirty with your investment. In fact, this is less about investing in real estate and more about taking on a passion project that will give you a pretty big monetary reward. You’re hands-on and ready to fully commit to real estate. Congratulations! Read more tips to get started flipping here.
If you answered mostly B’s you’re a: WHOLESALER
Wholesalers tend to be two types of people. Either those who are looking for the thrill of the deal or those who don’t have a ton of money to invest and just want to get started. Wholesaling real estate is a great primer to the industry. Wholesalers love making deals – in fact, that’s almost all they do. If you consider yourself a “hunter,” wholesaling may just be for you. Check out more about wholesaling here.
If you answered mostly C’s you’re a: “JUST THE MONEY” INVESTOR
You know that real estate investment is a sound investment strategy. I mean, there’s a reason why banks loan for real estate investments and not stock market investments, right? However, you’re not interested in the nitty gritty. You want to provide the money and watch it multiply over time. May it be as a hard money lender or by investing with REITs, there’s nothing wrong with wanting to not deal with the headaches that come along with the other forms of investing. Why not consider investing with us? Learn more here.
If you answered mostly D’s you’re a: LANDLORD
The single family homes owner is one of the more popular real estate investment routes. You’ll buy single family homes and then rent out to tenants. You like to have control over where you money goes and are money-minded, but you aren’t interested in rehabbing a property. That being said, you like to be plenty hands on. It’s a good go between simply money investor and flipper. Learn how to be the best landlord you can be in articles like this one and this one.
Got a mix of A’s, B’s, C’s and D’s? No problem! Head to your local real estate investment networking event or simply peruse my site. The best way to go into any situation is to be over-prepared. Learn as much as you can about whatever discipline and then get started! You don’t need to have money to get started, either. Learn about your options if that’s the case here. Were you leaning towards a certain avenue and then after taking this quiz, considering others? Share in the comments!