9 Life-Changing Questions For Every Investor

1. What is your goal?

Targets are important. Sometimes we have resources/money and the burning desire to do something with it! But how and to what end? Some folks invest to earn a passive income as extra immediate income today, some will want to build a portfolio of holdings to build long term wealth, some need to manage and protect their resources, some will want to develop assets (property) to fulfill their charitable endeavors, some will want to buy run-down properties;-fix them up/renovate and resell them for a profit, and some will want to buy lots of developable land and build new. The key is to know who you are and what you would like to achieve. Your target goal will guide every decision.

2. Do you have a team?

The team should include an expert that you are comfortable from each of the areas of real estate needed for your vision. For example, a Realtor® with a hustle mentality and knowledge, a land use attorney, a tenant/eviction attorney, accountant, transactional attorney, structural engineer, and contractors (plumber, electrician, painter, handyman, roofer, carpenter, basement specialist). The team will provide accountability and an important logistics focus. A skilled and committed team is worth every minute and every penny to "get it done" profitably.

3. How are your ventures organized?

Many investors create business entities to protect and manage their personal privacy, liability and resources as well as the well being of their investments. Talk to your accountant/financial advisor about the best path for your situation. The choices are different for every investor. Talk to your accountant/financial advisor about the specific path for you based on your specific circumstance, location, and goal. Research these concepts: LLC (Limited Liability Corporation), Holding Company, Revocable Trust, and Partnership types.

4. How are you going to acquire your properties/land?

Some new investors will start by using the retail online "For Sale" platforms like Zillow, Realtor, Facebook Market Place, Movoto to name a few of the many. Others may want to find "a deal" through foreclosure - sheriff sales, tax lien certificates, other auctions like PropOffers and HUD. Some Realtors specialize in prospecting properties that are not on the MLS's or marketing platforms yet. Many times the personal touch can lead to a great deal and opportunity for everyone involved, whether that is an heir not wanting to hold a home, a senior selling to move to a nursing home, a divorcing couple that wants to keep things quiet, the list goes on with the types of circumstances that make a personal connection a valuable one. Prospecting takes patience and a desire to research, it is an art which employs authentic empathy to build connections. A Realtor partner with these qualities can make a world of difference in all areas of acquisition.

5. How are you going to buy and finance your investment.

Cash? Mortgage? Hard Money? Private loan? Builders Loan? Home renovation mortgage? There are ramifications and conditions (costs) with each of these potential funding resources - so be sure to consult the appropriate professionals when making financial decisions.

6. Do you have everything together to win that purchase?

In a competitive seller's market you will need to move quickly and with the strongest offer in order to win a property. Before you go see a property have everything ready. If buying with cash, a Proof-Of-Funds (bank statement or note from a bank or title company holding your liquid cash), stating the amount and that it is immediately accessible to use for the purchase. If a mortgage - a pre approval from a reputable lender is essential. POF and Pre-Approval will be required when submitting your offer. Other documents that may be necessary include LLC formation documents, State required documents, partner documents, estate documents, anything related to your purchase, financing, offer, and closing.

7. Did you do your "Due Diligence" - did you thoroughly research your property choices?

Look online first, then with a short list of properties that make sense on paper (do the calculations!), make appointments with your Realtor™ to go see the properties. You may want to take a trusted contractor along who will help you assess future spending. Be pro-active in this regard - you will win with more technical knowledge about the property. This involves researching its history, assessing its condition, analyzing financials (such as income and expenses), and reviewing any legal or zoning issues. Ensure that your investment aligns with your risk tolerance and financial capabilities.

8. Are you networking? Everyday? With Everyone?

Develop connections with professionals who can assist you in your real estate endeavors. This may include real estate agents, property managers, contractors, lenders, and fellow investors. A strong network can provide valuable insights, opportunities, and support throughout your investment journey.

9. Have you planned for contingencies? 

Surprises happen! Real estate investments come with risks,  so it's important to have contingency plans in place. Account  for potential vacancy periods, unexpected repairs, and  fluctuations in the market. Maintaining a reserve fund can provide a financial cushion during challenging times. Real estate markets are dynamic, and trends can change rapidly. Stay informed and adapt.

These nine life-changing questions should help you get started on your investor adventure.

Stay informed - Adapt your strategies - Pay attention!

Pursue goals relentlessly.

Plan - Persevere - Profit!