SOTE Real Estate Investment Self-Assessment

This assessment is designed to evaluate which type(s) of real estate investing might be a good fit for you. It’s based upon your strengths, weaknesses, preferences, skills, goals, and personal characteristics. Make your choices based upon where you are in your life right now, and be honest! Our hope is that you will be self-reflective and use this tool to consider where to start in your real estate investing (REI) journey. As you begin learning, we recommend that you choose one strategy to start with. As you become more experienced as an investor, you can always explore multiple strategies.

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1/17 - Money Risk Taking / Money Risk Aversion

Imagine that you have $100,000 that you’ve saved up over time. How would you choose to invest it, and how much risk would you be willing to take on for the chance to make a high reward?

• A score of 1 means that you’d leave it in a savings account, not wanting to risk loss.
• A score of 2 means that you’d consider investing a portion of your money in a relatively safe investment project with a modest return, leaving the rest of the money in a no-risk account.
• A score of 3 means that you’d be willing to invest about half of the money in a high-yield project, but you’d hold the other half of the money back.
• A score of 4 means that you’d invest all of the $100,000, diversifying your investments across many projects with various levels of risk.
• A score of 5 means that you would invest it all in one single, complex, high-risk real estate investment project with the possibility of potentially doubling your money.

Answer Guide

2/17 - Access to Liquid Cash

Use the guiding questions below to help you rate your access to cash. When you have decided, indicate your answer below.

• How much do you have in savings, money market accounts, CDs, retirement accounts?
• What assets do you have that you could easily and quickly liquidate?
• Do you have access to credit cards or lines of credit with funds available?
• Can you get cash from friends or family?

Answer Guide

3/17 - Time

How much time would you be able and willing to set aside for real estate investing?

Answer Guide

4/17 - Your Need for Cash vs. Passive Income

Based on your current life situation, is it more important for you to be generating a lump sum of cash now, or would you be more comfortable creating a cash flow over time? Use the examples below to help you decide.

• A score of 1 means that you have a very high need for cash—immediately!
• A score of 2 means that you need some cash now, but that you’d also like to work toward planning cash flow for the future.
• A score of 3 means that you’re right in the middle – you are pursuing both short-term and long-term strategies, and have a need for immediate cash AND cash flow over time.
• A score of 4 means that you’re mostly pursuing residual income, but also have a little cash coming in.
• A score of 5 means that you have no need for a lump sum of cash right now, but what you really need or want is some additional cash flow coming in on a regular basis over time, so that you can plan for the future.

Answer Guide

5/17 - Commitment

How strongly are you willing to commit to your venture in real estate investing? In other words, how steadfastly will you put in those hours every week, even when things get tough?

Answer Guide

6/17 - Knowledge

What kind of knowledge do you have about real estate investing? Decide how much you know about each category and rate your knowledge from 1 to 5. The guide below will help you decide how to answer.
1. I don’t know the first thing about this!
2. I could define this in general terms, but I’m not clear on the finer details.
3. I have a reasonable knowledge of this strategy or process.
4. I could teach a class on this!
5. I have expert knowledge of this strategy or process.

Answer Guide

Rehabbing
Wholesaling
Landlording
Buying tax certs
Private lending
Joint ventures

7/17 - Knowledge

What kind of knowledge do you have about real estate investing? Decide how much you know about each category and rate your knowledge from 1 to 5. The guide below will help you decide how to answer.
1. I don’t know the first thing about this!
2. I could define this in general terms, but I’m not clear on the finer details.
3. I have a reasonable knowledge of this strategy or process.
4. I could teach a class on this!
5. I have expert knowledge of this strategy or process.

Answer Guide

Buying and selling notes
Commercial investing
Mobile home parks
Real estate sales
Buying tax deed properties
Buying foreclosure properties

8/17 - Knowledge

What kind of knowledge do you have about real estate investing? Decide how much you know about each category and rate your knowledge from 1 to 5. The guide below will help you decide how to answer.
1. I don’t know the first thing about this!
2. I could define this in general terms, but I’m not clear on the finer details.
3. I have a reasonable knowledge of this strategy or process.
4. I could teach a class on this!
5. I have expert knowledge of this strategy or process.

Answer Guide

Writing contracts
Finding cash buyers
Direct mail marketing
How to market your properties
How to do title / legal research

9/17 - Business Skills

In this question, you’re going to consider some of your skills (both business and personal) and how they can aid you in your real estate journey. As with the last question, you’ll need to give yourself a rating in each category, from one to five, and then your average will become your score for the skills section.

Answer Guide

Construction
Negotiations
Accounting
Project Management
Contract Management
Transaction Management
Marketing

10/17 - Business Skills

In this question, you’re going to consider some of your skills (both business and personal) and how they can aid you in your real estate journey. As with the last question, you’ll need to give yourself a rating in each category, from one to five, and then your average will become your score for the skills section.

Answer Guide

Sales
Customer Service
Communication
Networking
Organization
Administration
Conflict Resolution

11/17 - Personal Skills

Again in this question, you’re going to consider some of your skills (both business and personal) and how they can aid you in your real estate journey. As with the last question, you’ll need to give yourself a rating in each category, from one to five, and then your average will become your score for the skills section.
1. I have absolutely NO skill in this area!
2. I have beginner-level skills in this area.
3. I have an intermediate skill level in this area.
4. I am very skilled in this area.
5. I excel at this!

Answer Guide

Discipline
People-person
Self-motivation
Action-taker
Tenacity
Engaged In Personal Growth

12/17 - Personal Skills

Again in this question, you’re going to consider some of your skills (both business and personal) and how they can aid you in your real estate journey. As with the last question, you’ll need to give yourself a rating in each category, from one to five, and then your average will become your score for the skills section.
1. I have absolutely NO skill in this area!
2. I have beginner-level skills in this area.
3. I have an intermediate skill level in this area.
4. I am very skilled in this area.
5. I excel at this!

Answer Guide

Doesn't Avoind Conflict
Time Management
Leadership
Responsibility
Multitasking

13/17 - Experience

Now you’re going to assess your level of experience in each of the areas listed below. Remember, experience means that you have “been there, done that”—not just book knowledge!
1. I have no experience with this kind of transaction.
2. I’ve been involved with a deal or two, but I had help from a more experienced colleague.
3. I’ve done several deals of this kind, and feel confident in my ability to execute them.
4. I have done lots of deals and would feel comfortable walking a new investor through the process.
5. I’ve done so many deals of this kind, I could do this in my sleep, and I’m ready to learn a new strategy!

Answer Guide

Rehabbing
Wholesaling
Landlording
Buying Tax Certs
Private Lending

14/17 - Experience

Now you’re going to assess your level of experience in each of the areas listed below. Remember, experience means that you have “been there, done that”—not just book knowledge!
1. I have no experience with this kind of transaction.
2. I’ve been involved with a deal or two, but I had help from a more experienced colleague.
3. I’ve done several deals of this kind, and feel confident in my ability to execute them.
4. I have done lots of deals and would feel comfortable walking a new investor through the process.
5. I’ve done so many deals of this kind, I could do this in my sleep, and I’m ready to learn a new strategy!

Answer Guide

Joint Ventures
Buying and Selling Notes
Commercial Investing
Mobile Home Parks
Real Estate Sales

15/17 - Team

As a real estate investor, you’ll need a team surrounding you to provide certain skills or services. Here are some examples of team members you might need:
Contractors, Web development, Real estate attorney, Marketing professional, Hard money lenders, Property manager, Private lenders, Property insurance company, Title company, Mortgage broker, Realtors, Virtual Assistant, and Accountants.
• A score of 1 means you were completely lost as you read through the list in the box.
• A score of 2 means that you understand what some of these services are for, but you need some guidance in order build the right professional relationships.
• A score of 3 means that you have contacts in some of these categories, but you feel that there are some missing links in your team.
• A score of 4 means that you are missing a couple of team members that you’ll need, but you know how to find the partners and services you’re missing.
• A score of 5 means that you have a relationship with someone in almost every one of these categories. You already have your team assembled and ready to go.

Answer Guide

16/17 - Age

Your age absolutely does not limit what you can do in real estate investing! It can influence your perspectives and goals, though. Please find your age group on the scale below, and indicate the corresponding letter on your scoring matrix.

Answer Guide

17/17 - Preference

We at SOTEREI believe in creating a life that you love and enjoy, so we want to know – what strategy are you interested in or passionate about? Choose the one that you’d most like to pursue. Write the letter that corresponds with your preferred strategy on your scoring matrix.
1: Tax Certificate Purchasing
2: Wholesaling
3: Landlording
4: Rehabbing
5: Private Lending

Answer Guide

All Finished!

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