This assessment is designed to assist the investor in analyzing not only their current situation, but help in determining what path they can take towards moving yourself towards financial freedom. The questions, scoring, and analysis are subjective in nature.
Circle ONE number for each line. Rank yourself based on where you think you are today. Be frank with your answers. Everyone's credit, cash and experience level increases as they move forward. Nobody starts with a home run and $1 million in the bank. Your score will increase in the very near future.
Credit Score 599 or less 600-620 620-679 680-700 700+
Credit Score 1 2 3 4 5
Cash 1 2 3 4 5
Credit Lines 1 2 3 4 5
Confidence 1 2 3 4 5
Credibility 1 2 3 4 5
Belief in Yourself 1 2 3 4 5
Education 1 2 3 4 5
Experience 1 2 3 4 5
Creativity 1 2 3 4 5
Credibility w/others 1 2 3 4 5
5-30 You are a beginning investor...nearly everyone started here.
31-40 You have a great head start. Continue to build your network & knowledge
41-49 You have high confidence. Be careful of being too comfortable.
50 Your overconfidence is amazing. Why are you even here?
The world of real estate can be exciting, profitable, controllable, and yes, even a little frightening! What you are about to hear, see, and experience you might have heard before. Or perhaps one or two of the ideas, tricks, and strategies might be brand new to you. In either case, you will find that if your mind is open to learning, you will always learn something. If you are skeptical, that is fine. A healthy dose of skepticism is important! Without it, your loses could outpace your gains!
Our purpose with this worksheet is to give you some new insight, ideas, thoughts, or some inspiration to accomplish what YOU want. You are encouraged to keep your skeptical mind active and aware, but staying open-minded will allow you to learn something valuable.
For most of us, the idea of a better life is on our minds quite often. If you've ever thought about a nicer home, owning your car without a payment, or a vacation in the tropics without worrying about money, you are not alone.
If you are already at a point in your life where you are "comfortable" but simply want to lock in a solid retirement plan, or push the limits of your financial status, then welcome...real estate, as a vehicle, has accomplished this and more for many people.
In order to change ANYTHING in your life, including finances, you must not only make different decisions, but you must change the way you think. Your personal beliefs about money, real estate, the market, and your capabilities are based on your personal background, personality, life's experiences, and dozens of other major influencers in your past.
"A person who learns how to change can create their own destiny. All others are doomed to a life controlled by others."
Take CHARGE of those things which influence your thinking, behaviors and actions. Associate with like-minded, successful, and responsible people. They can make a significant difference in not only how you think about money, real estate and wealth, but the association you develop will bring to you more opportunities for finding deals, associates, and financing.
When you look for what could go wrong with a deal, you will always find something. When we say to ourselves, "I need more education before I make my first offer" we forget that TRUE education comes from applying what we learn, not the raw knowledge itself. Of course, it is important to know the basics. It would not be prudent to go out and expect to make money in real estate after simply reading one book in an afternoon. Expecting to become a millionaire in a weekend is ridiculous.
However, the bigger danger lies in substituting an excess amount technical knowledge for practical knowledge. Go to any real estate investment club and you will meet people who have attended 2 or more boot camps, have read a dozen or so books, and have been deluded themselves into thinking they are investors. They may have been "thinking" about investing for 2 or more years and have yet to get out and make an offer. If this is you, don't despair, however. ALL investors, no matter what their experience, had an "incubation" period where they absorbed knowledge before going out into the marketplace. This period can be anywhere from a month to a year or more. This does NOT mean that you are doomed to become a seminar junkie. But after a while, it becomes painfully clear that more technical knowledge is not the answer. The REAL problem is our fear.
Conquering your fear
If you think you are alone in this dilemma, think again. With over 1 million investors in the United States, there is not a single one who didn't show concern, worry, and doubt over his/her first deal. Everyone has doubts. Your mission is to conquer those doubts by reducing or eliminating as many risk factors as you can. This is easily accomplished with the following basics:
- Due your due diligence. Nothing compares to crunching your numbers 2 or 3 times, and then running them past a more experienced investor.
- Have a plan "B." When markets or financing changes, you need a back up plan. Without a backup plan, your are opening yourself up to risk. If you can't sell your rehab, you better be ready to rent it. If you don't have the financial cushion to be a landlord, you better get one BEFORE you start the rehab.
- Take action. The paralysis of analysis is the single biggest killer of wealth in this country. Due diligence is important, but without action, it is a wasted exercise.
- Be accountable. Even Michael Jordan had a coach. Putting your plan into action all by yourself is foolish. Plan your business thoughtfully. Think big. Take small steps and get moving! Counseling with successful people will save you millions.
Successful people got where they are because they think and act differently than unsuccessful people. Their attitudes, actions, beliefs, and even their friends are different. There are people (even relatives!) who always look at what could go wrong, instead of who look at what could go right. When you have a mentor who believes in you and encourages you to grow, change, get out of your "comfort zone" and go for it, you will definitely experience new opportunities. The risk will always be there. How we manage that risk is a critical component. It is important to perform due diligence and "crunch the numbers" on your opportunities. But all too often, we look back on all the opportunities we missed, instead of reaching out and working towards those that lie ahead.
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