| Before you jump into a so-called good deal, | | | | calculations, cost estimates, budgets, and tight |
| review how well your investing will align with your | | | | rehab and renovation schedules? |
| personal abilities, resources, likes, and dislikes. | | | | Personal achievement. What types of real estate |
| Answer these questions: | | | | would give you the greatest sense of personal |
| Time and money. How many hours per week or | | | | achievement and pride of accomplishment and |
| per month are you willing to invest? Realistically, | | | | ownership? |
| what does your financial profile look like (credit, | | | | No matter how you answer each of the above |
| cash, earnings, borrowing power)? | | | | questions, you can develop a strategy that more |
| Trade skills. What types of handyman talents do | | | | or less fits your desired profile. The key is to |
| you possess? Do you enjoy this type of work? | | | | anticipate and prepare, to harbor and hold |
| Are you willing to learn how to work with | | | | expectations that match reality. Many investors |
| contractors and manage construction rehab and | | | | try to do it all. They burn out long before they |
| renovation projects? | | | | realize their potential. Others buy with little or |
| Creativity and design. Do you enjoy searching out | | | | nothing down and then find they lack cash or |
| new ideas? Are you willing to learn and adapt the | | | | credit to navigate through stormy weather. |
| ideas of others? Would you like looking at | | | | Fortunately, such mismatches of time, talent, and |
| properties, attending trade shows, and browsing | | | | money often produce distressed owners who sell |
| through magazines and journals to learn more | | | | at bargain prices-just to get rid of their difficulties. |
| about property management, creative | | | | The nothing-down real estate promoters have |
| improvements, and related topics? | | | | pulled too many starry-eyed investor wannabes |
| Partners. Do you prefer to play as a one-man | | | | farther down the path to financial ruin with their |
| band, or would you like to join with others to | | | | mantra of "no cash, no credit, no problem." |
| share financing, work, responsibilities, and decision | | | | Although you can buy real estate without cash or |
| making? | | | | credit, that fact begs the question, "If that is your |
| Tenants. What types of tenants would you like to | | | | situation, why do you lack cash or credit?" To |
| work with? | | | | succeed in real estate (as with all other types of |
| Real estate agents. Do you want to search and | | | | investing), exercise financial discipline and |
| sell on your own, or will you employ real estate | | | | responsibility. "No cash, no credit" certainly poses a |
| agents? | | | | problem when an impecunious position results |
| Numbers. Can you learn to work with income | | | | from excessive spending and borrowing. |
| statements, cash flows, rate of return | | | | |