The Advanced Investor IQ Test Welcome to the Investor IQ Test for real estate investors. In the following test, choose the answer that best answers each question. Not all the other answers are "wrong", they just may not be the best answer. There are 15 questions in the advanced test, and 3 questions per page. You'll get a results page emailed to you on completion. To get started, please tell us your name and give us an email where we can send you the results of the test. When you are ready to begin, click on the Next button below. Your Name Email Address What is the most common (and successful) acquisition model for fix-and-flip investors? A. Market, inspection, due diligence, offer, negotiations, funding, acquisition, repair, sale. B. Lead gen, contact, negotiations, accepted offer, funding, closing. C. Private investor partnering, direct mail, unbuffered offers, closing. D. Formation of a JV entity, MLS offers below market, A/O, closing. E. Warm-market fishing, inspection, negotiations, A/O, closing. None What factor(s) tend to create consistent, successful results when acquiring properties? A. Creating a relationship with the seller, solid due-diligence, and a fair offer. B. Massive lead generation, handwritten direct-mail letters, and rapid response. C. Working with REALTORS for leads and making reasonable offers. D. An impressive web site and exceptionally fast response to a CTA lead. E. Asking everyone in your circles “who do you know that needs help?” and responding. None How much formal education is enough? A. One to two years in an accredited program for real estate investing. B. There is never enough, you should be a life-long learner and stay on top of your game. C. Registering for a pro account on sites like BiggerPockets gets you everything you need. D. Any of the fly-in “guru” programs from HGTV hosts will set you up for life. E. Self-paced learning of the essentials followed by mastery mentoring to enhance. None When negotiating with potential sellers, what is the best approach to use? A. Make offers contingent on inspection, then revise them downward, citing “problems”. B. Play hard ball with the seller and use pseudo-legal scare tactics about what could happen. C. Always incorporate “the take-away” approach to close the deal on your terms. D. Due diligence on the property and make a realistic offer explaining how you got there. E. Thorough inspection and a low-ball offer expecting to negotiate upwards from there. None A panicked seller makes a pre-emptive offer with a buy price under 55% ARV. What do you do? A. Try to negotiate down even more, then begrudgingly accept a low offer price. B. Counteroffer a higher price fair to the seller that nets you a reasonable return. C. Immediately write up the deal and get an accepted offer before anyone else steps in. D. Accept the offer and throw in another $5K as proof that you are a good person. E. Take the offer as-is because you don’t know what you’re going to run into on the rehab. None Due diligence suggests an ARV of 175K, repairs at $30K, and the seller wants $105K. You... A. Write up the deal and get the A/O on the spot. There’s plenty of headroom here. B. Negotiate a sell price under $92K with a promise to close on the spot. C. Threaten to walk away unless the seller is willing to take $83,750. D. Reconsider your repairs at $20K and close the deal on the spot. E. Leave a signed, firm offer of $90,750 and tell them it’s good until 8PM tonight. None You’re looking at a house with hot water heat that needs a new boiler. Now what? A. No one wants this old, archaic heating method, so you’ll replace with conventional HVAC. B. This will always be too expensive and undesirable, so move on to another property. C. Replace the boiler and add Spacepak cooling or a mini-split system. D. Replace the boiler and let the new buyers figure out how to deal with AC. E. Either C or D. None The kitchen, main bathroom, master bedroom and family room need updating. Where to focus? A. Master bedroom, then family room, then kitchen, then other areas, as budget permits. B. Family room, main bathroom, master bedroom, kitchen, then other areas. C. Kitchen, main bathroom, master bedroom, family room, then other areas. D. Start at the front door and work outwards, again as budget permits. E. Either C or D. None You stumble on an unimproved lot at a fire-sale price. What do you do with this? A. Snap it up and do a new build using the contractors you have relationships with. B. Move on to something else because you have no expertise with empty lots. C. After due diligence, you buy the lot, improve it, and re-sell for a handsome profit. D. You buy the lot with the understanding that there will be a deal somewhere. E. Either B or C. None What, exactly, is an “improved” lot for purposes of real estate investing? A. The grass is mowed, trees and bushes are trimmed, and there is no garbage present. B. Sewer lateral stub, water main stub, and electrical pedestal are available. C. A paved street with storm sewers and driveway curb-cut are present. D. All the above. E. B and C only. None You purchase a duplex townhome. What one legal action can potentially increase its value? A. Putting its title into a trust to expand what you can do for improvements. B. Petition to create zero lot-line properties and sell titles to two separate buyers. C. Create a condominium association to ensure that the property is maintained. D. B or C. E. A and C. None Creative acquisition strategies help investors buy properties using the following methods: A. Subject-to financing. B. Interest-only financing. C. Friends & Family financing. D. OWC financing. E. All the above. None What is a relatively new investment strategy arising from online services? A. Owning rental properties advertised on sites such as Craigslist, Facebook, and Zillow. B. Advertising rentals on AirBNB, VRBO, FlipKey, HomeAway, Homestay, or VillasDirect. C. Renting a property long term then subletting it short term on AirBNB. D. Creating listings for publication on your local MLS. E. All the above. None Your new question! None What is the fastest way to create significant equity in a buy-and-hold property? A. Always rent at the high end of the Rent-O-Meter published rates for your properties. B. Use velocity banking to convert mortgage payments into simple-interest payments. C. Use some of the maintenance account funds to pre-pay principal on the mortgage. D. Minimize turnover and tenant skipping with 3x security deposits. E. A and D. None What is the real interest rate on mortgages opened in the last 5 years? A. 78%. B. Federal Funds Rate + 10%. C. Bond market ARR + 10%. D. Higher of the FTSE (“footsie”) index and bond ARR rate. E. The bank-to-bank overnight rate in effect when the mortgage was initiated. None Thank you for taking the Investor IQ Test. Now click SUBMIT to score your answers. Time's up
