The Intermediate 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 30 questions in the 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 When rehabbing, at what point do you establish what you’ll earn? A. When your REALTOR sets the listing price. B. When you buy the property. C. After closing when you calculate income and expenses. D. After paying back your money lender(s). E. At the end of the year after calculating taxes. None How often should you use a Rehab Repair Estimate Worksheet? A. If repairs seem like they are within budget after a walk-through. B. When you need to create a list for your contractor. C. Every time you look at a property. D. When time allows, so you can visit more properties. E. If your private lender requires it. None How much money do you need to have on-hand for a project? A. Nothing, but you need access to private lenders. B. Just the down-payment. C. 6 months of mortgage plus repairs. D. 70% of the projected selling price. E. None of the above. None What are the best ways to finance a rehab project? A. Project-based private lenders. B. Commercial bank loans. C. Hard-money lenders. D. Retirement account of friends or family. E. A and D. None What time of the year is best for starting a rehab project in the Midwest? A. In January to be ready for the spring sales blitz. B. In March to take advantage of good weather. C. Any month of the year. D. In August to get it done before Christmas. E. A and B. None What’s the best way to acquire a property? A. Write the offer on your state’s Offer To Purchase document. B. Have the closing at a Title Company. C. Write the offer on a simple conveyance contract. D. A and B. E. C and B. None How many contingencies should you have in your Offer To Purchase? A. The three main ones: financing, appraisal, and inspection. B. None so that your offer is as strong as possible. C. One – partner approval. D. Only those that make sense for the deal. E. It depends on the scope of the acquisition and current market. None What is it called when you purchase with the intent of immediately flipping to another investor? A. Brokering a distressed property. B. Wholetailing. C. Subject-To acquisition. D. 24-hour tethering. E. Wholesaling. None What is it called when you purchase to fix a few things and sell to an industrious homebuyer? A. Brokering a distressed property. B. Wholetailing. C. Subject-To acquisition. D. 24-hour tethering. E. After partner approval. None At what point should you involve a title company during the acquisition process? A. 6 weeks before closing. B. The week of closing. C. After you have secured financing. D. Immediately on acceptance of your offer. E. After partner approval. None Which of the following repair items would be mandatory in a rehab: A. Replacing a hot-water boiler older than 20 years. B. Replacing a Federal Pacific Electric breaker panel. C. Replacing water-guzzling toilets over 15 years old. D. Replacing a Caloric stove with gas-fired pilot lights. E. None of the above. None What can you do to fix severely bowed-in concrete foundations in a house? A. Nothing, move on to another property and avoid the hassle. B. Repair the exterior grading around the house for drainage. C. Build a secondary internal foundation wall to support the original. D. Install I-beam posts anchored through the footing and to the rim joist. E. B and D. None What are the main two areas of a residential property that should be rehabbed? A. Kitchen and main bathroom. B. Master bedroom and bath. C. Basement build-out and bathroom. D. Garage and basement workshop. E. Living room and main bathroom. None What is the average lifespan of a residential forced-air furnace? A. 10 years. B. 15 years. C. 20 years. D. 25 years. None What is the average lifespan of a hot-water-heat boiler system? A. 10 years. B. 15 years. C. 30 years. D. It doesn’t matter because it should be replaced with a forced-air system. E. It depends on the water in the system and how well it was maintained. None What is the average lifespan of a water heater? A. 6 years. B. 10 years. C. 12 years. D. 20 years. E. It depends on the manufacturer. None What is the one major exterior system that should be replaced if it looks bad? A. Siding. B. Concrete. C. Windows. D. Roof. E. All the above. None You notice that the detached garage seems to be in bad repair and unsafe. You should: A. Tear it down and replace it with a new garage. B. Tear it down and just leave the slab. C. Attempt to repair it if possible. D. Just leave it as-is and negotiate with buyer. E. It depends on different factors with the rehab. None Your rehab property needs all new windows. Estimate the cost to buy and install. A. Measure each window, 5SF = $200, 8SF = $300, 12SF = $500. B. Count the number of windows and multiply by $300. C. Get a window company to come out and quote the job. D. Have your General Contractor quote the job. E. Add up the square footage of all the windows and multiply by $100. None The wood siding on your property is in bad condition. What do you do for that? A. Sand and scrape it all down, repair as necessary, and re-paint. B. Just go over it with new vinyl siding. C. Make major repairs and re-paint. D. Do nothing and be prepared to negotiate with the buyer. E. It depends on many factors. None There are old non-ceramic tiles on the basement floor. What do you do? A. Just cover over with carpeting or vinyl plank flooring. B. Scrape them up, seal the concrete, then put on new flooring. C. If they are 9” square, they could be asbestos, so just seal them and cover. D. Clean with ammonia and then polish them for a good look. E. C first, then A, then B, then D. None After you buy the property, you find water in the basement. What do you do? A. Check and fix the grading and the gutters/downspouts. B. Add internal perimeter drains and a sump. C. Nothing, and be sure you sell in the dry season. D. Call a basement remediation company. E. A and B. None You are removing a wall to attain an open look. What considerations are necessary? A. Check that the new sight-lines work with the windows. B. Check to see if it’s a load-bearing wall and install a beam in its place. C. Make sure you have the materials to repair the floor to replace the sill plate. D. Look for mechanicals, electrical, and plumbing then have a plan to re-route. E. B and D. None There is water damage from a failed roof now replaced. What is the most important consideration? A. That ceiling stains need to be covered-up with Kilz or Zinsser. B. Inspect for and remediate any mold caused from wetness. C. Weakening of ceiling joists or other structures from the water. D. Ruined batt or cellulose insulation that needs to be replaced. E. A and C. None Your rehab property has a mish-mash of copper, galvanized, and maybe lead pipes. Now what? A. Replace all areas (only) that are lead. B. Tear out all the plumbing and replace with new PEX. C. Install dielectric unions where dissimilar metals connect. D. Do nothing and negotiate with the buyer. E. It depends on your budget, the neighborhood, and other factors. None Floor drains in the basement seem clogged and are running slow. How do you fix that? A. Pour contractor-grade drain opener in all the drains. B. Have all the floor drains and cleanouts rodded when done. C. Flush with extremely hot water to dissolve the problems. D. Save money and don't - it probably won’t be noticed in the inspection. None You plan on doing a lot of your rehab to save money. What are some considerations? A. Be sure the term of your private money loan will cover worst case or has a renewal clause. B. Seriously consider your skill levels and have other trades you can call on if necessary. C. Plan for how to keep your business marketing going while you are rehabbing. D. All the above. E. A and B only. None You have a property under contract. How do you find trades to do the work for you? A. Put ads on Craigslist and other social media. B. Check local listings and contractor websites. C. Get a bunch of friends together and figure it out as you go. D. Network with an organization that has access to trades. E. All the above. None During the rehab, you discover some unexpected issues with the property. What do you do? A. Don’t worry about it; unexpected issues rarely come up. B. Ask your lender for more money to cover the problem. C. Try to talk your contractor into doing the work for less. D. Forge ahead because you’ve allowed for contingencies in your repair estimate. None When you are rehabbing, in what order should things be done, and how is this managed? A. You’re really at the mercy of contractors and subs as to when they can get in there. B. Hire a General Contractor (CG) to manage logistics and scheduling. C. Be your own GC and do the scheduling yourself. D. Find online construction management software to do the work for you. E. B or C. None Thank you for taking the Investor IQ Test. Now click SUBMIT to score your answers. Time's up
