40 Questions to Ask Yourself Before Investing in Real Estate.

Under the assumption that you are not living under rock...you probably know the real estate market is HOT.

Fueled by supply shortages, consumer optimism, inflation scares, access to cheap capital, and many other factors…simply put Americans are buying. 

With all the hype and headlines..... it is important you are discipline when it comes to real estate investing and not acting on hearsay. 

Here are a few questions to ask yourself before investing in real estate. This is not intended to convince you in either direction. This is not a comprehensive list, nor a recommendation. Please consult a professional with individual questions, this is purely educational. 

1. Why are you buying real estate?

2. Where does this fit into your overall financial plan?

3. Have you asked your Financial Planner for guidance? Why or why not?

4. Do you have experience? What brought you into this? Be honest. 

5. How long have you considered the property under review? 

6. Have you negotiated on the price?

7. Have you reviewed the comps?

8. Have you used an objective process for review? 

9. Are you purchasing to own and hold? Or to buy, renovate and flip? 

10. Is this going to be a primary residence, vacation home or investment property? 

11. Have you reviewed how this impacts your loan terms? Taxes? Insurance? 

12. Are you going at this alone? 

13. Are you buying with partners? 

14. What type of arrangement is it? 

15. Do you have contracts? 

16. It is through an LLC?

17. Have you reviewed all documental with an objective/outside advisor? 

18. Are you going through an agent? 

19. How much experience in the specific market do they have?

20. Do you know how they are compensated?

21. Have they been hands on? Why or why not? 

22. What are you using for financing? 

23. If using a mortgage, when did you start the process?

24. Have you compared other mortgage companies offers? Why not?

25. If making a down payment, is this ALL the liquid cash you have? 

26. Do you know the recurring expenses on the property? 

27. How are you tracking cash in, cash out, expenses, taxes? What software?

28. If this is an investment property, what is the monthly cashflow? 

29. If this is an investment property, do you have a written business plan? 

30. If this is an investment property, do you plan on doing the labor? Upgrades? Rehab? 

31. If this is an investment property, do you plan on Renting or Airbnb? Why? 

32. If this is an investment property, are you aware of any nuances in tax or insurance changes?

33. What is the 5 year goal? 

34. What is the 20 year goal? 

35. What would make your change your mind? 

36. Have you explored other investment opportunities? 

37. What made you decide on investing in real estate? 

38. What are your fears or worries with this investment? 

39. How will this impact your retirement plan?

40. Who will you turn to for objective advice? 

Hope this helps! 

Disclaimer: Not investment advice. Not a recommendation. Do your own analysis and make financial decisions after speaking with fiduciary professionals. This is educational material.