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Real Estate Investing Fundamentals Quiz

Test your knowledge of real estate investing concepts with a fun and educational quiz. Gain valuable insights into the world of real estate investment and challenge yourself to identify areas for improvement in your skills. Take a quiz today and stay up-to-date on the latest trends and best practices in the field!

Welcome to the Real Estate Investing Fundamentals Quiz! This quiz is designed to test your knowledge of the basic concepts and principles of real estate investing. Whether you're a beginner or an experienced investor, this quiz will help you assess your understanding of the fundamentals of real estate investing. So, let's get started and see how well you know the basics of real estate investing!

Start

Question 1 of 10

You're just getting started as a real estate investor. You...

A

Tell everyone, it's good for getting the word out and finding good deals.

B

Tell a few select people who you think would be a positive supporter or who may be a solid resource for help.

C

Tell no one for fear of being ridiculed

Question 2 of 10

It's been 3 months since you got into real estate and you haven't closed your first deal yet, you're discouraged. You should...

A

Give up and move onto something with faster results. Take the attitude, if it didn't work in 3 months, it ain't going to work.

B

Keep doing what you are doing, ignore the discouragement, replace it with a positive mental attitude and dig in!

C

Reflect on what you have done thus far and use the discouraging feelings to drive you to make key adjustments.

Question 3 of 10

 

With a lease-option arrangement you:

A

A lease option is an agreement that gives a renter a choice to purchase the rented property during or at the end of the rental period.

B

A lease option also precludes the owner from offering the property for sale to anyone else.

C

A renter usually pays some percentage above the standard monthly rental amount, which goes to the downpayment for buying the home.

D

All of the above

Question 4 of 10

 

Five real estate investment "tools" that can lead you to wealth are:

A

Cash flow, amortization, leverage, appreciation, and the tax advantages of real estate investing

B

Market knowledge, return on investment, nice tenants, cyclical markets, and negotiating skills

C

Life, liberty, comedy, tragedy, and the pursuit of happiness

Question 5 of 10

You've just closed your first deal and made $10,000. You...

A

Spend it all. Splurge. You only live once

B

Spend some of it on celebrating this monumental accomplishment. Reinvest the most in your real estate endeavors.

C

Reinvest it in your fledgling real estate enterprise. There will be plenty of time to celebrate when you are rich.

Question 6 of 10

 

Before you invest in real estate, you should:

A

Know Why You Are Investing

B

Know Your Financing Options

C

Study Real Estate Investing, take a course or read a book on it from a reliable source

D

All of the above

Question 7 of 10

 

You just got started and really want to get your first deal done. You find a buyer that will pay your asking price but they need some extra cash to fix the property up when they move in so they propose paying more than asking price and then, after closing and not on the closing statement, you give the buyer back the amount paid above the asking price. You…

A

Say absolutely! If my property gets sold, I don’t mind giving you back your money when the deal is done.

B

Decline the above-asking-price offer because your closing agent thinks it may be considered fraudulent if the extra money going to the buyer isn't on the closing statement and paid out at the closing.

C

Work with a new real estate agent

Question 8 of 10

You're investing in a market that has cooled off. Your best strategy might be to:

A

Don't do anything. Anything outside your plan, no matter how good it might be, will throw off the momentum and distract you from your plan.

B

Consider selling what you have, and get out!

C

Look for investments that you can buy, hold, and rent out until the market turns up again.

Question 9 of 10

 

A very important deal that is about to close is falling apart. You...

A

Give up. Tell yourself, "That's just my luck."

B

Ignore the problem, think positive and if it is meant to be, it will close.

C

Patiently and methodically, with the help of your team, remove the obstacles preventing the deal from closing and consistently follow up with the deal until it closes.

Question 10 of 10

You have the opportunity to invest in a deal but it would require you to borrow money. You…

A

Make sure the rewards far outweigh the risks by conservatively and unemotionally evaluating the deal.

B

Dive in because leverage is power, the more real estate you own, the better and this deal just feels like a good one.

C

Turn it down because you don't believe in debt.

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