Private Money Partnering

THE RISK QUIZ

What’s your tolerance for taking risk? Find out by taking this quiz.

1. Which best describes your feelings about investing?

1. “Better safe than sorry.”
2. “Moderation in all things.”
3. “Nothing ventured, nothing gained.”

2. Which is most important to you as an investor?

1. Steady income
2. Steady income & growth.
3. Rapid price appreciation.

3. An investor friend has excitedly told you about a good real estate deal, but you've never heard of the neighborhood. What would you do?

1. Pass on it.
2. Get more information
3. Trust your friend’s judgment
   

4. You won! Which prize would you select?

1. $4,000 in cash!
2. A 50% chance to win $10,000!
3. A 20% chance to win $100,000!
   

5. You found a good deal on a rehab house & if you handle yourself, you'll make a lot of money, but you know it will take a long time. Should you:

1. Tell someone & get a bird dog fee.
2. Plan your time & funds wisely & do it your self.
   
3. Joint venture with someone you don't know who has done other houses in the neighborhood
   

6. The stocks in your 401(k) statement have suddenly gone up 20%. You have no further information. What would you do?

1. Transfer out of stocks & lock in my gains
2. Stay in stocks, hoping for more gains.
3. Transfer more money into stocks.They might go higher.

7. The stocks in your 401(k) have dropped 20% since last quarter. The market experts are optimistic. What would you do?

1. Transfer out of stocks to avoid losing more.
2. Stay in stocks & wait for them to come back.
   
3. Shift more money into stocks. If they made sense before,
   they’re a bargain now

8. Would you borrow money to take advantage of a good investment opportunity?

1. Never
2. Maybe
3. Yes
   

9. You inherit $100,000 F&C house in great neighbor’hood appreciating faster than inflation but it has deteriorated. Rental net $1000/mo. without fix up. $1,500 w/fix up which can be financed.

1. Sell house.
2. Rent as is.
3. Fix and rent.
   
   

HOW TO SCORE:

Answers marked A are worth one point each; B, two points each, C, three points each. Add them up.

9-14 points: Conservative risk taker
15-21 points: Moderate risk taker
22-27 points: Aggressive risk taker

The Risk Quiz
Evaluating The Opportunity - Chapter I