Dani Lynn Robison walks through five questions to ask before investing with anyone. Has the operator completed deals and actually paid investors? What were the real returns versus projections? How did they handle past problems? Do they have their own money at risk? How will they communicate if things go wrong?
If someone is asking you to invest money with them, ask these 5 questions first, because most people don't, and that's how they get burned. Question 1: Have you done this before? And did your investors actually get paid at the end? Not did you start deals, did you finish them and pay people back? Big difference. Question 2: What did investors actually make? Not what you projected. Anyone can write down a number, but what actually happened? Question 3: Has anything ever gone wrong? What did you do? If someone says everything has always been perfect, that's a red flag because every experienced person has had a rough deal. What matters is how they handled it. Question 4: Is your own money in this deal? If they're not putting in their own cash, their motivation is different from yours. You want them to have skin in the game. And question 5: How do you communicate when things go bad? Because things will get hard at some point. You wanna know before it happens whether they'll ghost you or keep you informed. 5 questions, that's your filter.
Physicians and High Earners — What Real Estate Can and Can't Do for Your Taxes
