Dani Lynn Robison says ask one question before investing in real estate: does the sponsor have their own money in the deal? A sponsor with skin in the game shares your risk and protects you when problems hit.
Before you invest in any real estate deal, ask this one question first: Does the person you're working with have their own money in the deal? Not just their time, not just their reputation, their actual money. And here's why it matters. When things get hard, and sometimes they do, people protect what they stand to lose. If the sponsor has nothing at risk, your money is the only money at stake. But if they're invested alongside you, You're on the same team. It's a simple question that most people never ask. Ask it every time.
Physicians and High Earners — What Real Estate Can and Can't Do for Your Taxes
