Companies have been using personality testing for years to determine the right position for their employees. Why not use those same tools to understand what kind of investor you are? Try this.
Real Estate Investor Quiz: Part 1
Answer these two simple questions:
1. Would you consider yourself more formal or more casual?
2. Would you say you tend to take charge of situations or instead “go-with-the-flow?”
Write those two answers down, and look below for what may describe your investment personality.
Formal & Go-with-the-Flow
When it comes to investing, or making any decision for that matter, “Formal-Flow-Withs” tend to use a very calculated approach. They are highly intelligent and love research, data, and developing systems. They do not want to make a mistake or take a loss, so they analyze every possible angle before taking action. Let’s refer to them as the proverbial Tortoise.
The Tortoise-type can achieve great success by taking calculated baby steps in the direction of their dreams. In real estate, they are best suited for the types of deals that allow time for research. They should pick just one type of investment and learn it thoroughly. For example, commercial or multi-family property can be tied up in contract for months, allowing the buyer to research piles of paperwork. Buy & hold strategies are also a fit because the Tortoise can buy one rental property per year, allowing plenty of time to choose the right home.
On the other hand, flipping properties could be too stressful because decisions need to be made quickly. Tortoises don’t like being pressured to make quick decisions before they’ve finished their analysis. They will slam on the breaks if they think things are moving too fast and hide out in their shell for safety.
If you are in relationship with a Tortoise, be sure to give them lots of data to devour, and plenty of time to digest it.
And since opposites attract, most Tortoise’s will find themselves in relationship with a Mustang.
Casual & Take Charge?
You are probably high energy, dynamic, fun-loving and friendly. Yes, you are like the proverbial Hare, but since that story ends poorly for you, let’s be more creative and call you a Mustang.
Mustangs are fast and are highly responsive. If they get off-track, they just turn the wheel and readjust. Mustangs aren’t afraid to jump into things. They aren’t worried about making mistakes because they like to laugh, even if it’s at themselves. These are the entrepreneurs of the world. They feel life has been well-lived if they’ve tried lots of things, and don’t mind having a few dents to show it. They are highly creative people who’s ideas are nearly impossible for others to keep up with.
Mustangs don’t like to analyze. It literally hurts their heads, so instead, they go with the gut. Sometimes they win and sometimes they lose, but they don’t care because they’re happy anywhere. What matters most is that they played the game.
A Mustang could do very well flipping homes, raising money, or selling pretty much anything. They will be most successful if they are supported by Tortoises who help slow them down. Even fast cars need to have brakes. This can be a wonderful partnership as long as the Mustang is willing to stop at yellow and red lights, and as long as the Tortoise is willing to get off the brakes when it’s green.
If you’re investing with a Mustang, you must require that their materials be closely analyzed by a Tortoise. While their intentions may be good, they may jump into things they don’t understand.
That may be OK for them but probably not for you.
Formal and Controlling?
You probably like to be in charge so that things go your way. Let’s call you the Steam Roller. A Steam Roller is mainly concerned about the bottom-line results. Self-motivated and disciplined, the Steamroller will go for the goal, and won’t let anything get in the way.
Steamrollers are powerful enough to set up a firm foundation. That’s why they are often found in positions of power.
If you are investing with a Steam Roller, they will likely run a tight ship. However, if they are too focused on the goal, they might hurt the people around them without knowing it. Like most things, real estate is a relationship-based business. An out-of-control steamroller can destroy relationships by being too demanding, domineering, or impatient.
Good jobs for a Steam Roller would be managing contractors, property managers, and real estate agents. If they want more productivity out of their support team, they need to remember that a little kindness goes a long way.
If you’re a Steam Roller, start your requests with a compliment. Look for the good in others, and you will find it. When you offer compassion and kindness to your list of abilities, and you may be surprised that your supporters will become your most loyal Fans…
Casual and Go-with-the-Flow?
You are loyal, dedicated and committed. Relationships are all that really matter to you. You love people so much that you can easily become a #1 Fan.
Fans value harmony, so they sometimes become too nice just to keep the peace. That can be a problem for investors who might need to fire a property manager who isn’t doing their job. A Fan might even be willing to buy a property or investment they don’t really want just because they don’t want to offend anyone by saying, “No.”
That’s why Fans are usually attracted to Steam Rollers who will say “No” for them. This can work out well if the two play “good cop/bad cop.” Fans are usually highly intuitive because they are so sensitive, so Steam Rollers should stop and listen to them.
Tips for Fans – Become our own fan! You may find that when you serve yourself first, just like the flight attendants tell you to do with the air masks, you can give more to others. Make a list of your values and be loyal and dedicated to them first and foremost.
While we might identify strongly with one of these personality types, we can create more balance in life if we develop all of them. For example, a Mustang can gain tremendously from slowing down and becoming more analytical, like the Tortoise. And a Tortoise can gain from speeding up a bit and taking more risks.
Consider developing one or two skills from the opposite personality type of yours, and see what happens!