What kind of investor are you?

Pause before you look at any deal

It's tempting to start with the deals: the apartment syndication with a big projected return, the ATM route, the farmland platform. But a deal can only be "good" relative to what you need. A cash-flowing laundromat could be perfect for one person and a burden for another. Before you browse the 50 entry points, take a few minutes to get clear on what you're looking for and why.

"There are no bad business and investment opportunities, but there are bad entrepreneurs and investors." — Robert Kiyosaki

Whatever you think of that line, the point stands: much of the outcome depends on fit. The right investor in the right deal, with honest expectations, has a far better chance than a mismatched one.

The self-assessment

Grab a pen or print this page. For each question, circle the letter that fits you best. There are no right answers, and nothing here is submitted or stored.

1. Why are you doing this? - A. I want income that covers part of my living costs, or will someday. - B. I want my net worth to grow substantially over the long run. - C. I want to keep more of what I earn by reducing taxes legally. - D. I want to build or run something myself.

2. How involved do you want to be? - A. Fully passive: I write a check and read updates. - B. Mostly passive, but I'll do serious research up front. - C. Passive, if the structure has meaningful tax benefits. - D. Hands-on: I'm willing to manage, operate, or oversee it.

3. Cash flow now or growth later? - A. Cash flow now matters most. - B. Growth matters most; I can wait for a payoff. - C. Either, as long as the after-tax result is strong. - D. I want both, and I'm willing to work for them.

4. How important are tax advantages? - A. Nice to have. - B. Secondary to total growth. - C. Very important; I have a high tax bill. - D. Important, and I'm open to active strategies (with professional advice).

5. When might you need this money back? - A. I'd like some access within 1-3 years. - B. I can lock it up for 5-10 years or more. - C. 3-7 years is fine. - D. Long-term; it's tied to a business I control.

6. How do you handle risk? - A. I prefer steady, lower-volatility results, even if the upside is limited. - B. I can accept large swings, or losing an investment entirely, for higher potential upside. - C. Moderate risk is fine if the tax benefits offset some of it. - D. I'm comfortable with operating risk because I can influence the outcome.

7. What is your floor, or threshold, return? Your threshold (sometimes called a hurdle rate) is the minimum annual return that makes a deal worth the extra risk and illiquidity compared with what you can get elsewhere. Write yours down: ______ %. Compare it with what you can earn on lower-risk options, and remember that projected returns in private deals are not guaranteed.

8. How much capital can you put toward alternatives, and are you accredited? - Under $5,000, or I'm just starting: begin at the Zero Entry Pool. - $5,000-$25,000: low-minimum funds and platforms, public REITs and BDCs, and possibly small business assets like ATMs or vending. - $25,000 or more, and accredited: most private offerings, such as syndications and private funds, become available. - Not sure if you're accredited? See the SEC's explanation in the resources below. In general it's based on income, net worth, or certain professional credentials.

What your answers suggest

Count which letter you circled most often in questions 1-6. Many people are a blend; use your top one or two.

Mostly A: Passive Income Seeker

You value steady cash flow and limited involvement. Entry points to explore: Real Estate (REITs, syndications, crowdfunding), Private Credit & Lending (credit funds, notes, BDCs), and interval funds in Other Alternatives. Watch for: fees, lockups, and income that looks steady until it isn't.

Mostly B: Growth Builder

You can wait and accept volatility for upside. Entry points to explore: Private Equity & Venture, development and land in Real Estate, and select Real Assets like farmland or timberland. Watch for: long timelines, concentration, and the reality that many early-stage bets fail.

Mostly C: Tax-Advantaged Investor

You care most about after-tax results. Entry points to explore: real estate syndications (depreciation), oil & gas and royalty interests in Real Assets, and self-directed IRA strategies in Other Alternatives. Watch for: tax rules that depend on your situation. Always work with a qualified tax professional, and never let tax benefits justify a weak deal.

Mostly D: Hands-On Operator

You want control and are willing to work. Entry points to explore: Cash-Flowing Small Businesses (ATMs, laundromats, buying a business), and direct rentals or short-term rentals in Real Estate. Watch for: the fact that this is often a job as much as an investment, with operating, legal, and staffing risk.

Not sure yet?

Start small and learn by doing. The Zero Entry Pool walks through low-minimum first steps from about $100.

If most of your money sits in a 401(k) or IRA, read Where Your Money Sits to see how account type shapes your options.

Helpful outside resources

Disclaimer

This self-assessment is for education only. It is not investment, tax or legal advice, a recommendation, or an offer to buy or sell any security, and the investor types are simplified examples. Consult licensed professionals before investing.