SMART Investor Scorecard

Question 1 of 15

S — Sponsor Awareness

When you consider an investment opportunity, how important is the sponsor's or operator's track record to your decision?

Not something I typically look at
I check their website and pitch deck
I research their past deals and performance history
I vet their track record, references, and how they've performed through downturns

Question 2 of 15

S — Sponsor Awareness

Have you ever invested in a deal where you personally spoke with or evaluated the sponsor/operator before committing?

No, I've mostly invested through platforms or funds without direct contact
Once or twice
Yes, I always try to evaluate the people behind the deal
I have a systematic process for sponsor evaluation

Question 3 of 15

S — Sponsor Awareness

If an investment opportunity came with great projected returns but the sponsor had no track record in that specific asset class, what would you do?

Probably invest if the numbers look good
I'd be cautious but might still invest
I'd pass — track record in the specific asset class matters
I'd pass and look for a similar opportunity with a proven sponsor

Question 4 of 15

M — Market Knowledge

How do you currently research markets before making an investment?

I rely on the deal sponsor's market analysis
I do some basic research on the area
I look at population growth, job trends, and supply/demand data
I have a systematic market analysis process including multiple data sources

Question 5 of 15

M — Market Knowledge

How many different geographic markets are your current investments in?

All in one area or I'm not sure
2-3 markets
4-6 markets
7+ markets — I intentionally diversify geographically

Question 6 of 15

M — Market Knowledge

How confident are you in identifying a strong market for commercial real estate or alternative investments?

Not confident — I don't know what to look for
Somewhat confident — I know the basics
Confident — I understand the key demand drivers
Very confident — I can evaluate markets independently

Question 7 of 15

A — Asset Diversification

What percentage of your investable assets are currently in alternative investments (real estate, PE, private debt, energy, etc.)?

0% — I'm entirely in stocks, bonds, and mutual funds
1-15%
16-35%
36%+ — alternatives are a major part of my portfolio

Question 8 of 15

A — Asset Diversification

How many different asset classes do your investments span?

1-2 (stocks and bonds)
3-4 (maybe some real estate or REITs)
5-7 (mix of stocks, real estate, private equity, debt)
8+ (intentionally building uncorrelated income streams)

Question 9 of 15

A — Asset Diversification

Do you believe the ultra-wealthy invest the same way as most retail investors?

Yes — they're mostly in the stock market too
I'm not sure
No — I know they use alternatives, but I haven't done it myself
No — and I'm actively building my portfolio to look more like theirs

Question 10 of 15

R — Risk & Return Understanding

When you evaluate an investment opportunity, do you stress-test it against negative scenarios (interest rate increases, rent declines, vacancy spikes)?

No — I mostly look at the projected returns
Sometimes, but not systematically
Yes — I look at multiple scenarios before investing
Yes — and I won't invest unless the deal pencils under stress conditions

Question 11 of 15

R — Risk & Return Understanding

How do you feel about the concept of "preferred returns" in private investments?

I don't know what that means
I've heard of it but couldn't explain it
I understand it and look for it in deal terms
I negotiate for it and evaluate the waterfall structure of every deal

Question 12 of 15

R — Risk & Return Understanding

What's your approach to managing investment risk across your portfolio?

I trust my financial advisor to handle it
I try to diversify within the stock market
I spread investments across different asset classes and strategies
I intentionally build a portfolio of uncorrelated income streams that perform regardless of Wall Street

Question 13 of 15

T — Timing & Tax Strategy

Do you currently use any tax-advantaged investment strategies (cost segregation, depreciation, 1031 exchanges, opportunity zones)?

No — I'm not familiar with these
I've heard of them but haven't used them
I've used one or two of these strategies
I actively incorporate tax strategy into every investment decision

Question 14 of 15

T — Timing & Tax Strategy

When you invest, how much do you consider the timing of capital return (when you get your money back)?

I don't think about timing much
I have a general idea of the hold period
I match investment timing to my cash flow needs
I strategically ladder my investments for predictable liquidity

Question 15 of 15

T — Timing & Tax Strategy

How would you describe your overall investment strategy?

I'm mostly saving and investing in my 401(k)/IRA
I invest in stocks and am exploring other options
I have a mix of traditional and alternative investments but want more structure
I have a deliberate portfolio strategy targeting 8-12 uncorrelated income streams

How Investment-Ready Are You?

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When you consider an investment opportunity, how important is the sponsor's or operator's track record to your decision?

Have you ever invested in a deal where you personally spoke with or evaluated the sponsor/operator before committing?

If an investment opportunity came with great projected returns but the sponsor had no track record in that specific asset class, what would you do?

How do you currently research markets before making an investment?

How many different geographic markets are your current investments in?

How confident are you in identifying a strong market for commercial real estate or alternative investments?

What percentage of your investable assets are currently in alternative investments (real estate, PE, private debt, energy, etc.)?

How many different asset classes do your investments span?

Do you believe the ultra-wealthy invest the same way as most retail investors?

When you evaluate an investment opportunity, do you stress-test it against negative scenarios (interest rate increases, rent declines, vacancy spikes)?

How do you feel about the concept of "preferred returns" in private investments?

What's your approach to managing investment risk across your portfolio?

Do you currently use any tax-advantaged investment strategies (cost segregation, depreciation, 1031 exchanges, opportunity zones)?

When you invest, how much do you consider the timing of capital return (when you get your money back)?

How would you describe your overall investment strategy?