Why Structure Protects Your Capital More Than Promises

Before you invest, there's a moment when everything looks good.

The numbers work. The location makes sense. The operator seems credible.

That feeling is not due diligence. It's comfort.

Real due diligence forces you to ask questions nobody wants to answer, and to walk away when those answers don't exist.

What experienced investors evaluate:

1. Decision Rights

— Who has authority when the plan stops working?

— If additional capital is needed, who approves it?

— Do you have any voice, or are you just along for the ride?

2. Capital Position

— Where do you sit in the repayment order?

— If the project underperforms, whose money takes the first hit?

— What security exists, and is it enforceable?

3. Timeline Reality

— Has the schedule been stress-tested?

— What happens if completion takes 18 months instead of 12?

— Does your liquidity expectation match what the project can deliver?

4. Conflict Mechanics

— If partners disagree, how are decisions resolved?

— Are there contractual mechanisms, or just goodwill?

Before your next investment, ask yourself:

— Who decides what if the plan changes?

— Where does my capital sit relative to other money?

— Is there a buffer in the timeline?

— Are reporting expectations documented?

If any of these are unclear, you're not investing. You're hoping\

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