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One-minute video lessons from The Operator Question by Tanya Muro, each with a short write-up of what to ask before you invest in a real estate deal.

Track Record Showed 10 Deals. There Were 14

David saw a slide with ten past deals, and every one made money. He never asked how many deals there were in total. The answer was fourteen.

Five things to check about the company running a deal. A pitch won’t tell you most of them. Past investors will.

When a company raises money for a private real estate deal, it usually files a public Form D. You can look it up for free.

Big institutions call past investors before they invest. Everyday investors almost never do. Here’s a simple version you can use.

James was told the fees were 12%. Add up every fee for the whole time his money was in, and it came to about 22%.

A deal paid back $1.80 for every $1 over eight years. Is that almost double your money, or 7.6% a year? It’s both.

James sat through a 45-minute pitch. The risks slide came last and got about 90 seconds. It was the most honest slide in the deck.

Same building type, same city, same month, same loan. Five years later, one beat its plan and the other was in trouble.

Reading the documents before you invest is screening. Real due diligence keeps going for as long as your money is in the deal.

Patricia checked the property, the 6.2% payout and the ten-year track record. She never checked the people running it.