James’s story, from Tanya Muro’s book The Operator Question, is based on real cases.

He sat through a 45-minute pitch for a big industrial property. It went the way most pitches go. Returns first. Then the track record. Then the team photo.

The risks slide came last. It got about 90 seconds.

The most honest slide in the deck

A pitch is built to make you feel confident. In the book, Tanya points out that the risks slide is the exception. It holds the most honest words in the whole presentation, because it is where the company has to write down what could go wrong.

And the slide is only a summary. The full legal document goes much deeper. In James’s case, the slide version of the risks was 40 words. The full version was 40 pages.

What to look for

Generic risks, like “real estate values can go down,” appear in every offering. The ones worth your time are specific to this deal. For example:

A loan that comes due in 2027.
New competing buildings planned nearby.
One tenant that makes up a large share of the rent.

When you find one, ask the company directly: What is your plan if this happens? A good operator has already thought about it and will tell you.

James didn’t ask. Later, competing buildings opened nearby, and his payouts stopped.

If the returns slide is where you usually slow down, Tanya’s post on how the same deal can be described two ways is worth a look too.

Would you read all forty pages?

This post is based on a one-minute video on Tanya Muro’s YouTube channel. For education only, not financial advice.