The next point of focus for potential high net worth investors should be the actual team behind the project, those individuals who will be facilitating the development and building as well as managing day-to-day operations. One must be positive that the team executing the project is well-experienced, reliable, and has a proven successful track record. Working with a stronger, more talented team, the investor will likely incur higher costs, however this is not necessarily a bad thing, as this team will reduce the risk of the investment, and as mentioned before, with a lower risk comes lower return.
Another factor to consider is the actual Market Risks factor. Many investors have a bad habit of wanting to receive higher returns than what was initially offered when they see that the local real estate markets are performing at a high rate. This presents the danger of driving down and bankrupting the entire project, as it is important that investors always consider the initial return presented by the Performa in the beginning, not to have it increase or decrease based on current market performance.
