The person and the structure
How do I judge an opportunity someone brought me?
3 minute read
In anything private — a partnership, a syndication, a small business, a deal with a friend — the operator matters more than the projection. Track record, incentives, and what happens when things go wrong.
Structure decides what you actually own and what you can do about it: your position if it fails, whether you can force anything, what fees come out before you get paid, and how you exit.
The most useful question is boring: what happens if this goes badly? Good operators have already thought about it and will tell you plainly.
Why this matters
Projections are easy to produce. Structure and character are what determine your outcome.
What to do with this
- Ask for the exit terms, the fee stack, and one deal that did not work out.
- Have anything with your money and someone else's name on it reviewed by a professional.
Want this applied to your own numbers?
Ask CredABLE about this