Hi All, We've been so focused on due diligence on short term loans in the real estate world that we feel pretty comfortable with the system. Everything is asset based and underwritten with the worst case scenario in mind. However, I've had a few people ask about how to evaluate equity positions. These are going to be riskier, because you have to underwrite the deal as well as those who are going to be running the asset. While doing some research, I ran across another capital raising company who offered their due diligence framework as a lead magnet. It, of course, is biased and uses language to push you towards working with them but I stripped it all out and created a generic template. I wanted it share it with you all: Investment Due Diligence Framework A high level checklist for evaluating operators, funds, and passive investment opportunities. 1. Firm History and Leadership Founding date and evolution of the firmExperience of key principalsTotal transaction volume and assets managedEvidence of learning and refinement across market cycles 2. Investment Strategy and Edge Primary investment focus and target asset classesCurrent asset allocation approachUse of vertical integration or in house managementDeal sourcing strategy including off market accessDurability and scalability of competitive advantages 3. Market and Acquisition Criteria Clear acquisition triggers and value creation thesisGeographic focus and supporting demand driversPopulation and job growth trendsVacancy rates and competitive supply analysisDepth of market research and underwriting discipline 4. Operations and Asset Management Planned value creation initiativesCapital improvement and operational optimization strategyReporting cadence and performance review processCost control systems without quality degradation 5. Financial Structure and Debt Strategy Typical leverage levels and LTV targetsDebt philosophy conservative versus aggressivePreference for fixed rate and long term financingRisk management approach for interest rate changesAdvance planning for refinances and maturities

Hi All, I’ve been digging deeper into self-directed retirement accounts lately to better understand the tools people are using. One topic that comes up a lot is the checkbook-controlled IRA. It’s a setup where the IRA owns an LLC, and the account holder (as manager) writes checks or wires directly from that LLC. The appeal is clear: faster transactions and fewer custodian delays. I recently spoke with an industry veteran who’s seen this structure play out in practice. Here’s the summary of what I was learned: Why some people use it - Bypass custodian delays and fees - Move quickly on deals like private lending Where the caution comes in - Because the account holder is both owner of the IRA and manager of the LLC, it can look like too much direct control. - Different custodians treat it differently. Some won’t allow it; others do, but it’s still a gray area. - If it were ever questioned, the “fix” would usually be administrative (re-titling assets back into the IRA) — not catastrophic, but inconvenient. Other considerations - Some folks try to get around the control issue by naming a third party as LLC manager. That reduces one risk but creates another (trusting someone else with your funds). - For slower, one-off deals (like a single syndication), a standard custodian-processed IRA can be just fine. Bottom line Checkbook-controlled IRAs do exist and people use them, but they sit in a compliance gray area. For some investors the speed is worth it, for others the simplicity of a custodian held self directed IRA (or a Solo 401k if eligible) is a better fit.