The 18‑point checklist
Legal entity & title: Who owns the asset? How are investor rights recorded?
Licensing & permissions: Which regulator or authority applies (if any)? Confirm numbers and scope.
KYC/AML & eligibility: Understand onboarding rules and any jurisdictional restrictions.
Banking/custody controls: Where is money held? Who signs? Segregation from operating cash?
Fee table: Acquisition, management, performance, exit—timing and impact on net returns.
Waterfall & reserves: Who gets paid first? Are reserves adequate for vacancies/capex?
Track record: Past exits, audit history, and referenceable investors.
Conflicts of interest: Related‑party transactions, brokerage, or vendors—how are they handled?
Business case: Demand drivers, competition, and why now.
Financials: Rent roll/NOI (for property), P&L/cash flows for operating assets; reconcile promises vs. documents.
Leverage & covenants: LTV, rates, maturities; DSCR/ICR if applicable.
Valuation support: Independent appraisals/third‑party reviews and their dates/assumptions.
Operational risks: Build quality, service charges, maintenance, or key‑person risk.
Tax & reporting: What filings or withholdings could apply to you (UAE and home country)?
Exit pathways: Sale, redemption, secondary transfers; lockups and notice periods.
Documentation quality: Clear, consistent, free of contradictions—sloppy docs are a signal.
Governance: Board/advisory, voting thresholds, investor communication cadence.
Scenario testing: Run downside cases; decide if you still want the risk/return tradeoff.
Red flags to slow down on
- Guaranteed or unusually high “risk‑free” returns.
- Reluctance to share audited statements, ownership docs, or fee details.
- Complex flows of funds without a clear custody model.
- Pressure tactics (“last unit today only”).
- Social‑proof that substitutes for substance.
How to use this checklist
Copy these points into your notes or CRM, and score each deal 1–5. Anything scoring below your threshold: pass or demand changes. Discipline is your edge.
