The Five Questions I’d Ask Any Sponsor Before I Wired a Dollar

In this episode of Growing Empires, Jennifer De Jesus shares five essential questions every passive real estate investor should ask before investing with a sponsor.

Jennifer explains how to evaluate the deal’s preferred return and waterfall structure, examine real investor reports from difficult quarters, and compare the sponsor’s fees with their performance-based compensation. She also discusses the importance of understanding loan maturity, refinancing risks, backup exit strategies, and whether the sponsor has invested their own capital.

Finally, Jennifer encourages investors to ask sponsors what they have gotten wrong and how their processes have changed as a result. These questions can help distinguish experienced, accountable operators from persuasive storytellers—and reveal whether a sponsor deserves your trust and capital.