Here’s What I Look for Before I Ever Put Investor Capital Into a Deal

 A transparent breakdown of how AMS Capital evaluates deals — including what most people overlook — so investors can feel confident without becoming experts.

Every good deal looks great on a PowerPoint.

The returns are promising. The photos are polished. The market trends upward. And somewhere in the third slide, there’s a line graph that seems to whisper, You’d be a fool not to invest.

But behind every pitch deck is a decision that matters more than metrics: Is this something I’d trust with my own capital?

That’s the starting point for every investment I consider at AMS Capital.

Before I ever put investor money into a deal, I run it through a filter — not just to find “good” deals, but the right ones. The kind you can trust to work while you sleep. The kind that feel boring on purpose.

If you’re wondering how to think about passive investing without becoming a real estate expert yourself, this post will give you a look under the hood.

The First Filter: Trust in the Operator

It doesn’t matter how good the numbers are if you don’t trust the people behind them.

Before I even open a pro forma, I ask:

• Have I worked with this operator before?

• How do they communicate under stress?

• Do they share bad news as quickly as they share good news?

• Are they transparent about past losses — and what they learned from them?

If the answer is no, I start digging. And if I can’t build trust, I walk.

Because in real estate, execution is everything. And execution depends on the humans running the deal.

The Second Filter: Alignment of Interests

Misaligned incentives are where most investors get burned.

I look for operators who:

• Invest their own money alongside mine

• Get paid when the deal performs — not just when it closes

• Use conservative assumptions in their projections (e.g., vacancy rates, rent growth, exit cap rates)

If their pay depends on success with me, that’s a green flag.

If their pay comes before results — or worse, regardless of results — that’s a deal-breaker.

The Third Filter: The Business Plan Is Boring

Real estate isn’t supposed to feel like a tech startup.

I like boring, steady, proven strategies. For most of our deals, that means:

• Workforce housing in stable, landlord-friendly markets

• Value-add properties where we can control upside through renovations or operational improvements

• Conservative use of leverage (no over-leveraged, speculative bets)

If the business plan promises something “revolutionary,” I’m out.

We don’t need magic. We need mechanics that work in every market cycle.

The Fourth Filter: Market Fundamentals

A great operator in a terrible market is still a bad deal.

So I look at:

• Population trends: Is the city growing? Are people moving in?

• Job growth: Are there stable employers in the area? A diversity of industries?

• Supply and demand: Is there new construction flooding the market?

• Regulatory climate: Is this a place that supports landlords and protects property rights?

Even a perfect property can struggle in the wrong environment. We want rising tides — not rescue missions.

The Fifth Filter: Debt Structure

This one is often overlooked by new investors, but it’s critical.

The type of debt on a property can make or break a deal.

I look for:

• Fixed or capped interest rates (to avoid surprises)

• Long enough loan terms to weather a downturn

• Reasonable debt service coverage ratios (we're not stretching to qualify)

Leverage is a tool. Used well, it amplifies results. Used poorly, it erases them.

The Sixth Filter: Exit Strategy Options

Every deal should have a clear plan to return investor capital — but more importantly, it should have multiple ways to do so.

What if interest rates stay high? What if the market stalls?

I want operators who have answers to:

• What if we need to hold longer than expected?

• What if cap rates don’t compress?

• What if rent growth slows down?

A good exit strategy isn’t just a best-case scenario. It’s a roadmap with contingencies.

The Seventh Filter: The “Gut Check”

Sometimes, all the numbers look good, but something feels off.

The communication is vague. The timeline feels rushed. The operator seems overconfident.

That’s when I slow down — or walk away.

Because here’s something I’ve learned over decades of investing: If something feels off before the deal closes, it will definitely feel worse once the money is in.

I trust the gut, but only after the math checks out.

The Eighth Filter: Would I Put My Wife’s Money Into This?

This is the ultimate question.

If my wife asked me, “Should we invest in this one?” and I hesitated — that’s my answer.

Investing should bring peace, not just potential.

If a deal keeps me up at night, it’s not the right fit — no matter how good the pitch looks.

Final Thoughts: Don’t Fall in Love With the Pro Forma

Spreadsheets are seductive.

But they’re also assumptions wrapped in formulas.

At AMS Capital, we invest first in people, then in markets, then in deals.

And every deal passes through a filter that starts with one simple goal: protect the downside.

Because true wealth isn’t just about growing your money. It’s about doing it in a way that lets you sleep at night, show up for your family, and live a life that’s not dictated by constant financial drama.

That’s the lens I bring to every investment. And that’s the kind of peace I want for the people who invest alongside me.