Risk in private real estate is rarely singular. It does not arrive as one identifiable threat that can be neutralized through a single decision. Instead, risk accumulates in layers, each interacting with the others in ways that shape final outcomes.

Capital preservation is often framed as a defensive posture, something investors prioritize when growth opportunities are limited or uncertainty is high. Sophisticated investors understand something different.

Projected returns are often the first number investors see and the last number sophisticated investors trust. In private real estate, projections are inherently uncertain.

Downside protection is one of the most discussed concepts in private investing and one of the least consistently understood. Many investors associate downside protection with guarantees, insurance, or promises of safety.

Asymmetrical returns are often discussed as if they are discovered rather than constructed. The idea of achieving limited downside with meaningful upside is appealing, but it is frequently misunderstood.