Agreed. These are three of the most important things any LP should evaluate before investing. It's equally important to understand how some sponsors work around each of them.

Experience: A common playbook is to take a syndication course, obtain permission to list the coach or mentor as a "strategic advisor," and then prominently display the advisor's transaction history in a way that can leave investors with the impression those deals were completed by the sponsor. Another variation is raising capital for someone else's deal, receiving a small co-GP interest, and then marketing the entire property as part of the sponsor's track record.

Alignment of Interest: Read the PPM carefully. Most investors focus on the waterfall, preferred return, and ownership percentages, but often pay less attention to formation costs, acquisition fees, asset management fees, loan origination fees, development fees, construction management fees, property management fees, and other affiliated-party compensation. By no means am I suggesting a GP shouldn't be paid. In fact, a GP struggling to cover personal expenses can be just as concerning. The key is balance. You want a sponsor whose economics are tied to the success of the investment, not one who is exclusively compensated regardless of the outcome. At the same time, you want the sponsor to be making rational business decisions and not allowing their personal finances sway investment decisions that may not be best for the real estate. 

Is the GP actually invested in the deal? In many deals, substantial upfront fees allow the sponsor to recover much of their capital early in the investment. In some cases, the GP's contribution is raised from others as well. Understanding how much of the GP's own money is truly at risk is important.

One additional item I always examine is the loan guarantor. Is it the lead sponsor who is actively involved in day-to-day operations, or a passive co-GP brought in primarily for balance sheet support? Lenders verify liquidity, net worth, creditworthiness, and background. I generally prefer the person driving the business plan and making operational decisions to also be the person standing behind the loan. I also like to examine the debt terms. Strong debt terms are often awarded to borrower's lenders are most comfortable with. Generally speaking, if the lender is comfortable, I am more comfortable.