From the book Dead Money
DEALS Scorecard
Rate a private investment against the 5-filter framework. Answer yes, no, or need more info — then download or email a branded PDF to share with your advisors.
About the deal
Only the deal name is required. Everything else is optional.
Filter 1 · Decode the Math
Can I explain how this deal actually makes money in plain language?
If you can't describe the profit engine — how capital goes in and how returns come out — in language a teenager could follow, you don't understand it well enough to invest.
Filter 2 · Evaluate the Deal
Is the return fair to me given the risk, fees, and profit split?
A good deal in the abstract isn't a good deal for you. Check the structure and fees — they're a primary determinant of your outcome, not a detail.
Filter 3 · Assess the Operator
Do I trust the operator, and do they have real skin in the game?
The person behind the deal matters more than the deal itself. Follow where the operator's paycheck comes from and you'll understand how they'll behave when things get hard.
Filter 4 · Locate the Risks
Do I know what can go wrong — and does the legal structure protect my downside?
Every financial decision carries risks you didn't agree to or didn't know about. Map them, and verify the docs actually shift the risk the way you think.
Filter 5 · Spread Your Capital
Does this fit my portfolio without making me over-concentrated?
A single underperforming deal should never damage your entire financial position. Diversify across deals, sponsors, and asset classes — with emotional discipline.
Your read on this deal
Incomplete
Enter a deal name to continue.
For informational and illustrative purposes only. Not investment, legal, tax, or accounting advice.