As you’ve probably already figured out, it’s important to go with a sponsor that has depth of experience. Inexperience and aggressive underwriting can doom a deal. Questions to ask include how many deals they’ve completed and their rate of return versus projected returns. Has the sponsor had previous deals that underperformed or didn’t meet projected expectations? If they have, it doesn’t necessarily mean you should run, however it warrants a follow up question such as “what processes have you implemented to minimize the chances of an underperforming deal in the future?” Proven experience and a strong track record are two efficient ways to qualify the sponsor.