Principle 38 says sell before you build. How real estate operators pre-sell a unit, test demand with a deposit, and stop paying for guesswork. Here is the test.
Most property owners track appreciation and cash flow. Return on equity is the number that tells you what your trapped capital is actually earning, and when it is time to move it.
Serious capital vets the operator long before the property. Here is the lender discipline that protects your principal before any money moves.