Returns TOO high? Spoiled the investors?

[Jace Holt]

Can returns be too high that investors set their expectations too high for any subsequent deal to meet? 

Every few projects I put together, I make one that pencils out really well. When trying to decide how to split the profits, I have trouble deciding how to split my cut vs the investors cut. 

I have talked to investors who put their money into someone else's project  and were put off that their capital was facing all of the risk but the operators made the majority of the profit. They recognized that they agreed to the returns they recieved, but when the operators made way more with no capital at risk, they were a little put off.

On the other side I have spoken to operators who paid out 30%+ per year returns. When they went back to the investors for an18%+  deal, they were turned down and told "I'll just wait for one of those 30%+ deals".

At the end of the day, both investors came out of it with a negative attitude toward the next investmet.

Part of me thinks that a lot of investors have already decided what they think investments should return to them. One type of investor (I'll call them type 1) may be a 8-12% return person who prides themselves is in a low volitilty, low risk, low return investment porfolio. Type 1 precieves high risk from a high return and is actually uneasy when returns are advertised any higher than the SP500 or standard index funds. Another type (I'll call them type 2) will take pride in finding a steal of a deal. Type 2 sees low returns and feels they have underachieved their potential if they invest. They want the highest returns they can get. 

Obviously there are all types of investors and everything in between. Not only that, there are all type of investments. Some more speculative by nature, some less. Some projects I put together can make 12-18%. Some can be 25-50%+. Not every investment will fit every type of investor. Not all investment money is fungible.

I obviously want to take care of both myself and the investor the best way possible.

How is everyone else handling this? What returns do you put on your projects? What criteria is that based on? What percent are you getting? What is the investor getting? What is your psychology on the matter?

Thanks for taking the time to read! I'd love to hear your responses!