Due diligence for development venture?

[Justin R.]

I am contemplating an investment with a local developer. I would be able to contribute as much as I wish and am "guaranteed" up to a 40 percent annualized return, or the option to profit share. The current project is at the stage of land acquisition and currently in escrow. There have been permits pulled, and rezoning pre-approvals. I have the option of getting my money back plus interest upon a construction loan during phase two, which means I would have theoretically no ties to the sales price. 

I met the developer at a local RE meet up and he seems knowledgeable, and trustworthy. The investment would get me a note and deed of trust. What further due diligence should I do prior to sending funds to a Gentleman I just met?

I appreciate your help and advice.

[Wayne Brooks]

Lots of variables, including this guy's track record and experience, but do realize that your trust deed/mtg would be subordinate to the construction loan.  And of course "up to", by definition, means "less than", and there are no guarantees.