An investment mistake even the wealthiest among us tend to repeat.

Today’s article is dedicated to you, investors who belong among the ultra-high-net-worth individuals. An investment mistake even the wealthiest among us tend to repeat.

You are surrounded by a team of experts, internal advisors, lawyers, investment analysts, family office. All experienced, competent, with years of proven results. And yet… Even the best make mistakes. Why? Because, just like all of us, they are only human.

And in today’s world, your advisors face the same influences as the rest of the market. Aggressive marketing, real estate funds that push emotions, artificially created FOMO effect, predictive algorithms that can create the impression that this is the most advantageous offer. Even artificial intelligence already plays a role in creating “recommendations” – but it too works with data that is manipulated by business strategies.

How can you rise above the surface of advertising offers and where should you even start? Let’s take a closer look, we are entering the first space that can not only interest you but also entertain you, because conversations about politics are now present in every club of influential investors, and yet each of us holds onto our own opinion and business instinct, something that cannot be bought or replaced.

If you are deciding to invest, whether at home or abroad, and it concerns high-net-worth investment decisions, it’s not enough to look only at the real estate market. That comes only at the very end. The first step is a macro-analysis of the country. What is its vision? What are its resources? What are its ambitions? What is its geopolitical position, where does it draw its budget from, and how does it plan to finance its further development?

You might be thinking now that politics doesn’t interest you, because things never turn out the way politicians promise anyway. But that is a fundamental mistake. You’re not asking the right question. The first question must be: “Does this country have a clear vision?” The second: “Who will pay for that vision, and with what?” And the third: “Is it a sustainable model that won’t swallow my wealth in the moment of a crisis?”

Let me put it another way, imagine that you find yourself in a modern-day Wild West, which in today’s world hides behind labels like emerging real estate markets, high-return development zones, or exclusive investment corridors. You’re going there with a suitcase full of money, but you don’t know the terrain. You only have a guide. If he is honest, he will point out the risks, explain where it’s not worth taking chances, and still let you decide freely, the money and the responsibility are still yours.

There are very few such guides today. Most advisors and "opportunity brokers" hide behind glossy advertisements that promise investment safety, guaranteed ROI, and luxury lifestyle returns – but in reality, they bear no responsibility, neither legal nor moral. But you are not an average investor. You are seeking legacy investment, strategic asset protection, and a private deal flow that will withstand even times of turbulence. And that is precisely why you must understand that the greatest value in a real estate investment is not determined by waterfront location or temporary price growth, but by the state’s ability to fulfill its obligations, protect property, and create a future, not just consume a budget.

In a country where energy supplies aren’t resolved and gas will be purchased at a markup through two neighboring countries, in a country where neighbors are engaged in open conflicts or where geopolitical tension looms, there is a real risk that your off-market property deal could instantly turn into a problem.

Today’s world is dynamic, geopolitics is a hard player, and governments today are turning more into commercial holdings than actual visionaries. If you are among those who manage ultra-high-net-worth portfolios, you are playing for more than returns, you are playing for trust, continuity, and the ability to survive the next rule change.

The second key step, often underestimated, yet absolutely essential, is to understand the legal framework of the country where you plan to invest. The law is the first and often the only entity that truly protects you, or, if you do not understand it, can completely eliminate you from the game.

The rules of investing are not the same in every jurisdiction, and that is why it is necessary for every international private investor entering a new market to know not only the tax conditions, but most importantly the laws concerning property ownership, foreign investment compliance, dispute resolution mechanisms, and above all, asset protection strategies.

A month ago, I already addressed this topic in my article, where I explained how to recognize which legal framework benefits you, in which countries the laws are favorable for wealth preservation, and where, on the contrary, there is a risk that your assets will not be protected at all. I highly recommend reading that article carefully – here is the link:  https://www.linkedin.com/pulse/luxury-real-estate-law-where-investors-safe-theyre-khudykovska-nwtjf/?trackingId=VISJfWmEePg%2BUtw03PdvsQ%3D%3D

Yes, the law is that next crucial pillar, a subtle, yet extremely powerful force that will either support you or destroy you. And in the global high-stakes game, where you are deciding on multi-million dollar investments, cross-border acquisitions, or sovereign-level deals, you simply cannot afford legal naivety. Quite the opposite, you need to have a legal radar that will guide you safely through the jungle full of hidden traps, legislative exceptions, opaque processes, and deliberate delays. At a time when politics changes faster than exchange rates and laws are often adjusted to serve short-term power interests, understanding the law – and working with the right legal advisors, becomes a matter of survival, not choice.

The third fundamental aspect that every ultra-high-net-worth investor should consider is this question: Are you truly buying just the property, or also the land beneath it?

Imagine you are investing in a luxury development with long-term returns, the expected return will come in 7 or even 10 years. Everything looks good. But the land on which your project stands is leased, or owned by the state, the church, or even another private entity.

And what happens if the landowner changes the terms? Decides to sell the land to someone else, raises the rent, or terminates the contract? In some Central European markets, it is common that the building is privately owned, but the land underneath belongs to the state, and in case of a crisis, the state can act as the toughest player on the market.

So we go back to the first point, the vision and stability of the state. But here we add another key factor: incomplete or superficial due diligence. If you don’t map all legal relationships regarding the land, verify the construction decisions, the validity period of the permits, the conditions of neighboring buildings, and urban planning, you may be surprised, even though everything “looked fine.”

You may find yourself in a situation where your permit is valid, but surrounding landowners decide to challenge the project, or new political leadership changes the construction conditions.

If you calculate the return over 10 years, I personally would not consider such a project suitable for long-term strategic wealth preservation, because it contains too many variables that require active monitoring, I would choose a different strategy. And this is not even mentioning the common mistake of not verifying existing lease agreements, tax history, hidden legal obligations, or the technical condition.

The fourth critical mistake, which can have very costly consequences for an ultra-wealthy investor, is the absence of local insight and context.

And what do I mean by that? You may have a whole team of brilliant minds, including your carefully trained AI, but if you don’t have a local partner, or ideally two independent local experts, you’ll become easy prey for marketing.

Imagine receiving an off-market luxury property offer in your inbox, the project looks elegant, has a nice visualization, a video, and makes a flawless first impression. But you don’t know the context. You have no comparison. You don’t know what has been left out. As the saying goes, paper can handle anything.

Let me give an example: Let’s talk about Prague, just to avoid offending any colleagues from other regions of the world. You don’t know the city in depth. You don’t know which places are truly luxurious from the perspective of both investors and residents, and which are just well-packaged marketing tricks. There might be another developer just around the corner building a truly top-notch project with yield, beautiful views, and a strategic location, but he doesn’t have strong advertising. And your advisor won’t even mention him, because he doesn’t belong to their “recommendation circle.”

Instead, they show you a project that may present itself as a flagship luxury investment, but from the terrace, you see a gray wasteland or even busy warehouses, and yet the whole project is presented to you as “the city’s best address.”

I’ll admit, sometimes this makes me laugh, when I compare what is considered luxury in advertising today.

That’s why you should consider your steps strategically. And invest in relationships. It pays off to have your own local advisor, or ideally two independent people whom you know, verify, test and who will provide you with ongoing on-the-ground insights.

Investment decisions involving multi-million-euro properties are not made based on pictures and a good pitch, but on in-depth local expertise, trust, and time.

Luxury is not about the surface, but about what lies beneath it.

The fifth, and at the same time very important, aspect that no experienced investor should forget is the tenant. Because if your project assumes that you’re buying an already occupied property with an active tenant, it is definitely not simple. And the bigger the project, the more complex the situation. Especially with investment-grade commercial properties, where dozens of tenants are involved, you must carefully analyze every single lease agreement.

And not by yourself, consult it with local lawyers who know the jurisdiction and can alert you to real risks. It’s not just about how much the tenant pays, that is just a numerical output value.

What’s important is how long the lease is valid, under what conditions you can terminate it, whether you can change commercial terms, and above all, who actually holds the power within the legal framework. In most parts of the world, the law stands on the side of the tenant, that is, the consumer, who is seen as the weaker party. And you, as the property owner, are automatically placed in the position of “greater power,” meaning you have limited tools at your disposal. If you find a clause in the contract that prohibits you from making any changes, or prevents you from terminating the lease if needed, a property that otherwise seemed advantageous becomes a legal trap that limits your strategic flexibility.

Never underestimate this. In such cases, it is not enough to calculate how much the tenant pays and what yield you’ll get. You must know exactly what rights they have, what you can and cannot do, and what legal risks might arise for you in the future.

If you are buying a high-value rental property or planning a long-term asset holding, conduct a tenant risk assessment with lawyers before signing the contract. The legal stability of the rental relationship is often far more important than any yield on paper.

The sixth very important aspect, which often determines the success or downfall of an investor, is unrealistic return expectations (IRR). When someone presents you with a project promising 20%+ IRR but without a single detailed risk scenario, a red warning light should go off.

A true investor knows that numbers alone are not reality, they are only projections. Most pitch decks today are built on optimistic models that may look impressive but completely ignore the cost of time, the expenses associated with project delays, and often lack any contingency for unforeseen costs.

Don’t invest in a project that doesn’t show you downside scenarios, that is, what happens if things don’t go according to plan. If your advisor doesn’t present clear risks, entry assumptions, and numerical limits at which the project ceases to be safe, you can walk away with a clear conscience.

Because risk is always there. And always will be. The difference between success and loss lies only in how precisely you can calculate, evaluate, and manage that risk.

Every project has several interdependent and independent variables, and until you know them, you’re not investing, you’re speculating. And speculation is a game for short-term players, not for ultra-high-net-worth investors who are building legacy capital and protecting their family office assets.

That’s why before every investment, demand a risk-adjusted IRR analysis, a complete cash flow projection report, and a model that includes a negative scenario.

Investment wisdom is not about finding the highest return, but about understanding how much of it remains after the first domino falls.

I have described only those things that you may not yet be doing, might be forgetting, or are underestimating. Everything else, I believe, you are handling excellently and correctly. But as it is in life, and in investing, there is never enough of another point of view. Especially when it comes to money. Here, the old saying applies: measure ten times, cut once. And today, it’s more worth it than ever.

I wish you a beautiful weekend. And for those of you who love the written word and enjoy diving into deeper reflection for a moment, I have a small invitation: Tomorrow, I would like to dedicate time to one extraordinary painting. It is so philosophical that it touches on the very birth of truth.

Do we live in a truth as clear as water, or in a deception that resembles muddy sludge? And what if what we perceive as truth is, in the end, only a costume, a white robe that truth puts on when it decides to be acceptable to people?

I was inspired by the famous painting “La Vérité sortant du puits” (Truth Coming Out of Her Well) by Jean-Léon Gérôme, from 1896. The allegory of the naked Truth emerging from the well is not only artistically fascinating, but also a statement about human courage to face reality, exactly as it truly is.

 The seventh risk is perhaps one of the least discussed, and yet it is fundamental. As you know, life is strategy. Everything is strategy. Your relationships are strategy, your communication, your movements, even your silence. But while in your personal life, lack of knowledge may sometimes go unnoticed, in investing, the absence of strategy is nearly suicidal.

And I don’t just mean what you do, but how you do it. Even the best idea, if it’s not paired with a well-thought-out strategy, will remain just a beautiful artifact, an unfinished work that someone else will one day find… add their own strategy to it, and monetize it instead of you.

And you will feel it. In your heart. In your ego. In that strange sting that every visionary knows the sting of having acted without structure.

One of the most common signs of strategic weakness is the underestimation of so-called choke points. Many investors buy properties as if they were “commodities”, beautiful facades, promising locations, attractive yield charts. But without a real strategic advantage.

For example: someone owns a top-tier clinic, but not the building in which the clinic is located. The person who owns the building owns the real choke point. They hold the decision-making key. Whoever controls what the other cannot function without, holds the power. Even without running any business themselves.

The solution? Use the concept of Choke Points as part of your private wealth positioning. Your goal should be to own assets that are essential to someone else’s cash flow.

You don’t always have to be the one who operates. Sometimes, it’s enough to be the one who owns the strategic intersection.

That is true investment intelligence, and the difference between wealth and dominance.

 The eighth filter, which often decides more than we’d like to admit, is emotion. That moment when a project draws you in – not through numbers, but through your heart. You already feel it’s the one, you already see yourself there, touching the materials, sensing the atmosphere.

And it is precisely then that the key question arises: Do I understand what this property triggers in me, and is it in line with my investment strategy?

It’s at that moment that it makes sense to bring in a behavioral consultant, who can read your unspoken motivations and translate them into the language of strategy. They’ll help you understand what emotion you are trying to buy, what identity you are building through this property, and most importantly, whether that emotion creates value, or just illusory attraction.

And now a crucial point many people don’t want to admit: Emotions in real estate investing are not just trivial psychology. Emotions are where money is made, or lost.

The most profitable development projects in the world work intentionally with emotion: They create spaces that evoke desire, pride, trust, or a sense of uniqueness.

Emotion is not a byproduct. It is a tool for profit.

But just as easily, it can become a blind spot that clouds your judgment. If you invest solely based on a momentary emotional impulse, without a framework, without legal and economic context, then you risk creating not an emotional asset, but an emotional liability, a beautiful burden your children will one day sell with tears in their eyes.

I have described to you only what you may not yet be doing, what you might be forgetting, or underestimating. Everything else, I believe, you are managing excellently and correctly. But as it is in life, and in investing, there is never enough of another point of view. Especially when it comes to money. Here, the old saying applies: measure ten times, cut once. And today, it is especially worth it.

I wish you a beautiful weekend. And for those of you who love the written word and enjoy diving for a moment into deeper reflection, I also have a small invitation: tomorrow, I would like to dedicate myself to one exceptional painting. It is so philosophical that it touches the very birth of truth.

Do we live in a truth as clear as water, or in a deception that resembles muddy sludge? And what if what we perceive as truth is, in the end, only a costume, a white robe that truth puts on when it decides to be acceptable to people?

I was inspired by the famous painting “La Vérité sortant du puits” (Truth Coming Out of Her Well) by Jean-Léon Gérôme from 1896. The allegory of the naked Truth emerging from the well is not only artistically fascinating but also a statement about human courage to face reality , exactly as it truly is.

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