All investing has risks so your initial investment is not guaranteed to be returned to you if things go very bad. However, we are just taking on a very moderate amount of debt so the risk on the project is low. And as a preferred stock holder you will be first on the equity line to be paid. The sponsors (Neighborhood Ventures) have common stock and will be paid after preferred stock holders. Hence, you are in a good position to get your money back if things start to go south.