Things to consider when you particpate a lending project.

Recently, I was introduced to a real estate developing company around the area I lived. This developer is looking to build a 300+ high rise condo building in the downtown area. As far as I know, the developer already have a option fee to purchase the land. All they need right now is to raise funding to do a rezone of the land from residential to commercial so they can put a high rise building on it. They're looking to raise 4Million plus from investor and they offer excellent 50% return guaranteed by the company's trust to investor in 12 months. The minimum contribution is $100,000. This is definitely sound very attractive. If you lend them $100,000, after 12 months, they will return you $150,00. Once the rezone is done and approved by city, the developer plan to get a construction loan to pay back the investor principle plus interest. I'm reviewing their contract to consider this investment opportunity. These are some risk to consider:
1)What if the rezoning fail for some reason, the land cannot be rezone to build high rise building?
If the developer fail get the rezone approved, they obviously cannot get the loan to pay back the investor. As a investor, we have to check how strong and experienced the company and their team has done this kind of project before to weight the risk.
2)What if the builder don't pay back investor?
Well, according to the contract, investor's principle and interest is guaranteed by the company's trust. If the builder fail to get rezoned approved, they must liquefy their assets to pay back investor. The builder can show their financial statement to investor. As a investor, we need to check their financial strength (ie, how much networth the trust has)
3) What if the builder bankrupt?
That's obviously the biggest risk to consider! If the company do bankrupt, investor could potentially lose all the investment and need to file ligation to claim the return of money. Again, as an investor, we need to weight how reputable and likelihood the company may bankrupt.

50% cash on cash annual return is definitely attractive. But there is risk involved. I will have to do more research, meet with the officials of the company, check their financial strength by looking at their financial statement, check their previous works and references, to decide whether to go for the lending opportunity. Any one has experience of involving in any lending project in the past? Any insight to share?