Investing as a limited partner in a multi unit

[Anita Ahuja]

I'd would very appreciative of some solid advice on investing as a limited partner in a multi-million dollar multi-unit property. Investment group is trying to raise the capital to but. Investment group members considered as general partners and outside investors are what's called limited partners. Please excuse any naivety here. Initial investment 75% down payment. High appreciation market. CoC 7.1 % projected in 5 years Purchase cap rate 5.40 5 year projected IRR : 15% Limited Partner cash Flow as % of Initial Equity: 6.5 % year 1 to projected 7.1% in yr 5 Break down of distributions: First 6%, Preferred Return to Limited Partners (LPs) Over 6%, 60 % to LPs and 40% to General Partner (GP) GP fees: 1.5% acquisition fee, 1% asset management fee I would like some advice on down sides of investing this way. What questions should I be asking of the investment group? What should I be weary of and how do I protect my investment? How do I get out of and when I want to? Please let me know if there is additional info needed Thanks in advance. I feel a crucifixion coming on....