Philadelphia Real Estate - downtown Philly Rowhomes

[Cj Powderhorn]

Hi, looking at a deal to buy, rehab, rent and eventually sell about 20 rowhomes in Philly.  Primarily to provide 'work force', stable housing. Most won't be complete until Sept/Oct so hopefully rental payment restrictions will be gone.

Backed by a $15M LOC already in place.Expected return of initial investment (+x%) at refi at end of year one. This is the 3rd fund for the organization. Other two are doing well. More upside for this one as original purchase prices have fallen, but more risk as well possibly.

Returns are quoted quite high. Expenses as well:  showing a GP Aq fee of 3%, development fee of 5%, GC fee of $7500 per property, PM start fee of $1000 and PM fee of 5%, Additionally, one of the partners owns a very large brokerage so I am sure there will be commissions on the buy/sell.  Do the fees really matter if the returns come thru?  I've researched other projects, talked to references, etc. I have the property info on the other two funds and they are going as planned.

Would love to know your thoughts....