Joint venture with a seasoned Houston developer

[Rao Mu]

I am talking with a developer in Houston who is building 200 units in a nice suburb of Houston. Construction has already started and all ground work completed and framing started too. However, out of 10 million equity developer holds 3 million and construction company owns 3 million and 4 million with private equity. Exit strategy is to sell apartments after stabilizing. However, developer wants to sell some of his equity out for 9 % preferred return while stabilizing and 24% final internal rate of return when all the apartments are sold. Exit will happen 2-3 years from now. Can someone tell me what are the risks involved in this? Developer has 20+ mil construction loan and the builder is big time California builder. Developer wants to use some of this money to a project he is doing in Austin area. What am I missing? Apartments should be ready by next summer.