As a reminder, Madoff "had annual audits".Part of my DD, while I do ask if a company has audits and shares them with LPs, I also ask for FULL financials: Income Statement, Balance Sheet and Statement of Cash Flows for properties through partnership level items.  

This is another avenue for the person touting the investment to drain money from the LPs. 

And the dump of insurance and federal money will stimulate the local economy by a considerable amount.

Investment groups do exist for LPs and are typically free.Check out Left Field Investors as one option.  506 Investors Club is another (more reviews than education, I believe).  

this stimulates investments into business's and there are rules to follow  like the note holders cannot be direct relatives  etc. the cost of setting up  dictates its only worth it for 7 figure and above cash investments.. 

Prices skyrocketed from massive government actions and those actions first stimulated demand and later de-stimulated supply.People are not buying because they have more knowledge now...it's actually the opposite, transactions are at record lows.

Some, but not much.It may stimulate building of rental housing.

Hello BP,Just curious to hear how other GPs keep LPs in the loop when they are looking for deals/do not have any opportunities currently available for them?

I think their business model relies on showcasing successful exits during good times (everyone is a genius in a bull market) to ensure that there is no shortage of sucker LPs. 

This project seems like it’s not good for the LPs or GP (at least at this purchase price).