But if it were a sale, or true recapitalization, the investment proceeds would double that.Does the sponsor have any justification or precedent in doing this, if it's not described in the OA? 

(I am aware that I'm doing a bit of internal justification though haha).Cheers!

If money is not co-mingled then there would be no justification to pierce the veil. 

South Holland, Chicago Heights, etc, are NOT great areas and you apparently don't know it.The fact that people get off a bus and love the finish of the rehabs is not a justification that they're great deals.

I see justifications for IRR that rely on 5-7% yearly rent increases.   

Thing is "Guru's" are not selling REI knowledge, and those buying the packages are not handing over there CC to buy knowledge or know how, the education component is just the justification.

I am willing to listen to my PM if they have reasonable justification for higher or additional fees based on the circumstances.

And banning one tenant's entire family without reasonable justification seems like it might constitute discrimination. 

If you use the rehab loan route, you get the money financed to complete the modest rehab AND you have built-in justification to a 30-year lender that the property is worth the $850k+.

This will allow you to renovate the property, which in turn will serve as a justification for higher rents and allow you to submit mark-up-market request for the HAP contract.