Can anyone explain why this happens?

I don't want a 506C, accredited investors only, as many of the 50+ friends i have brought in wouldn't qualify especially when they were young and starting in their careers, and only had big grad school loans and not close to the >1mil net worth requirement (congress about to raise to >3mil), but they had good income and desire to invest to provide for their kids. to OP, Forest, ask people you know about RE syndications, ask CPAs who have thousands of clients, ask RIAs registered investment advisors, who have tens of thousands of clients, a reputable GP will provide records, access to other investors, allow you to come to shareholders meetings, will explain their compensation, will talk w you about Deals that went bad or didn't perform up to expectations, believe me we all remember every detail of those and will explain why and what they learned from it.

Fees are very reasonable, and they do a nice job of explaining the inputs.

A few posts on this thread but nothing that really explains if the app holds any real value or not.  

It counts the same, legally, as if you built a fort on the land and put armed guards in the fort to keep intruders off.Possession and ejectment issues are beyond my ability to explain in just this post, because it takes too long. 

If you do go that route, be careful not to hold yourself out as the GP, or at least clearly explain the roll you played because there are quite a few GP's in hot water right now who at the minimum were intentionally vague about their roles creating the perception they have a track record that doesn't align with reality.

Dozens of podcasts & articles explaining the how-to's and the advantages of doing this.

Very well explained 

I'd talk to them and explain the situation and let them know what you want to do to remedy the situation.

Can you explain what an Executory Contract is and why I need to be concerned about it?