A key step in all of this is to understand what the zoning of the property is and what is allowed.Does the current/future use of the property conform to that usage.

I have the chance to develop a 35 door BTR project that happens to be in an opportunity zone.

Just keep in mind zoning and code requirements. zoning is usually not a problem, but when a commercial is converted to residential current codes must be met which usually means two stair towers, fire separations, and sprinklers.PS: Loopnet is what I used to find my warehouse.

After inquiring with the town, it seems the chances of getting zoning approval for one unit are higher than for adding two units.

I looked into it and it just seemed to have red flags everywhere.. like most of the other "gurus" out there.

Get out of your comfort zone.

I know it needs a few things (bathroom size) revised to make it code compliant, and I will need an architect to help navigate zoning (another thing we don't do in Houston :D), site plans, elevation aesthetics and local requirements. 

I just thought the urgency for me to sign it the increasing the percent he was going to give me was a huge red flag - I'm not signing anything without an attorney reviewing it. 

On the other hand if they are a sponsor that is experienced in stopping a skin in the game, that's a huge red flag for me.c) how open to scrutiny are they?

No claim history and not located in a flood or fire zone.