You can also inquire with the Trustees but that would only flag things.

Or is that a red flag?.

Usually I have learned that paying an upfront fee to lenders is a big red flag - so what's the deal here? 

There have been quite a number of red flags and warnings in this thread and many of your responses tend to be, "but what about this and this is why that is" leading me to believe you have already made up your mind that moving forward is a good idea so I wont try and change your mind but again, warn you that some things in this syndication are outside the norm and the promised rates of return (STR's in the package included) are abnormally high leading me to believe that the investors will have a much higher chance of disappointment than satisfaction.

There are several flags here since they have been deceiving you on a couple of accounts.

There were some red flags during the acquisition process but their PM team has proven to be flat out mediocre. 

While a low fund isn't an automatic red flag, it's definitely something to look deeper into.

Sellers did not allow us to get professionals in to give estimates for a french drain before closing (yes, our red flag we should have walked away with), but agreed to lower closing price. 

Are there enough red flags that I should run for the hills?

Then we need to characterize that income.