It is simply a return threshold that needs to be hit before the GP can share in any profits above that level.  

@Gary Bonds owning a few rentals is not a business at least according to my accountant, Best to attempt to qualify using your personal income.

At first it is going to be uncomfortable, but the more reps you attempt the better you get and the more comfortable you will feel.

The quaility of old existing units, and the ability of the long term population to pay new rents, blended with an influx of small high end mill conversion units is simply not balanced.

I found simply raising rent to the max allowed is better than an eviction they move with out all the fuss  :)

What I'm seeing in the industry as a cautionary tale for you is that simply the reputation of the company is not going to necessarily carry the day.  

Sounds like great prices but 9 repairs in 12 months called in by tenant, it seems to have finally stabilized after owning for 18 months (no repair calls in 3 months so far), stolen AC unit, attempted break in on other house (alarm scared intruder away).

In short, he could simply not return the money or the profit by saying that he had reasons of force majeure, without clarifying any additional details.

I see some of the states that are still stuck in the 1800s using title abstractors taking a week two weeks.. the folks that are local simply dont know any better as its just SOP for them.

Simply making more calls doesn't guarantee money.