They are not very mobile and this neighborhood looks about the same, demographically, as it did at the time of the Race Riot of 1967 where buildings all around your property were burned to the ground.

Look at PM like homeowner's insurance- it seems like you are wasting money until your house burns down, they you'll be happy you "wasted" money on those premiums for years. 

in fact, that gets new investors burned all the time.

Dont get dirty, dont get burned by OSS team members, dont get burned by tenants, use less money to finance your deals.  

There is absolutely no need to have this extraneous and superfluous layer in the form of "Good Egg" and other companies that simply collate funds, take a fat commission and then route the money to the actual GP/Syndicator.

True off market deals take time and if you have time to burn then the driving for dollars and cold calling can find you a deal.

If you get greedy and put #3 in front of #1 or #2 you can get burned like any other market. 

They've probably been burned before. 

Multifamily is incredibly complex and if you don't understand the metrics or calculations behind it, you're going to get burned. if you're just plugging numbers in until it "goes green", you are either going to miss out on deals or buy something you shouldn't. 

Ask other LPs where they have been burned and what they learned from it.