After 10 years as a broker/manager I have never heard of a fee structure as described above, but perhaps some other BP gurus will have some creative solutions if you decide to stay with a PM. 

What you are describing as a "flaw" isn't a flaw...it's a restriction or limitation based on the market you are investing in.  

It sounds like there might be waiting lists to invest with the top sponsors you've described.

:)I'm definitely no lawyer Mike but just from way you describe it, feels like you could be best served creating a new 3rd entity and do a joint venture together as equity partners in that new company.

Likewise, many investors don't know how to, or don't care to, educate the realtor, like @Brian Garlington describes (love that, btw!).  

Specifically, I'm looking at a setup very much like what is described in This IRS Publication In fact, this wording in the IRS publication is effectively (similar, but a little different)what we are planning to do: "Development Corp., a real estate developer, is a partner in a low-income housing partnership.

If you speak to the auction house they will be able to describe a typical purchase process for you.

I would agree I think are def more good deals in other sectors and a lot of the O&G stuff is as you described but I did not see the high fees and other problems here, at least not anymore than mutli-family and other stuff I have looked at. maybe Mark saw something I did not.  

I enjoyed hearing his story (as described above in his introduction to the group) & I'm impressed by what he has achieved thus far.

"Pari-pass  - is a Latin phrase meaning "equal footing" that describes situations where two or more assets, securities, creditors or obligations are equally managed without any display of preference.