For example if they find a leak in the roof or something would that stimulate the HOA to repair the leak as opposed to it going unnoticed for some time?

This is where fundraising from private investors or, in the case of this deal, bringing in Limited Partners (LPs) helps to close the cash gap.

it is no secret that the majority "minority" make up the lower social class and the working class. and the top 1% of wealth is held by the minority "majority". the solution is to stimulate the businesses. 

Obviously there are many ways to structure that but based on what I've seen it would most likely be a preferred return to the LPs and a split of the profits after that. 

So even though the investment returns (and losses) go to the LPs, mismanagement by the fund manager would result in a decline in reputation and ultimately, assets under management.

LPs are passive but when you have people ready to go it makes a world of difference.

Ultimately, you'll need to speak to an attorney to get the full story.Limited Partners (LPs) in this space want you as a GP to be incentivized to do the best you can. 

Positive factors include a declining unemployment rate, monetary policy which throws everything including the kitchen sink at the problem, and generally stimulative fiscal policy as well.To wit: interest rates are so low(due primarily to loose monetary policy) that investors can obtain loans with interest rates around 3%.

The Star rating can be made up of an average across 5 ratings:1) How consistently they have made their committed reoccurring payments on time to LPs over Time.2) Overall historical track record3) How well they have communicated with their LPs4) How well and degree of integrity that they do their underwriting5) How well they manage the property or manage the manager of the propertyI think it is important that all the inputs into the star rating are applicable to all companies no matter how long they have been in business.In addition to reading what others have to say about various Sponsors it would also be great if we had a way to quickly get a list of Sponsors that users of the system can filtered by:1) Number of years in business2) Number of deal cycles (purchase through sale of property)3) Number of units owned under current company4) Offer Pref rate or not5) Min Investment required6) Target multiple over time.

To @Brian Burke's point above, if they have an established base of repeat investors and consistently find strong deals, they can look to 100% Accredited LPs for all their projects.