Is this is a new group based out of Houston?

I work with a lot of healthcare real estate groups, can you say who it is?

RE Development Fund? That really doesn't make sense. Is it an equity fund that develops? What kinds of medical projects do they do?

Your DD should be pretty straightforward, but really look at the developers success, what other projects they have or this this it, and obviously how the contracts and ownership is documented. Who owns the assets? What kind of status updates will they give you (monthly) and how can you audit it? Is your only return on sale of asset to rent? What is your pref and when is it pages? Make sure your principal is relayed first, then pref, then ownership equity.

It's really the same as any investment. How can you lose and how do you keep that from happening.

Greeze06 said:

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Make sure your principal is relayed first, then pref, then ownership equity.

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99.9% of commercial real estate L.P.s pay out in the following order:

1. Preferred Return (you should be getting at minimum an 8% here for a development deal)
2. Return of Capital
3. Residual cash flow splits (this is where you will often see IRR hurdles)

Forest Park Medical should be a cautionary tale...