They run an illegal gambling ring in one of the company's commercial buildings.

Stay flexible.This approach helps investors move with clarity and speed—without gambling or guessing.Real estate favors the bold—but not the reckless.

People viewed it as gambling.  

They take gambles if things come in better, worse or on par with expectations.

I don't defend GPs from this, they gambled and lost LP money competing for these deals with that financing. 

oh well ya using a Heloc and being 100% levered on a real estate purchase is a huge gamble in many makrets.

The fact that this sponsor used investor money to gamble on high yield unsecured notes leaves a bad taste in my mouth.  

There's a saying in sports that the best ability is availability.

If they do not have one then it's gambling money where the pref return and the upside split to LP must be high and the investment amount must be low like 25k or something when net worth is 5 million.

Building a sport court will run like $30 grand, but would increase your rental value. a 6bedroom 4 bath house with a sport court, hot tub, fire pit, mini golf, arcade etc. will most likely crush it because it's cool.