• Aaron Bonne

Roles of Limited and General Partners

In real estate syndications, you’ll find two types of partners: Limited and General. Let’s define what each is and the different roles they will play in a real estate syndication.

Limited Partners (LP’s): these are the investors, those brining equity to the deal. They are limited in both their control and liability. LP’s are only liable for the amount of money they invested into the deal, no more. They also have no control and need to have complete trust in the General Partnership team to execute the business plan and deliver on expected returns.

General Partners (GP’s): this is the team responsible for putting the deal together and seeing it through from acquisition to disposition. This is often a company (or companies) who have the experience and track record to manage this type of asset. The GP’s have a wide variety of responsibilities that include:

  • Source, underwrite, and make offers on opportunities

  • Oversee all due diligence, both financial and physical, and coordinate with professional property inspectors

  • Secure the best financing for the property

  • Work with attorneys to create the LLC and partnership agreements

  • Interview and hire property management company suitable for this type of asset

  • Raising Capital from investors for down payment, renovations, fees, etc.

  • Once acquired, responsible for overseeing the asset management, investor relations and ultimately executing on the business plan

In a real estate syndication, the day to day decision making is in the hands of the GP. They have all the control and should act in the best interest of their investors. As an LP, you’ll want to invest with an experienced team the specializes in the type of asset with a successful track record.


Schedule a call with Aaron

Connect with Us on Social Media

  • Facebook
  • Instagram

No Offer of Securities—Disclosure of Interests

Under no circumstances should any material at this site be used or considered as an offer to sell or a solicitation of any offer to buy an interest in any investment. Any such offer or solicitation will be made only by means of the Confidential Private Offering Memorandum relating to the particular investment. Access to information about the investments are limited to investors who either qualify as accredited investors within the meaning of the Securities Act of 1933, as amended, or those investors who generally are sophisticated in financial matters, such that they are capable of evaluating the merits and risks of prospective investments.