What is A Limited Partnership in Real Estate?
With Percy Nikora, Co-Founder
So there is a structure known as a limited partnership where there is a LP, which is typically the investor and there's a GP which is a general partner. And that is typically the sponsor. So the sponsor is the one who is making the day-to-day decisions related to that legal entity. When to, let's say, refinance the property, when to sell the property, all the key decisions are generally made by the general partner.
And the limited partners are more passive investors in that particular entity. So that's the typical structure of either a syndication or a fund that's created to purchase real estate.
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