What is A Real Estate Partnership?

So let's say you want to make an investment in a property and think of it as though you have found this property with some friends or co-investors that you want to invest together in this property.

What you would typically do is create an entity which could be an LLC or LP. So the LLC is a Limited Liability Company and LP is a Limited Partnership.

So you would form one of those legal entities and that entity would then be holding that property pretty much and then different members who are investing or the different investors could have different amounts of equity in that particular entity. And there's a couple of different ways of structuring it.

You could structure it so that all of them are members of this LLC where they all make decisions together. Or you can set up a manager of that LLC and the manager is the one who's typically, like the sponsor, or taking the lead and is responsible for making the day-to-day decisions regarding that particular entity and the investment.