Syndications: General Partner vs. Limited Partner

[William Coet]

Hello,

Specifically wondering what advantages the General Partner(s) has compared to the Limited Partners....

Thank you in advance for any insight.

[Justin Moy]

@William Coet The GPs are active and the LPs are passive. So depending on which of those you see as a benefit, you'll likely prefer one or the other. 

Legally, the GPs take on the liability of the project including things like signing on and qualifying for loans. They also are making all the decisions on the property. 

LPs are responsible for sending their equity before close, keeping their banking info up to date in the investor portal, and checking out the quarterly updates. 

In exchange, the GPs will get more equity or potential upside per member (makes sense, they are taking on more personal liability and all the work).