First Multi-Family Investor Questions
As a broker offered (we think) a good opportunity, our family is thinking of investing in multi-family apartment building in Virginia as a LP . I learned only in books while I took commercial real estate class at a law school a few years ago, so I do not know much. So, I have a couple of questions:
- Is is common to have a limited partnership structure for a multi-unit property after construction phase? The property is fully leased up, and a current LP (a closed end fund) is leaving as the term of the fund is about to expire.
- If the limited partnership owns the property, what does the ownership structure look like? Is the title under the name of GP?
- The property is going to be leveraged, and what does the typical commercial real estate loan look like? Full amortization or partial?
- What protections does a LP have against a GP's misconduct? I know it is a matter of the partnership agreement that dictates the relationship between a GP and a LP(s), but just conventional terms would help me understand (or a model partnership agreement.)
- What is a typical exit plan of a LP?
Any comments would be greatly appreciated. Thanks!