Entity Structure via GP LP Deal

1 Reply

Hey guys, 

Two partners and I are investing, first time investors, in a GP LP deal where we'll be committing a small amount of capital in relation to the equity being raised. My partners and I will be meeting with attorneys today to determine the best fit entity structure. I'm hoping to receive some knowledge from anyone on BP who has or know of someone who has been in a situation like this. The deal is in NJ, while my partners and I are located in NY. We will all be committing capital however, not everyone is committing the same amount. It'll take the shape of a 40/40/20 look. What would be the best entity structure for this deal alone? And a follow up would be if this were to not be the only deal we invest in, would the way we set this entity up hinder us from future endeavors (raising capital, investing in MFs, etc.)  We are hoping to use this first deal as a springboard into our goals of one day being full time real estate investors. I can tell that there will be a plethora of self education work that needs to be done but, this is a great first step. 

Thanks in advance to anyone who replies! Im looking forward to embracing this journey in real estate. #mambamentality

Andrew Walrath

 

Hi Andrew! Consult with your attorneys and with specifics to the attorney. You are already heading in the right direction as far as getting legal consultation. I would also state that make sure the attorney understands securities if you wish to further partner with your investors going forward, which it sounds like you do. Happy investing!