Posted 8 months ago The 51 Responsibilities of the General Partnership in Syndications Whether you are a passive investor who is interested in learning more about the apartment syndication process or an active investor who is interested in becoming an apartment syndicator, understanding the responsibilities of the General Partnership (GP) is vital. Passive investors should have an idea of what the GP does and how the responsibilities are split up between the members of the GP in order to qualify the syndication team prior to investing. In other words, is the GP implementing the syndication process properly and in its entirety and are the responsibilities broken up based on the unique skills and background of each member of the GP? For obvious reasons, understanding the responsibilities of the GP is even more important for active investors who are interested in becoming apartment syndicators. First and foremost, by understanding the main responsibilities of the GP, an active investor can determine which roles they are capable of fulfilling and which roles they will need to have covered by a partner or partners. I’ve broken the main tasks of the GP into three categories: (1) pre-contract, (2) contact-to-close, and (3) post-closing. Not every single GP will implement every single one of these tasks. However, these are the tasks implemented by the most successful GPs. When applicable, I will provide links to other blog posts and Syndication School podcast episodes that go into more details on a specific task. Here are the 51 main responsibilities/tasks done by the most successful general partners in apartment syndications: Pre-Contract Phase Select potential target investment marketsEvaluate potential target investment marketsSelect 1 to 2 potential target marketsCreate a websiteCreate a company presentationDefine a target audience for a thought leadership platformCreate and grow a thought leadership platformCreate an in-person meetup groupCreate a Facebook group and/pageFind, interview, and select a property management companyFind, interview, and select a commercial real estate broker/sFind, interview, and select a commercial mortgage broker or lenderFind a business partnerFind an accountant who specializes in apartment syndicationsFind a real estate attorneyFind a securities attorneyFind a loan guarantorDefine the roles and responsibilities of each member of the GPSet investment criteria for dealsSet GP compensation structureSet Limited Partner compensation structureCreate list of investor emails in Mail Chimp (or other mass email sending service)Find passive investorsBuild relationships with commercial real estate brokersSubscribe to commercial real estate brokers’ on-market email listsImplement marketing strategies to generate off-market dealsUnderwrite dealsSubmit LOI and negotiate PSA Contract-to-Close Phase Perform due diligence on the dealCreate an investment summaryAnnounce new deal to investor listPerform new investment offering conference call or webinarSend conference call or webinar recording to investorsCreate legal documents and send to investorsCreate LLCsEnsure passive investor money is transferredSet up operating bank accountsSecure financingClose on deal Post-Closing Phase Create investor guideNotify investors of closingSend monthly recap emails to investorsSend quarterly financials to investorsSend K-1 tax documents to investorsAnswer incoming questions from investorsOversee property management companyWeekly performance call with property management companyFrequently analyze competition to set rentsFrequently analyze the market to determine when to sellEnsure the correct distributions are sent on-timeOversee the sale of the asset These are the 51 main responsibilities of the GP in apartment syndications. If you are a passive investor, you can use this list to generate questions to ask the GP about their business plan, who does what, and why that person has been assigned that responsibility. If you are someone who is in the process or interested in starting an apartment syndication business, you can use this list to understand what you need to do to create a successful business and to assign each role to a member of the GP based on their unique skills and background.