All Forum Posts by: Spencer Gray

There have already been a few good definitions and points, but I wanted to add some more context.

Most of these terms at one point in time had a very specific meaning usually related to how the active investor who would be responsible for executing the investment, or guaranteeing a loan, or sponsoring a securities offering, etc is described in a legal document or legal term related to how an entity is incorporated and structured. Since their inception, newer structures have emerged and terms have been mixed up and like others have said have become somewhat interchangeable. Still, some do have specific legal definitions. 

For example, the terms LP and GP come from partnerships structured as Limited Partnerships or "LP's". While LP's are still around, LLC's are now the more widely used and preferred partnership structure. In LLC's, however, there is no LP and GP, there are Members and Managers / Managing Members, but passive investors investing in LLCs are still referred to as LPs. In an LLC, instead of a GP member, a single purpose and separate LLC is created and acts as the Manager or Managing Member, but is referred as the GP by most.

You will see "sponsor" more in SEC filings and loan agreements. Syndication you'll see in SEC docs, but has only been more widely used to describe commercial real estate partnerships in the last decade or so post JOBS Act in 2012. 

I agree with @Evan Polaski on the term operator. There's less legal definition, but if you're only raising capital and not making any decisions in a project then you may be a GP, an owner, a sponsor, and syndicator, but not an operator. 

Welcome @Michael Gallagher. 

What kind of opportunities are you looking at this year? Are there any specific markets/strategies that stand out? 

Turn that part of your brain off for a minute, take a leap of faith. 

$200M in cash flowing multifamily acquisitions. 

What are you using the cap rate to measure?

Cap rates today are significantly decoupled from projected return due to inflationary pressure. They do act as a good barometer of market sentiment. I suspect cap rates will become a more relevant KPI in the future once growth slows. 

We like using Hubspot, it's pretty flexible. 

Are you getting a mortgage? Typically your lender will schedule a series of inspections, (physical, environmental, etc) they'll have a few that they have worked with in the past. Or they will have you choose and scheduel from an approved list. Either way, your lender will be able to help you. 

@Liza Leif any interest in offloading your properties? 

(sorry I couldn't help myself)

Just keep in mind that if you make your offer is contingent on seller financing your offer will not be very competitive in a very competitive market. 

It's more likely in an off-market deal. 

You bet, @Eugene Reamico .