But if they are basically trying to keep their JV partner happy by buying out the JV partner, while not financially gaining in the transaction, I would be more open to this.My concern as an LP coming in is the assumptions that are driving those returns. 

We’re building out a pipeline of efficient, SIP/steel-frame models with ADU potential, primarily for in-house rental or resale once stabilized.That said, finding lenders who understand rural land value and nontraditional build types (even when the business model is solid) has been a challenge, and that’s part of why I posted.

I don't defend GPs from this, they gambled and lost LP money competing for these deals with that financing. 

I saw a sample distribution model that had some elaborate calculation where there was a preferred dist, then a return of capital.

The syndicator raising capital from a base of 100 investors and getting compensated with “carry”, that’s more a business model.  

With a syndication as an LP, you write a check, and hold on for the ride. 

What’s that say about Grocapitus and their business model. 

Find an equity partner like Chris said, having an LP or someone else help with the cash, and you at the helm ,finding, underwriting the deal is the best relationship to have.

Hey Jessie --what other passive RE models are you referring to?

Love the mindset..CRE really is a team sport.Just to clarify, I’m not an LP in the traditional sense.