What Is a General Partner (GP)?
Answer
The general partner (or "sponsor") is the team that finds, finances, and operates a real estate deal. The GP signs on the loan, executes the business plan, and earns fees plus a share of profits (the promote) for the work and risk, while limited partners invest passively.
In a syndication the GP does the day-to-day work: acquisition, financing, renovations, property management oversight, reporting, and the eventual sale. A GP’s track record and alignment, how much of the upside is tied to investor returns, are central diligence items.
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