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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