A limited partner is a passive investor in a real estate deal. LPs contribute capital and receive their share of cash flow and profits, but they do not run the property and their liability is limited to what they invested — the trade-off for giving up day-to-day control.
Most passive real estate investors participate as limited partners alongside a general partner who operates the deal. LPs typically receive a preferred return before the sponsor shares in profits, and report income via a Schedule K-1.
See how EagleCap structures multifamily investments for passive investors.
Get Started