Typical structure: 70/30 LP/GP split after an 8% preferred return. Regulated by SEC (Reg D 506(b) or 506(c)). Common for 100+ unit multifamily.
Investing Strategy
Syndication
A group investment where a sponsor raises capital from passive Limited Partners to acquire and operate real estate.
More in Investing Strategy
- BRRRR Method— Buy, Rehab, Rent, Refinance, Repeat — a strategy to recycle capital by pulling equity out …
- Fix and Flip— Buy distressed, renovate, sell within 6–12 months.
- Buy and Hold— Purchase rental property and hold long-term for cash flow, appreciation, and tax benefits.
- Wholesaling— Contract a property below market and assign the contract to an end-buyer for a fee.
- LP / GP Split— The waterfall dividing profit between passive Limited Partners (LPs) and the active Genera…
- Preferred Return (Pref)— An LP's first-dollar return threshold — usually 6–9% annually — that must be paid before t…