Structure of LLC, General, and Limited Partners in Real Estate Syndication

When you think of a sponsor syndicator, they're the general partner of the deal. So each property is owned by an LLC or a limited partnership. A legal entity owns that individual property. And that individual property, in all purposes, is a business. You have your income from rents and storage and laundry, late fees, all these different income sources, right? And then you have your expenses that could be the salaries for the property management, repairs and maintenance, utilities, taxes, insurance. So revenue minus the expenses is going to get you that noi. All that is being in the control and the responsibility of the the sponsor. And that sponsor is the general partner. So if you have the general partner in the LLC as the ones who are running the day to day and being responsible, then you will have the limited partners, which is where the investors who are passively investing, that's where they sit.