Wayne Courreges IIIManaging Principal, CREI Partners, CREI Partners, CREI Partners, LLC · Disciplined Passive Real Estate. Transparent Leadership.

Structure of LLC in a Real Estate Syndication

Name: Structure of LLC in a Real Estate Syndication
Uploaded: 2024-06-03T19:04:16+00:00
Duration: 1 min 7 s
Channel: Wayne Courreges III
Description: This content was created by Wayne Courreges III, CPM®. This content was uploaded by Wayne Courreges III, CPM®. This is an excerpt from a YouTube video…

3 Jun 2024 · 1 min

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This content was created by Wayne Courreges III, CPM®. This content was uploaded by Wayne Courreges III, CPM®. This is an excerpt from a YouTube video titled "Structure of LLC in a Real Estate Syndication" (created 2024-06-03). It contains a single-speaker explanatory segment about real-estate syndication and LLC structure: describing the sponsor/syndicator as the general partner who operates the property-owning LLC, outlining typical income sources (rent, storage, laundry, late fees), typical expenses (property management salaries, repairs, utilities, taxes, insurance), how NOI is calculated (revenue minus expenses), and the distinction between active general partners (sponsors) and passive limited partners (investors).

Chapters

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.