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

What is the difference between a general partner and limited partner in a real estate investment?

Name: What is the difference between a general partner and limited partner in a real estate investment?
Uploaded: 2023-01-11T14:51:36+00:00
Duration: 56 s
Channel: Wayne Courreges III
Description: Wayne Courreges III explains the difference between general partners, who actively find and execute deals and risk their own capital, and limited…

11 Jan 2023 · 1 min

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Wayne Courreges III explains the difference between general partners, who actively find and execute deals and risk their own capital, and limited partners, who invest passively with liability limited to what they put in.

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Hey, good morning everybody. Today I'm going to talk to you about what a general partner is versus a limited partner. So in a syndication when we go out and buy deals we buy them under an entity whether it's an LLC or a limited partnership within that entity there are general partners and limited partners. So for passive investors that invest in our deals they are sitting in that limited partner part of the entity whereas the active sponsors, the ones that are executing the deal, finding the deal, putting up risk capital, etc. The general partnership side, what's key to note is on the limited partnership side because it's more of a passive role, it's only limited to the investment that you put into the deal. So from a loan standpoint or if there's any litigation, etc. Because you're sitting on that limited partnership side, you're not exposed to all the risks that may be out there for real estate investors. If you were going out on your own.