As a general partner (GP) in a real estate deal, you have the authority to determine how much your limited partners (LPs) make on your deals. The question is, do you know how general partner and limited partner compensation should be handled?

In this apartment syndication school series, we will discuss how to create compensation structures for the GP and LP in a general and limited partnership.

Part 1: How to Structure GP Compensation

What you will learn:

  • The five duties of the GP and the responsibilities and ownership percentages of each

Free Resource: 

Click here to listen to Part 1.

Part 2: How to Structure LP Compensation

What you will learn:

  • The differences between debt and equity investors
  • The LP compensation structure decision tree

Click here to listen to Part 2.

Through this series, which focuses on the compensation for the general partner and limited partner, you can become more confident about how you’ll be paid in each apartment deal you oversee. Likewise, you can rest assured that your passive investors will be paid appropriately based on their financial contributions to your deal.

The reality is, a variety of payment distributions options are available and, the more informed you are about these options, the stronger your compensation structure decision will be. And the happier both you and your LPs will be.

Learn even more about general and limited partnerships in the Best Ever Apartment Syndication Book. Additionally, if you’re an accredited investor who is interested in lucrative apartment deals, reach out here.