Limited Partner (LP)

Limited partners provide capital to a syndicated real estate deal and receive distributions according to the waterfall. LPs have no operational responsibilities and limited liability.

What it means in practice

LP investments are typically passive: write a check, receive distributions, wait for exit. Most LA multifamily syndications target accredited investors (SEC-defined net worth or income thresholds). Minimum investments often $50,000–$250,000.

Why it matters for LA multifamily

LA multifamily LPs range from high-net-worth individuals seeking passive real estate exposure to family offices, fund-of-funds, and institutional LPs. Evaluating LP opportunities requires understanding the GP's track record, the deal economics, and the LP protections in the legal documents.

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