Masters in CRE

In a previous post on understanding the relationship between a GP and an LP, I touched on how the General Partner contributes a small portion of the required equity, but will generally earn a return in excess of their pro-rata contribution. In effect, the GP earns two streams of income from the property, including: 1) Their pro rata share of the investment (e.g. 10% equity contribution), and 2) A "promoted" interest in the investment returns after some return hurdle is achi

Whether you're about to do your first deal or you're part of a bigger firm that's done hundreds, chances are you're using a combination of your own capital and outside investor equity to fund your deals. Certainly, there are plenty of funds that are investing captive equity (e.g. private equity), but most developers and real estate entrepreneurs are using a mixture of LP (limited partner) and GP (general partner) equity to fund their deals. What is an LP / GP? Private equity