The general partner, or sponsor, is the active operator of a real estate syndication: the party that finds the deal, underwrites it, arranges financing, raises capital from limited partners, executes the business plan, and manages the asset through to sale.
Log in to followI work mostly on the debt side, so when someone hands me a deal the first question I ask is what happens if it goes badly rather than what happens if it goes well. Track record is…
I'm nowhere near doing this, I just wanted to see the GP economics from the inside instead of reading about promotes in the abstract. So I built a fake deal and paid myself in the…
Closed 2021, 188 units, bridge debt, a business plan that needed rents to keep doing what they'd been doing. I read the operating agreement before I wired, which is my whole thing…
Three years ago I put $50k into a 96-unit apartment deal, which was most of what I'd saved toward my own first purchase. I chose it because the sponsor's materials said 27 deals c…
I've been building the sponsor side of a small deal on paper to see whether the first one is even reachable, and the pre-close spend is the part I keep getting wrong. What I have…
I've been an LP in other people's deals for years and this was the first one where I was the sponsor, meaning I found it, underwrote it, signed the loan and answered the phone whe…
A co-GP agreement came across my desk for a $12M multifamily deal. The offer is 30% of the promote in exchange for introducing investors up to a $4M raise. No asset management dut…
A sponsor I've managed for over four years wants me inside the GP on his next one, a 112 unit two-property portfolio, 9.1M all in, 3.2M equity. My side would be asset management:…
I spend my days on the debt side and I'm now looking at going LP in a deal from a borrower I've financed before, which is a different seat than I'm used to. Numbers: $40M purchase…
My balance sheet is done. 11 units across four small deals, all cash flowing, all levered as far as any lender will go on my income. The next deal I want is a 38 unit at 4.2M, 198…
Reading a 190-unit value-add LPA this week. The waterfall pays promote on a deal-by-deal distribution basis, meaning the GP takes 20% above an 8% pref as cash flow comes in, and t…
Working through a 128-unit heavy value-add where the plan is a 24 month reposition, agency refi in month 30, then hold to year 7. Purchase 14.2M, 3.9M of capex, all-in basis aroun…
I asked to see documents on a deal a friend's family is in, mostly to practice reading them. 240 units, $34M purchase, $12M equity, five to seven year hold, $4.8M of hard costs in…
Purchase $18.2M, 152 units built in 1984, $3.1M of capex over about 30 months. Total equity $6.9M with $500k of that mine. Waterfall is 8% pref, 70/30 to a 13% LP IRR, then 50/50…
I'm slow about decisions and I'm three deal decks deep into comparing two sponsors who want money from me for roughly similar 100 to 150 unit value-add plans in similar markets. T…
I've been looking at the lending side rather than owning, and eighteen months ago that looked like an easy way in. A sponsor I'd met at a local meetup had a 96-unit under contract…
I'm going through a subscription package for a 96-unit deal and the sponsor's own documents use two different words. Page 12 of the PPM describes a "20% promote to the Manager." T…
Under contract on 64 units, 1983 vintage, two-story garden walkups in a secondary southeast submarket. Where the numbers sit today: Purchase 6.4M (100k a door) Reno 1.12M (40 clas…
An operator I've been following wants me on his next deal, after six months of research and nothing to show for it. 84 units, 7.8M, he's raising 2.6M. He's done five deals, two of…
Signals that are cheap to fake make me suspicious, and "the GP is co-investing alongside you" is starting to look like one. Two decks on my desk this month both lead with it. One…