Limited partnership
A partnership with two roles: general partners who run the deal and limited partners who invest but don't manage. Common structure for real estate syndications.
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Part 1 of 4
Why a seller cares
A limited partnership is the usual shape of a syndicate: general partners who run it, limited partners who fund it. If one is buying your building, the closing depends on the raise being finished.
Part 2 of 4
A simple example
An LP formed to buy your apartment building has raised $600,000 of the $800,000 it needs by the contract date. Closing is set for after the raise.
| The partner | What they do |
|---|---|
| General partner | Signs, negotiates, manages, and carries the liability |
| Limited partners | Put in money and take a share of the return |
| The seller's concern | Whether the money is raised by closing |
A limited partnership buys with pooled money, and pooled money has to be pooled first.
Part 3 of 4
What people get wrong
That the LP has the cash the day it makes an offer. It often raises it under contract, and a proof-of-funds request is fair.
Part 4 of 4 · where to read next
Where it appears in the sale
What a definition is, and what it isn't
Keighbor is a software company, not a law firm, brokerage, or tax adviser. This is general information, not legal, tax, financial, or real estate advice about your sale. Your situation may differ. Before acting on a contract, disclosure, title, tax, or pricing question, ask an appropriately licensed professional in your state.
Written and researched by Keighbor Research · drawn from the reference glossary · how we research and check what we publish
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