Sponsor
The person or firm that finds the deal, raises the money, and runs a syndication. Also called the general partner. Usually earns a share of profits above and beyond their invested capital.
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Part 1 of 4
Why a seller cares
The sponsor finds the deal, raises the money and runs a syndicate; if one is buying your building, they are the person whose record matters. Ask what they have closed, not what they have offered.
Part 2 of 4
A simple example
A sponsor with six closed apartment deals offers on your building through a new LLC. Their track record, not the LLC's, is what the offer rests on.
| What to look at | Why |
|---|---|
| Deals the sponsor has closed | Whether they can raise money and close |
| The deposit | Their skin in the game before the raise |
| The closing timeline | Whether it fits a raise and a commercial loan |
The sponsor is the syndicate's reputation. The LLC is a wrapper.
Part 3 of 4
What people get wrong
That the LLC's name on the offer is the buyer. The buyer is the sponsor's ability to deliver the money the LLC does not yet have.
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
In your Room, this word explains itself where it appears.
Your Room defines sponsor in the step you meet it in, beside the document or the date it belongs to. Free to set up, with an agent or on your own.
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