Alignment of Interests
The Truth About The Need to Align Professional Interests: Want Flush Advice to Fulfill Real Estate Syndications?
Investor Alignment Starts With Shared Incentives In every real estate syndication, the general partner (GP) and the limited partners (LPs) play different but interconnected roles. The GP typically contributes a smaller share of the equity but takes responsibility for acquisition, financing and day-to-day operations. Meanwhile, the LPs contribute the majority of the capital and take…
Real Estate Waterfall Structure To Be Explored For the First Time: What Valuable Information Investors Need to Know
In commercial real estate, few concepts are more important—and misunderstood—than the real estate waterfall structure. In its simplest form, a waterfall defines how profits (and losses) are split between general partners (GPs) and limited partners (LPs). But as investors know, what sounds simple rarely is. Essentially, the waterfall should be structured as a mechanism to…