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.
Every term like this one lights up in the step you're on.
Free to set up. No credit card.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
One piece of your sale. Here is where all the pieces live.
In your room, this word explains itself where it appears.
Keighbor keeps your whole home sale in one place and defines every term like this one right where you meet it, in the step you're on. Free to set up, with or without an agent.