What is a General Partner (GP) in Multifamily Investing?

In commercial multifamily real estate, there’s a language that is spoken when you are connecting with brokers, property managers and other investors in the profession. To avoid sounding like a novice, an investor must be fluent with the real estate terminology to be taken seriously. Let’s take a minute to breakdown one of those terms.

The general partner is also known as the GP, sponsor, operator or syndicator. The General partner has unlimited liability and usually a managing partner and active in the daily operations of the business. The general partner is responsible for managing the entire apartment project.

The GP leverages their relationships with their network to analyze the market, find, vet and acquire an asset, line up debt financing all before an opportunity is presented to investors. Once acquired they can leverage their expertise and operate according to the business plan.

By learning these concepts and terms, you’re separating yourself from the novice investor looking to be more active than passive. Here’s where you can learn more multifamily investing terms.