The GP is responsible for the day-to-day management and operational duties of the real estate project. This includes sourcing and acquiring properties, securing financing, and overseeing the project’s development and operations.

Unlike limited partners, general partners have unlimited liability. This means they are personally liable for the debts and obligations of the partnership.

General partners have significant decision-making power and control over the partnership’s activities. They make key decisions regarding the management and strategic direction of the project.

GPs are actively involved in the partnership, often referred to as “sponsors” or “developers.” They ensure the project’s financial viability and handle various aspects of the investment.

While GPs take on more risk, they also stand to gain a larger share of the profits from the real estate project.

Limited partners typically provide a significant portion of the capital required for the project, often ranging from 80% to 95%.

Their liability is limited to the amount of their investment. This means they are not personally liable for the debts and obligations of the partnership beyond their initial contribution.

Limited partners are generally passive investors. They do not have a say in the daily operations or management decisions of the project. Instead, these responsibilities fall to the general partner(s) who manage the project.

Limited partners can benefit from the profits generated by the real estate investment, but they also share in the risks. The returns can be high, but so can the risks associated with the investment.

While they do not manage the project, limited partners often have certain control rights, such as veto power over major decisions, to protect their investment.

A property management company is a business that specializes in managing real estate properties on behalf of owners. Their services typically include:

• Rent Collection: Ensuring timely rent payments from tenants.

• Maintenance and Repairs: Handling routine maintenance and emergency repairs.

• Tenant Relations: Managing tenant communications, lease agreements, and resolving disputes.

• Financial Management: Overseeing the property’s budget, expenses, and financial reporting.

• Marketing and Leasing: Advertising vacancies, screening potential tenants, and managing lease renewals

A fund administrator in a real estate company is a third-party service provider responsible for managing the operational aspects of a real estate investment fund. Their duties typically include:

• Accounting: Maintaining accurate financial records and preparing financial statements.

• Reporting: Providing regular reports to investors and regulatory bodies.

• Compliance: Ensuring the fund adheres to all relevant laws and regulations.

• Investor Relations: Managing communications with investors, including capital calls and distributions.

• Valuation: Independently verifying the assets and valuation of the fund.

Asset management in real estate involves strategically managing a property or portfolio of properties to maximize their value and return on investment. Asset managers aim to optimize the financial performance of real estate investments, ensuring they generate consistent and profitable returns. This often includes:

• Sourcing Investments: Identifying and acquiring properties with high potential.

• Financial Oversight: Managing budgets, expenses, and financial performance.

• Risk Management: Mitigating risks associated with property ownership and market fluctuations.

• Value Enhancement: Implementing strategies to increase property value, such as renovations or improved leasing terms.

• Performance Monitoring: Regularly assessing the property’s performance and making adjustments as needed.

Construction management is the process of planning, coordinating, and overseeing construction projects from start to finish. It involves several key responsibilities:

• Project Planning: Developing detailed plans, schedules, and budgets for the project.

• Resource Management: Coordinating labor, materials, and equipment to ensure efficient use.

• Quality Control: Ensuring that the construction meets all specifications, codes, and standards.

• Risk Management: Identifying potential risks and developing strategies to mitigate them.

• Communication: Facilitating communication among all stakeholders, including architects, engineers, contractors, and clients.