How do Multifamily investors make money?

[Arturo Borges]

When structuring a syndication deal geared towards apartment building acquisitions with a value-add strategy, how do General Partners make their money? More specifically, how does the smallest General Partner (1.5%-2.5% equity) makes their money? Is it a 1.5%-2.5% of the entire disposition amount? Or just the capitalization through renovations, etc. So that small 1.5%-2.5% General Partner would only make money at disposition and the percentage is based on?