Legal max number of general partners

[Joshua Schoer]

Hi All,

I went to a meetup last night on multifamily here in Jacksonville and it was great.

One of the questions that came up was the not having too many partners in a deal without syndication, it becomes frowned upon legally at some point.

The problem is that under a certain number of units the scale isn't there to absorb the cost of going through a syndication, so I've been trying to put together a small group of investors interested in partnering on a multifamily deal, but don't want to get in trouble.

As a caveat, I won't hold anyone to it as binding legal advice, but in general is there a rule of thumb about the maximum number of partners in a deal that is legal?

Thanks in advance!

Josh