I try to prepare LPs that this could happen as any responsible person taking investor capital should. 

If they have skin in the game ensure there is language in the PPM that keeps that 'skin in the game' there until a refi occurs, or that the PPM does not contain language to allow the sponsor to pull his money out as soon as the deal closes before LPs can.

But there is something in this city preventing people from move out (or stimulating other people to move in to compensate those who were leaving)* In 2022 there are only two cities with a growing population Quincy and Cambridge.

75% from local bank, remainder of capital was raised from LPs & GPs using a 506(b) real estate syndication.

Some lenders may require more equity on the GP side and I’ve seen as high as 81% which can sometime be handled by an equity pledge in the event of default by the GP to the LPs.

I enjoy the mental stimulation and challenges.Curious about your reasoning behind less risk in starting a company, My current logic just comes from reviewing data comparing the percentage of businesses failing with buying vs starting out.again, thank you for the response!

With LPs we usually default to telling them late summer.

I know of a couple of instances where LPs lost 30-40% of their capital. 

An LP Limited Partnership is a flow-through to your personal name so pending on your structure you might want the GP and LPs not to be personal names for liability and tax purposes..I am not a CPA or attorney and this is not advice.. 

Think of getting there in terms of stages to navigate as you gain experience that you can sell to attract capital on your own and add values to LPs on your own.