I have seen many GPs, LPs, multiple member LLCs, etc., get to the exit strategy point and all want to go their separate ways via a 1031 exchange and these entities create exit strategy problems.

[I have purposefully limited the LPs in my example to one, but in practice, I see this being several based on the various partnership you may choose to form]C-Corp - Management Company - Stock owned by individual [self/family/ira].

It’s money well spent - protecting both the GPs and the LPs. 

.- The sponsor is putting in a material amount of equity alongside LPs and are open and upfront about the amount.

Hi @Matthew McGoldrick,There are quite a number of people on here that are LPs, and a good number of well-respected GPs.

The LPs own Class A shares and are paid on a preferred basis.

Hey there, I'm a Florida commerical real estate agent and have been officially working in real estate for a few years now.
I worked in property management for a bit when I was barely 16.
Many investors and institu...

@Chris Seveney @Justin Moy Is there anyway LPs and KPs could take more control over the situation?

:-)Completion guarantee secured by bonds are 99% off the time a requirement for LPs and lenders in the US, but the end buyer is not covered directlyIn Europe developers must often deliver a completion guarantee to the buyer if the property is pre sold as payments are made in installments along the construction process.

LLCs, LPs, etc).