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. 

Yes, there are more parties involved, but for an individual LP the number of LPs is sort of irrelevant, since I am not dealing with that, and even being on the syndicators side, technology handles 90+% of the complexity, again with tracking docs, funding, ownership, etc.  

The rent during the intervening years and the proceeds of the sales will then be distributed to the LPs and GP (myself) based on agreed waterfall percentages establish in the operating agreement of the LLC for this fund.  

But not sure why LPs are not talking about their syndicators.