My wife, son and I then moved, after 2 years of LPs, to be General Partners in large MF syndication mastermind so now we are in 13 deals, 3,500+ units, as co-GPs focused on Key Principal, At Risk Capital (EMD) and Capital Raising roles.   

So, syndicators use bank financing in conjunction with the private lenders called LPs or limited partners.

@Koshu Takatsuji There are a lot of private equity deals offering LPs 10% to 25% and more.

Rates hit all time lows after the 2008 crash when the Federal Government implemented the Quantitative Easement policy to stimulate the economy by buying $500 billion in mortgage backed securities.

The detailed answer is: you are teeing up interest and building your POTENTIAL investor network before finding a deal, but generally most LPs will not sign a sub doc or fund any money until you have the deal identified.The flip side is no brokers/sellers will award you a deal as a new sponsor, until you have the capital raised.  

If 66% of the investors cannot agree on a decision, the proposal will automatically be rejected.Please let me know if you have anymore questions,Thanks,NathanDo you understand why syndicate sponsors give so little control to the LPs?

LPs only have one deal to evaluate and have a pretty clear path on what the exit strategy is.Funds have increased in popularity and we have looked into it.

CA has minimum 800 tax for LLCs/LPs. 

Of course no syndicator says they want to scam the LPs by selling to themselves at exit.

Certainly syndications are passive for LPs and can provide good returns.