Can a limited partnership have multiple limited partners?
I'm looking for a partnership type that will allow for multiple parties to invest (potentially different amounts of money) in real estate projects. I'm in real estate development and have my own (currently inactive) LLC. I've heard of builders initiating a single LLC with a partner, then dissolving the LLC after the real estate project sells.
Yes a limited partnerhsip can have multiple limited partners. This is quite common in real estate and private equity. Typically you have an LLC that acts as the general partner which makes the investment decisions and the limited partners supply the capital.
It is important to work with a good lawyer and accountant to make sure that you have the documents formed properly, the investors are accredited, and the partnership financials are accurate. The last thing you want is a legal headache to interfere with a potentially good real estate investment.
I'm not an attorney, but yes, a limited partnership may have mutiple limited partners which is usually outlined in a limited partnership agreement or operating agreement. Typically, private equity funds set up their structure so the general partner of the LP is an LLC company and the limited partners are investors.