GP vs. LP: Understanding Your Role in a Real Estate Investment with BPG Holdings
- Rose Pelipel
- Apr 1
- 3 min read
At BPG Holdings, our mission is simple: Building Generational Wealth through Real Estate. One of the most effective ways to achieve that goal is through strategic and consistent real estate investing. Whether you're a seasoned investor or just starting to get real estate exposure, understanding the roles in a real estate syndication is key.
When you invest with us, you'll often hear the terms General Partner (GP) and Limited Partner (LP). These aren't just titles—they represent two distinct roles in a real estate partnership.
Here’s what you need to know.
The General Partner (GP): The Deal Driver
The General Partner, or GP, is the person or team responsible for the execution of the investment. At BPG Holdings, that’s us.
What the GP Does:
Finds the deal: Identifies high-potential real estate opportunities.
Analyzes and structures the deal: Runs due diligence, secures financing, and sets up the investment.
Manages the project: Oversees renovations, leasing, property management, and day-to-day operations.
Communicates with investors: Provides regular updates and ensures transparency.
Executes the exit strategy: Whether it’s a refinance, sale, or long-term hold, the GP works to maximize investor returns.
In short, the GP is the active partner. We do the heavy lifting so our investors can focus on building wealth without the stress of managing real estate directly.
The Limited Partner (LP): The Passive Investor
The Limited Partner, or LP, is the passive investor in the partnership. That could be you.
What the LP Does:
Contributes capital: LPs invest their money into the deal.
Shares in the profits: LPs receive a preferred return and a share of the profits based on the agreement.
Has limited liability: Your risk is typically limited to the amount of your investment.
Stays hands-off: LPs don’t deal with tenants, toilets, or turnover.
By becoming an LP with BPG Holdings, you're leveraging our experience, network, and operational expertise to grow your wealth—without sacrificing your time or peace of mind.
GP vs. LP: A Quick Comparison
Role | General Partner (GP) | Limited Partner (LP) |
Involvement | Active – manages the investment | Passive – provides capital |
Risk | Higher – full liability | Limited to amount invested |
Returns | Profit share + fees | Preferred return + profit share |
Decision-Making | Controls decisions | No active control |
Time Commitment | High | Low |
Which Role Is Right for You?
At BPG Holdings, we offer opportunities for Limited Partners looking to passively grow their wealth through professionally managed real estate deals. If you're interested in owning real estate, collecting cash flow, and building equity, while getting the same tax benefits of owning the entire property—without managing properties—we're here to help you get started as an LP.
For those with real estate experience looking to become GPs in the future, we’re always open to connecting, sharing knowledge, and exploring potential joint ventures, but know, this is something you must build a business around. Being a fiduciary for individuals capital is something that can’t be taken lightly and must have systems and processes in place in order to be successful.
Final Thoughts
Understanding the difference between a GP and an LP is foundational to smart investing. Whether you're contributing your time and expertise as a GP or your capital as an LP, each role plays a vital part in the journey of Building Generational Wealth.
If you're ready to learn more about upcoming investment opportunities or want to explore how passive investing with BPG Holdings works, let’s connect.
Interested in becoming an LP in our next deal? Reach out today and take your first step toward building lasting wealth for you and your family.
Let me know if you'd like this tailored to a specific project, investment example, or if you'd like a version formatted for email or LinkedIn!
Happy Investing!
Cassidy Burns
Founder and Managing Member
BPG Holdings
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