Deal Structure

The graphic that I have created to the left shows a typical deal structure for an income producing property. The developer forms a limited partnership to allow their investors to put money into the deal without being liable for anything over their initial investment. The developer then forms their own version of this deal to limit their company wide liability to this deal alone. This type of structure is very common but it only works under the assumption that the developer is able to secure a non-recourse loan from the bank with the property in question used as collateral for the loan.