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What is a GP Promote?
A common term you here in real estate investing is a general partner (GP) promote. A general partner or sponsor is the individual or company who makes day-to-day decisions regarding a real estate investment. The GP promote goes by several terms including sponsor promote or carried interest. These terms describe a GP’s disproportionate share of profits in a real estate deal above a predetermined return threshold. In this article we’ll go over: What is a GP Promote? Real estate sponsors generally invest their own capital into a deal alongside third-party equity partners. The sponsors contribution is generally between 10-25% of the