Do the General Partners share in Partnership losses?
The General Partners receive 10% of the Partnership’s NET income and loss. This share is non-cumulative and paid monthly as earned. The General Partners receive no guaranteed income or fees. This means that 10% of any expense or loss of the Partnership is borne by the General Partners. In addition, as the Limited Partner with the largest investment, the General Partner shares pro-rata any expense or loss with other Limited Partners. The General Partners receive loan fees (points) and loan document fees paid in escrow by borrowers.
