A limited partner is somebody who invests capital into the deal but they're not a part of major decisions. They're a passive part of the deal and have limited liability which is capped at their investment amount. A general partner, they're the ones doing the work. They have full management control and unlimited liability, 100% liability for everything.
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A limited partner is somebody who's going to invest capital. They're gonna say, "I've got $100,000 or $250,000 or a million", whatever it is. They're investing their money for a return, and nothing else. They also have limited liability capped at the amount that they invested. General partners are the ones doing the work. They have full management control and unlimited liability. Examples of general partners are, people who found the deal, people who underwrote the deal, people who helped do the due diligence on the deal, capital partners, people who helped raise the money to be a part of the deal and be able to close the deal, project managers, asset managers. There's lots of different ways, but they're the ones doing all of the work. The limited partners get to sit back, relax and get the passive income while they watch these other guys do all the work. They don't even really watch, they get like, something in their inboxes that says, "Hey, we did this. Oh, that's nice. Oh, look at the money I just got." Tada! So that's really the difference between a limited partner and a general partner in a very high level overview.
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