There are a lot of different documents you typically sign before getting involved in a real estate investment opportunity as a limited investor. Today, I’m going to specifically talk about four documents that investors sign when they’re about to take on a new property.

Hey, there! It’s Billy Keels with KeePon Cashflow. I’m back once again to share some tips and strategies that will help you make more money. They will help you have more control over your free time and ultimately live with less stress. If it’s your first time here, I’m going to ask you to please subscribe to our channel. If you find value in this blog post, please like, share, and leave your comments below.

You’ve probably heard me talk about the differences between a limited partner and a general partner, but I want to talk about the documents you’ll typically sign as a limited partner in a real estate transaction. Like always, I want to encourage you to talk to your tax and legal professionals to make sure the documents I’m talking about are relevant to you and the opportunity you’re looking to invest in.

More than anything, I just want to share my own experiences with you, having been both a general and limited partner for several real estate properties. The first document I want to talk about is called a PPM, or private placement memorandum. As simply as possible, this typically spells out all the ways you could potentially lose your money on the investment. It’s important to have your legal team review this document so everything is clear about the different risk you’ll be taking in an investment.


The second document is called an OA, or the operating agreement. This one spells out the different responsibilities for the general partner, the person or team who will be leading the project. It also spells out the different responsibilities of the limited partner, who will be the one placing money into the deal and looking to make a profit.

The third document is the subscription agreement. This one specifically helps the limited partner because it lays out the terms of how they will be paid.

The fourth and final document is called the accredited investor questionnaire. I’ve had to fill this out a number of different times, but it’s also dependent on which type of opportunity you’re investing in. A 506(b) is typically for sophisticated investors, of which you can have up to 35. A 506(c), on the other hand, is for accredited investors only. Again, it’s important to talk to your tax advisor and legal counsel so you can make sure you’re looking at the right documents.

So, those are four of the main documents you’ll need to look at as a limited partner. How familiar are you with them? Is this the first time you’ve heard of them? Leave a comment and let me know! I’d love to continue talking about this.


As many of you know, I work for a large multinational company while also building my own company over the last five and a half years. I’ve been focused on real estate, real estate investing, and bringing value to investors. I talk about all of this in an eBook I wrote. If you’d like to pick that up, just CLICK HERE.  For those of you who are serious about real estate investing, you can take a deep dive into a course I created. Either way, I’m looking forward to you being a part of our community and receiving your comments.

Thank you so much! This is Billy Keels with KeePon Cashflow. That’s my two cents for today. As always, hasta la próxima!

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