What LPs Actually Want from GPs (And Why It’s Not Just Returns)

In real estate investing, returns will always matter. But let’s be honest—they’re never 100% certain. Markets shift, unexpected challenges arise, and even well-underwritten deals don’t always play out as planned.

That’s why, for many LPs, especially during the vetting process, the most reliable indicator of a great GP—and by extension, a strong investment—isn’t just projected IRR. It’s communication.

A sponsor’s ability to consistently and transparently update investors, explain the realities of a deal, and manage expectations isn’t just good practice—it’s a direct reflection of how they operate and manage risk.

So, what do LPs really value beyond returns?

1. Proactive, Clear Communication (Without the Chase)

Ask any LP, and they’ll tell you: radio silence is the biggest red flag.

  • When distributions are delayed, but there’s no explanation.
  • When property performance changes, but updates don’t follow.
  • When quarterly reports feel like an afterthought rather than an investor priority.

LPs don’t want to chase down information. They want proactive updates—not just when things are great, but also when challenges arise. Uncertainty breeds anxiety, and anxiety leads to hesitation when it’s time to invest in the next deal.

2. Context Beyond the Numbers

Spreadsheets tell one side of the story, but smart LPs want to understand the why behind the numbers.

  • What’s driving occupancy shifts?
  • How is the market moving?
  • What small operational wins signal long-term success?

For too long, the real estate industry has treated LPs as passive participants, only providing the bare minimum in updates. The best GPs elevate their investors’ understanding, helping them see beyond the financials.

3. A Sense of Partnership (Not Just a Transaction)

GPs who take a long-term approach understand that investors aren’t just capital—they’re partners. That means:

  • Acknowledging LPs as informed, sophisticated investors.
  • Giving them access to insights that go beyond compliance-based reporting.
  • Engaging them in a way that fosters trust and long-term alignment.

The GPs Who Get It Will Win

The real estate investment landscape is shifting. LPs have more options than ever, and the GPs who prioritize clear communication, transparency, and meaningful engagement will have the competitive edge.

That’s exactly why we’re building RECAP—to make it easy for GPs to deliver the investor experience that LPs actually want.