What is a silent partner in real estate?
A silent partner is seldom involved in the partnership’s daily operations and does not generally participate in management meetings. Silent partners are also known as limited partners, since their liability is typically limited to the amount invested in the partnership.
What is a passive investor in real estate?
With active real estate investments, the investor typically owns and manages the property themselves. Passive investors don’t typically deal with properties in person and may never even see the real estate their money is invested in.
Is a silent partner legal?
Although state regulations can vary regarding silent partners, their relationship with the business and their potential liability, silent partners are commonly protected from unlimited personal liability for any debts or obligations of the partnership business.