Malvadesign

The goal is to earn profits and capital gains for the limited partners and make the business grow. Goodman and Bloch provide us with an example of a firm with a proven expertise in developing commercial real estate that became the general partner of a real estate limited partnership.
The general partner, with its experience in constructing and leasing apartment buildings, retail stores and industrial warehouses, sets out to solicit several brokerage companies to sell its business package to their clients. After verifying the superb performance record of the limited partnership, the brokerage firms decided to spread the word around and started selling the limited partnership to small investors who expected to see their capital grow when the real estate projects chosen by the limited partnership are completed and sold after a few years. While waiting until these properties are sold at higher prices, the investors will get sustained earnings from the leases of these real estate holdings. The limited partnership then closes the partnership to new investors when it earns substantial profits and diversifies its investments in other parts of the country, including a row of retail shops, an office tower, an apartment complex, a commercial apartment complex and an airport maintenance facility. The firm designed its partnership to protect the limited partners against loss and, at the same time, to give them substantial capital gains. When the values of the real estate investments have considerably appreciated in value, they will be sold and the profits will be distributed to the partners.