Confusion regarding lingo in RE Development, what is the difference between Sponsor and Investor?
Hello, I am on my own studying about re development and this question might seen silly, but what us the diference between sponsor and investor in terms of real estate development?

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The investor puts in the money, so the sponsor is the RE developer?
[{"id": "efbq4s4", "text": "A sponsor is the developer, the investor could be a HNW individual. You should check out [wallstreetoasis.com](https://wallstreetoasis.com), it's great for real estate questions and more geared toward that than this sub may be. They also have lists of textbook on there to learn from, a very popular one is Peter Linneman's textbook. The real estate section on there is \"RE\", read through some posts and get a feel for it.", "replies": [], "depth": 1}, {"id": "efbq9u5", "text": "In a joint venture, the sponsor is the GP (general partner) and the \u201cinvestor\u201d is likely the LP (limited partner). \n\nThe sponsor is the managing member, and typically makes most of the decisions / runs the process. \n\nIn most structures, the GP gets some sort of disproportionate profit (a \u201cpromote\u201d) if the deal outperforms. ", "replies": [], "depth": 1}, {"id": "efbrlm7", "text": "Sponsor = Lead Investor, who is ultimately responsible for the property. \"Investor\" is a broad term - can be interchangeable with Sponsor if there are no equity partners. It can also mean a joint venture partner, a Limited Partner (LP), or even a Mezz lender.", "replies": [], "depth": 1}, {"id": "efe238o", "text": "**Sponsor Is The Active Party**\n\nA **real estate sponsor** is the investment manager responsible for finding the deals, financing the transaction, performing the financial and risk analysis, and ultimately closing the deal. After the transaction is closed, the real estate sponsor is tasked with executing the investment strategy and reporting to the investors. The sponsor also decides when the right time to sell the property is.\n\nA typical sponsor will typically invest anywhere from 5%-20% of the overall equity requirement.\n\n&amp;#x200B;\n\n**Investor Is The Passive Party**\n\nA real estate **investor** invests with the real estate sponsor and plays a passive role compared to the active role of the sponsor listed above. The investor's role is to provide equity for the deal. In return for providing equity, should the deal perform, the investor would participate in any cash distributions during the hold, and any appreciation from the sale of the property, as laid out in the Operating Agreement, provided by the real estate sponsor. \n\n&amp;#x200B;\n\nIf you're a passive investor, as you can see, you are putting a lot of trust in the real estate sponsor.  This is why passive real estate investors put a ton of emphasis on the due diligence of the real estate sponsor before investing.\n\n&amp;#x200B;\n\nHope this helps! Real estate jargon can get a bit confusing! ", "replies": [], "depth": 1}, {"id": "efft2ql", "text": "thank you all for the help!", "replies": [], "depth": 1}]