Real Estate Syndication: What Is It And How Can You Profit?

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Real estate provides one of the best returns on a risk-adjusted basis among different income-producing assets. Real estate syndication offers all the benefits of real estate without needing to be involved in the day to day operations.

What Is It And How Can You Profit?

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A real estate syndication is a legal structure for individual investors to pool money together for investing in large real estate deals. The legal structure is either set up as a Limited Liability Company (LLC) or a Limited Partnership (LP).

Syndicated real estate is crowdfunding for real estate and was made possible by the Jumpstart Our Business Startups Act (JOBS) passed by Congress.

Real Estate Syndication Vs. Real Estate Investment Trust (REIT) The main difference between a Real Estate Investment Trust (REIT) and syndicated real estate is that a REIT consists of several income-producing properties bundled together like a mutual fund. Syndication usually deals with only a single investment property.

Real Estate Syndication Structure The real estate syndication structure defines who is involved. Ensure an experienced real estate lawyer creates the contract and is fair to all parties.

Who Is The Sponsor In Syndicated Real Estate? The syndicator is also known as a “sponsor.” They are responsible for finding, acquiring, and managing real estate. They have prior real estate experience with underwriting and do due diligence on real estate.

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