WHAT IS REAL ESTATE SYNDICATION?

Real estate syndication involves pooling capital with other investors for a common goal. In real estate, that common goal is the purchase of a real property, often with improvements, like physical buildings, structure, utilities, pads, and other improvements that you can see and touch.

WHY DO SYNDICATE REAL ESTATE?

The biggest reason investors participate in real estate syndication is access to more deals. Not every investor has the time to search and underwrite hundreds or thousands of properties to find that diamond to acquire. By getting involved through real estate syndication, investors have access to increased deal flow as well as the ability to invest in real estate without having to directly manage the property.

WHO IS INVOLVED WITH A REAL ESTATE SYNDICATION?

(1) The “Syndicator” or “Sponsor”.

This is the individual or company in charge of finding, acquiring and managing the real estate. They typically have a history of real estate experience and possess the know-how to underwrite and perform diligence on the property.

(2) The Investors.

These are the persons who invest and own an interest in the real estate along with the syndicator. They get the benefits of property ownership but are not involved with acquiring the property, arranging or guaranteeing financing, and managing the property.

In some case there may be other parties to the deal, such as a joint venture (“JV”) or equity partner. This JV partner typically has access to its own pool of investors and may serve as a conduit between syndicator and investors. This JV partner may also assist with reporting, communications, and tax documentation.

If you would have a deal you wish to syndicate, or if you are an investor and would like to be included on our deal flow distribution list, please fill out the form on our contact us page here: