What is real estate syndication?

Real estate syndication is a way for a syndicator/sponsor and a group of investors to pool their time, expertise and money together to invest in properties and projects much bigger than they could afford or manage on their own. 

Role of Syndicator

The sponsor/syndicator is the person who initiates the real estate syndication; they are responsible for identifying the market, underwriting the property, securing financing, overseeing the business plan/renovations and the daily activity of the property management company, ensuring strong investor relations, and managing the asset in general.

Role of Investor

The limited partner, or investor, is the individual (or group of individuals) that provides the equity to fund the deal. They invest their money in a real estate project that is run and managed by the syndicator, and they earn a percentage of the project’s profits based on a predetermined and agreed upon rate that is split between all investors and the syndicator.