Definition
Syndications pool capital from multiple investors ($25,000-$500,000+ minimums) for property acquisition. Sponsor manages the investment passively.
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Syndications combine capital from investors ($25,000-500,000+ minimums) for property acquisition. Sponsor (syndicator) manages acquisition and operation. Returns include preferred returns and remaining distributions. Passive investment with professional management. Accredited investor status may be required (net worth $1M+). Securities regulations apply to syndications. Legal documentation defines all terms. Returns vary widely based on performance. Exit after 5-10 year hold period typically. Reduces individual investor burden and risk.
Pro Tip
Thoroughly review syndication documents and sponsor background.
Example
Real estate syndication pooled $5M from 20 investors purchasing a $25M apartment complex.