What Is a Real Estate Syndication?

Answer

A real estate syndication pools capital from multiple investors to buy a property too large for any one of them alone. A sponsor (general partner) finds and operates the deal; investors (limited partners) contribute capital passively and share in the cash flow and profits.

Syndications let passive investors own institutional-quality multifamily without landlord duties, in exchange for giving up day-to-day control. Returns flow through an equity waterfall, often led by a preferred return. See our full guide to real estate syndication for how deals are structured.

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