What Is Real Estate Syndication? How It Works, Benefits & Drawbacks

Owning real estate for investment purposes can be a great path to wealth. Depending on the property, it can generate predictable cash flow, capital gains and provide tax benefits.

[{"selector":"#anim-d59a7b07-c765-434e-82eb-079ef2e4da09","keyframes":{"opacity":[1,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] [{"selector":"#anim-27bccf65-b7a5-4eb7-81af-e8d526805505","keyframes":{"transform":["scale(3)","scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] Read more

Besides being lucrative, real estate investing can be a hedge against inflation and an excellent way to diversify your investment portfolio.

[{"selector":"#anim-e7089653-764b-4abc-bdba-dcf159d194f0","keyframes":{"opacity":[1,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] [{"selector":"#anim-3f0e9174-ba58-45a7-99e8-33830e16f2fa","keyframes":{"transform":["scale(3)","scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] [{"selector":"#anim-f4c611fb-d36c-475f-9bc6-e6e0e11d46af","keyframes":{"transform":["translate3d(-133.73983%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-e821675d-1c80-41f0-8823-fce1518f8e33","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-8d4b91e7-b0f9-4cf7-a0f2-afde4d6570e0","keyframes":{"transform":["scale(0.15)","scale(1)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"forwards"}] [{"selector":"#anim-6badfdc8-df87-4710-ab93-a32f9d76e23d","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] Read more

There are several ways to invest in realty, from purchasing Real Estate Investment Trusts, rental single-family or multi-family properties, flipping houses, building an investment property, or joining a real estate syndication.

[{"selector":"#anim-6761b841-1b50-46e5-a6b8-ddc06bb20d84","keyframes":{"opacity":[1,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] [{"selector":"#anim-4e9ed6fa-dab1-4c8f-aad6-03e975a558fa","keyframes":{"transform":["scale(3)","scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] [{"selector":"#anim-c9a45f7e-1cc0-4319-97d4-a48e6b31b750","keyframes":{"transform":["translate3d(-133.06451%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-bec70595-b0ce-4ef7-8b1b-469dd1988f92","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-148f6ee0-63a3-4dbb-98be-d58ad2b27277","keyframes":{"transform":["scale(0.15)","scale(1)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"forwards"}] [{"selector":"#anim-ca0870f7-2c55-4c18-8f3c-fad7b63e033f","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] Read more

What is Real Estate Syndication?

[{"selector":"#anim-24950edc-a0d3-4065-ba5a-1ca7a0dcc3b2","keyframes":{"opacity":[1,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] [{"selector":"#anim-2995d487-148a-432d-a64b-38e870c3ca89","keyframes":{"transform":["scale(3)","scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] [{"selector":"#anim-cf634038-020c-4656-b2e7-2c95bd530ff5","keyframes":{"transform":["translate3d(121.03448%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-6858fc2e-71c1-4b08-ac4e-20254ab6ebbb","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-932613e9-ffff-483d-983e-9641980c2d92","keyframes":{"transform":["scale(0.15)","scale(1)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"forwards"}] [{"selector":"#anim-6a57a671-ec58-48d1-bb29-e174cf55fa34","keyframes":{"transform":["translate3d(-133.73983%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-3cc7c5bc-a67e-47d6-b95b-fbd9923251f8","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-269d09fa-d961-4d46-8c5e-aacca345e89a","keyframes":{"transform":["scale(0.15)","scale(1)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"forwards"}] [{"selector":"#anim-ff5bb447-90b9-470c-b18e-13e6a2a8e925","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] Read more

Syndicators are sponsors of the real estate syndication, organized as a Limited Liability Company (LLC) or partnership.

[{"selector":"#anim-412cc0bc-8778-49a5-aec1-95d3f606a1f2","keyframes":{"opacity":[1,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] [{"selector":"#anim-59dd4d98-de15-4f4b-b70a-f1582d411967","keyframes":{"transform":["scale(3)","scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] [{"selector":"#anim-47fcb7d2-9f80-4e94-ae15-396339087831","keyframes":{"transform":["translate3d(-142.10526%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-416938b6-076f-4a09-855b-8b1bb4b1b401","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-47bc4721-8445-491a-a233-12b3b8753041","keyframes":{"transform":["scale(0.15)","scale(1)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"forwards"}] [{"selector":"#anim-6785e03c-18f8-4915-b79d-2060a54f9a37","keyframes":{"transform":["translate3d(130.03952%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-31b3a479-8ce0-4db2-b151-083ab0296461","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-86fe4f41-91b0-4461-a17f-aca9f1df8e95","keyframes":{"transform":["scale(0.15)","scale(1)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"forwards"}] [{"selector":"#anim-a648a929-128f-4291-a2fb-0921f8f39045","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] Read more

By financing the capital, passive investors or limited partners receive proportionate ownership interests and get monthly or quarterly income distributions from the rental income of the asset as part of their return on investment.

[{"selector":"#anim-98ac9713-283b-48f0-8379-e443f86d5bd0","keyframes":{"opacity":[1,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] [{"selector":"#anim-4ae59758-6a74-43be-b562-5ea1bd804803","keyframes":{"transform":["scale(3)","scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] [{"selector":"#anim-391647df-3be3-43da-97fe-33a8f2828480","keyframes":{"transform":["translate3d(127.48092%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-d57d37cd-0684-4996-9db3-30be8d22e31c","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-c6aed735-93ca-4445-afd4-861291bc2a89","keyframes":{"transform":["scale(0.15)","scale(1)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"forwards"}] [{"selector":"#anim-1c0e61a7-fdba-473a-aa60-c675b9d2767d","keyframes":{"transform":["translate3d(130.46875%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-e02bfd9d-9518-4a11-84e9-d6d5dea01b68","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-96473d2d-d2bc-4d74-a499-240f37ae973e","keyframes":{"transform":["scale(0.15)","scale(1)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"forwards"}] Read more

1. Passive investing is free from burdens from tenants to fixing things like toilets. 2. Receive potential capital appreciation from the sale of the real estate project.

[{"selector":"#anim-ee74ccdc-1773-4687-9ba9-5cc96bac26c6","keyframes":{"opacity":[1,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] [{"selector":"#anim-7eb32f60-e85a-4e6d-b692-5cdd166a95bd","keyframes":{"transform":["scale(3)","scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] [{"selector":"#anim-f5f11750-b353-4251-bd5b-43d0846ce8bd","keyframes":{"transform":["translate3d(-131.37256%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-860ba95c-09c8-4e58-b1cb-d9a73b68e370","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-6312b085-8680-4469-a51d-0ff5b11bffca","keyframes":{"transform":["scale(0.15)","scale(1)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"forwards"}] [{"selector":"#anim-e054ade9-7c3c-4207-b1a1-33dcdc708f00","keyframes":{"transform":["translate3d(133.99208%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-a66b684b-9510-4b75-b746-b0c663237206","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-f1ca0ed5-eb11-4bdd-87ae-603dccd7e879","keyframes":{"transform":["scale(0.15)","scale(1)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"forwards"}] [{"selector":"#anim-c79df7de-d91d-4861-a752-2a518a7f7679","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] Read more

3. Investors can choose specific properties offered by GPs or through crowdfunding opportunities. 4. Receive income distributions.

[{"selector":"#anim-427bb4d6-fbcd-4b95-b9d7-788e92daafc8","keyframes":{"opacity":[1,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] [{"selector":"#anim-5e3615f6-50a2-481f-a6d8-4f635a0a9923","keyframes":{"transform":["scale(3)","scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] [{"selector":"#anim-2e78f54a-3031-4846-9764-3bf3021330a4","keyframes":{"transform":["translate3d(-126.10294%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-2abcc402-545e-4713-9401-0c8481c0c759","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-83ec85cd-9adf-4ee1-85d0-00746b5f32a0","keyframes":{"transform":["scale(0.15)","scale(1)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"forwards"}] [{"selector":"#anim-45010d5b-dd5e-42ac-afa5-81705e53751c","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] Read more

Swipe Up To Read More

[{"selector":"#anim-28d7eda3-23db-4538-b962-bd1f07dc2381","keyframes":{"opacity":[1,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] [{"selector":"#anim-c3f70d2d-da6f-441a-96d1-a8e3786432e9","keyframes":{"transform":["scale(3)","scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] Read more

What Is Real Estate Syndication? How It Works, Benefits & Drawbacks

Owning real estate for investment purposes can be a great path to wealth. Depending on the property, it can generate predictable cash flow, capital gains and provide tax benefits.

Besides being lucrative, real estate investing can be a hedge against inflation and an excellent way to diversify your investment portfolio.

There are several ways to invest in realty, from purchasing Real Estate Investment Trusts, rental single-family or multi-family properties, flipping houses, building an investment property, or joining a real estate syndication.

What is Real Estate Syndication?

The structure of real estate syndication consists of two groups: syndicators and investors.

Syndicators are sponsors of the real estate syndication, organized as a Limited Liability Company (LLC) or partnership.

The Syndicators

By financing the capital, passive investors or limited partners receive proportionate ownership interests and get monthly or quarterly income distributions from the rental income of the asset as part of their return on investment.

Passive Investors

1. Passive investing is free from burdens from tenants to fixing things like toilets. 2. Receive potential capital appreciation from the sale of the real estate project.

Benefits of Real Estate Syndication

3. Investors can choose specific properties offered by GPs or through crowdfunding opportunities. 4. Receive income distributions.

Swipe Up To Read More

Read More