Real estate syndication is a method of raising capital for real estate projects by pooling funds from multiple investors. In a syndication, a property owner (the sponsor) seeks out investors to provide equity for a particular project or investment. The sponsor typically manages the investment, while the investors contribute funds and share in the profits.
Real estate syndications provides access to a variety of projects that an investor may not be able to access on their own. Risks are spread across multiple investors and traditional forms of financing, such as bank loans, can be avoided. This allows for a stress free investment and room for growth.
There are several types of real estate syndication, including: