Syndication

Real estate syndication is a type of investment strategy that allows for multiple real estate investors to come together and put forth the financing for a real estate investment. Not only are financial resources combined in this, but also knowledge and real estate skills. Looking at the general structure of a real estate syndicate, you have the Sponsor and the Real Estate Investors. The Sponsor is typically responsible for finding a profitable investment property with a good return on investment, obtaining the financing from all of the investors, acquiring the property, and the day-to-day management after. The real estate investors are the ones who offer up the financing. So typically, a real estate syndication is active income for the Sponsor and passive income for the investors who make positive cash flow through rental income and appreciation upon a sale. Learn if setting up a property syndicate is the right real estate investment strategy for you here at Mashvisor’s Real Estate Investment Blog.