Real estate is a physical asset that generates cash flow (rents). Real estate investing is not new. Whereas the sponsor is quite active in the syndicate, investors are passive and play little role in the deal other than investing. The commercial real estate syndication sponsor is responsible for identifying investment properties, arranging the financing, acquiring the property, and overseeing the management of the day-to-day rental operations. When confronted with a listing or other opportunity to sell property requiring financing that could not be handled by a single purchaser, a real estate broker might turn Real estate licensees have been active in real estate syndication for years. The Cost to Syndicate a Real Estate Deal. The practice of teaming up to acquire real estate has a long history that goes back hundreds of years, but for most of the 20th Century it has been relatively clandestine. Real estate is one of the best asset classes to build long term wealth. Now that we’ve got past the “what is a syndication in real estate” and the “how to syndicate in real estate” part of the article, we can get into the costs and money aspect.

Basics of Real Estate Syndication. Finding a great real estate syndication deal takes time, but they are out there thanks to new online real estate crowdfunding platforms. After he grew tired of his career, Fairless went all in on real estate with a 168-unit property. In a sense, “real estate crowdfunding” – often touted as a contemporary tech-enabled disruption of real estate investing and finance – is not new either. The first logical question is about the cost of a syndication. At its core, a real estate syndication is a group investment. Real estate syndication is “crowdfunding for real estate” before crowdfunding for real estate ever existed.

What is a Real Estate Syndication?

Real Estate Syndication.

With syndication, a syndicator, or lead investor, brings together a group of investors to buy a property. Unlike stocks, real estate just doesn't go *poof* in one violent downturn. How to Structure a Real Estate Syndicate.

In the above scenario, you will form a separate, title holding entity that is also the borrower on any bank loan and sells interests to Investors (the Investor Entity). The History of Real Estate Syndication. Investors come together to pool their resources, so that they can enjoy the benefits of investing in larger commercial or residential real estate deals. Real Estate Syndication: a Brief History. Real Estate Syndication is simply the pooling of funds from numerous investors and channeling those funds into real estate projects. Real Estate Syndication is the phrase used to describe the concept of pooling the resources of and bringing together several different real estate investors in order to do a large commercial deal. In its most simple form, both syndication and crowdfunding involve pooling capital with other individuals for a common purpose or a common goal. While real estate investing is Carl’s primary focus, he specializes in advanced investment strategies such as short-term rentals, syndication structuring, stock trading, and contract negotiations. These funds can be used to acquire a property in its entirety, or these funds can be used as an equity contribution to the project in addition to a commercial mortgage, which would fund the majority of the project's costs. If you use a limited liability company (LLC) as the Investor Entity, it will be “manager-managed” with a “Manager” and “Members” as the passive Investors. Today Fairless oversees more than 7,000 units, which are worth about $900 million. He was a successful business owner before entering the field of law, and is ready to offer his expansive business and legal knowledge for your benefit.

This follows naturally from licensees’ involvement as agents in purchase and sale transactions.