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What is Syndication in Real Estate?

What is Syndication in Real Estate?
by Kevyn Pitts - March 16, 2021

As an investor, sometimes there comes a time when your resources are tapped, and you've outreach the limit of how much you can grow on your own. Well, Real estate syndication is one way to get more out of what's lying in front of you - just like building up many layers will make it better able to withstand pressure from all sides!

Property syndication or Real estate syndication is basically a partnership between so many investors. They combine their resources, capital and to purchase and manage properties they otherwise couldn't afford.

There are usually two roles in real estate: the sponsor or syndicator. Let me tell you that a syndicator is also known as a sponsor. Your skills and abilities will determine which you are best suited for!

WHY DO PEOPLE ENGAGE IN REAL ESTATE SYNDICATION?

One of the biggest reasons that make investors participate in crowdfunding for real estate or real estate syndication is access to deal flow. let me tell you that not every investor has the time to search and underwrite a huge number of properties to find a gem to acquire. But there are several real estate companies all over theUS doing this for a living. By getting involved in real estate syndication, investors have access to this deal flow and also the ability to invest in property or real estate without any hassles of property management.

WHO IS INVOLVED WITH A REAL ESTATE SYNDICATION?

The first ingredient for building an investment portfolio is a "syndicator" or "sponsor." This individual or company finds, acquires, and manages the real estate. They have a history of experience in this field and be able to underwrite and do due diligence on the property with ease. The other party is investors who invest their money into these properties alongside professionals like yourself from all over North America! You will own small percentages of each project that you participate in - imagine how much time it would take to find such investments independently?

This type of partnership is an excellent way for passive investors to get into the game. Typical property owners are involved in acquiring and managing their properties, but if you want to participate without getting your hands dirty, this option works perfectly! The JV partners typically work as a conduit between syndicators and other large numbers of potential investors, making it easier for them to focus on reporting and communications, among other things that need attention.

Author

  • Kevyn was Rory's first protege and has proved himself worthy of his title as a real estate expert through his years of working in the company. He makes sure we get the latest real estate updates and shares his insight to our readers on which investments they should keep an eye on.

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