Real estate syndication is an effective way for a syndicator/sponsor and a group of investors to pool their financial resources together to invest in properties much larger than they could afford or manage on their own.  In fact, more than 90% of large multifamily transactions are made through a syndication.  Both the syndicator and the investors make money in the real estate transaction. 

Role of a Syndicator

The syndicator is the individual who initiates the real estate syndication.  Their responsibilities include:

• Finding properties
• Underwriting properties
• Raising capital
• Managing the property’s operations

Role of an Investor

The investor, also known as a limited partner, is the individual or groups of individuals that provide the equity to fund the transaction.  They have a passive role, and therefore have no active responsibilities in the transaction.  The investor earns a percentage of the project’s profits based on a predetermined and agreed upon rate that is split between all investors and the syndicator.