Level 3 Chapter 3: Group Real Estate Investment Forms

Question 1

Syndicates

Answer 1

A real estate investment syndicate is a group of investors that get together and combine resources to make investments they wouldn’t be able to make on their own. Forming a syndicate is known as syndication. It’s important to note that “syndicate” is not a legal term like corporation, partnership, or trust (though a syndicate can be created as any of these business forms). Will have one sponsor, a group of investors, While syndicates can be used for something as simple and straightforward as purchasing a single-family residence, they are typically created for the financing of large commercial real estate projects, including:

Multi-family apartment complexes

Office space

Retail centers

Industrial buildings