Level 3: Group Real Estate Investment Forms

Question 1

Syndicates

Answer 1

a group of investors that get together and combine resources to make investments they wouldn’t be able to make on their own

Question 2

Syndicate: Sponsor

Answer 2

known as the syndicator or the organizer, is the active manager of the endeavor

Question 3

Syndicate: Organization

Answer 3

includes the planning, acquiring property, satisfying registration and disclosure rules, and marketing processes

Question 4

Syndicate: Operation

Answer 4

the operation phase, the sponsor usually manages both the syndicate and the real property

Question 5

Syndicate: Liquidation

Answer 5

the resale of the property

Question 6

Syndicate: Joint Venture

Answer 6

investors merge their finances together for one project or venture, and, after the venture is finished, the investors part ways

Question 7

Real Estate Investment Trusts (REIT)

Answer 7

sort of like mutual funds for real estate — investors buy shares in the trust, which they can sell at any time

Question 8

REITs: Equity REITs

Answer 8

own or operate income-producing real estate

Question 9

REITs: Mortgage REITs

Answer 9

make money by buying or originating loans or mortgage-backed securities

Question 10

REITs: Hybrid REITs

Answer 10

invest in both income-producing property AND mortgages and mortgage-based securities

Question 11

Groups of Properties Visual Aid