What is meant by "real estate syndication"?

Real estate syndication refers to a partnership between multiple investors who pool their resources to invest in a property or a portfolio of properties. This collaborative approach allows individual investors to participate in larger deals that they might not be able to afford or manage independently. By working together, these investors can share the financial burdens and risks associated with real estate investment, as well as benefit from collective expertise and resources.

This form of investment structure often involves a lead investor or syndicator who manages the property and operations, while the other investors contribute capital and receive returns on their investment based on the performance of the property. This not only diversifies the investment opportunities for individual investors but also enhances the potential for larger, more lucrative projects that can yield significant profits over time.

In contrast to syndication, financing a property as a single investor lacks the collaborative advantages, while methods for property valuation and investment risk minimization are separate concepts that do not directly define syndication itself. Therefore, understanding syndication is crucial for individuals interested in participating in larger real estate ventures without bearing the full financial burden alone.