Real Estate Syndication: What It Means and How to Invest

According to a comprehensive research study conducted by Facts & Factors, the global real estate crowdfunding market is estimated to reach $868,982 million by 2027.

What Does Syndication Mean in Real Estate?

Real estate syndication is a partnership with several investors who pool their capital and skills to purchase and manage property. It was a precursor to real estate crowdfunding and now these terms often get used interchangeably.

How Does Real Estate Syndication Work?

Real estate syndication spreads out investors’ risk and takes away a substantial amount of responsibility. For example, pretend you’ve set aside $50,000 to invest in real estate. One option would be to put a down payment on a single rental property and rent it out to one tenant.

Why Do People Engage in Real Estate Syndication?

One of the main reasons people engage in real estate syndication is that the heavy lifting is done for you. Rather than researching hundreds of properties, obtaining the ones you think will succeed, and then managing those properties, you can just sign up for a real estate syndication platform. 

Is Investing in Real Estate Syndications a Good Idea?

If you have other money to fall back on, the illiquidity of real estate syndications matters less. Minimum investment levels vary and, depending on who you work with, it’s possible to get started with much less money than others require. 

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