What is a real estate syndication?

A real estate syndication is an incredibly effective way of raising capital for a real estate deal. It includes General partners, who do all the work and get the deal done, and then there are limited partners, which bring capital to the table. The general partners would be in charge of finding, analyzing closing on the deal, as well as taking care of the construction/contracting and management side of things.

Fees associated with syndication:

Acquisition Fee: 1–3% of the purchase

Asset Management Fee: different from a property manager. An asset manager is looking at bigger-picture problems like financial reporting, market changes, and portfolio-wide policies

Other Fees: refinance fees, disposition fees (when a property is sold), etc

GP -> puts the deal together

LP -> supplies the funds

How to Find Limited Partners for your Syndication:

• Network, build a personal brand online and in your personal market
• Get to know other investors, and go where other investors hang out

Securities and Exchange Commission (SEC):

• Responsible for the oversight of all stock trading in the U.S
• Offers several different methods