Pooling money from passive investors (LPs) under an active sponsor (GP) to buy larger properties.
LPs put in capital and receive a preferred return plus a share of profits; the GP finds, finances, and runs the deal for fees and a promote. Read the waterfall before wiring money.
Example: A $50,000 LP stake at a 1.9× equity multiple returns $95,000 over the hold.
FAQ
What is Real Estate Syndication in simple terms?
LPs put in capital and receive a preferred return plus a share of profits; the GP finds, finances, and runs the deal for fees and a promote. Read the waterfall before wiring money.