What is Real Estate Syndication?

by David Gerlitz on January 4, 2011

Real Estate Syndication is simply a partnership to purchase Real Estate. These partnerships can be anything from small joint ventures between 2 investors, all the way up to SEC regulated securities among dozens or hundreds of investors.

What is real estate syndication

One common format for syndications is the LLLP, or, Limited Liability Limited Partnership. This format features three common elements:

  1. A general, or managing partner, who is responsible for managing the asset and providing information about the asset to the
  2. limited partners, who are typically passive investors in the project.
  3. Their losses are limited to their investment in the project.

Some investors want to participate in syndications to diversify their equity across different properties and asset classes. Some investors are looking to pool their money with others in order to purchase an asset larger than they could obtain on their own. Others still are looking to invest some of their money in real estate but don’t have the knowledge, experience, or desire to do it alone. If you’re interested in investment property in Colorado, be sure to sign up for our newsletter and receive a copy of our free report: What kind of investment is right for you?

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