Syndication

Syndication is a business process whereby capital is raised or access is made available to a single small business/inventor/creator.

Real Estate Syndication

REITs Pool / By / 02/05/2022
Real Estate Syndication

Real estate syndication is how apartment or office complexes are financed? A typical complex will have 80 to 100 units and the cost of construction will approximate $7,000,000. Where does this money come from? Your average person will think it is financed by a mortgage of some sort. Well, this is partially true, but mortgage companies will not finance 100% of the cost of construction. More like 75% maximum financing is used in constructing complexes. The balance has to come from private money. 

This is where the value of real estate syndication comes into play. The arrangement is usually a two tier relationship whereby an operating partnership is created that actually owns and operates the asset (the complex).  The second tier is a silent partner in the operating partnership. The following sections explain these two tiers in more detail.

Syndication

Phase II - Financial Analysis / By / 01/23/2022
Syndication

Syndication refers to a group of individuals or business entities working together to achieve a set goal(s). In business, the goals vary. The most common goal is to acquire capital and use the combined power of the group in exercising that capital for a better than average rate of return. 

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