What does "real estate syndication" involve?

Real estate syndication refers to a collective investment strategy in which multiple investors come together to pool their financial resources in order to purchase real estate assets, typically larger properties that would be difficult for an individual to acquire alone. This arrangement allows each investor to participate in ownership and benefit from income generated by the property, such as rental income, along with potential appreciation in value over time.

In syndication, each investor contributes capital in exchange for shares or interests in the property and may also benefit from the economies of scale that come with larger investments. This collaborative approach helps distribute risks and might provide access to investment opportunities that are otherwise unreachable for individual investors. By working together, syndicate members can leverage their combined resources to pursue larger or more complex real estate projects than they could individually manage.