Real Estate Syndication Structures

Syndications in real estate are amazingly diverse in their structure so it s impossible to cover everything.

Real estate syndication structures.

Real estate syndication structure 1. It is usually created as a limited partnership lp or a limited liability company llc to own the property on behalf of investors. Real estate syndication structure. These structures can vary however and here we discuss an alternative way of arranging the sponsor investor relationship.

In the above scenario you will form a separate title holding entity that is also the borrower on any bank loan and sells interests to investors the investor entity. This is probably the easiest real estate syndication structure to understand. After all these syndications would usually invest multi millions in commercial real estate. Alternative syndication structure 95 5.

Let s start with a straight split. We ve earlier described sponsor syndicated private real estate investments and some of the more typical structures used to divide the returns between the sponsor and the investors. In general there are four components. Return of investor capital limited partners should always get paid back first and this ensures they get paid first.

What is a real estate syndication. In the past only the wealthiest and most connected individuals could participate in real estate syndications. 7 ways to organize structure a real estate syndication sterling white expertise. The final structure for investment property syndicates is a limited liability company.

Commercial real estate personal finance real estate marketing business management landlording rental properties real estate investing basics personal development real estate news commentary mortgages creative financing. If you use a limited liability company llc as the investor entity it will be manager managed with a manager and members as the passive investors. A limited liability company is a combination of a corporation and a limited partnership. Learn everything there is to know about real estate syndication with our guide.

As mentioned before the syndication may be created with a certain tax and legal structure. Real estate syndication is a way for investors to pool their financial and intellectual resources to invest in properties and projects much bigger than they could afford or manage on their own.