Real estate syndication democratizes access to large commercial properties by allowing multiple investors to pool capital under experienced sponsors' guidance. This enables participation in $5 million+ deals impossible to pursue independently.
Common Deal Structures
Most syndications follow waterfall structures with 8% preferred returns to limited partners, then split remaining cash flow 70/30 until LPs achieve 12% cumulative return.
Building a Portfolio
Diversify across multiple sponsors, property types, and markets. Many experienced investors target 30-40% of portfolio in real estate across 5-10 different syndication investments.