Syndication

Advanced 🏠 Real Estate

Definition

The process of pooling capital from multiple investors to acquire or develop a property, with returns distributed according to investor agreements. It's how real estate projects get funded when one person doesn't have $50 million lying around.

Example Usage

The apartment developer created a syndication offering to raise $20 million from accredited investors.

Origin

From 'syndicate' meaning a group formed for a common purpose

Fun Fact

Real estate syndications are heavily regulated by the SEC as securities offerings—leading to complex legal structures and expensive compliance costs.

Source: Real estate investment and securities law

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