Real Estate Syndication Structures

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.

Real estate syndication structures.

In a limited liability company the owners can t be held responsible for the debt of. This is probably the easiest real estate syndication structure to understand. These structures can vary however and here we discuss an alternative way of arranging the sponsor investor relationship. As the name would suggest this deal structure uses the same split across the board for all returns cash flow as well as any profits from the sale of the asset.

In general there are four components. 7 ways to organize structure a real estate syndication sterling white expertise. In the past only the wealthiest and most connected individuals could participate in real estate syndications. A limited liability company is a combination of a corporation and a limited partnership.

As mentioned before the syndication may be created with a certain tax and legal structure. Real estate syndication structure. 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. Return of investor capital limited partners should always get paid back first and this ensures they get paid first.

Syndications in real estate are amazingly diverse in their structure so it s impossible to cover everything. How to structure a real estate syndicate. Alternative syndication structure 95 5. Learn everything there is to know about real estate syndication with our guide.

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. 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. What is a real estate syndication.

After all these syndications would usually invest multi millions in commercial real estate. The final structure for investment property syndicates is a limited liability company.