In today’s economy, there are no sure investments.
Many investors have been stunned by steep losses in the stock market and real estate and have moved their money to safe investments like CDs and money market accounts.
As the economy begins growing again, many investors will start looking for investments which minimize their risk and chance of loss.
One way to minimize risk and yet still take advantage of the historical trend toward increasing real estate values is by using real estate syndicates to invest in larger properties which spread out risk.
A real estate syndicate is an unofficial term used to describe a pooled real estate investment group.
In a nutshell, it is the process of combining capital from a group of investors to purchase real estate.
Real estate syndication allows a group of individuals to combine private savings to purchase larger real estate investments for which other financing is not available.
This method of real estate investing has been a popular method of financing the purchase and sale of commercial properties such as shopping centers, office buildings and warehouses.
Every real estate syndicate is different, and dictated by the terms of the agreement which is drafted to define the purpose and powers of the syndicate. Typically these real estate investment vehicles are structured using some form of partnership agreement or limited liability company (LLC).