When you invest with a private real estate syndication, you are pooling your capital with that of other qualified investors for the purpose of investing in larger and more lucrative real estate projects.
This affords the lone investor an opportunity to participate with an organized group of like-minded investors in the ownership of a piece of income producing property that is too much to handle individually from a financial or risk aversion stand point.
Real estate syndicates own income-generating residential or commercial real estate and are secured by these tangible and quantifiable assets as collateral. This characteristic is untrue of many other investment vehicles and provides added security for your investment. Additionally, investing in private real estate syndicated deals gives the individual investor the ability to achieve extraordinary profits, generally, with no liability for debt.
Although the legal structure of a syndication can take many forms, it is generally accepted that a Limited Partnership (LP) or Limited Liability Company (LLC) is one of the best forms of group ownership of real estate investments. It offers all of the financial rewards and tax benefits of individual ownership without the burden of management responsibilities, liability for principal debt (in many cases), or large individual cash investments.