What is a Syndication
A multifamily syndication is a partnership where a group of investors pool their money together to purchase large assets that would otherwise be difficult for someone to acquire on their own. The typical structure consists of general partners and limited partners.
The General Partner, or syndicator, is responsible for overseeing and managing the property from acquisition, signing the loan, due diligence, renovation, and daily operations. They have full liability over the company and its decisions.
Limited Partners are passive partners who invest in a portion of the equity investment and typically are not involved in the daily responsibilities of the company and have no personal liability beyond their investment.
Stability
Unlike stocks, which can be volatile and subject to market fluctuations, real estate is a physical asset that is not affected by the same economic forces. In fact, real estate tends to appreciate in value over time, which can provide a significant return on investment.