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Updated almost 3 years ago on . Most recent reply
Question about multi-family syndication
Hi - I have been reading posts about multi-family syndication. I wonder how the syndication works. Are investors LPs and the syndication guy/company as the GP? I assume these syndication deal are all-cash deals? No financing involve? Otherwise, how does financing work when you have so many investors?
Thanks a lot!
Most Popular Reply
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GP = syndication team (general liability). They find, help to finance (debt and equity), manage and sell the property.
LP = investors (limited liability)
Practically, no deal is on a cash basis. The deals are structured as private securities. Hence, all LPs are members in a company that owns the asset.
Financing is obtained through lending institutions based on the type of property being acquired as well as the personal relationships/net worth of the GPs.