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Updated almost 3 years ago on . Most recent reply

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43
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Chase Gu
  • Investor
  • Sterling, VA
3
Votes |
43
Posts

Question about multi-family syndication

Chase Gu
  • Investor
  • Sterling, VA
Posted

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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1,473
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1,993
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Omar Khan
  • Rental Property Investor
  • Dallas, TX
1,993
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1,473
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Omar Khan
  • Rental Property Investor
  • Dallas, TX
Replied

@Chase Gu

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.

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