📌 4 Parts to Every Real Estate Syndication

[Justin Goodin]

There are 4 parts to every real estate syndication (group investment).

1️⃣ The Deal

2️⃣ Financing

3️⃣ Capital

4️⃣ Management

The LPs (limited partners) are passive investors and want to put their money to work by investing in safe, cash flowing assets like apartments, but may not have the time, expertise, or desire to go buy an apartment community by themselves.

The GPs (general partners) are the active investors. Their job is to do all of the heavy lifting by souring opportunities, performing due diligence, lining up financing & investors, and executing the business plan from start to finish.

The LPs have the capital but may not have a deal, financing, or the management.

However, the GPs have the deals, management connections, and the ability to get financing.

At a really high level, this is how the GPs and LPs work together to perform a real estate syndication!

What did I miss or what would you add to that list of 4 things?

[Jeffrey Donis]

Originally posted by @Justin Goodin:

There are 4 parts to every real estate syndication (group investment).

1️⃣ The Deal

2️⃣ Financing

3️⃣ Capital

4️⃣ Management

The LPs (limited partners) are passive investors and want to put their money to work by investing in safe, cash flowing assets like apartments, but may not have the time, expertise, or desire to go buy an apartment community by themselves.

The GPs (general partners) are the active investors. Their job is to do all of the heavy lifting by souring opportunities, performing due diligence, lining up financing & investors, and executing the business plan from start to finish.

The LPs have the capital but may not have a deal, financing, or the management.

However, the GPs have the deals, management connections, and the ability to get financing.

At a really high level, this is how the GPs and LPs work together to perform a real estate syndication!

What did I miss or what would you add to that list of 4 things?

 All very important! Another thing that I think it is important to clarify is the importance of picking the right market, and creating a good team of attorneys + brokers.