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Overall Syndication Life Cycle Explained


You may understand what your role is in a real estate syndication as a passive investor but there is still some fog about what exactly happens in a real estate syndication. You may be thinking “what are the active investors doing and why are they charging fees for that service?” Or, you may be wondering “what happens before I get presented an investment opportunity?”

Knowing the overall real estate syndication cycle is important as it gives you the big picture of what is happening during the deal. As a beginner investing in real estate syndications this is important information. If you understand the full cycle, you can clearly identify what part of the cycle the syndication is currently in and appropriately adjust your expectations and actions to be in line with that phase of the cycle.

So, what are the overall phases of the real estate syndication cycle? The phases of a real estate syndication cycle are split into 2 major sections – The Assessment of the investment opportunity (steps 1-4) and The Operation of the property (steps 5-7). Passive investors join the cycle at step 3. The phases of a real estate syndication cycle are as follows:

  1. The Deal Sourcing

  2. The Discovery

  3. The Offering

  4. The Closing

  5. The Business Plan – Stabilization

  6. The Business Plan – Post Stabilization

  7. The Exit