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What Documents Are Needed for Real Estate Syndication?

Investing in a real estate syndication can seem overwhelming whether it is your first time or fifth time. As an alternative investment, real estate investing takes a bit more work than just clicking a button and buying a stock in your brokerage account.

What is a real estate syndicate?

If you are new to real estate in general, you may be wondering “what is a real estate syndication?” “Are real estate syndicates a good investment?” A real estate syndication in simple terms is an investment vehicle (typically a limited liability company) that allows investors to pool capital together for the purchase and management of an investment property.

By using this group investment method, investors can make larger purchases and make better risk adjusted investments than they could make on their own. Think about it this way; if you have $100,000 to invest – would you rather 1. invest all of that in one investment that leaves you exposed to lose all your money or 2. would you rather make 10 different investments of $10,000 that are with other experienced investors. In the second option you are protected if one investment completely fails the gains in the other 9 investments will offset that loss.