Passive investors are responsible for financing 80% to 95% of investment capital. Their main priority is flawlessly executing a business plan and giving passive investors quality returns. At the close of the deal, the syndicator is the one in charge of asset operation. To avoid mishaps, the syndicator must be good at active management to oversee the property effectively.Ī syndicator is responsible for the introduction and execution of the entire process from start to finish. If property management isn’t outsourced, the syndicator may volunteer to do the job and receive payment via returns. They work closely with the property management team and handle investor relations. Syndicators are often tasked with asset management. The syndicator also receives an “acquisition fee” for seeking out a deal. Syndicators typically provide five to twenty percent of the total investment amount with personal funds. They underwrite the deal and arrange the financing. Real estate syndicators execute the due diligence on prospective property acquisitions. Sign Up Now! Who Is a Real Estate Syndicator?Ī real estate syndicator, also known as the general partner or the managing member, is responsible for developing the investment strategy, finding investors, negotiating with the seller, and formulating a business plan. Both parties contribute differently to the syndication process.
There are two parties involved in typical real estate syndication deals: the sponsor and the passive investors. Real estate assets such as mobile homes, self-storage units, apartments, and land are available through real estate syndication. A syndication comes in handy when you’ve reached your investment limit or when you do not have enough capital to fund a new investment deal.
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