-          Passive income.  Investors can earn quarterly passive income distributions from their investments.

-          Hassle-free. Investors can invest in real estate without the hassles of managing tenants or toilets.

-          Tax benefits. By owning a piece of the real estate, tax benefits are passed down to investors through their K-1 tax filings.

-          Appreciation. The value of the property should gradually increase over time, increasing the return on investment (ROI).

-          Control. Unlike real estate investment trusts (REITs) or crowdfunding platforms, investors can choose which specific properties they want to invest in.

-          Diversification. Investors can spread their capital across multiple real estate syndications.

A real estate syndication is when a group of investors pools together their capital to jointly purchase a large real estate property. The syndicator(s) and the passive investors are the two key players in a real estate syndication investment.  

Syndicator(s), also refer to as general partners (GP), are responsible for structuring and operating the real estate syndication. Their primary duties are:

-          Underwriting the deal.

-          Completing thorough due diligence on the property.

-          Arranging the financing.

-          Negotiating with the seller.

-          Building a business plan.

-          Finding investors.

-          Raising capital for the transaction.

-          Working with the property management team.

-          Asset management.

-          Handing investor relations.

Passive investors are also referred to as limited partners (LP), are providing a portion of the capital needed to acquire the property. In exchange, passive investors receive ownership shares of the property. Passive investors receive quarterly or yearly passive income distributions from the asset, as well as a return on their investment upon selling it.  

A sophisticated or accredited investor is someone who has sufficient capital, experience and net worth to engage in more advanced types of investment opportunities such as pre-IPO, art, crypto, real estate, venture capital, short-term notes, funds or other specialized asset classes.

Sophisticated or accredited investors are those who will not need to liquidate investment assets in the short term and can even sustain a loss of their investment without damage to their overall net worth.