The term syndication is a descriptive term for a group of two or more people who combine their financial resources to achieve certain investment objectives. A syndicate is able to acquire real estate that could not be purchased by an individual alone.
A typical real estate syndicate combines the money of individual investors with the management of the sponsor. The syndication has three cycles:
Organization - Planning, purchasing property, meeting registration and disclosure rules, and marketing.
Operation - Managing both the syndicate and the real property, usually done by the sponsor.
Liquidation - Reselling the property.
