A real estate syndication is a partnership where multiple investors pool their money to invest in real estate. Typically investors are called Limited Partners(LP) and active partners are called General Partners (GP) who bring the deal together and manage the business plan. The goal is to invest in properties that are too big or expensive for individual investors to manage on their own.

The sponsor is the individual or company responsible for managing the project. They identify the investment opportunity, secure financing, oversee operations, and eventually execute the exit strategy. They often earn a management fee and a share of the profits.

These are individuals or entities that contribute the bulk of the capital but remain hands-off in day-to-day operations. They share in the returns based on their investment, typically receiving regular distributions and a portion of the profits upon the sale or refinancing of the property.

A Private Placement Memorandum (PPM) is a lengthy legal document which describes the terms, rights, the offering, usage of funds and risks. The PPM ensures transparency, helps companies comply with securities laws, and allows investors to make informed decisions.

Generally, the minimum investment is $50K.

Investor distributions differ for each deal, but most syndications provide them on a quarterly basis.