property
syndicate
A syndicate is a group of investors who pool their money to buy, develop, or operate real estate that would be too large for each to handle alone. It is a purpose, not a specific legal form, and is often organized as a limited partnership, LLC, or corporation. Interests sold to passive investors may be treated as securities and regulated under securities laws.
- Exam tip
- Remember that syndication describes pooling investors; the legal structure underneath (often a limited partnership) determines liability. Selling syndicate shares may require a securities license.
- Example
- Twenty investors each contribute $50,000 to an LLC organized by a sponsor to buy a $3 million apartment complex. The group is a real estate syndicate.
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Last verified: 2026-10-23