What is "real estate syndication"?

Real estate syndication refers to a process where multiple investors come together to pool their resources in order to invest in real estate properties. This collective investment allows individuals to participate in larger deals that they may not be able to afford on their own.

In a syndication, the individuals or entities contributing capital are often referred to as limited partners, while a general partner or managing member typically controls the investment and manages the property. This partnership structure facilitates sharing of risks, resources, and returns. By pooling funds, investors can access opportunities that might be cost-prohibitive for a single individual to embark on, such as commercial real estate or larger residential properties.

The other options do not accurately represent the concept of real estate syndication. A legal service for property disputes does not reflect investment or profit motives. A government program for affordable housing focuses more on social policy than investment structures. A type of property auction is concerned with selling property rather than forming a collaborative investment partnership. Thus, the definition of real estate syndication as a partnership pooling resources for investment is correct and highlights the essence of collaborative investing in the real estate market.