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What Is Real Estate Syndication? How It Works, Benefits & Drawbacks

Owning real estate for investment purposes can be a great path to wealth. Depending on the property, it can generate predictable cash flow, capital gains and provide tax benefits. Besides being lucrative, real estate investing can be a hedge against inflation and an excellent way to diversify your investment portfolio.

There are several ways to invest in realty, from purchasing Real Estate Investment Trusts (REITs), rental single-family or multi-family properties, flipping houses, building an investment property, or joining a real estate syndication.

Your choice in real estate investing will depend on the specific role you seek or want to avoid. Suppose you prefer to be a passive real estate investor as part of a group investing in one property and avoid the burdensome duties of landlords. Real estate syndication may be attractive to someone with capital who prefers to be a passive investor rather than getting involved in an investment property’s operational aspects. 

What is Real Estate Syndication?

This post originally appeared at Finance Quick Fix.