What Is a Commercial Real Estate Syndication? A commercial real estate syndication is a way for investors to pool their funds together in order to buy a larger and more stable asset than any of them could on their own.

What is a good rate of return on commercial real estate?

In addition, commercial real estate has traditionally had the highest returns of any form of investment. While most stocks that do pay dividends are lucky to hit 3% distributions annually, and CDs, Treasuries and bonds paying as little as 1%, it is not uncommon for commercial real estate to pay out 10%+.

What is syndication investment?

A very common practice in the investment world is syndication. Syndication allows multiple investors — whether they be individuals, angel groups, VC funds, etc. — to join together and provide the funding resources needed by one company. Syndication has been a common practice amongst VC firms for decades.

What does syndication mean for commercial real estate?

What Is Commercial Real Estate Syndication? A commercial real estate syndicate is a group of private investors who pool their money to finance a large real estate project. Syndication allows each investor to participate in a project that requires a down payment larger than any of the investors could individually afford.

How big are real estate syndications on Fundrise?

Below are some examples of various real estate syndication deals on the Fundrise platform. In 2019, over 120,000 investors participated in syndications. The average size of a real estate offering was $3 million. Passive investors came up with 80-95% of the initial capital investment Sponsors came up with 5-20% of the initial capital investment

Which is the best syndication platform for real estate?

Therefore, it is imperative that investors only invest with the best real estate syndication platforms. The best real estate syndication platforms are Fundrise and CrowdStreet. CrowdStreet focuses on individual commercial real estate deals in 18-hour cities.

How are sponsors involved in real estate syndication?

The Sponsor is usually responsible for investing anywhere from 5-20% of the total required equity capital. Then investors put in between 80-95% of the total. Most importantly, the more the Sponsor invests in the deal, the better for the Investor.